Sec. 606. Maximum loan amount for 504 loans
688 words·~3 min read·
/bill/116/hr/925/eah/section-606A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 502(2)(A)(iii) of the Small Business Investment Act of 1958 ( 15 U.S.C. 696(2)(A)(iii) ) is amended by striking $5,500,000 and inserting $6,500,000 . Section 521(a) of title V of division E of the Consolidated Appropriations Act, 2016 ( Public Law 114–113 ; 129 Stat. 2463; 15 U.S.C. 696 note) is repealed. Section 502(7) of the Small Business Investment Act of 1958 ( 15 U.S.C. 696(7) ) is amended by adding at the end the following new subparagraph: In this subparagraph— the term borrower means a small business concern that submits an application to a development company for financing under this subparagraph; the term eligible fixed asset means tangible property relating to which the Administrator may provide financing under this section; and the term qualified debt means indebtedness that— was incurred not less than 6 months before the date of the application for assistance under this subparagraph; is a commercial loan; the proceeds of which were used to acquire an eligible fixed asset; was incurred for the benefit of the small business concern; and is collateralized by eligible fixed assets; and A project that does not involve the expansion of a small business concern may include the refinancing of qualified debt if— 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; the borrower has been in operation for all of the 2-year period ending on the date the loan application is submitted; and 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.
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. An application for financing under subclause
(I)shall include— a specific description of the expenses for which the additional financing is requested; and an itemization of the amount of each expense. A borrower may not use any part of the financing under this clause for non-business purposes. 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. 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 $75,000. For purposes of subclause (I), the number of employees of a borrower is equal to the sum of— the number of full- time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph; and the product obtained by multiplying— the number of part-time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph, by the quotient obtained by dividing the average number of hours each part time employee of the borrower works each week by 40. The Administrator may provide not more than a total of $7,500,000,000 of financing under this subparagraph for each fiscal year. . During the 1-year period beginning on the date of the enactment of this Act, a development company described under title V of the Small Business Investment Act of 1958 ( 15 U.S.C. 695 et seq.) is authorized to allow the refinancing of a senior loan on an existing project in an amount that, when combined with the outstanding balance on the development company loan, is not more than 90 percent of the total value of the senior loan. Proceeds of such refinancing can be used to support business operating expenses of such development company.
Connectionstraces to 3
Traces to 3 documents
1 reference not yet in our index
- 129 Stat. 2463
Citation graph
cites case law
Sec. 606
Maximum loan amount for 504 loans
Stat.129 Stat. 2463
Cites 4Cited by 0 across 0 sources