§ 696. Loans for plant acquisition, construction, conversion and expansion

Footnotes

1. 1 So in original. Probably should be “clause”.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1958

   Pub. L. 85–699 title V § 502 · 72 Stat. 689

   Enacted · 15 U.S.C. § 696

   Pub. L. 85–699, title V, § 502, Aug. 21, 1958, 72 Stat. 697

   Source evidence

   Code source credit
   Pub. L. 85–699, title V, § 502, Aug. 21, 1958, 72 Stat. 697

   Enacted provision · exact public law section
   Sec. 502. The Administration may, in addition to its authority under section 501, make loans for plant construction, conversion or expansion, including the acquisition of land, to State and local development companies, and such loans may be made or effected either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis: Provided, however, That the foregoing powers shall be subject to the following restrictions and limitations: (1) All loans made shall be so secured as reasonably to assure repayment. In agreements to participate in loans on a deferred basis under this subsection, such participation by the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement. (2) The proceeds of any such loan shall be used solely by such borrower to assist an identifiable small-business concern and for a sound business purpose approved by the Administration. (3) Loans made by the Administration under this section shall be limited to $250,000 for each such identifiable small-business concern. (4) Any development company assisted under this section must meet criteria established by the Administration, including the extent of participation to be required or amount of paid-in capital to be used in each instance as is determined to be reasonable by the Administration. (5) No loans, including extensions or renewals thereof, shall be made by the Administration for a period or periods exceeding ten years plus such additional period as is estimated may be required to complete construction, conversion, or expansion, but the Administration may extend the maturity of or renew any loan made pursuant to this section beyond the period stated for additional periods, not to exceed ten years, if such extension or renewal will aid in the orderly liquidation of such loan. Any such loan shall bear interest at a rate fixed by the Administration. (6) No loan shall be made under this section to any local development company after June 30, 1961.

2. 1961

   Pub. L. 87–27 § 26 · 75 Stat. 47

   Struck · 15 U.S.C. § 696(6)

   Pub. L. 87–27 struck out par. (6) which provided for termination of authority of the Administration to make loans to local development companies after June 30, 1961

   Source evidence

   Code amendment note
   Par. (6). Pub. L. 87–27 struck out par. (6) which provided for termination of authority of the Administration to make loans to local development companies after June 30, 1961.

   Enacted provision · exact public law section
   Sec. 26. loans to local development companies Section 502 of the Small Business Investment Act of 1958 72 Stat. 697. 15 USC 696. is amended by striking out paragraph (6).

3. 1961

   Small Business Investment Act Amendments of 1961

   Pub. L. 87–341 § 10(1) · 75 Stat. 752

   Substituted · 15 U.S.C. § 696(3)

   Pub. L. 87–341, § 10(1), substituted “$350,000” for “$250,000”

   Source evidence

   Code amendment note
   Par. (3). Pub. L. 87–341, § 10(1), substituted “$350,000” for “$250,000”.

   Enacted provision · exact public law section
   (1) by striking out “$250,000” in paragraph (3) and inserting in lieu thereof “$350,000”; and

4. 1961

   Small Business Investment Act Amendments of 1961

   Pub. L. 87–341 § 10(2) · 75 Stat. 752

   Substituted · 15 U.S.C. § 696(5)

   Pub. L. 87–341, § 10(2), substituted “twenty-five” for “ten” before “years plus such additional period”

   Source evidence

   Code amendment note
   Par. (5). Pub. L. 87–341, § 10(2), substituted “twenty-five” for “ten” before “years plus such additional period”.

   Enacted provision · exact public law section
   (2) by striking out “ten” where it first appears in paragraph (5) and inserting in lieu thereof “twenty-five”.

5. 1976

   Pub. L. 94–305 § 108(a) · 90 Stat. 663

   Inserted · 15 U.S.C. § 696

   Pub. L. 94–305, § 108(a), inserted “acquisition,” after “plant” in introductory text

   Source evidence

   Code amendment note
   Pub. L. 94–305, § 108(a), inserted “acquisition,” after “plant” in introductory text.

   Enacted provision · exact public law section
   (a) Section 502 of the Small Business Investment Act of 15 USC 696. 15 USC 636. 1958 is amended by inserting “ acquisition,” after “plant”.

