I 
108TH CONGRESS 
2D SESSION 
H. R. 5108 
To reauthorize certain programs of the Small Business Administration, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 21, 2004 
Mr. MANZULLO introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To reauthorize certain programs of the Small Business 
Administration, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Reauthorization and Manufacturing As-
sistance Act of 2004’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—SMALL MANUFACTURERS ASSISTANCE 
Sec. 101. Combination financing.
assess and collect an annual fee in an amount equal 
to 0.36 percent of the outstanding balance of the de-
ferred participation share of the loan.’’. 
(b) GUARANTEE FEES.—Paragraph (18) of sub-
section (a) of section 7 of the Small Business Act (15 
U.S.C. 636(a)(18) is amended to read as follows: 
‘‘(18) GUARANTEE FEES.—With respect to each 
loan guaranteed under this subsection (other than a 
loan that is repayable in 1 year or less), the Admin-
istration shall collect a guarantee fee, which shall be 
payable by the participating lender, and may be 
charged to the borrower, as follows: 
‘‘(A) A guarantee fee equal to 1 percent of 
the deferred participation share of a total loan 
amount that is not more than $150,000. 
‘‘(B) A guarantee fee equal to 2.5 percent 
of the deferred participation share of a total 
loan amount that is more than $150,000, but 
not more than $700,000. 
‘‘(C) A guarantee fee equal to 3.5 percent 
of the deferred participation share of a total 
loan amount that is more than $700,000. 
‘‘(D) In addition to the fee under subpara-
graph (C), a guarantee fee equal to 0.25 per-
cent of the amount, if any, by which the de-
ferred participation share of the loan exceeds 
$1,000,000.’’. 
SEC. 103. EXPRESS LOANS. 
(a) IN GENERAL.—Section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)), as amended by section 101, 
is further amended by adding at the end the following new 
paragraph: 
‘‘(32) EXPRESS LOANS.— 
‘‘(A) DEFINITIONS.—As used in this para-
graph: 
‘‘(i) The term ‘express lender’ means 
any lender authorized by the Administrator 
to participate in the Express Loan Pro-
gram. 
‘‘(ii) The term ‘express loan’ means 
any loan made pursuant to this paragraph 
in which a lender utilizes to the maximum 
extent practicable its own loan analyses, 
procedures, and documentation. 
‘‘(iii) The term ‘Express Loan Pro-
gram’ means the program for express loans 
established by the Administrator under 
paragraph (25)(B), as in existence on 
April 5, 2004, with a guaranty rate of not 
more than 50 percent.
‘‘(B) RESTRICTION
TO
EXPRESS
LEND-
ER.—The authority to make an express loan 
shall be limited to those lenders deemed quali-
fied to make such loans by the Administrator. 
Designation as an express lender for purposes 
of making an express loan shall not prohibit 
such lender from taking any other action au-
thorized by the Administrator for that lender 
pursuant to this subsection. 
‘‘(C) 
GRANDFATHERING
OF
EXISTING 
LENDERS.—Any express lender shall retain 
such designation unless the Administrator de-
termines that the express lender has violated 
the law or regulations promulgated by the Ad-
ministrator or modifies the requirements to be 
an express lender and the lender no longer sat-
isfies those requirements. 
‘‘(D) MAXIMUM LOAN AMOUNT.—The max-
imum loan amount under the Express Loan 
Program is $2,000,000. 
‘‘(E) OPTION TO PARTICIPATE.—Except as 
otherwise provided in this paragraph, the Ad-
ministrator shall take no regulatory, policy, or 
administrative action, without regard to wheth-
er such action requires notification pursuant to 
paragraph (24), that has the effect of— 
‘‘(i) requiring a lender to make an ex-
press loan pursuant to subparagraph (D); 
‘‘(ii) limiting or modifying any term 
or condition of deferred participation loans 
made under this subsection (other than ex-
press loans) unless the Administrator im-
poses the same limit or modification on ex-
press loans; 
‘‘(iii) transferring or re-allocating 
staff, staff responsibilities, resources, or 
funding, if the result of such transfer or 
re-allocation would be to increase the aver-
age loan processing, approval, or disburse-
ment time above the averages for those 
functions as of October 1, 2003, for loan 
guarantees approved under this subsection 
by employees of the Administration or 
through the Preferred Lenders Program; 
or 
‘‘(iv) otherwise providing any incentive 
or disincentive which encourages lenders or 
borrowers to make or obtain loans under 
the Express Loan Program instead of
under the general loan authority of this 
subsection. 
