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H.R. 2527 (111th): To provide authority for certain debt refinancing with respect to financings approved under title V of the Small Business Investment Act of 1958, and for other purposes.


The text of the bill below is as of May 20, 2009 (Introduced). The bill was not enacted into law.


I

111th CONGRESS

1st Session

H. R. 2527

IN THE HOUSE OF REPRESENTATIVES

May 20, 2009

introduced the following bill; which was referred to the Committee on Small Business

A BILL

To provide authority for certain debt refinancing with respect to financings approved under title V of the Small Business Investment Act of 1958, and for other purposes.

1.

Authority to provide certain debt refinancing

During the 2 year period beginning on the date of the enactment of this Act, any financing approved under title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) may include debt refinancing relating to a conventional loan that is not guaranteed by the Small Business Administration, if—

(1)

the proceeds of the indebtedness were used to acquire land, including a building situated thereon, to construct a building thereon, or to purchase equipment;

(2)

the existing indebtedness is collateralized by fixed assets;

(3)

the existing indebtedness was incurred for the benefit of the small business concern;

(4)

the financing under title V of the Small Business Investment Act of 1958 will be used only for refinancing existing indebtedness or costs relating to the project financed under such title;

(5)

the financing under such title will provide a substantial benefit to the borrower when prepayment penalties, financing fees, and other financing costs are accounted for; and

(6)

the financing under section 504 of such title will provide better terms or rate of interest than the existing indebtedness at the time of refinancing.