Page:United States Statutes at Large Volume 124.djvu/2536

 124 STAT. 2510 PUBLIC LAW 111–240—SEPT. 27, 2010 (2) allows prospective borrowers to compare rates on loans guaranteed by the Small Business Administration. SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY. Section 503(f) of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 155) is amended by striking ‘‘on the date 2 years after the date of enact- ment of this section’’ and inserting ‘‘2 years after the date of the first sale of a pool of first lien position 504 loans guaranteed under this section to a third-party investor’’. PART II—SMALL BUSINESS ACCESS TO CAPITAL SEC. 1122. LOW -INTEREST REFINANCING UNDER THE LOCAL DEVELOP - MENT BUSINESS LOAN PROGRAM. (a) REFINANCING.—Section 502(7) of the Small Business Invest- ment Act of 1958 (15 U.S.C. 696(7)) is amended by adding at the end the following: ‘‘(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 develop- ment company for financing under this subpara- graph; ‘‘(II) the term ‘eligible fixed asset’ means tan- gible property relating to which the Administrator may provide financing under this section; and ‘‘(III) the term ‘qualified debt’ means indebted- ness— ‘‘(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 cur- rent 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;