‘‘(F) COLLECTION
AND
REPORTING
OF 
DATA.—For all loans in excess of $250,000 
made pursuant to the authority set forth in 
subparagraph (D), the Administrator shall, to 
the extent practicable, collect data on the pur-
pose for each such loan. The Administrator 
shall report monthly to the Committee on Small 
Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the 
House of Representatives on the number of 
such loans and their purposes.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2004. 
SEC. 104. DEFERRED PARTICIPATION LOAN STANDARDS. 
(a) IN GENERAL.—Section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)), as amended by section 101 
and section 103, is further amended by adding at the end 
the following new paragraph: 
‘‘(33) DEFERRED PARTICIPATION LOAN STAND-
ARDS.—Deferred participation loans made on or 
after October 1, 2004, under this subsection shall 
have the same terms and conditions (including max-
imum gross loan amounts and collateral require-
ments) as were applicable to loans made under this 
subsection on October 1, 2003, except as otherwise 
provided in paragraph (18)(D), paragraph (31), or 
paragraph (32) and subject to the $1,500,000 limi-
tation on the total amount outstanding and com-
mitted in paragraph (3)(A), as in effect on October 
1, 2004. This paragraph shall not preclude the Ad-
ministrator from taking such action as necessary to 
maintain the loan program carried out under this 
subsection, subject to appropriations.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2004. 
SEC. 105. INCREASE IN GUARANTEE AMOUNT AND INSTITU-
TION OF ASSOCIATED FEE. 
(a) INCREASE IN AMOUNT PERMITTED TO BE OUT-
STANDING AND COMMITTED.—Section 7(a)(3)(A) of the 
Small Business Act (15 U.S.C. 636(a)(3)(A)) is amended 
by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2004. 
SEC. 106. DEBENTURE SIZE. 
Section 502(2) of the Small Business Investment Act 
of 1958 (15 U.S.C. 696(2)) is amended to read as follows: 
‘‘(2) MAXIMUM AMOUNT.—
‘‘(A) IN GENERAL.—Loans made by the 
Administration under this section shall be lim-
ited to— 
‘‘(i) $1,500,000 for each small busi-
ness concern if the loan proceeds will not 
be directed toward a goal or project de-
scribed in subparagraph (B) or (C); 
‘‘(ii) $2,000,000 for each small busi-
ness concern if the loan proceeds will be di-
rected toward 1 or more of the public pol-
icy 
goals 
described 
under 
section 
501(d)(3); and 
‘‘(iii) $4,000,000 for each project of a 
small manufacturer. 
‘‘(B) DEFINITION.—As used in this para-
graph, the term ‘small manufacturer’ means a 
small business concern— 
‘‘(i) the primary business of which is 
classified in sector 31, 32, or 33 of the 
North American Industrial Classification 
System; and 
‘‘(ii) all of the production facilities of 
which are located in the United States.’’.
SEC. 107. JOB REQUIREMENTS. 
Section 501 of the Small Business Investment Act 
of 1958 (15 U.S.C. 695) is amended by adding at the end 
the following new subsection: 
‘‘(e)(1) A project meets the objective set forth in sub-
section (d)(1) if the project creates or retains one job for 
every $50,000 guaranteed by the Administration, except 
that the amount is $100,000 in the case of a project of 
a small manufacturer. 
‘‘(2) Paragraph (1) does not apply to a project for 
which eligibility is based on the objectives set forth in 
paragraph (2) or (3) of subsection (d), if the development 
company’s portfolio of outstanding debentures creates or 
retains one job for every $50,000 guaranteed by the Ad-
ministration. 
‘‘(3) For projects in Alaska, Hawaii, State-designated 
enterprise zones, empowerment zones and enterprise com-
munities, labor surplus areas, as determined by the Sec-
retary of Labor, and for other areas designated by the 
Administrator, the development company’s portfolio may 
average not more than $75,000 per job created or re-
tained. 
‘‘(4) Loans for projects of small manufacturers shall 
be excluded from calculations under paragraph (2) or (3).
‘‘(5) Under regulations prescribed by the Adminis-
trator, the Administrator may waive any requirement of 
this subsection (other than paragraph (4)). 
