H. Rept. 115-941 - SMALL BUSINESS ACCESS TO CAPITAL AND EFFICIENCY ACT115th Congress (2017-2018)
Committee Report
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115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-941
======================================================================
SMALL BUSINESS ACCESS TO CAPITAL AND EFFICIENCY ACT
_______
September 12, 2018.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Chabot, from the Committee on Small Business, submitted the
following
R E P O R T
[To accompany H.R. 6348]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business, to whom was referred the
bill (H.R. 6348) to adjust the real estate appraisal thresholds
under the section 504 program to bring them into line with the
thresholds used by the Federal banking regulators, and for
other purposes, having considered the same, report favorably
thereon without amendment and recommend that the bill do pass.
CONTENTS
Page
I. Purpose and Bill Summary........................................2
II. Background and the Need for Legislation.........................2
III. Hearings........................................................3
IV. Committee Consideration.........................................3
V. Committee Votes.................................................4
VI. Section-by-Section Analysis of H.R. 6348........................6
VII. Congressional Budget Office Cost Estimate.......................6
VIII. Unfunded Mandates...............................................7
IX. New Budget Authority, Entitlement Authority and Tax Expenditures7
X. Oversight Findings..............................................7
XI. Statement of Constitutional Authority...........................8
XII. Congressional Accountability Act................................8
XIII. Federal Advisory Committee Statement............................8
XIV. Statement of No Earmarks........................................8
XV. Statement of Duplication of Federal Programs....................8
XVI. Disclosure of Directed Rule Makings.............................8
XVII. Performance Goals and Objectives................................8
XVIII.Changes in Existing Law Made by the Bill, as Reported...........8
I. Purpose and Bill Summary
Although the economy continues to improve, small
businesses, entrepreneurs, and startups regularly face
challenges accessing capital. To assist creditworthy small
businesses, the Small Business Administration (SBA) offers
numerous lending programs, including the 504/Certified
Development Company (504/CDC) Loan Program. With a focus on
long-term and fixed-rate terms, the 504/CDC Loan Program
supports small businesses with numerous lending needs,
including financing related to real estate.
While not all property transactions are the same, most
commercial real estate transactions require a formal appraisal
above a certain dollar value. Set in 1994 by financial
regulators, all commercial real estate transactions above
$250,000 require a formal appraisal. Likewise, SBA's 504/CDC
appraisal threshold level is also $250,000.
After 24 years, the Federal Reserve, the Office of the
Comptroller of the Currency, and the Federal Deposit Insurance
Corporation updated their threshold level in the spring of 2018
from $250,000 to $500,000.
With an ever-growing list of burdens impacting small
businesses, an outdated SBA appraisal threshold level will
produce confusion and uncertainty for small businesses, and the
very institutions that strive to serve them.
To similarly modernize the SBA 504/CDC Loan Program
threshold, H.R. 6348, the Small Business Access to Capital
Efficiency (ACE) Act, was introduced to benchmark the SBA
threshold with the value set by financial regulators.
II. Background and Need for Legislation
To assist creditworthy small businesses that cannot access
traditional lending sources, the SBA offers the 504/CDC Loan
Program. The 504/CDC Loan Program provides long-term and fixed-
rate financing to small businesses. Originally created in the
Small Business Investment Act of 1958\1\, the 504/CDC Loan
Program assists small businesses with the acquisition of major
fixed assets, such as real estate or machinery or for equipment
purchases that expand or update their small businesses.
---------------------------------------------------------------------------
\1\15 U.S.C. Sec. 695.
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In order to operate the program and cover any losses, the
SBA charges fees to protect the American taxpayer in accordance
to the 1990 Federal Credit Reform Act (FCRA).\2\ Because fees
have been sufficient, the 504/CDC Loan Program has not needed
an appropriation of funds from Congress for the last three
fiscal years, and SBA has requested a zero subsidy for FY
2019.\3\
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\2\For any government loan program, FCRA requires an agency to
collect an appropriation or fee to cover the cost of the program. 2
U.S.C. Sec. 661.
\3\For FY 2016, SBA requested zero subsidy. SBA, FY 2016
Congressional Budget Justification And FY 2014 Annual Performance
Report at 41. For FY 2017, SBA requested zero subsidy. SBA, FY 2017
Congressional Budget Justification And FY 2015 Annual Performance
Report at 39. For FY 2018, SBA requested zero subsidy. FY 2018
Congressional Budget Justification And FY 2016 Annual Performance
Report at 31. For FY 2019, SBA requested zero subsidy. FY 2019
Congressional Budget Justification And FY 2017 Annual Performance
Report at 34.
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Unique to the 504/CDC Loan Program is the role of the
certified development company, or CDC, which must be a non-
profit corporation that is certified and regulated by SBA to
participate in the program.\4\ Along with the small businesses
and the financial institutions that are involved in the credit
transaction, CDCs also play a major role in the cost structure
of the loan program. A standard loan is organized where the
small business or borrower is responsible for 10 percent of the
project. The financial institution is in the senior lien
position and is responsible for 50 percent of the value of the
project, and the remaining balance of 40 percent belongs to the
CDC, which is in the second lien position, through a federal
government guaranteed debenture. Importantly, funds are not
lent by SBA; rather SBA guarantees the loans made by the CDC.
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\4\SOP 50 10 5(I). Subpart A., Ch. 3(I)(B).
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A hallmark of the 504/CDC Loan Program, and a
differentiating characteristic among SBA's many loan products,
is the focus on economic development. Eligibility in the loan
program and the size of the loan is determined based on the
borrower either meeting a job creation or job retention
requirement. Job creation is defined as creating or retaining
at least one job for every $65,000 spent on the project. If
meeting the job creation or retention requirement cannot be
achieved, a borrower can still qualify if they meet either one
community development goal or a number of public policy
goals.\5\
---------------------------------------------------------------------------
\5\The community development goals are: improving, diversifying, or
stabilizing the local economy; stimulating business development;
generating new income; helping manufacturing firms; or assisting the
labor supply. The public policy goals are: revitalizing a business
district with a redevelopment plan; increase of exports; increase of
women owned small businesses, veteran owned small businesses, or
minority owned businesses; assisting with rural development; increasing
productivity or competitiveness; modernizing facilities to meet health,
safety and environmental requirements; helping businesses in areas
impacted by Federal budget reductions or base closings; or reducing the
unemployment rate. 13 Sec. CFR 120.862.
---------------------------------------------------------------------------
With a concentration on long-term and fixed-rate loans, the
504/CDC Loan Program is an important small business lending
tool for real estate transactions. When the transaction is
above a certain dollar value, a formal real estate appraisal is
required before the transaction can be completed. In 1994,
federal banking regulators, including the Federal Reserve, the
Office of the Comptroller of the Currency, and the Federal
Deposit Insurance Corporation, set the appraisal threshold at
$250,000.\6\ Although the limit for the 504/CDC Loan Program is
set at the same value, the SBA's appraisal threshold is set in
statute within the Small Business Investment Act.\7\
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\6\59 Fed. Reg. 29,482 (June 7, 1994).
\7\15 U.S.C. 696(3)(E)(ii).
---------------------------------------------------------------------------
After more than two decades, federal banking regulators
decided to update and modernize the real estate appraisal
threshold from $250,000 to $500,000.\8\ Due to the 504/CDC Loan
Program threshold value being codified in statute, H.R.6348 was
introduced to modernize SBA's real estate appraisal threshold.
---------------------------------------------------------------------------
\8\83 Fed. Reg. 15,019 (Apr. 9, 2018)
---------------------------------------------------------------------------
III. Hearings
While one hearing has been held by the Committee in the
115th Congress exploring SBA's 504/CDC loan program, the
hearing did not specifically examine reforming the program's
real estate threshold.
IV. Committee Consideration
The Committee on Small Business met in open session, with a
quorum being present, on July 18, 2018, and ordered H.R. 6348
be favorably reported, as amended, to the House via voice vote
at 11:18 A.M. During the markup, no amendments were offered.
V. Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report the legislation and amendments
thereto. The Committee voted via voice vote to report H.R. 6348
to the House at 11:18 A.M.
VI. Section-by-Section Analysis of H.R. 6348
Section 1. Short title
This section designates the bill as the ``Small Business
Access to Capital and Efficiency Act'' or the ``Small Business
ACE Act.''
Section 2. Appraisal thresholds
This section amends sections 502(3)(E)(ii) of the Small
Business Investment Act of 1958 (15 U.S.C. 696(3)(E)(ii)) by
updating the SBA's 504/CDC Loan Program commercial real estate
appraisal threshold to correspond with the level set by federal
banking regulators.
H.R. 6348 does not set a specific dollar value; rather, it
matches the level set by the federal banking regulators.
Additionally, if one federal banking regulator has a different
value compared to the others, the SBA 504/CDC Loan Program
appraisal value will match the regulator with the lowest
threshold. Federal banking regulator exemptions do not apply,
as the 504/CDC Loan Program's appraisal threshold follows the
Small Business Investment Act.
Mirroring the value set by federal banking regulators,
instead of codifying a value in statute, will remove
uncertainty for SBA 504/CDC loans when federal banking
regulators set their own value. As federal banking regulators
update their value, the SBA value will move as well. This is
important because many SBA lending partners, which include
community banks and credit unions, are also regulated by
federal banking regulators because of their conventional
lending products. H.R. 6348 will remove the uncertainty lenders
now have juggling two different real estate appraisal
thresholds.
VII. Congressional Budget Office Cost Estimate
The Congressional Budget Office, pursuant to Sec. 402 of
the Congressional Budget Act of 1974, submitted a cost estimate
for H.R. 6348 that stated enacting the legislation would not
increase net direct spending or on budget deficits in any of
the four 10-year periods beginning in 2029.
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 13, 2018.
Hon. Steve Chabot,
Chairman, Committee on Small Business,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6348, the Small
Business ACE Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Stephen
Rabent.
Sincerely,
Mark P. Hadley
(For Keith Hall, Director).
Enclosure.
H.R. 6348--Small Business ACE Act
Under current law, small businesses that receive loans
under the Small Business Administration's (SBA's) 504/Certified
Development Company Loan program are required to receive an
appraisal on commercial real property used as collateral in
securing those loans if the estimated value of the property is
$250,000 or greater. H.R. 6348 would raise that threshold to
the lowest of the thresholds used by the Board of Governors of
the Federal Reserve System, the Comptroller of the Currency,
and the Federal Deposit Insurance Corporation to determine when
a commercial real estate transaction requires an appraisal. The
threshold for all three agencies is currently $500,000.
Using information from the SBA on the costs of similar
activities, CBO estimates that implementing the bill would cost
less than $500,000 for the agency to update its program rules;
such spending would be subject to the availability of
appropriated funds. CBO also estimates that any change in the
subsidy cost of SBA loans, which is subject to appropriation,
would also be insignificant.
Enacting H.R. 6348 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 6348 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
H.R. 6348 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Stephen Rabent.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
VIII. Unfunded Mandates
H.R. 6348 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act, Pub.
L. No. 104-4, and would impose no costs on state, local or
tribal governments.
IX. New Budget Authority, Entitlement Authority and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement
authority, and tax expenditures. The Committee adopts the cost
estimate prepared by the Director of the Congressional Budget
Office pursuant to Sec. 402 of the Congressional Budget Act of
1974.
X. Oversight Findings
In accordance with clause 2(b)(1) of rule X of the Rules of
the House, the oversight findings and recommendations of the
Committee on Small Business with respect to the subject matter
contained in H.R. 6348 are incorporated into the descriptive
portions of this report.
XI. Statement of Constitutional Authority
Pursuant to clause 7 of rule XIII of the Rules of the House
of Representatives, the Committee finds that the authority for
this legislation in Art. I, Sec. 8, cl. 3 of the Constitution
of the United States.
XII. Congressional Accountability Act
H.R. 6348 does not relate to the terms and conditions of
employment or access to public services or accommodations
within the meaning of Sec. 102(b)(3) of Pub. L. No. 104-1.
XIII. Federal Advisory Committee Act Statement
H.R. 6348 does not establish or authorize the establishment
of any new advisory committees as that term is defined in the
Federal Advisory Committee Act, 5 U.S.C. App. 2.
XIV. Statement of No Earmarks
Pursuant to clause 9 of rule XXI, H.R. 6348 does not
contain any congressional earmarks, limited tax benefits or
limited tariff benefits as defined in subsections (d), (e) or
(f) of clause 9 of rule XXI of the Rules of the House.
XV. Statement of Duplication of Federal Programs
Pursuant to clause 3(c) of the rule XIII of the Rules of
the House, no provision of H.R. 6348 establishes or
reauthorizes a program of the federal government known to be
duplicative of another federal program, a program that was
included in any report from the United States Government
Accountability Office pursuant to Sec. 21 of Pub. L. No. 111-
139, or a program related to a program identified in the most
recent catalog of federal domestic assistance.
XVI. Disclosure of Directed Rule Makings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House, H.R. 6348 does not direct any rule making.
XVII. Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House, the Committee establishes the following performance-
related goals and objectives in this legislation:
H.R. 6348 would update SBA's 504/CDC Loan Program's
commercial real estate appraisal threshold to match the level
set by federal financial regulators.
XVIII. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
SMALL BUSINESS INVESTMENT ACT OF 1958
* * * * * * *
TITLE V--LOANS TO STATE AND LOCAL DEVELOPMENT COMPANIES
* * * * * * *
LOANS FOR PLANT ACQUISITION, CONSTRUCTION, CONVERSION, AND EXPANSION
Sec. 502. The Administration may, in addition to its
authority under section 501, make loans for plant acquisition,
construction, conversion or expansion, including the
acquisition of land, to State and local development companies,
and such loans may be made or effected either directly or in
cooperation with banks or other lending institutions through
agreements to participate on an immediate or deferred basis:
Provided, however, That the foregoing powers shall be subject
to the following restrictions and limitations:
(1) Use of proceeds.--The proceeds of any such loan
shall be used solely by the borrower to assist 1 or
more identifiable small business concerns and for a
sound business purpose approved by the Administration.
(2) Maximum amount.--
(A) In general.--Loans made by the
Administration under this section shall be
limited to--
(i) $5,000,000 for each small
business concern if the loan proceeds
will not be directed toward a goal or
project described in clause (ii),
(iii), (iv), or (v);
(ii) $5,000,000 for each small
business concern if the loan proceeds
will be directed toward 1 or more of
the public policy goals described under
section 501(d)(3);
(iii) $5,500,000 for each project of
a small manufacturer;
(iv) $5,500,000 for each project that
reduces the borrower's energy
consumption by at least 10 percent; and
(v) $5,500,000 for each project that
generates renewable energy or renewable
fuels, such as biodiesel or ethanol
production.
(B) Definition.--As used in this paragraph,
the term ``small manufacturer'' means a small
business concern--
(i) the primary business of which is
classified in sector 31, 32, or 33 of
the North American Industrial
Classification System; and
(ii) all of the production facilities
of which are located in the United
States.
(3) Criteria for assistance.--
(A) In general.--Any development company
assisted under this section or section 503 of
this title must meet the criteria established
by the Administration, including the extent of
participation to be required or amount of paid-
in capital to be used in each instance as is
determined to be reasonable by the
Administration.
(B) Community injection funds.--
(i) Sources of funds.--Community
injection funds may be derived, in
whole or in part, from--
(I) State or local
governments;
(II) banks or other financial
institutions;
(III) foundations or other
not-for-profit institutions; or
(IV) the small business
concern (or its owners,
stockholders, or affiliates)
receiving assistance through a
body authorized by this title.
(ii) Funding from institutions.--Not
less than 50 percent of the total cost
of any project financed pursuant to
clauses (i), (ii), or (iii) of
subparagraph (C) shall come from the
institutions described in subclauses
(I), (II), and (III) of clause (i).
(C) Funding from a small business concern.--
The small business concern (or its owners,
stockholders, or affiliates) receiving
assistance through a body authorized by this
title shall provide--
(i) at least 15 percent of the total
cost of the project financed, if the
small business concern has been in
operation for a period of 2 years or
less;
(ii) at least 15 percent of the total
cost of the project financed if the
project involves the construction of a
limited or single purpose building or
structure;
(iii) at least 20 percent of the
total cost of the project financed if
the project involves both of the
conditions set forth in clauses (i) and
(ii); or
(iv) at least 10 percent of the total
cost of the project financed, in all
other circumstances, at the discretion
of the development company.
(D) Seller financing.--Seller-provided
financing may be used to meet the requirements
of subparagraph (B), if the seller subordinates
the interest of the seller in the property to
the debenture guaranteed by the Administration.
(E) Collateralization.--
(i) In general.--The collateral
provided by the small business concern
shall generally include a subordinate
lien position on the property being
financed under this title, and is only
1 of the factors to be evaluated in the
credit determination. Additional
collateral shall be required only if
the Administration determines, on a
case-by-case basis, that additional
security is necessary to protect the
interest of the Government.
(ii) Appraisals.--[With respect to]
(I) In general._With respect
to commercial real property
provided by the small business
concern as collateral, an
appraisal of the property by a
State licensed or certified
appraiser--
[(I)] (aa) shall be
required by the
Administration before
disbursement of the
loan if the estimated
value of that property
[is more than $250,000]
is more than the
Federal banking
regulator appraisal
threshold; or
[(II)] (bb) may be
required by the
Administration or the
lender before
disbursement of the
loan if the estimated
value of that property
[is $250,000 or less]
is equal to or less
than the Federal
banking regulator
appraisal threshold,
and such appraisal is
necessary for
appropriate evaluation
of creditworthiness.
(II) Federal banking
regulator appraisal threshold
defined.--For purposes of this
clause, the term ``Federal
banking regulator appraisal
threshold'' means the lesser of
the threshold amounts set by
the Board of Governors of the
Federal Reserve System, the
Comptroller of the Currency,
and the Federal Deposit
Insurance Corporation for when
a federally related transaction
that is a commercial real
estate transaction requires an
appraisal prepared by a State
licensed or certified
appraiser.
(4) If the project is to construct a new facility, up
to 33 per centum of the total project may be leased, if
reasonable projections of growth demonstrate that the
assisted small business concern will need additional
space within three years and will fully utilize such
additional space within ten years.
(5) Limitation on leasing.--In addition to any
portion of the project permitted to be leased under
paragraph (4), not to exceed 20 percent of the project
may be leased by the assisted small business to 1 or
more other tenants, if the assisted small business
occupies permanently and uses not less than a total of
60 percent of the space in the project after the
execution of any leases authorized under this section.
(6) Ownership requirements.--Ownership requirements
to determine the eligibility of a small business
concern that applies for assistance under any credit
program under this title shall be determined without
regard to any ownership interest of a spouse arising
solely from the application of the community property
laws of a State for purposes of determining marital
interests.
(7) Permissible debt refinancing.--
(A) In general.--Any financing approved under
this title may include a limited amount of debt
refinancing.
(B) Expansions.--If the project involves
expansion of a small business concern, any
amount of existing indebtedness that does not
exceed 50 percent of the project cost of the
expansion may be refinanced and added to the
expansion cost, if--
(i) the proceeds of the indebtedness
were used to acquire land, including a
building situated thereon, to construct
a building thereon, or to purchase
equipment;
(ii) the existing indebtedness is
collateralized by fixed assets;
(iii) the existing indebtedness was
incurred for the benefit of the small
business concern;
(iv) the financing under this title
will be used only for refinancing
existing indebtedness or costs relating
to the project financed under this
title;
(v) the financing under this title
will provide a substantial benefit to
the borrower when prepayment penalties,
financing fees, and other financing
costs are accounted for;
(vi) the borrower has been current on
all payments due on the existing debt
for not less than 1 year preceding the
date of refinancing; and
(vii) the financing under section 504
will provide better terms or rate of
interest than the existing indebtedness
at the time of refinancing.
=======================================================================
[Note: Section 521(a) of division E of Public Law 114-113
provides: Subparagraph (C) of section 502(7) of the Small
Business Investment Act of 1958 (15 U.S.C. 696(7)), as in
effect on September 25, 2012, shall be in effect in any fiscal
year during which the cost to the Federal Government of making
guarantees under such subparagraph (C) and section 503 of the
Small Business Investment Act of 1958 (15 U.S.C. 697) is zero,
except that subclause (I)(bb) and subclause (II) of clause (iv)
of such subparagraph (C) shall not be in effect; unless, upon
application by a development company and after determining that
the refinance loan is needed for good cause, the Administrator
of the Small Business Administration waives this paragraph, a
development company shall limit its financings under section
502 of the Small Business Investment Act of 1958 (15 U.S.C.
696) so that, during any fiscal year, new financings under such
subparagraph (C) shall not exceed 50 percent of the dollars
loaned under title V of the Small Business Investment Act of
1958 (15 U.S.C. 695 et seq.) during the previous fiscal year;
and clause (iv)(I)(aa) of such subparagraph (C) shall be
applied by substituting ``job creation and retention'' for
``job creation''. Effective on September 27, 2012, subparagraph
(C) of section 502(7) of the Small Business Investment Act of
1958 (15 U.S.C. 696(7)) was repealed by section 1122(b) of
Public Law 111-240. Prior to such amendment having taken
effect, subparagraph (C) read as follows:]
(C) Refinancing not involving expansions.--
(i) Definitions.--In this
subparagraph--
(I) the term ``borrower''
means a small business concern
that submits an application to
a development company for
financing under this
subparagraph;
(II) the term ``eligible
fixed asset'' means tangible
property relating to which the
Administrator may provide
financing under this section;
and
(III) the term ``qualified
debt'' means indebtedness--
(aa) that--
(AA) was
incurred not
less than 2
years before
the date of the
application for
assistance
under this
subparagraph;
(BB) is a
commercial
loan;
(CC) is not
subject to a
guarantee by a
Federal agency;
(DD) the
proceeds of
which were used
to acquire an
eligible fixed
asset;
(EE) was
incurred for
the benefit of
the small
business
concern; and
(FF) is
collateralized
by eligible
fixed assets;
and
(bb) for which the
borrower has been
current on all payments
for not less than 1
year before the date of
the application.
(ii) Authority.--A project that does
not involve the expansion of a small
business concern may include the
refinancing of qualified debt if--
(I) the amount of the
financing is not more than 90
percent of the value of the
collateral for the financing,
except that, if the appraised
value of the eligible fixed
assets serving as collateral
for the financing is less than
the amount equal to 125 percent
of the amount of the financing,
the borrower may provide
additional cash or other
collateral to eliminate any
deficiency;
(II) the borrower has been in
operation for all of the 2-year
period ending on the date of
the loan; and
(III) for a financing for
which the Administrator
determines there will be an
additional cost attributable to
the refinancing of the
qualified debt, the borrower
agrees to pay a fee in an
amount equal to the anticipated
additional cost.
(iii) Financing for business
expenses.--
(I) Financing for business
expenses.--The Administrator
may provide financing to a
borrower that receives
financing that includes a
refinancing of qualified debt
under clause (ii), in addition
to the refinancing under clause
(ii), to be used solely for the
payment of business expenses.
(II) Application for
financing.--An application for
financing under subclause (I)
shall include--
(aa) a specific
description of the
expenses for which the
additional financing is
requested; and
(bb) an itemization
of the amount of each
expense.
(III) Condition on additional
financing.--A borrower may not
use any part of the financing
under this clause for non-
business purposes.
(iv) Loans based on jobs.--
(I) Job creation and
retention goals.--
(aa) In general.--The
Administrator may
provide financing under
this subparagraph for a
borrower that meets the
job creation goals
under subsection (d) or
(e) of section 501.
(bb) Alternate job
retention goal.--The
Administrator may
provide financing under
this subparagraph to a
borrower that does not
meet the goals
described in item (aa)
in an amount that is
not more than the
product obtained by
multiplying the number
of employees of the
borrower by $65,000.
(II) Number of employees.--
For purposes of subclause (I),
the number of employees of a
borrower is equal to the sum
of--
(aa) the number of
full-time employees of
the borrower on the
date on which the
borrower applies for a
loan under this
subparagraph; and
(bb) the product
obtained by
multiplying--
(AA) the
number of part-
time employees
of the borrower
on the date on
which the
borrower
applies for a
loan under this
subparagraph;
by
(BB) the
quotient
obtained by
dividing the
average number
of hours each
part time
employee of the
borrower works
each week by
40.
(v) Nondelegation.--Notwithstanding
section 508(e), the Administrator may
not permit a premier certified lender
to approve or disapprove an application
for assistance under this subparagraph.
(vi) Total amount of loans.--The
Administrator may provide not more than
a total of $7,500,000,000 of financing
under this subparagraph for each fiscal
year.
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[all]