#aafth ,,congress #b;d ,session ,h4 ,r4 #hbaa ,,an ,,act ,to amend the ,small ,business ,investment ,act of #aieh to improve the loan guaranty program1 enhance the ability of small manufacturers to access affordable capital1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the #ejd ,modernization and ,small ,manufacturer ,enhancement ,act of #bjbj4 #b4 ,additions to policy goals for the development company program ,section #eja7;d77#c7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie7;d77#c77 is amended-- 7#a7 by redesignating subparagraphs 7,a7 through 7,l7 as subparagraphs 7,b7 through 7,m71 respectively2 7#b7 by inserting before subparagraph 7,b7 7as so redesignated7 the following3 7,a7 workforce development through work-based or work-integrated training1 which shall be satisfied by demonstrating that a small business concern that is a subject of the project has-- 7i7 a documented in-house training program1 the duration of which is not shorter than #ab weeks2 or 7ii7 entered into a contract with an entity-- 7,i7 to provide trained applicants for any open position of employment at the small business concern2 and 7,,ii7 that ensures that any applicant provided to the small business concern under subclause 7,i7 has undergone not fewer than #ab weeks of training that is relevant to the open position described in that subclause1 2 7#c7 by amending subparagraph 7,d7 7as so redesignated7 to read as follows3 7,d7 expansion of minority-owned1 employee-owned1 or women-owned business development1 2 7#d7 in subparagraph 7,l7 7as so redesignated71 by striking producers1 or and inserting producers12 7#e7 in subparagraph 7,m7 7as so redesignated71 by striking the period at the end and inserting a comma2 7#f7 by inserting after subparagraph 7,m7 the following new subparagraphs3 7,n7 enhanced ability for small business concerns to reduce costs by using energy efficient products and generating renewable energy1 7,o7 aid revitalizing of any area for which a disaster has been declared or determined under subparagraph 7,a71 7,b71 7,c71 or 7,e7 of section #g7;b77#b7 of the ,small ,business ,act1 or 7,p7 expansion of small business concerns with #aj or fewer employees4 2 and 7#g7 in the flush text following subparagraph 7,p71 as added by paragraph 7#f71 by striking subparagraphs 7,j7 and 7,k7 and inserting subparagraphs 7,k7 and 7,l74 #c4 ,increase in loan amounts for manufacturing loans ,section #ejb of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif7 is amended-- 7#a7 in the matter preceding paragraph 7#a71 by striking ,the ,administration and inserting the following3 7a7 ,in general ,the ,administration 2 and 7#b7 in subsection 7a71 as so designated-- 7,a7 in paragraph 7#b77;,a7-- 7i7 in the matter preceding clause 7i71 by striking section and inserting subsection2 and 7ii7 in clause 7iii71 by striking #e1ejj1jjj and inserting #f1ejj1jjj2 and 7,b7 in paragraph 7#c77;,a71 by striking this section and inserting this subsection4 #d4 ,improvements to #ejd loan closing procedure ,title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq47 is amended-- 7#a7 in section #ejb1 as amended by section #c1 by adding at the end the following new subsections3 7b7 ,closing 7#a7 ,authority of certain development companies ,an accredited lender certified company may take any of the following actions to facilitate the closing of a loan made under subsection 7a73 7,a7 ,reallocate the cost of the project with respect to which the loan is made in an amount that is not more than #aj percent of the overall cost of the project4 7,b7 ,correct any name that is applicable to the loan1 including the name of any borrower1 guarantor1 eligible passive company described in subparagraph 7,c77i71 and operating company described in subparagraph 7,c77ii74 7,c7 ,form any of the following to receive proceeds of the loan3 7i7 ,an eligible passive company that complies with section #abj4aaa of title #ac1 ,code of ,federal ,regulations1 or any successor regulation4 7ii7 ,if an eligible passive company is formed under clause 7i71 an operating company with respect to that eligible passive company4 7,d7 ,correct the address of any property with respect to which the loan is made4 7,e7 ,correct the name of any interim lender or third-party lender4 7,f7 ,change any third-party lender or interim lender if that lender is a financial institution that is regulated by the ,federal ,government or a ,state government4 7,g7 ,make a guarantor a co-borrower or a co-borrower a guarantor4 7,h7 ,add a guarantor that does not change ownership with respect to the loan4 7,i7 ,reduce the amount of standby debt before the closing as a result of regularly scheduled payments4 7,j7 ,reduce the cost of the project with respect to which the loan is made4 7#b7 ,fees ,the ,administrator shall-- 7,a7 issue a rule regarding the amount of a closing fee that may be financed in a debenture that is issued by a certified development company to make one or more loans to small business concerns1 the proceeds of which are used by that concern for the purposes described in subsection 7a71 except that such amount shall be not less than #c1ejj2 and 7,b7 periodically update the rule issued under subparagraph 7,a74 7#c7 ,no adverse change and financial statement ,before the closing with respect to a loan made under subsection 7a71 the borrower and any operating company shall-- 7,a7 make the certification required under section #abj4hib of title #ac1 ,code of ,federal ,regulations1 or any successor regulation2 and 7,b7 submit to the certified development company a financial statement that is not more than #ahj days old1 which the company shall certify not later than #abj days before the date on which the certified development company issues a debenture with respect to the project to which the loan relates4 7c7 ,express program ,an accredited lender certified company may1 with respect to a covered loan1 take any of the following actions with respect to the loan3 7#a7 ,any action described in any of subparagraphs 7,a7 through 7,j7 of subsection 7b77#a74 7#b7 ,if the borrower is not delinquent with respect to the loan payments-- 7,a7 permit the loan to subordinate to a new third-party lender loan for the purposes of refinancing that third-party lender loan1 except that no refinanced amount with respect to the loan may be increased in order to provide cash to the borrower2 7,b7 permit a new party to assume responsibility for the loan if the original borrower remains on the loan as the original guarantor2 7,c7 obtain force placed insurance coverage for the loan if the borrower has allowed insurance coverage with respect to the loan to lapse2 and 7,d7 endorse an insurance check with respect to the property that is financed by the loan in an amount that is less than #ajj1jjj4 7#c7 ,certify that the loan is compliant with the appraisal requirements and environmental policies and procedures applicable to the loan under ,standard ,operating ,procedure #ej #aj #f of the ,administration1 effective ,august #bh1 #bjbj1 or any successor ,standard ,operating ,procedure4 7d7 ,definitions ,in this section-- 7#a7 the term accredited lender certified company means a certified development company that meets the requirements under section #ejg7;b71 including a certified development company that the ,administration has designated as an accredited lender under such section #ejg7;b72 and 7#b7 the term covered loan-- 7,a7 means a loan made under subsection 7a7 in an amount that is not more than #ejj1jjj2 and 7,b7 does not include a loan made to a borrower that is a franchise that1 or is in an industry that1 has a high rate of default1 as annually determined by the ,administrator4 2 and 7#b7 by adding at the end the following new section3 #eaa4 ,closing and oversight 7a7 ,,sba district counsels ,beginning on the date of enactment of this section1 with respect to the program established under this title1 district counsels of the ,administration shall be subject to the same requirements1 and shall have the same authority and responsibilities1 as in effect with respect to that program on the day before the date of enactment of this section1 except that-- 7#a7 the ,office of ,credit ,risk ,management of the ,administration shall have the responsibility for all duties relating to conducting file reviews of loans made under this title2 and 7#b7 district counsels of the ,administration shall not have any responsibility relating to the review of closing packages with respect to a loan made under this title4 7b7 ,designated attorneys ,for the purposes of this title1 the following provisions and requirements shall apply with respect to a designated attorney of a certified development company3 7#a7 ,a designated attorney that meets the requirements determined under paragraph 7#b7 shall be responsible for certifying documents relating to the closing of a loan described in this title4 7#b7 ,the ,administrator may determine any continuing education requirements that the designated attorney shall