Increases from $35,000 to $50,000 the maximum amount of a microloan (to a start-up, newly-established, and growing small business) under the Microloan program. Increases from $3.5 million to $5 million the maximum total amount of loans to one intermediary participating in the Microloan program.
(Sec. 1114) Amends the American Recovery and Reinvestment Act of 2009 to extend through December 31, 2010: (1) the reduction or elimination of certain fees related to SBA loan guarantees; and (2) the Economic Stimulus Lending Program to guarantee up to 90% of qualifying small business loans made by eligible lenders.
(Sec. 1115) Amends the Small Business Investment Act of 1958 to apply single-business investment limits to SBA-recognized new markets venture capital companies of 10% of the sum of a company's regulatory capital plus the total amount of leverage projected in the participation agreement.
(Sec. 1116) Directs the SBA Administrator to establish for prospective borrowers an alternative small business size standard that uses maximum tangible net worth and average net income as an alternative to the use of industry standards.
(Sec. 1117) Directs the SBA Administrator, upon pool assembler request, if the amount of the guaranteed portion of any loan under the section 7(a) general small business loan program is more than $500,000, to divide the loan guarantee into increments of $500,000 and 1 increment of any remaining amount less than $500,000, in order to permit the maximum amount of any
loan in a pool to be not more than $500,000. Allows increments of loan guarantees to different borrowers that are so divided to be included in the same pool.
(Sec. 1118) Expresses the sense of Congress that the SBA Administrator should establish a website that: (1) lists SBA lenders and provides loan rate information, and (2) allows prospective borrowers to compare rates on SBA-guaranteed loans.
(Sec. 1119) Amends the American Recovery and Reinvestment Act of 2009 to terminate the authority of the Administrator regarding the Secondary Market Guarantee Authority two years after the date of the first sale of a pool of first lien position 504 loans guaranteed to a third-party investor.
Part II: Small Business Access to Capital - (Sec. 1122) Amends the Small Business Investment Act of 1958 regarding the local development business loan program to allow a small business borrower to refinance a previous business debt: (1) that was incurred at least two years before the loan application; (2) that is a commercial loan; (3) that is not guaranteed by a federal agency; (4) whose proceeds were used to acquire a fixed asset for the business's benefit; (5) that is collateralized by fixed assets; and (6) for which the borrower has been current on all payments for at least one year. Allows the Administrator to provide financing under such program for a project that does not involve small business expansion, if the borrower meets certain job creation or retention goals. Prescribes an alternate job retention goal for which a borrower may qualify.
Part III: Other Matters - (Sec. 1131) Establishes a three-year pilot program of direct loans to private, nonprofit entities (intermediaries), which shall in turn make loans of up to $200,000 each to startup, newly established, and growing small businesses for working capital, real estate, or the acquisition of materials, supplies, or equipment.
(Sec. 1133) Amends the Small Business Act to authorize the SBA Administrator to guarantee the timely payment of an open-end extension of credit to a small business concern, the proceeds of which may be used for the purchase of eligible retail goods for resale (floor plan pilot program extension).
(Sec. 1134) Amends the Riegle Community Development and Regulatory Improvement Act of 1994 to direct the Secretary of the Treasury to guarantee payments on bonds or notes issued by a qualified issuer, if their proceeds are used to make loans to eligible community development financial institutions for eligible community or economic development purposes or to refinance loans or notes issued for such purposes.
Requires each qualified issuer to establish a risk-share pool, capitalized by contributions from eligible community development financial institution participants of an amount equal to 3% of the guaranteed amount outstanding on the such notes and bonds. Authorizes appropriations through FY2014.
(Sec. 1135) Raises temporarily, for only one year, the maximum amount of an express loan from $350,000 to $1 million.
(Sec. 1136) Prohibits the use of Troubled Asset Relief Program (TARP) funds under the Emergency Economic Stabilization Act of 2008 or tax increases during 2010 to carry out specified sections of the loan programs under this Act.
Subtitle B: Small Business Trade and Exporting - Small Business Export Enhancement and International Trade Act of 2010 - (Sec. 1201) Amends the Small Business Act to: (1) require the SBA Office of International Trade to implement export promotion programs that increase the number of small businesses that export as well as the volume of their exports; and (2) establish an Associate Administrator for International Trade as the head of the Office.
(Sec. 1204) Requires the Associate Administrator in promoting export assistance programs through SBA district and regional offices, the small business development center network, Export Assistance Centers (one-stop shops for U.S. exporters), the network of women's business centers, chapters of the Service Corps of Retired Executives (SCORE), state and local export promotion programs, and partners in the private sector. Requires the Associate Administrator to establish annual goals.
Directs the Associate Administrator to appoint at least one trade financial specialist within the SBA to oversee international loan programs and assist SBA employees with trade finance issues.
Directs the SBA Administrator to: (1) establish an export and trade counseling certification program for employees of lead small business development centers and lead women's business centers; and (2) ensure that each lead small business development center has at least 10% of its employees (with a minimum of 5 employees) certified in providing export assistance.
Requires the Associate Administrator to develop performance measures to support small business export growth goals for Office activities.
(Sec. 1205) Directs the SBA Administrator, in coordination with the Secretary of Commerce, to ensure that the number of export finance specialists assigned to the Export Assistance Centers is at least the number that were assigned on January 1, 2003. Requires at least three specialists in each SBA region.
Directs the SBA Administrator to study for each state: (1) its volume of exports; (2) the availability of export finance specialists; (3) the number as well as percentage of exporters that are small business concerns; (4) changes, if any, in the number of exporters that are small business concerns at 10-year intervals; (5) the total value of the exports by small business concerns; and (6) the percentage of the total volume of exports attributable to small business concerns, and changes, if any, in those percentages at 10-year intervals. Requires recommendations to Congress on how to eliminate gaps between the supply of and demand for export finance specialists in the 15 states with the greatest volume of exports as well as in the 15 states with the lowest volume of exports.
(Sec. 1206) Increases from $1.75 million to $4.5 million the total amount of a small business loan outstanding and committed (by participation or otherwise) to the borrower from the business loan and investment fund. Increases from $1.25 million to $4 million the limit on the use of such a loan for working capital, supplies, or financings.
Caps SBA participation in an international trade loan at 90%.
Authorizes the SBA to make a guaranteed loan for working capital that will allow an eligible small business concern engaged in or adversely affected by international trade to improve its competitive position. Allows such a loan to be secured by a second lien position on the property or equipment financed by the loan or on other assets of the small business concern, if the lien gives adequate assurance of the payment of the loan. (Currently, a first lien position or first mortgage on the property, equipment, or other business assets is required.)
Names the foreign market development loan guarantee program the Export Working Capital Program, allowing a maximum loan guarantee of $5 million.
Makes eligible to participate in the Preferred Lenders Program any lender participating in the Delegated Authority Lender Program of the Export-Import Bank of the United States.
Establishes the Export Express Program to authorize the SBA Administrator to guarantee loans to small businesses for export development activities. Requires the guarantee of 90% of a loan of up to $350,000, and 75% of a higher loan up to $500,000.
Directs the SBA Administrator to publish an annual list of the banks and participating lending institutions that have made such loans guaranteed by the SBA during the preceding year.
(Sec. 1207) Directs the Associate Administrator to establish a three-year pilot State Trade and Export Promotion Grant Program to make grants to states to carry out export promotion programs for small businesses, including those owned and controlled by women and socially and economically disadvantaged individuals.
Authorizes appropriations for FY2011-2013.
(Sec. 1208) Requires the SBA Administrator to report to Congress on rural export promotion programs for small businesses.
(Sec. 1209) Requires a small business development center that counsels a small business concern on international trade issues to: (1) consult with state trade agencies and Export Assistance Centers to provide appropriate services to the small business concern; and (2) refer the small business concern to a state trade agency or an Export Assistance Center, as necessary, for further counseling or assistance.
Subtitle C: Small Business Contracting - Part I: Contract Bundling - (Sec. 1312) Amends the Small Business Act to require each federal agency to include in each solicitation for any multiple award contract above the agency's substantial bundling threshold a provision soliciting bids from any responsible source, including responsible small business concerns and teams or joint ventures of small business concerns.Directs the Federal Acquisition Regulatory Council to amend a specified Federal Acquisition Regulation to: (1) establish a Government-wide policy regarding contract bundling, including the solicitation of teaming and joint ventures; and (2) require that such policy be published on each federal agency website.
Requires the Administrator for Federal Procurement Policy to report triennially to certain congressional committees regarding procurement center representatives and commercial market representatives, including the identification of each area to which the SBA has assigned such a representative.
Directs the Comptroller General to report to Congress on the procurement center representative program.
Instructs the Administrator to implement a 3-year pilot electronic procurement center representative program.
(Sec. 1313) Directs the head of each federal agency to ensure that its decisions regarding consolidation of contract requirements are made with a view to providing small business concerns with appropriate opportunities to participate as prime contractors and subcontractors.
Prohibits a federal agency head from carrying out an acquisition strategy that includes a consolidation of contract requirements with a value of more than $2 million unless the senior procurement executive or Chief Acquisition Officer first conducts market research, identifying alternative contracting approaches involving a lesser degree of consolidation of contract requirements, and certifying that steps will be taken to include small business concerns in the acquisition strategy.
Authorizes a senior procurement executive or Chief Acquisition Officer to determine that an acquisition strategy involving a consolidation of contract requirements is necessary and justified if the benefits of the acquisition strategy substantially exceed the benefits of alternative contracting approaches.
(Sec. 1314) Directs the Administrator to establish a Small Business Teaming Pilot Program of grants to eligible organizations to assist and guide to teams or joint ventures of small business concerns seeking to compete for larger procurement contracts.
Authorizes appropriations for FY2010-FY2015.
Part II: Subcontracting Integrity - (Sec. 1321) Directs the Administrator to promulgate regulations relating to, and the Federal Acquisition Regulatory Council to amend the Federal Acquisition Regulation to establish a policy on, subcontracting compliance relating to small business concerns, including assignment of compliance responsibilities among contracting offices, small business offices, and program offices and periodic oversight and review.
Part III: Acquisition Process - (Sec. 1331) Amends the Small Business Act to direct the Administrator and the Administrator for Federal Procurement Policy to establish regulatory guidance under which federal agencies may, at their discretion, set aside part or parts of a multiple award contract, and reserve contract awards, for small business concerns, including the subcategories of small business concerns.
(Sec. 1332) Instructs the Director of the Office of Management and Budget (OMB) to issue guidelines regarding the analysis of purchase card expenditures to identify opportunities for achieving and accurately measuring fair participation of small business concerns in purchases in an amount not exceeding the micro-purchase threshold.
(Sec. 1334) Requires a prime contractor for a covered contract to notify in writing the relevant contracting officer if: (1) the prime contractor pays a reduced price to a subcontractor for goods and services, or (2) the payment to a subcontractor is more than 90 days past due for goods or services provided for the covered contract for which the federal agency has paid the prime contractor.
(Sec. 1335) Amends the Business Opportunity Development Reform Act of 1988 to repeal authority for the Small Business Competitiveness Demonstration Program.
Part IV: Small Business Size and Status Integrity - (Sec. 1341) States a presumption that, in every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is classified as intended for award to small business concerns, there shall be a loss to the United States based on the total amount expended on such instrument whenever a non-small business concern willfully sought and received the award by misrepresentation.
(Sec. 1342) Requires each certified small business concern to certify its size and small business status annually by means of a confirming entry on the SBA Online Representations and Certifications Application database.
(Sec. 1343) Requires the Federal Acquisition Institute to develop courses for acquisition personnel concerning proper classification of business concerns and small business size and status for purposes of federal contracts, subcontracts, grants, cooperative agreements, and cooperative research and development agreements.
(Sec. 1344) Requires the Administrator to conduct a rolling detailed review, every 18 months, of updated size standards for small business concerns, including at least 2 public forums located in different U.S. geographic regions.
(Sec. 1345) Directs Comptroller General to study the mentor-protege program for small business concerns participating in certain SBA programs, as well as other relationships and strategic alliances pairing a larger business and a small business concern partner to gain access to federal government contracts, to determine whether the programs and relationships are effectively supporting the goal of increasing the participation of small business concerns in federal contracting.
Subtitle D: Small Business Management and Counseling Assistance - (Sec. 1401) Authorizes the Administrator, upon request by an intermediary, to waive the requirement to obtain non-federal funds for a fiscal year, including successive fiscal years.
Prohibits the Administrator from waiving the requirement to obtain such funds if granting the waiver would undermine the credibility of the microloan program.
(Sec. 1402) Authorizes the Administrator to make grants to small business development centers to provide targeted technical assistance to small business concerns seeking access to capital or credit, federal procurement opportunities, energy efficiency audits to reduce energy bills, opportunities to export products or provide services to foreign customers, adopting, making innovations in, and using broadband technologies, or other assistance. Exempts grant recipients from the requirement to provide non-federal matching funds.
Authorizes appropriations.
Subtitle E: Disaster Loan Improvement - (Sec. 1501) Authorizes the Administrator to provide disaster assistance to aquaculture enterprises that are small businesses.
Subtitle F: Small Business Regulatory Relief - (Sec. 1601) Requires a federal agency final regulatory flexibility analysis accompanying a final rule to contain the agency's response to any comments filed by the SBA Chief Counsel for Advocacy in response to the proposed rule, and a detailed statement of any change made to the proposed rule in the final rule as a result of the comments.
(Sec. 1602) Amends federal law to require each budget submitted by the President to include a separate statement of the amount of appropriations requested for the SBA Office of Advocacy, which shall be designated in a separate account in the General Fund of the Treasury. Authorizes appropriations.
Subtitle G: Appropriations Provisions - (Sec. 1701) Makes FY2010 appropriations for: (1) SBA salaries and expenses, (2) the Business Loans Program Account, (3) the Community Development Financial Institutions Fund Program Account, and (4) Small Business Loan Guarantee Enhancement Extension.
Title II: Tax Provisions - Creating Small Business Jobs Act of 2010 - Subtitle A: Small Business Relief - Part I: Providing Access to Capital - (Sec. 2011) - Amends the Internal Revenue Code to increase from 50% to 100% the exclusion from gross income of the gain from the sale or exchange of qualified small business stock acquired after March 15, 2010, and before January 1, 2012.
(Sec. 2012) Permits a 5-year carryback for eligible small business credits.
(Sec. 2013) Sets forth special rules for eligible small business credits in 2010, including treating the tentative alternative minimum tax (AMT) as being zero.
Prohibits treatment of business credits determined with respect to a partnership or S corporation as eligible small business credits by partners or shareholders unless they meet a certain gross receipts test.
(Sec. 2014) Prescribes special rules for a temporary elimination of tax on the net recognized built-in gain of an S corporation for 2009, 2010, and 2011.
Part II: Encouraging Investment - (Sec. 2021) Specifies increased expensing limitations for 2010 and 2011. Treats specified real property, upon taxpayer election, as section 179 property, including any qualified real property (such as leasehold or retail improvement property or restaurant property) of a character subject to a depreciation allowance which is purchased for use in the active conduct of a trade or business.
(Sec. 2022) Grants an additional first-year depreciation for 50% of the basis of certain qualified property placed in service before January 1, 2012.
(Sec. 2023) Sets forth a special rule for the allocation to an long-term contract of bonus depreciation for certain property with a recovery period of 7 years or less which is placed in service between December 31, 2009, and January 1, 2011 (January 1, 2012, in the case of specified other property).
Part III: Promoting Entrepreneurship - (Sec. 2031) Increases from $5,000 to $10,000 (reduced by the excess over $60,000 in such expenditures) the allowed deduction for start-up expenditures in taxable year 2010.
(Sec. 2032) Authorizes appropriations to the Office of the United States Trade Representative (USTR) for: (1) analyzing and developing opportunities for U.S. to access the markets of foreign countries; and (2) enforcing trade agreements to which the United States is a party.
Directs the USTR to: (1) give preference to initiatives that will create or sustain the greatest number of jobs in the United States or result in the greatest benefit to the U.S. economy; and (2) consider the needs of small- and medium-sized businesses in the United States with respect to accessing the markets of foreign countries and the enforcement of trade agreements to which the United States is a party.
Part IV: Promoting Small Business Fairness - (Sec. 2041) Limits the penalty for failure to disclose a reportable transaction on a tax return or statement to 75% of the decrease in tax resulting from such transaction. Sets a minimum penalty of $10,000 ($5,000 in the case of a natural person).
(Sec. 2042) Revises special rules for the health insurance costs of self-employed individuals to allow a deduction from self-employment income (ordinarily disallowed) for such costs in computing 2010 self-employment taxes.
(Sec. 2043) Removes cellular telephones and similar telecommunications equipment from the definition of listed property with respect to the limitation (to computation under the alternative depreciation system) on the deduction from business income for listed property whose business use does not exceed 50%.
Subtitle B: Revenue Provisions - Part I: Reducing the Tax Gap - (Sec. 2101) States that, for purposes of mandatory information returns, a person receiving rental income from real estate, with specified exceptions, shall be considered to be engaged in a trade or business of renting property.
(Sec. 2102) Increases the penalties for failure to: (1) file correct information returns, and (2) furnish correct payee statements. Requires inflation adjustments to such penalties.
(Sec. 2103) Requires the Commissioner of Internal Revenue to report annually to the House Committee on Ways and Means and the Senate Committee on Finance on penalties assessed for certain abusive tax shelters and reportable transactions.
(Sec. 2104) States that requirements governing notice and opportunity for a hearing before imposition of a tax levy do not apply if the Secretary of the Treasury has served a federal contractor levy.
Part II: Promoting Retirement Preparation - (Sec. 2111) Permits participants in government Section 457 plans (deferred compensation plans of state and local governments and tax-exempt organizations) to treat elective deferrals as Roth IRA contributions (subject to immediate taxation).
(Sec. 2112) Includes within taxable gross income certain rollovers from elective deferral plans to designated Roth IRA accounts.
(Sec. 2113) Includes within gross income any amount received as an annuity under an annuity, endowment, or life insurance contract. Prescribes the treatment for partial annuitization.
Part III: Closing Unintended Loopholes - (Sec. 2121) Excludes any fuel with an acid number greater than 25 (crude tall oil) from the meaning of cellulosic biofuel eligible for the (cellulosic biofuel producer) tax credit for alcohol used as fuel.
(Sec. 2122) Treats as income sourced within the United States any amounts received from a noncorporate resident or domestic or foreign corporation for the provision of a guarantee of indebtedness, if such amount is connected with income effectively connected (or so treated) with the conduct of a trade or business in the United States.
Treats as income sourced outside the United States any amounts received, directly or indirectly, from a foreign person for the provision of a guarantee of indebtedness other than amounts derived from sources within the United States.
Part IV: Time for Payment of Corporate Estimated Taxes - (Sec. 2131) Increases by 36% to 157.5% the estimated tax installment for the third quarter of 2015 for corporations with assets of not less than $1 billion.
Title III: State Small Business Credit Initiative - State Small Business Credit Initiative Act of 2010 - (Sec. 3003) Establishes a seven-year State Small Business Credit Initiative, under which the Secretary of the Treasury shall allocate federal funds for FY2009-FY2010 to participating states with capital access programs.
(Sec. 3005) 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 make federal contributions any state capital access program meeting specified minimum requirements.
Requires an applicant state to report to the Secretary how it plans to use the federal contributions to the reserve fund to provide access to capital for small businesses in low- and moderate-income, minority, and other underserved communities, including women- and minority-owned small businesses.
(Sec. 3006) 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 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.
(Sec. 3007) Requires participating states to file quarterly use-of-federal-funds reports.
(Sec. 3008) Authorizes reduction or termination of federal allocations to a participating state: (1) upon its termination of participation in the program, (2) for failure to submit timely and complete reports, or (3) for noncompliance with the terms of the allocation agreement.
(Sec. 3009) 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.
Makes appropriations. Terminates the program at the end of seven years.
Title IV: Additional Small Business Provisions - Subtitle A: Small Business Lending Fund - (Sec. 4103) Establishes in the Treasury the Small Business Lending Fund to cover purchases of preferred stock and other financial instruments from eligible insured depository institutions, bank holding companies, savings and loan holding companies, and community development financial institution loan funds with total assets of $10 billion or less.
Authorizes the Secretary of the Treasury to establish the Small Business Lending Fund Program.
Limits the aggregate amount of purchases to $30 billion.
Requires all funds received by the Secretary in connection with such purchases to be paid into the general fund of the Treasury for reduction of the public debt.
Prohibits more than 1% of the value of purchases made by the Secretary in implementing the Program from being used to make purchases from community development loan funds (CDLFs).
Instructs the Secretary to develop specified eligibility criteria to determine the financial ability of a CDLF to participate in the Program and repay the investment.
Requires CDLFs participating in the Program to submit audited financial statements to the Secretary, have a clean audit opinion, and have at least three years of operating experience.
Allows eligible institutions with assets of $1 billion or less to apply for a capital investment from the Fund not exceeding 5% percent of risk-weighted assets. Allows eligible institutions with assets of between $1 billion and $10 billion to apply for a capital investment from the Fund of up to 3% percent of risk-weighted assets. Prescribes requirements for the treatment of assets of holding companies and institutions controlled by holding companies.
Requires an applicant institution (including a state-chartered bank) to submit: (1) a small business lending plan describing how its business strategy and operating goals address the needs of small businesses in the areas it serves, and (2) a plan to provide linguistically and culturally appropriate outreach.
Permits CDLFs to apply for a capital investment from the Fund in an amount not exceeding 5% of total assets.
Declares ineligible for a capital investment from the Fund any institution that is either on the Federal Deposit Insurance Corporation (FDIC) problem bank list or has been removed from such list for less than 90 days.
Prescribes requirements governing financial instruments issued to the Treasury by an eligible institution receiving a capital investment (including S Corporations). Sets forth financial incentives for small business lending by such institutions.
Sets a 10-year deadline for repayment of a capital investment under the Program.
Sets forth requirements governing financial instruments issued by a Community Development Financial Institution loan fund (CDFILF) receiving a capital investment under the Program. Makes incentives contingent upon an increase in the number of loans made.
Requires the Secretary to issue regulations and other guidance to permit eligible institutions to refinance securities issued to the Treasury under the Community Development Capital Initiative (CDCI) of the Troubled Asset Relief Program (TARP) established by the Emergency Economic Stabilization Act of 2008 (EESA) and the TARP Capital Purchase Program (CPP) for securities to be issued under the Program; but prohibits participation by certain nonpaying CPP participants.
Directs the Secretary to require capital investment recipients to provide linguistically and culturally appropriate outreach and advertising in the applicant pool using media outlets which target organizations, trade associations, and individuals that represent or work within or are members of minority communities, women, and veterans.
Requires the appropriate federal banking agency for an eligible institution that receives funds under the Program to issue guidance regarding mandatory prudent underwriting standards for loans it makes.
(Sec. 4105) Instructs the Secretary, when exercising authorities granted under this title, to take into consideration, among other things, increasing the opportunity for small business development in areas with high unemployment rates that exceed the national average.
(Sec. 4107) Establishes the Office of Small Business Lending Fund (SBLF) Program Oversight within the Office of the IG. Instructs the IG to: (1) appoint a Special Deputy Inspector General for SBLF Program Oversight to lead the Office, and (2) audit and investigate purchases of financial instruments under the Program through the Office.
(Sec. 4108) Makes appropriations to pay the costs of $30 billion of capital investments in eligible institutions and of capital investments program administration.
(Sec. 4109) Terminates the authority to make capital investments in eligible institutions one year after enactment of this Act.
(Sec 4111) Establishes the Small Business Lending Fund Program as separate and distinct from TARP. States that an institution shall not be considered a TARP recipient by virtue of a capital investment under this Act.
(Sec. 4112) Directs the Secretary to: (1) study the impact of the Program on women-owned businesses, veteran-owned businesses, and minority-owned businesses; and (2) disaggregate study results by ethnic group and gender.
(Sec. 4113) Expresses the sense of Congress that the FDIC and other bank regulators are sending mixed messages to banks regarding regulatory capital requirements and lending standards, which is a contributing cause of decreased small business lending and increased regulatory uncertainty at community banks.
Subtitle B: Other Provisions - Part I: Small Business Export Promotion Initiatives - Export Promotion Act of 2010 - (Sec. 4222) Directs the Secretary of Commerce (Secretary in this Part) to increase the number of full-time departmental employees whose primary responsibilities involve promoting or facilitating participation by U.S. businesses in the global marketplace and facilitating the entry into, or expansion of, such participation. Requires the Secretary to ensure that global marketplace promotional activities include promoting and facilitating participation by small and medium-sized manufacturing businesses. Authorizes appropriations for FY2011-FY2012.
Instructs the Secretary, in obligating and expending such funds, as well as funds for other programs under this Act, to give preference to activities that: (1) assist small- and medium-sized businesses in the United States; and (2) will create or sustain the greatest number of jobs in the United States and obtain the maximum return on investment. Authorizes appropriations.
(Sec. 4223) Authorizes appropriations to the Department of Commerce for FY2011-FY2012 to improve access to the global marketplace for goods and services provided by rural businesses.
(Sec. 4224) Authorizes appropriations to expand ExporTech, a joint program of the Hollings Manufacturing Extension Partnership Program and the Export Assistance Centers of the Department of Commerce.
(Sec. 4225) Authorizes appropriations for the Manufacturing and Services unit of the International Trade Administration (ITA) of the Department of Commerce to establish public-private partnerships under the Market Development Cooperator Program.
(Sec. 4226) Amends the National Institute of Standards and Technology Act to authorize the Director of the National Institute of Standards and Technology (NIST), in making awards for the creation and support of regional centers for the transfer of manufacturing technology, to: (1) consider whether an applicant has significant potential for enhancing the competitiveness of small- and medium-sized U.S. manufacturers in the global marketplace, and (2) give a preference to applicants for such projects. Authorizes the Director, in making awards under the technology innovation program, to take the same question into consideration.
(Sec. 4227) Expresses the sense of the Senate that the Secretary of Commerce should enhance federal collaboration with the states on export promotion issues by taking specified steps.
(Sec. 4228) Directs such Secretary to report to Congress on the tariff and nontariff barriers imposed by Colombia, the Republic of Korea, and Panama with respect to exports of U.S. firms, including small- and medium-sized manufacturing firms.
Part II: Medicare Fraud - (Sec. 4241) Directs the Secretary of Health and Human Services (HHS) (Secretary in this Part) to: (1) use predictive modeling and other analytics technologies (predictive analytics technologies) to identify improper claims for reimbursement, and (2) prevent the payment of such claims under the Medicare fee-for-service program.
Prescribes requirements for predictive analytics technologies requirements and their implementation over four years.
Sets forth requirements for contractor selection, qualifications, and data access requirements.
Makes appropriations for this program.
Title V: Budgetary Provisions - Declares that the budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by reference to the latest statement titled "Budgetary Effects of PAYGO Legislation."
[111th Congress Public Law 240]
[From the U.S. Government Publishing Office]
[[Page 2503]]
SMALL BUSINESS JOBS ACT OF 2010
[[Page 124 STAT. 2504]]
Public Law 111-240
111th Congress
An Act
To create the Small Business Lending Fund Program to direct the
Secretary of the Treasury to make capital investments in eligible
institutions in order to increase the availability of credit for small
businesses, to amend the Internal Revenue Code of 1986 to provide tax
incentives for small business job creation, and for other
purposes. <<NOTE: Sept. 27, 2010 - [H.R. 5297]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Small Business
Jobs Act of 2010.>>
SECTION 1. <<NOTE: 15 USC 631 note.>> SHORT TITLE.
This Act may be cited as the ``Small Business Jobs Act of 2010''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--SMALL BUSINESSES
Sec. 1001. Definitions.
Subtitle A--Small Business Access to Credit
Sec. 1101. Short title.
PART I--Next Steps for Main Street Credit Availability
Sec. 1111. Section 7(a) business loans.
Sec. 1112. Maximum loan amounts under 504 program.
Sec. 1113. Maximum loan limits under microloan program.
Sec. 1114. Loan guarantee enhancement extensions.
Sec. 1115. New Markets Venture Capital company investment limitations.
Sec. 1116. Alternative size standards.
Sec. 1117. Sale of 7(a) loans in secondary market.
Sec. 1118. Online lending platform.
Sec. 1119. SBA Secondary Market Guarantee Authority.
PART II--Small Business Access to Capital
Sec. 1122. Low-interest refinancing under the local development business
loan program.
PART III--Other Matters
Sec. 1131. Small business intermediary lending pilot program.
Sec. 1132. Public policy goals.
Sec. 1133. Floor plan pilot program extension.
Sec. 1134. Guarantees for bonds and notes issued for community or
economic development purposes.
Sec. 1135. Temporary express loan enhancement.
Sec. 1136. Prohibition on using TARP funds or tax increases.
Subtitle B--Small Business Trade and Exporting
Sec. 1201. Short title.
Sec. 1202. Definitions.
[[Page 124 STAT. 2505]]
Sec. 1203. Office of International Trade.
Sec. 1204. Duties of the Office of International Trade.
Sec. 1205. Export assistance centers.
Sec. 1206. International trade finance programs.
Sec. 1207. State Trade and Export Promotion Grant Program.
Sec. 1208. Rural export promotion.
Sec. 1209. International trade cooperation by small business development
centers.
Subtitle C--Small Business Contracting
PART I--Contract Bundling
Sec. 1311. Small Business Act.
Sec. 1312. Leadership and oversight.
Sec. 1313. Consolidation of contract requirements.
Sec. 1314. Small business teams pilot program.
PART II--Subcontracting Integrity
Sec. 1321. Subcontracting misrepresentations.
