I
103D CONGRESS
2D SESSION
H. R. 4297
To amend the Small Business Act.
IN THE HOUSE OF REPRESENTATIVES
APRIL 25, 1994
Mr. LAFALCE (by request) introduced the following bill; which was referred
to the Committee on Small Business
A BILL
To amend the Small Business Act.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That this Act may be cited as the ‘‘Small Business Admin-
istration Amendments of 1994’’.
TITLE I
SEC. 101. Section 7(m)(1)(B) of the Small Business
Act is amended by adding the words ‘‘, a lender or alli-
ance of lenders’’ after the word ‘‘Administration’’, and by
adding after the word ‘‘intermediaries’’ in clause (i) there-
of the following phrase ‘‘: Provided, however, That the Ad-
ministration may make in its sole discretion up to 100
percent deferred participation loans to ten intermediaries
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which will be located in urban areas and ten
intermediaries which will be located in rural areas,’’.
SEC. 102. Section 7(m)(7) of the Small Business Act
is amended by deleting the number ‘‘50’’ from subpara-
graph (B) thereof, and replacing it with the number
‘‘140’’, and by deleting the period at the end thereof and
adding the phrase : ‘‘Provided, That no more than 200
total microloan programs may be funded’’, and by deleting
subparagraph (C) thereof and inserting in lieu thereof:
‘‘(C) In no case shall a State receive more than
$5,000,000 to fund all microloan programs conducted in
that State.’’.
SEC. 103. Section 7(m)(3)(C) of the Small Business
Act is amended by replacing the number ‘‘$1,250,000’’
with the number ‘‘$1,750,000’’.
SEC. 104. Section 7(m)(3)(F) of the Small Business
Act is amended by adding after the phrase ‘‘10 years’’
in clause (i) the following: ‘‘with the first 5 years of any
deferred participation loan being a revolving line of credit
on which only monthly payments of interest will be re-
quired and the balance amortized over the second 5 year
period, with equal monthly payments of principal and in-
terest’’; and by revising clause (ii) to read as follows: ‘‘(ii)
APPLICABLE INTEREST RATES.—Exception as provided in
clause (iii), loans made by the Administration under this
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subsection to an intermediary shall bear an interest rate
equal to the rate of interest on comparable 5 year obliga-
tions of the United States Treasury.
TITLE II
SEC. 201. Section 7(a)(2)(B)(iv) of the Small Busi-
ness Act is amended to read as follows:
‘‘. . . (iv) not more than 90 percent of the fi-
nancing outstanding at the time of disbursement if
such financing is an extension or a revolving line of
credit made under paragraph (14) and not less than
90 percent of the financing outstanding at the time
of disbursement if such financing is a loan under
paragraph (16).’’.
SEC. 202. Section 7(a)(14) of the Small Business Act
is amended to read as follows:
‘‘(14) (A) The Administration under this sub-
section may provide extensions, specifically including
guarantees of standby letters of credit and revolving
lines of credit for export purposes, and financing to
enable small business concerns, including small busi-
ness export trading companies and small business
export management companies, to develop foreign
markets. A bank or participating lending institution
may establish such rate of interest on extensions, re-
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volving lines of credit and financing made under this
paragraph as may be legal and reasonable.’’.
SEC. 203. Section 7(a)(3)(B) of the Small Business
Act is amended to read as follows:
‘‘. . . if the total amount outstanding and com-
mitted (on a deferred basis) solely for the purposes
provided in paragraph (16) to the borrower from the
Business Guaranteed Loan Financing Account es-
tablished by this Act would exceed $1,000,000 such
amount to be in addition to any financing solely for
working capital, supplies, or revolving lines of credit
for export purposes up to a maximum of $750,000:
Provided, however, That in no event may the aggre-
gate amount outstanding and committed by the Ad-
ministration 
under 
this 
subsection 
exceed
$1,250,000 . . .’’.
TITLE III
SEC. 301. Sections 8(b)(2), (3) and (4) of the Small
Business Act are amended by inserting the words ‘‘and
other’’ after the word ‘‘small’’ wherever it appears.