be required to satisfy in order to be permitted to close a loan made under this title4 7#c7 ,if1 as of the date of enactment of this section1 a certified development company does not have a designated attorney1 during the #bgj-;day period beginning on that date of enactment1 the certified development company may identify such an attorney1 subject to the approval of the ,administrator4 4 #e4 ,certified development company loans for small manufacturers 7a7 ,contribution requirement ,section #ejb7;a77#c77;,c7 of the ,small ,business ,investment ,act of #aieh1 as designated by section #c1 is amended-- 7#a7 by redesignating clauses 7i71 7ii71 7iii71 and 7iv7 as subclauses 7,i71 7,,ii71 7,,iii71 and 7,,iv71 respectively1 and adjusting the margins of such subclauses accordingly2 7#b7 by inserting before subclause 7,i71 as so redesignated1 the following3 7i7 for a small business concern that is not a small manufacturer 7as defined in section #eja7;e77#g77-- 2 7#c7 in subclause 7,,iii71 as so redesignated1 by striking clauses 7i7 and 7ii7 and inserting subclauses 7,i7 and 7,,ii72 7#d7 in subclause 7,,iv7 as so redesignated1 by striking the period and the end and inserting 2 or2 and 7#e7 by adding at the end the following3 7ii7 for a small manufacturer 7as defined in section #eja7;e77#g77-- 7,i7 at least #e percent of the total cost of the project financed1 if the small business concern has been in operation for a period of #b years or less2 7,,ii7 at least #e percent of the total cost of the project financed1 if the project involves a limited or single purpose building or structure2 7,,iii7 at least #aj percent of the total cost of the project financed if the project involves both of the conditions set forth in subclauses 7,i7 and 7,,ii72 or 7,,iv7 at least #e percent of the total cost of the project financed1 in all other circumstances1 at the discretion of the development company4 4 7b7 ,creation or retention of jobs requirement ,section #eja7;e7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie7;e77 is amended-- 7#a7 in paragraph 7#a71 by striking creates or retains and all that follows through the period at the end and inserting creates or retains #a job for every #ge1jjj guaranteed by the ,administration1 except that the amount is #aej1jjj in the case of a project of a small manufacturer42 7#b7 in paragraph 7#b71 by striking creates or retains and all that follows through the period at the end and inserting creates or retains #a job for every #ge1jjj guaranteed by the ,administration1 except that the amount is #aej1jjj in the case of a project of a small manufacturer42 7#c7 by redesignating paragraph 7#f7 as paragraph 7#g72 and 7#d7 by inserting after paragraph 7#e7 the following3 7#f7 ,for a loan for a project directed toward the creation of job opportunities under subsection 7d77#a71 the ,administrator shall publish on the website of the ,administration the number of jobs created or retained under the project as of the date that is #b years after the completion 7as determined based on information provided by the development company7 of the project4 4 7c7 ,collateral requirements ,section #ejb7;a77#c77;,e77i7 of the ,small ,business ,investment ,act of #aieh1 as designated by section #c1 is amended by adding at the end the following3 ,additional collateral shall not be required in the case of a small manufacturer 7as defined in section #eja7;e77#g7744 7d7 ,debt refinancing ,section #ejb7;a77#g77;,b7 of the ,small ,business ,investment ,act of #aieh1 as designated by section #c1 is amended in the matter preceding clause 7i7 by inserting 7or in the case of a small manufacturer 7as defined in section #eja7;e77#g771 that does not exceed #ajj percent of the project cost of the expansion7 after cost of the expansion4 7e7 ,amount of guaranteed debenture ,section #ejc7;a7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fig7;a77 is amended by adding at the end the following3 7#e7 ,any debenture issued by a ,state or local development company to a small manufacturer 7as defined in section #eja7;e77#g77 with respect to which a guarantee is made under this subsection shall be in an amount equal to not more than #ej percent of the cost of the project with respect to which such debenture is issued1 without regard to whether good cause has been shown4 4 #f4 ,assistance for small manufacturers ,title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq471 as amended by section #d7b71 is further amended by adding at the end the following new