6. 1976

   Pub. L. 94–305 § 110 · 90 Stat. 663

   Substituted · 15 U.S.C. § 696(3)

   Pub. L. 94–305, § 110, substituted “$500,000” for “$350,000”

   Source evidence

   Code amendment note
   Par. (3). Pub. L. 94–305, § 110, substituted “$500,000” for “$350,000”.

   Enacted provision · exact public law section
   Sec. 110. development company loan limit Section 502(3) of the Small Business Investment Act of 1058 is amended by striking out “$350,000” and inserting in lieu thereof 15 USC 696 “$500,000”.

7. 1978

   Pub. L. 95–507 title I § 112 · 92 Stat. 1757

   Inserted · 15 U.S.C. § 696(4)

   Pub. L. 95–507 inserted provisions relating to derivation of community injection funds

   Source evidence

   Code amendment note
   Par. (4). Pub. L. 95–507 inserted provisions relating to derivation of community injection funds.

   Enacted provision · exact public law section
   Sec. 112. Section 502 of the Small Business Investment Act of 1958 Community injection funds. 15 USC 696. is amended by adding at the end of paragraph (4) the following new sentence: “Community injection funds may be derived, in whole or in part, from— “(A) State or local governments; “(B) banks or other financial institutions; “(C) foundations or other not-for-profit institutions; or “(D) a small business concern (or its owners, stockholders, or affiliates) receiving assistance through bodies authorized under this title.”.

8. 1981

   Small Business Budget Reconciliation and Loan Consolidation/Improvement Act of 1981

   Pub. L. 97–35 title XIX § 1909 · 95 Stat. 357

   Redesignated · 15 U.S.C. § 696(1)(4)

   Pub. L. 97–35 redesignated pars. (2) to (4) as (1) to (3), respectively. Former par. (1), which provided that all loans made shall be so secured as reasonably to assure repayment and that in agreements to participate in loans on a deferred basis, such participation by the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement, was struck out

   Source evidence

   Code amendment note
   Pars. (1) to (4). Pub. L. 97–35 redesignated pars. (2) to (4) as (1) to (3), respectively. Former par. (1), which provided that all loans made shall be so secured as reasonably to assure repayment and that in agreements to participate in loans on a deferred basis, such participation by the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement, was struck out.

   Enacted provision · exact public law section
   Sec. 1909. Section 502 of the Small Business Investment Act of 1958 is amended by striking paragraphs (1) and (5) and by renumbering paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively.

9. 1981

   Small Business Budget Reconciliation and Loan Consolidation/Improvement Act of 1981

   Pub. L. 97–35 title XIX § 1909 · 95 Stat. 357

   Struck · 15 U.S.C. § 696(5)

   Pub. L. 97–35 struck out par. (5) which provided that loans, including extensions and renewals, may be made for a period not exceeding twenty-five years and that an extension may be granted up to ten years, if such extension will aid in the orderly liquidation of the loan, and that the Administration may fix the rate of interest

   Source evidence

   Code amendment note
   Par. (5). Pub. L. 97–35 struck out par. (5) which provided that loans, including extensions and renewals, may be made for a period not exceeding twenty-five years and that an extension may be granted up to ten years, if such extension will aid in the orderly liquidation of the loan, and that the Administration may fix the rate of interest.

   Enacted provision · exact public law section
   Sec. 1909. Section 502 of the Small Business Investment Act of 1958 is amended by striking paragraphs (1) and (5) and by renumbering paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively.

10. 1988

    Small Business International Trade and Competitiveness Act

    Pub. L. 100–418 title VIII § 8007(b) · 102 Stat. 1107

    Substituted · 15 U.S.C. § 696(2)

    Pub. L. 100–418 substituted “$750,000” for “$500,000”

    Source evidence

    Code amendment note
    Par. (2). Pub. L. 100–418 substituted “$750,000” for “$500,000”.

    Enacted provision · exact public law section
    (b) Development Company Limits.— Section 502(2) of the Small Business Investment Act of 1985 (15 U.S.C. 636(a)(3)) is amended by 15 USC 696. striking “$500,000” and by inserting in lieu thereof “$750,000”

11. 1988

    Small Business Administration Reauthorization and Amendment Act of 1988

    Pub. L. 100–590 § 116(b)(1) · 102 Stat. 2989

    Inserted · 15 U.S.C. § 696

    Pub. L. 100–590, § 116(b)(1), inserted “Loans for plant acquisition, construction, conversion, and expansion” as section catchline

    Source evidence

    Code amendment note
    Pub. L. 100–590, § 116(b)(1), inserted “Loans for plant acquisition, construction, conversion, and expansion” as section catchline.