TITLE IV
SEC. 401. Section 28(2)(g) of the Small Business Act
is deleted and in its place the following is substituted:
‘‘(g) There is established within the Administra-
tion an Office of Women’s Business Ownership
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which shall be responsible for the administration
under the supervision by the Administration of all
authority conferred by this section. Such office shall
be headed by a director who shall be appointed by
the Administrator.’’.
TITLE V
SEC. 501. Section 8(b)(1)(A) of the Small Business
Act is amended by adding at the end thereof the following
sentence: ‘‘Notwithstanding any other provision of law, the
authority provided by this subparagraph shall remain
available until expressly repealed.’’.
SEC. 502. Section 411(a)(3) of the Small Business
Investment Act of 1958 is amended by adding the follow-
ing sentence at the end thereof: ‘‘Notwithstanding any
other provision of law, the authority granted by this para-
graph shall remain available until expressly repealed.’’.
SEC. 503. Section 5(b)(8) of the Small Business Act
is amended by deleting the words ‘‘not in excess of six
months’’.
SEC. 504. The second sentence of section 732 of Pub-
lic Law 100–656 is repealed.
SEC. 505. Section 4(c) of the Small Business Act is
amended to read as follows:
‘‘(c) (1) There is hereby established in the Treasury
one Loan Liquidation Fund. All repayment of loans and
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debentures, payments of interest, and other receipts aris-
ing out of transactions entered into by the Administration
pursuant to sections 5(e), 5(g), 7(a), 7(b), 7(c)(2), 7(e),
7(h), 7(l), 7(m), and 8(a) of this Act, and titles III, IV,
and V of the Small Business Investment Act of 1958,
prior to October 1, 1991, shall be paid into such Loan
Fund Liquidating Account. Balances existing in those re-
volving funds, as in effect immediately prior to the effec-
tive date of this paragraph, shall be transferred into such
Loan Liquidation Fund. This Loan Liquidation Fund
shall have available, without fiscal year limitation, such
funds as are necessary to finance its operational needs.
(2) The Administration shall submit to the Commit-
tees on Small Business and Appropriations of the Senate
and the House of Representatives, as soon as possible
after the beginning of each fiscal year, a full and complete
report on the status of the Loan Liquidation Fund estab-
lished pursuant to paragraph (1).’’.
SEC. 506. Section 4(c)(5)(B)(ii) of the Small Busi-
ness Act is amended to read as follows:
‘‘(ii) The Administration shall pay into the mis-
cellaneous receipts of the Treasury following the
close of each fiscal year, the actual interest it col-
lects during that fiscal year on all financings made
under the authority of this Act.’’.
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SEC. 507. Section 3(a)(2) of the Small Business Act
is amended to read as follows:
‘‘. . . (2) In addition to the criteria specified in
paragraph (1), the Administrator may specify de-
tailed definitions or standards for example, by num-
ber of employees or dollar volume of business, by
which a business concern is to be recognized as a
small business concern for the purposes of this Act
or any other Act. Unless specifically authorized by
statute, the Secretary of a department or the head
of a Federal agency, other than the Administrator of
the Small Business Administration, may not pre-
scribe for the use of such department or agency a
size standard for categorizing a business concern as
a small business concern, unless such proposed size
standard—
‘‘(A) is being proposed after an oppor-
tunity for public notice and comment;
‘‘(B) provides for determining, over a pe-
riod of not less than 3 years—
‘‘(i) the size of a manufacturing con-
cern as measured by its average employ-
ment based upon employment during each
of the concern’s pay periods for the preced-
ing completed twelve calendar months; or
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‘‘(ii) the size of a concern providing
services on basis of the annual average
gross receipts of the concern over a period
of not less than 3 years; and
‘‘(C) is approved by the Administrator.
‘‘(3) When establishing or approving any size
standard pursuant to paragraph (2), the Adminis-
trator shall consider variations in economic activity
from industry to industry unless the Administrator
determines that size standards should not vary in
order to meet program needs.’’.