Sec. 1322. Small business subcontracting improvements.
PART III--Acquisition Process
Sec. 1331. Reservation of prime contract awards for small businesses.
Sec. 1332. Micro-purchase guidelines.
Sec. 1333. Agency accountability.
Sec. 1334. Payment of subcontractors.
Sec. 1335. Repeal of Small Business Competitiveness Demonstration
Program.
PART IV--Small Business Size and Status Integrity
Sec. 1341. Policy and presumptions.
Sec. 1342. Annual certification.
Sec. 1343. Training for contracting and enforcement personnel.
Sec. 1344. Updated size standards.
Sec. 1345. Study and report on the mentor-protege program.
Sec. 1346. Contracting goals reports.
Sec. 1347. Small business contracting parity.
Subtitle D--Small Business Management and Counseling Assistance
Sec. 1401. Matching requirements under small business programs.
Sec. 1402. Grants for SBDCs.
Subtitle E--Disaster Loan Improvement
Sec. 1501. Aquaculture business disaster assistance.
Subtitle F--Small Business Regulatory Relief
Sec. 1601. Requirements providing for more detailed analyses.
Sec. 1602. Office of advocacy.
Subtitle G--Appropriations Provisions
Sec. 1701. Salaries and expenses.
Sec. 1702. Business loans program account.
Sec. 1703. Community Development Financial Institutions Fund program
account.
Sec. 1704. Small business loan guarantee enhancement extensions.
TITLE II--TAX PROVISIONS
Sec. 2001. Short title.
Subtitle A--Small Business Relief
PART I--Providing Access to Capital
Sec. 2011. Temporary exclusion of 100 percent of gain on certain small
business stock.
Sec. 2012. General business credits of eligible small businesses for
2010 carried back 5 years.
Sec. 2013. General business credits of eligible small businesses in 2010
not subject to alternative minimum tax.
Sec. 2014. Temporary reduction in recognition period for built-in gains
tax.
PART II--Encouraging Investment
Sec. 2021. Increased expensing limitations for 2010 and 2011; certain
real property treated as section 179 property.
[[Page 124 STAT. 2506]]
Sec. 2022. Additional first-year depreciation for 50 percent of the
basis of certain qualified property.
Sec. 2023. Special rule for long-term contract accounting.
PART III--Promoting Entrepreneurship
Sec. 2031. Increase in amount allowed as deduction for start-up
expenditures in 2010.
Sec. 2032. Authorization of appropriations for the United States Trade
Representative to develop market access opportunities for
United States small- and medium-sized businesses and to
enforce trade agreements.
PART IV--Promoting Small Business Fairness
Sec. 2041. Limitation on penalty for failure to disclose reportable
transactions based on resulting tax benefits.
Sec. 2042. Deduction for health insurance costs in computing self-
employment taxes in 2010.
Sec. 2043. Removal of cellular telephones and similar telecommunications
equipment from listed property.
Subtitle B--Revenue Provisions
PART I--Reducing the Tax Gap
Sec. 2101. Information reporting for rental property expense payments.
Sec. 2102. Increase in information return penalties.
Sec. 2103. Report on tax shelter penalties and certain other enforcement
actions.
Sec. 2104. Application of continuous levy to tax liabilities of certain
Federal contractors.
PART II--Promoting Retirement Preparation
Sec. 2111. Participants in government section 457 plans allowed to treat
elective deferrals as Roth contributions.
Sec. 2112. Rollovers from elective deferral plans to designated Roth
accounts.
Sec. 2113. Special rules for annuities received from only a portion of a
contract.
PART III--Closing Unintended Loopholes
Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer
credit.
Sec. 2122. Source rules for income on guarantees.
PART IV--Time for Payment of Corporate Estimated Taxes
Sec. 2131. Time for payment of corporate estimated taxes.
TITLE III--STATE SMALL BUSINESS CREDIT INITIATIVE
Sec. 3001. Short title.
Sec. 3002. Definitions.
Sec. 3003. Federal funds allocated to States.
Sec. 3004. Approving States for participation.
Sec. 3005. Approving State capital access programs.
Sec. 3006. Approving collateral support and other innovative credit
access and guarantee initiatives for small businesses and
manufacturers.
Sec. 3007. Reports.
Sec. 3008. Remedies for State program termination or failures.
Sec. 3009. Implementation and administration.
Sec. 3010. Regulations.
Sec. 3011. Oversight and audits.
TITLE IV--ADDITIONAL SMALL BUSINESS PROVISIONS
Subtitle A--Small Business Lending Fund
Sec. 4101. Purpose.
Sec. 4102. Definitions.
Sec. 4103. Small business lending fund.
Sec. 4104. Additional authorities of the Secretary.
Sec. 4105. Considerations.
Sec. 4106. Reports.
Sec. 4107. Oversight and audits.
Sec. 4108. Credit reform; funding.
Sec. 4109. Termination and continuation of authorities.
Sec. 4110. Preservation of authority.
Sec. 4111. Assurances.
Sec. 4112. Study and report with respect to women-owned, veteran-owned,
and minority-owned businesses.
[[Page 124 STAT. 2507]]
Sec. 4113. Sense of Congress.
Subtitle B--Other Provisions
PART I--Small Business Export Promotion Initiatives
Sec. 4221. Short title.
Sec. 4222. Global business development and promotion activities of the
Department of Commerce.
Sec. 4223. Additional funding to improve access to global markets for
rural businesses.
Sec. 4224. Additional funding for the ExporTech program.
Sec. 4225. Additional funding for the market development cooperator
program of the Department of Commerce.
Sec. 4226. Hollings Manufacturing Partnership Program; Technology
Innovation Program.
Sec. 4227. Sense of the Senate concerning Federal collaboration with
States on export promotion issues.
Sec. 4228. Report on tariff and nontariff barriers.
PART II--Medicare Fraud
Sec. 4241. Use of predictive modeling and other analytics technologies
to identify and prevent waste, fraud, and abuse in the
Medicare fee-for-service program.
TITLE V--BUDGETARY PROVISIONS
Sec. 5001. Determination of budgetary effects.
TITLE I--SMALL BUSINESSES
SEC. 1001. <<NOTE: 15 USC 632 note.>> DEFINITIONS.
In this title--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator thereof,
respectively; and
(2) the term ``small business concern'' has the meaning
given that term under section 3 of the Small Business Act (15
U.S.C. 632).
Subtitle A <<NOTE: Small Business Job Creation and Access to Capital Act
of 2010.>> --Small Business Access to Credit
SEC. 1101. <<NOTE: 15 USC 631 note.>> SHORT TITLE.
This subtitle may be cited as the ``Small Business Job Creation and
Access to Capital Act of 2010''.
PART I--NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY
SEC. 1111. SECTION 7(a) BUSINESS LOANS.
(a) Amendment.--Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended--
(1) in paragraph (2)(A)--
(A) in clause (i), by striking ``75 percent'' and
inserting ``90 percent''; and
(B) in clause (ii), by striking ``85 percent'' and
inserting ``90 percent''; and
(2) in paragraph (3)(A), by striking ``$1,500,000 (or if the
gross loan amount would exceed $2,000,000'' and inserting
``$4,500,000 (or if the gross loan amount would exceed
$5,000,000''.
[[Page 124 STAT. 2508]]
(b) <<NOTE: Effective date. 15 USC 636 note.>> Prospective
Repeal.--Effective January 1, 2011, section 7(a) of the Small Business
Act (15 U.S.C. 636(a)) is amended--
(1) in paragraph (2)(A)--
(A) in clause (i), by striking ``90 percent'' and
inserting ``75 percent''; and
(B) in clause (ii), by striking ``90 percent'' and
inserting ``85 percent''; and
(2) in paragraph (3)(A), by striking ``$4,500,000'' and
inserting ``$3,750,000''.
SEC. 1112. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM.
Section 502(2)(A) of the Small Business Investment Act of 1958 (15
U.S.C. 696(2)(A)) is amended--
(1) in clause (i), by striking ``$1,500,000'' and inserting
``$5,000,000'';
(2) in clause (ii), by striking ``$2,000,000'' and inserting
``$5,000,000'';
(3) in clause (iii), by striking ``$4,000,000'' and
inserting ``$5,500,000'';
(4) in clause (iv), by striking ``$4,000,000'' and inserting
``$5,500,000''; and
(5) in clause (v), by striking ``$4,000,000'' and inserting
``$5,500,000''.
SEC. 1113. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is
amended--
(1) in paragraph (1)(B)(iii), by striking ``$35,000'' and
inserting ``$50,000'';
(2) in paragraph (3)--
(A) in subparagraph (C), by striking ``$3,500,000''
and inserting ``$5,000,000''; and
(B) in subparagraph (E), by striking ``$35,000''
each place that term appears and inserting ``$50,000'';
and
(3) in paragraph (11)(B), by striking ``$35,000'' and
inserting ``$50,000''.
SEC. 1114. LOAN GUARANTEE ENHANCEMENT EXTENSIONS.
(a) Fees.--Section 501 of the American Recovery and Reinvestment Act
of 2009 (Public Law 111-5; 123 Stat. 151) is amended by striking
``September 30, 2010'' each place that term appears and inserting
``December 31, 2010''.
(b) Loan Guarantees.--Section 502(f) of division A of the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 153)
is amended by striking ``May 31, 2010'' and inserting ``December 31,
2010''.
SEC. 1115. NEW MARKETS VENTURE CAPITAL COMPANY INVESTMENT
LIMITATIONS.
Section 355 of the Small Business Investment Act of 1958 (15 U.S.C.
689d) is amended by adding at the end the following:
``(e) Investment Limitations.--
``(1) Definition.--In this subsection, the term `covered New
Markets Venture Capital company' means a New Markets Venture
Capital company--
``(A) granted final approval by the Administrator
under section 354(e) on or after March 1, 2002; and
[[Page 124 STAT. 2509]]
``(B) that has obtained a financing from the
Administrator.
``(2) Limitation.--Except to the extent approved by the
Administrator, a covered New Markets Venture Capital company may
not acquire or issue commitments for securities under this title
for any single enterprise in an aggregate amount equal to more
than 10 percent of the sum of--
``(A) the regulatory capital of the covered New
Markets Venture Capital company; and
``(B) the total amount of leverage projected in the
participation agreement of the covered New Markets
Venture Capital.''.
SEC. 1116. ALTERNATIVE SIZE STANDARDS.
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is amended
by adding at the end the following:
``(5) Alternative Size Standard.--
``(A) In general.--The Administrator shall establish an
alternative size standard for applicants for business loans
under section 7(a) and applicants for development company loans
under title V of the Small Business Investment Act of 1958 (15
U.S.C. 695 et seq.), that uses maximum tangible net worth and
average net income as an alternative to the use of industry
standards.
``(B) Interim rule.--Until the date on which the alternative
size standard established under subparagraph (A) is in effect,
an applicant for a business loan under section 7(a) or an
applicant for a development company loan under title V of the
Small Business Investment Act of 1958 may be eligible for such a
loan if--
``(i) the maximum tangible net worth of the
applicant is not more than $15,000,000; and
``(ii) the average net income after Federal income
taxes (excluding any carry-over losses) of the applicant
for the 2 full fiscal years before the date of the
application is not more than $5,000,000.''.
SEC. 1117. SALE OF 7(a) LOANS IN SECONDARY MARKET.
Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) is amended
by adding at the end the following:
``(6) If the amount of the guaranteed portion of any loan under
section 7(a) is more than $500,000, the Administrator shall, upon
request of a pool assembler, divide the loan guarantee into increments
of $500,000 and 1 increment of any remaining amount less than $500,000,
in order to permit the maximum amount of any loan in a pool to be not
more than $500,000. Only 1 increment of any loan guarantee divided under
this paragraph may be included in the same pool. Increments of loan
guarantees to different borrowers that are divided under this paragraph
may be included in the same pool.''.
SEC. 1118. ONLINE LENDING PLATFORM.
It is the sense of Congress that the Administrator of the Small
Business Administration should establish a website that--
(1) lists each lender that makes loans guaranteed by the
Small Business Administration and provides information about the
loan rates of each such lender; and
[[Page 124 STAT. 2510]]
(2) allows prospective borrowers to compare rates on loans
guaranteed by the Small Business Administration.
SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY.
Section 503(f) of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 155) is amended by
striking ``on the date 2 years after the date of enactment of this
section'' and inserting ``2 years after the date of the first sale of a
pool of first lien position 504 loans guaranteed under this section to a
third-party investor''.
PART II--SMALL BUSINESS ACCESS TO CAPITAL
SEC. 1122. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT
BUSINESS LOAN PROGRAM.
(a) Refinancing.--Section 502(7) of the Small Business Investment
Act of 1958 (15 U.S.C. 696(7)) is amended by adding at the end the
following:
``(C) Refinancing not involving expansions.--
``(i) Definitions.--In this subparagraph--
``(I) the term `borrower' means a
small business concern that submits an
application to a development company for
financing under this subparagraph;
``(II) the term `eligible fixed
asset' means tangible property relating
to which the Administrator may provide
financing under this section; and
``(III) the term `qualified debt'
means indebtedness--
``(aa) that--
``(AA) was incurred not
less than 2 years before the
date of the application for
assistance under this
subparagraph;
``(BB) is a commercial
loan;
``(CC) is not subject to
a guarantee by a Federal
agency;
``(DD) the proceeds of
which were used to acquire
an eligible fixed asset;
``(EE) was incurred for
the benefit of the small
business concern; and
``(FF) is collateralized
by eligible fixed assets;
and
``(bb) for which the
borrower has been current on all
payments for not less than 1
year before the date of the
application.
``(ii) Authority.--A project that does not
involve the expansion of a small business concern
may include the refinancing of qualified debt if--
``(I) the amount of the financing is
not more than 90 percent of the value of
the collateral for the financing, except
that, if the appraised value of the
eligible fixed assets serving as
collateral for the financing is less
than the amount equal to 125 percent of
the amount of the financing, the
borrower may provide additional cash or
other collateral to eliminate any
deficiency;
[[Page 124 STAT. 2511]]
``(II) the borrower has been in
operation for all of the 2-year period
ending on the date of the loan; and
``(III) for a financing for which
the Administrator determines there will
be an additional cost attributable to
the refinancing of the qualified debt,
the borrower agrees to pay a fee in an
amount equal to the anticipated
additional cost.
``(iii) Financing for business expenses.--
``(I) Financing for business
expenses.--The Administrator may provide
financing to a borrower that receives
financing that includes a refinancing of
qualified debt under clause (ii), in
addition to the refinancing under clause
(ii), to be used solely for the payment
of business expenses.
``(II) Application for financing.--
An application for financing under
subclause (I) shall include--
``(aa) a specific
description of the expenses for
which the additional financing
is requested; and
``(bb) an itemization of the
amount of each expense.
``(III) Condition on additional
financing.--A borrower may not use any
part of the financing under this clause
for non-business purposes.
``(iv) Loans based on jobs.--
``(I) Job creation and retention
goals.--
``(aa) In general.--The
Administrator may provide
financing under this
subparagraph for a borrower that
meets the job creation goals
under subsection (d) or (e) of
section 501.
``(bb) Alternate job
retention goal.--The
Administrator may provide
financing under this
subparagraph to a borrower that
does not meet the goals
described in item (aa) in an
amount that is not more than the
product obtained by multiplying
the number of employees of the
borrower by $65,000.
``(II) Number of employees.--For
purposes of subclause (I), the number of
employees of a borrower is equal to the
sum of--
``(aa) the number of full-
time employees of the borrower
on the date on which the
borrower applies for a loan
under this subparagraph; and
``(bb) the product obtained
by multiplying--
``(AA) the number of
part-time employees of the
borrower on the date on
which the borrower applies
for a loan under this
subparagraph; by
``(BB) the quotient
obtained by dividing the
average number of hours each
part time employee of the
borrower works each week by
40.
[[Page 124 STAT. 2512]]
``(v) Nondelegation.--Notwithstanding section
508(e), the Administrator may not permit a premier
certified lender to approve or disapprove an
application for assistance under this
subparagraph.
``(vi) Total amount of loans.--The
Administrator may provide not more than a total of
$7,500,000,000 of financing under this
subparagraph for each fiscal year.''.
(b) <<NOTE: Effective date. 15 USC 696 note.>> Prospective
Repeal.--Effective 2 years after the date of enactment of this Act,
section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C.
696(7)) is amended by striking subparagraph (C).
(c) Technical Correction.--Section 502(2)(A)(i) of the Small
Business Investment Act of 1958 (15 U.S.C. 696(2)(A)(i)) is amended by
striking ``subparagraph (B) or (C)'' and inserting ``clause (ii), (iii),
(iv), or (v)''.
PART III--OTHER MATTERS
SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.
(a) In General.--Section 7 of the Small Business Act (15 U.S.C. 636)
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
[[Page 124 STAT. 2513]]
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 $1,000,000 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 2011, 2012, and 2013, 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
$20,000,000.
``(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.
[[Page 124 STAT. 2514]]
``(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 Job Creation and Access
to Capital Act of 2010.''.
(b) <<NOTE: Deadline. 15 USC 636 note.>> 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) <<NOTE: 15 USC 636 note.>> 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.
SEC. 1132. PUBLIC POLICY GOALS.
Section 501(d)(3) of the Small Business Investment Act of 1958 (15
U.S.C. 695(d)(3)) is amended--
(1) in subparagraph (J), by striking ``or'' at the end;
(2) in subparagraph (K), by striking the period at the end
and inserting ``, or''; and
(3) by adding at the end the following:
``(L) reduction of rates of unemployment in labor
surplus areas, as such areas are determined by the
Secretary of Labor.''.
SEC. 1133. FLOOR PLAN PILOT PROGRAM EXTENSION.
(a) In General.--Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended--
(1) by redesignating paragraph (32), relating to increased
veteran participation, as added by section 208 of the Military
Reservist and Veteran Small Business Reauthorization and
Opportunity Act of 2008 (Public Law 110-186; 122 Stat. 631), as
paragraph (33); and
(2) by adding at the end the following:
``(34) Floor plan financing program.--
``(A) Definition.--In this paragraph, the term
`eligible retail good'--
``(i) means a good for which a title may be
obtained under State law; and
``(ii) includes an automobile, recreational
vehicle, boat, and manufactured home.
``(B) Program.--The Administrator may guarantee the
timely payment of an open-end extension of credit to a
small business concern, the proceeds of which may be
used for the purchase of eligible retail goods for
resale.
[[Page 124 STAT. 2515]]
``(C) Amount.--An open-end extension of credit
guaranteed under this paragraph shall be in an amount
not less than $500,000 and not more than $5,000,000.
``(D) Term.--An open-end extension of credit
guaranteed under this paragraph shall have a term of not
more than 5 years.
``(E) Guarantee percentage.--The Administrator may
guarantee--
``(i) not less than 60 percent of an open-end
extension of credit under this paragraph; and
``(ii) not more than 75 percent of an open-end
extension of credit under this paragraph.
``(F) Advance rate.--The lender for an open-end
extension of credit guaranteed under this paragraph may
allow the borrower to draw funds on the line of credit
in an amount equal to not more than 100 percent of the
value of the eligible retail goods to be purchased.''.
(b) <<NOTE: Effective date. 15 USC 636 note.>> Sunset.--Effective
September 30, 2013, section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended--
(1) by striking paragraph (34); and
(2) by redesignating paragraph (35), as added by section
1206 of this Act, as paragraph (34).
SEC. 1134. GUARANTEES FOR BONDS AND NOTES ISSUED FOR COMMUNITY OR
ECONOMIC DEVELOPMENT PURPOSES.
The Riegle Community Development and Regulatory Improvement Act of
1994 (12 U.S.C. 4701 et seq.) is amended by inserting after section 114
(12 U.S.C. 4713) the following:
``SEC. 114A. <<NOTE: 12 USC 4713a.>> GUARANTEES FOR BONDS AND
NOTES ISSUED FOR COMMUNITY OR ECONOMIC
DEVELOPMENT PURPOSES.
``(a) Definitions.--In this section, the following definitions shall
apply:
``(1) Eligible community development financial
institution.--The term `eligible community development financial
institution' means a community development financial institution
(as described in section 1805.201 of title 12, Code of Federal
Regulations, or any successor thereto) certified by the
Secretary that has applied to a qualified issuer for, or been
granted by a qualified issuer, a loan under the Program.
``(2) Eligible community or economic development purpose.--
The term `eligible community or economic development purpose'--
``(A) means any purpose described in section 108(b);
and
``(B) includes the provision of community or
economic development in low-income or underserved rural
areas.
``(3) Guarantee.--The term `guarantee' means a written
agreement between the Secretary and a qualified issuer (or
trustee), pursuant to which the Secretary ensures repayment of
the verifiable losses of principal, interest, and call premium,
if any, on notes or bonds issued by a qualified issuer to
finance or refinance loans to eligible community development
financial institutions.
``(4) Loan.--The term `loan' means any credit instrument
that is extended under the Program for any eligible community or
economic development purpose.
``(5) Master servicer.--
[[Page 124 STAT. 2516]]
``(A) In general.--The term `master servicer' means
any entity approved by the Secretary in accordance with
subparagraph (B) to oversee the activities of servicers,
as provided in subsection (f)(4).
``(B) <<NOTE: Deadline.>> Approval criteria for
master servicers.--The Secretary shall approve or deny
any application to become a master servicer under the
Program not later than 90 days after the date on which
all required information is submitted to the Secretary,
based on the capacity and experience of the applicant
in--
``(i) loan administration, servicing, and loan
monitoring;
``(ii) managing regional or national loan
intake, processing, or servicing operational
systems and infrastructure;
``(iii) managing regional or national
originator communication systems and
infrastructure;
``(iv) developing and implementing training
and other risk management strategies on a regional
or national basis; and
``(v) compliance monitoring, investor
relations, and reporting.
``(6) Program.--The term `Program' means the guarantee
Program for bonds and notes issued for eligible community or
economic development purposes established under this section.
``(7) Program administrator.--The term `Program
administrator' means an entity designated by the issuer to
perform administrative duties, as provided in subsection (f)(2).
``(8) Qualified issuer.--
``(A) In general.--The term `qualified issuer' means
a community development financial institution (or any
entity designated to issue notes or bonds on behalf of
such community development financial institution) that
meets the qualification requirements of this paragraph.
``(B) Approval criteria for qualified issuers.--
``(i) In general.--The Secretary shall approve
a qualified issuer for a guarantee under the
Program in accordance with the requirements of
this paragraph, and such additional requirements
as the Secretary may establish, by regulation.
``(ii) Terms and qualifications.--A qualified
issuer shall--
``(I) have appropriate expertise,
capacity, and experience, or otherwise
be qualified to make loans for eligible
community or economic development
purposes;
``(II) provide to the Secretary--
``(aa) an acceptable
statement of the proposed
sources and uses of the funds;
and
``(bb) a capital
distribution plan that meets the
requirements of subsection
(c)(1); and
``(III) <<NOTE: Certification.>>
certify to the Secretary that the bonds
or notes to be guaranteed are to be used
for eligible community or economic
development purposes.
``(C) <<NOTE: Deadlines.>> Department opinion;
timing.--
[[Page 124 STAT. 2517]]
``(i) Department opinion.--Not later than 30
days after the date of a request by a qualified
issuer for approval of a guarantee under the
Program, the Secretary shall provide an opinion
regarding compliance by the issuer with the
requirements of the Program under this section.
``(ii) Timing.--The Secretary shall approve or
deny a guarantee under this section after
consideration of the opinion provided to the
Secretary under clause (i), and in no case later
than 90 days after receipt of all required
information by the Secretary with respect to a
request for such guarantee.
``(9) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(10) Servicer.--The term `servicer' means an entity
designated by the issuer to perform various servicing duties, as
provided in subsection (f)(3).
``(b) Guarantees Authorized.--The Secretary shall guarantee payments
on bonds or notes issued by any qualified issuer, if the proceeds of the
bonds or notes are used in accordance with this section to make loans to
eligible community development financial institutions--
``(1) for eligible community or economic development
purposes; or
``(2) to refinance loans or notes issued for such purposes.
``(c) General Program Requirements.--
``(1) In general.--A capital distribution plan meets the
requirements of this subsection, if not less than 90 percent of
the principal amount of guaranteed bonds or notes (other than
costs of issuance fees) are used to make loans for any eligible
community or economic development purpose, measured annually,
beginning at the end of the 1-year period beginning on the
issuance date of such guaranteed bonds or notes.
``(2) Relending account.--Not more than 10 percent of the
principal amount of guaranteed bonds or notes, multiplied by an
amount equal to the outstanding principal balance of issued
notes or bonds, minus the risk-share pool amount under
subsection (d), may be held in a relending account and may be
made available for new eligible community or economic
development purposes.
``(3) Limitations on unpaid principal balances.--The
proceeds of guaranteed bonds or notes under the Program may not
be used to pay fees (other than costs of issuance fees), and
shall be held in--
``(A) community or economic development loans;
``(B) a relending account, to the extent authorized
under paragraph (2); or
``(C) a risk-share pool established under subsection
(d).
``(4) Repayment.--If a qualified issuer fails to meet the
requirements of paragraph (1) by the end of the 90-day period
beginning at the end of the annual measurement period, repayment
shall be made on that portion of bonds or notes necessary to
bring the bonds or notes that remain outstanding after such
repayment into compliance with the 90 percent requirement of
paragraph (1).
``(5) <<NOTE: Regulations.>> Prohibited uses.--The
Secretary shall, by regulation--
[[Page 124 STAT. 2518]]
``(A) prohibit, as appropriate, certain uses of
amounts from the guarantee of a bond or note under the
Program, including the use of such funds for political
activities, lobbying, outreach, counseling services, or
travel expenses; and
``(B) provide that the guarantee of a bond or note
under the Program may not be used for salaries or other
administrative costs of--
``(i) the qualified issuer; or
``(ii) any recipient of amounts from the
guarantee of a bond or note.
``(d) Risk-Share Pool.--Each qualified issuer shall, during the term
of a guarantee provided under the Program, establish a risk-share pool,
capitalized by contributions from eligible community development
financial institution participants an amount equal to 3 percent of the
guaranteed amount outstanding on the subject notes and bonds.
``(e) Guarantees.--
``(1) In general.--A guarantee issued under the Program
shall--
``(A) be for the full amount of a bond or note,
including the amount of principal, interest, and call
premiums;
``(B) be fully assignable and transferable to the
capital market, on terms and conditions that are
consistent with comparable Government-guaranteed bonds,
and satisfactory to the Secretary;
``(C) represent the full faith and credit of the
United States; and
``(D) not exceed 30 years.
``(2) Limitations.--
``(A) Annual number of guarantees.--The Secretary
shall issue not more than 10 guarantees in any calendar
year under the Program.
``(B) Guarantee amount.--The Secretary may not
guarantee any amount under the Program equal to less
than $100,000,000, but the total of all such guarantees
in any fiscal year may not exceed $1,000,000,000.
``(f) Servicing of Transactions.--
``(1) In general.--To maximize efficiencies and minimize
cost and interest rates, loans made under this section may be
serviced by qualified Program administrators, bond servicers,
and a master servicer.
``(2) Duties of program administrator.--The duties of a
Program administrator shall include--
``(A) approving and qualifying eligible community
development financial institution applications for
participation in the Program;
``(B) compliance monitoring;
``(C) bond packaging in connection with the Program;
and
``(D) all other duties and related services that are
customarily expected of a Program administrator.
``(3) Duties of servicer.--The duties of a servicer shall
include--
``(A) billing and collecting loan payments;
``(B) initiating collection activities on past-due
loans;
[[Page 124 STAT. 2519]]
``(C) transferring loan payments to the master
servicing accounts;
``(D) loan administration and servicing;
``(E) systematic and timely reporting of loan
performance through remittance and servicing reports;
``(F) proper measurement of annual outstanding loan
requirements; and
``(G) all other duties and related services that are
customarily expected of servicers.
``(4) Duties of master servicer.--The duties of a master
servicer shall include--
``(A) tracking the movement of funds between the
accounts of the master servicer and any other servicer;
``(B) ensuring orderly receipt of the monthly
remittance and servicing reports of the servicer;
``(C) monitoring the collection comments and
foreclosure actions;
``(D) aggregating the reporting and distribution of
funds to trustees and investors;
``(E) removing and replacing a servicer, as
necessary;
``(F) loan administration and servicing;
``(G) systematic and timely reporting of loan
performance compiled from all bond servicers' reports;
``(H) proper distribution of funds to investors; and
``(I) all other duties and related services that are
customarily expected of a master servicer.
``(g) Fees.--
``(1) In general.--A qualified issuer that receives a
guarantee issued under this section on a bond or note shall pay
a fee to the Secretary, in an amount equal to 10 basis points of
the amount of the unpaid principal of the bond or note
guaranteed.
``(2) Payment.--A qualified issuer shall pay the fee
required under this subsection on an annual basis.
``(3) Use of fees.--Fees collected by the Secretary under
this subsection shall be used to reimburse the Department of the
Treasury for any administrative costs incurred by the Department
in implementing the Program established under this section.
``(h) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the Secretary, such sums as are necessary to carry out this
section.
``(2) Use of fees.--To the extent that the amount of funds
appropriated for a fiscal year under paragraph (1) are not
sufficient to carry out this section, the Secretary may use the
fees collected under subsection (g) for the cost of providing
guarantees of bonds and notes under this section.
``(i) Investment in Guaranteed Bonds Ineligible for Community
Reinvestment Act Purposes.--Notwithstanding any other provision of law,
any investment by a financial institution in bonds or notes guaranteed
under the Program shall not be taken into account in assessing the
record of such institution for purposes of the Community Reinvestment
Act of 1977 (12 U.S.C. 2901).
