Small Business Access to Capital Act of 2020

II 116TH CONGRESS 2D SESSION S. 3551 To help small businesses access capital and create jobs by reauthorizing the successful State Small Business Credit Initiative. IN THE SENATE OF THE UNITED STATES MARCH 20, 2020 Mr. PETERS (for himself, Mrs. SHAHEEN, Ms. STABENOW, and Ms. HASSAN) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To help small businesses access capital and create jobs by reauthorizing the successful State Small Business Credit Initiative. 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 ‘‘Small Business Access 4 to Capital Act of 2020’’. 5 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3551 IS SEC. 2. NEW TRANCHES OF CAPITAL FOR SUCCESSFUL 1 STATE PROGRAMS. 2 Section 3003 of the Small Business Jobs Act of 2010 3 (12 U.S.C. 5702) is amended by adding at the end the 4 following: 5 ‘‘(d) ADDITIONAL ALLOCATION AND COMPETITIVE 6 AWARDS.— 7 ‘‘(1) DEFINITIONS.—In this subsection— 8 ‘‘(A) the term ‘eligible participating State’ 9 means a participating State that has certified 10 to the Secretary that the State has expended, 11 transferred, or obligated not less than 80 per- 12 cent of the second 1⁄3 of the 2010 allocation 13 transferred to the State under subsection 14 (c)(1)(A)(iii); and 15 ‘‘(B) the term ‘unused funds’ means— 16 ‘‘(i) amounts made available to the 17 Secretary under clause (i)(II) or (ii)(II) of 18 paragraph (2)(E); and 19 ‘‘(ii) amounts made available to the 20 Secretary under paragraph (4)(B)(ii). 21 ‘‘(2) ALLOCATION FOR 2010 PARTICIPATING 22 STATES.— 23 ‘‘(A) ALLOCATION.—Of the amount made 24 available under paragraph (6)(D), the Secretary 25 shall allocate a total of $1,000,000,000 among 26 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3551 IS eligible participating States in the same ratio as 1 funds were allocated under the 2010 allocation 2 under subsection (b)(1) among participating 3 States. 4 ‘‘(B) APPLICATION.—An eligible partici- 5 pating State desiring to receive funds allocated 6 under this paragraph shall submit an applica- 7 tion— 8 ‘‘(i) not later than the date that is 6 9 months after the date of enactment of the 10 Small Business Access to Capital Act of 11 2020; and 12 ‘‘(ii) in such manner and containing 13 such information as the Secretary may re- 14 quire. 15 ‘‘(C) AVAILABILITY OF ALLOCATED 16 AMOUNT.— 17 ‘‘(i) IN GENERAL.—Notwithstanding 18 subsection (c)(1), after an eligible partici- 19 pating State approved by the Secretary to 20 receive an allocation under this paragraph 21 has certified to the Secretary that the eligi- 22 ble participating State has expended, 23 transferred, or obligated not less than 80 24 percent of the last 1⁄3 of the 2010 alloca- 25 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3551 IS tion to the eligible participating State, the 1 Secretary shall transfer to the eligible par- 2 ticipating State the funds allocated to the 3 eligible participating State under this para- 4 graph. 5 ‘‘(ii) EFFECT ON AGREEMENTS.—The 6 allocation or transfer of funds under this 7 paragraph to an eligible participating State 8 shall not be construed to— 9 ‘‘(I) amend or modify the terms 10 of the Allocation Agreement entered 11 into by the eligible participating State 12 relating to the 2010 allocation; or 13 ‘‘(II) modify or extend the Allo- 14 cation Time Period, as defined under 15 such Allocation Agreement. 16 ‘‘(D) USE OF TRANSFERRED FUNDS.—An 17 eligible participating State may use funds 18 transferred under this paragraph for any pur- 19 pose authorized under subparagraph (A) or (B) 20 of subsection (c)(3). 21 ‘‘(E) TERMINATION OF AVAILABILITY OF 22 AMOUNTS.— 23 ‘‘(i) IN GENERAL.—If an eligible par- 24 ticipating State has not certified to the 25 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 5 •S 3551 IS Secretary that the State has expended, 1 transferred, or obligated not less than 80 2 percent of the last 1⁄3 of the 2010 alloca- 3 tion as of the date that is 2 years after the 4 date on which the Secretary approves the 5 eligible participating State to receive an al- 6 location under this paragraph, any 7 amounts allocated to the eligible partici- 8 pating State under this paragraph— 9 ‘‘(I) may not be transferred to 10 the eligible participating State under 11 this paragraph; and 12 ‘‘(II) shall be available to the 13 Secretary to make awards under para- 14 graph (4). 15 ‘‘(ii) OTHER AMOUNTS.