Sec. 4201. State Small Business Credit Initiative

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The State Small Business Credit Initiative Act of 2010 ( 12 U.S.C. 5701 et seq.) is amended— in section 3003— in subsection (b)— by amending paragraph

(1)to read as follows: Not later than 30 days after the date of enactment of subsection (d), the Secretary shall allocate Federal funds to participating States so that each State is eligible to receive an amount equal to what the State would receive under the 2021 allocation, as determined under paragraph (2). ; in paragraph (2)— by striking 2009 each place such term appears and inserting 2021 ; by striking 2008 each place such term appears and inserting 2020 ; in subparagraph (A), by striking The Secretary and inserting With respect to States other than Tribal governments, the Secretary ; in subparagraph (C)(i), by striking 2007 and inserting 2019 ; and by adding at the end the following: With respect to States that are Tribal governments, the Secretary shall determine the 2021 allocation by allocating $500,000,000 among the Tribal governments in the proportion the Secretary determines appropriate, including with consideration to available employment and economic data regarding each such Tribal government. With respect to allocations to States that are Tribal governments, the Secretary may— require Tribal governments that individually or jointly wish to participate in the Program to file a notice of intent with the Secretary not later than 30 days after the date of enactment of subsection (d); and notwithstanding paragraph (1), allocate Federal funds to participating Tribal governments not later than 60 days after the date of enactment of subsection (d). If the Secretary determines that employment data with respect to a State is unavailable from the Bureau of Labor Statistics of the Department of Labor, the Secretary shall consider such other economic and employment data that is otherwise available for purposes of determining the employment data of such State. ; and by striking paragraph (3); and in subsection (c)— in paragraph (1)(A)(iii), by inserting before the period the following: that have delivered loans or investments to eligible businesses ; and by amending paragraph

(4)to read as follows: Any portion of a participating State’s allocated amount that has not been transferred to the State under this section may be deemed by the Secretary to be no longer allocated to the State and no longer available to the State and shall be returned to the general fund of the Treasury or reallocated as described under subparagraph (B), if— the second 1/3 of a State’s allocated amount has not been transferred to the State before the end of the end of the 3-year period beginning on the date that the Secretary approves the State for participation; or the last 1/3 of a State’s allocated amount has not been transferred to the State before the end of the end of the 6-year period beginning on the date that the Secretary approves the State for participation. Any amount deemed by the Secretary to be no longer allocated to a State and no longer available to such State under subparagraph