``(j) <<NOTE: Deadlines.>> Administration.--
[[Page 124 STAT. 2520]]
``(1) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall promulgate
regulations to carry out this section.
``(2) Implementation.--Not later than 2 years after the date
of enactment of this section, the Secretary shall implement this
section.
``(k) <<NOTE: Repeal.>> Termination.--This section is repealed, and
the authority provided under this section shall terminate, on September
30, 2014.''.
SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT.
(a) In General.--Section 7(a)(31)(D) of the Small Business Act (15
U.S.C. 636(a)(31)(D)) is amended by striking ``$350,000'' and inserting
``$1,000,000''.
(b) <<NOTE: Effective date. 15 USC 636 note.>> Prospective
Repeal.--Effective 1 year after the date of enactment of this Act,
section 7(a)(31)(D) of the Small Business Act (15 U.S.C. 636(a)(31)(D))
is amended by striking ``$1,000,000'' and inserting ``$350,000''.
SEC. 1136. <<NOTE: 15 USC 632 note.>> PROHIBITION ON USING TARP
FUNDS OR TAX INCREASES.
(a) In General.--Except as provided in subsection (b), nothing in
section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 1118, 1122, or 1131,
or an amendment made by such sections, shall be construed to limit the
ability of Congress to appropriate funds.
(b) TARP Funds and Tax Increases.--
(1) In general.--Any covered amounts may not be used to
carry out section 1111, 1112, 1113, 1114, 1115, 1116, 1117,
1118, 1122, or 1131, or an amendment made by such sections.
(2) Definition.--In this subsection, the term ``covered
amounts'' means--
(A) the amounts made available to the Secretary of
the Treasury under title I of the Emergency Economic
Stabilization Act of 2008 S.C. 5201 et seq.) to purchase
(under section 101) or guarantee (under section 102)
assets under that Act; and
(B) any revenue increase attributable to any
amendment to the Internal Revenue Code of 1986 made
during the period beginning on the date of enactment of
this Act and ending on December 31, 2010.
Subtitle B <<NOTE: Small Business Export Enhancement and International
Trade Act of 2010.>> --Small Business Trade and Exporting
SEC. 1201. <<NOTE: 15 USC 631 note.>> SHORT TITLE.
This subtitle may be cited as the ``Small Business Export
Enhancement and International Trade Act of 2010''.
SEC. 1202. <<NOTE: 15 USC 649b note.>> DEFINITIONS.
(a) Definitions.--In this subtitle--
(1) the term ``Associate Administrator'' means the Associate
Administrator for International Trade appointed under section
22(a)(2) of the Small Business Act, as amended by this subtitle;
(2) the term ``Export Assistance Center'' means a one-stop
shop referred to in section 2301(b)(8) of the Omnibus Trade and
Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); and
[[Page 124 STAT. 2521]]
(3) the term ``rural small business concern'' means a small
business concern located in a rural area, as that term is
defined in section 1393(a)(2) of the Internal Revenue Code of
1986.
(b) Technical and Conforming Amendments.--
(1) Definitions.--Section 3 of the Small Business Act (15
U.S.C. 632) is amended by adding at the end the following:
``(t) Small Business Development Center.--In this Act, the term
`small business development center' means a small business development
center described in section 21.
``(u) Region of the Administration.--In this Act, the term `region
of the Administration' means the geographic area served by a regional
office of the Administration established under section 4(a).''.
(2) Conforming amendment.--Section 4(b)(3)(B)(x) of the
Small Business Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by
striking ``Administration district and region'' and inserting
``district and region of the Administration''.
SEC. 1203. OFFICE OF INTERNATIONAL TRADE.
(a) Establishment.--Section 22 of the Small Business Act (15 U.S.C.
649) is amended--
(1) by striking ``Sec. 22. (a) There'' and inserting the
following:
``SEC. 22. OFFICE OF INTERNATIONAL TRADE.
``(a) Establishment.--
``(1) Office.--There''; and
(2) in subsection (a)--
(A) in paragraph (1), as so designated, by striking
the period and inserting ``for the primary purposes of
increasing--
``(A) the number of small business concerns that
export; and
``(B) the volume of exports by small business
concerns.''; and
(B) by adding at the end the following:
``(2) Associate administrator.--The head of the Office shall
be the Associate Administrator for International Trade, who
shall be responsible to the Administrator.''.
(b) Authority for Additional Associate Administrator.--Section
4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended--
(1) in the fifth sentence, by striking ``five Associate
Administrators'' and inserting ``Associate Administrators''; and
(2) by adding at the end the following: ``One such Associate
Administrator shall be the Associate Administrator for
International Trade, who shall be the head of the Office of
International Trade established under section 22.''.
(c) Discharge of International Trade Responsibilities of
Administration.--Section 22 of the Small Business Act (15 U.S.C. 649) is
amended by adding at the end the following:
``(h) Discharge of International Trade Responsibilities of
Administration.--The Administrator shall ensure that--
``(1) the responsibilities of the Administration regarding
international trade are carried out by the Associate
Administrator;
``(2) the Associate Administrator has sufficient resources
to carry out such responsibilities; and
[[Page 124 STAT. 2522]]
``(3) the Associate Administrator has direct supervision and
control over--
``(A) the staff of the Office; and
``(B) any employee of the Administration whose
principal duty station is an Export Assistance Center,
or any successor entity.''.
(d) Role of Associate Administrator in Carrying Out International
Trade Policy.--Section 2(b)(1) of the Small Business Act (15 U.S.C.
631(b)(1)) is amended in the matter preceding subparagraph (A)--
(1) by inserting ``the Administrator of'' before ``the Small
Business Administration''; and
(2) by inserting ``through the Associate Administrator for
International Trade, and'' before ``in cooperation with''.
(e) <<NOTE: Appointment. 15 USC 649 note.>> Implementation Date.--
Not later than 90 days after the date of enactment of this Act, the
Administrator of the Small Business Administration shall appoint an
Associate Administrator for International Trade under section 22(a) of
the Small Business Act (15 U.S.C. 649(a)), as added by this section.
SEC. 1204. DUTIES OF THE OFFICE OF INTERNATIONAL TRADE.
(a) Amendments to Section 22.--Section 22 of the Small Business Act
(15 U.S.C. 649) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Trade Distribution Network.--The Associate Administrator,
working in close cooperation with the Secretary of Commerce, the United
States Trade Representative, the Secretary of Agriculture, the Secretary
of State, the President of the Export-Import Bank of the United States,
the President of the Overseas Private Investment Corporation, Director
of the United States Trade and Development Agency, and other relevant
Federal agencies, small business development centers engaged in export
promotion efforts, Export Assistance Centers, regional and district
offices of the Administration, the small business community, and
relevant State and local export promotion programs, shall--
``(1) maintain a distribution network, using regional and
district offices of the Administration, the small business
development center network, networks of women's business
centers, the Service Corps of Retired Executives authorized by
section 8(b)(1), and Export Assistance Centers, for programs
relating to--
``(A) trade promotion;
``(B) trade finance;
``(C) trade adjustment assistance;
``(D) trade remedy assistance; and
``(E) trade data collection;
``(2) aggressively market the programs described in
paragraph (1) and disseminate information, including
computerized marketing data, to small business concerns on
exporting trends, market-specific growth, industry trends, and
international prospects for exports;
``(3) promote export assistance programs through the
district and regional offices of the Administration, the small
business development center network, Export Assistance Centers,
the network of women's business centers, chapters of the Service
Corps of Retired Executives, State and local export promotion
programs, and partners in the private sector; and
[[Page 124 STAT. 2523]]
``(4) give preference in hiring or approving the transfer of
any employee into the Office or to a position described in
subsection (c)(9) to otherwise qualified applicants who are
fluent in a language in addition to English, to--
``(A) accompany small business concerns on foreign
trade missions; and
``(B) translate documents, interpret conversations,
and facilitate multilingual transactions, including by
providing referral lists for translation services, if
required.'';
(2) in subsection (c)--
(A) by striking ``(c) The Office'' and inserting the
following:
``(c) Promotion of Sales Opportunities.--The Associate
Administrator'';
(B) by redesignating paragraphs (1) through (8) as
paragraphs (2) through (9), respectively;
(C) by inserting before paragraph (2), as so
redesignated, the following:
``(1) establish annual goals for the Office relating to--
``(A) enhancing the exporting capability of small
business concerns and small manufacturers;
``(B) facilitating technology transfers;
``(C) enhancing programs and services to assist
small business concerns and small manufacturers to
compete effectively and efficiently in foreign markets;
``(D) increasing the ability of small business
concerns to access capital; and
``(E) disseminating information concerning Federal,
State, and private programs and initiatives;'';
(D) in paragraph (2), as so redesignated, by
striking ``mechanism for'' and all that follows through
``(D) assisting'' and inserting the following:
``mechanism for--
``(A) identifying subsectors of the small business
community with strong export potential;
``(B) identifying areas of demand in foreign
markets;
``(C) prescreening foreign buyers for commercial and
credit purposes; and
``(D) assisting'';
(E) in paragraph (3), as so redesignated, by
striking ``assist small businesses in the formation and
utilization of'' and inserting ``assist small business
concerns in forming and using'';
(F) in paragraph (4), as so redesignated--
(i) by striking ``local'' and inserting
``district'';
(ii) by striking ``existing'';
(iii) by striking ``Small Business Development
Center network'' and inserting ``small business
development center network''; and
(iv) by striking ``Small Business Development
Center Program'' and inserting ``small business
development center program'';
(G) in paragraph (5), as so redesignated--
(i) in subparagraph (A), by striking ``Gross
State Produce'' and inserting ``Gross State
Product'';
(ii) in subparagraph (B), by striking ``SIC''
each place it appears and inserting ``North
American Industry Classification System''; and
[[Page 124 STAT. 2524]]
(iii) in subparagraph (C), by striking ``small
businesses'' and inserting ``small business
concerns'';
(H) in paragraph (6), as so redesignated, by
striking the period at the end and inserting a
semicolon;
(I) in paragraph (7), as so redesignated--
(i) in the matter preceding subparagraph (A)--
(I) by inserting ``concerns'' after
``small business''; and
(II) by striking ``current'' and
inserting ``up to date'';
(ii) in subparagraph (A), by striking
``Administration's regional offices'' and
inserting ``regional and district offices of the
Administration'';
(iii) in subparagraph (B) by striking
``current'';
(iv) in subparagraph (C), by striking
``current''; and
(v) by striking ``small businesses'' each
place that term appears and inserting ``small
business concerns'';
(J) in paragraph (8), as so redesignated, by
striking and at the end;
(K) in paragraph (9), as so redesignated--
(i) in the matter preceding subparagraph (A)--
(I) by striking ``full-time export
development specialists to each
Administration regional office and
assigning''; and
(II) by striking ``person in each
district office. Such specialists'' and
inserting ``individual in each district
office and providing each Administration
regional office with a full-time export
development specialist, who'';
(ii) in subparagraph (B)--
(I) by striking ``current''; and
(II) by striking ``with'' and
inserting ``in'';
(iii) in subparagraph (D)--
(I) by striking ``Administration
personnel involved in granting'' and
inserting ``personnel of the
Administration involved in making''; and
(II) by striking ``and'' at the end;
(iv) in subparagraph (E)--
(I) by striking ``small businesses'
needs'' and inserting ``the needs of
small business concerns''; and
(II) by striking the period at the
end and inserting a semicolon;
(v) by adding at the end the following:
``(F) participate, jointly with employees of the
Office, in an annual training program that focuses on
current small business needs for exporting; and
``(G) develop and conduct training programs for
exporters and lenders, in cooperation with the Export
Assistance Centers, the Department of Commerce, the
Department of Agriculture, small business development
centers, women's business centers, the Export-Import
Bank of the United States, the Overseas Private
Investment Corporation, and other relevant Federal
agencies;''; and
[[Page 124 STAT. 2525]]
(vi) by striking ``small businesses'' each
place that term appears and inserting ``small
business concerns''; and
(L) by adding at the end the following:
``(10) <<NOTE: Web posting.>> make available on the website
of the Administration the name and contact information of each
individual described in paragraph (9);
``(11) carry out a nationwide marketing effort using
technology, online resources, training, and other strategies to
promote exporting as a business development opportunity for
small business concerns;
``(12) disseminate information to the small business
community through regional and district offices of the
Administration, the small business development center network,
Export Assistance Centers, the network of women's business
centers, chapters of the Service Corps of Retired Executives
authorized by section 8(b)(1), State and local export promotion
programs, and partners in the private sector regarding exporting
trends, market-specific growth, industry trends, and prospects
for exporting; and
``(13) establish and carry out training programs for the
staff of the regional and district offices of the Administration
and resource partners of the Administration on export promotion
and providing assistance relating to exports.'';
(3) in subsection (d)--
(A) by redesignating paragraphs (1) through (5) as
clauses (i) through (v), respectively, and adjusting the
margins accordingly;
(B) by striking ``(d) The Office'' and inserting the
following:
``(d) Export Financing Programs.--
``(1) In general.--The Associate Administrator''; and
(C) by striking ``To accomplish this goal, the
Office shall work'' and inserting the following:
``(2) <<NOTE: Designation.>> Trade finance specialist.--To
accomplish the goal established under paragraph (1), the
Associate Administrator shall--
``(A) designate at least 1 individual within the
Administration as a trade finance specialist to oversee
international loan programs and assist Administration
employees with trade finance issues; and
``(B) work'';
(4) in subsection (e), by striking ``(e) The Office'' and
inserting the following:
``(e) Trade Remedies.--The Associate Administrator'';
(5) by amending subsection (f) to read as follows:
``(f) Reporting Requirement.--The Associate Administrator shall
submit an annual report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of
the House of Representatives that contains--
``(1) a description of the progress of the Office in
implementing the requirements of this section;
``(2) a detailed account of the results of export growth
activities of the Administration, including the activities of
each district and regional office of the Administration, based
on the performance measures described in subsection (i);
[[Page 124 STAT. 2526]]
``(3) an estimate of the total number of jobs created or
retained as a result of export assistance provided by the
Administration and resource partners of the Administration;
``(4) for any travel by the staff of the Office, the
destination of such travel and the benefits to the
Administration and to small business concerns resulting from
such travel; and
``(5) a description of the participation by the Office in
trade negotiations.'';
(6) in subsection (g), by striking ``(g) The Office'' and
inserting the following:
``(g) Studies.--The Associate Administrator''; and
(7) by adding after subsection (h), as added by section 1203
of this subtitle, the following:
``(i) Export and Trade Counseling.--
``(1) Definition.--In this subsection--
``(A) the term `lead small business development
center' means a small business development center that
has received a grant from the Administration; and
``(B) the term `lead women's business center' means
a women's business center that has received a grant from
the Administration.
``(2) Certification program.--The Administrator shall
establish an export and trade counseling certification program
to certify employees of lead small business development centers
and lead women's business centers in providing export assistance
to small business concerns.
``(3) Number of certified employees.--The Administrator
shall ensure that the number of employees of each lead small
business development center who are certified in providing
export assistance is not less than the lesser of--
``(A) 5; or
``(B) 10 percent of the total number of employees of
the lead small business development center.
``(4) Reimbursement for certification.--
``(A) In general.--Subject to the availability of
appropriations, the Administrator shall reimburse a lead
small business development center or a lead women's
business center for costs relating to the certification
of an employee of the lead small business center or lead
women's business center in providing export assistance
under the program established under paragraph (2).
``(B) Limitation.--The total amount reimbursed by
the Administrator under subparagraph (A) may not exceed
$350,000 in any fiscal year.
``(j) Performance Measures.--
``(1) In general.--The Associate Administrator shall develop
performance measures for the Administration to support export
growth goals for the activities of the Office under this section
that include--
``(A) the number of small business concerns that--
``(i) receive assistance from the
Administration;
``(ii) had not exported goods or services
before receiving the assistance described in
clause (i); and
``(iii) export goods or services;
``(B) the number of small business concerns
receiving assistance from the Administration that export
goods or services to a market outside the United States
into which
[[Page 124 STAT. 2527]]
the small business concern did not export before
receiving the assistance;
``(C) export revenues by small business concerns
assisted by programs of the Administration;
``(D) the number of small business concerns referred
to an Export Assistance Center or a small business
development center by the staff of the Office;
``(E) the number of small business concerns referred
to the Administration by an Export Assistance Center or
a small business development center; and
``(F) the number of small business concerns referred
to the Department of Commerce, the Department of
Agriculture, the Department of State, the Export-Import
Bank of the United States, the Overseas Private
Investment Corporation, or the United States Trade and
Development Agency by the staff of the Office, an Export
Assistance Center, or a small business development
center.
``(2) Joint performance measures.--The Associate
Administrator shall develop joint performance measures for the
district offices of the Administration and the Export Assistance
Centers that include the number of export loans made under--
``(A) section 7(a)(16);
``(B) the Export Working Capital Program established
under section 7(a)(14);
``(C) the Preferred Lenders Program, as defined in
section 7(a)(2)(C)(ii); and
``(D) the export express program established under
section 7(a)(34).
``(3) Consistency of tracking.--The Associate Administrator,
in coordination with the departments and agencies that are
represented on the Trade Promotion Coordinating Committee
established under section 2312 of the Export Enhancement Act of
1988 (15 U.S.C. 4727) and the small business development center
network, shall develop a system to track exports by small
business concerns, including information relating to the
performance measures developed under paragraph (1), that is
consistent with systems used by the departments and agencies and
the network.''.
(b) Report.--Not later than 60 days after the date of enactment of
this Act, the Administrator shall submit a report to the Committee on
Small Business and Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives on any travel by the
staff of the Office of International Trade of the Administration, during
the period beginning on October 1, 2004, and ending on the date of
enactment of the Act, including the destination of such travel and the
benefits to the Administration and to small business concerns resulting
from such travel.
SEC. 1205. EXPORT ASSISTANCE CENTERS.
(a) Export Assistance Centers.--Section 22 of the Small Business Act
(15 U.S.C. 649), as amended by this subtitle, is amended by adding at
the end the following:
``(k) Export Assistance Centers.--
``(1) <<NOTE: Deadlines.>> Export finance specialists.--
``(A) Minimum number of export finance
specialists.--On and after the date that is 90 days
after the
[[Page 124 STAT. 2528]]
date of enactment of this subsection, the Administrator,
in coordination with the Secretary of Commerce, shall
ensure that the number of export finance specialists is
not less than the number of such employees so assigned
on January 1, 2003.
``(B) Export finance specialists assigned to each
region of the administration.--On and after the date
that is 2 years after the date of enactment of this
subsection, the Administrator, in coordination with the
Secretary of Commerce, shall ensure that there are not
fewer than 3 export finance specialists in each region
of the Administration.
``(2) Placement of export finance specialists.--
``(A) Priority.--The Administrator shall give
priority, to the maximum extent practicable, to placing
employees of the Administration at any Export Assistance
Center that--
``(i) had an Administration employee assigned
to the Export Assistance Center before January
2003; and
``(ii) <<NOTE: Time period.>> has not had an
Administration employee assigned to the Export
Assistance Center during the period beginning
January 2003, and ending on the date of enactment
of this subsection, either through retirement or
reassignment.
``(B) Needs of exporters.--The Administrator shall,
to the maximum extent practicable, strategically assign
Administration employees to Export Assistance Centers,
based on the needs of exporters.
``(C) Rule of construction.--Nothing in this
subsection may be construed to require the Administrator
to reassign or remove an export finance specialist who
is assigned to an Export Assistance Center on the date
of enactment of this subsection.
``(3) Goals.--The Associate Administrator shall work with
the Department of Commerce, the Export-Import Bank of the United
States, and the Overseas Private Investment Corporation to
establish shared annual goals for the Export Assistance Centers.
``(4) <<NOTE: Designation.>> Oversight.--The Associate
Administrator shall designate an individual within the
Administration to oversee all activities conducted by
Administration employees assigned to Export Assistance Centers.
``(l) Definitions.--In this section--
``(1) the term `Associate Administrator' means the Associate
Administrator for International Trade described in subsection
(a)(2);
``(2) the term `Export Assistance Center' means a one-stop
shop for United States exporters established by the United
States and Foreign Commercial Service of the Department of
Commerce pursuant to section 2301(b)(8) of the Omnibus Trade and
Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8));
``(3) the term `export finance specialist' means a full-time
equivalent employee of the Office assigned to an Export
Assistance Center to carry out the duties described in
subsection (e); and
[[Page 124 STAT. 2529]]
``(4) the term `Office' means the Office of International
Trade established under subsection (a)(1).''.
(b) <<NOTE: 15 USC 649 note.>> Study and Report on Filling Gaps in
High-and-Low-Export Volume Areas.--
(1) Study and report.--Not later than 6 months after the
date of enactment of this Act, and every 2 years thereafter, the
Administrator shall--
(A) conduct a study of--
(i) the volume of exports for each State;
(ii) the availability of export finance
specialists in each State;
(iii) the number of exporters in each State
that are small business concerns;
(iv) the percentage of exporters in each State
that are small business concerns;
(v) the change, if any, in the number of
exporters that are small business concerns in each
State--
(I) for the first study conducted
under this subparagraph, during the 10-
year period ending on the date of
enactment of this Act; and
(II) for each subsequent study,
during the 10-year period ending on the
date the study is commenced;
(vi) the total value of the exports in each
State by small business concerns;
(vii) the percentage of the total volume of
exports in each State that is attributable to
small business concerns; and
(viii) the change, if any, in the percentage
of the total volume of exports in each State that
is attributable to small business concerns--
(I) for the first study conducted
under this subparagraph, during the 10-
year period ending on the date of
enactment of this Act; and
(II) for each subsequent study,
during the 10-year period ending on the
date the study is commenced; and
(B) submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives a report
containing--
(i) the results of the study under
subparagraph (A);
(ii) to the extent practicable, a
recommendation regarding how to eliminate gaps
between the supply of and demand for export
finance specialists in the 15 States that have the
greatest volume of exports, based upon the most
recent data available from the Department of
Commerce;
(iii) to the extent practicable, a
recommendation regarding how to eliminate gaps
between the supply of and demand for export
finance specialists in the 15 States that have the
lowest volume of exports, based upon the most
recent data available from the Department of
Commerce; and
(iv) such additional information as the
Administrator determines is appropriate.
[[Page 124 STAT. 2530]]
(2) Definition.--In this subsection, the term ``export
finance specialist'' has the meaning given that term in section
22(l) of the Small Business Act, as added by this title.
SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS.
(a) Loan Limits.--
(1) Total amount outstanding.--Section 7(a)(3)(B) of the
Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by
striking ``$1,750,000, of which not more than $1,250,000'' and
inserting ``$4,500,000 (or if the gross loan amount would exceed
$5,000,000), of which not more than $4,000,000''.
(2) Participation.--Section 7(a)(2) of the Small Business
Act (15 U.S.C. 636(a)(2)) is amended--
(A) in subparagraph (A), in the matter preceding
clause (i), by striking ``subparagraph (B)'' and
inserting ``subparagraphs (B), (D), and (E)'';
(B) in subparagraph (D), by striking
``Notwithstanding subparagraph (A), in'' and inserting
``In''; and
(C) by adding at the end the following:
``(E) Participation in international trade loan.--In
an agreement to participate in a loan on a deferred
basis under paragraph (16), the participation by the
Administration may not exceed 90 percent.''.
(b) Working Capital.--Section 7(a)(16)(A) of the Small Business Act
(15 U.S.C. 636(a)(16)(A)) is amended--
(1) in the matter preceding clause (i), by striking ``in--''
and inserting ``--'';
(2) in clause (i)--
(A) by inserting ``in'' after ``(i)''; and
(B) by striking ``or'' at the end;
(3) in clause (ii)--
(A) by inserting ``in'' after ``(ii)''; and
(B) by striking the period at the end and inserting
``, including any debt that qualifies for refinancing
under any other provision of this subsection; or''; and
(4) by adding at the end the following:
``(iii) by providing working capital.''.
(c) Collateral.--Section 7(a)(16)(B) of the Small Business Act (15
U.S.C. 636(a)(16)(B)) is amended--
(1) by striking ``Each loan'' and inserting the following:
``(i) In general.--Except as provided in
clause (ii), each loan''; and
(2) by adding at the end the following:
``(ii) Exception.--A loan under this paragraph
may be secured by a second lien position on the
property or equipment financed by the loan or on
other assets of the small business concern, if the
Administrator determines the lien provides
adequate assurance of the payment of the loan.''.
(d) Export Working Capital Program.--Section 7(a) of the Small
Business Act (15 U.S.C. 636(a)) is amended--
(1) in paragraph (2)(D), by striking ``not exceed'' and
inserting ``be''; and
(2) in paragraph (14)--
(A) by striking ``(A) The Administration'' and
inserting the following: ``Export working capital
program.--
``(A) In general.--The Administrator'';
[[Page 124 STAT. 2531]]
(B) by striking ``(B) When considering'' and
inserting the following:
``(C) Considerations.--When considering'';
(C) by striking ``(C) The Administration'' and
inserting the following:
``(D) Marketing.--The Administrator''; and
(D) by inserting after subparagraph (A) the
following:
``(B) Terms.--
``(i) Loan amount.--The Administrator may not
guarantee a loan under this paragraph of more than
$5,000,000.
``(ii) Fees.--
``(I) In general.--For a loan under
this paragraph, the Administrator shall
collect the fee assessed under paragraph
(23) not more frequently than once each
year.
``(II) Untapped credit.--The
Administrator may not assess a fee on
capital that is not accessed by the
small business concern.''.
(e) Participation in Preferred Lenders Program.--Section 7(a)(2)(C)
of the Small Business Act (15 U.S.C. 636(a)(2)(C)) is amended--
(1) by redesignating clause (ii) as clause (iii); and
(2) by inserting after clause (i) the following:
``(ii) Export-import bank lenders.--Any lender
that is participating in the Delegated Authority
Lender Program of the Export-Import Bank of the
United States (or any successor to the Program)
shall be eligible to participate in the Preferred
Lenders Program.''.
(f) Export Express Program.--Section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) is amended by adding at the end the following:
``(35) Export express program.--
``(A) Definitions.--In this paragraph--
``(i) the term `export development activity'
includes--
``(I) obtaining a standby letter of
credit when required as a bid bond,
performance bond, or advance payment
guarantee;
``(II) participation in a trade show
that takes place outside the United
States;
``(III) translation of product
brochures or catalogues for use in
markets outside the United States;
``(IV) obtaining a general line of
credit for export purposes;
``(V) performing a service contract
from buyers located outside the United
States;
``(VI) obtaining transaction-
specific financing associated with
completing export orders;
``(VII) purchasing real estate or
equipment to be used in the production
of goods or services for export;
``(VIII) providing term loans or
other financing to enable a small
business concern, including an
[[Page 124 STAT. 2532]]
export trading company and an export
management company, to develop a market
outside the United States; and
``(IX) acquiring, constructing,
renovating, modernizing, improving, or
expanding a production facility or
equipment to be used in the United
States in the production of goods or
services for export; and
``(ii) the term `express loan' means a loan in
which a lender uses to the maximum extent
practicable the loan analyses, procedures, and
documentation of the lender to provide expedited
processing of the loan application.
``(B) Authority.--The Administrator may guarantee
the timely payment of an express loan to a small
business concern made for an export development
activity.
``(C) Level of participation.--
``(i) Maximum amount.--The maximum amount of
an express loan guaranteed under this paragraph
shall be $500,000.
``(ii) Percentage.--For an express loan
guaranteed under this paragraph, the Administrator
shall guarantee--
``(I) 90 percent of a loan that is
not more than $350,000; and
``(II) 75 percent of a loan that is
more than $350,000 and not more than
$500,000.''.
(g) Annual Listing of Export Finance Lenders.--Section 7(a)(16) of
the Small Business Act (15 U.S.C. 636(a)(16)) is amended by adding at
the end the following:
``(F) List of export finance lenders.--
``(i) Publication of list required.--The
Administrator shall publish an annual list of the
banks and participating lending institutions that,
during the 1-year period ending on the date of
publication of the list, have made loans
guaranteed by the Administration under--
``(I) this paragraph;
``(II) paragraph (14); or
``(III) paragraph (34).
``(ii) Availability of list.--The
Administrator shall--
``(I) <<NOTE: Web posting.>> post
the list published under clause (i) on
the website of the Administration; and
``(II) make the list published under
clause (i) available, upon request, at
each district office of the
Administration.''.
(h) <<NOTE: 15 USC 636 note.>> Applicability.--The amendments made
by subsections (a) through (f) shall apply with respect to any loan made
after the date of enactment of this Act.
SEC. 1207. <<NOTE: 15 USC 649b note.>> STATE TRADE AND EXPORT
PROMOTION GRANT PROGRAM.
(a) Definitions.--In this section--
(1) the term ``eligible small business concern'' means a
small business concern that--
[[Page 124 STAT. 2533]]
(A) has been in business for not less than the 1-
year period ending on the date on which assistance is
provided using a grant under this section;
(B) is operating profitably, based on operations in
the United States;
(C) has demonstrated understanding of the costs
associated with exporting and doing business with
foreign purchasers, including the costs of freight
forwarding, customs brokers, packing and shipping, as
determined by the Associate Administrator; and
(D) has in effect a strategic plan for exporting;
(2) the term ``program'' means the State Trade and Export
Promotion Grant Program established under subsection (b);
(3) the term ``small business concern owned and controlled
by women'' has the meaning given that term in section 3 of the
Small Business Act (15 U.S.C. 632);
(4) the term ``socially and economically disadvantaged small
business concern'' has the meaning given that term in section
8(a)(4)(A) of the Small Business Act (15 U.S.C. 6537(a)(4)(A));
and
(5) the term ``State'' means each of the several States, the
District of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, and American Samoa.
