I 
115TH CONGRESS 
2D SESSION 
H. R. 7186 
To amend the Small Business Act to modify the upfront guarantee fees 
for certain 7(a) loans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 28, 2018 
Mr. VEASEY (for himself, Mr. BROWN of Maryland, Ms. JACKSON LEE, Mr. 
THOMPSON of Mississippi, Mr. TAKANO, Mr. GONZALEZ of Texas, Mr. 
GRIJALVA, Mr. CORREA, Mr. SIRES, Mrs. NAPOLITANO, Ms. CLARKE of 
New York, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. RASKIN, Mr. 
COHEN, Ms. NORTON, and Ms. WILSON of Florida) introduced the fol-
lowing bill; which was referred to the Committee on Small Business 
A BILL 
To amend the Small Business Act to modify the upfront 
guarantee fees for certain 7(a) loans, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Diverse Small Business 
Empowerment Act’’. 
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SEC. 2. MODIFICATIONS TO UPFRONT GUARANTEE FEES 
FOR CERTAIN 7(a) LOANS. 
(a) GUARANTEE FEES FOR CERTAIN 7(a) LOANS.— 
Section 7(a)(18) of the Small Business Act (15 U.S.C. 
636(a)(18)) is amended— 
(1) in subparagraph (A), by striking ‘‘With’’ 
and inserting ‘‘Except as provided in subparagraph 
(C), and with’’; 
(2) in subparagraph (B), by inserting ‘‘or 
(C)(ii)’’ after ‘‘subparagraph (A)(i)’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) FEES FOR CERTAIN SMALL BUSINESS 
CONCERNS.— 
‘‘(i) GUARANTEE FEE WAIVER.—The 
Administrator may not collect a guarantee 
fee described in subparagraph (A) in con-
nection 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 con-
trolled by veterans, small business concern 
owned and controlled by socially and eco-
nomically disadvantaged individuals, or 
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small business concern owned and con-
trolled 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 con-
cern owned and controlled by veterans, 
small business concern owned and con-
trolled by socially and economically dis-
advantaged individuals, or small business 
concern owned and controlled by women, 
the Administration shall collect a guar-
antee 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 subpara-
graph: 
‘‘(I) SMALL BUSINESS CONCERN 
OWNED
AND
CONTROLLED
BY
SO-
CIALLY
AND
ECONOMICALLY
DIS-
ADVANTAGED
INDIVIDUALS.—The 
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term ‘small business concern owned 
and controlled by socially and eco-
nomically disadvantaged individuals’ 
has the meaning given in section 
8(d)(3)(C). 
‘‘(II) SMALL BUSINESS CONCERN 
OWNED
AND
CONTROLLED
BY
VET-
ERANS.—The term ‘small business 
concern owned and controlled by vet-
erans’ has the meaning given in sec-
tion 3(q). 
‘‘(III) SMALL
BUSINESS
CON-
CERN OWNED AND CONTROLLED BY 
WOMEN.—The term ‘small business 
concern owned and controlled by 
women’ has the meaning given in sec-
tion 3(n).’’. 
(b) SBA EXPRESS LOAN GUARANTEE FEE WAIV-
ER.—Section 7(a)(31) of the Small Business Act (15 
U.S.C. 636(a)(31)) is amended by adding at the end the 
following new subparagraph: 
‘‘(I) GUARANTEE FEE WAIVER FOR CER-
TAIN SMALL BUSINESS CONCERNS.— 
‘‘(i) GUARANTEE FEE WAIVER.—The 
Administrator may not collect a guarantee 
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fee described in paragraph (18) in connec-
tion with a loan made under this para-
graph to a small business concern owned 
and controlled by socially and economically 
disadvantaged individuals or a small busi-
ness concern owned and controlled by 
women on or after the date of the enact-
ment of this subparagraph. 
‘‘(ii) EXCEPTION.—If the President’s 
budget for the upcoming fiscal year, sub-
mitted 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 subpara-
graph: 
‘‘(I) SMALL BUSINESS CONCERN 
OWNED
AND
CONTROLLED
BY
SO-
CIALLY
AND
ECONOMICALLY
DIS-
ADVANTAGED
INDIVIDUALS.—The 
term ‘small business concern owned 
and controlled by socially and eco-
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nomically disadvantaged individuals’ 
has the meaning given in section 
8(d)(3)(C). 
‘‘(II) SMALL BUSINESS CONCERN 
OWNED
AND
CONTROLLED
BY 
WOMEN.—The term ‘small business 
concern owned and controlled by 
women’ has the meaning given in sec-
tion 3(n).’’. 
Æ 
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