H. R. 2527
IN THE HOUSE OF REPRESENTATIVES
May 20, 2009
Ms. Markey of Colorado introduced the following bill; which was referred to the Committee on Small Business
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.
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—
the proceeds of the indebtedness were used to acquire land, including a building situated thereon, to construct a building thereon, or to purchase equipment;
the existing indebtedness is collateralized by fixed assets;
the existing indebtedness was incurred for the benefit of the small business concern;
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;
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
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.