II 
108TH CONGRESS 
2D SESSION 
H. R. 4062 
IN THE SENATE OF THE UNITED STATES 
MARCH 31, 2004 
Received 
AN ACT 
To provide for an additional temporary extension of pro-
grams under the Small Business Act and the Small 
Business Investment Act of 1958 through June 4, 2004, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. ADDITIONAL TEMPORARY EXTENSION OF AU-
THORIZATION OF PROGRAMS UNDER SMALL 
BUSINESS ACT AND SMALL BUSINESS INVEST-
MENT ACT OF 1958. 
The authorization for any program, authority, or pro-
vision, including any pilot program, that was extended 
through April 2, 2004, by section 1 of Public Law 108– 
205 is further extended through June 4, 2004, under the 
same terms and conditions. 
SEC. 2. EXTENSION OF CERTAIN FEE AUTHORIZATIONS. 
Section 503(f) of the Small Business Investment Act 
of 1958 (15 U.S.C. 697 (f)), as amended by section 2 of 
Public Law 108–205, is further amended by striking 
‘‘May 21, 2004’’ and inserting ‘‘October 1, 2004’’. 
SEC. 3. FISCAL YEAR 2004 PURCHASE AND GUARANTEE AU-
THORITY UNDER TITLE III OF SMALL BUSI-
NESS INVESTMENT ACT OF 1958. 
Section 20 of the Small Business Act (15 U.S.C. 631 
note) is amended by adding at the end the following new 
subsection: 
‘‘(j) FISCAL YEAR 2004 PURCHASE AND GUARANTEE 
AUTHORITY UNDER TITLE III OF SMALL BUSINESS IN-
VESTMENT ACT OF 1958.—For fiscal year 2004, for the 
programs authorized by title III of the Small Business In-
vestment Act of 1958 (15 U.S.C. 681 et seq.), the Admin-
istration is authorized to make—
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‘‘(1) $4,000,000,000 in purchases of partici-
pating securities; and 
‘‘(2) $3,000,000,000 in guarantees of deben-
tures.’’. 
SEC. 4. COMBINATION FINANCING. 
(a) IN GENERAL.—During the period beginning on 
the date of the enactment of this section and ending on 
September 30, 2004, subsection (a) of section 7 of the 
Small Business Act (15 U.S.C. 636(a)) shall be applied 
as if the paragraph set forth in subsection (b) were added 
at the end of that subsection (a). 
(b) PARAGRAPH SPECIFIED.—The paragraph re-
ferred to in subsection (a) is as follows: 
‘‘(31) COMBINATION FINANCING.— 
‘‘(A) DEFINITIONS.—In this paragraph— 
‘‘(i) the term ‘combination financing’ 
means financing comprised of a loan guaran-
teed under this subsection and a commercial 
loan; and 
‘‘(ii) the term ‘commercial loan’ means a 
loan which is part of a combination financing 
and no portion of which is guaranteed by the 
Federal Government. 
‘‘(B) APPLICABILITY.—This paragraph applies 
to a loan guarantee obtained by a small business
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concern under this subsection, if the small business 
concern also obtains a commercial loan. 
‘‘(C) COMMERCIAL LOAN AMOUNT.—In the case 
of any combination financing, the amount of the 
commercial loan which is part of such financing 
shall not exceed the gross amount of the loan guar-
anteed under this subsection which is part of such 
financing. 
‘‘(D) COMMERCIAL
LOAN
PROVISIONS.—The 
commercial loan obtained by the small business con-
cern— 
‘‘(i) may be made by the participating 
lender that is providing financing under this 
subsection or by a different lender; 
‘‘(ii) may be secured by a senior lien; and 
‘‘(iii) may be made by a lender in the Pre-
ferred Lenders Program, if applicable. 
‘‘(E) COMMERCIAL LOAN FEE.—A one-time fee 
in an amount equal to 0.7 percent of the amount of 
the commercial loan shall be paid by the lender to 
the Administration if the commercial loan has a sen-
ior credit position to that of the loan guaranteed 
under this subsection. Paragraph (23)(B) shall 
apply to the fee established by this paragraph.
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‘‘(F) DEFERRED
PARTICIPATION
LOAN
SECU-
RITY.—A loan guaranteed under this subsection may 
be secured by a subordinated lien. 
‘‘(G) COMPLETION
OF
APPLICATION
PROC-
ESSING.—The Administrator shall complete proc-
essing of an application for combination financing 
under this paragraph pursuant to the program au-
thorized by this subsection as it was operating on 
October 1, 2003. 
‘‘(H) 
BUSINESS
LOAN
ELIGIBILITY.—Any 
standards prescribed by the Administrator relating 
to the eligibility of small business concerns to obtain 
combination financing under this subsection which 
are in effect on the date of the enactment of this 
paragraph shall apply with respect to combination 
financings made under this paragraph. Any modi-
fications to such standards by the Administrator 
after such date shall not unreasonably restrict the 
availability of combination financing under this 
paragraph relative to the availability of such financ-
ing before such modifications.’’. 
SEC. 5. LOAN GUARANTEE FEES. 
(a) IN GENERAL.—During the period beginning on 
the date of the enactment of this section and ending on 
September 30, 2004, subparagraph (A) of paragraph (23)
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of subsection (a) of section 7 of the Small Business Act 
(15 U.S.C. 636(a)(23)(A)) shall be applied as if that sub-
paragraph consisted of the language set forth in sub-
section (b). 
(b) LANGUAGE SPECIFIED.—The language referred 
to in subsection (a) is as follows: 
‘‘(A) PERCENTAGE.— 
‘‘(i) IN GENERAL.—With respect to each 
loan guaranteed under this subsection, the Ad-
ministrator shall, in accordance with such terms 
and procedures as the Administrator shall es-
tablish by regulation, assess and collect an an-
nual fee in an amount equal to 0.5 percent of 
the outstanding balance of the deferred partici-
pation share of the loan. 
‘‘(ii) TEMPORARY PERCENTAGE.—With re-
spect to loans approved during the period be-
ginning on the date of enactment of this clause 
and ending on September 30, 2004, the annual 
fee assessed and collected under clause (i) shall 
be equal to 0.36 percent of the outstanding bal-
ance of the deferred participation share of the 
loan.’’. 
(c) RETENTION OF CERTAIN FEES.—Subparagraph 
(B) of paragraph (18) of subsection (a) of section 7 of
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the Small Business Act (15 U.S.C. 636(a)(18)(B)) shall 
not be effective during the period beginning on the date 
of the enactment of this section and ending on September 
30, 2004. 
SEC. 6. EXPRESS LOAN PROVISIONS. 
(a) DEFINITIONS.—For the purposes of this section: 
(1) The term ‘‘express lender’’ shall mean any 
lender authorized by the Administrator to partici-
pate in the Express Loan Pilot Program. 
(2) The term ‘‘Express Loan’’ shall mean any 
loan made pursuant to section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)) in which a lender 
utilizes to the maximum extent practicable its own 
loan analyses, procedures, and documentation. 
(3) The term ‘‘Express Loan Pilot Program’’ 
shall mean the program established by the Adminis-
trator prior to the date of enactment of this section 
under the authority granted in section 7(a)(25)(B) 
of the Small Business Act (15 U.S.C. 636(a)(25(B)) 
with a guaranty rate not to exceed 50 percent. 
(4) The term ‘‘Administrator’’ means the Ad-
ministrator of the Small Business Administration. 
(5) The term ‘‘small business concern’’ has the 
same meaning given such term under section 3(a) of 
the Small Business Act (15 U.S.C. 632(a)).
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(b) RESTRICTION TO EXPRESS LENDER.—The au-
thority to make an Express Loan shall be limited to those 
lenders deemed qualified to make such loans by the Ad-
ministrator. Designation as an express lender for purposes 
of making an Express Loan shall not prohibit such lender 
from taking any other action authorized by the Adminis-
trator for that lender pursuant to section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)). 
(c) GRANDFATHERING OF EXISTING LENDERS.—Any 
express lender shall retain such designation unless the Ad-
ministrator determines that the express lender has vio-
lated the law or regulations promulgated by the Adminis-
trator or modifies the requirements to be an express lender 
and the lender no longer satisfies those requirements. 
