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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 375 Introduced in Senate (IS)]

106th CONGRESS
  1st Session
                                 S. 375

To create a rural business lending pilot program within the U.S. Small 
            Business Administration, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            February 4, 1999

  Mr. Stevens (for himself, Mr. Inouye, Mr. Murkowski, and Mr. Akaka) 
introduced the following bill; which was read twice and referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL

 
To create a rural business lending pilot program within the U.S. 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.

    This Act may be referred to as the ``Rural Business Lending Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are to--
            (1) establish a rural business lending pilot program to be 
        administered by the U.S. Small Business Administration;
            (2) increase the number of loans in certain rural areas for 
        the purposes authorized by section 7(a) of the Small Business 
        Act (15 U.S.C. 636);
            (3) make loans and capital for investment more readily 
        available in rural areas for economic development and 
        employment that might not otherwise be available; and
            (4) review the effectiveness of the pilot program after two 
        years to determine the advisability of making it permanent or 
        implementing it in other areas.

SEC. 3. RURAL BUSINESS LENDING PILOT PROJECT.

    Section 7 of the Small Business Act (15 U.S.C. 636) is amended by 
adding the following new subsection--
    ``(n) Rural Business Lending Program.--
            ``(1) There is established a Rural Business Lending Program 
        under which the U.S. Small Business Administration shall--
                    ``(A) guarantee loans through participating lenders 
                in an amount not greater than $750,000 per loan;
                    ``(B) guarantee up to 90 percent of loans made by 
                participating lenders;
                    ``(C) collect a guarantee fee of not more than one 
                percent of the amount guaranteed; and
                    ``(D) exempt participating lenders from the basis 
                point fee otherwise required under the 7(a) lending 
                program if such an exemption will significantly 
                increase the number of loans made under the Rural 
                Business Lending Program.
            ``(2) In the event that the Small Business Administration 
        is required to honor a guarantee under the Rural Business 
        Lending Program, the Small Business Administration shall take 
        over servicing responsibility as soon as compliance with the 
        loan authorization and review of the servicing can reasonably 
        by accomplished.
            ``(3) Applications under this program shall be in the same 
        form and follow the same procedures as loans under the regular 
        7(a) program.
            ``(4) Applications received under this program shall be 
        processed in the Small Business Administration Offices in the 
        State of Alaska and State of Hawaii.
            ``(5) Within 24 months after the date of enactment of this 
        Act, the Administration shall submit to the Committees on Small 
        Business of the Senate and the House of Representatives a 
        report on the effectiveness of the Rural Business Lending 
        Program.
            ``(6) A small business concern must meet all the criteria 
        and requirements for loans made under the regular 7(a) loan 
        program but must also be located in a community with a 
        population of 9,000 or less as determined by the most recent 
        census, and be located in the State of Alaska or the State of 
        Hawaii.''.

SEC. 4. AUTHORITY.

    There are authorized to be appropriated such funds as are necessary 
in each of fiscal years 2000, 2001, and 2002 to carry out the 
provisions of this Act.
                                 <all>
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