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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1274 Engrossed in Senate (ES)]

103d CONGRESS

  1st Session

                                S. 1274

_______________________________________________________________________

                                 AN ACT

To reduce the subsidy cost for the Guaranteed Business Loan Program of 
       the Small Business Administration, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
103d CONGRESS
  1st Session
                                S. 1274

_______________________________________________________________________

                                 AN ACT

 
To reduce the subsidy cost for the Guaranteed Business Loan Program of 
       the Small Business Administration, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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 for fiscal years 1993 and 1994.
Sec. 3. Extension of State limitation on interest rates.
Sec. 4. Guaranteed business loan program amendments.
Sec. 5. Interest rate for Preferred Lenders Program.
Sec. 6. Microloan program amendments.
Sec. 7. Small Business Development Center Program.
Sec. 8. Regulations.
Sec. 9. White House Conference on Small Business.
Sec. 10. National Women's Business Council.

SEC. 2. GENERAL AUTHORIZATIONS FOR FISCAL YEARS 1993 AND 1994.

    (a) Financings for Fiscal Year 1993.--Section 20(g)(2) of the Small 
Business Act (15 U.S.C. 631 note) is amended--
            (1) by striking ``$7,030,000,000'' and inserting 
        ``$8,455,000,000'';
            (2) in subparagraph (A), by striking ``$6,200,000,000'' and 
        inserting ``$7,500,000,000''; and
            (3) in subparagraph (C), by striking ``$775,000,000'' and 
        inserting ``$900,000,000''.
    (b) Financings for Fiscal Year 1994.--Section 20(i)(2) of the Small 
Business Act (15 U.S.C. 631 note) is amended--
            (1) by striking ``$8,083,000,000'' and inserting 
        ``$9,258,000,000'';
            (2) in subparagraph (A), by striking ``$7,200,000,000'' and 
        inserting ``$8,000,000,000''; and
            (3) in subparagraph (C), by striking ``$825,000,000'' and 
        inserting ``$1,200,000,000''.
    (c) Redesignations.--Section 20 of the Small Business Act (15 
U.S.C. 631 note) is amended--
            (1) in subsection (l), as added by section 405(3) of the 
        Small Business Credit and Business Opportunity Enhancement Act 
        of 1992--
                    (A) by striking ``(l) There'' and inserting ``(2) 
                There'', and indenting appropriately; and
                    (B) by striking ``subsection (k)'' and inserting 
                ``paragraph (1)'';
            (2) by redesignating subsection (k), as added by section 
        405(3) of the Small Business Credit and Business Opportunity 
        Enhancement Act of 1992, as subsection (l);
            (3) in subsection (n)--
                    (A) by striking ``(n) There'' and inserting ``(2) 
                There'', and indenting appropriately; and
                    (B) by striking ``subsection (m)'' and inserting 
                ``paragraph (1)'';
            (4) by redesignating subsection (o) as subsection (n); and
            (5) in subsection (p)--
                    (A) by striking ``(p) There'' and inserting ``(2) 
                There'', and indenting appropriately; and
                    (B) by striking ``subsection (o)'' and inserting 
                ``paragraph (1)''.

SEC. 3. EXTENSION OF STATE LIMITATION ON INTEREST RATES.

    Section 112(c) of the Small Business Administration Reauthorization 
and Amendments Act of 1988 (Public Law 100-590; 102 Stat. 2996) is 
amended--
            (1) by striking paragraph (2); and
            (2) by striking ``(1) In general.--''.

SEC. 4. GUARANTEED BUSINESS LOAN PROGRAM AMENDMENTS.

    (a) Additional Guarantee Fees.--
            (1) In general.--Section 7(a)(18) of the Small Business Act 
        (15 U.S.C. 636(a)(18)) is amended--
                    (A) by inserting ``(A)'' after ``(18)''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(B) In addition to fees collected under subparagraph (A), 
        the Administration shall collect an excess premium fee from the 
        participating lending institution in any case in which the sale 
        price of the guaranteed portion of a loan made under this 
        section and sold on the secondary market exceeds 110 percent of 
        the face value of the guaranteed portion of the loan. Such fee 
        shall be equal to 50 percent of that portion of the sale price 
        that is in excess of 110 percent of the face value of the 
        guaranteed portion of the loan. Such fee may not be charged to 
        the borrower.''.
            (2) Sunset.--The amendments made by paragraph (1) shall 
        remain in effect until September 30, 1996.
    (b) Guarantee Percentages.--
            (1) In general.--Subparagraph (B) of section 7(a)(2) of the 
        Small Business Act (15 U.S.C. 636(a)(2)) is amended to read as 
        follows:
            ``(B) subject to the limitation in paragraph (3)--
                    ``(i) not less than 70 percent nor more 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 less 
                than 10 years, except that the participation by the 
                Administration may be reduced below 70 percent upon 
                request of the participating lender;
                    ``(ii) not less than 70 percent nor more 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 not 
                less than 10 years, except that the participation by 
                the Administration may be reduced below 70 percent upon 
                request of the participating lender; and
                    ``(iii) not less than 85 percent of the financing 
                outstanding at the time of disbursement, if such 
                financing is a loan under paragraph (16).''.
            (2) Additional amendments.--Section 7(a)(2) of the Small 
        Business Act (15 U.S.C. 636(a)(2)) is amended--
                    (A) in the second sentence, by striking 
                ``guaranteed to less than 85 percent'' and inserting 
                ``guaranteed to less than the specified percentages''; 
                and
                    (B) in the third sentence, by striking ``80 
                percent'' and inserting ``75 percent''.
    (c) Annual Guarantee Fee; Penalty.--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)(A) For loans guaranteed under this subsection, the 
        Administrator is authorized to collect, either directly or 
        through a fiscal and transfer agent, an annual fee on each loan 
        that is equal to \1/4\ of 1 percent of the declining principal 
        balance of the loan.
            ``(B) The Administrator is authorized to impose and 
        collect, either directly or through a fiscal and transfer 
        agent, a reasonable penalty fee on late payments of the fee 
        authorized under subparagraph (A).''.

