S 681

112th CONGRESS
1st Session

S. 681

To provide greater accountability in the Small Business Lending Fund.

IN THE SENATE OF THE UNITED STATES

March 30, 2011

Ms. SNOWE introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship


A BILL

To provide greater accountability in the Small Business Lending Fund.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the `Greater Accountability in the Lending Fund Act of 2011'.

SEC. 2. REPAYMENT DEADLINE UNDER THE SMALL BUSINESS LENDING FUND PROGRAM.

    (a) In General- Section 4103(d)(5)(H) of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) is amended--

      (1) in clause (i)--

        (A) in subclause (I), by striking `; or' and inserting a period;

        (B) by striking subclause (II); and

        (C) by striking `will--' and all that follows through `be repaid' and inserting `will be repaid';

      (2) by striking clause (ii); and

      (3) by striking `that--' and all that follows through `includes,' and inserting `that includes,'.

    (b) Effective Date; Applicability; Savings Clause-

      (1) EFFECTIVE DATE; APPLICABILITY- The amendments made by this section shall--

        (A) take effect on the date of enactment of this Act; and

        (B) apply to any investment made by the Secretary of the Treasury under the Small Business Lending Fund Program established under section 4103(a)(2) of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) (in this subsection referred to as the `Program') on or after the date of enactment of this Act.

      (2) SAVINGS CLAUSE- Notwithstanding the amendments made by this section, an investment made by the Secretary of the Treasury under the Program before the date of enactment of this Act shall remain in full force and effect under the terms and conditions under the investment.

SEC. 3. SMALL BUSINESS LENDING FUND SUNSET.

    Section 4109 of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) is amended--

      (1) in subsection (b), by inserting `and shall be limited by the termination date in subsection (c)' before the period at the end; and

      (2) by adding at the end the following:

    `(c) Termination of Program-

      `(1) INVESTMENTS- On and after the date that is 15 years after the date of enactment of this Act, the Federal Government may not own any preferred stock or other financial instrument purchased under this subtitle or otherwise maintain any capital investment in an eligible institution made under this subtitle.

      `(2) AUTHORITIES- Except as provided in subsection (a), all the authorities provided under this subtitle shall terminate 15 years after the date of enactment of this Act.'.

SEC. 4. SMALL BUSINESS LENDING FUND TRIGGER.

    Section 4109 of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 note), as amended by section 3, is amended by adding at the end the following:

    `(d) FDIC Receivership- The Secretary may not make any purchases, including commitments to purchase, under this subtitle if the Federal Deposit Insurance Corporation is appointed receiver of 5 percent or more of the number of eligible institutions that receive a capital investment under the Program.'.

SEC. 5. SMALL BUSINESS LENDING FUND LIMITATION.

    (a) In General- Section 4103(d) of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) is amended--

      (1) by striking `, less the amount of any CDCI investment and any CPP investment' each place it appears;

      (2) by striking paragraph (7);

      (3) by redesignating paragraphs (8), (9), and (10) as paragraphs (7), (8), and (9), respectively; and

      (4) by adding at the end the following:

      `(10) PROHIBITION ON TARP PARTICIPANTS PARTICIPATING IN THE PROGRAM- An institution in which the Secretary made a investment under the CPP, the CDCI, or any other program established by the Secretary under the Troubled Asset Relief Program established under the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.) shall not be eligible to participate in the Program.'.

    (b) Effective Date; Applicability; Savings Clause-

      (1) EFFECTIVE DATE; APPLICABILITY- The amendments made by this section shall--

        (A) take effect on the date of enactment of this Act; and

        (B) apply to any investment made by the Secretary of the Treasury under the Small Business Lending Fund Program established under section 4103(a)(2) of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) (in this subsection referred to as the `Program') on or after the date of enactment of this Act.

      (2) SAVINGS CLAUSE- Notwithstanding the amendments made by this section, an investment made by the Secretary of the Treasury under the Program before the date of enactment of this Act shall remain in full force and effect under the terms and conditions under the investment.

SEC. 6. PRIVATE INVESTMENTS UNDER THE SMALL BUSINESS LENDING FUND PROGRAM.

    Section 4103(d)(3) of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) is amended--

      (1) in the paragraph heading, by striking `MATCHED'; and

      (2) in subparagraph (B)(i), by striking `both under the Program and'.

SEC. 7. APPROVAL OF REGULATORS.

    (a) In General- Section 4103(d)(2) of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) is amended--

      (1) in the paragraph heading, by striking `CONSULTATION WITH' and inserting `APPROVAL OF';

      (2) in the matter preceding subparagraph (A), by striking `the Secretary shall' and inserting `the Secretary may not make a purchase under this subtitle unless';

      (3) in subparagraph (A)--

        (A) by striking `consult with'; and

        (B) by striking `to determine whether the eligible institution may receive' and inserting `determines that, based on the financial condition of the eligible institution, the eligible institution should receive';

      (4) in subparagraph (B)--

        (A) by striking `consider any views received from'; and

        (B) by striking `regarding the financial condition of the eligible institution' and inserting `determines that, based on the financial condition of the eligible institution, the eligible institution should receive such capital investment'; and

      (5) in subparagraph (C)--

        (A) by striking `consult with'; and

        (B) by inserting `determines that, based on the financial condition of the eligible institution, the eligible institution should receive such capital investment' before the period at the end.

    (b) Conforming Amendments- Section 4103(d)(3)(A) of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) is amended--

      (1) by striking `to be consulted under paragraph (2) would not otherwise recommend' and inserting `required to make a determination under paragraph (2) does not approve';

      (2) by striking `to be so consulted'; and

      (3) by striking `to be consulted would recommend' and insert `would approve'.

SEC. 8. BENCHMARK FOR SMALL BUSINESS LENDING.

    Section 4103(d)(5)(A)(ii) of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) is amended by striking `for the 4 full quarters immediately preceding the date of enactment of this Act' and inserting `during calendar year 2007'.

END