    Enacted provision · exact public law section
    (1) Title V of such Act is further amended by inserting the following heading at the beginning of section 502:

12. 1988

    Small Business Administration Reauthorization and Amendment Act of 1988

    Pub. L. 100–590 § 116(a) · 102 Stat. 2989

    Added · 15 U.S.C. § 696(4)

    Pub. L. 100–590, § 116(a), added par. (4)

    Source evidence

    Code amendment note
    Par. (4). Pub. L. 100–590, § 116(a), added par. (4).

    Enacted provision · exact public law section
    (a) In General.— Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is further amended by adding the following at the end thereof: “(4) If the project is to construct a new facility, up to 33 per centum of the total project may be leased, if reasonable projections of growth demonstrate that the assisted small business concern will need additional space within three years and will fully utilize such additional space within ten years.”.

13. 1990

    Small Business Administration Reauthorization and Amendments Act of 1990

    Pub. L. 101–574 title II § 214(c) · 104 Stat. 2814

    Struck and inserted · 15 U.S.C. § 696(2)

    Pub. L. 101–574 struck out period at end and inserted “, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern.”

    Source evidence

    Code amendment note
    Par. (2). Pub. L. 101–574 struck out period at end and inserted “, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern.”

    Enacted provision · exact public law section
    (c) Special Loan Limitations.— Section 502 of the Small Business 15 USC 696. Investment Act of 1958 is amended by striking the period at the end of paragraph (2) and by inserting the following: “, except loans meeting the criteria specified in section 501(d)(3) shall be limited to $1,000,000 for each such identifiable small business concern.”.

14. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 div. D title II § 202(a) · 110 Stat. 3009

    1. Inserted · 15 U.S.C. § 696(3)

       Pub. L. 104–208 inserted heading

    2. Amended · 15 U.S.C. § 696(3)

       Pub. L. 104–208 amended text of par. (3) generally. Prior to amendment, text read as follows: “Any development company assisted under this section must meet criteria established by the Administration, including the extent of participation to be required or amount of paid-in capital to be used in each instance as is determined to be reasonable by the Administration. Community injection funds may be derived, in whole or in part, from—

    Source evidence

    Code amendment note
    Par. (3). Pub. L. 104–208 inserted heading and amended text of par. (3) generally. Prior to amendment, text read as follows: “Any development company assisted under this section must meet criteria established by the Administration, including the extent of participation to be required or amount of paid-in capital to be used in each instance as is determined to be reasonable by the Administration. Community injection funds may be derived, in whole or in part, from—

    “(A) State or local governments; “(B) banks or other financial institutions; “(C) foundations or other not-for-profit institutions; or “(D) a small business concern (or its owners, stockholders, or affiliates) receiving assistance through bodies authorized under this subchapter.”

    Enacted provision · exact public law section
    Sec. 202. During the current fiscal year, appropriations made available to the Department of Commerce by this Act for salaries and expenses shall be available for hire of passenger motor vehicles as authorized by 31 U.S.C. 1343 and 1344; services as authorized by 5 U.S.C. 3109; and uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901–5902).

15. 1997

    Small Business Reauthorization Act of 1997

    Pub. L. 105–135 § 221(1) · 111 Stat. 2592

    1. Added · 15 U.S.C. § 696(1)

       Pub. L. 105–135, § 221(1), added par. (1)

    2. Struck · 15 U.S.C. § 696(1)

       Pub. L. 105–135, § 221(1), struck out former par. (1) which read as follows: “The proceeds of any such loan shall be used solely by such borrower to assist in identifiable small-business concern and for a sound business purpose approved by the Administration.”

    Source evidence

    Code amendment note
    Par. (1). Pub. L. 105–135, § 221(1), added par. (1) and struck out former par. (1) which read as follows: “The proceeds of any such loan shall be used solely by such borrower to assist in identifiable small-business concern and for a sound business purpose approved by the Administration.”

    Enacted provision · exact public law section
    (1) by striking paragraph (1) and inserting the following: “(1) Use of proceeds.— The proceeds of any such loan shall be used solely by the borrower to assist 1 or more identifiable small business concerns and for a sound business purpose approved by the Administration.”;

16. 1997

    Small Business Reauthorization Act of 1997

    Pub. L. 105–135 § 221(2) · 111 Stat. 2592

    Added · 15 U.S.C. § 696(3)(D); 15 U.S.C. § 696(3)(E)

    Pub. L. 105–135, § 221(2), added subpars. (D) and (E)

    Source evidence

    Code amendment note
    Par. (3)(D), (E). Pub. L. 105–135, § 221(2), added subpars. (D) and (E).

