HR 2615 RFS
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:
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‘‘(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 percent of the amount of
prepayment, if the borrower prepays
during the first year after disburse-
ment;
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‘‘(II) 3 percent of the amount of
prepayment, if the borrower prepays
during the second year after disburse-
ment; and
‘‘(III) 1 percent of the amount of
prepayment, if the borrower prepays
during the third year after disburse-
ment.’’.
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-
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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
one 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.’’.
Passed the House of Representatives August 2,
1999.
Attest:
JEFF TRANDAHL,
Clerk.
By MARTHA C. MORRISON,
Deputy Clerk.