‘‘(6) As used in this subsection, the term ‘small man-
ufacturer’ means a small business concern— 
‘‘(A) the primary business of which is classified 
in sector 31, 32, or 33 of the North American In-
dustrial Classification System; and 
‘‘(B) all of the production facilities of which are 
located in the United States.’’. 
SEC. 108. REPORT REGARDING NATIONAL DATABASE OF 
SMALL MANUFACTURERS. 
(a) STUDY
AND REPORT.—The Administrator, in 
consultation with the association of small business devel-
opment centers authorized by section 21(k) of the Small 
Business Act (15 U.S.C. 648(k)), shall— 
(1) study the feasibility of creating a national 
database of small manufacturers that institutions of 
higher education could access for purposes of meet-
ing procurement needs; and 
(2) not later than one year after the date of the 
enactment of this Act, transmit a report to the Con-
gress regarding the findings and conclusions of such 
study.
(b) COST ESTIMATE.—The report referred to in sub-
section (a)(2) shall include an estimate of the cost of cre-
ating and maintaining the database described in sub-
section (a)(1). 
(c) DEFINITION.—As used in this section, the term 
‘‘small manufacturer’’ means a small business concern — 
(1) the primary business of which is classified 
in sector 31, 32, or 33 of the North American In-
dustrial Classification System; and 
(2) all of the production facilities of which are 
located in the United States. 
SEC. 109. INTERNATIONAL TRADE. 
(a) IN GENERAL.—Section 7(a)(16) of the Small 
Business Act (15 U.S.C. 636(a)(16)) is amended to read 
as follows: 
‘‘(16) INTERNATIONAL TRADE.— 
‘‘(A) IN GENERAL.—If the Administrator 
determines that a loan guaranteed under this 
subsection will allow an eligible small business 
concern that is engaged in or adversely affected 
by international trade to improve its competi-
tive position, the Administrator may make such 
loan to assist such concern in— 
‘‘(i) the financing of the acquisition, 
construction, renovation, modernization,
improvement, or expansion of productive 
facilities or equipment to be used in the 
United States in the production of goods 
and services involved in international 
trade; or 
‘‘(ii) the refinancing of existing in-
debtedness that is not structured with rea-
sonable terms and conditions. 
‘‘(B) SECURITY.—Each loan made under 
this paragraph shall be secured by a first lien 
position or first mortgage on the property or 
equipment financed by the loan or on other as-
sets of the small business concern. 
‘‘(C) 
ENGAGED
IN
INTERNATIONAL 
TRADE.—For purposes of this paragraph, a 
small business concern is engaged in inter-
national trade if, as determined by the Adminis-
trator, the small business concern is in a posi-
tion to expand existing export markets or de-
velop new export markets. 
‘‘(D) ADVERSELY
AFFECTED
BY
INTER-
NATIONAL TRADE.—For purposes of this para-
graph, a small business concern is adversely af-
fected by international trade if, as determined
by the Administrator, the small business con-
cern— 
‘‘(i) is confronting increased competi-
tion with foreign firms in the relevant mar-
ket; and 
‘‘(ii) is injured by such competition. 
‘‘(E) FINDINGS
BY
CERTAIN
FEDERAL 
AGENCIES.—For purposes of subparagraph 
(D)(ii) the Administrator shall accept any find-
ing of injury by the International Trade Com-
mission or any finding of injury by the Sec-
retary of Commerce pursuant to chapter 3 of 
title II of the Trade Act of 1974.’’. 
(b) LIMITATION INCREASE.—Section 7(a)(3)(B) of 
the Small Business Act (15 U.S.C. 636(a)(3)(B)) is 
amended— 
(1) by striking ‘‘1,250,000’’ and inserting 
‘‘1,750,000’’; and 
(2) by striking ‘‘$750,000’’ and inserting 
‘‘$1,250,000’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2004.
TITLE II—AUTHORIZATIONS 
Subtitle A—Program Authorization 
Levels and Additional Reauthor-
izations 
SEC. 201. PROGRAM AUTHORIZATION LEVELS. 
Section 20 of the Small Business Act (15 U.S.C. 631 
note) is amended— 
(1) in subparagraph (D) and subparagraph (E) 
of paragraph (1) of subsection (a), by striking ‘‘cer-
tification’’ and inserting ‘‘accreditation’’; and 
(2) by striking subsections (c) through (i) and 
inserting the following new subsections: 
‘‘(c) DISASTER MITIGATION PILOT PROGRAM.—The 
following program levels are authorized for loans under 
section 7(b)(1)(C): 
‘‘(1) $15,000,000 for fiscal year 2005. 