    Enacted provision · exact public law section
    (2) in paragraph (3), by adding at the end the following: “(D) Seller financing.— Seller-provided financing may be used to meet the requirements of subparagraph (B), if the seller subordinates the interest of the seller in the property to the debenture guaranteed by the Administration. “(E) Collateralization.— The collateral provided by the small business concern shall generally include a subordinate lien position on the property being financed under this title, and is only 1 of the factors to be evaluated in the credit determination. Additional collateral shall be required only if the Administration determines, on a case-by-case basis, that additional security is necessary to protect the interest of the Government.”; and

17. 1997

    Small Business Reauthorization Act of 1997

    Pub. L. 105–135 § 221(3) · 111 Stat. 2592

    Added · 15 U.S.C. § 696(5)

    Pub. L. 105–135, § 221(3), added par. (5)

    Source evidence

    Code amendment note
    Par. (5). Pub. L. 105–135, § 221(3), added par. (5).

    Enacted provision · exact public law section
    (3) by adding at the end the following: “(5) Limitation on leasing— In addition to any portion of the project permitted to be leased under paragraph (4), not to exceed 20 percent of the project may be leased by the assisted small business to 1 or more other tenants, if the assisted small business occupies permanently and uses not less than a total of 60 percent of the space in the project after the execution of any leases authorized under this section.”.

18. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(9)(tIII)(s303) · 114 Stat. 2763

    Amended · 15 U.S.C. § 696(2)

    Pub. L. 106–554, § 1(a)(9) [title III, § 303], amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Loans made by the Administration under this section shall be limited to $750,000 for each such identifiable small-business concern, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern.”

    Source evidence

    Code amendment note
    Par. (2). Pub. L. 106–554, § 1(a)(9) [title III, § 303], amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Loans made by the Administration under this section shall be limited to $750,000 for each such identifiable small-business concern, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern.”

    Enacted provision · exact public law section
    (9) H.R. 5667, as introduced on December 15, 2000.

19. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(9)(tII)(s208)(b) · 114 Stat. 2763

    1. Amended · 15 U.S.C. § 696(3)(E)

       Pub. L. 106–554, § 1(a)(9) [title II, § 208(b)], designated existing provisions as cl. (i)

    2. Inserted · 15 U.S.C. § 696(3)(E)

       Pub. L. 106–554, § 1(a)(9) [title II, § 208(b)], inserted heading

    3. Added · 15 U.S.C. § 696(3)(E)

       Pub. L. 106–554, § 1(a)(9) [title II, § 208(b)], added cl. (ii)

    Source evidence

    Code amendment note
    Par. (3)(E). Pub. L. 106–554, § 1(a)(9) [title II, § 208(b)], designated existing provisions as cl. (i), inserted heading, and added cl. (ii).

    Enacted provision · exact public law section
    (9) H.R. 5667, as introduced on December 15, 2000.

20. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(9)(tVIII)(s802)(b) · 114 Stat. 2763

    Added · 15 U.S.C. § 696(6)

    Pub. L. 106–554, § 1(a)(9) [title VIII, § 802(b)], added par. (6)

    Source evidence

    Code amendment note
    Par. (6). Pub. L. 106–554, § 1(a)(9) [title VIII, § 802(b)], added par. (6).

    Enacted provision · exact public law section
    (9) H.R. 5667, as introduced on December 15, 2000.

21. 2004

    Department of Justice Appropriations Act, 2005

    Pub. L. 108–447 div. K title I § 104 · 118 Stat. 2809

    Amended · 15 U.S.C. § 696(2)

    Pub. L. 108–447 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Loans made by the Administration under this section shall be limited to $1,000,000 for each such identifiable small business concern, except loans meeting the criteria specified in section 695(d)(3) of this title, which shall be limited to $1,300,000 for each such identifiable small business concern.”

    Source evidence

    Code amendment note
    Par. (2). Pub. L. 108–447 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Loans made by the Administration under this section shall be limited to $1,000,000 for each such identifiable small business concern, except loans meeting the criteria specified in section 695(d)(3) of this title, which shall be limited to $1,300,000 for each such identifiable small business concern.”

