H. Res. 1436: H.R. 5486 - Small Business Jobs Tax Relief Act of 2010; H.R. 5297 - the Small Business Lending Fund Act of 2010

  COMMITTEE ACTION: REPORTED BY A VOICE VOTE on Monday, June 14, 2010.
FLOOR ACTION: ADOPTED BY A RECORD VOTE OF 228-186 on Tuesday, June 15, 2010.

MANAGERS:Pingree/Sessions

111th Congress 
2nd Session

H.RES 1436

[Report No. 111-506]

 

H.R. 5486 - Small Business Jobs Tax Relief Act of 2010

H.R. 5297 - the Small Business Lending Fund Act of 2010

  1. Provides for consideration of H.R. 5486 under a closed rule.
  2. Provides one hour of general debate equally divided and controlled by the chair and ranking minority member of the Committee on Ways and Means. 
  3. Waives all points of order against consideration of the bill except those arising under clauses 9 and 10 of rule XXI.
  4. Waives all points of order against the bill. This waiver does not affect the point of order available under clause 9 of rule XXI (regarding earmark disclosure).
  5. Provides one motion to recommit H.R. 5486 with or without instructions
  6. Provides for consideration of H.R. 5297 under a structured rule.
  7. Provides one hour of general debate with 30 minutes equally divided and controlled by the chair and ranking minority member of the Committee on Financial Services and 30 minutes equally divided and controlled by the chair and ranking minority member of the Committee on Small Business.
  8. Waives all points of order against consideration of the bill except for clauses 9 and 10 of rule XXI.
  9. Provides that in lieu of the amendment in the nature of a substitute recommended by the Committee on Financial Services, the amendment in the nature of a substitute printed in part A the report of the Committee on Rules accompanying this resolution, modified by the amendment printed in part B of the report of the Committee on Rules accompanying the resolution, shall be considered as an original bill for the purpose of amendment and shall be considered as read.
  10. Waives all points of order against the amendment in the nature of a substitute. This waiver does not affect the point of order available under clause 9 of rule XXI (regarding earmark disclosure).
  11. Makes in order only those amendments printed in part C of the Rules Committee report accompanying the resolution. Provides that the  amendments made in order may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and shall not be subject to a demand for division of the question.
  12. Waives all points of order against the amendments printed in part C of the report except for clauses 9 and 10 of rule XXI.
  13. Provides one motion to recommit H.R. 5297 with or without instructions.
  14. Provides that the Chair may entertain a motion that the Committee rise only if offered by the chair of the Committee on Financial Services or his designee.
  15. Provides that the Chair may not entertain a motion to strike out the enacting words of the bill (as described in clause 9 of rule XVIII).
  16. Provides that in the engrossment of H.R. 5297, the Clerk is authorized to make technical and conforming changes to amendatory instructions.
  17. Provides that in the engrossment of H.R. 5297, the Clerk shall add the text of H.R. 5486, as passed by the House, at the end of H.R. 5297 and that H.R. 5486 shall be laid on the table.
  18. Clause 6(a) of rule XIII for a two-thirds vote to consider a report from the Committee on Rules on the same day it is presented to the House is waived with respect to any resolution reported through the legislative day of June 18, 2010, providing for consideration or disposition of any Senate amendment to the House amendment to the Senate amendment to the bill (H.R. 4213) to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes.
  19. Provides that measures may be considered under suspension of the rules at any time through the legislative day of June 18, 2010.  The Speaker or her designee shall consult with the Minority Leader or his designee on the designation of any matter for consideration pursuant to this section.

—————

RESOLUTION

           Resolved, That upon the adoption of this resolution it shall be in order to consider in the House the bill (H.R. 5486) to amend the Internal Revenue Code of 1986 to provide tax incentives for small business job creation, and for other purposes. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI. The bill shall be considered as read. All points of order against provisions in the bill are waived. The previous question shall be considered as ordered on the bill to final passage without intervening motion except: (1) one hour of debate equally divided and controlled by the chair and ranking minority member of the Committee on Ways and Means; and (2) one motion to recommit.

 

            Sec. 2. (a) At any time after the adoption of this resolution the Speaker may, pursuant to clause 2(b) of rule XVIII, declare the House resolved into the Committee of the Whole House on the state of the Union for consideration of the bill (H.R. 5297) to create the Small Business Lending Fund Program to direct the Secretary of the Treasury to make capital investments in eligible institutions in order to increase the availability of credit for small businesses, and for other purposes. The first reading of the bill shall be dispensed with. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI. General debate shall be confined to the bill and amendments specified in this subsection and shall not exceed one hour, with 30 minutes equally divided and controlled by the chair and ranking minority member of the Committee on Financial Services and 30 minutes equally divided and controlled by the chair and ranking minority member of the Committee on Small Business. After general debate the bill shall be considered for amendment under the five-minute rule. In lieu of the amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill, it shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute printed in part A of the report of the Committee on Rules accompanying this resolution modified by the amendment printed in part B of the report of the Committee on Rules. That amendment in the nature of a substitute shall be considered as read. All points of order against that amendment in the nature of a substitute are waived. Notwithstanding clause 11 of rule XVIII, no amendment to that amendment in the nature of a substitute shall be in order except those printed in part C of the report of the Committee on Rules. Each amendment may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and shall not be subject to a demand for division of the question. All points of order against such amendments are waived except those arising under clause 9 or 10 of rule XXI. At the conclusion of consideration of the bill for amendment the Committee shall rise and report the bill to the House with such amendments as may have been adopted. The previous question shall be considered as ordered on the bill and amendments thereto to final passage without intervening motion except one motion to recommit with or without instructions.

             (b) The Chair may entertain a motion that the Committee rise only if offered by the chair of the Committee on Financial Services or his designee. The Chair may not entertain a motion to strike out the enacting words of the bill (as described in clause 9 of rule XVIII).

            (c) In the engrossment of H.R. 5297, the Clerk is authorized to make technical and conforming changes to amendatory instructions.

            Sec. 3. (a) In the engrossment of H.R. 5297, the Clerk shall--

            (1) add the text of H.R. 5486, as passed by the House, as new matter at the end of H.R. 5297;

            (2) conform the title of H.R. 5297 to reflect the addition to the engrossment of H.R. 5486;

            (3) assign appropriate designations to provisions within the engrossment; and

            (4) conform provisions for short titles within the engrossment.

            (b) Upon the addition of the text of H.R. 5486 to the engrossment of H.R. 5297, H.R. 5486 shall be laid on the table.

            Sec. 4. The requirement of clause 6(a) of rule XIII for a two-thirds vote to consider a report from the Committee on Rules on the same day it is presented to the House is waived with respect to any resolution reported through the legislative day of June 18, 2010, providing for consideration or disposition of any Senate amendment to the House amendment to the Senate amendment to the bill (H.R. 4213) to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes.

            Sec. 5. It shall be in order at any time through the legislative day of June 18, 2010, for the Speaker to entertain motions that the House suspend the rules. The Speaker or her designee shall consult with the Minority Leader or his designee on the designation of any matter for consideration pursuant to this section.

 SUMMARY OF THE AMENDMENT IN THE NATURE OF A SUBSTITUTE IN PART A TO H.R. 5297 PROPOSED TO BE CONSIDERED AS ORIGINAL TEXT

The amendment includes the text of H.R. 5297 as reported from the Committee on Financial Services, with the addition of Title III, which would establish at the Small Business Administration (SBA) a program to provide equity financing support to early-stage and high growth small businesses.

Text of Part A

SUMMARY OF AMENDMENT IN PART B TO THE AMENDMENT IN THE NATURE OF A SUBSTITUTE TO H.R. 5297 IN PART A PROPOSED TO BE CONSIDERED AS ADOPTED

The amendment would (1) clarify the pricing for the investment held past the initial repayment period; (2) would add Community Development Financial Institutions as an eligible institution; (3) would clarify what “other financial instruments” include; (4) would clarify reporting requirements for banks participating in the Fund; (5) would clarify regulator consultation requirements for underwriting Fund applications; (6) would clarify how installment amounts are transferred to States and requires repayment for intentional audit misstatements; (7) would insert a requirement for States to provide a plan for access to Fund proceeds for small businesses in underserved communities; (8) would provide that the Small Business Lending Fund, the State Small Business Credit Initiative, and the Small Business Early-Stage Investment Program would receive direct appropriations, instead of authorization for appropriations; (9) would require certification that institutions participating in the programs provided for under the Act are in compliance with laws regarding immigration status and sex offender status; and (10) would prohibit the viewing pornography by Federal employees working on the programs created under the Act. The amendment also includes a provision indicating that, in order to comply with the Statutory Pay-As-You-Go Act of 2010, the budgetary effects of the legislation shall be determined by reference to a statement of budgetary effects submitted for printing in the Congressional Record by the chair or chairs of the Committee on the Budget.  

