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:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Small Business Guaranteed Credit Enhancement Act of

4 1993’’.

5 (b) TABLE OF CONTENTS.—The table of contents for

6 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.

7 SEC. 2. GENERAL AUTHORIZATIONS.

8 Section 20 of the Small Business Act (15 U.S.C. 631

9 note) is amended—
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1 (1) in subsection (g)(2) by striking

2 ‘‘$7,030,000,000’’ and by inserting in lieu thereof

3 ‘‘$7,155,000,000’’;

4 (2) in subsection (g)(2) by striking

5 ‘‘$775,000,000’’ and by inserting in lieu thereof

6 ‘‘$900,000,000’’;

7 (3) in subsection (i)(2) by striking

8 ‘‘$8,083,000,000’’ and by inserting in lieu thereof

9 ‘‘$8,458,000,000’’; and

10 (4) in subsection (i)(2) by striking

11 ‘‘$825,000,000’’ and by inserting in lieu thereof

12 ‘‘$1,200,000,000’’.

13 SEC. 3. AUTHORITY TO IMPOSE SECONDARY MARKET FEES.

14 (a) ADDITIONAL GUARANTEE FEES.—Section 5(g) of

15 the Small Business Act (15 U.S.C. 634) is amended by

16 striking paragraph (4) and by inserting in lieu thereof the

17 following:

18 ‘‘(4)(A) The Administration may collect the fol19 lowing fees for loan guarantees sold into the second20 ary market pursuant to the provisions of subsection

(f): an amount equal to (A) not more than 4 21 ⁄10 of one

22 percent per year of the outstanding principal amount

23 of the portion of such loan guaranteed by the Admin24 istration, and (B) not more than 50 percent of the

25 portion of the sale price which is in excess of 110 per-
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1 cent of the outstanding principal amount of the por2 tion of such loan guaranteed by the Administration.

3 Any such fees imposed by the Administration shall be

4 collected by the Administration or by the agent which

5 carries out on behalf of the Administration the central

6 registration functions required by subsection (h) of

7 this section and shall be paid to the Administration

8 and used solely to reduce the subsidy on loans guar9 anteed under section 7(a) of this Act: Provided, That

10 such fees shall not be charged to the borrower whose

11 loan is guaranteed: and, Provided further, That noth12 ing herein shall preclude any agent of the Adminis13 tration from collecting a fee approved by the Admin14 istration for the functions described in subsection

15 (h)(2).

16 ‘‘(B) The Administration is authorized to impose

17 and collect, either directly or through a fiscal and

18 transfer agent, a reasonable penalty on late payments

19 of the fee authorized under subparagraph (A) in an

20 amount not to exceed 5 percent of such fee per month

21 plus interest.’’.

22 (b) Any new fees imposed by the Administration pur23 suant to the authority conferred by subsection (a) shall be

24 applicable only to loans initially sold in the secondary mar-
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1 ket pursuant to the provisions of section 5(f) of the Small

2 Business Act after August 31, 1993.

3 SEC. 4. PENALTIES.

4 Section 7(a) of the Small Business Act (15 U.S.C.

5 636(a)) is amended by adding at the end the following new

6 paragraph:

7 ‘‘(22) The Administration is authorized to per8 mit participating lenders to impose and collect a rea9 sonable penalty fee on late payments of loans guaran10 teed under this subsection in an amount not to exceed

11 5 percent of the monthly loan payment per month

12 plus interest.’’.

13 SEC. 5. AUTHORITY TO REDUCE LOAN GUARANTEE PER14 CENTAGES.

15 (a) GUARANTEE PERCENTAGES.—Section 7(a)(2) of

16 the Small Business Act (15 U.S.C. 636) is amended—

17 (1) by striking from the end of clause (B)(i) the

18 word ‘‘and’’ and by redesignating clause (B)(ii) as

19 (B)(iv) and by inserting the following after clause

20 (B)(i):

21 ‘‘(ii) not less than 75 percent of the financ22 ing outstanding at the time of disbursement, if

23 such financing is more than $155,000 and the

24 period of maturity of such financing is more

25 than 10 years, except that the participation by
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1 the Administration may be reduced below 75

2 percent upon request of the participating lender;

3 ‘‘(iii) not less than 85 percent of the financ4 ing outstanding at the time of disbursement, if

5 such financing is more than $155,000 and the

6 period of maturity of such financing is 10 years

7 or less, except that the participation by the Ad8 ministration may be reduced below 85 percent

9 upon request of the participating lender; and’’;

10 (2) by striking the words ‘‘85 percent under sub11 paragraph (B)’’ and by inserting in lieu thereof the

12 following: ‘‘the above specified percentums’’;

13 (3) by striking from paragraph (B) the words

14 ‘‘not less than 80 percent, except upon’’ and by insert15 ing in lieu thereof the following: ‘‘not less than 70

16 percent, unless a lesser percent is required by clause

17 (B)(ii) or upon the’’; and

18 (4) by inserting after the third sentence the fol19 lowing: ‘‘The maximum interest rate for a loan guar20 anteed under the Preferred Lenders Program shall not

21 exceed the maximum interest rate, as determined by

22 the Administration, which is made applicable to other

23 loan guarantees under section 7(a).’’.

