H.R. 2807 (112th): Small Business Leg-Up Act of 2011

112th Congress, 2011–2013. Text as of Aug 05, 2011 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

1st Session

H. R. 2807

IN THE HOUSE OF REPRESENTATIVES

August 5, 2011

(for himself and Ms. Clarke of New York) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To transfer unobligated and repaid funds from the Small Business Lending Fund Program to the Community Development Financial Institutions Fund to continue the program of making capital investments in eligible community development financial institutions in order to increase the availability of credit for small businesses, and for other purposes.

1.

Short title

This Act may be cited as the Small Business Lending to Entrepreneurs for Growth in Underserved Populations Act of 2011 or the Small Business Leg-Up Act of 2011.

2.

Findings

The Congress finds the following:

(1)

Families and small businesses in under-served areas have for generations been unable to access affordable credit.

(2)

The financial crisis of 2008 only served to exacerbate efforts by entrepreneurs to access capital for the purpose of creating jobs and improving economic outcomes in the community.

(3)

Small business investments revitalize communities by creating jobs but also contributing to the local tax base, which helps finance investments in schools, hospitals, infrastructure, and public safety.

(4)

The Community Development Financial Institutions Fund is well placed to make careful, targeted investments in community development financial institutions for the purposes of improving economic outcomes for underserved families across America.

(5)

Providing the Community Development Financial Institutions Fund with a robust capital infusion will make efficient use of taxpayer dollars, by leveraging Federal investment for the purpose of small business lending.

3.

Transfer of Funds from Small Business Lending Fund to the CDFI Fund

(a)

Unobligated funds

On the date of the expiration of the investment authority described under section 4109(a) of the Small Business Jobs Act of 2010, the Secretary shall transfer all unobligated funds in the Small Business Lending Fund to the Community Development Financial Institutions Fund.

(b)

Proceeds

Section 4103(b)(3) of the Small Business Jobs Act of 2010 is amended to read as follows:

(3)

Proceeds transferred to CDFI Fund

All funds received by the Secretary in connection with purchases made pursuant to paragraph (1), including principal, interest payments, dividend payments, and proceeds from the sale of any financial instrument, shall be transferred to the Community Development Financial Institutions Fund.

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4.

Small Business Capital Investment Program

(a)

In general

The Riegle Community Development and Regulatory Improvement Act of 1994 is amended by adding after section 108 the following new section:

108A.

Small Business Capital Investment Program to increase credit availability for small businesses

(a)

Small Business Revolving Loan Program

(1)

In general

Using amounts described under subsection (b), the Administrator shall carry out a Small Business Capital Investment Program (Program) to make capital investments in eligible community development financial institutions in order to increase the availability of credit for small businesses.

(2)

Structure of the Program

To the extent practicable, the Administrator shall carry out the Program in the same manner as the Small Business Lending Fund Program authorized under section 4103(a)(2) of the Small Business Jobs Act of 2010, except that—

(A)

all funds received by the Administrator in connection with purchases made under the Program, including principal, interest payments, dividend payments, and proceeds from the sale of any financial instrument, shall be deposited into the Fund;

(B)

eligible community development financial institutions may apply to receive a capital investment from the Fund in an amount not exceeding 10 percent of total assets, or such other percentage as the Administrator determines to be appropriate; and

(C)

the authority to make capital investments in eligible community development financial institutions shall continue so long as amounts described under subsection (b) are available to make such investments.

(b)

Funding

(1)

In general

Notwithstanding any other provision of this Act, amounts deposited into the Fund pursuant to section 4(a) of the Small Business Leg-Up Act of 2011, section 4103(b)(3) of the Small Business Jobs Act of 2010, or subsection (a)(2)(A) shall only be available to carry out the Program established under subsection (a).

(2)

Administration costs

Interest payments received under subsection (a)(2)(A) may be used to pay for the administrative costs of carrying out the Program.

(3)

Authorization of appropriations

There is authorized to be appropriated to the Administrator $4,000,000 to carry out the Program.

(c)

Rulemaking

The Administrator may issue such regulations as the Administrator determines to be appropriate to carry out this section.

(d)

Eligible community development financial institution defined

For purposes of this section, the term eligible community development financial institution means a community development financial institution with assets of $10,000,000,000 or less, as reported in audited financial statements.

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(b)

Technical amendment

The table of contents for the Riegle Community Development and Regulatory Improvement Act of 1994 is amended by inserting after the item relating to section 108 the following new item:

108A. Small Business Capital Investment Program to increase credit availability for small businesses.

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