SEC. 5. INTEREST RATE FOR PREFERRED LENDERS PROGRAM.

    Section 7(a)(2) of the Small Business Act (15 U.S.C. 7(a)(2)) is 
amended by inserting after the third sentence, the following: ``The 
maximum interest rate for a loan under the Preferred Lenders Program 
shall not exceed the maximum interest rate applicable to other loan 
guarantee programs under section 7(a), as established by the 
Administrator.''.

SEC. 6. 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 (4)(C)(ii), by inserting ``to defray costs 
        associated with loan fund administration and'' before ``to 
        provide'';
            (3) in paragraph (5)(A), by striking ``6 grants'' and 
        inserting ``12 grants'';
            (4) by amending paragraph (9)(A) to read as follows:
                    ``(A) In general.--The Administration may provide, 
                directly or through an organization described in 
                subparagraph (B), technical assistance for participants 
                and potential participants in the Microloan 
                Demonstration Program to give such participants and 
                potential participants such knowledge, skills, and 
                understanding of microlending practices necessary to 
                operate successful microloan programs.''; and
            (5) in paragraph (9)(B)--
                    (A) by striking ``3 percent'' and inserting ``7 
                percent''; and
                    (B) by inserting ``and nonprofit organizations that 
                have demonstrated experience in providing training 
                support for microenterprise development and financing'' 
                after ``microlending organizations''.

SEC. 7. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.

    Section 223(b) of the Small Business Credit and Business 
Opportunity Enhancement Act of 1992 (15 U.S.C. 631 note) is amended by 
striking ``Such proposed regulations shall not be published in the 
Federal Register.''.

SEC. 8. REGULATIONS.

    Not later than 60 days after the date of enactment of this Act, the 
Administrator of the Small Business Administration shall promulgate 
interim final regulations to implement the amendments made by this Act.

SEC. 9. WHITE HOUSE CONFERENCE ON SMALL BUSINESS.

    (a) Dates of Conferences.--Section 2 of the White House Conference 
on Small Business Authorization Act (15 U.S.C. 631 note) is amended--
            (1) by striking ``January 1, 1994'' and inserting ``May 1, 
        1995'';
            (2) by striking ``April 1, 1994'' and inserting ``December 
        31, 1995''; and
            (3) by striking ``December 1, 1992'' and inserting ``March 
        1, 1994''.
    (b) Appointment of Commissioners.--Section 5(a) of the White House 
Conference on Small Business Authorization Act (15 U.S.C. 631 note) is 
amended by striking ``The President'' and inserting ``Not later than 30 
days after the date of enactment of the Small Business Guaranteed 
Credit Enhancement Act of 1993, the President''.

SEC. 10. NATIONAL WOMEN'S BUSINESS COUNCIL.

    (a) Membership.--
            (1) New members.--Section 403 of the Women's Business 
        Ownership Act of 1988 (15 U.S.C. 631 note) is amended in 
        subsection (a)--
                    (A) by striking ``nine'' and inserting ``eleven'';
                    (B) in paragraph (1), by inserting ``, the 
                Secretary of Labor (or such Secretary's deputy),'' 
                after ``(or such Secretary's deputy)'';
                    (C) in paragraph (2), by striking ``and'' at the 
                end;
                    (D) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (E) by adding at the end the following new 
                paragraph:
            ``(4) one member shall be appointed by the President.''.
            (2) Appointment date.--The first appointment required under 
        section 403(a)(4) of the Women's Business Ownership Act of 1988 
        (as added by paragraph (1)(E)) shall be made not later than 90 
        days after the date of enactment of this Act.
            (3) Terms of current members.--Any member appointed under 
        paragraph (2) or (3) of section 403(a) of the Women's Business 
        Ownership Act of 1988 (15 U.S.C. 631 note) and serving prior to 
        the date of enactment of this Act shall continue to serve until 
        the expiration of the term for which the member was appointed.
            (4) Conforming amendments.--Section 403(b) of the Women's 
        Business Ownership Act of 1988 (15 U.S.C. 631 note) is 
        amended--
                    (A) in paragraph (1), by striking ``section (a)(2) 
                and (3)'' and inserting ``paragraphs (2), (3), and (4) 
                of subsection (a)'';
                    (B) in paragraph (2)(C), by striking ``subsection 
                (a)(2) and (3)'' and inserting ``paragraphs (2), (3), 
                and (4) of subsection (a)''; and
                    (C) in paragraph (2)(F)--
                            (i) by striking ``(1) Two'' and inserting 
                        ``(i) Three''; and
                            (ii) by striking ``(2) A majority'' and 
                        inserting ``(ii) A majority''.
            (5) Deletion of obsolete references.--Section 404 of the 
        Women's Business Ownership Act of 1988 (15 U.S.C. 631 note) is 
        amended by striking ``rate of basic pay payable for GS-18 of 
        the General Schedule'' each place it appears and inserting 
        ``rate of pay payable for a position at level IV of the 
        Executive Schedule under section 5315 of title 5, United States 
        Code''.
    (b) Authorization.--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 1994; and
            ``(2) $500,000 for fiscal year 1995.
    ``(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.''.

            Passed the Senate July 30 (legislative day, June 30), 1993.

            Attest:

                                                             Secretary.
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