—Effective on 16 the date that is 2 years after the date of 17 enactment of the Small Business Access to 18 Capital Act of 2020, any amounts allo- 19 cated under this paragraph to a partici- 20 pating State that, as of such date, is not 21 an eligible participating State or to an eli- 22 gible participating State that did not sub- 23 mit an application under subparagraph (B) 24 or was not approved by the Secretary to 25 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 6 •S 3551 IS receive an allocation under this para- 1 graph— 2 ‘‘(I) may not be transferred to an 3 eligible participating State under this 4 paragraph; and 5 ‘‘(II) shall be available to the 6 Secretary to make awards under para- 7 graph (4). 8 ‘‘(3) COMPETITIVE FUNDING.— 9 ‘‘(A) IN GENERAL.—Of the amount made 10 available under paragraph (6)(D), the Secretary 11 may award, on a competitive basis, not more 12 than a total of $2,000,000,000 to participating 13 States and consortiums of participating States 14 for use for any purpose authorized under sub- 15 paragraph (A) or (B) of subsection (c)(3). 16 ‘‘(B) APPLICATION.— 17 ‘‘(i) IN GENERAL.—A participating 18 State or consortium of participating States 19 desiring to receive an award under this 20 paragraph shall submit an application— 21 ‘‘(I) not later than the date es- 22 tablished by the Secretary, which shall 23 be not later than the date that is 1 24 year after the date of enactment of 25 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 7 •S 3551 IS the Small Business Access to Capital 1 Act of 2020; and 2 ‘‘(II) in such manner and con- 3 taining such information as the Sec- 4 retary may require. 5 ‘‘(ii) NUMBER OF APPLICATIONS.—A 6 participating State may submit not more 7 than 1 application on behalf of the partici- 8 pating State and not more than 1 applica- 9 tion as part of a consortium of partici- 10 pating States. 11 ‘‘(iii) STATES THAT DID NOT PARTICI- 12 PATE.—A State that is not a participating 13 State may apply to the Secretary for ap- 14 proval to be a participating State for pur- 15 poses of this paragraph and paragraph (4), 16 in accordance with section 3004. 17 ‘‘(C) FACTORS.—In determining whether 18 to make an award to a participating State or 19 consortium of participating States under this 20 paragraph, the Secretary shall consider— 21 ‘‘(i) how the participating State or 22 consortium of participating States plan to 23 use amounts provided under the award 24 under the approved State program to— 25 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 8 •S 3551 IS ‘‘(I) leverage private sector cap- 1 ital; 2 ‘‘(II) create and retain jobs dur- 3 ing the 2-year period beginning on the 4 date of the award; 5 ‘‘(III) serve businesses that have 6 been incorporated or in operation for 7 not more than 5 years; and 8 ‘‘(IV) serve low- or moderate-in- 9 come communities; 10 ‘‘(ii) the extent to which the partici- 11 pating State or consortium of participating 12 States will establish or continue a robust 13 self-evaluation of the activities of the par- 14 ticipating State or consortium of partici- 15 pating States using amounts made avail- 16 able under this title; 17 ‘‘(iii) the extent to which the partici- 18 pating State or consortium of participating 19 States will provide non-Federal funds in 20 excess of the amount required under sub- 21 paragraph (E); and 22 ‘‘(iv) the extent to which the partici- 23 pating State expended, obligated, or trans- 24 ferred the 2010 allocation to the State. 25 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 9 •S 3551 IS ‘‘(D) AWARD OF FUNDS.— 1 ‘‘(i) FIRST TRANCHE.—Notwithstand- 2 ing subsection (c)(1), and not later than 3 30 days after making an award under this 4 paragraph to a participating State or con- 5 sortium of participating States, the Sec- 6 retary shall transfer 50 percent of the 7 amount of the award to the participating 8 State or consortium of participating 9 States. 10 ‘‘(ii) SECOND TRANCHE.—After a par- 11 ticipating State or consortium of partici- 12 pating States has certified to the Secretary 13 that the participating State or consortium 14 of participating States has expended, 15 transferred, or obligated not less than 80 16 percent of the amount transferred under 17 clause (i), the Secretary shall transfer to 18 the participating State or consortium of 19 participating States the remaining amount 20 of the award. 21 ‘‘(E) STATE SHARE.