Leasing rules for new facilities and existing buildings

(a) In general Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended by striking paragraphs (4) and (5) and inserting the following: (4) New facilities (A) In general With respect to a project to construct a new facility, an assisted small business concern may permanently lease not more than 20 percent of the project to commercial or residential tenants if such concern— (i) permanently occupies and uses not less than 60 percent of the project; (ii) plans to occupy and use an additional portion of the project that is not permanently leased not later than 3 years after receipt of assistance under this section; and (iii) plans to permanently occupy and use 80 percent of the project not later than 10 years after receipt of such assistance. (B) Small manufacturers With respect to an assisted small business concern that is a small manufacturer (as defined in section 501(e)(6)), subparagraph (A)(i) shall apply with 50 percent substituted for 60 percent. (5) Existing buildings With respect to a project to acquire, renovate, or reconstruct an existing building, the following shall apply: (A) Occupancy requirements The assisted small business concern may permanently lease not more than 50 percent of the project if the concern permanently occupies and uses not less than 50 percent of the project. (B) Exception The assisted small business concern may permanently lease more than 50 percent of the project, but not more than 66 percent of the project, to commercial or residential tenants if— (i) such concern— (I) has occupied and used the existing building for a consecutive 12-month period before submitting an application for assistance under this section; (II) agrees to permanently use less than 50 percent of the existing building and permanently lease more than 50 percent for a consecutive 12-month period after receiving such assistance; and (III) affirms that the existing building is appropriate for current and reasonably anticipated needs; and (ii) the development company assisting such project— (I) provides written notice to the Administrator on the date on which the development company closes the loan for such project; and (II) once each year during the first 5 years of the loan, and once every 2 years for the remainder of the loan— (aa) conducts an examination of the assisted small business concern to ensure the concern is not a real estate development business; and (bb) files with the Administrator an anti-investor certification signed by the development company and the assisted small business concern. (C) Lease term Any residential lease made under this paragraph shall be for a term of not more than 1 year, and any commercial lease made under this paragraph shall be for a term of not more than 5 years.. (b) Report Not later than 5 years after the date of enactment of this Act, the Administrator of the Small Business Administration shall submit to Congress a report analyzing the impact of the amendments made by this section on access to capital for small business concerns (as defined in section 3 of the Small Business Act (15 U.S.C. 632)).

(a) In general Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended by striking paragraphs (4) and (5) and inserting the following: (4) New facilities (A) In general With respect to a project to construct a new facility, an assisted small business concern may permanently lease not more than 20 percent of the project to commercial or residential tenants if such concern— (i) permanently occupies and uses not less than 60 percent of the project; (ii) plans to occupy and use an additional portion of the project that is not permanently leased not later than 3 years after receipt of assistance under this section; and (iii) plans to permanently occupy and use 80 percent of the project not later than 10 years after receipt of such assistance. (B) Small manufacturers With respect to an assisted small business concern that is a small manufacturer (as defined in section 501(e)(6)), subparagraph (A)(i) shall apply with 50 percent substituted for 60 percent. (5) Existing buildings With respect to a project to acquire, renovate, or reconstruct an existing building, the following shall apply: (A) Occupancy requirements The assisted small business concern may permanently lease not more than 50 percent of the project if the concern permanently occupies and uses not less than 50 percent of the project. (B) Exception The assisted small business concern may permanently lease more than 50 percent of the project, but not more than 66 percent of the project, to commercial or residential tenants if— (i) such concern— (I) has occupied and used the existing building for a consecutive 12-month period before submitting an application for assistance under this section; (II) agrees to permanently use less than 50 percent of the existing building and permanently lease more than 50 percent for a consecutive 12-month period after receiving such assistance; and (III) affirms that the existing building is appropriate for current and reasonably anticipated needs; and (ii) the development company assisting such project— (I) provides written notice to the Administrator on the date on which the development company closes the loan for such project; and (II) once each year during the first 5 years of the loan, and once every 2 years for the remainder of the loan— (aa) conducts an examination of the assisted small business concern to ensure the concern is not a real estate development business; and (bb) files with the Administrator an anti-investor certification signed by the development company and the assisted small business concern. (C) Lease term Any residential lease made under this paragraph shall be for a term of not more than 1 year, and any commercial lease made under this paragraph shall be for a term of not more than 5 years.. (b) Report Not later than 5 years after the date of enactment of this Act, the Administrator of the Small Business Administration shall submit to Congress a report analyzing the impact of the amendments made by this section on access to capital for small business concerns (as defined in section 3 of the Small Business Act (15 U.S.C. 632)).