The U.S. House of Representatives has passed H.R. 5297, "The Small Business Lending Fund Act of 2010," by a vote of 241-182.
The bill, sponsored by Rep. Barney Frank, D-Mass., House Financial Services Committee chairman, aims to "boost lending to small businesses by authorizing a fund of up to $30 billion that will be available to financial institutions with no more than $10 billion in assets.
Bill co-sponsors say these funds can be leveraged to up to $300 billion in loans for small businesses. In addition, the bill provides another $2 billion to state lending programs that support small firms."
H.R. 5297, which has been amended since originally passing the House Financial Services Committee, establishes the small-business lending fund at the U.S. Department of the Treasury. Other provisions of Title 1 of the bill include:
Requires applicant institutions to deliver to the appropriate federal banking agency a small-business lending plan describing how its business strategy and operating goals will allow it to address the needs of small businesses in the areas it serves;
Sets forth financial incentives for small-business lending by such institutions;
Instructs the secretary to require capital investment recipients to provide outreach and advertising in the appropriate language of the applicant pool using media outlets that target organizations, trade associations and individuals that represent or work within or are members of minority communities;
Establishes the Small Business Lending Fund Program as separate and distinct from the Troubled Asset Relief Program (TARP). States that an institution shall not be considered a TARP recipient by virtue of a capital investment under this act;
Directs the secretary to study and report to Congress on the number of women-owned and minority-owned businesses that receive assistance as a result of the program.
To view a complete summary of the legislation, along with the full text, visit ASA’s legislative website. Click on the "Track Current Legislation" button, then scroll down to H.R. 5297 and click on the link for more information.
The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA’s headquarters is in Bedford, TX.