Small Business Lending and Credit Availability Act of 1993

Summary: Small Business Lending and Credit Availability Act of 1993 - Amends the Small Business Act to direct the Small Business Administration (SBA) to participate in loans to small businesses located in States in which one or more insured depository institutions have been closed due to inability to meet depositor demands.  Directs the SBA to guarantee 90 percent of any such loan for amounts between $200,000 and $500,000, and 95 percent of any such loan for amounts less than $200,000. Prohibits the SBA from collecting a guarantee fee from the lending institution or the borrower for such loan participation during the first two years of such participation, with a one percent (of the loan) fee permitted for the third through fifth years.  Authorizes lenders to retain one-half of any fee so collected in order to encourage lenders to provide loans to small businesses located in areas of failed depository institutions.  Limits the loan participation program to five years.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Lending and Credit 
Availability Act of 1993''.

SEC. 2. LOAN GUARANTEES IN QUALIFIED STATES.

    (a) Participation Authority.--Section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) is amended by adding at the end the following 
new paragraph:
            ``(22) Loan guarantees in `qualified states'.--
                    ``(A) In general.--The Administration shall 
                participate in loans to small business concerns located 
                in qualified States on a guaranteed basis in accordance 
                with the provisions of this subsection, except as 
                otherwise specifically provided in this paragraph.
                    ``(B) Guarantee amounts.--The Administration shall 
                participate in loans to small business concerns located 
                in qualified States on a guaranteed basis in an amount 
                equal to--
                            ``(i) not less than 90 percent of the 
                        balance of any loan outstanding at the time of 
                        disbursement, if the loan is not less than 
                        $200,000, nor more than $500,000; and
                            ``(ii) not less than 95 percent of the 
                        balance outstanding at the time of 
                        disbursement, if such loan is less than 
                        $200,000.
                    ``(C) Temporary exemption from guarantee fees.--The 
                Administration may not collect a guarantee fee from the 
                lending institution or the borrower in connection with 
                participation in a loan on a guaranteed basis in 
                accordance with this paragraph during the first 2 years 
                of such participation. During the third, fourth, and 
                fifth years of participation, such fees may be 
                collected in an amount equal to not more than 1 percent 
                of the outstanding balance of the guaranteed amount. 
                The fee shall be payable by the participating lending 
                institution, and may be charged to the borrower.
                    ``(D) In order to encourage lending institutions 
                and other entities making loans authorized under this 
                subsection to provide loans to small business concerns 
                located in qualified States, such lenders may retain 
                one-half of any fee collected pursuant to subparagraph 
                (C) on loans of not more than $200,000. A participating 
                lender may not retain any fee pursuant to this 
                subparagraph if the amount committed and outstanding to 
                the small business concern would be more than $200,000, 
                unless the amount in excess of $200,000 is an amount 
                that is not approved under the provisions of this 
                paragraph.
                    ``(E) Definitions.--For purposes of this 
                paragraph--
                            ``(i) the term `qualified State' means any 
                        of the several States of the United States and 
                        the District of Columbia if, during the 12-
                        month period preceding the date of enactment of 
                        this paragraph--
                                    ``(I) not less than 1 insured 
                                depository institution located in that 
                                State having total assets of not less 
                                than $100,000,000 has been closed due 
                                to the inability to meet the demands of 
                                depositors; or
                                    ``(II) not less than 2 insured 
                                depository institutions located in that 
                                State, having combined total assets of 
                                not less than $150,000,000, have been 
                                closed due to the inability to meet the 
                                demands of depositors; and
                            ``(ii) the term `insured depository 
                        institution'--
                                    ``(I) has the same meaning as in 
                                section 3 of the Federal Deposit 
                                Insurance Act; and
                                    ``(II) includes an insured credit 
                                union, as defined in section 101 of the 
                                Federal Credit Union Act.''.
    (b) Conforming Amendments.--Section 7(a) of the Small Business Act 
(15 U.S.C. 636(a)) is amended--
            (1) in paragraph (6)(A), by inserting ``or loans to assist 
        small business concerns located in qualified States, in 
        accordance with paragraph (22),'' before ``any reasonable 
        doubt''; and
            (2) in the first sentence of paragraph (18), by inserting 
        before the period ``, except as otherwise provided in paragraph 
        (22)''.

SEC. 3. PROGRAM DURATION.

    This Act, and the amendments made by this Act, shall remain in 
effect for a period of 5 years, beginning on the date of enactment of 
this Act.