| Home > 106th Congressional Bills > S. 2915 (rs) To make improvements in the operation and administration of the Federal courts, and for other purposes. [Reported in Senate] ...
S. 2915 (rs) To make improvements in the operation and administration of the Federal courts, and for other purposes. [Reported in Senate] ...
108th CONGRESS 2d Session S. 2915 To reauthorize programs under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) through September 30, 2005. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES October 7, 2004 Ms. Snowe (for herself and Mr. Bond) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship _______________________________________________________________________ A BILL To reauthorize programs under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) through September 30, 2005. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. COMBINATION FINANCING. Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following: ``(31) Combination financing.-- ``(A) Definitions.--As used in this paragraph-- ``(i) the term `combination financing' means financing comprised of a loan guaranteed under this subsection and a commercial loan; and ``(ii) the term `commercial loan' means a loan which is part of a combination financing and no portion of which is guaranteed by the Federal Government. ``(B) Applicability.--This paragraph applies to a loan guarantee obtained by a small business concern under this subsection, if the small business concern also obtains a commercial loan. ``(C) Commercial loan amount.--In the case of any combination financing, the amount of the commercial loan which is part of such financing shall not exceed the gross amount of the loan guaranteed under this subsection which is part of such financing. ``(D) Commercial loan provisions.--The commercial loan obtained by the small business concern-- ``(i) may be made by the participating lender that is providing financing under this subsection or by a different lender; ``(ii) may be secured by a senior lien; and ``(iii) may be made by a lender in the Preferred Lenders Program, if applicable. ``(E) Commercial loan fee.--A one-time fee in an amount equal to 0.7 percent of the amount of the commercial loan shall be paid by the lender to the Administration if the commercial loan has a senior credit position to that of the loan guaranteed under this subsection. Any fee under the preceding sentence shall be paid by the participating lender and shall not be charged to the borrower. ``(F) Deferred participation loan security.--A loan guaranteed under this paragraph may be secured by a subordinated lien. ``(G) Completion of application processing.--The Administrator shall complete processing of an application for combination financing under this paragraph pursuant to the program authorized by this subsection as it was operating on October 1, 2003. ``(H) Business loan eligibility.--Any standards prescribed by the Administrator relating to the eligibility of small business concerns to obtain combination financing under this subsection, which are in effect on September 1, 2004, shall apply with respect to combination financings made under this paragraph. Any modifications to such standards by the Administrator after such date shall not unreasonably restrict the availability of combination financing under this paragraph relative to the availability of such financing before such modifications.''. SEC. 2. LOAN GUARANTEE FEES. (a) In General.--Section 7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)) is amended to read as follows: ``(A) Percentage.--With respect to each loan guaranteed under this subsection, the Administrator shall, in accordance with such terms and procedures as the Administrator shall establish by regulation, assess and collect an annual fee in an amount equal to 0.36 percent of the outstanding balance of the deferred participation share of the loan. (b) Guarantee Fees.--Section 7(a)(18) of the Small Business Act (15 U.S.C. 636(a)(18)) is amended to read as follows: ``(18) Guarantee fees.--With respect to each loan guaranteed under this subsection (other than a loan that is repayable in 1 year or less), the Administration shall collect a guarantee fee, which shall be payable by the participating lender, and may be charged to the borrower, as follows: ``(A) A guarantee fee equal to 1 percent of the deferred participation share of a total loan amount that is not more than $150,000. ``(B) A guarantee fee equal to 2.5 percent of the deferred participation share of a total loan amount that is more than $150,000, but not more than $700,000. ``(C) A guarantee fee equal to 3.5 percent of the deferred participation share of a total loan amount that is more than $700,000. ``(D) In addition to the fee under subparagraph (C), a guarantee fee equal to 0.25 percent of the amount, if any, by which the deferred participation share of the loan exceeds $1,000,000.''. SEC. 3. EXPRESS LOAN PROVISIONS. Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as amended by section 1, is further amended by adding at the end the following: ``(32) Express loan provisions.-- ``(A) Definitions.--As used in this paragraph: ``(i) The term `express lender' means any lender authorized by the Administrator to participate in the Express Loan Program. ``(ii) The term `express loan' means any loan made pursuant to this paragraph in which a lender utilizes to the maximum extent practicable its own loan analyses, procedures, and documentation. ``(iii) The term `Express Loan Program' means the program for express loans established by the Administrator under paragraph (25)(B), as in existence on April 5, 2004, with a guaranty rate of not more than 50 percent. ``(B) Restriction to express lender.--The authority to make an express loan shall be limited to those lenders deemed qualified to make such loans by the Administrator. Designation as an express lender for purposes of making an express loan shall not prohibit such lender from taking any other action authorized by the Administrator for that lender pursuant to this subsection. ``(C) Grandfathering of existing lenders.--Any express lender shall retain such designation unless the Administrator determines that the express lender has violated the law or regulations promulgated by the Administrator or modifies the requirements to be an express lender and the lender no longer satisfies those requirements. ``(D) Maximum loan amount.--The maximum loan amount under the Express Loan Program is $2,000,000. ``(E) Option to participate.--Except as otherwise provided in this paragraph, the Administrator shall take no regulatory, policy, or administrative action, without regard to whether such action requires notification pursuant to paragraph (24), that has the effect of-- ``(i) requiring a lender to make an express loan pursuant to subparagraph (D); ``(ii) limiting or modifying any term or condition of deferred participation loans made under this subsection (other than express loans) unless the Administrator imposes the same limit or modification on express loans; ``(iii) transferring or re-allocating staff, staff responsibilities, resources, or funding, if the result of such transfer or re- allocation would be to increase the average loan processing, approval, or disbursement time above the averages for those functions as of October 1, 2003, for loan guarantees approved under this subsection by employees of the Administration or through the Preferred Lenders Program; or ``(iv) otherwise providing any incentive or disincentive which encourages lenders or borrowers to make or obtain loans under the Express Loan Program instead of under the general loan authority of this subsection. ``(F) Collection and reporting of data.--For all loans in excess of $250,000 made pursuant to the authority set forth in subparagraph (D), the Administrator shall, to the extent practicable, collect data on the purpose for each such loan. The Administrator shall report monthly to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives on the number of such loans and their purposes.''. SEC. 4. STANDARDS FOR LOANS MADE WITH DEFERRED PARTICIPATION. Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as amended by sections 1 and 3, is further amended by adding at the end the following: ``(33) Standards for loans made with deferred participation.--Deferred participation loans made on or after October 1, 2004, under this subsection shall have the same terms and conditions (including maximum gross loan amounts and collateral requirements) as were applicable to loans made under this subsection on October 1, 2003, except as otherwise provided in paragraph (18)(D), paragraph (31), or paragraph (32) and subject to the $1,500,000 limitation on the total amount outstanding and committed in paragraph (3)(A), as in effect on October 1, 2004. This paragraph shall not preclude the Administrator from taking such action as necessary to maintain the loan program carried out under this subsection, subject to appropriations.''. SEC. 5. INCREASE IN GUARANTEE AMOUNT AND INSTITUTION OF ASSOCIATED FEE. Section 7(a)(3) of the Small Business Act (15 U.S.C. 636(a)(3)) is amended-- (1) in subparagraph (A), by striking ``$1,000,000'' and inserting ``$1,500,000''; and (2) in subparagraph (B), by striking ``$1,250,000, of which not more than $750,000'' and inserting ``$1,750,000, of which not more than $1,250,000''. SEC. 6. EFFECTIVE DATES. The amendments made by this Act shall be effective beginning on the date of enactment of this Act and ending on September 30, 2005. <all>
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