SECTION 1. LEVELS OF PARTICIPATION.
Section 7(a)(2)(A) of the Small Business Act (15
U.S.C. 636(a)(2)(A)) is amended—
(1) in paragraph (i) by striking ‘‘$100,000’’
and inserting ‘‘$150,000’’; and
(2) in paragraph (ii) by striking ‘‘$100,000’’
and inserting ‘‘$150,000’’.
SEC. 2. LOAN AMOUNTS.
Section 7(a)(3)(A) of the Small Business Act (15
U.S.C. 636(a)(3)(A)) is amended by striking ‘‘$750,000,’’
and inserting, ‘‘$1,000,000 (or if the gross loan amount
would exceed $2,000,000),’’.
SEC. 3. INTEREST ON DEFAULTED LOANS.
Subparagraph (B) of section 7(a)(4) of the Small
Business Act (15 U.S.C. 636(a)(4)) is amended by adding
at the end the following:
‘‘(iii) 
APPLICABILITY.—Clauses 
(i)
and (ii) shall not apply to loans made on
or after October 1, 1999.’’.
SEC. 4. PREPAYMENT OF LOANS.
(a) IN GENERAL.—Section 7(a)(4) of the Small Busi-
ness Act (15 U.S.C. 636(a)(4)) is amended—
(1) by striking ‘‘(4) INTEREST
RATES
AND
FEES.—’’ and inserting ‘‘(4) INTEREST RATES AND
PREPAYMENT CHARGES.—’’; and
(2) by adding at the end the following:
‘‘(C) PREPAYMENT CHARGES.—
‘‘(i) IN
GENERAL.—A borrower who
prepays any loan guaranteed under this
subsection shall remit to the Administra-
tion a subsidy recoupment fee calculated in
accordance with clause (ii) if—
‘‘(I) the loan is for a term of not
less than 15 years;
‘‘(II) the prepayment is vol-
untary;
‘‘(III) the amount of prepayment
in any calendar year is more than 25
percent of the outstanding balance of
the loan; and
‘‘(IV) the prepayment is made
within the first 3 years after disburse-
ment of the loan proceeds.
‘‘(ii) SUBSIDY
RECOUPMENT
FEE.—
The subsidy recoupment fee charged under
clause (i) shall be—
‘‘(I) 5% of the amount of prepay-
ment, if the borrower prepays during
the first year after disbursement;
‘‘(II) 3% of the amount of pre-
payment, if the borrower prepays dur-
ing the 2nd year after disbursement;
and
‘‘(III) 1% of the amount of pre-
payment, if the borrower prepays dur-
ing the 3rd year after disbursement.’’.
SEC. 5. GUARANTEE FEES.
Section 7(a)(18)(B) of the Small Business Act (15
U.S.C. 636(a)(18)(B)) is amended to read as follows:
‘‘(B) EXCEPTION FOR CERTAIN LOANS.—
‘‘(i) IN
GENERAL.—Notwithstanding
subparagraph (A), if the total deferred
participation share of a loan guaranteed
under this subsection is less than or equal
to $120,000, the guarantee fee collected
under subparagraph (A) shall be in an
amount equal to 2 percent of the total de-
ferred participation share of the loan.
‘‘(ii) RETENTION OF FEES.—Lenders
participating in the programs established
under this subsection may retain not more
than 25 percent of the fee collected in ac-
cordance with this subparagraph with re-
spect to any loan not exceeding $150,000
in gross loan amount.’’.
SEC. 6. LEASE TERMS.
Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is further amended by adding at the end the fol-
lowing:
‘‘(28) LEASING.—In addition to such other
lease arrangements as may be authorized by the Ad-
ministration, a borrower may permanently lease to 1
or more tenants not more than 20 percent of any
property constructed with the proceeds of a loan
guaranteed under this subsection, if the borrower
permanently occupies and uses not less than 60 per-
cent of the total business space in the property.’’.
Union Calendar No. 167
106TH CONGRESS
1ST SESSION
H. R. 2615
[Report No. 106–279]
A BILL
To amend the Small Business Act to make im-
provements to the general business loan program,
and for other purposes.
AUGUST 2, 1999
Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed