15 U.S. Code § 696 - Loans for plant acquisition, construction, conversion and expansion
 So in original. Probably should be “clause”.
Subparagraph (C) of paragraph (7) of this section, as in effect on September 25, 2012 (see 2010 Amendment note below), effective 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, with certain exceptions, see section 521(a) of Pub. L. 114–113, set out as a note below.
2010—Par. (2)(A)(i). Pub. L. 111–240, § 1122(c), substituted “clause (ii), (iii), (iv), or (v)” for “subparagraph (B) or (C)”.
Pub. L. 111–240, § 1112(1), substituted “$5,000,000” for “$1,500,000”.
Par. (2)(A)(ii). Pub. L. 111–240, § 1112(2), substituted “$5,000,000” for “$2,000,000”.
Par. (2)(A)(iii) to (v). Pub. L. 111–240, § 1112(3)–(5), substituted “$5,500,000” for “$4,000,000”.
Par. (7)(C). Pub. L. 111–240, § 1122(b), struck out subpar. (C) relating to refinancing not involving expansions. Text read as follows:
“(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;
“(III) the term ‘qualified debt’ means indebtedness—
“(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.—
“(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 697e(e) of this title, 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.”
Pub. L. 111–240, § 1122(a), added subpar. (C).
2009—Par. (7). Pub. L. 111–5 added par. (7).
2007—Par. (2)(A)(iv), (v). Pub. L. 110–140 added cls. (iv) and (v).
2004—Par. (2). Pub. L. 108–447 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Loans made by the Administration under this section shall be limited to $1,000,000 for each such identifiable small business concern, except loans meeting the criteria specified in section 695(d)(3) of this title, which shall be limited to $1,300,000 for each such identifiable small business concern.”
2000—Par. (2). Pub. L. 106–554, § 1(a)(9) [title III, § 303], amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Loans made by the Administration under this section shall be limited to $750,000 for each such identifiable small-business concern, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern.”
Par. (3)(E). Pub. L. 106–554, § 1(a)(9) [title II, § 208(b)], designated existing provisions as cl. (i), inserted heading, and added cl. (ii).
Par. (6). Pub. L. 106–554, § 1(a)(9) [title VIII, § 802(b)], added par. (6).
1997—Par. (1). Pub. L. 105–135, § 221(1), added par. (1) and struck out former par. (1) which read as follows: “The proceeds of any such loan shall be used solely by such borrower to assist in identifiable small-business concern and for a sound business purpose approved by the Administration.”
Par. (3)(D), (E). Pub. L. 105–135, § 221(2), added subpars. (D) and (E).
Par. (5). Pub. L. 105–135, § 221(3), added par. (5).
1996—Par. (3). Pub. L. 104–208 inserted heading and amended text of par. (3) generally. Prior to amendment, text read as follows: “Any development company assisted under this section must meet 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. Community injection funds may be derived, in whole or in part, from—
“(A) State or local governments;
“(B) banks or other financial institutions;
“(C) foundations or other not-for-profit institutions; or
“(D) a small business concern (or its owners, stockholders, or affiliates) receiving assistance through bodies authorized under this subchapter.”
1990—Par. (2). Pub. L. 101–574 struck out period at end and inserted “, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern.”
1988—Pub. L. 100–590, § 116(b)(1), inserted “Loans for plant acquisition, construction, conversion, and expansion” as section catchline.
Par. (2). Pub. L. 100–418 substituted “$750,000” for “$500,000”.
Par. (4). Pub. L. 100–590, § 116(a), added par. (4).
1981—Pars. (1) to (4). Pub. L. 97–35 redesignated pars. (2) to (4) as (1) to (3), respectively. Former par. (1), which provided that all loans made shall be so secured as reasonably to assure repayment and that in agreements to participate in loans on a deferred basis, such participation by the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement, was struck out.
Par. (5). Pub. L. 97–35 struck out par. (5) which provided that loans, including extensions and renewals, may be made for a period not exceeding twenty-five years and that an extension may be granted up to ten years, if such extension will aid in the orderly liquidation of the loan, and that the Administration may fix the rate of interest.
1978—Par. (4). Pub. L. 95–507 inserted provisions relating to derivation of community injection funds.
1976—Pub. L. 94–305, § 108(a), inserted “acquisition,” after “plant” in introductory text.
Par. (3). Pub. L. 94–305, § 110, substituted “$500,000” for “$350,000”.
1961—Par. (3). Pub. L. 87–341, § 10(1), substituted “$350,000” for “$250,000”.
Par. (5). Pub. L. 87–341, § 10(2), substituted “twenty-five” for “ten” before “years plus such additional period”.
Par. (6). Pub. L. 87–27 struck out par. (6) which provided for termination of authority of the Administration to make loans to local development companies after June 30, 1961.
Amendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.
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