SEC. 508. Section 5(b) of the Small Business Act is
amended by deleting the word ‘‘and’’ at the end of para-
graph (10) thereof, by removing the ‘‘.’’ at the end of
paragraph (11) thereof and replacing it with ‘‘, and’’ and
(b) adding a new paragraph (12) which reads as follows:
‘‘. . . (12) to impose reasonable fees to be
charged in connection with applications for assist-
ance, and the provision of assistance under this Act
and the Small Business Investment Act of 1958 and
to retain such fees to offset the costs of administra-
tion of such assistance.’’.
SEC. 509. Section 8(b) of the Small Business Act is
amended by deleting the word ‘‘and’’ at the end of para-
graph (15), by striking the period at the end of paragraph
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8(b)(16) and replacing it with ‘‘; and’’, and by adding a
new paragraph 8(b)(17) which reads as follows:
‘‘. . . (17) to charge and collect such fees as
may be necessary to cover all costs associated with
the production and dissemination of compilations of
information produced by the Administration under
the authority of the Small Business Act and the
Small Business Investment Act of 1958, and to re-
tain such fees and utilize such fees to offset the
costs of production and dissemination of such com-
pilations of information.’’.
TITLE VI
SEC. 601. Sections 20(k) through 20(p) of the Small
Business Act are repealed and the following is substituted
in their place:
‘‘(k) The following program levels are authorized for
fiscal year 1995:
‘‘(1) For the programs authorized by this Act,
the 
Administration 
is 
authorized 
to 
make
$13,910,000,000 in deferred participation loans and
other financings; and of such sum, the Administra-
tion is authorized to make $11,500,000,000 in gen-
eral business loans as provided in section 7(a),
$110,000,000 in loans as provided in section 7(m),
and $2,300,000,000 in financings as provided in sec-
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tion 7(a)(13) and section 504 of the Small Business
Investment Act of 1958.
‘‘(2) For the programs authorized by title III of
the Small Business Investment Act of 1958, the Ad-
ministration is authorized to make $23,000,000 in
purchases of preferred stock, $275,000,000 in guar-
antees of debentures of which $65,000,000 is au-
thorized for guarantees of debentures of companies
operating pursuant to section 301(d) of such Act,
and $550,000,000 in guarantees of participating se-
curities.
‘‘(3) For the programs authorized by part B of
title IV of the Small Business Investment Act of
1958, the Administration is authorized to enter into
guarantees not to exceed $2,000,000,000.
‘‘(l) There are authorized to be appropriated to the
Administration for fiscal year 1995 such sums as may be
necessary to carry out subsection (k), including salaries
and expenses of the Administration.
‘‘(m) The following program levels are authorized for
fiscal year 1996:
‘‘(1) For the programs authorized by this Act,
the 
Administration 
is 
authorized 
to 
make
$17,475,000,000 in deferred participation loans and
other financings; and of such sum, the Administra-
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tion is authorized to make $13,500,000,000 in gen-
eral business loans as provided in section 7(a),
$175,000,000 in loans as provided in section 7(m),
and $3,800,000,000 in financings as provided in sec-
tion 7(a)(13) and section 504 of the Small Business
Investment Act of 1958.
‘‘(2) For the programs authorized by title III of
the Small Business Investment Act of 1958, the Ad-
ministration is authorized to make $24,000,000 in
purchases of preferred stock, $320,000,000 in guar-
antees of debentures of which $70,000,000 is au-
thorized for guarantees of debentures of companies
operating pursuant to section 301(d) of such Act,
and $1,100,000,000 in guarantees of participating
securities.
‘‘(3) For the programs authorized by part B of
title IV of the Small Business Investment Act of
1958, the Administration is authorized to enter into
guarantees not to exceed $2,000,000,000.
‘‘(n) There are authorized to be appropriated to the
Administration for fiscal year 1996, such sums as may
be necessary to carry out subsection (m), including sala-
ries and expenses of the Administration.
‘‘(o) The following program levels are authorized for
fiscal year 1997: