II 

108TH CONGRESS 

2D SESSION S. 2193

To improve small business loan programs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 10, 2004

Ms. SNOWE (for herself and Mr. BOND) introduced the following bill; which 

was read twice and referred to the Committee on Small Business and Entrepreneurship 

A BILL

To improve small business loan programs, 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 ‘‘Small Business Loan 

5 Revitalization Act’’. 

6 SEC. 2. COMBINATION FINANCING. 

7 (a) IN GENERAL.—Section 7(a) of the Small Busi8 ness Act (15 U.S.C. 636(a)) is amended by adding at the 

9 end the following: 

10 ‘‘(31) COMBINATION FINANCING.— 
2

•S 2193 IS 

1 ‘‘(A) DEFINITIONS.—In this paragraph— 

2 ‘‘(i) the term ‘combination financing’ 

3 means financing comprised of a loan guar4 anteed under this subsection and a com5 mercial loan; and 

6 ‘‘(ii) the term ‘commercial loan’ 

7 means a loan of which no portion is guar8 anteed by the Federal government. 

9 ‘‘(B) APPLICATION.—A loan guarantee 

10 under this subsection on behalf of a small busi11 ness concern, which is approved within 120 

12 days of the date on which a commercial loan is 

13 obtained by the same small business concern, 

14 shall be subject to the provisions of this para15 graph. 

16 ‘‘(C) COMMERCIAL LOAN AMOUNT.—A 

17 small business concern shall not be eligible to 

18 receive combination financing under this para19 graph unless the commercial loan obtained by 

20 the small business concern does not exceed 

21 $2,000,000. 

22 ‘‘(D) COMMERCIAL LOAN PROVISIONS.—

23 The commercial loan obtained by the small 

24 business concern— 
3

•S 2193 IS 

1 ‘‘(i) may be made by the participating 

2 lender that is providing financing under 

3 this subsection or by a different lender; 

4 ‘‘(ii) may be secured by a senior lien; 

5 and 

6 ‘‘(iii) may be made by a lender in the 

7 Preferred Lenders Program, if applicable. 

8 ‘‘(E) COMMERCIAL LOAN FEE.—A one9 time fee in an amount equal to 0.5 percent of 

10 the amount of the commercial loan shall be paid 

11 by the lender to the Administration if the com12 mercial loan has a senior credit position to that 

13 of the loan guaranteed under this subsection. 

14 All proceeds from the loan guaranteed under 

15 this subsection shall be used to offset the cost 

16 (as defined in section 502 of the Credit Reform 

17 Act of 1990) to the Administration of guaran18 teeing loans under this subsection. 

19 ‘‘(F) DEFERRED PARTICIPATION LOAN

20 ELIGIBILITY.— 

21 ‘‘(i) MAXIMUM AMOUNT.—A small 

22 business concern may not receive combina23 tion financing under this paragraph in an 

24 amount greater than $4,000,000. 
4

•S 2193 IS 

1 ‘‘(ii) NET AMOUNT.—The net amount 

2 of the deferred participation share shall 

3 not exceed the maximum amount of a net 

4 guarantee provided under paragraph 

5 (3)(A). 

6 ‘‘(G) DEFERRED PARTICIPATION LOAN SE7 CURITY.—A loan guaranteed under this sub8 section may be secured by a subordinated lien. 

9 ‘‘(H) AVAILABILITY.—Combination financ10 ing shall be available under this paragraph not11 withstanding any maximum limitation on loans 

12 imposed by the Administration.’’. 

13 (b) SUNSET DATE.—The amendment made by sub14 section (a) shall take effect on the first day after the date 

15 of enactment of this Act and is repealed on October 1, 

16 2004. 

17 SEC. 3. LOAN GUARANTEE FEES. 

18 (a) IN GENERAL.—Section 7(a) of the Small Busi19 ness Act (15 U.S.C. 636(a)) is amended— 

20 (1) in paragraph (18)(B), by adding at the end 

21 the following: ‘‘This subparagraph shall not apply to 

22 any loan approved during the period beginning on 

23 the first day after the date of enactment of para24 graph (23)(A)(iii) and ending on September 30, 

25 2004.’’; and 
5

•S 2193 IS 

1 (2) in paragraph (23), by amending subpara2 graph (A) to read as follows: 

3 ‘‘(A) PERCENTAGE.— 

4 ‘‘(i) IN GENERAL.—With respect to 

5 each loan guaranteed under this sub6 section, the Administrator shall, in accord7 ance with such terms and procedures as 

8 the Administrator shall establish by regula9 tion, assess and collect an annual fee in an 

10 amount equal to 0.5 percent of the out11 standing balance of the deferred participa12 tion share of the loan. 

13 ‘‘(ii) FIRST TEMPORARY PERCENT14 AGE.—With respect to loans approved dur15 ing the period beginning on October 1, 

16 2002 and ending on the date of enactment 

17 of this clause, the annual fee assessed and 

18 collected under clause (i) shall be equal to 

19 0.25 percent of the outstanding balance of 

20 the deferred participation share of the 

21 loan. 

22 ‘‘(iii) SECOND TEMPORARY PERCENT23 AGE.—During the period beginning on the 

24 first day after the date of enactment of 

25 this clause and ending on September 30, 
6

•S 2193 IS 

1 2004, the annual fee assessed and collected 

2 under clause (i) shall be equal to 0.35 per3 cent of the outstanding balance of the de4 ferred participation share of the loan.’’. 

5 (b) EFFECTIVE DATE.—The amendments made by 

6 subsection (a) shall take effect on the first day after the 

7 date of enactment of this Act and are repealed on October 

8 1, 2004. 

9 SEC. 4. RECONSIDERATION OF LOAN APPLICATIONS RE10 JECTED BASED ON LOAN AMOUNT. 

11 (a) CONSIDERATION OF LOAN APPLICATION SUB12 MITTED BEFORE JANUARY 8, 2004.—Beginning on the 

13 first day after the date of enactment of this Act, the Small 

14 Business Administration shall reconsider any application 

15 submitted on or after December 23, 2003 and before Jan16 uary 8, 2004, under section 7(a) of the Small Business 

17 Act (15 U.S.C. 636(a)) that was rejected based on the 

18 loan amount requested before considering any other appli19 cation if the applicant is otherwise eligible for financial 

20 assistance under that section. 

21 (b) EXPORT WORKING CAPITAL.—Any small busi22 ness that received financing under section 7(a)(14) of the 

23 Small Business Act (15 U.S.C. 636(a)(14)) before Janu24 ary 1, 2004, and requests a renewal of such financing, 

25 shall have their request approved regardless of the size 
7

•S 2193 IS 

1 of such financing (subject to the limitations in section 

2 7(a)(3) of such Act) if the small business is otherwise eli3 gible for such financing under that section. 

4 (c) MAXIMUM LOAN AMOUNT.—Ten days after the 

5 date of enactment of this Act, the Small Business Admin6 istration shall allow loans under section 7 of the Small 

7 Business Act (15 U.S.C. 636) up to the maximum amount 

8 permitted under the Small Business Act.

Æ