(b) Establishment of Program.--The Associate Administrator shall
establish a 3-year trade and export promotion pilot program to be known
as the State Trade and Export Promotion Grant Program, to make grants to
States to carry out export programs that assist eligible small business
concerns in--
(1) participation in a foreign trade mission;
(2) a foreign market sales trip;
(3) a subscription to services provided by the Department of
Commerce;
(4) the payment of website translation fees;
(5) the design of international marketing media;
(6) a trade show exhibition;
(7) participation in training workshops; or
(8) any other export initiative determined appropriate by
the Associate Administrator.
(c) Grants.--
(1) Joint review.--In carrying out the program, the
Associate Administrator may make a grant to a State to increase
the number of eligible small business concerns in the State that
export or to increase the value of the exports by eligible small
business concerns in the State.
(2) Considerations.--In making grants under this section,
the Associate Administrator may give priority to an application
by a State that proposes a program that--
(A) focuses on eligible small business concerns as
part of an export promotion program;
(B) demonstrates success in promoting exports by--
(i) socially and economically disadvantaged
small business concerns;
(ii) small business concerns owned or
controlled by women; and
(iii) rural small business concerns;
(C) promotes exports from a State that is not 1 of
the 10 States with the highest percentage of exporters
[[Page 124 STAT. 2534]]
that are small business concerns, based upon the latest
data available from the Department of Commerce; and
(D) promotes new-to-market export opportunities to
the People's Republic of China for eligible small
business concerns in the United States.
(3) Limitations.--
(A) Single application.--A State may not submit more
than 1 application for a grant under the program in any
1 fiscal year.
(B) Proportion of amounts.--The total value of
grants under the program made during a fiscal year to
the 10 States with the highest number of exporters that
are small business concerns, based upon the latest data
available from the Department of Commerce, shall be not
more than 40 percent of the amounts appropriated for the
program for that fiscal year.
(4) Application.--A State desiring a grant under the program
shall submit an application at such time, in such manner, and
accompanied by such information as the Associate Administrator
may establish.
(d) Competitive Basis.--The Associate Administrator shall award
grants under the program on a competitive basis.
(e) Federal Share.--The Federal share of the cost of an export
program carried out using a grant under the program shall be--
(1) for a State that has a high export volume, as determined
by the Associate Administrator, not more than 65 percent; and
(2) for a State that does not have a high export volume, as
determined by the Associate Administrator, not more than 75
percent.
(f) Non-Federal Share.--The non-Federal share of the cost of an
export program carried using a grant under the program shall be
comprised of not less than 50 percent cash and not more than 50 percent
of indirect costs and in-kind contributions, except that no such costs
or contributions may be derived from funds from any other Federal
program.
(g) Reports.--
(1) Initial report.--Not later than 120 days after the date
of enactment of this Act, the Associate Administrator shall
submit to the Committee on Small Business and Entrepreneurship
of the Senate and the Committee on Small Business of the House
of Representatives a report, which shall include--
(A) a description of the structure of and procedures
for the program;
(B) a management plan for the program; and
(C) a description of the merit-based review process
to be used in the program.
(2) Annual reports.--The Associate Administrator shall
submit an annual report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives regarding the program,
which shall include--
(A) the number and amount of grants made under the
program during the preceding year;
[[Page 124 STAT. 2535]]
(B) a list of the States receiving a grant under the
program during the preceding year, including the
activities being performed with grant; and
(C) the effect of each grant on exports by eligible
small business concerns in the State receiving the
grant.
(h) Reviews by Inspector General.--
(1) In general.--The Inspector General of the Administration
shall conduct a review of--
(A) the extent to which recipients of grants under
the program are measuring the performance of the
activities being conducted and the results of the
measurements; and
(B) the overall management and effectiveness of the
program.
(2) Report.--Not later than September 30, 2012, the
Inspector General of the Administration shall submit to the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of
Representatives a report regarding the review conducted under
paragraph (1).
(i) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the program $30,000,000 for each of fiscal
years 2011, 2012, and 2013.
(j) Termination.--The authority to carry out the program shall
terminate 3 years after the date on which the Associate Administrator
establishes the program.
SEC. 1208. RURAL EXPORT PROMOTION.
Not <<NOTE: Deadline. Reports.>> later than 6 months after the date
of enactment of this Act, the Administrator, in consultation with the
Secretary of Agriculture and the Secretary of Commerce, shall submit to
the Committee on Small Business and Entrepreneurship of the Senate and
the Committee on Small Business of the House of Representatives a report
that contains--
(1) a description of each program of the Administration that
promotes exports by rural small business concerns, including--
(A) the number of rural small business concerns
served by the program;
(B) the change, if any, in the number of rural small
business concerns as a result of participation in the
program during the 10-year period ending on the date of
enactment of this Act;
(C) the volume of exports by rural small business
concerns that participate in the program; and
(D) the change, if any, in the volume of exports by
rural small businesses that participate in the program
during the 10-year period ending on the date of
enactment of this Act;
(2) a description of the coordination between programs of
the Administration and other Federal programs that promote
exports by rural small business concerns;
(3) recommendations, if any, for improving the coordination
described in paragraph (2);
(4) a description of any plan by the Administration to
market the international trade financing programs of the
Administration through lenders that--
[[Page 124 STAT. 2536]]
(A) serve rural small business concerns; and
(B) are associated with financing programs of the
Department of Agriculture;
(5) recommendations, if any, for improving coordination
between the counseling programs and export financing programs of
the Administration, in order to increase the volume of exports
by rural small business concerns; and
(6) any additional information the Administrator determines
is necessary.
SEC. 1209. INTERNATIONAL TRADE COOPERATION BY SMALL BUSINESS
DEVELOPMENT CENTERS.
Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) is
amended--
(1) by striking ``(2) The Small Business Development
Centers'' and inserting the following:
``(2) Cooperation to provide international trade services.--
``(A) Information and services.--The small business
development centers''; and
(2) in paragraph (2)--
(A) in subparagraph (A), as so designated, by
inserting ``(including State trade agencies),'' after
``local agencies''; and
(B) by adding at the end the following:
``(B) Cooperation with state trade agencies and
export assistance centers.--A small business development
center that counsels a small business concern on issues
relating to international trade shall--
``(i) consult with State trade agencies and
Export Assistance Centers to provide appropriate
services to the small business concern; and
``(ii) as necessary, refer the small business
concern to a State trade agency or an Export
Assistance Center for further counseling or
assistance.
``(C) Definition.--In this paragraph, the term
`Export Assistance Center' has the same meaning as in
section 22.''.
Subtitle C--Small Business Contracting
PART I--CONTRACT BUNDLING
SEC. 1311. SMALL BUSINESS ACT.
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by
section 1202, is amended by adding at the end the following:
``(v) <<NOTE: Definition.>> Multiple Award Contract.--In this Act,
the term `multiple award contract' means--
``(1) a multiple award task order contract or delivery order
contract that is entered into under the authority of sections
303H through 303K of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253h through 253k); and
``(2) any other indefinite delivery, indefinite quantity
contract that is entered into by the head of a Federal agency
with 2 or more sources pursuant to the same solicitation.''.
[[Page 124 STAT. 2537]]
SEC. 1312. LEADERSHIP AND OVERSIGHT.
(a) In General.--Section 15 of the Small Business Act (15 U.S.C.
644) is amended by adding at the end the following:
``(q) Bundling Accountability Measures.--
``(1) Teaming requirements.--Each Federal agency shall
include in each solicitation for any multiple award contract
above the substantial bundling threshold of the Federal agency a
provision soliciting bids from any responsible source, including
responsible small business concerns and teams or joint ventures
of small business concerns.
``(2) <<NOTE: Deadlines. Web postings.>> Policies on
reduction of contract bundling.--
``(A) In general.--Not later than 1 year after the
date of enactment of this subsection, the Federal
Acquisition Regulatory Council established under section
25(a) of the Office of Federal Procurement Policy Act
(41 U.S.C. 4219(a)) shall amend the Federal Acquisition
Regulation issued under section 25 of such Act to--
``(i) establish a Government-wide policy
regarding contract bundling, including regarding
the solicitation of teaming and joint ventures
under paragraph (1); and
``(ii) require that the policy established
under clause (i) be published on the website of
each Federal agency.
``(B) Rationale for contract bundling.--Not later
than 30 days after the date on which the head of a
Federal agency submits data certifications to the
Administrator for Federal Procurement Policy, the head
of the Federal agency shall publish on the website of
the Federal agency a list and rationale for any bundled
contract for which the Federal agency solicited bids or
that was awarded by the Federal agency.
``(3) Reporting.--Not later than 90 days after the date of
enactment of this subsection, and every 3 years thereafter, the
Administrator shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report regarding
procurement center representatives and commercial market
representatives, which shall--
``(A) identify each area for which the
Administration has assigned a procurement center
representative or a commercial market representative;
``(B) explain why the Administration selected the
areas identified under subparagraph (A); and
``(C) describe the activities performed by
procurement center representatives and commercial market
representatives.''.
(b) Technical Correction.--Section 15(g) of the Small Business Act
(15 U.S.C. 644(g)) is amended by striking ``Administrator of the Office
of Federal Procurement Policy'' each place it appears and inserting
``Administrator for Federal Procurement Policy''.
(c) Report.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report regarding the
procurement center representative program of the Administration.
[[Page 124 STAT. 2538]]
(2) Contents.--The report submitted under paragraph (1)
shall--
(A) address ways to improve the effectiveness of the
procurement center representative program in helping
small business concerns obtain Federal contracts;
(B) evaluate the effectiveness of procurement center
representatives and commercial marketing
representatives; and
(C) include recommendations, if any, on how to
improve the procurement center representative program.
(d) <<NOTE: 15 USC 644 note.>> Electronic Procurement Center
Representative.--
(1) <<NOTE: Deadline.>> In general.--Not later than 1 year
after the date of enactment of this Act, the Administrator shall
implement a 3-year pilot electronic procurement center
representative program.
(2) Report.--Not later than 30 days after the pilot program
under paragraph (1) ends, the Comptroller General of the United
States shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report regarding the
pilot program.
SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended--
(1) by redesignating section 44 <<NOTE: 15 USC 631 note.>>
as section 45; and
(2) by inserting after section 43 the following:
``SEC. 44. <<NOTE: 15 USC 657q.>> CONSOLIDATION OF CONTRACT
REQUIREMENTS.
``(a) Definitions.--In this section--
``(1) the term `Chief Acquisition Officer' means the
employee of a Federal agency designated as the Chief Acquisition
Officer for the Federal agency under section 16(a) of the Office
of Federal Procurement Policy Act (41 U.S.C. 414(a));
``(2) the term `consolidation of contract requirements',
with respect to contract requirements of a Federal agency, means
a use of a solicitation to obtain offers for a single contract
or a multiple award contract to satisfy 2 or more requirements
of the Federal agency for goods or services that have been
provided to or performed for the Federal agency under 2 or more
separate contracts lower in cost than the total cost of the
contract for which the offers are solicited; and
``(3) the term `senior procurement executive' means an
official designated under section 16(c) of the Office of Federal
Procurement Policy Act (41 U.S.C. 414(c)) as the senior
procurement executive for a Federal agency.
``(b) Policy.--The head of each Federal agency shall ensure that the
decisions made by the Federal agency regarding consolidation of contract
requirements of the Federal agency are made with a view to providing
small business concerns with appropriate opportunities to participate as
prime contractors and subcontractors in the procurements of the Federal
agency.
``(c) Limitation on Use of Acquisition Strategies Involving
Consolidation.--
``(1) In general.--Subject to paragraph (4), the head of a
Federal agency may not carry out an acquisition strategy that
includes a consolidation of contract requirements of the Federal
agency with a total value of more than $2,000,000,
[[Page 124 STAT. 2539]]
unless the senior procurement executive or Chief Acquisition
Officer for the Federal agency, before carrying out the
acquisition strategy--
``(A) conducts market research;
``(B) identifies any alternative contracting
approaches that would involve a lesser degree of
consolidation of contract requirements;
``(C) <<NOTE: Determination.>> makes a written
determination that the consolidation of contract
requirements is necessary and justified;
``(D) identifies any negative impact by the
acquisition strategy on contracting with small business
concerns; and
``(E) <<NOTE: Certification.>> certifies to the
head of the Federal agency that steps will be taken to
include small business concerns in the acquisition
strategy.
``(2) Determination that consolidation is necessary and
justified.--
``(A) In general.--A senior procurement executive or
Chief Acquisition Officer may determine that an
acquisition strategy involving a consolidation of
contract requirements is necessary and justified for the
purposes of paragraph (1)(C) if the benefits of the
acquisition strategy substantially exceed the benefits
of each of the possible alternative contracting
approaches identified under paragraph (1)(B).
``(B) Savings in administrative or personnel
costs.--For purposes of subparagraph (A), savings in
administrative or personnel costs alone do not
constitute a sufficient justification for a
consolidation of contract requirements in a procurement
unless the expected total amount of the cost savings, as
determined by the senior procurement executive or Chief
Acquisition Officer, is expected to be substantial in
relation to the total cost of the procurement.
``(3) Benefits to be considered.--The benefits considered
for the purposes of paragraphs (1) and (2) may include cost and,
regardless of whether quantifiable in dollar amounts--
``(A) quality;
``(B) acquisition cycle;
``(C) terms and conditions; and
``(D) any other benefit.
``(4) Department of defense.--
``(A) <<NOTE: Compliance.>> In general.--The
Department of Defense and each military department shall
comply with this section until after the date described
in subparagraph (C).
``(B) Rule.--After the date described in
subparagraph (C), contracting by the Department of
Defense or a military department shall be conducted in
accordance with section 2382 of title 10, United States
Code.
``(C) Date.--The date described in this subparagraph
is the date on which the Administrator determines the
Department of Defense or a military department is in
compliance with the Government-wide contracting goals
under section 15.''.
(b) Technical and Conforming Amendment.--Section 2382(b)(1) of title
10, United States Code, is amended by striking ``An official'' and
inserting ``Subject to section 44(c)(4), an official''.
[[Page 124 STAT. 2540]]
SEC. 1314. <<NOTE: 15 USC 644 note.>> SMALL BUSINESS TEAMS PILOT
PROGRAM.
(a) Definitions.--In this section--
(1) the term ``Pilot Program'' means the Small Business
Teaming Pilot Program established under subsection (b); and
(2) the term ``eligible organization'' means a well-
established national organization for small business concerns
with the capacity to provide assistance to small business
concerns (which may be provided with the assistance of the
Administrator) relating to--
(A) customer relations and outreach;
(B) team relations and outreach; and
(C) performance measurement and quality assurance.
(b) Establishment.--The Administrator shall establish a Small
Business Teaming Pilot Program for teaming and joint ventures involving
small business concerns.
(c) Grants.--Under the Pilot Program, the Administrator may make
grants to eligible organizations to provide assistance and guidance to
teams of small business concerns seeking to compete for larger
procurement contracts.
(d) Contracting Opportunities.--The Administrator shall work with
eligible organizations receiving a grant under the Pilot Program to
recommend appropriate contracting opportunities for teams or joint
ventures of small business concerns.
(e) Report.--Not later than 1 year before the date on which the
authority to carry out the Pilot Program terminates under subsection
(f), the Administrator shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small Business
of the House of Representatives a report on the effectiveness of the
Pilot Program.
(f) Termination.--The authority to carry out the Pilot Program shall
terminate 5 years after the date of enactment of this Act.
(g) Authorization of Appropriations.--There are authorized to be
appropriated for grants under subsection (c) $5,000,000 for each of
fiscal years 2010 through 2015.
PART II--SUBCONTRACTING INTEGRITY
SEC. 1321. <<NOTE: Deadline. Regulations. 15 USC 637 note.>>
SUBCONTRACTING MISREPRESENTATIONS.
Not later than 1 year after the date of enactment of this Act, the
Administrator, in consultation with the Administrator for Federal
Procurement Policy, shall promulgate regulations relating to, and the
Federal Acquisition Regulatory Council established under section 25(a)
of the Office of Federal Procurement Policy Act (41 U.S.C. 421(a)) shall
amend the Federal Acquisition Regulation issued under section 25 of such
Act to establish a policy on, subcontracting compliance relating to
small business concerns, including assignment of compliance
responsibilities between contracting offices, small business offices,
and program offices and periodic oversight and review activities.
SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.
Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is
amended--
(1) in subparagraph (E), by striking ``and'' at the end;
(2) in subparagraph (F), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end, the following:
[[Page 124 STAT. 2541]]
``(G) a representation that the offeror or bidder
will--
``(i) make a good faith effort to acquire
articles, equipment, supplies, services, or
materials, or obtain the performance of
construction work from the small business concerns
used in preparing and submitting to the
contracting agency the bid or proposal, in the
same amount and quality used in preparing and
submitting the bid or proposal; and
``(ii) provide to the contracting officer a
written explanation if the offeror or bidder fails
to acquire articles, equipment, supplies,
services, or materials or obtain the performance
of construction work as described in clause
(i).''.
PART III--ACQUISITION PROCESS
SEC. 1331. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL
BUSINESSES.
Section 15 of the Small Business Act (15 U.S.C. 644), as amended by
this Act, is amended by adding at the end the following:
``(r) Multiple Award
Contracts. <<NOTE: Deadline. Regulations. Guidance.>> --Not later than 1
year after the date of enactment of this subsection, the Administrator
for Federal Procurement Policy and the Administrator, in consultation
with the Administrator of General Services, shall, by regulation,
establish guidance under which Federal agencies may, at their
discretion--
``(1) set aside part or parts of a multiple award contract
for small business concerns, including the subcategories of
small business concerns identified in subsection (g)(2);
``(2) notwithstanding the fair opportunity requirements
under section 2304c(b) of title 10, United States Code, and
section 303J(b) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253j(b)), set aside orders
placed against multiple award contracts for small business
concerns, including the subcategories of small business concerns
identified in subsection (g)(2); and
``(3) reserve 1 or more contract awards for small business
concerns under full and open multiple award procurements,
including the subcategories of small business concerns
identified in subsection (g)(2).''.
SEC. 1332. <<NOTE: Deadline. 41 USC 428 note.>> MICRO-PURCHASE
GUIDELINES.
Not later than 1 year after the date of enactment of this Act, the
Director of the Office of Management and Budget, in coordination with
the Administrator of General Services, shall issue guidelines regarding
the analysis of purchase card expenditures to identify opportunities for
achieving and accurately measuring fair participation of small business
concerns in purchases in an amount not in excess of the micro-purchase
threshold, as defined in section 32 of the Office of Federal Procurement
Policy Act (41 U.S.C. 428) (in this section referred to as ``micro-
purchases''), consistent with the national policy on small business
participation in Federal procurements set forth in sections 2(a) and
15(g) of the Small Business Act (15 U.S.C. 631(a) and 644(g)), and
dissemination of best practices for participation of small business
concerns in micro-purchases.
[[Page 124 STAT. 2542]]
SEC. 1333. AGENCY ACCOUNTABILITY.
Section 15(g)(2) of the Small Business Act (15 U.S.C. 644(g)(2)) is
amended--
(1) by inserting ``(A)'' after ``(2)'';
(2) by striking ``Goals established'' and inserting the
following:
``(B) Goals established'';
(3) by striking ``Whenever'' and inserting the following:
``(C) Whenever'';
(4) by striking ``For the purpose of'' and inserting the
following:
``(D) For the purpose of'';
(5) by striking ``The head of each Federal agency, in
attempting to attain such participation'' and inserting the
following:
``(E) The head of each Federal agency, in attempting to attain the
participation described in subparagraph (D)''.
(6) in subparagraph (E), as so designated--
(A) by striking ``(A) contracts'' and inserting
``(i) contracts''; and
(B) by striking ``(B) contracts'' and inserting
``(ii) contracts''; and
(7) by adding at the end the following:
``(F)(i) Each procurement employee or program manager described in
clause (ii) shall communicate to the subordinates of the procurement
employee or program manager the importance of achieving small business
goals.
``(ii) A procurement employee or program manager described in this
clause is a senior procurement executive, senior program manager, or
Director of Small and Disadvantaged Business Utilization of a Federal
agency having contracting authority.''.
SEC. 1334. PAYMENT OF SUBCONTRACTORS.
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended
by adding at the end the following:
``(12) Payment of Subcontractors.--
``(A) Definition.--In this paragraph, the term `covered
contract' means a contract relating to which a prime contractor
is required to develop a subcontracting plan under paragraph (4)
or (5).
``(B) Notice.--
``(i) In general.--A prime contractor for a covered
contract shall notify in writing the contracting officer
for the covered contract if the prime contractor pays a
reduced price to a subcontractor for goods and services
upon completion of the responsibilities of the
subcontractor or the payment to a subcontractor is more
than 90 days past due for goods or services provided for
the covered contract for which the Federal agency has
paid the prime contractor.
``(ii) Contents.--A prime contractor shall include
the reason for the reduction in a payment to or failure
to pay a subcontractor in any notice made under clause
(i).
``(C) Performance.--A contracting officer for a covered
contract shall consider the unjustified failure by a prime
contractor to make a full or timely payment to a subcontractor
in evaluating the performance of the prime contractor.
[[Page 124 STAT. 2543]]
``(D) <<NOTE: Records.>> Control of funds.--If the
contracting officer for a covered contract determines that a
prime contractor has a history of unjustified, untimely payments
to contractors, the contracting officer shall record the
identity of the contractor in accordance with the regulations
promulgated under subparagraph (E).
``(E) Regulations. <<NOTE: Deadline.>> --Not later than 1
year after the date of enactment of this paragraph, the Federal
Acquisition Regulatory Council established under section 25(a)
of the Office of Federal Procurement Policy Act (41 U.S.C.
421(a)) shall amend the Federal Acquisition Regulation issued
under section 25 of such Act to--
``(i) describe the circumstances under which a
contractor may be determined to have a history of
unjustified, untimely payments to subcontractors;
``(ii) <<NOTE: Records.>> establish a process for
contracting officers to record the identity of a
contractor described in clause (i); and
``(iii) <<NOTE: Public information.>> require the
identity of a contractor described in clause (i) to be
incorporated in, and made publicly available through,
the Federal Awardee Performance and Integrity
Information System, or any successor thereto.''.
SEC. 1335. REPEAL OF SMALL BUSINESS COMPETITIVENESS DEMONSTRATION
PROGRAM.
(a) In General.--The Business Opportunity Development Reform Act of
1988 (Public Law 100-656) is amended by striking title VII (15 U.S.C.
644 note).
(b) <<NOTE: 15 USC 644 note.>> Effective Date and Applicability.--
The amendment made by this section--
(1) shall take effect on the date of enactment of this Act;
and
(2) apply to the first full fiscal year after the date of
enactment of this Act.
PART IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY
SEC. 1341. POLICY AND PRESUMPTIONS.
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by
section 1311, is amended by adding at the end the following:
``(w) Presumption.--
``(1) In general.--In every contract, subcontract,
cooperative agreement, cooperative research and development
agreement, or grant which is set aside, reserved, or otherwise
classified as intended for award to small business concerns,
there shall be a presumption of loss to the United States based
on the total amount expended on the contract, subcontract,
cooperative agreement, cooperative research and development
agreement, or grant whenever it is established that a business
concern other than a small business concern willfully sought and
received the award by misrepresentation.
``(2) Deemed certifications.--The following actions shall be
deemed affirmative, willful, and intentional certifications of
small business size and status:
``(A) Submission of a bid or proposal for a Federal
grant, contract, subcontract, cooperative agreement, or
cooperative research and development agreement reserved,
[[Page 124 STAT. 2544]]
set aside, or otherwise classified as intended for award
to small business concerns.
``(B) Submission of a bid or proposal for a Federal
grant, contract, subcontract, cooperative agreement, or
cooperative research and development agreement which in
any way encourages a Federal agency to classify the bid
or proposal, if awarded, as an award to a small business
concern.
``(C) Registration on any Federal electronic
database for the purpose of being considered for award
of a Federal grant, contract, subcontract, cooperative
agreement, or cooperative research agreement, as a small
business concern.
``(3) Certification by signature of responsible official.--
``(A) In general.--Each solicitation, bid, or
application for a Federal contract, subcontract, or
grant shall contain a certification concerning the small
business size and status of a business concern seeking
the Federal contract, subcontract, or grant.
``(B) Content of certifications.--A certification
that a business concern qualifies as a small business
concern of the exact size and status claimed by the
business concern for purposes of bidding on a Federal
contract or subcontract, or applying for a Federal
grant, shall contain the signature of an authorized
official on the same page on which the certification is
contained.
``(4) Regulations.--The Administrator shall promulgate
regulations to provide adequate protections to individuals and
business concerns from liability under this subsection in cases
of unintentional errors, technical malfunctions, and other
similar situations.''.
SEC. 1342. ANNUAL CERTIFICATION.
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by
section 1341, is amended by adding at the end the following:
``(x) Annual Certification.--
``(1) In general.--Each business certified as a small
business concern under this Act shall annually certify its small
business size and, if appropriate, its small business status, by
means of a confirming entry on the Online Representations and
Certifications Application database of the Administration, or
any successor thereto.
``(2) <<NOTE: Deadline.>> Regulations.--Not later than 1
year after the date of enactment of this subsection, the
Administrator, in consultation with the Inspector General and
the Chief Counsel for Advocacy of the Administration, shall
promulgate regulations to ensure that--
``(A) no business concern continues to be certified
as a small business concern on the Online
Representations and Certifications Application database
of the Administration, or any successor thereto, without
fulfilling the requirements for annual certification
under this subsection; and
``(B) the requirements of this subsection are
implemented in a manner presenting the least possible
regulatory burden on small business concerns.''.
[[Page 124 STAT. 2545]]
SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCEMENT PERSONNEL.
(a) In General. <<NOTE: Deadline. 41 USC 433 note.>> --Not later
than 1 year after the date of enactment of this Act, the Federal
Acquisition Institute, in consultation with the Administrator for
Federal Procurement Policy, the Defense Acquisition University, and the
Administrator, shall develop courses for acquisition personnel
concerning proper classification of business concerns and small business
size and status for purposes of Federal contracts, subcontracts, grants,
cooperative agreements, and cooperative research and development
agreements.
(b) Policy on Prosecutions of Small Business Size and Status
Fraud.--Section 3 of the Small Business Act (15 U.S.C. 632), as amended
by section 1342, is amended by adding at the end the following:
``(y) Policy on Prosecutions of Small Business Size and Status
Fraud.-- <<NOTE: Deadline.>> Not later than 1 year after the date of
enactment of this subsection, the Administrator, in consultation with
the Attorney General, shall issue a Government-wide policy on
prosecution of small business size and status fraud, which shall direct
Federal agencies to appropriately publicize the policy.''.
SEC. <<NOTE: 15 USC 1632 note.>> 1344. UPDATED SIZE STANDARDS.
(a) Rolling Review.--
(1) In general.--The Administrator shall--
(A) <<NOTE: Time period.>> during the 18-month
period beginning on the date of enactment of this Act,
and during every 18-month period thereafter, conduct a
detailed review of not less than \1/3\ of the size
standards for small business concerns established under
section 3(a)(2) of the Small Business Act (15 U.S.C.
632(a)(2)), which shall include holding not less than 2
public forums located in different geographic regions of
the United States;
(B) after completing each review under subparagraph
(A) make appropriate adjustments to the size standards
established under section 3(a)(2) of the Small Business
Act to reflect market conditions;
(C) <<NOTE: Public information.>> make publicly
available--
(i) information regarding the factors
evaluated as part of each review conducted under
subparagraph (A); and
(ii) information regarding the criteria used
for any revised size standards promulgated under
subparagraph (B); and
(D) <<NOTE: Deadline. Public information.>> not
later than 30 days after the date on which the
Administrator completes each review under subparagraph
(A), submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives and make
publicly available a report regarding the review,
including why the Administrator--
(i) used the factors and criteria described in
subparagraph (C); and
(ii) adjusted or did not adjust each size
standard that was reviewed under the review.
(2) <<NOTE: Deadlines.>> Complete review of size
standards.--The Administrator shall ensure that each size
standard for small business concerns established under section
3(a)(2) of the Small Business
[[Page 124 STAT. 2546]]
Act (15 U.S.C. 632(a)(2)) is reviewed under paragraph (1) not
less frequently than once every 5 years.
(b) Rules.--Not later than 1 year after the date of enactment of
this Act, the Administrator shall promulgate rules for conducting the
reviews required under subsection (a).
SEC. 1345. STUDY AND REPORT ON THE MENTOR-PROTEGE PROGRAM.
(a) In General.--The Comptroller General of the United States shall
conduct a study of the mentor-protege program of the Administration for
small business concerns participating in programs under section 8(a) of
the Small Business Act (15 U.S.C. 637(a)), and other relationships and
strategic alliances pairing a larger business and a small business
concern partner to gain access to Federal Government contracts, to
determine whether the programs and relationships are effectively
supporting the goal of increasing the participation of small business
concerns in Government contracting.
(b) Matters To Be Studied.--The study conducted under this section
shall include--
(1) a review of a broad cross-section of industries; and
(2) an evaluation of--
(A) how each Federal agency carrying out a program
described in subsection (a) administers and monitors the
program;
(B) whether there are systems in place to ensure
that the mentor-protege relationship, or similar
affiliation, promotes real gain to the protege, and is
not just a mechanism to enable participants that would
not otherwise qualify under section 8(a) of the Small
Business Act (15 U.S.C. 637(a)) to receive contracts
under that section; and
(C) the degree to which protege businesses become
able to compete for Federal contracts without the
assistance of a mentor.
