I

104TH CONGRESS

2D SESSION H. R. 3989

To amend the Small Business Act, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 2, 1996

Mr. LAFALCE introduced the following bill; which was referred to the

Committee on Small Business

A BILL

To amend the Small Business Act, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. 7(a) LOAN GUARANTEE FEES.

4 (a) FEES.—Section 7(a) of the Small Business Act

5 (15 U.S.C. 636(a)) is amended by striking from para6 graph (23) ‘‘0.5 percent’’ and by inserting in lieu thereof

7 ‘‘0.5835 percent’’.

8 (b) APPLICATION.—The fee increase authorized by

9 this section shall be applicable to loan guarantees ap10 proved on or after October 1, 1996, and shall not apply

11 to any loan approved on or after October 1, 1997.
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1 SEC. 2. AMENDMENT TO SMALL BUSINESS GUARANTEED

2 CREDIT ENHANCEMENT ACT OF 1993.

3 Section 7 of the Small Business Guaranteed Credit

4 Enhancement Act of 1993 (Public Law 103–81; 15 U.S.C.

5 634 note) is amended by striking ‘‘1996’’ and by inserting

6 in lieu thereof ‘‘1997’’.

7 SEC. 3. DEVELOPMENT COMPANY PROGRAM FEES.

8 (a) BORROWER FEES.—Section 503(b)(7)(A) (15

9 U.S.C. 697(b)(7)(A)) is amended by striking ‘‘0.125 per10 cent’’ and by inserting ‘‘0.9375 percent’’.

11 (b) LENDER FEES.—Section 503(d) of the Small

12 Business Investment Act of 1958 (15 U.S.C. 697(d)) is

13 amended to read as follows:

14 ‘‘(d)(1) The Administration may impose an additional

15 charge for administrative expenses with respect to each

16 debenture for which payment of principal and interest is

17 guaranteed under subsection (a).

18 ‘‘(2) The Administration shall also impose a one-time

19 fee of 50 basis points on the total participation in any

20 project by a bank or other financial institution which pro21 vides funding for part of the cost of the project as provided

22 in section 502(3) of this Act.

23 ‘‘(3) The Administration shall collect annually from

24 each development company a fee of 0.125 percent of the

25 outstanding principal balance of any guaranteed deben26 ture authorized by the Administration. Such fee shall be
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1 derived from the servicing fees collected by the develop2 ment company pursuant to regulation, and shall not be

3 derived from any additional fees imposed on small busi4 ness concerns.’’.

5 (c) APPLICATION.—The fees authorized by this sec6 tion shall apply to financings approved by the Administra7 tion on or after October 1, 1996, but shall not apply to

8 financings approved by the Administration on or after Oc9 tober 1, 1997.

10 SEC. 4. SMALL BUSINESS INVESTMENT COMPANY PRO11 GRAM.

12 (a) Fees.—Section 303 of the Small Business Invest13 ment Act of 1958 (15 U.S.C. 683) is amended—

14 (1) in subsection (b), in the fifth sentence, by

15 striking ‘‘1 per centum,’’ and all that follows before

16 the period at the end of the sentence and inserting

17 the following: ‘‘1 percent, plus an additional charge

18 of 1 percent per annum which shall be paid to and

19 retained by the Administration’’;

20 (2) in subsection (g)(2), by striking ‘‘1 per cen21 tum,’’ and all that follows before the period at the

22 end of the paragraph and inserting the following: ‘‘1

23 percent, plus an additional charge of 1 percent per

24 annum which shall be paid to and retained by the

25 Administration’’; and
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1 (3) by adding at the end the following new sub2 section:

3 ‘‘(i) With respect to leverage granted by the Adminis4 tration to a licensee, the Administration shall collect from

5 the licensee a nonrefundable fee in an amount equal to

6 3 percent of the face amount of leverage granted to the

7 licensee, payable upon the earlier of the date of entry into

8 any commitment for such leverage or the date on which

9 the leverage is drawn by the licensee.’’.

10 (b) APPLICATION.—The amendments made by this

11 section shall be effective as to leverage approved on or

12 after October 1, 1996, and shall cease to be effective for

13 financings approved on or after October 1, 1997.

14 SEC. 5. SBIC AUTHORIZATIONS.

15 Section 20(p)(3) of the Small Business Act (15

16 U.S.C. 631 note) is amended—

17 (1) by striking paragraph (A) and by redesig18 nating paragraphs (B) and (C) as (A) and (B); and

19 (2) by striking from paragraph (A), as redesig20 nated by this section, ‘‘of which $48,000,000 is au21 thorized in guarantees of debentures from companies

22 operating pursuant to section 301(d) of such Act’’.
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1 SEC. 6. REPEALER.

2 Sections 1, 3, and 4 of this Act are repealed October

3 1, 1997.

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