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104TH CONGRESS
2D SESSION
H. R. 3989
To amend the Small Business Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 1996
Mr. LAFALCE introduced the following bill; which was referred to the
Committee on Small Business
A BILL
To amend the Small Business Act, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. 7(a) LOAN GUARANTEE FEES.
(a) FEES.—Section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) is amended by striking from para-
graph (23) ‘‘0.5 percent’’ and by inserting in lieu thereof
‘‘0.5835 percent’’.
(b) APPLICATION.—The fee increase authorized by
this section shall be applicable to loan guarantees ap-
proved on or after October 1, 1996, and shall not apply
to any loan approved on or after October 1, 1997.
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SEC. 2. AMENDMENT TO SMALL BUSINESS GUARANTEED
CREDIT ENHANCEMENT ACT OF 1993.
Section 7 of the Small Business Guaranteed Credit
Enhancement Act of 1993 (Public Law 103–81; 15 U.S.C.
634 note) is amended by striking ‘‘1996’’ and by inserting
in lieu thereof ‘‘1997’’.
SEC. 3. DEVELOPMENT COMPANY PROGRAM FEES.
(a) BORROWER FEES.—Section 503(b)(7)(A) (15
U.S.C. 697(b)(7)(A)) is amended by striking ‘‘0.125 per-
cent’’ and by inserting ‘‘0.9375 percent’’.
(b) LENDER FEES.—Section 503(d) of the Small
Business Investment Act of 1958 (15 U.S.C. 697(d)) is
amended to read as follows:
‘‘(d)(1) The Administration may impose an additional
charge for administrative expenses with respect to each
debenture for which payment of principal and interest is
guaranteed under subsection (a).
‘‘(2) The Administration shall also impose a one-time
fee of 50 basis points on the total participation in any
project by a bank or other financial institution which pro-
vides funding for part of the cost of the project as provided
in section 502(3) of this Act.
‘‘(3) The Administration shall collect annually from
each development company a fee of 0.125 percent of the
outstanding principal balance of any guaranteed deben-
ture authorized by the Administration. Such fee shall be
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derived from the servicing fees collected by the develop-
ment company pursuant to regulation, and shall not be
derived from any additional fees imposed on small busi-
ness concerns.’’.
(c) APPLICATION.—The fees authorized by this sec-
tion shall apply to financings approved by the Administra-
tion on or after October 1, 1996, but shall not apply to
financings approved by the Administration on or after Oc-
tober 1, 1997.
SEC. 4. SMALL BUSINESS INVESTMENT COMPANY PRO-
GRAM.
(a) Fees.—Section 303 of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 683) is amended—
(1) in subsection (b), in the fifth sentence, by
striking ‘‘1 per centum,’’ and all that follows before
the period at the end of the sentence and inserting
the following: ‘‘1 percent, plus an additional charge
of 1 percent per annum which shall be paid to and
retained by the Administration’’;
(2) in subsection (g)(2), by striking ‘‘1 per cen-
tum,’’ and all that follows before the period at the
end of the paragraph and inserting the following: ‘‘1
percent, plus an additional charge of 1 percent per
annum which shall be paid to and retained by the
Administration’’; and
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(3) by adding at the end the following new sub-
section:
‘‘(i) With respect to leverage granted by the Adminis-
tration to a licensee, the Administration shall collect from
the licensee a nonrefundable fee in an amount equal to
3 percent of the face amount of leverage granted to the
licensee, payable upon the earlier of the date of entry into
any commitment for such leverage or the date on which
the leverage is drawn by the licensee.’’.
(b) APPLICATION.—The amendments made by this
section shall be effective as to leverage approved on or
after October 1, 1996, and shall cease to be effective for
financings approved on or after October 1, 1997.
SEC. 5. SBIC AUTHORIZATIONS.
Section 20(p)(3) of the Small Business Act (15
U.S.C. 631 note) is amended—
(1) by striking paragraph (A) and by redesig-
nating paragraphs (B) and (C) as (A) and (B); and
(2) by striking from paragraph (A), as redesig-
nated by this section, ‘‘of which $48,000,000 is au-
thorized in guarantees of debentures from companies
operating pursuant to section 301(d) of such Act’’.
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SEC. 6. REPEALER.
Sections 1, 3, and 4 of this Act are repealed October
1, 1997.
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