Stimulus for Community Development Lending.

Sec. 504. Stimulus for Community Development Lending. (a) Low Interest Refinancing Under the Local Development Business Loan Program.—Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended by adding at the end the following:“(7) Permissible debt refinancing.—“(A) In general.—Any financing approved under this title may include a limited amount of debt refinancing.“(B) Expansions.—If the project involves expansion of a small business concern, any amount of existing indebtedness that does not exceed 50 percent of the project cost of the expansion may be refinanced and added to the expansion cost, if—“(i) the proceeds of the indebtedness were used to acquire land, including a building situated thereon, to construct a building thereon, or to purchase equipment;“(ii) the existing indebtedness is collateralized by fixed assets;“(iii) the existing indebtedness was incurred for the benefit of the small business concern;“(iv) the financing under this title will be used only for refinancing existing indebtedness or costs relating to the project financed under this title;“(v) the financing under this title will provide a substantial benefit to the borrower when prepayment penalties, financing fees, and other financing costs are accounted for;123 STAT. 156“(vi) the borrower has been current on all payments due on the existing debt for not less than 1 year preceding the date of refinancing; and“(vii) the financing under section 504 will provide better terms or rate of interest than the existing indebtedness at the time of refinancing.”.(b) Job Creation Goals.—Section 501(e)(1) and section 501(e)(2) of the Small Business Investment Act (15 U.S.C. 695) are each amended by striking “$50,000” and inserting “$65,000”.