(d) TEMPORARY EXPANSION
OF EXPRESS LOAN 
PILOT PROGRAM.— 
(1) AUTHORIZATION.—As of the date of enact-
ment of this section, the maximum loan amount in 
the Express Loan Pilot Program shall be increased 
to a maximum loan amount of $2,000,000 as set 
forth in section 7(a)(3)(A) of the Small Business 
Act (15 U.S.C. 636(a)(3)(A)). 
(2) TERMINATION
DATE.—The authority set 
forth in paragraph (1) shall terminate on September 
30, 2004.
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(3) SAVINGS PROVISION.—Nothing in this sec-
tion shall be interpreted to modify or alter the au-
thority of the Administrator to continue to operate 
the Express Loan Pilot Program on or after October 
1, 2004. 
(e) OPTION TO PARTICIPATE.—Except as otherwise 
provided in this section, the Administrator shall take no 
regulatory, policy, or administrative action, without regard 
to whether such action requires notification pursuant to 
section 7(a)(24) of the Small Business Act (15 U.S.C. 
636(a)(24)), that has the effect of— 
(1) requiring a lender to make an Express Loan 
pursuant to subsection (d); 
(2) limiting or modifying any term or condition 
of deferred participation loans made under such sec-
tion (other than Express Loans) unless the Adminis-
trator imposes the same limit or modification on Ex-
press Loans; 
(3) transferring or re-allocating staff, staff re-
sponsibilities, resources, or funding, if the result of 
such transfer or re-allocation would be to increase 
the average loan processing, approval, or disburse-
ment time above the averages for those functions as 
of October 1, 2003, for loan guarantees approved
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under such section by employees of the Administra-
tion or through the Preferred Lenders Program; or 
(4) otherwise providing any incentive or dis-
incentive which encourages lenders or borrowers to 
make or obtain loans under the Express Loan Pilot 
Program instead of under the general loan authority 
of section 7(a) of the Small Business Act (15 U.S.C. 
636(a)). 
(f) COLLECTION AND REPORTING OF DATA.—For all 
loans in excess of $250,000 made pursuant to the author-
ity set forth in subsection (d)(1), the Administrator shall, 
to the extent practicable, collect data on the purpose for 
each such loan. The Administrator shall report monthly 
to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business 
of the House of Representatives on the number of such 
loans and their purposes. 
(g) TERMINATION.—Subsections (b), (c), (e), and (f) 
shall not apply after September 30, 2004. 
SEC. 7. FISCAL YEAR 2004 DEFERRED PARTICIPATION 
STANDARDS. 
Deferred participation loans made during the period 
beginning on the date of the enactment of this Act and 
ending on September 30, 2004, under section 7(a) of the 
Small Business Act (15 U.S.C. 636(a)) shall have the
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same terms and conditions (including maximum gross loan 
amounts and collateral requirements) as were applicable 
to loans made under such section on October 1, 2003, ex-
cept as otherwise provided in this Act. This section shall 
not preclude the Administrator of the Small Business Ad-
ministration from taking such action as necessary to 
maintain the loan program carried out under such section, 
subject to appropriations. 
SEC. 8. TEMPORARY INCREASE IN LOAN LIMIT UNDER 
BUSINESS LOAN AND INVESTMENT FUND AND 
IN ASSOCIATED GUARANTEE FEES. 
(a) TEMPORARY INCREASE IN AMOUNT PERMITTED 
TO BE OUTSTANDING AND COMMITTED.—During the pe-
riod beginning on the date of the enactment of this Act 
and ending on September 30, 2004, section 7(a)(3)(A) of 
the Small Business Act (15 U.S.C. 636(a)(3)(A)) shall be 
applied as if the first dollar figure were $1,500,000. 
(b) TEMPORARY GUARANTEE FEE ON DEFERRED 
PARTICIPATION SHARE OVER $1,000,000.—With respect 
to loans made during the period referred to in subsection 
(a) to which section 7(a)(18) of the Small Business Act 
(15 U.S.C. 636(a)(18)) applies, the Administrator of the 
Small Business Administration shall collect an additional 
guarantee fee equal to 0.25 percent of the amount (if any)
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by which the deferred participation share of the loan ex-
ceeds $1,000,000. 
Passed the House of Representatives March 31, 
2004. 
Attest: 
JEFF TRANDAHL, 
Clerk. 
By GERASIMOS C. VANS, 
Deputy Clerk.