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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1274 Engrossed Amendment House (EAH)]

103d CONGRESS

  1st Session

                                S. 1274

_______________________________________________________________________

                               AMENDMENT
                In the House of Representatives, U. S.,

                                                        August 4, 1993.
      Resolved, That the bill from the Senate (S. 1274) entitled ``An 
Act to reduce the subsidy cost for the Guaranteed Business Loan Program 
of the Small Business Administration, and for other purposes'', do pass 
with the following

                               AMENDMENT:

        Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Guaranteed Credit Enhancement Act of 1993''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. General authorizations.
Sec. 3. Authority to impose secondary market fees.
Sec. 4. Penalties.
Sec. 5. Authority to reduce loan guarantee percentages.
Sec. 6. Study and report.
Sec. 7. Repealer.
Sec. 8. Microloan program amendments.
Sec. 9. Small Business Development Center Program.
Sec. 10. White House Conference on Small Business.
Sec. 11. National Women's Business Council.

SEC. 2. GENERAL AUTHORIZATIONS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended--
            (1) in subsection (g)(2) by striking ``$7,030,000,000'' and 
        by inserting in lieu thereof ``$7,155,000,000'';
            (2) in subsection (g)(2) by striking ``$775,000,000'' and 
        by inserting in lieu thereof ``$900,000,000'';
            (3) in subsection (i)(2) by striking ``$8,083,000,000'' and 
        by inserting in lieu thereof ``$8,458,000,000''; and
            (4) in subsection (i)(2) by striking ``$825,000,000'' and 
        by inserting in lieu thereof ``$1,200,000,000''.

SEC. 3. AUTHORITY TO IMPOSE SECONDARY MARKET FEES.

    (a) Additional Guarantee Fees.--Section 5(g) of the Small Business 
Act (15 U.S.C. 634) is amended by striking paragraph (4) and by 
inserting in lieu thereof the following:
            ``(4)(A) The Administration may collect the following fees 
        for loan guarantees sold into the secondary market pursuant to 
        the provisions of subsection (f): an amount equal to (A) not 
        more than \4/10\ of one percent per year of the outstanding 
        principal amount of the portion of such loan guaranteed by the 
        Administration, and (B) not more than 50 percent of the portion 
        of the sale price which is in excess of 110 percent of the 
        outstanding principal amount of the portion of such loan 
        guaranteed by the Administration. Any such fees imposed by the 
        Administration shall be collected by the Administration or by 
        the agent which carries out on behalf of the Administration the 
        central registration functions required by subsection (h) of 
        this section and shall be paid to the Administration and used 
        solely to reduce the subsidy on loans guaranteed under section 
        7(a) of this Act: Provided, That such fees shall not be charged 
        to the borrower whose loan is guaranteed: and, Provided 
        further, That nothing herein shall preclude any agent of the 
        Administration from collecting a fee approved by the 
        Administration for the functions described in subsection 
        (h)(2).
            ``(B) The Administration is authorized to impose and 
        collect, either directly or through a fiscal and transfer 
        agent, a reasonable penalty on late payments of the fee 
        authorized under subparagraph (A) in an amount not to exceed 5 
        percent of such fee per month plus interest.''.
    (b) Any new fees imposed by the Administration pursuant to the 
authority conferred by subsection (a) shall be applicable only to loans 
initially sold in the secondary market pursuant to the provisions of 
section 5(f) of the Small Business Act after August 31, 1993.

SEC. 4. PENALTIES.

    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) The Administration is authorized to permit 
        participating lenders to impose and collect a reasonable 
        penalty fee on late payments of loans guaranteed under this 
        subsection in an amount not to exceed 5 percent of the monthly 
        loan payment per month plus interest.''.

SEC. 5. AUTHORITY TO REDUCE LOAN GUARANTEE PERCENTAGES.

    (a) Guarantee Percentages.--Section 7(a)(2) of the Small Business 
Act (15 U.S.C. 636) is amended--
            (1) by striking from the end of clause (B)(i) the word 
        ``and'' and by redesignating clause (B)(ii) as (B)(iv) and by 
        inserting the following after clause (B)(i):
                    ``(ii) not less than 75 percent of the financing 
                outstanding at the time of disbursement, if such 
                financing is more than $155,000 and the period of 
                maturity of such financing is more than 10 years, 
                except that the participation by the Administration may 
                be reduced below 75 percent upon request of the 
                participating lender;
                    ``(iii) not less than 85 percent of the financing 
                outstanding at the time of disbursement, if such 
                financing is more than $155,000 and the period of 
                maturity of such financing is 10 years or less, except 
                that the participation by the Administration may be 
                reduced below 85 percent upon request of the 
                participating lender; and'';
            (2) by striking the words ``85 percent under subparagraph 
        (B)'' and by inserting in lieu thereof the following: ``the 
        above specified percentums'';
            (3) by striking from paragraph (B) the words ``not less 
        than 80 percent, except upon'' and by inserting in lieu thereof 
        the following: ``not less than 70 percent, unless a lesser 
        percent is required by clause (B)(ii) or upon the''; and
            (4) by inserting after the third sentence the following: 
        ``The maximum interest rate for a loan guaranteed under the 
        Preferred Lenders Program shall not exceed the maximum interest 
        rate, as determined by the Administration, which is made 
        applicable to other loan guarantees under section 7(a).''.
    (b) Application.--Notwithstanding any other provision of law, the 
amendments made by subsection (a) shall be effective September 1, 1993, 
but shall not be applicable to loan guarantee applications received by 
the Administration prior to August 21, 1993. In order to determine the 
percent of the loan to be guaranteed pursuant to the amendments made by 
subsection (a), the Administration shall aggregate the outstanding 
guaranteed principal of multiple loan guarantees issued on behalf of 
the same borrower.

