1. Short title
This Act may be cited as the “SSBCI Improvement Act”.
SSBCI Improvement Act
A BILL
To amend the State Small Business Credit Initiative Act of 2010 to modify allocations under the State Small Business Credit Initiative, and for other purposes.
2. Technical amendments to the State Small Business Credit Initiative Act of 2010
Exception for allocated amounts of not more than $1,000,000—
In general— Section 3003(c)(1) of the State Small Business Credit Initiative Act of 2010 (12 U.S.C. 5702(c)(1)) is amended—
in subparagraph (A)(i), by inserting “, except as provided in subparagraph (D)” before the semicolon at the end; and
by amending subparagraph (D) to read as follows:
“(D) Exceptions—The Secretary—
“(i) 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; and
“(ii) shall transfer the full amount of the participating State's allocated amount, if the amount is not more than $1,000,000, to the State in a single transfer upon approval under section 3004 and subject to the requirements of paragraph (7).”
Use of transferred funds— Section 3003(c)(3) of the State Small Business Credit Initiative Act of 2010 (12 U.S.C. 5702(c)(3)) is amended—
in subparagraph (C)—
by inserting “if the allocated amount under subsection (b) is greater than $1,000,000,” before “in the case of”; and
by striking “or” at the end;
in subparagraph (D)—
by inserting “if the allocated amount under subsection (b) is more than $1,000,000,” before “in the case of”; and
by striking the period at the end and inserting “; or”; and
by adding at the end the following:
“(E) if the allocated amount under subsection (b) is not more than $1,000,000, for paying administrative costs incurred by the State in implementing an approved State program in an amount not to exceed 3.6 percent of the allocated amount.”
Recoupment— Section 3003(c) of the State Small Business Credit Initiative Act of 2010 (12 U.S.C. 5702(c)) is amended by adding at the end the following:
“(7) Recoupment of allocated amounts for certain participating States
“(A) In general—With respect to a participating State for which the Secretary allocated an amount less than or equal to $1,000,000, the Secretary may recoup an amount of the participating State’s allocated amount as follows:
“(i) If, not later than the last day of the 3-year period beginning on the date of approval under section 3004, an amount equal to 80 percent of 1/3 of the allocated amount has not been certified by the State as expended, obligated, or transferred, the amount recouped shall be equal to 2/3 of the allocated amount.
“(ii) If, not later than the last day of the 6-year period beginning on the date of approval under section 3004, an amount equal to 80 percent of 2/3 of the allocated amount has not been certified by the State as expended, obligated, or transferred, the amount shall be equal to 1/3 of the allocated amount.
“(B) Reallocation
“(i) In general—Any amount recouped under this paragraph may be reallocated by the Secretary to a Tribal government that was not a participating State subject to recoupment under this paragraph.
“(ii) Consideration—In making a reallocation under clause (i), the Secretary shall not take into account the specific allocation for Tribal governments described in subsection (b)(2)(D).”
Applicability— The amendments made by this subsection shall apply with respect to an allocation made to a participating State under the State Small Business Credit Initiative Act of 2010 (12 U.S.C. 5701 et seq.) for fiscal year 2022 and each fiscal year thereafter.
Extension of certain periods— The State Small Business Credit Initiative Act of 2010 (12 U.S.C. 5701 et seq.) is amended—
in section 3004(d)(2) (12 U.S.C. 5703(d)(2)), by striking “12 months” and inserting “18 months”;
in section 3007(d) (12 U.S.C. 5706(d)), by striking “the first March 31” and all that follows and inserting “March 31, 2031.”; and
in section 3009(c) (12 U.S.C. 5707(c)), by striking “7-year” and inserting “11-year”.
Technical amendment— Section 3003 of the State Small Business Credit Initiative Act of 2010 (12 U.S.C. 5702) is amended—
in subsection (b)(2)—
by redesignating subparagraph (D) as subparagraph (E); and
by redesignating the second subparagraph (C) (relating to separate allocation for Tribal governments) as subparagraph (D); and
in subsection (c)(4)(B), by striking “subsection (b)(2)(C)” and inserting “subsection (b)(2)(D)”.