State Small Business Credit Initiative Renewal Act

I 117TH CONGRESS 1ST SESSION H. R. 1669 To amend the State Small Business Credit Initiative Act of 2010 to respond to the COVID–19 pandemic, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 9, 2021 Mr. GREEN of Texas (for himself and Ms. WATERS) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the State Small Business Credit Initiative Act of 2010 to respond to the COVID–19 pandemic, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘State Small Business 4 Credit Initiative Renewal Act’’. 5 SEC. 2. REAUTHORIZATION OF THE STATE SMALL BUSI- 6 NESS CREDIT INITIATIVE ACT OF 2010. 7 (a) REAUTHORIZATION.— 8 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1669 IH (1) IN GENERAL.—The State Small Business 1 Credit Initiative Act of 2010 (12 U.S.C. 5701 et 2 seq.) is amended— 3 (A) in section 3003— 4 (i) in subsection (b)— 5 (I) by amending paragraph (1) to 6 read as follows: 7 ‘‘(1) IN GENERAL.—Not later than 30 days 8 after the date of enactment of subsection (d), the 9 Secretary shall allocate Federal funds to partici- 10 pating States so that each State is eligible to receive 11 an amount equal to what the State would receive 12 under the 2021 allocation, as determined under 13 paragraph (2).’’; 14 (II) in paragraph (2)— 15 (aa) by striking ‘‘2009’’ 16 each place such term appears 17 and inserting ‘‘2021’’; 18 (bb) by striking ‘‘2008’’ 19 each place such term appears 20 and inserting ‘‘2020’’; 21 (cc) in subparagraph (A), by 22 striking ‘‘The Secretary’’ and in- 23 serting ‘‘With respect to States 24 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1669 IH other than Tribal governments, 1 the Secretary’’; 2 (dd) in subparagraph (C)(i), 3 by striking ‘‘2007’’ and inserting 4 ‘‘2019’’; and 5 (ee) by adding at the end 6 the following: 7 ‘‘(C) SEPARATE ALLOCATION FOR TRIBAL 8 GOVERNMENTS.— 9 ‘‘(i) IN GENERAL.—With respect to 10 States that are Tribal governments, the 11 Secretary shall determine the 2021 alloca- 12 tion by allocating $500,000,000 among the 13 Tribal governments in the proportion the 14 Secretary determines appropriate, includ- 15 ing with consideration to available employ- 16 ment and economic data regarding each 17 such Tribal government. 18 ‘‘(ii) NOTICE OF INTENT; TIMING OF 19 ALLOCATION.—With respect to allocations 20 to States that are Tribal governments, the 21 Secretary may— 22 ‘‘(I) require Tribal governments 23 that wish to participate in the Pro- 24 gram to file a notice of intent with the 25 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 1669 IH Secretary not later than 30 days after 1 the date of enactment of subsection 2 (d); and 3 ‘‘(II) notwithstanding paragraph 4 (1), allocate Federal funds to partici- 5 pating Tribal governments not later 6 than 60 days after the date of enact- 7 ment of subsection (d). 8 ‘‘(D) EMPLOYMENT DATA.—If the Sec- 9 retary determines that employment data with 10 respect to a State is unavailable from the Bu- 11 reau of Labor Statistics of the Department of 12 Labor, the Secretary shall consider such other 13 economic and employment data that is other- 14 wise available for purposes of determining the 15 employment data of such State.’’; and 16 (III) by striking paragraph (3); 17 and 18 (ii) in subsection (c)— 19 (I) in paragraph (1)(A)(iii), by 20 inserting before the period the fol- 21 lowing: ‘‘that have delivered loans or 22 investments to eligible businesses’’; 23 and 24 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 1669 IH (II) by amending paragraph (4) 1 to read as follows: 2 ‘‘(4) TERMINATION OF AVAILABILITY OF 3 AMOUNTS NOT TRANSFERRED.— 4 ‘‘(A) IN GENERAL.—Any portion of a par- 5 ticipating State’s allocated amount that has not 6 been transferred to the State under this section 7 may be deemed by the Secretary to be no longer 8 allocated to the State and no longer available to 9 the State and shall be returned to the general 10 fund of the Treasury or reallocated as described 11 under subparagraph (B), if— 12 ‘‘(i) the second 1⁄3 of a State’s allo- 13 cated amount has not been transferred to 14 the State before the end of the end of the 15 3-year period beginning on the date that 16 the Secretary approves the State for par- 17 ticipation; or 18 ‘‘(ii) the last 1⁄3 of a State’s allocated 19 amount has not been transferred to the 20 State before the end of the end of the 5- 21 year period beginning on the date that the 22 Secretary approves the State for participa- 23 tion. 24 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 1669 IH ‘‘(B) REALLOCATION.