    Enacted provision · exact public law section
    Sec. 104. Nothing in the preceding section shall remove the obligation of the Director of the Bureau of Prisons to provide escort services necessary for a female inmate to receive such service outside the Federal facility: Provided, That nothing in this section in any way diminishes the effect of section 103 intended to address the philosophical beliefs of individual employees of the Bureau of Prisons.

22. 2007

    Energy Independence and Security Act of 2007

    Pub. L. 110–140 title XII § 1204(b) · 121 Stat. 1492

    Added · 15 U.S.C. § 696(2)(A)(iv); 15 U.S.C. § 696(2)(A)(v)

    Pub. L. 110–140 added cls. (iv) and (v)

    Source evidence

    Code amendment note
    Par. (2)(A)(iv), (v). Pub. L. 110–140 added cls. (iv) and (v).

    Enacted provision · exact public law section
    (b) Loans for Plant Projects Used for Energy-Efficient Purposes.— Section 502(2)(A) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is amended— (1) in clause (ii) by striking “and” at the end; (2) in clause (iii) by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following: “(iv) $4,000,000 for each project that reduces the borrower’s energy consumption by at least 10 percent; and “(v) $4,000,000 for each project that generates renewable energy or renewable fuels, such as biodiesel or ethanol production.” .

23. 2009

    American Recovery and Reinvestment Act of 2009

    Pub. L. 111–5 div. A title V § 504(a) · 123 Stat. 115

    Added · 15 U.S.C. § 696(7)

    Pub. L. 111–5 added par. (7)

    Source evidence

    Code amendment note
    Par. (7). Pub. L. 111–5 added par. (7).

    Enacted provision · exact public law section
    (a) Low Interest Refinancing Under the Local Development Business Loan Program.— Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended by adding at the end the following: “(7) Permissible debt refinancing.— “(A) In general.— Any financing approved under this title may include a limited amount of debt refinancing. “(B) Expansions.— If the project involves expansion of a small business concern, any amount of existing indebtedness that does not exceed 50 percent of the project cost of the expansion may be refinanced and added to the expansion cost, if— “(i) the proceeds of the indebtedness were used to acquire land, including a building situated thereon, to construct a building thereon, or to purchase equipment; “(ii) the existing indebtedness is collateralized by fixed assets; “(iii) the existing indebtedness was incurred for the benefit of the small business concern; “(iv) the financing under this title will be used only for refinancing existing indebtedness or costs relating to the project financed under this title; “(v) the financing under this title will provide a substantial benefit to the borrower when prepayment penalties, financing fees, and other financing costs are accounted for; “(vi) the borrower has been current on all payments due on the existing debt for not less than 1 year preceding the date of refinancing; and “(vii) the financing under section 504 will provide better terms or rate of interest than the existing indebtedness at the time of refinancing.” .

24. 2010

    Small Business Job Creation and Access to Capital Act of 2010

    Pub. L. 111–240 § 1122(c) · 124 Stat. 2504

    Substituted · 15 U.S.C. § 696(2)(A)(i)

    Pub. L. 111–240, § 1122(c), substituted “clause (ii), (iii), (iv), or (v)” for “subparagraph (B) or (C)”

    Source evidence

    Code amendment note
    Par. (2)(A)(i). Pub. L. 111–240, § 1122(c), substituted “clause (ii), (iii), (iv), or (v)” for “subparagraph (B) or (C)”.

    Enacted provision · exact public law section
    (c) Technical Correction.— Section 502(2)(A)(i) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)(i)) is amended by striking “subparagraph (B) or (C)” and inserting “clause (ii), (iii), (iv), or (v)”.

    Effective date note
    Pub. L. 111–240, title I, § 1122(b), Sept. 27, 2010, 124 Stat. 2512, provided that the amendment made by section 1122(b) is effective 2 years after Sept. 27, 2010.

25. 2010

    Small Business Job Creation and Access to Capital Act of 2010

    Pub. L. 111–240 § 1112(1) · 124 Stat. 2504

    Substituted · 15 U.S.C. § 696(2)(A)(i)

    Pub. L. 111–240, § 1112(1), substituted “$5,000,000” for “$1,500,000”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 111–240, § 1112(1), substituted “$5,000,000” for “$1,500,000”.

