Section 1 Short title
This Act may be cited as the “Increasing Small Business Lending Act”.
Increasing Small Business Lending Act
A BILL
To increase lending to small businesses.
Sec. 2 Fee reductions
Administrative provisions small business administration— Until September 30, 2015, and to the extent that the cost of such elimination or reduction of fees is offset by appropriations, with respect to each loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and section 3 of this Act, for which the application is approved on or after the date of enactment of this Act, the Administrator shall—
in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)), collect no fee or reduce fees to the maximum extent possible; and
in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), collect no fee or reduce fees to the maximum extent possible.
Temporary fee elimination for the 504 loan program—
In general— Until September 30, 2015, and to the extent the cost of such elimination in fees is offset by appropriations, with respect to each project or loan guaranteed by the Administrator pursuant to title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an application is approved or pending approval on or after the date of enactment of this Act—
the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no fee; and
a development company shall, in lieu of the processing fee under section 120.971(a)(1) of title 13, Code of Federal Regulations (relating to fees paid by borrowers), or any successor thereto, collect no fee.
Reimbursement for waived fees—
In general— To the extent that the cost of such payments is offset by appropriations, the Administrator shall reimburse each development company that does not collect a processing fee pursuant to paragraph (1)(B).
Amount— The payment to a development company under subparagraph (A) shall be in an amount equal to 1.5 percent of the net debenture proceeds for which the development company does not collect a processing fee pursuant to paragraph (1)(B).
Application of fee eliminations— To the extent that amounts are made available to the Administrator for the purpose of fee eliminations or reductions under subsection (a), the Administrator shall—
first use any amounts provided to eliminate or reduce fees paid by small business borrowers under clauses (i) through (iii) of paragraph (18)(A), to the maximum extent possible;
then use any amounts provided to eliminate or reduce fees under paragraph (23)(A) paid by small business lenders with assets less than $1,000,000,000 as of the date of enactment; and
then use any remaining amounts appropriated under this Act to reduce fees paid by small business lenders other than those with assets less than $1,000,000,000.
Sec. 3 Economic stimulus lending program for small businesses
In general— The Administrator may guarantee up to 90 percent of qualifying small business loans made by eligible lenders.
Definitions— For purposes of this section:
The term “Administrator” means the Administrator of the Small Business Administration.
The term “qualifying small business loan” means any loan to a small business concern pursuant to section 7(a) of the Small Business Act (15 U.S.C. 636) or title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 and following) except for such loans made under section 7(a)(31).
The term “small business concern” has the same meaning as provided by section 3 of the Small Business Act (15 U.S.C. 632).
Nonapplication of section to certain loans—
Aliens unlawfully present in the united states— A loan guarantee may not be made under this section for a loan made to a concern if an individual who is an alien unlawfully present in the United States—
has an ownership interest in that concern; or
has an ownership interest in another concern that itself has an ownership interest in that concern.
Firms in violation of immigration laws— No loan guarantee may be made under this section for a loan to any entity found, based on a determination by the Secretary of Homeland Security or the Attorney General to have engaged in a pattern or practice of hiring, recruiting or referring for a fee, for employment in the United States persons knowing those persons are or would be aliens unlawfully present in the United States.
Criminal background checks— Before approval of any loan guarantee under this section, the Administrator may verify the applicant’s criminal background, or lack thereof, through the best available means, including, if possible, use of the National Crime Information Center computer system at the Federal Bureau of Investigation.
Application of other law— Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
Small business act provisions— The provisions of the Small Business Act applicable to loan guarantees under section 7 of that Act and regulations promulgated thereunder as of the date of the enactment of this Act shall apply to loan guarantees under this section except as otherwise provided in this section.
Sunset— Loan guarantees may not be issued under this section later than one year after the date of the enactment of this Act.
Sec. 4 Authorization of appropriations
There are authorized to be appropriated such sums as may be necessary to carry out this Act.