—Any amount 1 deemed by the Secretary to be no longer allo- 2 cated to a State and no longer available to such 3 State under subparagraph (A) may be reallo- 4 cated by the Secretary to other participating 5 States. In making such a reallocation, the Sec- 6 retary shall not take into account the minimum 7 allocation requirements under subsection 8 (b)(2)(B) or the specific allocation for Tribal 9 governments described under subsection 10 (b)(2)(C).’’; 11 (B) in section 3004(d), by striking ‘‘date 12 of enactment of this Act’’ each place it appears 13 and inserting ‘‘date of the enactment of section 14 3003(d)’’; 15 (C) in section 3005(b), by striking ‘‘date of 16 enactment of this Act’’ each place it appears 17 and inserting ‘‘date of the enactment of section 18 3003(d)’’; 19 (D) in section 3006(b)(4), by striking 20 ‘‘date of enactment of this Act’’ and inserting 21 ‘‘date of the enactment of section 3003(d)’’; 22 (E) in section 3007(b), by striking ‘‘March 23 31, 2011’’ and inserting ‘‘March 31, 2022’’; 24 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 1669 IH (F) in section 3009, by striking ‘‘date of 1 enactment of this Act’’ each place it appears 2 and inserting ‘‘date of the enactment of section 3 3003(d)’’; and 4 (G) in section 3011(b), by striking ‘‘date 5 of the enactment of this Act’’ each place it ap- 6 pears and inserting ‘‘date of the enactment of 7 section 3003(d)’’. 8 (2) APPROPRIATION.— 9 (A) IN GENERAL.—There is hereby appro- 10 priated to the Secretary of the Treasury, out of 11 funds in the Treasury not otherwise appro- 12 priated, $10,000,000,000 to carry out the State 13 Small Business Credit Initiative established 14 under the State Small Business Credit Initia- 15 tive Act of 2010, including to pay reasonable 16 costs of administering such Initiative. 17 (B) RESCISSION.—With respect to 18 amounts appropriated under subparagraph 19 (A)— 20 (i) the Secretary of the Treasury shall 21 complete all disbursements and remaining 22 obligations before September 30, 2030; 23 and 24 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 1669 IH (ii) any amounts that remain unex- 1 pended (whether obligated or unobligated) 2 on September 30, 2030, shall be rescinded 3 and deposited into the general fund of the 4 Treasury. 5 (b) ADDITIONAL ALLOCATIONS TO SUPPORT BUSI- 6 NESS ENTERPRISES OWNED AND CONTROLLED BY SO- 7 CIALLY AND ECONOMICALLY DISADVANTAGED INDIVID- 8 UALS.—Section 3003 of the State Small Business Credit 9 Initiative Act of 2010 (12 U.S.C. 5702) is amended by 10 adding at the end the following: 11 ‘‘(d) ADDITIONAL ALLOCATIONS TO SUPPORT BUSI- 12 NESS ENTERPRISES OWNED AND CONTROLLED BY SO- 13 CIALLY AND ECONOMICALLY DISADVANTAGED INDIVID- 14 UALS.—Of the amounts appropriated to carry out the Pro- 15 gram, the Secretary shall— 16 ‘‘(1) ensure that $1,500,000,000 from funds al- 17 located under this section shall be expended for busi- 18 ness enterprises owned and controlled by socially 19 and economically disadvantaged individuals; and 20 ‘‘(2) allocate such amounts to States based on 21 the needs of business enterprises owned and con- 22 trolled by socially and economically disadvantaged 23 individuals, as determined by the Secretary, in each 24 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 1669 IH State, and not subject to the allocation formula de- 1 scribed under subsection (b). 2 ‘‘(e) SUPPORTING BUSINESS ENTERPRISES OWNED 3 AND CONTROLLED BY SOCIALLY AND ECONOMICALLY 4 DISADVANTAGED INDIVIDUALS.—In allocating funds to 5 participating States under this section, the Secretary shall 6 establish a minimum amount of support that a State shall 7 provide to business enterprises owned and controlled by 8 socially and economically disadvantaged individuals. 9 ‘‘(f) INCENTIVE ALLOCATIONS TO SUPPORT BUSI- 10 NESS ENTERPRISES OWNED AND CONTROLLED BY SO- 11 CIALLY AND ECONOMICALLY DISADVANTAGED INDIVID- 12 UALS.—Of the amounts appropriated to carry out the Pro- 13 gram, the Secretary shall set aside $1,000,000,000 for an 14 incentive program under which the Secretary shall in- 15 crease the second 1⁄3 and last 1⁄3 allocations for States that 16 demonstrate robust support, as determined by the Sec- 17 retary, for business concerns owned and controlled by so- 18 cially and economically disadvantaged individuals in the 19 deployment of prior allocation amounts.’’. 20 (c) CDFI AND MDI PARTICIPATION PLAN.