    Enacted provision · exact public law section
    (1) in clause (i), by striking “$1,500,000” and inserting “$5,000,000”;

    Effective date note
    Pub. L. 111–240, title I, § 1122(b), Sept. 27, 2010, 124 Stat. 2512, provided that the amendment made by section 1122(b) is effective 2 years after Sept. 27, 2010.

26. 2010

    Small Business Job Creation and Access to Capital Act of 2010

    Pub. L. 111–240 § 1112(2) · 124 Stat. 2504

    Substituted · 15 U.S.C. § 696(2)(A)(ii)

    Pub. L. 111–240, § 1112(2), substituted “$5,000,000” for “$2,000,000”

    Source evidence

    Code amendment note
    Par. (2)(A)(ii). Pub. L. 111–240, § 1112(2), substituted “$5,000,000” for “$2,000,000”.

    Enacted provision · exact public law section
    (2) in clause (ii), by striking “$2,000,000” and inserting “$5,000,000”;

    Effective date note
    Pub. L. 111–240, title I, § 1122(b), Sept. 27, 2010, 124 Stat. 2512, provided that the amendment made by section 1122(b) is effective 2 years after Sept. 27, 2010.

27. 2010

    Small Business Job Creation and Access to Capital Act of 2010

    Pub. L. 111–240 § 1112(3) · 124 Stat. 2504

    Substituted · 15 U.S.C. § 696(2)(A)(iii)(v)

    Pub. L. 111–240, § 1112(3)–(5), substituted “$5,500,000” for “$4,000,000”

    Source evidence

    Code amendment note
    Par. (2)(A)(iii) to (v). Pub. L. 111–240, § 1112(3)–(5), substituted “$5,500,000” for “$4,000,000”.

    Enacted provision · exact public law section
    (3) in clause (iii), by striking “$4,000,000” and inserting “$5,500,000”;

    Effective date note
    Pub. L. 111–240, title I, § 1122(b), Sept. 27, 2010, 124 Stat. 2512, provided that the amendment made by section 1122(b) is effective 2 years after Sept. 27, 2010.

28. 2010

    Small Business Job Creation and Access to Capital Act of 2010

    Pub. L. 111–240 § 1122(b) · 124 Stat. 2504

    Struck · 15 U.S.C. § 696(7)(C)

    Pub. L. 111–240, § 1122(b), struck out subpar. (C) relating to refinancing not involving expansions

    Source evidence

    Code amendment note
    Par. (7)(C). Pub. L. 111–240, § 1122(b), struck out subpar. (C) relating to refinancing not involving expansions.

    Enacted provision · exact public law section
    (b) Prospective Repeal.— Effective 2 years after the date of enactment of this Act, section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended by striking subparagraph (C).

    Effective date note
    Pub. L. 111–240, title I, § 1122(b), Sept. 27, 2010, 124 Stat. 2512, provided that the amendment made by section 1122(b) is effective 2 years after Sept. 27, 2010.

29. 2010

    Small Business Job Creation and Access to Capital Act of 2010

    Pub. L. 111–240 § 1122(a) · 124 Stat. 2504

    Added · 15 U.S.C. § 696(7)(C)

    Pub. L. 111–240, § 1122(a), added subpar. (C)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 111–240, § 1122(a), added subpar. (C).

