Small Business Asset Investment and Modernization (AIM) Act of 2010 - Amends the Small Business Investment Act of 1958 concerning the 504 program (Small Business Administration [SBA] financings to small businesses through certified development companies) to increase maximum program loan amounts.
Authorizes the Administrator of the SBA, from the date of enactment of this Act through FY2012, to approve under such program the refinancing of indebtedness that is secured by a lien on commercial real estate or equipment of a small business, under specified terms and conditions. Limits to $7.5 billion the total amount of such financing in a fiscal year. Authorizes the Administrator, in order to carry out such program, to make personnel appointments of at least one year and not more than six years. Allows the Administrator to eliminate the pension offset for the reemployment of retired federal employees for such purposes.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5412 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5412
To amend the Small Business Investment Act of 1958 to increase maximum
loan amounts under the program in title V of that Act, to provide
temporary authority for debt refinancing of commercial real estate, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 26, 2010
Ms. Bean (for herself, Mrs. Dahlkemper, Mr. Peters, Mr. Murphy of New
York, Mr. Quigley, Mr. Bright, Ms. Markey of Colorado, Mr. Michaud, Mr.
Lipinski, Mr. Ellsworth, Mr. Polis of Colorado, Mr. Cooper, Mr. Klein
of Florida, Mr. Moore of Kansas, Mr. Hill, Mr. Welch, and Mrs.
Halvorson) introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Investment Act of 1958 to increase maximum
loan amounts under the program in title V of that Act, to provide
temporary authority for debt refinancing of commercial real estate, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Asset Investment and
Modernization (AIM) Act of 2010''.
SEC. 2. 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. 3. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT BUSINESS
LOAN PROGRAM.
Section 502 of the Small Business Investment Act of 1958 (15 U.S.C.
696) is amended by adding at the end the following:
``(8) Temporary authority for debt refinancing of
commercial real estate.--
``(A) In general.--During the period beginning on
the date of enactment of this paragraph and ending on
September 30, 2012, notwithstanding paragraph (7), the
Administrator may approve, for financing under this
title, the refinancing of indebtedness that is secured
by a lien on commercial real estate or equipment of a
small business concern under such terms and conditions
as the Administrator determines appropriate, except at
a minimum such terms and conditions shall include the
following:
``(i) The existing indebtedness is maturing
not more than one year after the loan approval
date.
``(ii) The proceeds of the existing
indebtedness were used to acquire land,
including a building situated thereon, to
construct a building thereon, or to purchase
equipment.
``(iii) The small business concern has been
current on all payments due on the existing
indebtedness for a period beginning on a date
that is not less than 1 year before the date of
refinancing and ending on the date of
refinancing.
``(iv) At the time of refinancing, the lien
shall be assigned or released in a manner that
ensures that the financing under this title is
in the same lien position as the existing
indebtedness.
``(v) The existing indebtedness was
incurred for the benefit of the small business
concern.
``(vi) The financing under this title will
be used only for refinancing existing
indebtedness or costs relating to such
refinancing.
``(vii) The amount being refinanced may not
exceed 90 percent of the appraised value of the
commercial real estate or equipment on the date
of refinancing or 100 percent of the
outstanding principal amount of the existing
indebtedness, whichever is less, plus allowable
closing costs as determined by the
Administrator.
``(viii) Notwithstanding any other
provision of this title, for a refinancing
under this paragraph--
``(I) not less than 50 percent of
the appraised value of the commercial
real estate or equipment on the date of
refinancing shall come from the
institutions described in subclauses
(I), (II) or (III) of paragraph
(3)(B)(i): Provided, That if the
indebtedness being refinanced pursuant
to this paragraph is held by such an
institution, or an affiliate thereof,
that is providing funds for the
refinancing, the institution shall
contribute not less than 70 percent of
such appraised value of the commercial
real estate or equipment; and
``(II) the remaining funds needed
for the refinancing (including closing
costs) shall come from the development
company.
``(ix) In addition to the other fees
imposed under this title, the Administrator
shall assess, collect, and retain such annual
fees in amounts necessary to reduce to zero the
cost (as that term is defined in section 502 of
the Federal Credit Reform Act of 1990) to the
Administrator of making guarantees under the
authority of section 503(a) with respect to
refinancings under this paragraph.
