H. R. 4818—636
has the meaning given that term in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a).’’;
(3) in subparagraph (B), by striking ‘‘annual’’ and inserting
‘‘yearly’’; and
(4) by adding at the end the following:
‘‘(C) LOWERING OF BORROWER FEES.—If the Administra-
tion determines that fees paid by lenders and by small
business borrowers for guarantees under this subsection
may be reduced, consistent with reducing to zero the cost
to the Administration of making such guarantees—
‘‘(i) the Administration shall first consider reducing
fees paid by small business borrowers under clauses
(i) through (iii) of paragraph (18)(A), to the maximum
extent possible; and
‘‘(ii) fees paid by small business borrowers shall
not be increased above the levels in effect on the date
of enactment of this subparagraph.’’.
SEC. 103. INCREASE IN GUARANTEE AMOUNT AND INSTITUTION OF
ASSOCIATED FEE.
(a) INCREASE IN AMOUNT PERMITTED TO BE OUTSTANDING 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 the date of enactment of this Act.
SEC. 104. 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 limited to—
‘‘(i) $1,500,000 for each small business concern
if the loan proceeds will not be directed toward a
goal or project described in subparagraph (B) or (C);
‘‘(ii) $2,000,000 for each small business concern
if the loan proceeds will be directed toward 1 or more
of the public policy goals described under section
501(d)(3); and
‘‘(iii) $4,000,000 for each project of a small manu-
facturer.
‘‘(B) DEFINITION.—As used in this paragraph, 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. 105. 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:
‘‘(e)(1) A project meets the objective set forth in subsection
(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.
H. R. 4818—637
‘‘(2) Paragraph (1) does not apply to a project for which eligi-
bility is based on the objectives set forth in paragraph (2) or (3)
of subsection (d), if the development company’s portfolio of out-
standing debentures creates or retains one job for every $50,000
guaranteed by the Administration.
‘‘(3) For projects in Alaska, Hawaii, State-designated enterprise
zones, empowerment zones and enterprise communities, labor sur-
plus areas, as determined by the Secretary 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
retained.
‘‘(4) Loans for projects of small manufacturers shall be excluded
from calculations under paragraph (2) or (3).
‘‘(5) Under regulations prescribed by the Administrator, the
Administrator may waive, on a case-by-case basis or by regulation,
any requirement of this subsection (other than paragraph (4)).
With respect to any waiver the Administrator is prohibited from
adopting a dollar amount that is lower than the amounts set forth
in paragraphs (1), (2), and (3).
‘‘(6) As used in this subsection, the term ‘small manufacturer’
means a small business concern—
‘‘(A) the primary business of which is classified in sector
31, 32, or 33 of the North American Industrial Classification
System; and
‘‘(B) all of the production facilities of which are located
in the United States.’’.
SEC. 106. REPORT REGARDING NATIONAL DATABASE OF SMALL MANU-
FACTURERS.
(a) STUDY AND REPORT.—The Administrator, in consultation
with the Association of Small Business Development 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 meeting procurement needs; and
(2) not later than 1 year after the date of enactment of
this Act, submit a report to the Congress regarding the findings
and conclusions of such study.
(b) COST ESTIMATE.—The report referred to in subsection (a)(2)
shall include an estimate of the cost of creating and maintaining
the database described in subsection (a)(1).
(c) DEFINITION.—As used in this section, the term ‘‘small manu-
facturer’’ means a small business concern—
(1) the primary business of which is classified in sector
31, 32, or 33 of the North American Industrial Classification
System; and
(2) all of the production facilities of which are located
in the United States.
SEC. 107. 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
H. R. 4818—638
competitive 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 serv-
ices involved in international trade; or
‘‘(ii) the refinancing of existing indebtedness that
is not structured with reasonable 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 assets of the small business concern.
‘‘(C) ENGAGED IN INTERNATIONAL TRADE.—For purposes
of this paragraph, a small business concern is engaged
in international trade if, as determined by the Adminis-
trator, the small business concern is in a position to expand
existing export markets or develop new export markets.
‘‘(D) ADVERSELY AFFECTED BY INTERNATIONAL TRADE.—
For purposes of this paragraph, a small business concern
is adversely affected by international trade if, as deter-
mined by the Administrator, the small business concern—
‘‘(i) is confronting increased competition with for-
eign firms in the relevant market; and
‘‘(ii) is injured by such competition.
‘‘(E) FINDINGS
BY
CERTAIN
FEDERAL
AGENCIES.—For
purposes of subparagraph (D)(ii) the Administrator shall
accept any finding of injury by the International Trade
Commission or any finding of injury by the Secretary 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 Busi-
ness 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 the date of enactment of this Act.
Subtitle B—Authorizations
CHAPTER 1—PROGRAM AUTHORIZATION LEVELS AND
ADDITIONAL REAUTHORIZATIONS
SEC. 121. PROGRAM AUTHORIZATION LEVELS.
Section 20 of the Small Business Act (15 U.S.C. 631 note)
is amended—
(1) in subsection (a)(1), by striking ‘‘certification’’ each place
it appears in subparagraphs (D) and (E) and inserting ‘‘accredi-
tation’’; and
(2) by striking subsections (c) through (i) and inserting
the following:
‘‘(c) DISASTER MITIGATION PILOT PROGRAM.—The following pro-
gram 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.—
H. R. 4818—639
‘‘(1) PROGRAM LEVELS.—The following program 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 assistance 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 Administration is authorized to make—
‘‘(i) $16,500,000,000 in general business loans, as
provided in section 7(a);
‘‘(ii) $6,000,000,000 in certified development com-
pany financings, as provided in section 7(a)(13) and
as provided in section 504 of the Small Business Invest-
ment Act of 1958;
‘‘(iii) $500,000,000 in loans, as provided in section
7(a)(21); and
‘‘(iv) $50,000,000 in loans, as provided 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 agreements 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 appropriated to the
Administration for fiscal year 2005 such sums as may
be necessary to carry out the provisions of this Act not
elsewhere provided for, including administrative expenses
and necessary loan capital for disaster loans pursuant to
section 7(b), and to carry out the Small Business Invest-
ment Act of 1958, including salaries and expenses of the
Administration.
‘‘(B) Notwithstanding any other provision of this para-
graph, 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 business loans
under paragraph (1)(B)(i) is fully funded; and
‘‘(ii) the Administration may not approve loans
on its own behalf or on behalf of any other Federal