    Enacted provision · exact public law section
    (a) Refinancing.— Section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended by adding at the end the following: “(C) Refinancing not involving expansions.— “(i) Definitions.— In this subparagraph— “(I) the term ‘borrower’ means a small business concern that submits an application to a development company for financing under this subparagraph; “(II) the term ‘eligible fixed asset’ means tangible property relating to which the Administrator may provide financing under this section; and “(III) the term ‘qualified debt’ means indebtedness— “(aa) that— “(AA) was incurred not less than 2 years before the date of the application for assistance under this subparagraph; “(BB) is a commercial loan; “(CC) is not subject to a guarantee by a Federal agency; “(DD) the proceeds of which were used to acquire an eligible fixed asset; “(EE) was incurred for the benefit of the small business concern; and “(FF) is collateralized by eligible fixed assets; and “(bb) for which the borrower has been current on all payments for not less than 1 year before the date of the application. “(ii) Authority.— A project that does not involve the expansion of a small business concern may include the refinancing of qualified debt if— “(I) the amount of the financing is not more than 90 percent of the value of the collateral for the financing, except that, if the appraised value of the eligible fixed assets serving as collateral for the financing is less than the amount equal to 125 percent of the amount of the financing, the borrower may provide additional cash or other collateral to eliminate any deficiency; “(II) the borrower has been in operation for all of the 2-year period ending on the date of the loan; and “(III) for a financing for which the Administrator determines there will be an additional cost attributable to the refinancing of the qualified debt, the borrower agrees to pay a fee in an amount equal to the anticipated additional cost. “(iii) Financing for business expenses.— “(I) Financing for business expenses.— The Administrator may provide financing to a borrower that receives financing that includes a refinancing of qualified debt under clause (ii), in addition to the refinancing under clause (ii), to be used solely for the payment of business expenses. “(II) Application for financing.— An application for financing under subclause (I) shall include— “(aa) a specific description of the expenses for which the additional financing is requested; and “(bb) an itemization of the amount of each expense. “(III) Condition on additional financing.— A borrower may not use any part of the financing under this clause for non-business purposes. “(iv) Loans based on jobs.— “(I) Job creation and retention goals.— “(aa) In general.— The Administrator may provide financing under this subparagraph for a borrower that meets the job creation goals under subsection (d) or (e) of section 501. “(bb) Alternate job retention goal.— The Administrator may provide financing under this subparagraph to a borrower that does not meet the goals described in item (aa) in an amount that is not more than the product obtained by multiplying the number of employees of the borrower by $65,000. “(II) Number of employees.— For purposes of subclause (I), the number of employees of a borrower is equal to the sum of— “(aa) the number of full-time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph; and “(bb) the product obtained by multiplying— “(AA) the number of part-time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph; by “(BB) the quotient obtained by dividing the average number of hours each part time employee of the borrower works each week by 40. “(v) Nondelegation.— Notwithstanding section 508(e), the Administrator may not permit a premier certified lender to approve or disapprove an application for assistance under this subparagraph. “(vi) Total amount of loans.— The Administrator may provide not more than a total of $7,500,000,000 of financing under this subparagraph for each fiscal year.” .

    Effective date note
    Pub. L. 111–240, title I, § 1122(b), Sept. 27, 2010, 124 Stat. 2512, provided that the amendment made by section 1122(b) is effective 2 years after Sept. 27, 2010.

30. 2018

    Small Business Access to Capital and Efficiency Act

    Pub. L. 115–371 § 2 · 132 Stat. 5106

    1. Redesignated · 15 U.S.C. § 696(3)(E)(ii)

       Pub. L. 115–371 redesignated introductory provisions of cl. (ii) as subcl. (I) of cl. (ii)

    2. Inserted · 15 U.S.C. § 696(3)(E)(ii)

       Pub. L. 115–371 inserted heading

    3. Redesignated · 15 U.S.C. § 696(3)(E)(ii)

       Pub. L. 115–371 redesignated former subcls. (I) and (II) as items (aa) and (bb), respectively, of subcl. (I) and realigned margins, in item (aa)

    4. Substituted · 15 U.S.C. § 696(3)(E)(ii)

       Pub. L. 115–371 substituted “is more than the Federal banking regulator appraisal threshold” for “is more than $250,000”, in item (bb)

    5. Substituted · 15 U.S.C. § 696(3)(E)(ii)

       Pub. L. 115–371 substituted “is equal to or less than the Federal banking regulator appraisal threshold” for “is $250,000 or less”

    6. Added · 15 U.S.C. § 696(3)(E)(ii)

       Pub. L. 115–371 added subcl. (II)

    Source evidence

    Code amendment note
    Par. (3)(E)(ii). Pub. L. 115–371 redesignated introductory provisions of cl. (ii) as subcl. (I) of cl. (ii) and inserted heading, redesignated former subcls. (I) and (II) as items (aa) and (bb), respectively, of subcl. (I) and realigned margins, in item (aa), substituted “is more than the Federal banking regulator appraisal threshold” for “is more than $250,000”, in item (bb), substituted “is equal to or less than the Federal banking regulator appraisal threshold” for “is $250,000 or less”, and added subcl. (II).

    Enacted provision · exact public law section
    SEC. 2. APPRAISAL THRESHOLDS.   Section 502(3)(E)(ii) of the Small Business Investment Act of 1958 (15 U.S.C. 696(3)(E)(ii)) is amended— (1) by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and adjusting the margins of such items accordingly; (2) by striking “With respect to” and inserting the following: “(I) In general.— With respect to” ; (3) in item (aa), as so redesignated, by striking “is more than $250,000” and inserting “is more than the Federal banking regulator appraisal threshold”; (4) in item (bb), as so redesignated, by striking “is $250,000 or less” and inserting “is equal to or less than the Federal banking regulator appraisal threshold”; and (5) by adding at the end the following: “(II) Federal banking regulator appraisal threshold defined.— For purposes of this clause, the term ‘Federal banking regulator appraisal threshold’ means the lesser of the threshold amounts set by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation for when a federally related transaction that is a commercial real estate transaction requires an appraisal prepared by a State licensed or certified appraiser.” .

31. 2020

    Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act

    Pub. L. 116–260 § 328(a)(2)(A) · 134 Stat. 1182

    Substituted · 15 U.S.C. § 696(7)(B)

    Pub. L. 116–260, § 328(a)(2)(A), substituted “100 percent” for “50 percent” in introductory provisions

    Source evidence

    Code amendment note
    Par. (7)(B). Pub. L. 116–260, § 328(a)(2)(A), substituted “100 percent” for “50 percent” in introductory provisions.

    Enacted provision · exact public law section
    (A) in subparagraph (B), in the matter preceding clause (i), by striking “50” and inserting “100”; and

32. 2020

    Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act

    Pub. L. 116–260 § 328(a)(2)(B) · 134 Stat. 1182

    Added · 15 U.S.C. § 696(7)(C)

    Pub. L. 116–260, § 328(a)(2)(B), added subpar. (C)

    Source evidence

    Code amendment note
    Par. (7)(C). Pub. L. 116–260, § 328(a)(2)(B), added subpar. (C).

    Enacted provision · exact public law section
    (B) by adding at the end the following: “(C) Refinancing not involving expansions.— “(i) Definitions.— In this subparagraph— “(I) the term ‘borrower’ means a small business concern that submits an application to a development company for financing under this subparagraph; “(II) the term ‘eligible fixed asset’ means tangible property relating to which the Administrator may provide financing under this section; and “(III) the term ‘qualified debt’ means indebtedness— “(aa) that was incurred not less than 6 months before the date of the application for assistance under this subparagraph; “(bb) that is a commercial loan; “(cc) the proceeds of which were used to acquire an eligible fixed asset; “(dd) that was incurred for the benefit of the small business concern; and “(ee) that is collateralized by eligible fixed assets. “(ii) Authority.— A project that does not involve the expansion of a small business concern may include the refinancing of qualified debt if— “(I) the amount of the financing is not more than 90 percent of the value of the collateral for the financing, except that, if the appraised value of the eligible fixed assets serving as collateral for the financing is less than the amount equal to 125 percent of the amount of the financing, the borrower may provide additional cash or other collateral to eliminate any deficiency; “(II) the borrower has been in operation for all of the 2-year period ending on the date the loan application is submitted; and “(III) for a financing for which the Administrator determines there will be an additional cost attributable to the refinancing of the qualified debt, the borrower agrees to pay a fee in an amount equal to the anticipated additional cost. “(iii) Financing for business expenses.— “(I) Financing for business expenses.— The Administrator may provide financing to a borrower that receives financing that includes a refinancing of qualified debt under clause (ii), in addition to the refinancing under clause (ii), to be used solely for the payment of business expenses. “(II) Application for financing.— An application for financing under subclause (I) shall include— “(aa) a specific description of the expenses for which the additional financing is requested; and “(bb) an itemization of the amount of each expense. “(III) Condition on additional financing.— A borrower may not use any part of the financing under this clause for non-business purposes. “(iv) Loans based on jobs.— “(I) Job creation and retention goals.— “(aa) In general.— The Administrator may provide financing under this subparagraph for a borrower that meets the job creation goals under subsection (d) or (e) of section 501. “(bb) Alternate job retention goal.— The Administrator may provide financing under this subparagraph to a borrower that does not meet the goals described in item (aa) in an amount that is not more than the product obtained by multiplying the number of employees of the borrower by $75,000. “(II) Number of employees.— For purposes of subclause (I), the number of employees of a borrower is equal to the sum of— “(aa) the number of full-time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph; and “(bb) the product obtained by multiplying— “(AA) the number of part-time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph, by “(BB) the quotient obtained by dividing the average number of hours each part time employee of the borrower works each week by 40. “(v) Total amount of loans.— The Administrator may provide not more than a total of $7,500,000,000 of financing under this subparagraph for each fiscal year.” .

41 of 41 references resolved to an enrolled provision