I 

115TH CONGRESS 

2D SESSION H. R. 7186 

To amend the Small Business Act to modify the upfront guarantee fees 

for certain 7(a) loans, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 28, 2018 

Mr. VEASEY (for himself, Mr. BROWN of Maryland, Ms. JACKSON LEE, Mr. 

THOMPSON of Mississippi, Mr. TAKANO, Mr. GONZALEZ of Texas, Mr. 

GRIJALVA, Mr. CORREA, Mr. SIRES, Mrs. NAPOLITANO, Ms. CLARKE of 

New York, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. RASKIN, Mr. 

COHEN, Ms. NORTON, and Ms. WILSON of Florida) introduced the following bill; which was referred to the Committee on Small Business 

A BILL 

To amend the Small Business Act to modify the upfront 

guarantee fees for certain 7(a) loans, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Diverse Small Business 

5 Empowerment Act’’. 


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1 SEC. 2. MODIFICATIONS TO UPFRONT GUARANTEE FEES 

2 FOR CERTAIN 7(a) LOANS. 

3 (a) GUARANTEE FEES FOR CERTAIN 7(a) LOANS.— 

4 Section 7(a)(18) of the Small Business Act (15 U.S.C. 

5 636(a)(18)) is amended— 

6 (1) in subparagraph (A), by striking ‘‘With’’ 

7 and inserting ‘‘Except as provided in subparagraph 

8 (C), and with’’; 

9 (2) in subparagraph (B), by inserting ‘‘or 

10 (C)(ii)’’ after ‘‘subparagraph (A)(i)’’; and 

11 (3) by adding at the end the following new sub12 paragraph: 

13 ‘‘(C) FEES FOR CERTAIN SMALL BUSINESS

14 CONCERNS.— 

15 ‘‘(i) GUARANTEE FEE WAIVER.—The 

16 Administrator may not collect a guarantee 

17 fee described in subparagraph (A) in con18 nection with a loan made in the amount of 

19 $125,000 or less under this subsection 

20 (other than a loan that is repayable in 1 

21 year or less) if such loan is made to a 

22 small business concern owned and con23 trolled by veterans, small business concern 

24 owned and controlled by socially and eco25 nomically disadvantaged individuals, or 


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1 small business concern owned and con2 trolled by women. 

3 ‘‘(ii) REDUCED FEE.—With respect to 

4 each loan guaranteed under this subsection 

5 (other than a loan that is repayable in 1 

6 year or less) made to a small business con7 cern owned and controlled by veterans, 

8 small business concern owned and con9 trolled by socially and economically dis10 advantaged individuals, or small business 

11 concern owned and controlled by women, 

12 the Administration shall collect a guar13 antee fee, which shall be payable by the 

14 participating lender and may be charged to 

15 the borrower, in an amount not to exceed 

16 1 percent of the deferred participation 

17 share of a total loan amount that is more 

18 than $125,000, but not more than 

19 $350,000. 

20 ‘‘(iii) DEFINITIONS.—In this subpara21 graph: 

22 ‘‘(I) SMALL BUSINESS CONCERN

23 OWNED AND CONTROLLED BY SO24 CIALLY AND ECONOMICALLY DIS25 ADVANTAGED INDIVIDUALS.—The 


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1 term ‘small business concern owned 

2 and controlled by socially and eco3 nomically disadvantaged individuals’ 

4 has the meaning given in section 

5 8(d)(3)(C). 

6 ‘‘(II) SMALL BUSINESS CONCERN

7 OWNED AND CONTROLLED BY VET8 ERANS.—The term ‘small business 

9 concern owned and controlled by vet10 erans’ has the meaning given in sec11 tion 3(q). 

12 ‘‘(III) SMALL BUSINESS CON13 CERN OWNED AND CONTROLLED BY

14 WOMEN.—The term ‘small business 

15 concern owned and controlled by 

16 women’ has the meaning given in sec17 tion 3(n).’’. 

18 (b) SBA EXPRESS LOAN GUARANTEE FEE WAIV19 ER.—Section 7(a)(31) of the Small Business Act (15 

20 U.S.C. 636(a)(31)) is amended by adding at the end the 

21 following new subparagraph: 

22 ‘‘(I) GUARANTEE FEE WAIVER FOR CER23 TAIN SMALL BUSINESS CONCERNS.— 

24 ‘‘(i) GUARANTEE FEE WAIVER.—The 

25 Administrator may not collect a guarantee 


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1 fee described in paragraph (18) in connec2 tion with a loan made under this para3 graph to a small business concern owned 

4 and controlled by socially and economically 

5 disadvantaged individuals or a small busi6 ness concern owned and controlled by 

7 women on or after the date of the enact8 ment of this subparagraph. 

9 ‘‘(ii) EXCEPTION.—If the President’s 

10 budget for the upcoming fiscal year, sub11 mitted to Congress pursuant to section 

12 1105(a) of title 31, United States Code, 

13 includes a cost for the program established 

14 under this subsection that is above zero, 

15 the requirements of clause (i) shall not 

16 apply to loans made during such upcoming 

17 fiscal year. 

18 ‘‘(iii) DEFINITIONS.—In this subpara19 graph: 

20 ‘‘(I) SMALL BUSINESS CONCERN

21 OWNED AND CONTROLLED BY SO22 CIALLY AND ECONOMICALLY DIS23 ADVANTAGED INDIVIDUALS.—The 

24 term ‘small business concern owned 

25 and controlled by socially and ecoVerDate Sep 11 2014 20:56 Nov 29, 2018 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7186.IH H7186

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1 nomically disadvantaged individuals’ 

2 has the meaning given in section 

3 8(d)(3)(C). 

4 ‘‘(II) SMALL BUSINESS CONCERN

5 OWNED AND CONTROLLED BY

6 WOMEN.—The term ‘small business 

7 concern owned and controlled by 

8 women’ has the meaning given in sec9 tion 3(n).’’. 

Æ 


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