``(x) The temporary fee elimination
authorized under section 501(b) of the American
Recovery and Reinvestment Act of 2009, Public
Law 111-5, shall not apply to any refinancing
made under this paragraph.
``(xi) No fee reduction or elimination
applicable to loans under this title shall
apply to loans under this paragraph.
``(xii) No portion of the indebtedness may
be subject to a guarantee by a Federal agency.
``(xiii) The development company may charge
the small business concern a processing fee of
up to 50 basis points more than the amount that
the Administrator authorizes under section
120.971(a)(1) of title 13, Code of Federal
Regulations, as in effect on January 1, 2010.
``(B) Total amount of loans.--The Administrator may
provide not more than a total of $7,500,000,000 of
financing under this paragraph for each fiscal year.
``(C) Nondelegation.--Notwithstanding section
508(e) of this title, the Administrator may not permit
a premier certified lender to approve or disapprove an
application for assistance under this paragraph.
``(D) Term appointments.--
``(i) To carry out the authority under this
paragraph, the Administrator may authorize term
appointments within the Administration under
subchapter I of chapter 33 of title 5, United
States Code, for a period of not less than 1
year and not more than 6 years.
``(ii) Notwithstanding chapter 33 of title
5, United States Code, or any other provision
of law relating to the examination,
certification, and appointment of individuals
in the competitive service, the Administrator
may convert an employee serving under a term
appointment to a permanent appointment in the
competitive service within the Administration
without further competition if--
``(I) such individual was appointed
under open, competitive examination
under subchapter I of chapter 33 of
title 5, United States Code, to the
term position;
``(II) the announcement for the
term appointment from which the
conversion is made stated that there
was potential for subsequent conversion
to a career-conditional or career
appointment;
``(III) the employee has completed
at least 2 years of current continuous
service under a term appointment in the
competitive service;
``(IV) the employee's performance
under such term appointment was at
least fully successful or equivalent;
and
``(V) the position to which such
employee is being converted under this
section is in the same occupational
series, is in the same geographic
location, and provides no greater
promotion potential than the term
position for which the competitive
examination was conducted.
``(iii) Notwithstanding chapter 33 of title
5, United States Code, or any other provision
of law relating to the examination,
certification, and appointment of individuals
in the competitive service, the Administrator
may convert an employee serving under a term
appointment to a permanent appointment in the
competitive service within the Administration
through internal competitive promotion
procedures if the conditions under subclauses
(I) through (IV) of subparagraph (D)(ii) are
met.
``(iv) An employee converted under this
subparagraph becomes a career-conditional
employee, unless the employee has otherwise
completed the service requirements for career
tenure.
``(v) An employee converted to career or
career-conditional employment under this
subparagraph acquires competitive status upon
conversion.
``(E) Elimination of pension offset for certain
rehired federal retirees.--
``(i) In general.--To carry out the
authority under this paragraph, the
Administrator may waive the application of
section 8344 or 8468 of title 5, United States
Code, on a case-by-case basis for employment of
an annuitant.
``(ii) Procedures.--The Administrator shall
prescribe procedures for the exercise of
authority under this subparagraph, including--
``(I) criteria for any exercise of
authority; and
``(II) procedures for a delegation
of authority.
``(iii) Effect of waiver.--An employee as
to whom a waiver under this subparagraph is in
effect shall not be considered an employee for
purposes of subchapter III of chapter 83, or
chapter 84, of title 5, United States Code.
``(F) Emergency rulemaking authority.--
``(i) The Administrator shall--
``(I) not later than 90 days after
the date of enactment of the Small
Business Asset Investment and
Modernization (AIM) Act of 2010,
without providing notice or opportunity
for comment, issue interim regulations
implementing this paragraph; and
``(II) not later than 180 days
after the date of enactment of the
Small Business Asset Investment and
Modernization (AIM) Act of 2010, after
providing notice and opportunity for
comment, issue final regulations
implementing this paragraph.
``(ii) The interim regulations issued under
clause (i)(I) shall cease to be effective on
the date that the Administrator issues final
regulations under clause (i)(II).''.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR H3842-3843)
Referred to the House Committee on Small Business.
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