section3 #eab4 ,assistance for small manufacturers 7a7 ,in general ,the ,administrator shall ensure that each district office of the ,administration partners with not less than #a resource partner to provide training to small business concerns assigned a ,north ,american ,industry ,classification ,system code for manufacturing on obtaining assistance under the program carried out under this title1 including with respect to the application process under that program and partnering with development companies under this title4 7b7 ,resource partner defined ,in this section1 the term resource partner means-- 7#a7 a small business development center 7as defined in section #c of the ,small ,business ,act72 7#b7 a women's business center 7described under section #bi of such ,act72 7#c7 a chapter of the ,service ,corps of ,retired ,executives 7established under section #h7;b77#a77;,b7 of such ,act72 and 7#d7 a ,veteran ,business ,outreach ,center 7described under section #cb of such ,act74 4 #g4 ,leasing rules for new facilities and existing buildings 7a7 ,in general ,section #ejb7;a7 of the ,small ,business ,investment ,act of #aieh1 as designated by section #c1 is amended by striking paragraphs 7#d7 and 7#e7 and inserting the following new paragraphs3 7#d7 ,new facilities 7,a7 ,in general ,with respect to a project to construct a new facility1 an assisted small business concern may permanently lease not more than #bj percent of the project if such concern-- 7i7 permanently occupies and uses not less than #fj percent of the project2 7ii7 plans to occupy and use an additional portion of the project that is not permanently leased not later than #c years after receipt of assistance under this section2 and 7iii7 plans to permanently occupy and use #hj percent of the project not later than #aj years after receipt of such assistance4 7,b7 ,small manufacturers ,with respect to an assisted small business concern that is a small manufacturer 7as defined in section #eja7;e77#f771 subparagraph 7,a77i7 shall apply with #ej percent substituted for #fj percent4 7#e7 ,existing buildings ,with respect to a project to acquire1 renovate1 or reconstruct an existing building1 the following shall apply3 7,a7 ,occupancy requirements ,the assisted small business concern may permanently lease not more than #ej percent of the project if the concern permanently occupies and uses not less than #ej percent of the project4 7,b7 ,exception ,the assisted small business concern may permanently lease more than #ej percent of the project if-- 7i7 such concern-- 7,i7 has occupied and used the existing building for a consecutive #ab-month period before submitting an application for assistance under this section2 7,,ii7 agrees to permanently use less than #ej percent of the existing building and permanently lease more than #ej percent for a consecutive #ab-month period after receiving such assistance2 and 7,,iii7 affirms that the existing building is appropriate for current and reasonably anticipated needs2 and 7ii7 the development company assisting such project-- 7,i7 provides written notice to the ,administrator on the date on which the development company closes the loan for such project2 and 7,,ii7 once each year during the first #e years of the loan1 and once every #b years for the remainder of the loan-- 7aa7 conducts an examination of the assisted small business concern to ensure the concern is not a real estate development business2 and 7bb7 files with the ,administrator an anti-investor certification signed by the development company and the assisted small business concern4 7,c7 ,lease term ,any residential lease made under this paragraph shall be for a term of not more than #a year1 and any commercial lease made under this paragraph shall be for a term of not more than #e years4 4 7b7 ,report ,not later than #e years after the date of the enactment of this ,act1 the ,administrator of the ,small ,business ,administration shall submit to ,congress a report analyzing the impact of the amendments made by this section on access to capital for small business concerns 7as defined under section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb771 and recommending whether similar notice1 examination1 and certifications requirements should be made to the program established under section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a774 #h4 ,low-interest refinancing under the local development business loan program 7a7 ,expansions ,section #ejb7;a77#g77;,b7 of the ,small ,business ,investment ,act of #aieh1 as designated by section #c and amended by section #e7;d71 is further amended-- 7#a7 in the matter preceding clause 7i71 by striking #ej percent and inserting #ajj percent2 and 7#b7 in clause 7v71 by adding and at the end2 7#c7 by striking clause 7vi72 and 7#d7 by redesignating clause 7vii7 as clause 7vi74 7b7 ,repeal ,section #eba7;a7 of division ,e of the ,consolidated ,appropriations ,act1 #bjaf 7,public ,law #aad-aac2 #abi ,stat4 #bdfc2 #ae ,u4,s4,c4 #fif note7 is repealed4 7c7 ,refinancing ,section #ejb7;a77#g7 of the ,small ,business ,investment ,act of #aieh1 as designated by section #c1 is amended by adding at the end the following new subparagraph3 7,c7 ,refinancing not involving expansions 7i7 ,definitions ,in this subparagraph-- 7,i7 the term borrower means a small business concern that submits an application to a development company for financing under this subparagraph2 7,,ii7 the term eligible fixed asset means tangible property relating to which the ,administrator may provide financing under this section2 and 7,,iii7 the term qualified debt means indebtedness that-- 7aa7 was incurred not less than #f months before the date of the application for assistance under this subparagraph2 7bb7 is a commercial loan2 7cc7 the proceeds of which were used to acquire an eligible fixed asset2 7dd7 was incurred for the benefit of the small business concern2 and 7ee7 is collateralized by eligible fixed assets2 and 7ii7 ,authority ,a project that does not involve the expansion of a small business concern may include the refinancing of qualified debt if-- 7,i7 the amount of the financing is not more than #ij percent of the value of the collateral for the financing1 except that1 if the appraised value of the eligible fixed assets serving as collateral for the financing is less than the amount equal to #abe percent of the amount of the financing1 the borrower may provide additional cash or other collateral to eliminate any deficiency2 7,,ii7 the borrower has been in operation for all of the #b-year period ending on the date the loan application is submitted2 and 7,,iii7 for a financing for which the ,administrator determines there will be an additional cost attributable to the refinancing of the qualified debt1 the borrower agrees to pay a fee in an amount equal to the anticipated additional cost4 7iii7 ,financing for business expenses 7,i7 ,financing for business expenses ,the ,administrator may provide financing to a borrower that receives financing that includes a refinancing of qualified debt under clause 7ii71 in addition to the refinancing under clause 7ii71 to be used solely for the payment of business expenses4 7,,ii7 ,application for financing ,an application for financing under subclause 7,i7 shall include-- 7aa7 a specific description of the expenses for which the additional financing is requested2 and 7bb7 an itemization of the amount of each expense4 7,,iii7 ,condition on additional financing ,a borrower may not use any part of the financing under this clause for non-business purposes4 7iv7 ,loans based on jobs 7,i7 ,job creation and retention goals 7aa7 ,in general ,the ,administrator may provide financing under this subparagraph for a borrower that meets the job creation goals under subsection 7d7 or 7e7 of section #eja4 7bb7 ,alternate job retention goal ,the ,administrator may provide financing under this subparagraph to a borrower that does not meet the goals described in item 7aa7 in an amount that is not more than the product obtained by multiplying the number of employees of the borrower by #ge1jjj4 7,,ii7 ,number of employees ,for purposes of subclause 7,i71 the number of employees of a borrower is equal to the sum of-- 7aa7 the number of full- time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph2 and 7bb7 the product obtained by multiplying-- 7,,aa7 the number of part-time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph2 by 7,,bb7 the quotient obtained by dividing the average number of hours each part time employee of the borrower works each week by #dj4 7v7 ,nondelegation ,notwithstanding section #ejh7;e71 the ,administrator may not permit a premier certified lender to approve or disapprove an application for assistance under this subparagraph4 7vi7 ,total amount of loans ,the ,administrator may provide not more than a total of #g1ejj1jjj1jjj of financing under this subparagraph for each fiscal year4 4 ,passed the ,house of ,representatives ,december #c1 #bjbj4;,clerk4