H. Res. 875: H.R. 3854 - Small Business Financing and Investment Act of 2009

COMMITTEE ACTION: REPORTED BY A RECORD VOTE OF 7-3 on Wednesday October 28, 2009.
FLOOR ACTION: ADOPTED BY A VOICE VOTE on Thursday, October 29, 2009.

MANAGERS: Pingree/Sessions

111th Congress 
1st Session

H.RES 875

[Report No. 111-317]

 

H.R. 3854 - Small Business Financing and Investment Act of 2009

  1. Structured rule.
  1. Provides one hour of general debate equally divided and controlled by the Chair and Ranking Minority Member of the Committee on Small Business.
  1. Waives all points of order against consideration of the bill except for clauses 9 and 10 of rule XXI.
  1. Provides that the amendment printed in part A of the report of the Committee on Rules accompanying this resolution shall be considered as adopted and provides that the bill, as amended, shall be considered as read.
  1. Waives all points of order against the bill, as amended. This waiver does not affect the point of order available under clause 9 of rule XXI (regarding earmark disclosure).
  1. Provides that no amendments shall be in order except those further amendments printed in part B of the Rules Committee report accompanying the resolution.
  1. 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.

 

  1. Waives all points of order against the amendments printed in the report except for clauses 9 and 10 of rule XXI.

 

  1. Provides that for those amendments reported from the Committee of the Whole, the question of their adoption shall be put to the House en gros and without demand for division of the question.
  1. Provides one motion to recommit with or without instructions.
  1. Provides that the Chair may entertain a motion that the Committee rise only if offered by the chair of the Committee on Small Business or her designee.
  1. 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).
  1. Provides that it shall be in order at any time through the legislative day of October 30, 2009, for the Speaker to entertain motions that the House suspend the rules relating to a measure addressing unemployment compensation.

RESOLUTION

Resolved, That 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. 3854) to amend the Small Business Act and the Small Business Investment Act of 1958 to improve programs providing access to capital under such Acts, 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 shall not exceed one hour 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. The amendment printed in part A of the report of the Committee on Rules accompanying this resolution shall be considered as adopted in the House and in the Committee of the Whole. The bill, as amended, shall be considered as the original bill for the purpose of further amendment under the five-minute rule and shall be considered as read. All points of order against provisions in the bill, as amended, are waived. Notwithstanding clause 11 of rule XVIII, no further amendment to the bill, as amended, shall be in order except the amendments printed in part B of the report of the Committee on Rules. Each such 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, as amended, to the House with such further amendments as may have been adopted. In the case of sundry further amendments reported from the Committee, the question of their adoption shall be put to the House en gros and without division of the question. 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.

            Sec. 2. The Chair may entertain a motion that the Committee rise only if offered by the chair of the Committee on Small Business or her 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).

            Sec. 3.  It shall be in order at any time through the legislative day of October 30, 2009, for the Speaker to entertain motions that the House suspend the rules relating to a measure addressing unemployment compensation.

SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED

Velázquez (NY), Graves (MO)

Would make changes to the bill to eliminate and revise provisions that the Congressional Budget Office has determined to carry a direct cost.  These changes remove any direct spending from the bill.

 

SUMMARY OF AMENDMENTS IN PART B TO BE MADE IN ORDER

(summaries derived from information provided by sponsors)

1. Velázquez (NY)

Would make technical and conforming changes to the bill, including clarifications of legislative intent.  It also would  incorporate provisions that would enhance investing in veteran-owned businesses in the New Markets Venture Capital program.  It would direct the SBA to conduct a study on the efficacy of the Business Stabilization loan program that was established under the American Recovery and Reinvestment Act, a study on the existing loan size limits in the SBA’s 7(a), CDC, and Microloan, and a study on the state of private sector lending for small businesses over the past four years.  It contains provisions that would enable franchises with temporary workers to qualify for SBA lending programs and would enhance the ability of small firms to use 7(a) loans to purchase unoccupied manufacturing centers or equipment.  The delivery of capital with Business Stabilization loans would also be improved, with provisions that will make more loans in cities with unemployment rates that exceed state rates by 25 percent.  The Health IT Financing program would also be expanded with eligibility for home health care providers.

(20 minutes)

2. Schock (IL)

Would require the SBA Administrator to pay the claim of a lender who demonstrates it followed the applicable requirements of the National Lender Training Program (Sec. 106), unless the SBA has clear and convincing evidence demonstrating that the lender failed to comply with regulatory requirements. 

(10 minutes)

3. Schock (IL)

Would require quarterly reports on the SBA Administrators progress towards the expansion of the Renewable Energy Capital Investment Program.  It would require the SBA Administrator to establish regulations  necessary to carry out the program within 180 days after enactment.

(10 minutes)

4. Bright (AL)

Would require each of the SBA district offices to establish a marketing plan for rural businesses regarding financing and investment alternatives, designate an employer as a Rural Business Outreach Specialist, and host at least one annual outreach seminar. 

(10 minutes)

5. Flake, Jeff (AZ)

Would prohibit the earmarking of grants made available through the Small Business Early-Stage Investment program.

(10 minutes)

6. Kosmas (FL)

Would add “photonics technology” to the list of targeted business sectors qualified to receive grants under the Small Business Early-Stage Investment Program.

(10 minutes)

7. Gingrey (GA)

Would increase from 5 years to 7 years the period to participate in the Small Business Health Information Technology Financing Program.

(10 minutes)

8. Kratovil (MD)

Would give the SBA Administrator authority under the 7(a) program to guarantee 100 percent of loans made to veteran owned small businesses. 

(10 minutes)

9. Paulsen (MN)

Would require a study and a report to Congress by the SBA, within one year of enactment, to determine the feasibility of a program to increase investment in the research, development and commercialization of medical technology by small businesses in a similar matter to the renewable energy program currently administered by the SBA.

(10 minutes)

10. Massa (NY)

Would create youth entrepreneurship programs in the Small Business Administration to assist the development of new businesses by young people who remain in their local area. 

(10 minutes)

11. Foxx (NC)

Would explicitly sunset all programs contained in the bill at the end of their authorizations or five years, whichever is earlier.  The Administrator would maintain the authority to carry out responsibilities regarding all outstanding loans, grants, and other outstanding commitments made before the authorization expiration.

(10 minutes)

12. Kissell, Larry (NC)

Would amend Section 7(a)(7) of the Small Business Act to allow for repayment of SBA 7(A) loans  (granted to small businesses after enactment of this bill) to be deferred for a maximum of 12 months from receipt of final loan disbursement if that small business concern is classified in sector 23 of the North American Industry Classification System.

(10 minutes)

13. Peters (MI)

Would increase the maximum amount of stabilization loans in high unemployment areas to $75,000 and delays repayment of stabilization loans in high unemployment areas to 18 months for new loans made after enactment of this act. It would give the SBA administrator ability to designate high unemployment areas as eligible for operating assistance grants under the new market venture capital program.

(10 minutes)

14. Brown-Waite (FL)

Would require individuals directly engaged in loan application analysis and/or underwriting under the new Capital Backstop Program (Sec. 111) to have at least two years worth of experience in those activities.  

(10 minutes)

15. Brown-Waite (FL)

Would clarify that the Capital Backstop Program (Sec. 111) is authorized to start immediately and to operate through 2011, regardless of whether the recession is declared officially over during that time or SBA loan volume drops another 30% next year.  It would restore such requirements after September 30, 2011.

(10 minutes)

16. Nye (VA), Buchanan (FL)

Would allow the SBA Administrator to make loans to homeowners to be used for the repair or replacement of toxic drywall manufactured in China.

(10 minutes)