24 (b) APPLICATION.—Notwithstanding any other provi25 sion of law, the amendments made by subsection (a) shall
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1 be effective September 1, 1993, but shall not be applicable

2 to loan guarantee applications received by the Administra3 tion prior to August 21, 1993. In order to determine the

4 percent of the loan to be guaranteed pursuant to the amend5 ments made by subsection (a), the Administration shall ag6 gregate the outstanding guaranteed principal of multiple

7 loan guarantees issued on behalf of the same borrower.

8 SEC. 6. STUDY AND REPORT.

9 The Administration shall study, monitor and evaluate

10 the impact of the amendments made by sections 3 and 5

11 of this Act on the ability of small business concerns and

12 small business concerns owned and controlled by minorities

13 and women, to obtain financing and the impact of such

14 sections on the effectiveness, viability and growth of the sec15 ondary market authorized by section 5(f) of the Small Busi16 ness Act. Not later than 16 months after the date of enact17 ment, and annually thereafter, the Administration shall

18 submit to the Committees on Small Business of the Senate

19 and the House of Representatives a report containing the

20 Administration’s findings and recommendations on such

21 impact, specifically including changes in the interest rates

22 on financings provided to small business concerns and

23 small business concerns owned and controlled by minorities

24 and women, through the use of the secondary market. The

25 Administration shall segregate such findings and rec-
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1 ommendations in the study according to the ethnic and gen2 der components in these categories. Solely for the purposes

3 of the study authorized herein, the term ‘‘small business con4 cerns owned and controlled by minorities’’, includes busi5 nesses owned and controlled by individuals belonging to one

6 of the designated groups listed in section 8(d)(3)(C) of the

7 Small Business Act.

8 SEC. 7. REPEALER.

9 Sections 3 and 5 of this Act are hereby repealed on

10 September 30, 1996.

11 SEC. 8. MICROLOAN PROGRAM AMENDMENTS.

12 Section 7(m) of the Small Business Act (15 U.S.C.

13 636(m)) is amended—

14 (1) in paragraph (1)(B)(iii), by striking

15 ‘‘$15,000’’ and inserting ‘‘$25,000’’;

16 (2) in paragraph (5)(A), by striking ‘‘6 grants’’

17 and inserting ‘‘25 grants for terms of up to 5 years’’;

18 and

19 (3) in paragraph (9)(B) by striking ‘‘3 percent’’

20 and inserting ‘‘7 percent’’.

21 SEC. 9. SMALL BUSINESS DEVELOPMENT CENTER PRO22 GRAM.

23 (a) CLEARINGHOUSE.—Section 21(c)(7) of the Small

24 Business Act (15 U.S.C. 648) is amended by striking ‘‘sys25 tem which will’’ and by inserting in lieu thereof the follow-
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1 ing: ‘‘system. Subject to amounts approved in advance in

2 appropriations acts, the Administration may make grants

3 or enter cooperative agreements with one or more centers

4 to carry out the provisions of this paragraph. Said grants

5 or cooperative agreements shall be awarded for periods of

6 no more than five years duration. The matching funds pro7 visions of subsection (a) shall not be applicable to grants

8 or cooperative agreements under this paragraph. The sys9 tem shall’’.

10 (b) AUTHORIZATION.—Section 25(i) of the Small

11 Business Act (15 U.S.C. 652) is amended by striking

12 ‘‘$8,000,000 for fiscal year 1993’’ and by inserting in lieu

13 thereof ‘‘$2,000,000 for each of fiscal years 1993 and 1994’’.

14 (c) REGULATIONS.—Section 223 of the Small Business

15 Credit and Business Opportunity Enhancement Act of 1992

16 (15 U.S.C. 631 note) is amended by striking the last sen17 tence of subsection (b).

18 SEC. 10. WHITE HOUSE CONFERENCE ON SMALL BUSINESS.

19 The White House Conference on Small Business Au20 thorization Act (15 U.S.C. 631 note) is amended—

21 (1) in section 2 by striking from subsection (a)

22 ‘‘not earlier than January 1, 1994, and not later

23 than April 1, 1994’’ and by inserting in lieu thereof

24 ‘‘not earlier than May 1, 1995, and not later than

25 September 30, 1995’’;
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1 (2) in section 2 by striking from subsection (a)

2 ‘‘December 1, 1992’’ and by inserting in lieu thereof

3 ‘‘March 1, 1994’’; and

4 (3) in sections 5 by striking the second sentence

5 of subsection (a) and by inserting in lieu thereof the

6 following: ‘‘Subsequent to the date of enactment of

7 this Act, but not later than 30 days after the date of

8 enactment of this Act, the President shall select and

9 appoint eleven individuals to the Commission.’’.

10 SEC. 11. NATIONAL WOMEN’S BUSINESS COUNCIL.

11 Section 407 of the Women’s Business Ownership Act

12 of 1988 (15 U.S.C. 631 note) is amended to read as follows:

13 ‘‘SEC. 407. AUTHORIZATION.

14 ‘‘(a) IN GENERAL.—There are authorized to be appro15 priated to carry out this title—

16 ‘‘(1) $500,000 for fiscal year 1993; and

17 ‘‘(2) $500,000 for fiscal year 1994.

18 ‘‘(b) LIMITATION ON AUTHORITY.—New spending au19 thority or authority to enter into contracts as authorized

20 in this Act shall be effective only to such extent and in such

21 amounts as are provided in advance in appropriation Acts.
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1 ‘‘(c) SUNSET.—This section shall cease to be effective

2 on November 30, 1995.’’.

Attest:

Clerk.