Diverse Small Business Empowerment Act

To amend the Small Business Act to modify the upfront guarantee fees for certain 7(a) loans, and for other purposes. 1. Short title This Act may be cited as the Diverse Small Business Empowerment Act 2. Modifications to upfront guarantee fees for certain 7 (a) (a) Guarantee fees for certain 7 (a) Section 7(a)(18) of the Small Business Act ( 15 U.S.C. 636(a)(18) (1) in subparagraph (A), by striking With Except as provided in subparagraph (C), and with (2) in subparagraph (B), by inserting or (C)(ii) subparagraph (A)(i) (3) by adding at the end the following new subparagraph: (C) Fees for certain small business concerns (i) Guarantee fee waiver The Administrator may not collect a guarantee fee described in subparagraph (A) in connection with a loan made in the amount of $125,000 or less under this subsection (other than a loan that is repayable in 1 year or less) if such loan is made to a small business concern owned and controlled by veterans, small business concern owned and controlled by socially and economically disadvantaged individuals, or small business concern owned and controlled by women. (ii) Reduced fee With respect to each loan guaranteed under this subsection (other than a loan that is repayable in 1 year or less) made to a small business concern owned and controlled by veterans, small business concern owned and controlled by socially and economically disadvantaged individuals, or small business concern owned and controlled by women, the Administration shall collect a guarantee fee, which shall be payable by the participating lender and may be charged to the borrower, in an amount not to exceed 1 percent of the deferred participation share of a total loan amount that is more than $125,000, but not more than $350,000. (iii) Definitions In this subparagraph: (I) Small business concern owned and controlled by socially and economically disadvantaged individuals The term small business concern owned and controlled by socially and economically disadvantaged individuals (II) Small business concern owned and controlled by veterans The term small business concern owned and controlled by veterans (III) Small business concern owned and controlled by women The term small business concern owned and controlled by women . (b) SBA Express Loan guarantee fee waiver Section 7(a)(31) of the Small Business Act ( 15 U.S.C. 636(a)(31) (I) Guarantee fee waiver for certain small business concerns (i) Guarantee fee waiver The Administrator may not collect a guarantee fee described in paragraph (18) in connection with a loan made under this paragraph to a small business concern owned and controlled by socially and economically disadvantaged individuals or a small business concern owned and controlled by women on or after the date of the enactment of this subparagraph. (ii) Exception If the President’s budget for the upcoming fiscal year, submitted to Congress pursuant to section 1105(a) of title 31, United States Code, includes a cost for the program established under this subsection that is above zero, the requirements of clause (i) shall not apply to loans made during such upcoming fiscal year. (iii) Definitions In this subparagraph: (I) Small business concern owned and controlled by socially and economically disadvantaged individuals The term small business concern owned and controlled by socially and economically disadvantaged individuals (II) Small business concern owned and controlled by women The term small business concern owned and controlled by women .

Summary: Diverse Small Business Empowerment Act This bill reduces or waives the guarantee fee required for certain Small Business Administration loans to small business concerns owned and controlled by veterans, socially and economically disadvantaged individuals, or women.