(c) Report to Congress.--Not later than 180 days after the date of
enactment of this Act, the Comptroller General shall submit to the
Committee on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives a report on
the results of the study conducted under this section.
SEC. 1346. CONTRACTING GOALS REPORTS.
Section 15(h)(2) of the Small Business Act (15 U.S.C. 644(h)(2)) is
amended by striking ``submit them'' and all that follows through ``the
following:'' and inserting ``submit to the President and the Committee
on Small Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives the compilation and
analysis, which shall include the following:''.
SEC. 1347. SMALL BUSINESS CONTRACTING PARITY.
(a) <<NOTE: 15 USC 637 note.>> Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator thereof,
respectively; and
(2) the terms ``HUBZone small business concern'', ``small
business concern'', ``small business concern owned and
controlled by service-disabled veterans'', and ``small business
concern owned and controlled by women'' have the same meanings
as in section 3 of the Small Business Act (15 U.S.C. 632).
[[Page 124 STAT. 2547]]
(b) Contracting Improvements.--
(1) Contracting opportunities.--Section 31(b)(2)(B) of the
Small Business Act (15 U.S.C. 657a(b)(2)(B)) is amended by
striking ``shall'' and inserting ``may''.
(2) Contracting goals.--Section 15(g)(1) of the Small
Business Act (15 U.S.C. 644(g)(1)) is amended in the fourth
sentence by inserting ``and subcontract'' after ``not less than
3 percent of the total value of all prime contract''.
(3) Mentor-protege programs.--The Administrator may
establish mentor-protege programs for small business concerns
owned and controlled by service-disabled veterans, small
business concerns owned and controlled by women, and HUBZone
small business concerns modeled on the mentor-protege program of
the Administration for small business concerns participating in
programs under section 8(a) of the Small Business Act (15 U.S.C.
637(a)).
(c) Small Business Contracting Programs Parity.--Section 31(b)(2) of
the Small Business Act (15 U.S.C. 657a(b)(2)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``Notwithstanding any other provision of law--'';
(2) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``a contracting'' and inserting ``Sole source
contracts.--A contracting''; and
(B) in clause (iii), by striking the semicolon at
the end and inserting a period;
(3) in subparagraph (B)--
(A) by striking ``a contract opportunity shall'' and
inserting ``Restricted competition.--A contract
opportunity may''; and
(B) by striking ``; and'' and inserting a period;
and
(4) in subparagraph (C), by striking ``not later'' and
inserting ``Appeals.--Not later''.
Subtitle D--Small Business Management and Counseling Assistance
SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSINESS PROGRAMS.
(a) Microloan Program.--Section 7(m) of the Small Business Act (15
U.S.C. 636(m)) is amended--
(1) in paragraph (3)(B)--
(A) by striking ``As a condition'' and inserting the
following:
``(i) In general.--Subject to clause (ii), as
a condition'';
(B) by striking ``the Administration'' and inserting
``the Administrator''; and
(C) by adding at the end the following:
``(ii) Waiver of non-federal share.--
``(I) In general.--Upon request by
an intermediary, and in accordance with
this clause, the Administrator may
waive, in whole or in part, the
requirement to obtain non-Federal funds
under clause (i) for a fiscal year. The
Administrator may
[[Page 124 STAT. 2548]]
waive the requirement to obtain non-
Federal funds under this clause for
successive fiscal years.
``(II) Considerations.--In
determining whether to waive the
requirement to obtain non-Federal funds
under this clause, the Administrator
shall consider--
``(aa) the economic
conditions affecting the
intermediary;
``(bb) the impact a waiver
under this clause would have on
the credibility of the microloan
program under this subsection;
``(cc) the demonstrated
ability of the intermediary to
raise non-Federal funds; and
``(dd) the performance of
the intermediary.
``(III) Limitations.--
``(aa) In general.--The
Administrator may not waive the
requirement to obtain non-
Federal funds under this clause
if granting the waiver would
undermine the credibility of the
microloan program under this
subsection.
``(bb) Sunset.--The
Administrator may not waive the
requirement to obtain non-
Federal funds under this clause
for fiscal year 2013 or any
fiscal year thereafter.''; and
(2) in paragraph (4)(B)--
(A) by striking ``As a condition'' and all that
follows through ``the Administration shall require'' and
inserting the following:
``(i) In general.--Subject to clause (ii), as
a condition of a grant made under subparagraph
(A), the Administrator shall require''; and
(B) by adding at the end the following:
``(ii) Waiver of non-federal share.--
``(I) In general.--Upon request by
an intermediary, and in accordance with
this clause, the Administrator may
waive, in whole or in part, the
requirement to obtain non-Federal funds
under clause (i) for a fiscal year. The
Administrator may waive the requirement
to obtain non-Federal funds under this
clause for successive fiscal years.
``(II) Considerations.--In
determining whether to waive the
requirement to obtain non-Federal funds
under this clause, the Administrator
shall consider--
``(aa) the economic
conditions affecting the
intermediary;
``(bb) the impact a waiver
under this clause would have on
the credibility of the microloan
program under this subsection;
``(cc) the demonstrated
ability of the intermediary to
raise non-Federal funds; and
``(dd) the performance of
the intermediary.
``(III) Limitations.--
``(aa) In general.--The
Administrator may not waive the
requirement to obtain non-
Federal funds under this clause
if granting
[[Page 124 STAT. 2549]]
the waiver would undermine the
credibility of the microloan
program under this subsection.
``(bb) Sunset.--The
Administrator may not waive the
requirement to obtain non-
Federal funds under this clause
for fiscal year 2013 or any
fiscal year thereafter.''.
(b) Women's Business Center Program.--Section 29(c) of the Small
Business Act (15 U.S.C. 656(c)) is amended--
(1) in paragraph (1), by striking ``As a condition'' and
inserting ``Subject to paragraph (5), as a condition''; and
(2) by adding at the end the following:
``(5) Waiver of non-federal share relating to technical
assistance and counseling.--
``(A) In general.--Upon request by a recipient
organization, and in accordance with this paragraph, the
Administrator may waive, in whole or in part, the
requirement to obtain non-Federal funds under this
subsection for the technical assistance and counseling
activities of the recipient organization carried out
using financial assistance under this section for a
fiscal year. The Administrator may waive the requirement
to obtain non-Federal funds under this paragraph for
successive fiscal years.
``(B) Considerations.--In determining whether to
waive the requirement to obtain non-Federal funds under
this paragraph, the Administrator shall consider--
``(i) the economic conditions affecting the
recipient organization;
``(ii) the impact a waiver under this clause
would have on the credibility of the women's
business center program under this section;
``(iii) the demonstrated ability of the
recipient organization to raise non-Federal funds;
and
``(iv) the performance of the recipient
organization.
``(C) Limitations.--
``(i) In general.--The Administrator may not
waive the requirement to obtain non-Federal funds
under this paragraph if granting the waiver would
undermine the credibility of the women's business
center program under this section.
``(ii) Sunset.--The Administrator may not
waive the requirement to obtain non-Federal funds
under this paragraph for fiscal year 2013 or any
fiscal year thereafter.''.
(c) Prospective Repeals. <<NOTE: Effective date. 15 USC 636
note.>> --Effective October 1, 2012, the Small Business Act (15 U.S.C.
631 et seq.) is amended--
(1) in section 7(m) (15 U.S.C. 636(m))--
(A) in paragraph (3)(B)--
(i) by striking ``Intermediary contribution.--
'' and all that follows through ``Subject to
clause (ii), as'' and inserting ``Intermediary
contribution.--As''; and
(ii) by striking clause (ii); and
(B) in paragraph (4)(B)--
(i) by striking ``Contribution.--'' and all
that follows through ``Subject to clause (ii),
as'' and inserting ``Contribution.--As''; and
[[Page 124 STAT. 2550]]
(ii) by striking clause (ii); and
(2) in section 29(c) (15 U.S.C. 656(c))--
(A) in paragraph (1), by striking ``Subject to
paragraph (5), as'' and inserting ``As''; and
(B) by striking paragraph (5).
SEC. 1402. <<NOTE: 15 USC 648b.>> GRANTS FOR SBDCS.
(a) In General.--The Administrator may make grants to small business
development centers under section 21 of the Small Business Act (15
U.S.C. 648) to provide targeted technical assistance to small business
concerns seeking access to capital or credit, Federal procurement
opportunities, energy efficiency audits to reduce energy bills,
opportunities to export products or provide services to foreign
customers, adopting, making innovations in, and using broadband
technologies, or other assistance.
(b) Allocation.--
(1) In general.--Subject to paragraph (2), and
notwithstanding the requirements of section 21(a)(4)(C)(iii) of
the Small Business Act (15 U.S.C. 648(a)(4)(C)(iii)), the amount
appropriated to carry out this section shall be allocated under
the formula under section 21(a)(4)(C)(i) of that Act.
(2) Minimum funding.--The amount made available under this
section to each State shall be not less than $325,000.
(3) Types of uses.--Of the total amount of the grants
awarded by the Administrator under this section--
(A) not less than 80 percent shall be used for
counseling of small business concerns; and
(B) not more than 20 percent may be used for classes
or seminars.
(c) No Non-Federal Share Required.--Notwithstanding section
21(a)(4)(A) of the Small Business Act (15 U.S.C. 648(a)(4)(A)), the
recipient of a grant made under this section shall not be required to
provide non-Federal matching funds.
(d) Distribution. <<NOTE: Deadline.>> --Not later than 30 days after
the date on which amounts are appropriated to carry out this section,
the Administrator shall disburse the total amount appropriated.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator $50,000,000 to carry out this section.
Subtitle E--Disaster Loan Improvement
SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSISTANCE.
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by
section 1343, is amended by adding at the end the following:
``(z) Aquaculture Business Disaster Assistance.--Subject to section
18(a) and notwithstanding section 18(b)(1), the Administrator may
provide disaster assistance under section 7(b)(2) to aquaculture
enterprises that are small businesses.''.
[[Page 124 STAT. 2551]]
Subtitle F--Small Business Regulatory Relief
SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DETAILED ANALYSES.
Section 604(a) of title 5, United States Code, is amended--
(1) in paragraph (1), by striking ``succinct'';
(2) in paragraph (2), by striking ``summary'' each place it
appears and inserting ``statement'';
(3) by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively; and
(4) by inserting after paragraph (2) the following:
``(3) the response of the agency to any comments filed by
the Chief Counsel for Advocacy of the Small Business
Administration in response to the proposed rule, and a detailed
statement of any change made to the proposed rule in the final
rule as a result of the comments;''.
SEC. 1602. OFFICE OF ADVOCACY.
(a) In General.--Section 203 of Public Law 94-305 (15 U.S.C. 634c)
is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(6) carry out the responsibilities of the Office of
Advocacy under chapter 6 of title 5, United States Code.''.
(b) Budgetary Line Item and Authorization of Appropriations.--Title
II of Public Law 94-305 (15 U.S.C. 634a et seq.) is amended by striking
section 207 and inserting the following:
``SEC. 207. <<NOTE: 15 USC 634g.>> BUDGETARY LINE ITEM AND
AUTHORIZATION OF APPROPRIATIONS.
``(a) Appropriation Requests.--Each budget of the United States
Government submitted by the President under section 1105 of title 31,
United States Code, shall include a separate statement of the amount of
appropriations requested for the Office of Advocacy of the Small
Business Administration, which shall be designated in a separate account
in the General Fund of the Treasury.
``(b) Administrative Operations.--The Administrator of the Small
Business Administration shall provide the Office of Advocacy with
appropriate and adequate office space at central and field office
locations, together with such equipment, operating budget, and
communications facilities and services as may be necessary, and shall
provide necessary maintenance services for such offices and the
equipment and facilities located in such offices.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this title. Any
amount appropriated under this subsection shall remain available,
without fiscal year limitation, until expended.''.
[[Page 124 STAT. 2552]]
Subtitle G--Appropriations Provisions
SEC. 1701. SALARIES AND EXPENSES.
(a) Appropriation.--There is appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2010, $150,000,000, to remain available until September
30, 2012, for an additional amount for the appropriations account
appropriated under the heading ``salaries and expenses'' under the
heading ``Small Business Administration'', of which--
(1) $50,000,000 is for grants to small business development
centers authorized under section 1402;
(2) $1,000,000 is for the costs of administering grants
authorized under section 1402;
(3) $30,000,000 is for grants to States for fiscal year 2011
to carry out export programs that assist small business concerns
authorized under section 1207;
(4) $30,000,000 is for grants to States for fiscal year 2012
to carry out export programs that assist small business concerns
authorized under section 1207;
(5) $2,500,000 is for the costs of administering grants
authorized under section 1207;
(6) $5,000,000 is for grants for fiscal year 2011 under the
Small Business Teaming Pilot Program under section 1314; and
(7) $5,000,000 is for grants for fiscal year 2012 under the
Small Business Teaming Pilot Program under section 1314.
(b) Report.--Not later than 60 days after the date of enactment of
this Act, the Administrator shall submit to the Committee on
Appropriations of the Senate and the Committee on Appropriations of the
House of Representatives a detailed expenditure plan for using the funds
provided under subsection (a).
SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT.
(a) In General.--There is appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2010, for an additional amount for the appropriations
account appropriated under the heading ``business loans program
account'' under the heading ``Small Business Administration''--
(1) $8,000,000, to remain available until September 30,
2012, for fiscal year 2011 for the cost of direct loans
authorized under section 7(l) of the Small Business Act, as
added by section 1131 of this title, including the cost of
modifying the loans;
(2) $8,000,000, to remain available until September 30,
2012, for fiscal year 2012 for the cost of direct loans
authorized under section 7(l) of the Small Business Act, as
added by section 1131 of this title, including the cost of
modifying the loans;
(3) $6,500,000, to remain available until September 30,
2012, for administrative expenses to carry out the direct loan
program authorized under section 7(l) of the Small Business Act,
as added by section 1131 of this title, which may be transferred
to and merged with the appropriations account appropriated under
the heading ``salaries and expenses'' under the heading ``Small
Business Administration''; and
[[Page 124 STAT. 2553]]
(4) $15,000,000, to remain available until September 30,
2011, for the cost of guaranteed loans as authorized under
section 7(a) of the Small Business Act, including the cost of
modifying the loans.
(b) Definition.--In this section, the term ``cost'' has the meaning
given that term in section 502 of the Congressional Budget Act of 1974.
SEC. 1703. <<NOTE: Appropriation authorization.>> COMMUNITY
DEVELOPMENT FINANCIAL INSTITUTIONS FUND
PROGRAM ACCOUNT.
There is appropriated, out of any money in the Treasury not
otherwise appropriated, for the fiscal year ending September 30, 2010,
for an additional amount for the appropriations account appropriated
under the heading ``community development financial institutions fund
program account'' under the heading ``DEPARTMENT OF THE TREASURY'',
$13,500,000, to remain available until September 30, 2012, for the costs
of administering guarantees for bonds and notes as authorized under
section 114A of the Riegle Community Development and Regulatory
Improvement Act of 1994, as added by section 1134 of this Act.
SEC. 1704. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT EXTENSIONS.
(a) Extension of Programs.--
(1) In general.--There is appropriated, out of any funds in
the Treasury not otherwise appropriated, for an additional
amount for ``Small Business Administration--Business Loans
Program Account'', $505,000,000, to remain available through
December 31, 2010, for the cost of--
(A) fee reductions and eliminations under section
501 of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat.
151), as amended by this Act; and
(B) loan guarantees under section 502 of division A
of the American Recovery and Reinvestment Act of 2009
(Public Law 111-5; 123 Stat. 152), as amended by this
Act.
(2) Cost.--For purposes of this subsection, the term
``cost'' has the same meaning as in section 502 of the
Congressional Budget Act of 1974 (2 U.S.C. 661a).
(b) Administrative Expenses.--There is appropriated for an
additional amount, out of any funds in the Treasury not otherwise
appropriated, for administrative expenses to carry out sections 501 and
502 of division A of the American Recovery and Reinvestment Act of 2009
(Public Law 111-5), $5,000,000, to remain available until expended,
which may be transferred and merged with the appropriation for ``Small
Business Administration--Salaries and Expenses''.
TITLE II <<NOTE: Creating Small Business Jobs Act of 2010.>> --TAX
PROVISIONS
SEC. 2001. <<NOTE: 26 USC 1 note.>> SHORT TITLE.
This title may be cited as the ``Creating Small Business Jobs Act of
2010''.
[[Page 124 STAT. 2554]]
Subtitle A--Small Business Relief
PART I--PROVIDING ACCESS TO CAPITAL
SEC. 2011. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN
SMALL BUSINESS STOCK.
(a) In General.--Subsection (a) of section 1202 of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 1202.>> is amended by adding at the
end the following new paragraph:
``(4) 100 percent exclusion for stock acquired during
certain periods in 2010.--In the case of qualified small
business stock acquired after the date of the enactment of the
Creating Small Business Jobs Act of 2010 and before January 1,
2011--
``(A) <<NOTE: Applicability.>> paragraph (1) shall
be applied by substituting `100 percent' for `50
percent',
``(B) paragraph (2) shall not apply, and
``(C) paragraph (7) of section 57(a) shall not
apply.''.
(b) Conforming Amendment.--Paragraph (3) of section 1202(a) of the
Internal Revenue Code of 1986 is amended--
(1) by inserting ``certain periods in'' before ``2010'' in
the heading, and
(2) by striking ``before January 1, 2011'' and inserting
``on or before the date of the enactment of the Creating Small
Business Jobs Act of 2010''.
(c) <<NOTE: 26 USC 1202 note.>> Effective Date.--The amendments
made by this section shall apply to stock acquired after the date of the
enactment of this Act.
SEC. 2012. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL BUSINESSES
FOR 2010 CARRIED BACK 5 YEARS.
(a) In General.--Section 39(a) of the Internal Revenue Code of
1986 <<NOTE: 26 USC 39.>> is amended by adding at the end the following
new paragraph:
``(4) 5-year carryback for eligible small business
credits.--
``(A) In general.--Notwithstanding subsection (d),
in the case of eligible small business credits
determined in the first taxable year of the taxpayer
beginning in 2010--
``(i) <<NOTE: Applicability.>> paragraph (1)
shall be applied by substituting `each of the 5
taxable years' for `the taxable year' in
subparagraph (A) thereof, and
``(ii) <<NOTE: Applicability.>> paragraph (2)
shall be applied--
``(I) by substituting `25 taxable
years' for `21 taxable years' in
subparagraph (A) thereof, and
``(II) by substituting `24 taxable
years' for `20 taxable years' in
subparagraph (B) thereof.
``(B) Eligible small business credits.--For purposes
of this subsection, the term `eligible small business
credits' has the meaning given such term by section
38(c)(5)(B).''.
(b) Conforming Amendment.--Section 39(a)(3)(A) of the Internal
Revenue Code of 1986 is amended by inserting ``or the eligible small
business credits'' after ``credit)''.
(c) <<NOTE: 26 USC 39 note.>> Effective Date.--The amendments made
by this section shall apply to credits determined in taxable years
beginning after December 31, 2009.
[[Page 124 STAT. 2555]]
SEC. 2013. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL BUSINESSES
IN 2010 NOT SUBJECT TO ALTERNATIVE
MINIMUM TAX.
(a) In General.--Section 38(c) of the Internal Revenue Code of
1986 <<NOTE: 26 USC 38.>> is amended by redesignating paragraph (5) as
paragraph (6) and by inserting after paragraph (4) the following new
paragraph:
``(5) Special rules for eligible small business credits in
2010.--
``(A) In general.--In the case of eligible small
business credits determined in taxable years beginning
in 2010--
``(i) <<NOTE: Applicability.>> this section
and section 39 shall be applied separately with
respect to such credits, and
``(ii) in applying paragraph (1) to such
credits--
``(I) the tentative minimum tax
shall be treated as being zero, and
``(II) the limitation under
paragraph (1) (as modified by subclause
(I)) shall be reduced by the credit
allowed under subsection (a) for the
taxable year (other than the eligible
small business credits).
``(B) <<NOTE: Definition.>> Eligible small business
credits.--For purposes of this subsection, the term
`eligible small business credits' means the sum of the
credits listed in subsection (b) which are determined
for the taxable year with respect to an eligible small
business. Such credits shall not be taken into account
under paragraph (2), (3), or (4).
``(C) <<NOTE: Definition.>> Eligible small
business.--For purposes of this subsection, the term
`eligible small business' means, with respect to any
taxable year--
``(i) a corporation the stock of which is not
publicly traded,
``(ii) a partnership, or
``(iii) a sole proprietorship,
if the average annual gross receipts of such
corporation, partnership, or sole proprietorship for the
3-taxable-year period preceding such taxable year does
not exceed $50,000,000. <<NOTE: Applicability.>> For
purposes of applying the test under the preceding
sentence, rules similar to the rules of paragraphs (2)
and (3) of section 448(c) shall apply.
``(D) Treatment of partners and s corporation
shareholders.--Credits determined with respect to a
partnership or S corporation shall not be treated as
eligible small business credits by any partner or
shareholder unless such partner or shareholder meets the
gross receipts test under subparagraph (C) for the
taxable year in which such credits are treated as
current year business credits.''.
(b) Technical Amendment.--Section 55(e)(5) of the Internal Revenue
Code of 1986 <<NOTE: 26 USC 55.>> is amended by striking
``38(c)(3)(B)'' and inserting ``38(c)(6)(B)''.
(c) Conforming Amendments.--
(1) Subclause (II) of section 38(c)(2)(A)(ii) of the
Internal Revenue Code of 1986 is amended by inserting ``the
eligible small business credits,'' after ``the New York Liberty
Zone business employee credit,''.
[[Page 124 STAT. 2556]]
(2) Subclause (II) of section 38(c)(3)(A)(ii) of
such <<NOTE: 26 USC 38.>> Code is amended by inserting ``, the
eligible small business credits,'' after ``the New York Liberty
Zone business employee credit''.
(3) Subclause (II) of section 38(c)(4)(A)(ii) of such Code
is amended by inserting ``the eligible small business credits
and'' before ``the specified credits''.
(d) <<NOTE: 26 USC 38 note.>> Effective Date.--The amendments made
by subsection (a) shall apply to credits determined in taxable years
beginning after December 31, 2009, and to carrybacks of such credits.
SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN
GAINS TAX.
(a) In General.--Subparagraph (B) of section 1374(d)(7) of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 1374.>> is amended to read
as follows:
``(B) Special rules for 2009, 2010, and 2011.--No
tax shall be imposed on the net recognized built-in gain
of an S corporation--
``(i) in the case of any taxable year
beginning in 2009 or 2010, if the 7th taxable year
in the recognition period preceded such taxable
year, or
``(ii) in the case of any taxable year
beginning in 2011, if the 5th year in the
recognition period preceded such taxable year.
The <<NOTE: Applicability.>> preceding sentence shall
be applied separately with respect to any asset to which
paragraph (8) applies.''.
(b) <<NOTE: 26 USC 1374.>> Effective Date.--The amendment made by
this section shall apply to taxable years beginning after December 31,
2010.
PART II--ENCOURAGING INVESTMENT
SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011;
CERTAIN REAL PROPERTY TREATED AS SECTION
179 PROPERTY.
(a) Increased Limitations.--Subsection (b) of section 179 of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 179.>> is amended--
(1) by striking ``shall not exceed'' and all that follows in
paragraph (1) and inserting ``shall not exceed--
``(A) $250,000 in the case of taxable years
beginning after 2007 and before 2010,
``(B) $500,000 in the case of taxable years
beginning in 2010 or 2011, and
``(C) $25,000 in the case of taxable years beginning
after 2011.'', and
(2) by striking ``exceeds'' and all that follows in
paragraph (2) and inserting ``exceeds--
``(A) $800,000 in the case of taxable years
beginning after 2007 and before 2010,
``(B) $2,000,000 in the case of taxable years
beginning in 2010 or 2011, and
``(C) $200,000 in the case of taxable years
beginning after 2011.''.
(b) Inclusion of Certain Real Property.--Section 179 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subsection:
``(f) Special Rules for Qualified Real Property.--
``(1) In general.--If a taxpayer elects the application of
this subsection for any taxable year beginning in 2010 or 2011,
[[Page 124 STAT. 2557]]
the term `section 179 property' shall include any qualified real
property which is--
``(A) of a character subject to an allowance for
depreciation,
``(B) acquired by purchase for use in the active
conduct of a trade or business, and
``(C) not described in the last sentence of
subsection (d)(1).
``(2) Qualified real property.--For purposes of this
subsection, the term `qualified real property' means--
``(A) qualified leasehold improvement property
described in section 168(e)(6),
``(B) qualified restaurant property described in
section 168(e)(7) (without regard to the dates specified
in subparagraph (A)(i) thereof), and
``(C) qualified retail improvement property
described in section 168(e)(8) (without regard to
subparagraph (E) thereof).
``(3) Limitation.--For purposes of applying the limitation
under subsection (b)(1)(B), not more than $250,000 of the
aggregate cost which is taken into account under subsection (a)
for any taxable year may be attributable to qualified real
property.
``(4) Carryover limitation.--
``(A) In general.--Notwithstanding subsection
(b)(3)(B), no amount attributable to qualified real
property may be carried over to a taxable year beginning
after 2011.
``(B) <<NOTE: Applicability.>> Treatment of
disallowed amounts.--Except as provided in subparagraph
(C), to the extent that any amount is not allowed to be
carried over to a taxable year beginning after 2011 by
reason of subparagraph (A), this title shall be applied
as if no election under this section had been made with
respect to such amount.
``(C) Amounts carried over from 2010.--If
subparagraph (B) applies to any amount (or portion of an
amount) which is carried over from a taxable year other
than the taxpayer's last taxable year beginning in 2011,
such amount (or portion of an amount) shall be treated
for purposes of this title as attributable to property
placed in service on the first day of the taxpayer's
last taxable year beginning in 2011.
``(D) Allocation of amounts.--For purposes of
applying this paragraph and subsection (b)(3)(B) to any
taxable year, the amount which is disallowed under
subsection (b)(3)(A) for such taxable year which is
attributed to qualified real property shall be the
amount which bears the same ratio to the total amount so
disallowed as--
``(i) the aggregate amount attributable to
qualified real property placed in service during
such taxable year, increased by the portion of any
amount carried over to such taxable year from a
prior taxable year which is attributable to such
property, bears to
``(ii) the total amount of section 179
property placed in service during such taxable
year, increased by the aggregate amount carried
over to such taxable year from any prior taxable
year.
[[Page 124 STAT. 2558]]
For purposes of the preceding sentence, only section 179
property with respect to which an election was made
under subsection (c)(1) (determined without regard to
subparagraph (B) of this paragraph) shall be taken into
account.''.
(c) Revocability of Election.--Paragraph (2) of section 179(c) of
the Internal Revenue Code of 1986 <<NOTE: 26 USC 179.>> is amended by
striking ``2011'' and inserting ``2012''.
(d) Computer Software Treated as 179 Property.--Clause (ii) of
section 179(d)(1)(A) is amended by striking ``2011'' and inserting
``2012''.
(e) <<NOTE: Applicability. 26 USC 179 note.>> Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property placed
in service after December 31, 2009, in taxable years beginning
after such date.
(2) Extensions.--The amendments made by subsections (c) and
(d) shall apply to taxable years beginning after December 31,
2010.
SEC. 2022. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 PERCENT OF
THE BASIS OF CERTAIN QUALIFIED PROPERTY.
(a) In General.--Paragraph (2) of section 168(k) of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 168.>> is amended--
(1) by striking ``January 1, 2011'' in subparagraph (A)(iv)
and inserting ``January 1, 2012'', and
(2) by striking ``January 1, 2010'' each place it appears
and inserting ``January 1, 2011''.
(b) Conforming Amendments.--
(1) The heading for subsection (k) of section 168 of the
Internal Revenue Code of 1986 is amended by striking ``January
1, 2010'' and inserting ``January 1, 2011''.
(2) The heading for clause (ii) of section 168(k)(2)(B) of
such Code is amended by striking ``Pre-january 1, 2010'' and
inserting ``Pre-january 1, 2011''.
(3) Subparagraph (D) of section 168(k)(4) of such Code is
amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting a
comma, and by adding at the end the following new clauses:
``(iv) `January 1, 2011' shall be substituted
for `January 1, 2012' in subparagraph (A)(iv)
thereof, and
``(v) `January 1, 2010' shall be substituted
for `January 1, 2011' each place it appears in
subparagraph (A) thereof.''.
(4) Subparagraph (B) of section 168(l)(5) of such Code is
amended by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(5) Subparagraph (C) of section 168(n)(2) of such Code is
amended by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(6) Subparagraph (D) of section 1400L(b)(2) of
such <<NOTE: 26 USC 1400L.>> Code is amended by striking
``January 1, 2010'' and inserting ``January 1, 2011''.
(7) Subparagraph (B) of section 1400N(d)(3) of
such <<NOTE: 26 USC 1400N.>> Code is amended by striking
``January 1, 2010'' and inserting ``January 1, 2011''.
[[Page 124 STAT. 2559]]
(c) <<NOTE: 26 USC 168 note.>> Effective Date.--The amendments made
by this section shall apply to property placed in service after December
31, 2009, in taxable years ending after such date.
SEC. 2023. SPECIAL RULE FOR LONG-TERM CONTRACT ACCOUNTING.
(a) In General.--Section 460(c) of the Internal Revenue Code of
1986 <<NOTE: 26 USC 460.>> is amended by adding at the end the
following new paragraph:
``(6) Special rule for allocation of bonus depreciation with
respect to certain property.--
``(A) In general.--Solely for purposes of
determining the percentage of completion under
subsection (b)(1)(A), the cost of qualified property
shall be taken into account as a cost allocated to the
contract as if subsection (k) of section 168 had not
been enacted.
``(B) <<NOTE: Definition.>> Qualified property.--
For purposes of this paragraph, the term `qualified
property' means property described in section 168(k)(2)
which--
``(i) has a recovery period of 7 years or
less, and
``(ii) is placed in service after December 31,
2009, and before January 1, 2011 (January 1, 2012,
in the case of property described in section
168(k)(2)(B)).''.
(b) <<NOTE: 26 USC 460 note.>> Effective Date.--The amendment made
by this section shall apply to property placed in service after December
31, 2009.
PART III--PROMOTING ENTREPRENEURSHIP
SEC. 2031. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-UP
EXPENDITURES IN 2010.
(a) Start-up Expenditures.--Subsection (b) of section 195 of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 195.>> is amended by
adding at the end the following new paragraph:
``(3) <<NOTE: Applicability.>> Special rule for taxable
years beginning in 2010.--In the case of a taxable year
beginning in 2010, paragraph (1)(A)(ii) shall be applied--
``(A) by substituting `$10,000' for `$5,000', and
``(B) by substituting `$60,000' for `$50,000'.''.
(b) <<NOTE: 26 USC 195 note.>> Effective Date.--The amendment made
by this section shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2009.
SEC. 2032. AUTHORIZATION OF APPROPRIATIONS FOR THE UNITED STATES
TRADE REPRESENTATIVE TO DEVELOP MARKET
ACCESS OPPORTUNITIES FOR UNITED STATES
SMALL- AND MEDIUM-SIZED BUSINESSES AND
TO ENFORCE TRADE AGREEMENTS.
(a) In General.--There are authorized to be appropriated to the
Office of the United States Trade Representative $5,230,000, to remain
available until expended, for--
(1) analyzing and developing opportunities for businesses in
the United States to access the markets of foreign countries;
and
(2) enforcing trade agreements to which the United States is
a party.
(b) Requirements.--In obligating and expending the funds authorized
to be appropriated under subsection (a), the United States Trade
Representative shall--
[[Page 124 STAT. 2560]]
(1) give preference to those initiatives that the United
States Trade Representative determines will create or sustain
the greatest number of jobs in the United States or result in
the greatest benefit to the economy of the United States; and
(2) consider the needs of small- and medium-sized businesses
in the United States with respect to--
(A) accessing the markets of foreign countries; and
(B) the enforcement of trade agreements to which the
United States is a party.
PART IV--PROMOTING SMALL BUSINESS FAIRNESS
SEC. 2041. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE
REPORTABLE TRANSACTIONS BASED ON
RESULTING TAX BENEFITS.
(a) In General.--Subsection (b) of section 6707A of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 6707A.>> is amended to read as
follows:
``(b) Amount of Penalty.--
``(1) In general.--Except as otherwise provided in this
subsection, the amount of the penalty under subsection (a) with
respect to any reportable transaction shall be 75 percent of the
decrease in tax shown on the return as a result of such
transaction (or which would have resulted from such transaction
if such transaction were respected for Federal tax purposes).
``(2) Maximum penalty.--The amount of the penalty under
subsection (a) with respect to any reportable transaction shall
not exceed--
``(A) in the case of a listed transaction, $200,000
($100,000 in the case of a natural person), or
``(B) in the case of any other reportable
transaction, $50,000 ($10,000 in the case of a natural
person).
``(3) Minimum penalty.--The amount of the penalty under
subsection (a) with respect to any transaction shall not be less
than $10,000 ($5,000 in the case of a natural person).''.
(b) <<NOTE: 26 USC 6707A note.>> Effective Date.--The amendment
made by this section shall apply to penalties assessed after December
31, 2006.
SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN COMPUTING SELF-
EMPLOYMENT TAXES IN 2010.
(a) In General.--Paragraph (4) of section 162(l) of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 162.>> is amended by inserting
``for taxable years beginning before January 1, 2010, or after December
31, 2010'' before the period.
(b) <<NOTE: 26 USC 162 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2009.
SEC. 2043. REMOVAL OF CELLULAR TELEPHONES AND SIMILAR
TELECOMMUNICATIONS EQUIPMENT FROM LISTED
PROPERTY.
(a) In General.--Subparagraph (A) of section 280F(d)(4) of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 280F.>> (defining listed
property) is amended by adding `` `and' '' at the end of clause (iv), by
striking clause (v), and by redesignating clause (vi) as clause (v).
(b) <<NOTE: 26 USC 280F note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2009.
[[Page 124 STAT. 2561]]
Subtitle B--Revenue Provisions
PART I--REDUCING THE TAX GAP
SEC. 2101. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE
PAYMENTS.
(a) In General.--Section 6041 of the Internal Revenue Code of 1986,
as amended by section 9006 of the Patient Protection and Affordable Care
Act, <<NOTE: Ante, p. 855.>> is amended by redesignating subsections
(h) and (i) as subsections (i) and (j), respectively, and by inserting
after subsection (g) the following new subsection:
``(h) Treatment of Rental Property Expense Payments.--
``(1) In general.--Solely for purposes of subsection (a) and
except as provided in paragraph (2), a person receiving rental
income from real estate shall be considered to be engaged in a
trade or business of renting property.
``(2) <<NOTE: Regulations.>> Exceptions.--Paragraph (1)
shall not apply to--
``(A) any individual, including any individual who
is an active member of the uniformed services or an
employee of the intelligence community (as defined in
section 121(d)(9)(C)(iv)), if substantially all rental
income is derived from renting the principal residence
(within the meaning of section 121) of such individual
on a temporary basis,
``(B) any individual who receives rental income of
not more than the minimal amount, as determined under
regulations prescribed by the Secretary, and
``(C) any other individual for whom the requirements
of this section would cause hardship, as determined
under regulations prescribed by the Secretary.''.
(b) <<NOTE: 26 USC 6041 note.>> Effective Date.--The amendments
made by subsection (a) shall apply to payments made after December 31,
2010.
SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES.
(a) Failure To File Correct Information Returns.--
(1) In general.--Subsections (a)(1), (b)(1)(A), and
(b)(2)(A) of section 6721 of the Internal Revenue Code of
1986 <<NOTE: 26 USC 6721.>> are each amended by striking
``$50'' and inserting ``$100''.
(2) Aggregate annual limitation.--Subsections (a)(1),
(d)(1)(A), and (e)(3)(A) of section 6721 of such Code are each
amended by striking ``$250,000'' and inserting ``$1,500,000''.
(b) Reduction Where Correction Within 30 Days.--
(1) In general.--Subparagraph (A) of section 6721(b)(1) of
the Internal Revenue Code of 1986 is amended by striking ``$15''
and inserting ``$30''.
(2) Aggregate annual limitation.--Subsections (b)(1)(B) and
(d)(1)(B) of section 6721 of such Code are each amended by
striking ``$75,000'' and inserting ``$250,000''.
(c) Reduction Where Correction on or Before August 1.--
(1) In general.--Subparagraph (A) of section 6721(b)(2) of
the Internal Revenue Code of 1986 is amended by striking ``$30''
and inserting ``$60''.
(2) Aggregate annual limitation.--Subsections (b)(2)(B) and
(d)(1)(C) of section 6721 of such Code are each amended by
striking ``$150,000'' and inserting ``$500,000''.
(d) Aggregate Annual Limitations for Persons With Gross Receipts of
Not More Than $5,000,000.--
[[Page 124 STAT. 2562]]
(1) In general.--Paragraph (1) of section 6721(d) of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 6721.>> is
amended--
(A) by striking ``$100,000'' in subparagraph (A) and
inserting ``$500,000'',
(B) by striking ``$25,000'' in subparagraph (B) and
inserting ``$75,000'', and
(C) by striking ``$50,000'' in subparagraph (C) and
inserting ``$200,000''.
(2) Technical amendment.--Paragraph (1) of section 6721(d)
of such Code is amended by striking ``such taxable year'' and
inserting ``such calendar year''.
(e) Penalty in Case of Intentional Disregard.--Paragraph (2) of
section 6721(e) of the Internal Revenue Code of 1986 is amended by
striking ``$100'' and inserting ``$250''.
(f) Adjustment for Inflation.--Section 6721 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subsection:
``(f) Adjustment for Inflation.--
``(1) In general.--For each fifth calendar year beginning
after 2012, each of the dollar amounts under subsections (a),
(b), (d) (other than paragraph (2)(A) thereof), and (e) shall be
increased by such dollar amount multiplied by the cost-of-living
adjustment determined under section 1(f)(3) determined by
substituting `calendar year 2011' for `calendar year 1992' in
subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph
(1)--
``(A) is not less than $75,000 and is not a multiple
of $500, such amount shall be rounded to the next lowest
multiple of $500, and
``(B) is not described in subparagraph (A) and is
not a multiple of $10, such amount shall be rounded to
the next lowest multiple of $10.''.
(g) Failure To Furnish Correct Payee Statements.--Section 6722 of
the Internal Revenue Code of 1986 is amended to read as follows:
``SEC. 6722. <<NOTE: 26 USC 6722.>> FAILURE TO FURNISH CORRECT
PAYEE STATEMENTS.
``(a) Imposition of Penalty.--
``(1) General rule.--In the case of each failure described
in paragraph (2) by any person with respect to a payee
statement, such person shall pay a penalty of $100 for each
statement with respect to which such a failure occurs, but the
total amount imposed on such person for all such failures during
any calendar year shall not exceed $1,500,000.
``(2) Failures subject to penalty.--For purposes of
paragraph (1), the failures described in this paragraph are--
``(A) any failure to furnish a payee statement on or
before the date prescribed therefor to the person to
whom such statement is required to be furnished, and
``(B) any failure to include all of the information
required to be shown on a payee statement or the
inclusion of incorrect information.
``(b) Reduction Where Correction in Specified Period.--
``(1) Correction within 30 days.--If any failure described
in subsection (a)(2) is corrected on or before the day 30 days
after the required filing date--
[[Page 124 STAT. 2563]]
``(A) the penalty imposed by subsection (a) shall be
$30 in lieu of $100, and
``(B) the total amount imposed on the person for all
such failures during any calendar year which are so
corrected shall not exceed $250,000.
``(2) Failures corrected on or before august 1.--If any
failure described in subsection (a)(2) is corrected after the
30th day referred to in paragraph (1) but on or before August 1
of the calendar year in which the required filing date occurs--
``(A) the penalty imposed by subsection (a) shall be
$60 in lieu of $100, and
``(B) the total amount imposed on the person for all
such failures during the calendar year which are so
corrected shall not exceed $500,000.
``(c) Exception for De Minimis Failures.--
``(1) In general.--If--
``(A) a payee statement is furnished to the person
to whom such statement is required to be furnished,
``(B) there is a failure described in subsection
(a)(2)(B) (determined after the application of section
6724(a)) with respect to such statement, and
``(C) such failure is corrected on or before August
1 of the calendar year in which the required filing date
occurs,
for purposes of this section, such statement shall be treated as
having been furnished with all of the correct required
information.
``(2) Limitation.--The number of payee statements to which
paragraph (1) applies for any calendar year shall not exceed the
greater of--
``(A) 10, or
``(B) one-half of 1 percent of the total number of
payee statements required to be filed by the person
during the calendar year.
``(d) Lower Limitations for Persons With Gross Receipts of Not More
Than $5,000,000.--
``(1) In general.--If any person meets the gross receipts
test of paragraph (2) with respect to any calendar year, with
respect to failures during such calendar year--
``(A) subsection (a)(1) shall be applied by
substituting `$500,000' for `$1,500,000',
``(B) subsection (b)(1)(B) shall be applied by
substituting `$75,000' for `$250,000', and
``(C) subsection (b)(2)(B) shall be applied by
substituting `$200,000' for `$500,000'.
``(2) Gross receipts test.--A person meets the gross
receipts test of this paragraph if such person meets the gross
receipts test of section 6721(d)(2).
``(e) <<NOTE: Applicability.>> Penalty in Case of Intentional
Disregard.--If 1 or more failures to which subsection (a) applies are
due to intentional disregard of the requirement to furnish a payee
statement (or the correct information reporting requirement), then, with
respect to each such failure--
``(1) subsections (b), (c), and (d) shall not apply,
``(2) the penalty imposed under subsection (a)(1) shall be
$250, or, if greater--
[[Page 124 STAT. 2564]]
``(A) in the case of a payee statement other than a
statement required under section 6045(b), 6041A(e) (in
respect of a return required under section 6041A(b)),
6050H(d), 6050J(e), 6050K(b), or 6050L(c), 10 percent of
the aggregate amount of the items required to be
reported correctly, or
``(B) in the case of a payee statement required
under section 6045(b), 6050K(b), or 6050L(c), 5 percent
of the aggregate amount of the items required to be
reported correctly, and
``(3) in the case of any penalty determined under paragraph
(2)--
``(A) the $1,500,000 limitation under subsection (a)
shall not apply, and
``(B) such penalty shall not be taken into account
in applying such limitation to penalties not determined
under paragraph (2).
``(f) Adjustment for Inflation.--
``(1) In general.--For each fifth calendar year beginning
after 2012, each of the dollar amounts under subsections (a),
(b), (d)(1), and (e) shall be increased by such dollar amount
multiplied by the cost-of-living adjustment determined under
section 1(f)(3) determined by substituting `calendar year 2011'
for `calendar year 1992' in subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph
(1)--
``(A) is not less than $75,000 and is not a multiple
of $500, such amount shall be rounded to the next lowest
multiple of $500, and
``(B) is not described in subparagraph (A) and is
not a multiple of $10, such amount shall be rounded to
the next lowest multiple of $10.''.
(h) <<NOTE: 26 USC 6721 note.>> Effective Date.--The amendments
made by this section shall apply with respect to information returns
required to be filed on or after January 1, 2011.
SEC. 2103. <<NOTE: 26 USC 6662A note.>> REPORT ON TAX SHELTER
PENALTIES AND CERTAIN OTHER ENFORCEMENT
ACTIONS.
(a) In General.--The Commissioner of Internal Revenue, in
consultation with the Secretary of the Treasury, shall submit to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate an annual report on the penalties
assessed by the Internal Revenue Service during the preceding year under
each of the following provisions of the Internal Revenue Code of 1986:
(1) Section 6662A (relating to accuracy-related penalty on
understatements with respect to reportable transactions).
(2) Section 6700(a) (relating to promoting abusive tax
shelters).
(3) Section 6707 (relating to failure to furnish information
regarding reportable transactions).
(4) Section 6707A (relating to failure to include reportable
transaction information with return).
(5) Section 6708 (relating to failure to maintain lists of
advisees with respect to reportable transactions).
[[Page 124 STAT. 2565]]
(b) Additional Information.--The report required under subsection
(a) shall also include information on the following with respect to each
year:
(1) Any action taken under section 330(b) of title 31,
United States Code, with respect to any reportable transaction
(as defined in section 6707A(c) of the Internal Revenue Code of
1986).
(2) Any extension of the time for assessment of tax
enforced, or assessment of any amount under such an extension,
under paragraph (10) of section 6501(c) of the Internal Revenue
Code of 1986.
(c) Date of Report.--The first report required under subsection (a)
shall be submitted not later than December 31, 2010.
SEC. 2104. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES OF
CERTAIN FEDERAL CONTRACTORS.
(a) In General.--Subsection (f) of section 6330 of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 6330.>> is amended by striking
``or'' at the end of paragraph (2), by inserting ``or'' at the end of
paragraph (3), and by inserting after paragraph (3) the following new
paragraph:
``(4) the Secretary has served a Federal contractor levy,''.
(b) Federal Contractor Levy.--Subsection (h) of section 6330 of the
Internal Revenue Code of 1986 is amended--
(1) by striking all that precedes ``any levy in connection
with the collection'' and inserting the following:
``(h) Definitions Related to Exceptions.--For purposes of subsection
(f)--
``(1) Disqualified employment tax levy.--A disqualified
employment tax levy is''; and
(2) by adding at the end the following new paragraph:
``(2) Federal contractor levy.--A Federal contractor levy is
any levy if the person whose property is subject to the levy (or
any predecessor thereof) is a Federal contractor.''.
(c) Conforming Amendment.--The heading of subsection (f) of section
6330 of the Internal Revenue Code of 1986 is amended by striking
``Jeopardy and State Refund Collection'' and inserting ``Exceptions''.
(d) <<NOTE: 26 USC 6330 note.>> Effective Date.--The amendments
made by this section shall apply to levies issued after the date of the
enactment of this Act.
PART II--PROMOTING RETIREMENT PREPARATION
SEC. 2111. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS ALLOWED TO
TREAT ELECTIVE DEFERRALS AS ROTH
CONTRIBUTIONS.
(a) In General.--Section 402A(e)(1) of the Internal Revenue Code of
1986 <<NOTE: 26 USC 402A.>> is amended by striking ``and'' at the end
of subparagraph (A), by striking the period at the end of subparagraph
(B) and inserting ``, and'', and by adding at the end the following:
``(C) an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).''.
(b) Elective Deferrals.--Section 402A(e)(2) of the Internal Revenue
Code of 1986 is amended to read as follows:
[[Page 124 STAT. 2566]]
``(2) Elective deferral.--The term `elective deferral'
means--
``(A) any elective deferral described in
subparagraph (A) or (C) of section 402(g)(3), and
``(B) any elective deferral of compensation by an
individual under an eligible deferred compensation plan
(as defined in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).''.
(c) <<NOTE: 26 USC 402A note.>> Effective Date.--The amendments
made by this section shall apply to taxable years beginning after
December 31, 2010.
SEC. 2112. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO DESIGNATED
ROTH ACCOUNTS.
(a) In General.--Section 402A(c) of the Internal Revenue Code of
1986 <<NOTE: 26 USC 402A.>> is amended by adding at the end the
following new paragraph:
``(4) Taxable rollovers to designated roth accounts.--
``(A) In general.--Notwithstanding sections 402(c),
403(b)(8), and 457(e)(16), in the case of any
distribution to which this paragraph applies--
``(i) there shall be included in gross income
any amount which would be includible were it not
part of a qualified rollover contribution,
``(ii) section 72(t) shall not apply, and
``(iii) unless the taxpayer elects not to have
this clause apply, any amount required to be
included in gross income for any taxable year
beginning in 2010 by reason of this paragraph
shall be so included ratably over the 2-taxable-
year period beginning with the first taxable year
beginning in 2011.
Any election under clause (iii) for any distributions
during a taxable year may not be changed after the due
date for such taxable year.
``(B) Distributions to which paragraph applies.--In
the case of an applicable retirement plan which includes
a qualified Roth contribution program, this paragraph
shall apply to a distribution from such plan other than
from a designated Roth account which is contributed in a
qualified rollover contribution (within the meaning of
section 408A(e)) to the designated Roth account
maintained under such plan for the benefit of the
individual to whom the distribution is made.
``(C) Coordination with limit.--Any distribution to
which this paragraph applies shall not be taken into
account for purposes of paragraph (1).
``(D) Other rules.--The rules of subparagraphs (D),
(E), and (F) of section 408A(d)(3) (as in effect for
taxable years beginning after 2009) shall apply for
purposes of this paragraph.''.
(b) <<NOTE: 26 USC 402A note.>> Effective Date.--The amendments
made by this section shall apply to distributions after the date of the
enactment of this Act.
SEC. 2113. SPECIAL RULES FOR ANNUITIES RECEIVED FROM ONLY A
PORTION OF A CONTRACT.
(a) In General.--Subsection (a) of section 72 of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 72.>> is amended to read as
follows:
``(a) General Rules for Annuities.--
[[Page 124 STAT. 2567]]
``(1) Income inclusion.--Except as otherwise provided in
this chapter, gross income includes any amount received as an
annuity (whether for a period certain or during one or more
lives) under an annuity, endowment, or life insurance contract.
``(2) Partial annuitization.--If any amount is received as
an annuity for a period of 10 years or more or during one or
more lives under any portion of an annuity, endowment, or life
insurance contract--
``(A) such portion shall be treated as a separate
contract for purposes of this section,
``(B) for purposes of applying subsections (b), (c),
and (e), the investment in the contract shall be
allocated pro rata between each portion of the contract
from which amounts are received as an annuity and the
portion of the contract from which amounts are not
received as an annuity, and
``(C) a separate annuity starting date under
subsection (c)(4) shall be determined with respect to
each portion of the contract from which amounts are
received as an annuity.''.
(b) <<NOTE: 26 USC 72 note.>> Effective Date.--The amendment made
by this section shall apply to amounts received in taxable years
beginning after December 31, 2010.
PART III--CLOSING UNINTENDED LOOPHOLES
SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL
PRODUCER CREDIT.
(a) In General.--Clause (iii) of section 40(b)(6)(E) of the Internal
Revenue Code of 1986, as added by the Health Care and Education
Reconciliation Act of 2010, <<NOTE: Ante, p. 1067.>> is amended--
(1) by striking ``or'' at the end of subclause (I),
(2) by striking the period at the end of subclause (II) and
inserting ``, or'',
(3) by adding at the end the following new subclause:
``(III) such fuel has an acid number
greater than 25.'', and
(4) by striking ``unprocessed'' in the heading and inserting
``certain''.
(b) <<NOTE: 26 USC 40 note.>> Effective Date.--The amendments made
by this section shall apply to fuels sold or used on or after January 1,
2010.
SEC. 2122. SOURCE RULES FOR INCOME ON GUARANTEES.
(a) Amounts Sourced Within the United States.--Subsection (a) of
section 861 of the Internal Revenue Code of <<NOTE: 26 USC 861.>> 1986
is amended by adding at the end the following new paragraph:
``(9) Guarantees.--Amounts received, directly or indirectly,
from--
``(A) a noncorporate resident or domestic
corporation for the provision of a guarantee of any
indebtedness of such resident or corporation, or
``(B) any foreign person for the provision of a
guarantee of any indebtedness of such person, if such
amount is connected with income which is effectively
connected (or treated as effectively connected) with the
conduct of a trade or business in the United States.''.
[[Page 124 STAT. 2568]]
(b) Amounts Sourced Without the United States.--Subsection (a) of
section 862 of the Internal Revenue Code of 1986 <<NOTE: 26 USC 862.>>
is amended by striking ``and'' at the end of paragraph (7), by striking
the period at the end of paragraph (8) and inserting ``; and'', and by
adding at the end the following new paragraph:
``(9) amounts received, directly or indirectly, from a
foreign person for the provision of a guarantee of indebtedness
of such person other than amounts which are derived from sources
within the United States as provided in section 861(a)(9).''.
(c) Conforming Amendment.--Clause (ii) of section 864(c)(4)(B) of
the Internal Revenue Code of 1986 <<NOTE: 26 USC 864.>> is amended by
striking ``dividends or interest'' and inserting ``dividends, interest,
or amounts received for the provision of guarantees of indebtedness''.
(d) <<NOTE: 26 USC 861 note.>> Effective Date.--The amendments made
by this section shall apply to guarantees issued after the date of the
enactment of this Act.
PART IV--TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES
SEC. 2131. <<NOTE: 22 USC 6655 note.>> TIME FOR PAYMENT OF
CORPORATE ESTIMATED TAXES.
The percentage under paragraph (2) of section 561 of the Hiring
Incentives to Restore Employment Act in effect on the date of the
enactment of this Act is increased by 36 percentage points.
TITLE III <<NOTE: Small Business Credit Initiative Act of 2010.>> --
STATE SMALL BUSINESS CREDIT INITIATIVE
SEC. 3001. <<NOTE: 12 USC 5701 note.>> SHORT TITLE.
This title may be cited as the ``State Small Business Credit
Initiative Act of 2010''.
SEC. 3002. <<NOTE: 12 USC 5701.>> DEFINITIONS.
In this title, the following definitions shall apply:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Small Business and
Entrepreneurship, the Committee on Agriculture,
Nutrition, and Forestry, the Committee on Banking,
Housing, and Urban Affairs, the Committee on Finance,
the Committee on the Budget, and the Committee on
Appropriations of the Senate; and
(B) the Committee on Small Business, the Committee
on Agriculture, the Committee on Financial Services, the
Committee on Ways and Means, the Committee on the
Budget, and the Committee on Appropriations of the House
of Representatives.
(2) Appropriate federal banking agency.--The term
``appropriate Federal banking agency''--
(A) has the same meaning as in section 3(q) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(q)); and
(B) includes the National Credit Union
Administration Board in the case of any credit union the
deposits of which
[[Page 124 STAT. 2569]]
are insured in accordance with the Federal Credit Union
Act.
(3) 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 title.
(4) 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 3003.
(5) 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 (12
U.S.C. 4702).
(6) Participating state.--The term ``participating State''
means any State that has been approved for participation in the
Program under section 3004.
(7) Program.--The term ``Program'' means the State Small
Business Credit Initiative established under this title.
(8) 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.
(9) 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.
(10) State.--The term ``State'' means--
(A) a State of the United States;
(B) the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of Northern Mariana
Islands, Guam, American Samoa, and the United States
Virgin Islands;
(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
[[Page 124 STAT. 2570]]
(D) under the circumstances described in section
3004(d), a municipality of a State of the United States
to which the Secretary has given a special permission
under section 3004(d).
(11) 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
3005(c).
(12) 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 3006(c); and
(B) includes, collateral support programs, loan
participation programs, State-run venture capital fund
programs, and credit guarantee programs.
(13) State program.--The term ``State program'' means a
State capital access program or a State other credit support
program.
(14) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 3003. <<NOTE: 12 USC 5702.>> FEDERAL FUNDS ALLOCATED TO
STATES.
(a) Program Established; Purpose.--There is established the State
Small Business Credit Initiative, 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) <<NOTE: Deadline.>> 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, as
determined under paragraph (2); and
(B) would receive under the 2010 allocation, as
determined under paragraph (3).
(2) 2009 allocation formula.--
(A) <<NOTE: Determination.>> 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) <<NOTE: Adjustment.>> 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.--In this
paragraph and with respect to a State, the term ``2008
State employment decline'' means the excess (if any)
of--
[[Page 124 STAT. 2571]]
(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) <<NOTE: Determination.>> 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) <<NOTE: Adjustment.>> 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.--In 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.--
(A) In general.--The Secretary shall--
(i) apportion the participating State's
allocated amount into thirds;
(ii) transfer to the participating State the
first \1/3\ when the Secretary approves the State
for participation under section 3004; and
(iii) transfer to the participating State each
successive \1/3\ when the State has certified to
the Secretary that it has expended, transferred,
or obligated 80 percent of the last transferred
\1/3\ for Federal contributions to, or for the
account of, State programs.
(B) Authority to withhold pending audit.--The
Secretary may withhold the transfer of any successive
\1/3\ pending results of a financial audit.
(C) Inspector general audits.--
(i) In general.--The Inspector General of the
Department of the Treasury shall carry out an
audit of the participating State's use of
allocated Federal funds transferred to the State.
(ii) Recoupment of misused transferred funds
required.--The allocation agreement between the
Secretary and the participating State shall
provide that the Secretary shall recoup any
allocated Federal funds transferred to the
participating State if the results of the an audit
include a finding that there was an intentional or
reckless misuse of transferred funds by the State.
(iii) Penalty for misstatement.--Any
participating State that is found to have
intentionally misstated any report issued to the
Secretary under the Program shall be ineligible to
receive any additional funds under the Program.
Funds that had been allocated or that would
otherwise have been allocated to
[[Page 124 STAT. 2572]]
such participating State shall be paid into the
general fund of the Treasury for reduction of the
public debt.
(iv) Municipalities.--In this subparagraph,
the term ``participating State'' shall include a
municipality given special permission to
participate in the Program, under section 3004(d).
(D) 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.
(2) 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
(3).
(3) 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 \1/3\ 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 \1/3\; or
(D) in the case of each successive \1/3\
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 \1/
3\.
(4) 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 of the Treasury.
(5) Transferred amounts not assistance.--The amounts
transferred to a participating State under this section shall
not be considered assistance for purposes of subtitle V of title
31, United States Code.
(6) Definitions.--In 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 ``\1/3\'' means--
(i) in the case of the first \1/3\ and second
\1/3\, an amount equal to 33 percent of a
participating State's allocated amount; and
(ii) in the case of the last \1/3\, an amount
equal to 34 percent of a participating State's
allocated amount.
[[Page 124 STAT. 2573]]
SEC. 3004. <<NOTE: 12 USC 5703.>> 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
3005 or approval as a State other credit support program under
section 3006, in each case within the time period provided in
the respective section; and
(4) <<NOTE: Contracts.>> the State and the Secretary have
executed an allocation agreement that--
(A) conforms to the requirements of this title;
(B) ensures that the State program complies with
such national standards as are established by the
Secretary under section 3009(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 title, including an agreement
by the State to allow the Secretary to audit State
programs;
(D) <<NOTE: Deadline.>> 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.--
<<NOTE: Deadlines. Notice.>> 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
[[Page 124 STAT. 2574]]
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 shall be required, within 12 months
after the date of enactment of this Act, to 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) <<NOTE: Applicability.>> Approval criteria.--The
general approval criteria in paragraphs (2) and (4) shall 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 3006(d) in
making the determination under section 3005 or 3006 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. 3005. <<NOTE: 12 USC 5704.>> 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--
[[Page 124 STAT. 2575]]
(1) <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> 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 3004; 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, that
program shall be required to 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 both the following requirements:
(A) The borrower has 500 employees or less at the
time that the loan is enrolled in the Program.
(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. <<NOTE: Regulations.>> --The Secretary shall, by regulation or
other guidance, prescribe Program requirements that meet the following
minimum requirements:
(1) <<NOTE: Determination.>> 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
nondepository 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,
[[Page 124 STAT. 2576]]
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 shall 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;
[[Page 124 STAT. 2577]]
(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 title, including compliance with all
applicable Federal and State laws, regulations,
ordinances, and Executive orders.
(B) Definitions.--In this paragraph, 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.
(8) Capital access for small businesses in underserved
communities.--At the time that a State applies to the Secretary
to have the State capital access program approved as eligible
for Federal contributions, the State shall deliver to the
Secretary a report stating how the State plans to use the
Federal contributions to the reserve fund to provide access to
capital for small businesses in low- and moderate-income,
minority, and other underserved communities, including women-
and minority-owned small businesses.
SEC. 3006. <<NOTE: 12 USC 5705.>> 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 section 3005(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) <<NOTE: Deadline.>> within 9 months after the date of
enactment of this Act, the State has filed with Treasury a
complete application for Treasury approval.
[[Page 124 STAT. 2578]]
(c) Eligibility Criteria for State Other Credit Support Programs.--
For a State other credit support program to be approved under this
section, that program shall be required to be a program of the State
that--
(1) can demonstrate that, at a minimum, $1 of public
investment by the State program will cause and result in $1 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) uses Federal funds allocated under this title to extend
credit support that--
(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.
(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.
[[Page 124 STAT. 2579]]
(f) Minimum Program Requirements for State Other Credit Support
Programs.--
(1) Fund to prescribe. <<NOTE: Regulations.>> --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 3005(e).
SEC. 3007. <<NOTE: 12 USC 5706.>> 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.--Each report under this subsection
shall--
(A) indicate the total amount of Federal funding
used by the participating State; and
(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 title and regulations issued
under section 3010.
(b) <<NOTE: Effective date.>> 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 as the Secretary, in the Secretary's
sole discretion, may require to carry out the purposes of the
Program.
[[Page 124 STAT. 2580]]
(c) Form.--The reports and data filed under 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. 3008. <<NOTE: 12 USC 5707.>> 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 3007 on a timely
basis; or
(C) noncompliance by the State with the terms of the
allocation agreement between the Secretary and the
State.
(b) Deallocated Amounts To Be Reallocated.-- <<NOTE: Time
period.>> 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 reallocate that portion
among the participating States, excluding the State whose allocated
funds were deemed to be no longer allocated, as provided in section
3003(b).
SEC. 3009. <<NOTE: 12 USC 5708.>> IMPLEMENTATION AND
ADMINISTRATION.
(a) General Authorities and Duties.--The Secretary shall--
(1) <<NOTE: Consultation.>> consult with the Administrator
of the Small Business Administration and the appropriate Federal
banking agencies on the administration of the Program;
(2) <<NOTE: Standards.>> 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) Appropriations.--There is hereby appropriated to the Secretary,
out of funds in the Treasury not otherwise appropriated, $1,500,000,000
to carry out the Program, including to pay reasonable costs of
administering the Program.
[[Page 124 STAT. 2581]]
(c) Termination of Secretary's Program Administration Functions.--
<<NOTE: Time period.>> 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.
(d) Expedited Contracting.-- <<NOTE: Time period.>> 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
title.
SEC. 3010. <<NOTE: 12 USC 5709.>> REGULATIONS.
The Secretary, in consultation with the Administrator of the Small
Business Administration, shall issue such regulations and other guidance
as the Secretary determines necessary or appropriate to implement this
title including to define terms, to establish compliance and reporting
requirements, and such other terms and conditions necessary to carry out
the purposes of this title.
SEC. 3011. <<NOTE: 12 USC 5710.>> OVERSIGHT AND AUDITS.
(a) Inspector General Oversight.--The Inspector General of the
Department of the Treasury shall conduct, supervise, and coordinate
audits and investigations of the use of funds made available under the
Program.
(b) GAO Audit.--The Comptroller General of the United States shall
perform an annual audit of the Program and issue a report to the
appropriate committees of Congress containing the results of such audit.
(c) Required Certification.--
(1) Financial institutions certification.--With respect to
funds received by a participating State under the Program, any
financial institution that receives a loan, a loan guarantee, or
other financial assistance using such funds after the date of
the enactment of this Act shall certify that such institution is
in compliance with the requirements of section 103.121 of title
31, Code of Federal Regulations, a regulation that, at a
minimum, requires financial institutions, as that term is
defined in section 5312 (a)(2) and (c)(1)(A) of title 31, United
States Code, to implement reasonable procedures to verify the
identity of any person seeking to open an account, to the extent
reasonable and practicable, maintain records of the information
used to verify the person's identity, and determine whether the
person appears on any lists of known or suspected terrorists or
terrorist organizations provided to the financial institution by
any government agency.
(2) Sex offense certification.--With respect to funds
received by a participating State under the Program, any private
entity that receives a loan, a loan guarantee, or other
financial assistance using such funds after the date of the
enactment of this Act shall certify to the participating State
that the principals of such entity have not been convicted of a
sex offense against a minor (as such terms are defined in
section 111 of the Sex Offender Registration and Notification
Act (42 U.S.C. 16911)).
(d) Prohibition on Pornography.--None of the funds made available
under this title may be used to pay the salary of any individual engaged
in activities related to the Program who has been officially disciplined
for violations of subpart G of the Standards of Ethical Conduct for
Employees of the Executive Branch for viewing, downloading, or
exchanging pornography, including
[[Page 124 STAT. 2582]]
child pornography, on a Federal Government computer or while performing
official Federal Government duties.
TITLE IV--ADDITIONAL SMALL BUSINESS PROVISIONS
Subtitle A-- <<NOTE: 12 USC 4741 note.>> Small Business Lending Fund
SEC. 4101. PURPOSE.
The purpose of this subtitle is to address the ongoing effects of
the financial crisis on small businesses by providing temporary
authority to the Secretary of the Treasury to make capital investments
in eligible institutions in order to increase the availability of credit
for small businesses.
SEC. 4102. DEFINITIONS.
For purposes of this subtitle:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Small Business and
Entrepreneurship, the Committee on Agriculture,
Nutrition, and Forestry, the Committee on Banking,
Housing, and Urban Affairs, the Committee on Finance,
the Committee on the Budget, and the Committee on
Appropriations of the Senate; and
(B) the Committee on Small Business, the Committee
on Agriculture, the Committee on Financial Services, the
Committee on Ways and Means, the Committee on the
Budget, and the Committee on Appropriations of the House
of Representatives.
(2) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' has the meaning given
such term under section 3(q) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(q)).
(3) Bank holding company.--The term ``bank holding company''
has the meaning given such term under section 2(a)(1) of the
Bank Holding Company Act of 1956 (12 U.S.C. 1841(2)(a)(1)).
(4) Call report.--The term ``call report'' means--
(A) reports of Condition and Income submitted to the
Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, and the Federal
Deposit Insurance Corporation;
(B) the Office of Thrift Supervision Thrift
Financial Report;
(C) any report that is designated by the Office of
the Comptroller of the Currency, the Board of Governors
of the Federal Reserve System, the Federal Deposit
Insurance Corporation, or the Office of Thrift
Supervision, as applicable, as a successor to any report
referred to in subparagraph (A) or (B);
(D) reports of Condition and Income as designated
through guidance developed by the Secretary, in
consultation with the Director of the Community
Development Financial Institutions Fund; and
[[Page 124 STAT. 2583]]
(E) with respect to an eligible institution for
which no report exists that is described under
subparagraph (A), (B), (C), or (D), such other report or
set of information as the Secretary, in consultation
with the Administrator of the Small Business
Administration, may prescribe.
(5) CDCI.--The term ``CDCI'' means the Community Development
Capital Initiative created by the Secretary under the Troubled
Asset Relief Program established by the Emergency Economic
Stabilization Act of 2008.
(6) CDCI investment.--The term ``CDCI investment'' means,
with respect to any eligible institution, the principal amount
of any investment made by the Secretary in such eligible
institution under the CDCI that has not been repaid.
(7) CDFI; community development financial institution.--The
terms ``CDFI'' and ``community development financial
institution'' have the meaning given the term ``community
development financial institution'' under the Riegle Community
Development and Regulatory Improvement Act of 1994.
(8) CDLF; community development loan fund.--The terms
``CDLF'' and ``community development loan fund'' mean any entity
that--
(A) is certified by the Department of the Treasury
as a community development financial institution loan
fund;
(B) is exempt from taxation under the Internal
Revenue Code of 1986; and
(C) had assets less than or equal to $10,000,000,000
as of the end of the fourth quarter of calendar year
2009.
(9) CPP.--The term ``CPP'' means the Capital Purchase
Program created by the Secretary under the Troubled Asset Relief
Program established by the Emergency Economic Stabilization Act
of 2008.
(10) CPP investment.--The term ``CPP investment'' means,
with respect to any eligible institution, the principal amount
of any investment made by the Secretary in such eligible
institution under the CPP that has not been repaid.
(11) Eligible institution.--The term ``eligible
institution'' means--
(A) any insured depository institution, which--
(i) is not controlled by a bank holding
company or savings and loan holding company that
is also an eligible institution;
(ii) has total assets of equal to or less than
$10,000,000,000, as reported in the call report of
the insured depository institution as of the end
of the fourth quarter of calendar year 2009; and
(iii) is not directly or indirectly controlled
by any company or other entity that has total
consolidated assets of more than $10,000,000,000,
as so reported;
(B) any bank holding company which has total
consolidated assets of equal to or less than
$10,000,000,000, as reported in the call report of the
bank holding company as of the end of the fourth quarter
of calendar year 2009;
(C) any savings and loan holding company which has
total consolidated assets of equal to or less than
$10,000,000,000, as reported in the call report of the
[[Page 124 STAT. 2584]]
savings and loan holding company as of the end of the
fourth quarter of calendar year 2009; and
(D) any community development financial institution
loan fund which has total assets of equal to or less
than $10,000,000,000, as reported in audited financial
statements for the fiscal year of the community
development financial institution loan fund that ends in
calendar year 2009.
(12) Fund.--The term ``Fund'' means the Small Business
Lending Fund established under section 4103(a)(1).
(13) Insured depository institution.--The term ``insured
depository institution'' has the meaning given such term under
section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C.
1813(c)(2)).
(14) Minority-owned and women-owned business.--The terms
``minority-owned business'' and ``women-owned business'' shall
have the meaning given the terms ``minority-owned business'' and
``women's business'', respectively, under section 21A(r)(4) of
the Federal Home Loan Bank Act (12 U.S.C. 1441A(r)(4)).
(15) Program.--The term ``Program'' means the Small Business
Lending Fund Program authorized under section 4103(a)(2).
(16) Savings and loan holding company.--The term ``savings
and loan holding company'' has the meaning given such term under
section 10(a)(1)(D) of the Home Owners' Loan Act (12 U.S.C.
1467a(a)(1)(D)).
(17) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(18) Small business lending.--
(A) In general.--The term ``small business lending''
means lending, as defined by and reported in an eligible
institutions' quarterly call report, where each loan
comprising such lending is one of the following types:
(i) Commercial and industrial loans.
(ii) Owner-occupied nonfarm, nonresidential
real estate loans.
(iii) Loans to finance agricultural production
and other loans to farmers.
(iv) Loans secured by farmland.
(B) Exclusion.--No loan that has an original amount
greater than $10,000,000 or that goes to a business with
more than $50,000,000 in revenues shall be included in
the measure.
(C) Treatment of holding companies.--In the case of
eligible institutions that are bank holding companies or
savings and loan holding companies having one or more
insured depository institution subsidiaries, small
business lending shall be measured based on the combined
small business lending reported in the call report of
the insured depository institution subsidiaries.
(19) Veteran-owned business.--
(A) The term ``veteran-owned business'' means a
business--
(i) more than 50 percent of the ownership or
control of which is held by 1 or more veterans;
[[Page 124 STAT. 2585]]
(ii) more than 50 percent of the net profit or
loss of which accrues to 1 or more veterans; and
(iii) a significant percentage of senior
management positions of which are held by
veterans.
(B) For purposes of this paragraph, the term
``veteran'' has the meaning given such term in section
101(2) of title 38, United States Code.
SEC. 4103. SMALL BUSINESS LENDING FUND.
(a) Fund and Program.--
(1) Fund established.--There is established in the Treasury
of the United States a fund to be known as the ``Small Business
Lending Fund'', which shall be administered by the Secretary.
(2) Programs authorized.--The Secretary is authorized to
establish the Small Business Lending Fund Program for using the
Fund consistent with this subtitle.
(b) Use of Fund.--
(1) In general.--Subject to paragraph (2), the Fund shall be
available to the Secretary, without further appropriation or
fiscal year limitation, for the costs of purchases (including
commitments to purchase), and modifications of such purchases,
of preferred stock and other financial instruments from eligible
institutions on such terms and conditions as are determined by
the Secretary in accordance with this subtitle. For purposes of
this paragraph and with respect to an eligible institution, the
term ``other financial instruments'' shall include only debt
instruments for which such eligible institution is fully liable
or equity equivalent capital of the eligible institution. Such
debt instruments may be subordinated to the claims of other
creditors of the eligible institution.
(2) Maximum purchase limit.--The aggregate amount of
purchases (and commitments to purchase) made pursuant to
paragraph (1) may not exceed $30,000,000,000.
(3) Proceeds used to pay down public debt.--All funds
received by the Secretary in connection with purchases made
pursuant to paragraph (1), including interest payments, dividend
payments, and proceeds from the sale of any financial
instrument, shall be paid into the general fund of the Treasury
for reduction of the public debt.
(4) Limitation on purchases from cdlfs.--
(A) In general.--Not more than 1 percent of the
maximum purchase limit of the Program, pursuant to
paragraph (2), may be used to make purchases from
community development loan funds.
(B) Eligibility 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
shall include the following:
(i) Ratio of net assets to total assets is at
least 20 percent.
(ii) Ratio of loan loss reserves to loans and
leases 90 days or more delinquent (including loans
sold with full recourse) is at least 30 percent.
[[Page 124 STAT. 2586]]
(iii) Positive net income measured on a 3-year
rolling average.
(iv) Operating liquidity ratio of at least 1.0
for the 4 most recent quarters and for one or both
of the two preceding years.
(v) Ratio of loans and leases 90 days or more
delinquent (including loans sold with full
recourse) to total equity plus loan loss reserves
is less than 40 percent.
(C) Requirement to submit audited financial
statements.--CDLFs participating in the Program shall
submit audited financial statements to the Secretary,
have a clean audit opinion, and have at least 3 years of
operating experience.
(c) Credits to the Fund.--There shall be credited to the Fund
amounts made available pursuant to section 4108, to the extent provided
by appropriations Acts.
(d) Terms.--
(1) Application.--
(A) Institutions with assets of $1,000,000,000 or
less.--Eligible institutions having total assets equal
to or less than $1,000,000,000, as reported in a call
report as of the end of the fourth quarter of calendar
year 2009, may apply to receive a capital investment
from the Fund in an amount not exceeding 5 percent of
risk-weighted assets, as reported in the call report
immediately preceding the date of application, less the
amount of any CDCI investment and any CPP investment.
(B) Institutions with assets of more than
$1,000,000,000 and less than or equal to
$10,000,000,000.--Eligible institutions having total
assets of more than $1,000,000,000 but less than
$10,000,000,000, as of the end of the fourth quarter of
calendar year 2009, may apply to receive a capital
investment from the Fund in an amount not exceeding 3
percent of risk-weighted assets, as reported in the call
report immediately preceding the date of application,
less the amount of any CDCI investment and any CPP
investment.
(C) Treatment of holding companies.--In the case of
an eligible institution that is a bank holding company
or a savings and loan holding company having one or more
insured depository institution subsidiaries, total
assets shall be measured based on the combined total
assets reported in the call report of the insured
depository institution subsidiaries as of the end of the
fourth quarter of calendar year 2009 and risk-weighted
assets shall be measured based on the combined risk-
weighted assets of the insured depository institution
subsidiaries as reported in the call report immediately
preceding the date of application.
(D) Treatment of applicants that are institutions
controlled by holding companies.--If an eligible
institution that applies to receive a capital investment
under the Program is under the control of a bank holding
company or a savings and loan holding company, then the
Secretary may use the Fund to purchase preferred stock
or other
[[Page 124 STAT. 2587]]
financial instruments from the top-tier bank holding
company or savings and loan holding company of such
eligible institution, as applicable. For purposes of
this subparagraph, the term ``control'' with respect to
a bank holding company shall have the same meaning as in
section 2(a)(2) of the Bank Holding Company Act of 1956
(12 U.S.C. 1841(2)(a)(2)). For purposes of this
subparagraph, the term ``control'' with respect to a
savings and loan holding company shall have the same
meaning as in 10(a)(2) of the Home Owners' Loan Act (12
U.S.C. 1467a(a)(2)).
(E) Requirement to provide a small business lending
plan.--At the time that an applicant submits an
application to the Secretary for a capital investment
under the Program, the applicant shall deliver to the
appropriate Federal banking agency, and, for applicants
that are State-chartered banks, to the appropriate State
banking regulator, a small business lending plan
describing how the applicant's business strategy and
operating goals will allow it to address the needs of
small businesses in the areas it serves, as well as a
plan to provide linguistically and culturally
appropriate outreach, where appropriate. In the case of
eligible institutions that are community development
loan funds, this plan shall be submitted to the
Secretary. <<NOTE: Confidentiality.>> This plan shall
be confidential supervisory information.
(F) Treatment of applicants that are community
development loan funds.--Eligible institutions that are
community development loan funds may apply to receive a
capital investment from the Fund in an amount not
exceeding 5 percent of total assets, as reported in the
audited financial statements for the fiscal year of the
eligible institution that ends in calendar year 2009.
(2) Consultation with regulators.--For each eligible
institution that applies to receive a capital investment under
the Program, the Secretary shall--
(A) consult with the appropriate Federal banking
agency or, in the case of an eligible institution that
is a nondepository community development financial
institution, the Community Development Financial
Institution Fund, for the eligible institution, to
determine whether the eligible institution may receive
such capital investment;
(B) in the case of an eligible institution that is a
State-chartered bank, consider any views received from
the State banking regulator of the State of the eligible
institution regarding the financial condition of the
eligible institution; and
(C) in the case of a community development financial
institution loan fund, consult with the Community
Development Financial Institution Fund.
(3) Consideration of matched private investments.--
(A) In general.--For an eligible institution that
applies to receive a capital investment under the
Program, if the entity to be consulted under paragraph
(2) would not otherwise recommend the eligible
institution to receive the capital investment, the
Secretary, in consultation with the entity to be so
consulted, may consider whether the
[[Page 124 STAT. 2588]]
entity to be consulted would recommend the eligible
institution to receive a capital investment based on the
financial condition of the institution if the conditions
in subparagraph (B) are satisfied.
(B) Conditions.--The conditions referred to in
subparagraph (A) are as follows:
(i) Capital sources.--The eligible institution
shall receive capital both under the Program and
from private, nongovernment investors.
(ii) Amount of capital.--The amount of capital
to be received under the Program shall not exceed
3 percent of risk-weighted assets, as reported in
the call report immediately preceding the date of
application, less the amount of any CDCI
investment and any CPP investment.
(iii) Terms.--The amount of capital to be
received from private, nongovernment investors
shall be--
(I) equal to or greater than 100
percent of the capital to be received
under the Program; and
(II) subordinate to the capital
investment made by the Secretary under
the Program.
(4) Ineligibility of institutions on fdic problem bank
list.--
(A) In general.--An eligible institution may not
receive any capital investment under the Program, if--
(i) such institution is on the FDIC problem
bank list; or
(ii) such institution has been removed from
the FDIC problem bank list for less than 90 days.
(B) Construction.--Nothing in subparagraph (A) shall
be construed as limiting the discretion of the Secretary
to deny the application of an eligible institution that
is not on the FDIC problem bank list.
(C) FDIC problem bank list defined.--For purposes of
this paragraph, the term ``FDIC problem bank list''
means the list of depository institutions having a
current rating of 4 or 5 under the Uniform Financial
Institutions Rating System, or such other list
designated by the Federal Deposit Insurance Corporation.
(5) Incentives to lend.--
(A) Requirements on preferred stock and other
financial instruments.--Any preferred stock or other
financial instrument issued to Treasury by an eligible
institution receiving a capital investment under the
Program shall provide that--
(i) the rate at which dividends or interest
are payable shall be 5 percent per annum
initially;
(ii) <<NOTE: Time period.>> within the first
2 years after the date of the capital investment
under the Program, the rate may be adjusted based
on the amount of an eligible institution's small
business lending. Changes in the amount of small
business lending shall be measured against the
average amount of small business lending reported
by the eligible institution in its call reports
for the 4 full quarters immediately preceding the
date of enactment of this Act, minus adjustments
from each quarterly balance in respect of--
[[Page 124 STAT. 2589]]
(I) net loan charge offs with
respect to small business lending; and
(II) gains realized by the eligible
institution resulting from mergers,
acquisitions or purchases of loans after
origination and syndication; which
adjustments shall be determined in
accordance with guidance promulgated by
the Secretary; and
(iii) during any calendar quarter during the
initial 2-year period referred to in clause (ii),
an institution's rate shall be adjusted to reflect
the following schedule, based on that
institution's change in the amount of small
business lending relative to the baseline--
(I) if the amount of small business
lending has increased by less than 2.5
percent, the dividend or interest rate
shall be 5 percent;
(II) if the amount of small business
lending has increased by 2.5 percent or
greater, but by less than 5.0 percent,
the dividend or interest rate shall be 4
percent;
(III) if the amount of small
business lending has increased by 5.0
percent or greater, but by less than 7.5
percent, the dividend or interest rate
shall be 3 percent;
(IV) if the amount of small business
lending has increased by 7.5 percent or
greater, and but by less than 10.0
percent, the dividend or interest rate
shall be 2 percent; or
(V) if the amount of small business
lending has increased by 10 percent or
greater, the dividend or interest rate
shall be 1 percent.
(B) Basis of initial rate.--The initial dividend or
interest rate shall be based on call report data
published in the quarter immediately preceding the date
of the capital investment under the Program.
(C) Timing of rate adjustments.--Any rate adjustment
shall occur in the calendar quarter following the
publication of call report data, such that the rate
based on call report data from any one calendar quarter,
which is published in the first following calendar
quarter, shall be adjusted in that first following
calendar quarter and payable in the second following
quarter.
(D) Rate following initial 2-year period.--
Generally, the rate based on call report data from the
eighth calendar quarter after the date of the capital
investment under the Program shall be payable until the
expiration of the 4\1/2\-year period that begins on the
date of the investment. In the case where the amount of
small business lending has remained the same or
decreased relative to the institution's baseline in the
eighth quarter after the date of the capital investment
under the Program, the rate shall be 7 percent until the
expiration of the 4\1/2\-year period that begins on the
date of the investment.
(E) Rate following initial 4\1/2\ -year period.--The
dividend or interest rate paid on any preferred stock or
other financial instrument issued by an eligible
institution that receives a capital investment under the
Program shall increase to 9 percent at the end of the
4\1/2\-year period
[[Page 124 STAT. 2590]]
that begins on the date of the capital investment under
the Program.
(F) Limitation on rate reductions with respect to
certain amount.--The reduction in the dividend or
interest rate payable to Treasury by any eligible
institution shall be limited such that the rate
reduction shall not apply to a dollar amount of the
investment made by Treasury that is greater than the
dollar amount increase in the amount of small business
lending realized under this
program. <<NOTE: Applicability.>> The Secretary may
issue guidelines that will apply to new capital
investments limiting the amount of capital available to
eligible institutions consistent with this limitation.
(G) Rate adjustments for s corporation.--Before
making a capital investment in an eligible institution
that is an S corporation or a corporation organized on a
mutual basis, the Secretary may adjust the dividend or
interest rate on the financial instrument to be issued
to the Secretary, from the dividend or interest rate
that would apply under subparagraphs (A) through (F), to
take into account any differential tax treatment of
securities issued by such eligible institution. For
purpose of this subparagraph, the term ``S corporation''
has the same meaning as in section 1361(a) of the
Internal Revenue Code of 1986.
(H) Repayment deadline.--The capital investment
received by an eligible institution under the Program
shall be evidenced by preferred stock or other financial
instrument that--
(i) includes, as a term and condition, that
the capital investment will--
(I) be repaid not later than the end
of the 10-year period beginning on the
date of the capital investment under the
Program; or
(II) <<NOTE: Terms.>> at the end of
such 10-year period, be subject to such
additional terms as the Secretary shall
prescribe, which shall include a
requirement that the stock or instrument
shall carry the highest dividend or
interest rate payable; and
(ii) provides that the term and condition
described under clause (i) shall not apply if the
application of that term and condition would
adversely affect the capital treatment of the
stock or financial instrument under current or
successor applicable capital provisions compared
to a capital instrument with identical terms other
than the term and condition described under clause
(i).
(I) Requirements on financial instruments issued by
a community development financial institution loan
fund.--Any equity equivalent capital issued to the
Treasury by a community development loan fund receiving
a capital investment under the Program shall provide
that the rate at which interest is payable shall be 2
percent per annum for 8 years. After 8 years, the rate
at which interest is payable shall be 9 percent.
[[Page 124 STAT. 2591]]
(6) <<NOTE: Applicability.>> Additional incentives to
repay.--The Secretary may, by regulation or guidance issued
under section 4104(9), establish repayment incentives in
addition to the incentive in paragraph (5)(E) that will apply to
new capital investments in a manner that the Secretary
determines to be consistent with the purposes of this subtitle.
(7) Capital purchase program refinance.--
(A) <<NOTE: Regulations.>> In general.--The
Secretary shall, in a manner that the Secretary
determines to be consistent with the purposes of this
subtitle, issue regulations and other guidance to permit
eligible institutions to refinance securities issued to
Treasury under the CDCI and the CPP for securities to be
issued under the Program.
(B) Prohibition on participation by non-paying cpp
participants.-- <<NOTE: Deadline.>> Subparagraph (A)
shall not apply to any eligible institution that has
missed more than one dividend payment due under the CPP.
For purposes of this subparagraph, a CPP dividend
payment that is submitted within 60 days of the due date
of such payment shall not be considered a missed
dividend payment.
(8) <<NOTE: Requirements.>> Outreach to minorities, women,
and veterans.--The Secretary shall require eligible institutions
receiving capital investments under the Program to provide
linguistically and culturally appropriate outreach and
advertising in the applicant pool describing the availability
and application process of receiving loans from the eligible
institution that are made possible by the Program through the
use of print, radio, television or electronic media outlets
which target organizations, trade associations, and individuals
that--
(A) represent or work within or are members of
minority communities;
(B) represent or work with or are women; and
(C) represent or work with or are veterans.
(9) Additional terms.--The Secretary may, by regulation or
guidance issued under section 4104(9), make modifications that
will apply to new capital investments in order to manage risks
associated with the administration of the Fund in a manner
consistent with the purposes of this subtitle.
(10) <<NOTE: Deadline.>> Minimum underwriting standards.--
The appropriate Federal banking agency for an eligible
institution that receives funds under the Program shall within
60 days issue guidance regarding prudent underwriting standards
that must be used for loans made by the eligible institution
using such funds.
SEC. 4104. ADDITIONAL AUTHORITIES OF THE SECRETARY.
The Secretary may take such actions as the Secretary deems necessary
to carry out the authorities in this subtitle, including, without
limitation, the following:
(1) The Secretary may use the services of any agency or
instrumentality of the United States or component thereof on a
reimbursable basis, and any such agency or instrumentality or
component thereof is authorized to provide services as requested
by the Secretary using all authorities vested in or delegated to
that agency, instrumentality, or component.
[[Page 124 STAT. 2592]]
(2) The Secretary may enter into contracts, including
contracts for services authorized by section 3109 of title 5,
United States Code.
(3) The Secretary may designate any bank, savings
association, trust company, security broker or dealer, asset
manager, or investment adviser as a financial agent of the
Federal Government and such institution shall perform all such
reasonable duties related to this subtitle as financial agent of
the Federal Government as may be required. The Secretary shall
have authority to amend existing agreements with financial
agents, entered into during the 2-year period before the date of
enactment of this Act, to perform reasonable duties related to
this subtitle.
(4) The Secretary may exercise any rights received in
connection with any preferred stock or other financial
instruments or assets purchased or acquired pursuant to the
authorities granted under this subtitle.
(5) Subject to section 4103(b)(3), the Secretary may manage
any assets purchased under this subtitle, including revenues and
portfolio risks therefrom.
(6) The Secretary may sell, dispose of, transfer, exchange
or enter into securities loans, repurchase transactions, or
other financial transactions in regard to, any preferred stock
or other financial instrument or asset purchased or acquired
under this subtitle, upon terms and conditions and at a price
determined by the Secretary.
(7) The Secretary may manage or prohibit conflicts of
interest that may arise in connection with the administration
and execution of the authorities provided under this subtitle.
(8) The Secretary may establish and use vehicles, subject to
supervision by the Secretary, to purchase, hold, and sell
preferred stock or other financial instruments and issue
obligations.
(9) The Secretary may, in consultation with the
Administrator of the Small Business Administration, issue such
regulations and other guidance as may be necessary or
appropriate to define terms or carry out the authorities or
purposes of this subtitle.
SEC. 4105. CONSIDERATIONS.