—Section 21 3004 of the State Small Business Credit Initiative Act of 22 2010 (12 U.S.C. 5703) is amended by adding at the end 23 the following: 24 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 1669 IH ‘‘(e) CDFI AND MDI PARTICIPATION PLAN.—The 1 Secretary may not approve a State to be a participating 2 State unless the State has provided the Secretary with a 3 plan detailing how minority depository institutions and 4 community development financial institutions will be en- 5 couraged to participate in State programs.’’. 6 (d) PANDEMIC RESPONSE PLAN.—Section 3004 of 7 the State Small Business Credit Initiative Act of 2010 (12 8 U.S.C. 5703), as amended by subsection (c), is further 9 amended by adding at the end the following: 10 ‘‘(f) PANDEMIC RESPONSE PLAN.—The Secretary 11 may not approve a State to be a participating State unless 12 the State has provided the Secretary with a description 13 of how the State will expeditiously utilize funds to support 14 small businesses, including business enterprises owned and 15 controlled by socially and economically disadvantaged indi- 16 viduals, in responding to and recovering from the eco- 17 nomic effects of the COVID–19 pandemic.’’. 18 (e) TECHNICAL ASSISTANCE.— 19 (1) STATE TECHNICAL ASSISTANCE PLAN.— 20 Section 3004 of the State Small Business Credit Ini- 21 tiative Act of 2010 (12 U.S.C. 5703), as amended 22 by subsection (d), is further amended by adding at 23 the end the following: 24 ‘‘(g) STATE TECHNICAL ASSISTANCE PLAN.— 25 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 1669 IH ‘‘(1) IN GENERAL.—The Secretary may not ap- 1 prove a State to be a participating State unless the 2 State has provided the Secretary with a technical as- 3 sistance plan under which the State will use a por- 4 tion of the funds received under the Program to pro- 5 vide legal, accounting, and financial advisory services 6 to very small businesses and business enterprises 7 owned and controlled by socially and economically 8 disadvantaged individuals applying for— 9 ‘‘(A) State programs under the Program; 10 and 11 ‘‘(B) other State or Federal programs that 12 support small businesses. 13 ‘‘(2) CONTRACTING.—Services described under 14 paragraph (1) may be contracted with legal, ac- 15 counting, and financial advisory firms, with priority 16 given to business enterprises owned and controlled 17 by socially and economically disadvantaged individ- 18 uals.’’. 19 (2) FUNDING.—Section 3009 of the State 20 Small Business Credit Initiative Act of 2010 (12 21 U.S.C. 5708) is amended by adding at the end the 22 following: 23 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 1669 IH ‘‘(e) TECHNICAL ASSISTANCE.—Of the amounts ap- 1 propriated to carry out the Program, $500,000,000 may 2 be used by the Secretary to— 3 ‘‘(1) provide funds to States to carry out tech- 4 nical assistance plans described under section 5 3004(g); 6 ‘‘(2) transfer amounts to the Minority Business 7 Development Agency, so that the Agency may use 8 such amounts in a manner the Agency determines 9 appropriate, including through contracting with 10 third parties, to provide technical assistance to busi- 11 ness enterprises owned and controlled by socially 12 and economically disadvantaged individuals applying 13 to— 14 ‘‘(A) State programs under the Program; 15 and 16 ‘‘(B) other State or Federal programs that 17 support small businesses; and 18 ‘‘(3) contract with legal, accounting, and finan- 19 cial advisory firms (with priority given to business 20 enterprises owned and controlled by socially and eco- 21 nomically disadvantaged individuals), to provide 22 technical assistance to business enterprises owned 23 and controlled by socially and economically disadvan- 24 taged individuals applying to— 25 VerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669 kjohnson on DSK79L0C42PROD with BILLS 13 •HR 1669 IH ‘‘(A) State programs under the Program; 1 and 2 ‘‘(B) other State or Federal programs that 3 support small businesses.’’. 4 (f) MULTI-STATE PARTICIPATION PROGRAM.—Sec- 5 tion 3009 of the State Small Business Credit Initiative 6 Act of 2010 (12 U.S.C. 5708), as amended by subsection 7 (d)(2), is further amended by adding at the end the fol- 8 lowing: 9 ‘‘(f) MULTI-STATE PARTICIPATION PROGRAM.—The 10 Secretary may establish a multi-State participation pro- 11 gram under which— 12 ‘‘(1) the Secretary determ [Text truncated for display. Full text available on Congress.gov.]