‘‘(2) $15,000,000 for fiscal year 2006. 
‘‘(d) FISCAL YEAR 2005.— 
‘‘(1) PROGRAM
LEVELS.—The following pro-
gram levels are authorized for fiscal year 2005: 
‘‘(A) For the programs authorized by this 
Act, the Administration is authorized to 
make—
‘‘(i) $75,000,000 in technical assist-
ance grants, as provided in section 7(m); 
and 
‘‘(ii) $105,000,000 in direct loans, as 
provided in 7(m). 
‘‘(B) For the programs authorized by this 
Act, the Administration is authorized to make 
$23,050,000,000 in deferred participation loans 
and other financings. Of such sum, the Admin-
istration is authorized to make— 
‘‘(i) $16,500,000,000 in general busi-
ness loans, as provided in section 7(a); 
‘‘(ii) $6,000,000,000 in certified de-
velopment company financings, as provided 
in section 7(a)(13) and as provided in sec-
tion 504 of the Small Business Investment 
Act of 1958; 
‘‘(iii) $500,000,000 in loans, as pro-
vided in section 7(a)(21); and 
‘‘(iv) $50,000,000 in loans, as pro-
vided in section 7(m). 
‘‘(C) For the programs authorized by title 
III of the Small Business Investment Act of 
1958, the Administration is authorized to 
make—
‘‘(i) $4,250,000,000 in purchases of 
participating securities; and 
‘‘(ii) $3,250,000,000 in guarantees of 
debentures. 
‘‘(D) 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 
$6,000,000,000, of which not more than 50 
percent may be in bonds approved pursuant to 
section 411(a)(3) of that Act. 
‘‘(E) The Administration is authorized to 
make grants or enter into cooperative agree-
ments for a total amount of $7,000,000 for the 
Service Corps of Retired Executives program 
authorized by section 8(b)(1). 
‘‘(2) ADDITIONAL AUTHORIZATIONS.— 
‘‘(A) There are authorized to be appro-
priated to the Administration for fiscal year 
2005 such sums as may be necessary to carry 
out the provisions of this Act not elsewhere pro-
vided for, including administrative expenses and 
necessary loan capital for disaster loans pursu-
ant to section 7(b), and to carry out title IV of 
the Small Business Investment Act of 1958, in-
cluding salaries and expenses of the Adminis-
tration. 
‘‘(B) Notwithstanding any other provision 
of this paragraph, for fiscal year 2005— 
‘‘(i) no funds are authorized to be 
used as loan capital for the loan program 
authorized by section 7(a)(21) except by 
transfer from another Federal department 
or agency to the Administration, unless the 
program level authorized for general busi-
ness loans under paragraph (1)(B)(i) is 
fully funded; and 
‘‘(ii) the Administration may not ap-
prove loans on its own behalf or on behalf 
of any other Federal department or agen-
cy, by contract or otherwise, under terms 
and conditions other than those specifically 
authorized under this Act or the Small 
Business Investment Act of 1958, except 
that it may approve loans under section 
7(a)(21) of this Act in gross amounts of 
not more than $2,000,000. 
‘‘(e) FISCAL YEAR 2006.— 
‘‘(1) PROGRAM
LEVELS.—The following pro-
gram levels are authorized for fiscal year 2006:
‘‘(A) For the programs authorized by this 
Act, the Administration is authorized to 
make— 
‘‘(i) $80,000,000 in technical assist-
ance grants, as provided in section 7(m); 
and 
‘‘(ii) $110,000,000 in direct loans, as 
provided in 7(m). 
‘‘(B) For the programs authorized by this 
Act, the Administration is authorized to make 
$25,050,000,000 in deferred participation loans 
and other financings. Of such sum, the Admin-
istration is authorized to make— 
‘‘(i) $17,000,000,000 in general busi-
ness loans, as provided in section 7(a); 
‘‘(ii) $7,500,000,000 in certified de-
velopment company financings, as provided 
in section 7(a)(13) and as provided in sec-
tion 504 of the Small Business Investment 
Act of 1958; 
‘‘(iii) $500,000,000 in loans, as pro-
vided in section 7(a)(21); and 
‘‘(iv) $50,000,000 in loans, as pro-
vided in section 7(m).