H.R. 5551: To require the Secretary of the Treasury to make a certification when making purchases under the Small Business Lending Fund Program

H.R. 5551

To require the Secretary of the Treasury to make a certification when making purchases under the Small Business Lending Fund Program

Date
June 23, 2010 (111th Congress, 2nd Session)

Staff Contact

Floor Situation

H.R. 5551 is expected to be considered on the floor on June 23, 2010, under a suspension of rules, which requires a two-thirds majority vote. Rep. Suzanne Komas introduced H.R. 5551 on June 17, 2010, and it was referred to the House Committee on Financial Services.

Bill Summary

H.R. 5551 would require the Secretary of the Treasury to make a certification when making purchases under the Small Business Lending Fund Program. Each time the Secretary of the Treasury makes a purchase (including a commitment to purchase), or a modification of a purchase under the Small Business Lending Fund Program established under the Small Business Jobs and Credit Act of 2010, the Secretary shall certify, under oath, to the Inspector General of the Department of the Treasury, with a copy to the Comptroller General of the United States, that the Treasury Department is acting solely on the basis of economic fundamentals and not because of any political considerations.

Background

The Small Business Jobs and Credit Act of 2010 would create a $30 billion lending fund and authorize the Treasury Secretary to make capital investments in banks with less than $10 billion in assets. The bill would also authorize the appropriation of $2 billion to assist states with funding their small business lending and guarantee programs, and provide $1 billion to establish a new Small Business Administration (SBA) grant program for venture capital funds to invest in early-stage small businesses in targeted industries. Targeted industries would include manufacturing, energy, agriculture, IT, digital media, and defense. The bill is being promoted as necessary to increase the availability of credit for small businesses. However, the bill would deepen the nation's debt problems and duplicate the goal of the original $700 billion TARP program. With nearly 10 percent unemployment, the legislation, and its $33 billion price tag, would further worsen the nation's debt and deficit crisis.