In the Senate of the United States,

December 8 (legislative day, December 7), 2001.

Resolved, That the Senate agree to the amendment of

the House of Representatives to the bill (S. 1196) entitled

‘‘An Act to amend the Small Business Investment Act of

1958, and for other purposes.’’ with the following

SENATE AMENDMENT TO HOUSE AMENDMENT:

1 Page 13 of the House engrossed amendment, strike

2 out all after line 8 over to and including line 2 on page

3 16 and insert:

4 SEC. 6. REDUCTION OF FEES.

5 (a) TWO-YEAR REDUCTION OF SECTION 7(a) FEES.—

6 (1) GUARANTEE FEES.—Section 7(a)(18) of the

7 Small Business Act (15 U.S.C. 636(a)(18)) is amend8 ed by adding at the end the following:

9 ‘‘(C) TWO-YEAR REDUCTION IN FEES.—

10 With respect to loans approved during the 2-year

11 period beginning on October 1, 2002, the guar-
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S 1196 EAS

1 antee fee under subparagraph (A) shall be as fol2 lows:

3 ‘‘(i) A guarantee fee equal to 1 percent

4 of the deferred participation share of a total

5 loan amount that is not more than

6 $150,000.

7 ‘‘(ii) A guarantee fee equal to 2.5 per8 cent of the deferred participation share of a

9 total loan amount that is more than

10 $150,000, but not more than $700,000.

11 ‘‘(iii) A guarantee fee equal to 3.5 per12 cent of the deferred participation share of a

13 total loan amount that is more than

14 $700,000.’’.

15 (2) ANNUAL FEES.—Section 7(a)(23)(A) of the

16 Small Business Act (15 U.S.C. 636(a)(23)(A)) is

17 amended by adding at the end the following: ‘‘With

18 respect to loans approved during the 2-year period be19 ginning on October 1, 2002, the annual fee assessed

20 and collected under the preceding sentence shall be in

21 an amount equal to 0.25 percent of the outstanding

22 balance of the deferred participation share of the

23 loan.’’.
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S 1196 EAS

1 (b) REDUCTION OF SECTION 504 FEES.—Section 503

2 of the Small Business Investment Act of 1958 (15 U.S.C.

3 697) is amended—

4 (1) in subsection (b)(7)(A)—

5 (A) by redesignating clauses (i) and (ii) as

6 subclauses (I) and (II), respectively, and moving

7 the margins 2 ems to the right;

8 (B) by striking ‘‘not exceed the lesser’’ and

9 inserting ‘‘not exceed—

10 ‘‘(i) the lesser’’; and

11 (C) by adding at the end the following:

12 ‘‘(ii) 50 percent of the amount estab13 lished under clause (i) in the case of a loan

14 made during the 2-year period beginning on

15 October 1, 2002, for the life of the loan;

16 and’’; and

17 (2) by adding at the end the following:

18 ‘‘(i) TWO-YEAR WAIVER OF FEES.—The Administra19 tion may not assess or collect any up front guarantee fee

20 with respect to loans made under this title during the 2-

21 year period beginning on October 1, 2002.’’.

22 (c) BUDGETARY TREATMENT OF LOANS AND

23 FINANCINGS.—Assistance made available under any loan

24 made or approved by the Small Business Administration

25 under section 7(a) of the Small Business Act (15 U.S.C.
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S 1196 EAS

1 636(a)) or financings made under title V of the Small Busi2 ness Investment Act of 1958 (15 U.S.C. 695 et seq.), during

3 the 2-year period beginning on October 1, 2002, shall be

4 treated as separate programs of the Small Business Admin5 istration for purposes of the Federal Credit Reform Act of

6 1990 only.

7 (d) USE OF FUNDS.—The amendments made by this

8 section to section 503 of the Small Business Investment Act

9 of 1958, shall be effective only to the extent that funds are

10 made available under appropriations Acts, which funds

11 shall be utilized by the Administrator to offset the cost (as

12 such term is defined in section 502 of the Federal Credit

13 Reform Act of 1990) of such amendments.

14 (e) EFFECTIVE DATE.—The amendments made by this

15 section shall become effective on October 1, 2002.

Attest:

Secretary.
107TH CONGRESS

1ST SESSION S. 1196

SENATE AMENDMENT TO

HOUSE AMENDMENT