(A)may be reallocated by the Secretary to other participating States. In making such a reallocation, the Secretary shall not take into account the minimum allocation requirements under subsection (b)(2)(B) or the specific allocation for Tribal governments described under subsection (b)(2)(C). ; in section 3004(d), by striking date of enactment of this Act each place it appears and inserting date of the enactment of section 3003(d) ; in section 3005(b), by striking date of enactment of this Act each place it appears and inserting date of the enactment of section 3003(d) ; in section 3006(b)(4), by striking date of enactment of this Act and inserting date of the enactment of section 3003(d) ; in section 3007(b), by striking March 31, 2011 and inserting March 31, 2022 ; in section 3009, by striking date of enactment of this Act each place it appears and inserting date of the enactment of section 3003(d) ; and in section 3011(b), by striking date of the enactment of this Act each place it appears and inserting date of the enactment of section 3003(d) . In addition to amounts otherwise available, there is hereby appropriated to the Secretary of the Treasury for fiscal year 2021, out of any money in the Treasury not otherwise appropriated, $10,000,000,000, to remain available until expended, to provide support to small businesses responding to and recovering from the economic effects of the COVID–19 pandemic, ensure business enterprises owned and controlled by socially and economically disadvantaged individuals have access to credit and investments, provide technical assistance to help small businesses applying for various support programs, and to pay reasonable costs of administering such Initiative. With respect to amounts appropriated under subparagraph (A)— the Secretary of the Treasury shall complete all disbursements and remaining obligations before September 30, 2030; and any amounts that remain unexpended (whether obligated or unobligated) on September 30, 2030, shall be rescinded and deposited into the general fund of the Treasury. Section 3003 of the State Small Business Credit Initiative Act of 2010 ( 12 U.S.C. 5702 ) is amended by adding at the end the following: Of the amounts appropriated for fiscal year 2021 to carry out the Program, the Secretary shall— allocate $1,500,000,000 to States from funds allocated under this section and, by regulation or other guidance, prescribe Program requirements that the funds be expended for business enterprises owned and controlled by socially and economically disadvantaged individuals; allocate such amounts to States based on the needs of business enterprises owned and controlled by socially and economically disadvantaged individuals, as determined by the Secretary, in each State, and not subject to the allocation formula described under subsection (b); oversee the States’ expenditure of these funds to directly support business enterprises owned and controlled by socially and economically disadvantaged individuals; and establish a minimum amount of support that a State shall provide to business enterprises owned and controlled by socially and economically disadvantaged individuals. Of the amounts appropriated for fiscal year 2021 to carry out the Program, the Secretary shall set aside $1,000,000,000 for an incentive program under which the Secretary shall increase the second 1/3 and last 1/3 allocations for States that demonstrate robust support, as determined by the Secretary, for business concerns owned and controlled by socially and economically disadvantaged individuals in the deployment of prior allocation amounts. . Section 3003 of the State Small Business Credit Initiative Act of 2010 ( 12 U.S.C. 5702 ), as amended by subsection (b), is further amended by adding at the end the following: Of the amounts appropriated to carry out the Program, the Secretary shall allocate not less than $500,000,000 to States from funds allocated under this section to be expended for very small businesses. In this subsection, the term very small business — means a business with fewer than 10 employees; and may include independent contractors and sole proprietors. . Section 3004 of the State Small Business Credit Initiative Act of 2010 ( 12 U.S.C. 5703 ) is amended by adding at the end the following: The Secretary may not approve a State to be a participating State unless the State has provided the Secretary with a plan detailing how minority depository institutions and community development financial institutions will be encouraged to participate in State programs. . Section 3004 of the State Small Business Credit Initiative Act of 2010 ( 12 U.S.C. 5703 ), as amended by subsection (d), is further amended by adding at the end the following: The Secretary may not approve a State to be a participating State unless the State has provided the Secretary with a description of how the State will expeditiously utilize funds to support small businesses, including business enterprises owned and controlled by socially and economically disadvantaged individuals, in responding to and recovering from the economic effects of the COVID–19 pandemic. . Section 3009 of the State Small Business Credit Initiative Act of 2010 ( 12 U.S.C. 5708 ) is amended by adding at the end the following: Of the amounts appropriated for fiscal year 2021 to carry out the Program, $500,000,000 may be used by the Secretary to— provide funds to States to carry out a technical assistance plan under which a State will provide legal, accounting, and financial advisory services, either directly or contracted with legal, accounting, and financial advisory firms, with priority given to business enterprises owned and controlled by socially and economically disadvantaged individuals, to very small businesses and business enterprises owned and controlled by socially and economically disadvantaged individuals applying for— State programs under the Program; and other State or Federal programs that support small businesses; transfer amounts to the Minority Business Development Agency, so that the Agency may use such amounts in a manner the Agency determines appropriate, including through contracting with third parties, to provide technical assistance to business enterprises owned and controlled by socially and economically disadvantaged individuals applying to— State programs under the Program; and other State or Federal programs that support small businesses; and contract with legal, accounting, and financial advisory firms (with priority given to business enterprises owned and controlled by socially and economically disadvantaged individuals), to provide technical assistance to business enterprises owned and controlled by socially and economically disadvantaged individuals applying to— State programs under the Program; and other State or Federal programs that support small businesses. . Section 3004 of the State Small Business Credit Initiative Act of 2010 ( 15 U.S.C. 5702 ), as amended by subsection (e), is further amended by adding at the end the following: The Secretary may not approve a State to be a participating State unless the State has agreed that no lending activity supported by amounts received by the State under the Program would result in predatory lending, as determined by the Secretary. . Section 3002(10) of the State Small Business Credit Initiative Act of 2010 ( 12 U.S.C. 5701(10) ) is amended— in subparagraph (C), by striking and at the end; in subparagraph (D), by striking the period at the end and inserting ; and ; and by adding at the end the following: a Tribal government, or a group of Tribal governments that jointly apply for an allocation. . Section 3002 of the State Small Business Credit Initiative Act of 2010 ( 12 U.S.C. 5701 ) is amended by adding at the end the following: The term business enterprise owned and controlled by socially and economically disadvantaged individuals means a business that— if privately owned, 51 percent is owned by one or more socially and economically disadvantaged individuals; if publicly owned, 51 percent of the stock is owned by one or more socially and economically disadvantaged individuals; and in the case of a mutual institution, a majority of the Board of Directors, account holders, and the community which the institution services is predominantly comprised of socially and economically disadvantaged individuals. The term community development financial institution has the meaning given that term under section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994. The term minority depository institution has the meaning given that term under section 308(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. The term socially and economically disadvantaged individual means an individual who is a socially disadvantaged individual or an economically disadvantaged individual, as such terms are defined, respectively, under section 8 of the Small Business Act ( 15 U.S.C. 637 ) and the regulations thereunder. The term Tribal government means a government of an Indian Tribe listed on the list of recognized Tribes published by the Secretary of the Interior under section 104 of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131 ) and means the Office of Hawaiian Affairs established by the Constitution of the State of Hawaii. . The amendments made by this section shall apply with respect to funds appropriated under this section and funds appropriated on and after the date of enactment of this section.

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