SEC. 6. STUDY AND REPORT.

    The Administration shall study, monitor and evaluate the impact of 
the amendments made by sections 3 and 5 of this Act on the ability of 
small business concerns and small business concerns owned and 
controlled by minorities and women, to obtain financing and the impact 
of such sections on the effectiveness, viability and growth of the 
secondary market authorized by section 5(f) of the Small Business Act. 
Not later than 16 months after the date of enactment, and annually 
thereafter, the Administration shall submit to the Committees on Small 
Business of the Senate and the House of Representatives a report 
containing the Administration's findings and recommendations on such 
impact, specifically including changes in the interest rates on 
financings provided to small business concerns and small business 
concerns owned and controlled by minorities and women, through the use 
of the secondary market. The Administration shall segregate such 
findings and recommendations in the study according to the ethnic and 
gender components in these categories. Solely for the purposes of the 
study authorized herein, the term ``small business concerns owned and 
controlled by minorities'', includes businesses owned and controlled by 
individuals belonging to one of the designated groups listed in section 
8(d)(3)(C) of the Small Business Act.

SEC. 7. REPEALER.

    Sections 3 and 5 of this Act are hereby repealed on September 30, 
1996.

SEC. 8. MICROLOAN PROGRAM AMENDMENTS.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is 
amended--
            (1) in paragraph (1)(B)(iii), by striking ``$15,000'' and 
        inserting ``$25,000'';
            (2) in paragraph (5)(A), by striking ``6 grants'' and 
        inserting ``25 grants for terms of up to 5 years''; and
            (3) in paragraph (9)(B) by striking ``3 percent'' and 
        inserting ``7 percent''.

SEC. 9. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.

    (a) Clearinghouse.--Section 21(c)(7) of the Small Business Act (15 
U.S.C. 648) is amended by striking ``system which will'' and by 
inserting in lieu thereof the following: ``system. Subject to amounts 
approved in advance in appropriations acts, the Administration may make 
grants or enter cooperative agreements with one or more centers to 
carry out the provisions of this paragraph. Said grants or cooperative 
agreements shall be awarded for periods of no more than five years 
duration. The matching funds provisions of subsection (a) shall not be 
applicable to grants or cooperative agreements under this paragraph. 
The system shall''.
    (b) Authorization.--Section 25(i) of the Small Business Act (15 
U.S.C. 652) is amended by striking ``$8,000,000 for fiscal year 1993'' 
and by inserting in lieu thereof ``$2,000,000 for each of fiscal years 
1993 and 1994''.
    (c) Regulations.--Section 223 of the Small Business Credit and 
Business Opportunity Enhancement Act of 1992 (15 U.S.C. 631 note) is 
amended by striking the last sentence of subsection (b).

SEC. 10. WHITE HOUSE CONFERENCE ON SMALL BUSINESS.

    The White House Conference on Small Business Authorization Act (15 
U.S.C. 631 note) is amended--
            (1) in section 2 by striking from subsection (a) ``not 
        earlier than January 1, 1994, and not later than April 1, 
        1994'' and by inserting in lieu thereof ``not earlier than May 
        1, 1995, and not later than September 30, 1995'';
            (2) in section 2 by striking from subsection (a) ``December 
        1, 1992'' and by inserting in lieu thereof ``March 1, 1994''; 
        and
            (3) in sections 5 by striking the second sentence of 
        subsection (a) and by inserting in lieu thereof the following: 
        ``Subsequent to the date of enactment of this Act, but not 
        later than 30 days after the date of enactment of this Act, the 
        President shall select and appoint eleven individuals to the 
        Commission.''.

SEC. 11. NATIONAL WOMEN'S BUSINESS COUNCIL.

    Section 407 of the Women's Business Ownership Act of 1988 (15 
U.S.C. 631 note) is amended to read as follows:

``SEC. 407. AUTHORIZATION.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this title--
            ``(1) $500,000 for fiscal year 1993; and
            ``(2) $500,000 for fiscal year 1994.
    ``(b) Limitation on Authority.--New spending authority or authority 
to enter into contracts as authorized in this Act shall be effective 
only to such extent and in such amounts as are provided in advance in 
appropriation Acts.
    ``(c) Sunset.--This section shall cease to be effective on November 
30, 1995.''.

            Attest:

                                                                 Clerk.
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