ALTERNATIVE SIZE STANDARDS.

SEC. 1116. ALTERNATIVE SIZE STANDARDS. Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is amended by adding at the end the following: “(5) Alternative Size Standard. “(A) In general. The Administrator shall establish an alternative size standard for applicants for business loans under section 7(a) and applicants for development company loans under title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), that uses maximum tangible net worth and average net income as an alternative to the use of industry standards. “(B) Interim rule. Until the date on which the alternative size standard established under subparagraph (A) is in effect, an applicant for a business loan under section 7(a) or an applicant for a development company loan under title V of the Small Business Investment Act of 1958 may be eligible for such a loan if— “(i) the maximum tangible net worth of the applicant is not more than $15,000,000; and “(ii) the average net income after Federal income taxes (excluding any carry-over losses) of the applicant for the 2 full fiscal years before the date of the application is not more than $5,000,000.” .