In exercising the authorities granted in this subtitle, the
Secretary shall take into consideration--
(1) increasing the availability of credit for small
businesses;
(2) providing funding to minority-owned eligible
institutions and other eligible institutions that serve small
businesses that are minority-, veteran-, and women-owned and
that also serve low- and moderate-income, minority, and other
underserved or rural communities;
(3) protecting and increasing American jobs;
(4) increasing the opportunity for small business
development in areas with high unemployment rates that exceed
the national average;
(5) ensuring that all eligible institutions may apply to
participate in the program established under this subtitle,
without discrimination based on geography;
(6) providing transparency with respect to use of funds
provided under this subtitle;
[[Page 124 STAT. 2593]]
(7) minimizing the cost to taxpayers of exercising the
authorities;
(8) promoting and engaging in financial education to would-
be borrowers; and
(9) providing funding to eligible institutions that serve
small businesses directly affected by the discharge of oil
arising from the explosion on and sinking of the mobile offshore
drilling unit Deepwater Horizon and small businesses in
communities that have suffered negative economic effects as a
result of that discharge with particular consideration to States
along the coast of the Gulf of Mexico.
SEC. 4106. REPORTS.
The Secretary shall provide to the appropriate committees of
Congress--
(1) within 7 days of the end of each month commencing with
the first month in which transactions are made under the
Program, a written report describing all of the transactions
made during the reporting period pursuant to the authorities
granted under this subtitle;
(2) <<NOTE: Effective date.>> after the end of March and
the end of September, commencing September 30, 2010, a written
report on all projected costs and liabilities, all operating
expenses, including compensation for financial agents, and all
transactions made by the Fund, which shall include participating
institutions and amounts each institution has received under the
Program; and
(3) within 7 days of the end of each calendar quarter
commencing with the first calendar quarter in which transactions
are made under the Program, a written report detailing how
eligible institutions participating in the Program have used the
funds such institutions received under the Program.
SEC. 4107. OVERSIGHT AND AUDITS.
(a) Inspector General Oversight.--The Inspector General of the
Department of the Treasury shall conduct, supervise, and coordinate
audits and investigations of the Program through the Office of Small
Business Lending Fund Program Oversight established under subsection
(b).
(b) Office of Small Business Lending Fund Program Oversight.--
(1) Establishment.--There is hereby established within the
Office of the Inspector General of the Department of the
Treasury a new office to be named the ``Office of Small Business
Lending Fund Program Oversight'' to provide oversight of the
Program.
(2) <<NOTE: Appointment.>> Leadership.--The Inspector
General shall appoint a Special Deputy Inspector General for
SBLF Program Oversight to lead the Office, with commensurate
staff, who shall report directly to the Inspector General and
who shall be responsible for the performance of all auditing and
investigative activities relating to the Program.
(3) Reporting.--
(A) In general.--The Inspector General shall issue a
report no less than two times a year to the Congress and
the Secretary devoted to the oversight provided by the
Office, including any recommendations for improvements
to the Program.
[[Page 124 STAT. 2594]]
(B) Recommendations.--With respect to any
deficiencies identified in a report under subparagraph
(A), the Secretary shall either--
(i) take actions to address such deficiencies;
or
(ii) <<NOTE: Certification.>> certify to the
appropriate committees of Congress that no action
is necessary or appropriate.
(4) Coordination.--The Inspector General, in maximizing the
effectiveness of the Office, shall work with other Offices of
Inspector General, as appropriate, to minimize duplication of
effort and ensure comprehensive oversight of the Program.
(5) <<NOTE: Time period.>> Termination.--The Office shall
terminate at the end of the 6-month period beginning on the date
on which all capital investments are repaid under the Program or
the date on which the Secretary determines that any remaining
capital investments will not be repaid.
(6) Definitions.--For purposes of this subsection:
(A) Office.--The term ``Office'' means the Office of
Small Business Lending Fund Program Oversight
established under paragraph (1).
(B) Inspector general.--The term ``Inspector
General'' means the Inspector General of the Department
of the Treasury.
(c) <<NOTE: Deadline. Reports.>> GAO Audit.--The Comptroller
General of the United States shall perform an annual audit of the
Program and issue a report to the appropriate committees of Congress
containing the results of such audit.
(d) Required Certifications.--
(1) Eligible institution certification.--Each eligible
institution that participates in the Program must certify that
such institution is in compliance with the requirements of
section 103.121 of title 31, Code of Federal Regulations, a
regulation that, at a minimum, requires financial institutions,
as that term is defined in 31 U.S.C. 5312(a)(2) and (c)(1)(A),
to implement reasonable procedures to verify the identity of any
person seeking to open an account, to the extent reasonable and
practicable, maintain records of the information used to verify
the person's identity, and determine whether the person appears
on any lists of known or suspected terrorists or terrorist
organizations provided to the financial institution by any
government agency.
(2) Loan recipients.--With respect to funds received by an
eligible institution under the Program, any business receiving a
loan from the eligible institution using such funds after the
date of the enactment of this Act shall certify to such eligible
institution that the principals of such business have not been
convicted of a sex offense against a minor (as such terms are
defined in section 111 of the Sex Offender Registration and
Notification Act (42 U.S.C. 16911)).
(e) Prohibition on Pornography.--None of the funds made available
under this subtitle may be used to pay the salary of any individual
engaged in activities related to the Program who has been officially
disciplined for violations of subpart G of the Standards of Ethical
Conduct for Employees of the Executive Branch for viewing, downloading,
or exchanging pornography, including child pornography, on a Federal
Government computer or while performing official Federal Government
duties.
[[Page 124 STAT. 2595]]
SEC. 4108. CREDIT REFORM; FUNDING.
(a) Credit Reform.--The cost of purchases of preferred stock and
other financial instruments made as capital investments under this
subtitle shall be determined as provided under the Federal Credit Reform
Act of 1990 (2 U.S.C. 661 et seq.).
(b) <<NOTE: Appropriation authorization.>> Funds Made Available.--
There are hereby appropriated, out of funds in the Treasury not
otherwise appropriated, such sums as may be necessary to pay the costs
of $30,000,000,000 of capital investments in eligible institutions,
including the costs of modifying such investments, and reasonable costs
of administering the program of making, holding, managing, and selling
the capital investments.
SEC. 4109. TERMINATION AND CONTINUATION OF AUTHORITIES.
(a) Termination of Investment Authority.--The authority to make
capital investments in eligible institutions, including commitments to
purchase preferred stock or other instruments, provided under this
subtitle shall terminate 1 year after the date of enactment of this Act.
(b) Continuation of Other Authorities.--The authorities of the
Secretary under section 4104 shall not be limited by the termination
date in subsection (a).
SEC. 4110. PRESERVATION OF AUTHORITY.
Nothing in this subtitle may be construed to limit the authority of
the Secretary under any other provision of law.
SEC. 4111. ASSURANCES.
(a) Small Business Lending Fund Separate From TARP.--The Small
Business Lending Fund Program is established as separate and distinct
from the Troubled Asset Relief Program established by the Emergency
Economic Stabilization Act of 2008. An institution shall not, by virtue
of a capital investment under the Small Business Lending Fund Program,
be considered a recipient of the Troubled Asset Relief Program.
(b) Change in Law.--If, after a capital investment has been made in
an eligible institution under the Program, there is a change in law that
modifies the terms of the investment or program in a materially adverse
respect for the eligible institution, the eligible institution may,
after consultation with the appropriate Federal banking agency for the
eligible institution, repay the investment without impediment.
SEC. 4112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED, VETERAN-
OWNED, AND MINORITY-OWNED BUSINESSES.
(a) Study.--The Secretary shall conduct a study of the impact of the
Program on women-owned businesses, veteran-owned businesses, and
minority-owned businesses.
(b) Report.--Not later than one year after the date of enactment of
this Act, the Secretary shall submit to Congress a report on the results
of the study conducted pursuant to subsection (a). To the extent
possible, the Secretary shall disaggregate the results of such study by
ethnic group and gender.
(c) Information Provided to the Secretary.--Eligible institutions
that participate in the Program shall provide the Secretary with such
information as the Secretary may require to carry out the study required
by this section.
[[Page 124 STAT. 2596]]
SEC. 4113. SENSE OF CONGRESS.
It is the sense of Congress that the Federal Deposit Insurance
Corporation and other bank regulators are sending mixed messages to
banks regarding regulatory capital requirements and lending standards,
which is a contributing cause of decreased small business lending and
increased regulatory uncertainty at community banks.
Subtitle B--Other Provisions
PART I-- <<NOTE: Export Promotion Act of 2010.>> SMALL BUSINESS EXPORT
PROMOTION INITIATIVES
SEC. 4221. <<NOTE: 15 USC 271 note.>> SHORT TITLE.
This part may be cited as the ``Export Promotion Act of 2010''.
SEC. 4222. GLOBAL BUSINESS DEVELOPMENT AND PROMOTION ACTIVITIES OF
THE DEPARTMENT OF COMMERCE.
(a) Increase in Employees With Responsibility for Global Business
Development and Promotion Activities.--
(1) <<NOTE: Time period. Effective date.>> In general.--
During the 24-month period beginning on the date of the
enactment of this Act, the Secretary of Commerce shall increase
the number of full-time departmental employees whose primary
responsibilities involve promoting or facilitating participation
by United States businesses in the global marketplace and
facilitating the entry into, or expansion of, such participation
by United States businesses. In carrying out this subsection,
the Secretary shall ensure that--
(A) the cohort of such employees is increased by not
less than 80 persons; and
(B) a substantial portion of the increased cohort is
stationed outside the United States.
(2) Enhanced focus on united states small- and medium-sized
businesses.--In carrying out this subsection, the Secretary
shall take such action as may be necessary to ensure that the
activities of the Department of Commerce relating to promoting
and facilitating participation by United States businesses in
the global marketplace include promoting and facilitating such
participation by small and medium-sized businesses in the United
States.
(3) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary for each of the fiscal years
2011 and 2012 such sums as may be necessary to carry out this
section.
(b) Additional Funding for Global Business Development and Promotion
Activities of the Department of Commerce.--
(1) <<NOTE: Appropriation authorization.>> In general.--
There are authorized to be appropriated to the Secretary of
Commerce for the period beginning on the date of the enactment
of this Act and ending 18 months thereafter, $30,000,000 to
promote or facilitate participation by United States businesses
in the global marketplace and facilitating the entry into, or
expansion of, such participation by United States businesses.
(2) Requirements.--In obligating and expending the funds
authorized to be appropriated by paragraph (1), the Secretary of
Commerce shall give preference to activities that--
[[Page 124 STAT. 2597]]
(A) assist small- and medium-sized businesses in the
United States; and
(B) the Secretary determines will create or sustain
the greatest number of jobs in the United States and
obtain the maximum return on investment.
SEC. 4223. ADDITIONAL FUNDING TO IMPROVE ACCESS TO GLOBAL MARKETS
FOR RURAL BUSINESSES.
(a) In General.--There are authorized to be appropriated to the
Secretary of Commerce $5,000,000 for each of the fiscal years 2011 and
2012 for improving access to the global marketplace for goods and
services provided by rural businesses in the United States.
(b) Requirements.--In obligating and expending the funds authorized
to be appropriated by subsection (a), the Secretary of Commerce shall
give preference to activities that--
(1) assist small- and medium-sized businesses in the United
States; and
(2) the Secretary determines will create or sustain the
greatest number of jobs in the United States and obtain the
maximum return on investment.
SEC. 4224. ADDITIONAL FUNDING FOR THE EXPORTECH PROGRAM.
(a) <<NOTE: Time period.>> In General.--There are authorized to be
appropriated to the Secretary of Commerce $11,000,000 for the period
beginning on the date of the enactment of this Act and ending 18 months
thereafter, to expand ExporTech, a joint program of the Hollings
Manufacturing Partnership Program and the Export Assistance Centers of
the Department of Commerce.
(b) Requirements.--In obligating and expending the funds authorized
to be appropriated by subsection (a), the Secretary of Commerce shall
give preference to activities that--
(1) assist small- and medium-sized businesses in the United
States; and
(2) the Secretary determines will create or sustain the
greatest number of jobs in the United States and obtain the
maximum return on investment.
SEC. 4225. ADDITIONAL FUNDING FOR THE MARKET DEVELOPMENT
COOPERATOR PROGRAM OF THE DEPARTMENT OF
COMMERCE.
(a) <<NOTE: Time period.>> In General.--There are authorized to be
appropriated to the Secretary of Commerce for the period beginning on
the date of the enactment of this Act and ending 18 months thereafter,
$15,000,000 for the Manufacturing and Services unit of the International
Trade Administration--
(1) to establish public-private partnerships under the
Market Development Cooperator Program of the International Trade
Administration; and
(2) to underwrite a portion of the start-up costs for new
projects carried out under that Program to strengthen the
competitiveness and market share of United States industry, not
to exceed, for each such project, the lesser of--
(A) \1/3\ of the total start-up costs for the
project; or
(B) $500,000.
(b) Requirements.--In obligating and expending the funds authorized
to be appropriated by subsection (a), the Secretary of Commerce shall
give preference to activities that--
[[Page 124 STAT. 2598]]
(1) assist small- and medium-sized businesses in the United
States; and
(2) the Secretary determines will create or sustain the
greatest number of jobs in the United States and obtain the
maximum return on investment.
SEC. 4226. HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM; TECHNOLOGY
INNOVATION PROGRAM.
(a) Hollings Manufacturing Partnership Program.--Section 25(f) of
the National Institute of Standards and Technology Act (15 U.S.C.
278k(f)) is amended by adding at the end the following:
``(7) Global marketplace projects.--In making awards under
this subsection, the Director, in consultation with the
Manufacturing Extension Partnership Advisory Board and the
Secretary of Commerce, may--
``(A) take into consideration whether an application
has significant potential for enhancing the
competitiveness of small and medium-sized United States
manufacturers in the global marketplace; and
``(B) give a preference to applications for such
projects to the extent the Director deems appropriate,
taking into account the broader purposes of this
subsection.''.
(b) <<NOTE: Grants. Contracts. 15 USC 278n note.>> Technology
Innovation Program.--In awarding grants, cooperative agreements, or
contracts under section 28 of the National Institute of Standards and
Technology Act (15 U.S.C. 278n), in addition to the award criteria set
forth in subsection (c) of that section, the Director of the National
Institute of Standards and Technology may take into consideration
whether an application has significant potential for enhancing the
competitiveness of small- and medium-sized businesses in the United
States in the global marketplace. <<NOTE: Consultation.>> The Director
shall consult with the Technology Innovation Program Advisory Board and
the Secretary of Commerce in implementing this subsection.
SEC. 4227. SENSE OF THE SENATE CONCERNING FEDERAL COLLABORATION
WITH STATES ON EXPORT PROMOTION ISSUES.
It is the sense of the Senate that the Secretary of Commerce should
enhance Federal collaboration with the States on export promotion issues
by--
(1) providing the necessary training to the staff at State
international trade agencies to enable them to assist the United
States and Foreign Commercial Service (established by section
2301 of the Export Enhancement Act of 1988 (15 U.S.C. 4721)) in
providing counseling and other export services to businesses in
their communities; and
(2) entering into agreements with State international trade
agencies for those agencies to deliver export promotion services
in their local communities in order to extend the outreach of
United States and Foreign Commercial Service programs.
SEC. 4228. <<NOTE: Columbia. Republic of Korea. Panama.>> REPORT
ON TARIFF AND NONTARIFF BARRIERS.
Not later than 90 days after the date of the enactment of this Act,
the Secretary of Commerce, in consultation with the United States Trade
Representative and other appropriate entities, shall report to Congress
on the tariff and nontariff barriers imposed by Colombia, the Republic
of Korea, and Panama with respect
[[Page 124 STAT. 2599]]
to exports of articles from the United States, including articles
exported or produced by small- and medium-sized businesses in the United
States.
PART II--MEDICARE FRAUD
SEC. 4241. <<NOTE: 42 USC 1320a-7m.>> USE OF PREDICTIVE MODELING
AND OTHER ANALYTICS TECHNOLOGIES TO
IDENTIFY AND PREVENT WASTE, FRAUD, AND
ABUSE IN THE MEDICARE FEE-FOR-SERVICE
PROGRAM.
(a) Use in the Medicare Fee-for-service Program.--The Secretary
shall use predictive modeling and other analytics technologies (in this
section referred to as ``predictive analytics technologies'') to
identify improper claims for reimbursement and to prevent the payment of
such claims under the Medicare fee-for-service program.
(b) Predictive Analytics Technologies Requirements.--The predictive
analytics technologies used by the Secretary shall--
(1) capture Medicare provider and Medicare beneficiary
activities across the Medicare fee-for-service program to
provide a comprehensive view across all providers,
beneficiaries, and geographies within such program in order to--
(A) identify and analyze Medicare provider networks,
provider billing patterns, and beneficiary utilization
patterns; and
(B) identify and detect any such patterns and
networks that represent a high risk of fraudulent
activity;
(2) be integrated into the existing Medicare fee-for-service
program claims flow with minimal effort and maximum efficiency;
(3) be able to--
(A) analyze large data sets for unusual or
suspicious patterns or anomalies or contain other
factors that are linked to the occurrence of waste,
fraud, or abuse;
(B) undertake such analysis before payment is made;
and
(C) prioritize such identified transactions for
additional review before payment is made in terms of the
likelihood of potential waste, fraud, and abuse to more
efficiently utilize investigative resources;
(4) capture outcome information on adjudicated claims for
reimbursement to allow for refinement and enhancement of the
predictive analytics technologies on the basis of such outcome
information, including post-payment information about the
eventual status of a claim; and
(5) prevent the payment of claims for reimbursement that
have been identified as potentially wasteful, fraudulent, or
abusive until such time as the claims have been verified as
valid.
(c) Implementation Requirements.--
(1) <<NOTE: Deadline.>> Request for proposals.--Not later
than January 1, 2011, the Secretary shall issue a request for
proposals to carry out this section during the first year of
implementation. To the extent the Secretary determines
appropriate--
(A) the initial request for proposals may include
subsequent implementation years; and
[[Page 124 STAT. 2600]]
(B) the Secretary may issue additional requests for
proposals with respect to subsequent implementation
years.
(2) <<NOTE: Contracts.>> First implementation year.--The
initial request for proposals issued under paragraph (1) shall
require the contractors selected to commence using predictive
analytics technologies on July 1, 2011, in the 10 States
identified by the Secretary as having the highest risk of waste,
fraud, or abuse in the Medicare fee-for-service program.
(3) <<NOTE: Applicability.>> Second implementation year.--
Based on the results of the report and recommendation required
under subsection (e)(1)(B), the Secretary shall expand the use
of predictive analytics technologies on October 1, 2012, to
apply to an additional 10 States identified by the Secretary as
having the highest risk of waste, fraud, or abuse in the
Medicare fee-for-service program, after the States identified
under paragraph (2).
(4) Third implementation year.--Based on the results of the
report and recommendation required under subsection (e)(2), the
Secretary shall expand the use of predictive analytics
technologies on January 1, 2014, to apply to the Medicare fee-
for-service program in any State not identified under paragraph
(2) or (3) and the commonwealths and territories.
(5) Fourth implementation year.--Based on the results of the
report and recommendation required under subsection (e)(3), the
Secretary shall expand the use of predictive analytics
technologies, beginning April 1, 2015, to apply to Medicaid and
CHIP. To the extent the Secretary determines appropriate, such
expansion may be made on a phased-in basis.
(6) <<NOTE: Certification. Time period.>> Option for
refinement and evaluation.--If, with respect to the first,
second, or third implementation year, the Inspector General of
the Department of Health and Human Services certifies as part of
the report required under subsection (e) for that year no or
only nominal actual savings to the Medicare fee-for-service
program, the Secretary may impose a moratorium, not to exceed 12
months, on the expansion of the use of predictive analytics
technologies under this section for the succeeding year in order
to refine the use of predictive analytics technologies to
achieve more than nominal savings before further expansion. If a
moratorium is imposed in accordance with this paragraph, the
implementation dates applicable for the succeeding year or years
shall be adjusted to reflect the length of the moratorium
period.
(d) Contractor Selection, Qualifications, and Data Access
Requirements.--
(1) Selection.--
(A) In general.--The Secretary shall select
contractors to carry out this section using competitive
procedures as provided for in the Federal Acquisition
Regulation.
(B) Number of contractors.--The Secretary shall
select at least 2 contractors to carry out this section
with respect to any year.
(2) Qualifications.--
(A) In general.--The Secretary shall enter into a
contract under this section with an entity only if the
entity--
(i) has leadership and staff who--
[[Page 124 STAT. 2601]]
(I) have the appropriate clinical
knowledge of, and experience with, the
payment rules and regulations under the
Medicare fee-for-service program; and
(II) have direct management
experience and proficiency utilizing
predictive analytics technologies
necessary to carry out the requirements
under subsection (b); or
(ii) has a contract, or will enter into a
contract, with another entity that has leadership
and staff meeting the criteria described in clause
(i).
(B) Conflict of interest.--The Secretary may only
enter into a contract under this section with an entity
to the extent that the entity complies with such
conflict of interest standards as are generally
applicable to Federal acquisition and procurement.
(3) Data access.--The Secretary shall provide entities with
a contract under this section with appropriate access to data
necessary for the entity to use predictive analytics
technologies in accordance with the contract.
(e) <<NOTE: Public information.>> Reporting Requirements.--
(1) First implementation year report.--Not later than 3
months after the completion of the first implementation year
under this section, the Secretary shall submit to the
appropriate committees of Congress and make available to the
public a report that includes the following:
(A) A description of the implementation of the use
of predictive analytics technologies during the year.
(B) A certification of the Inspector General of the
Department of Health and Human Services that--
(i) specifies the actual and projected savings
to the Medicare fee-for-service program as a
result of the use of predictive analytics
technologies, including estimates of the amounts
of such savings with respect to both improper
payments recovered and improper payments avoided;
(ii) the actual and projected savings to the
Medicare fee-for-service program as a result of
such use of predictive analytics technologies
relative to the return on investment for the use
of such technologies and in comparison to other
strategies or technologies used to prevent and
detect fraud, waste, and abuse in the Medicare
fee-for-service program; and
(iii) includes recommendations regarding--
(I) whether the Secretary should
continue to use predictive analytics
technologies;
(II) whether the use of such
technologies should be expanded in
accordance with the requirements of
subsection (c); and
(III) any modifications or
refinements that should be made to
increase the amount of actual or
projected savings or mitigate any
adverse impact on Medicare beneficiaries
or providers.
(C) An analysis of the extent to which the use of
predictive analytics technologies successfully prevented
and detected waste, fraud, or abuse in the Medicare fee-
for-service program.
[[Page 124 STAT. 2602]]
(D) A review of whether the predictive analytics
technologies affected access to, or the quality of,
items and services furnished to Medicare beneficiaries.
(E) A review of what effect, if any, the use of
predictive analytics technologies had on Medicare
providers.
(F) Any other items determined appropriate by the
Secretary.
(2) Second year implementation report.--Not later than 3
months after the completion of the second implementation year
under this section, the Secretary shall submit to the
appropriate committees of Congress and make available to the
public a report that includes, with respect to such year, the
items required under paragraph (1) as well as any other
additional items determined appropriate by the Secretary with
respect to the report for such year.
(3) Third year implementation report.--Not later than 3
months after the completion of the third implementation year
under this section, the Secretary shall submit to the
appropriate committees of Congress, and make available to the
public, a report that includes with respect to such year, the
items required under paragraph (1), as well as any other
additional items determined appropriate by the Secretary with
respect to the report for such year, and the following:
(A) An analysis of the cost-effectiveness and
feasibility of expanding the use of predictive analytics
technologies to Medicaid and CHIP.
(B) An analysis of the effect, if any, the
application of predictive analytics technologies to
claims under Medicaid and CHIP would have on States and
the commonwealths and territories.
(C) Recommendations regarding the extent to which
technical assistance may be necessary to expand the
application of predictive analytics technologies to
claims under Medicaid and CHIP, and the type of any such
assistance.
(f) Independent Evaluation and Report.--
(1) <<NOTE: Grants. Contracts.>> Evaluation.--Upon
completion of the first year in which predictive analytics
technologies are used with respect to claims under Medicaid and
CHIP, the Secretary shall, by grant, contract, or interagency
agreement, conduct an independent evaluation of the use of
predictive analytics technologies under the Medicare fee-for-
service program and Medicaid and CHIP. The evaluation shall
include an analysis with respect to each such program of the
items required for the third year implementation report under
subsection (e)(3).
(2) Report.--Not later than 18 months after the evaluation
required under paragraph (1) is initiated, the Secretary shall
submit a report to Congress on the evaluation that shall include
the results of the evaluation, the Secretary's response to such
results and, to the extent the Secretary determines appropriate,
recommendations for legislation or administrative actions.
(g) Waiver Authority.--The Secretary may waive such provisions of
titles XI, XVIII, XIX, and XXI of the Social Security Act, including
applicable prompt payment requirements under titles XVIII and XIX of
such Act, as the Secretary determines to be appropriate to carry out
this section.
(h) Funding.--
[[Page 124 STAT. 2603]]
(1) Appropriation.--Out of any funds in the Treasury not
otherwise appropriated, there is appropriated to the Secretary
to carry out this section, $100,000,000 for the period beginning
January 1, 2011, to remain available until expended.
(2) Reservations.--
(A) Independent evaluation.--The Secretary shall
reserve not more than 5 percent of the funds
appropriated under paragraph (1) for purposes of
conducting the independent evaluation required under
subsection (f).
(B) Application to medicaid and chip.--The Secretary
shall reserve such portion of the funds appropriated
under paragraph (1) as the Secretary determines
appropriate for purposes of providing assistance to
States for administrative expenses in the event of the
expansion of predictive analytics technologies to claims
under Medicaid and CHIP.
(i) Definitions.--In this section:
(1) Commonwealths and territories.--The term ``commonwealth
and territories'' includes the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and any other territory or possession
of the United States in which the Medicare fee-for-service
program, Medicaid, or CHIP operates.
(2) CHIP.--The term ``CHIP'' means the Children's Health
Insurance Program established under title XXI of the Social
Security Act (42 U.S.C. 1397aa et seq.).
(3) Medicaid.--The term ``Medicaid'' means the program to
provide grants to States for medical assistance programs
established under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).
(4) Medicare beneficiary.--The term ``Medicare beneficiary''
means an individual enrolled in the Medicare fee-for-service
program.
(5) Medicare fee-for-service program.--The term ``Medicare
fee-for-service program'' means the original medicare fee-for-
service program under parts A and B of title XVIII of the Social
Security Act (42 U.S.C. 1395 et seq.).
(6) Medicare provider.--The term ``Medicare provider'' means
a provider of services (as defined in subsection (u) of section
1861 of the Social Security Act (42 U.S.C. 1395x)) and a
supplier (as defined in subsection (d) of such section).
(7) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services, acting through the Administrator
of the Centers for Medicare & Medicaid Services.
(8) State.--The term ``State'' means each of the 50 States
and the District of Columbia.
TITLE V--BUDGETARY PROVISIONS
SEC. 5001. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying with
the Statutory Pay-As-You-Go-Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the
[[Page 124 STAT. 2604]]
Congressional Record by the Chairman of the Senate Budget Committee,
provided that such statement has been submitted prior to the vote on
passage.
Approved September 27, 2010.
LEGISLATIVE HISTORY--H.R. 5297:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 111-499 (Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 156 (2010):
June 16, 17, considered and passed House.
June 29, July 19, 21, 22, 27-29, Aug. 5, Sept. 14-16,
considered and passed Senate, amended.
Sept. 23, House concurred in Senate amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010):
Sept. 27, Presidential remarks.
<all>
Hatch motion to suspend Rule XXII to permit the consideration of a motion to commit the bill to the Committee on Finance with instructions made in Senate. (consideration: CR S7149-7150)
Grassley motion to suspend Rule XXII to permit the consideration of amendment SA 4433 not agreed to in Senate by Yea-Nay Vote. 41 - 58. Record Vote Number: 234.
Roll Call #234 (Senate)Hatch motion to suspend Rule XXII to permit a motion to commit to the Committee on Finance with instructions not agreed to by Yea-Nay Vote. 51 - 48. Record Vote Number: 235.
Roll Call #235 (Senate)Third cloture on the bill invoked in Senate by Yea-Nay Vote. 61 - 38. Record Vote Number: 236. (consideration: CR S7158; text: CR S7158)
Roll Call #236 (Senate)Passed/agreed to in Senate: Passed Senate with an amendment by Yea-Nay Vote. 61 - 38. Record Vote Number: 237.
Roll Call #237 (Senate)Passed Senate with an amendment by Yea-Nay Vote. 61 - 38. Record Vote Number: 237.
Roll Call #237 (Senate)Message on Senate action sent to the House.
Ms. Bean moved that the House agree to the Senate amendment. (consideration: CR H6905-6939)
Enacted as Public Law 111-240
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DEBATE - Pursuant to the provisions of H.Res. 1640, the House proceeded with one hour of debate on the motion to concur in the Senate amendment to the bill H.R. 5297.
The previous question was ordered pursuant to the rule. (consideration: CR H6938)
Resolving differences -- House actions: On motion that the House agree to the Senate amendment Agreed to by the Yeas and Nays: 237 - 187 (Roll no. 539).(text as House agreed to Senate amendment: CR H6905-6930)
Roll Call #539 (House)On motion that the House agree to the Senate amendment Agreed to by the Yeas and Nays: 237 - 187 (Roll no. 539). (text as House agreed to Senate amendment: CR H6905-6930)
Roll Call #539 (House)Motion to reconsider laid on the table Agreed to without objection.
Cleared for White House.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 111-240.
Became Public Law No: 111-240.