Text of Part B

SUMMARY OF THE FURTHER AMENDMENTS IN PART C TO H.R. 5297 TO BE MADE IN ORDER

1. Israel (NY), Barrow (GA)

Would add veteran- and women- owned businesses to the groups that will receive outreach under the Small Business Lending Fund established by the bill. It would add veteran-owned businesses to those businesses that should receive consideration in the Fund, add veterans to the study on lending assistance, and require the study to report not just on the number of loans made to women-, veteran- and minority-owned businesses, but the percent of loans that go to them as a part of the program.

(10 minutes)

2. Schrader (OR)

Would establish the Small Business Borrower Assistance Program which will create a fund for 7(a) loan borrowers to use if they need help paying the principal or interest payments of their small business loans.

(10 minutes)

3. Nye (VA)

Would add four stipulations to the Small Business Lending Fund to ensure small businesses are not excluded from certain programs in the bill: 1) change the measuring tool determining a banks increase of small business lending from dollar amount to the actual number of loans made to small businesses; 2) include Small Business Lending Centers with less than $10 billion in assets as qualified financial institutions to participate in the SBLF; 3) add the SBA definition to define what a small business is; and 4) change the base lending amount from a comparison of the 4Q 2009, to a full year of data.

(10 minutes)

4. Minnick (ID), Simpson (ID), Kosmas (FL), Quigley (IL), Marchant (TX)

Would make non-owner occupied commercial real estate loans eligible for the program.

(10 minutes)

5. Perlmutter (CO), Gutierrez (IL), Klein, Ron (FL), Kagen (WI)

Would allow small banks to amortize losses or write-downs on commercial real estate loans over a 10-year period, freeing up more capital for these small institutions to lend to small businesses.

(10 minutes)

6. Price, Tom (GA)

Would express the Sense of Congress that small business lending is being hindered by mixed messages from federal financial regulators.

 

(10 minutes)

7. Green, Al (TX)

Would improve disclosures by eligible institutions receiving funding under the program.

(10 minutes)

8. Driehaus (OH), Connolly (VA), Moore, Dennis (KS)

Would institute a new Office of Small Business Lending Fund Oversight.

(10 minutes)

9. Peters (MI)

Would give Treasury the authority to recoup funds transferred to states before an audit is conducted if the audit finds that the state misused the funds.

(10 minutes)

10. Miller, Brad (NC), Baca (CA)

Would, for purposes of the SBLF, allow the amount of lending reported as construction, land development, and other land loans in domestic offices to be included in the determination of the amount of a banks small business lending.  To be eligible, the amendment would require the applicant that intends to use an SBLF investment for construction to notify the Secretary at the time of the application's submission.

(10 minutes)

11. Michaud (ME)

Would ensure that state-run venture capital fund programs will be able to qualify as “state other credit support programs,” as long as they do not use funds under H.R. 5297 to lend to businesses with more than 750 employees.  It would clarify that state-run venture capital fund programs will be able to qualify as "state other credit support programs," as long as they meet all other requirements.

(10 minutes)

12. Jackson Lee (TX), Cao (LA)

Would provide funding to eligible institutions that serve small businesses in communities that have suffered negative economic effects as a result of the Deepwater Horizon oil spill with particular consideration to States along the coast of the Gulf of Mexico .

(10 minutes)

13. Sanchez, Loretta (CA)

Would include as part of the selection criteria for investment companies the extent to which the applicant will concentrate investment activities on small business concerns in targeted industries.

(10 minutes)

14. Cuellar (TX)

Would require the Secretary to take into consideration areas with high unemployment rates that exceed the national average to increase opportunities for small business development.

(10 minutes)

15. Braley (IA)

Would require the use of plain writing by the Department of the Treasury and the Small Business Administration for documents relevant to obtaining a benefit or service under the bill.

(10 minutes)

16. Loebsack (IA)

Would include a Sense of Congress stating that agriculture operations, farms, and rural communities should receive equal consideration through lending activities for small businesses, particularly small and mid-size farms and agriculture operations; and attention should be given to ensuring there is adequate small business credit and financing availability in the agriculture and farming sectors.

(10 minutes)

17. Chu (CA), Honda (CA), Green, Al (TX), Carson (IN)

Would (1) require the inclusion of linguistically and culturally appropriate outreach where appropriate to the applicant’s small business lending plan; (2) provide for linguistically and culturally appropriate minority outreach and advertising; (3) explicitly state minority-owned financial institutions are eligible for consideration of by the Secretary for funding; and (4) require the Secretary, to the extent possible, to disaggregate the results of the report on women-owned and minority-owned business by ethnic group and gender.

(10 minutes)