—The State share of 22 the cost of the activities, excluding administra- 23 tive expenses, carried out using an award under 24 this paragraph shall be not less than 10 per- 25 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 10 •S 3551 IS cent. The Secretary may determine what con- 1 tributions by a State qualify as part of the 2 State share of the cost for purposes of this sub- 3 paragraph. 4 ‘‘(4) AWARD OF UNUSED FUNDS.— 5 ‘‘(A) IN GENERAL.—The Secretary may 6 award, on a competitive basis, unused funds to 7 participating States for use for any purpose au- 8 thorized under subparagraph (A) or (B) of sub- 9 section (c)(3). 10 ‘‘(B) UNUSED 2010 FUNDS.— 11 ‘‘(i) IN GENERAL.—The Secretary 12 shall determine whether any amounts allo- 13 cated to a participating State under sub- 14 section (b) shall be deemed no longer allo- 15 cated and no longer available if a partici- 16 pating State has not certified to the Sec- 17 retary that the State has expended, trans- 18 ferred, or obligated 80 percent of the sec- 19 ond 1⁄3 of the 2010 allocation by December 20 31, 2021. 21 ‘‘(ii) AVAILABILITY.—Effective on the 22 date of the determination under clause (i), 23 any amounts identified in the determina- 24 tion that were deemed no longer allocated 25 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 11 •S 3551 IS and no longer available to the participating 1 State shall be available to the Secretary to 2 make awards under this paragraph. 3 ‘‘(C) APPLICATION.—A participating State 4 desiring to receive an award under this para- 5 graph shall submit an application— 6 ‘‘(i) not later than 3 months after the 7 date on which funds are deemed no longer 8 allocated and no longer available to any 9 participating State; and 10 ‘‘(ii) in such manner and containing 11 such information as the Secretary may re- 12 quire. 13 ‘‘(D) FACTORS.—In determining whether 14 to make an award to a participating State 15 under this paragraph, the Secretary shall con- 16 sider the factors described in paragraph (3)(C). 17 ‘‘(E) MINIMUM AMOUNT.—The Secretary 18 may not make an award of less than 19 $5,000,000 under this paragraph. 20 ‘‘(5) COMPLIANCE AND REPORTING REQUIRE- 21 MENTS.—During the period beginning on the date 22 on which a participating State first receives funds 23 under paragraph (2), (3), or (4) and ending on the 24 date that is 8 years after the date of enactment of 25 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 12 •S 3551 IS the Small Business Access to Capital Act of 2020, 1 the participating State shall submit quarterly and 2 annual reports containing the information described 3 in, and in accordance with the deadlines established 4 under, section 3007. 5 ‘‘(6) ADMINISTRATION AND IMPLEMENTA- 6 TION.— 7 ‘‘(A) ADMINISTRATIVE EXPENSES FOR 8 PARTICIPATING STATES.—A participating State 9 may use not more than 3 percent of the amount 10 made available to the participating State under 11 paragraph (2), (3), or (4) for administrative ex- 12 penses incurred by the participating State in 13 implementing an approved State program. 14 ‘‘(B) CONTRACTING.—During the 1-year 15 period beginning on the date of enactment of 16 the Small Business Access to Capital Act of 17 2020, and notwithstanding any other provision 18 of law relating to public contracting, the Sec- 19 retary may enter into contracts to carry out 20 this subsection. 21 ‘‘(C) AMOUNTS NOT ASSISTANCE.—Any 22 amounts transferred to a participating State 23 under paragraph (2), (3), or (4) shall not be 24 VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS 13 •S 3551 IS considered assistance for purposes of subtitle V 1 of title 31, United States Code. 2 ‘‘(D) APPROPRIATION.—There are appro- 3 priated to the Secretary, out of any funds in 4 the Treasury not otherwise appropriated, 5 $3,000,000,000 to carry out this subsection, in- 6 cluding to pay reasonable costs of administering 7 the programs under this subsection, to remain 8 available until expended. 9 ‘‘(E) TERMINATION OF SECRETARY’S PRO- 10 GRAM ADMINISTRATION FUNCTIONS.—Notwith- 11 standing section 3009(c), the authorities and 12 duties of the Secretary to implement and ad- 13 minister the program under this subsection 14 shall terminate at the end of the 8-year period 15 beginning on the date of enactment of the 16 Small Business Access to Capital Act of 17 2020.’’. 18 Æ VerDate Sep 11 2014 03:25 Apr 04, 2020 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6301 E:\BILLS\S3551.IS S3551 kjohnson on DSK79L0C42PROD with BILLS