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Act of 1993 (Public Law 103–81; 15 U.S.C. 631 note)
is amended by striking the item relating to section 7.
SEC. 110. 1998 AUTHORIZATIONS.
Section 20 (15 U.S.C. 631 note) is amended—
(1) in subsection (p), by striking ‘‘authorized
for fiscal year 1997’’ and inserting ‘‘authorized for
each of fiscal years 1997 and 1998’’;
(2) by striking subsection (p)(3)(B) and by in-
serting the following:
‘‘(B) $268,000,000 in guarantees of de-
bentures; and’’;
(3) in subsection (q)(1) by striking ‘‘fiscal year
1997’’ and inserting ‘‘each of fiscal years 1997 and
1998’’; and
(4) in subsection (q)(2) by striking ‘‘year 1997’’
and inserting ‘‘years 1997 and 1998’’.
SEC. 111. LEVEL OF PARTICIPATION FOR EXPORT WORK-
ING CAPITAL LOANS.
Section 7(a)(2) (15 U.S.C. 636(a)(2)) is amended by
adding at the end the following:
‘‘(D) 
PARTICIPATION
UNDER
EXPORT
WORKING CAPITAL PROGRAM.—Notwithstanding
subparagraph (A), in an agreement to partici-
pate in a loan on a deferred basis under the
Export Working Capital Program established
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pursuant to paragraph (14)(A), such participa-
tion by the Administration shall be equal to the
rate specified under this paragraph as in effect
on the day before the date of the enactment of
the Small Business Lending Enhancement Act
of 1995.’’.
TITLE 
II—AMENDMENTS 
TO
SMALL 
BUSINESS 
INVEST-
MENT ACT
SEC. 201. REFERENCES.
Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 661 et seq.).
SEC. 202. MODIFICATIONS TO DEVELOPMENT COMPANY
DEBENTURE PROGRAM.
(a) DECREASED LOAN TO VALUE RATIOS.—Section
502(3) (15 U.S.C. 696(3)) is amended to read as follows:
‘‘(3) CRITERIA FOR ASSISTANCE.—
‘‘(A) IN GENERAL.—Any development com-
pany assisted under this section or section 503
of this title must meet the criteria established
by the Administration, including the extent of
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participation to be required or amount of paid-
in capital to be used in each instance as is de-
termined to be reasonable by the Administra-
tion.
‘‘(B) COMMUNITY INJECTION FUNDS.—
‘‘(i) SOURCES
OF
FUNDS.—Commu-
nity injection funds may be derived, in
whole or in part, from—
‘‘(I) State or local governments;
‘‘(II) banks or other financial in-
stitutions;
‘‘(III) foundations or other not-
for-profit institutions; or
‘‘(IV) the small business concern
(or its owners, stockholders, or affili-
ates) receiving assistance through a
body authorized by this title.
‘‘(ii) 
FUNDING
FROM
INSTITU-
TIONS.—Not less than 50 percent of the
total cost of any project financed pursuant
to clauses (i), (ii), or (iii) of subparagraph
(C) shall come from the institutions de-
scribed in subclauses (I), (II), and (III) of
clause (i).
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‘‘(C) FUNDING FROM A SMALL BUSINESS
CONCERN.—The small business concern (or its
owners, stockholders, or affiliates) receiving as-
sistance through a body authorized by this title
shall provide—
‘‘(i) at least 15 percent of the total
cost of the project financed, if the small
business concern has been in operation for
a period of 2 years or less;
‘‘(ii) at least 15 percent of the total
cost of the project financed if the project
involves the construction of a limited or
single purpose building or structure;
‘‘(iii) at least 20 percent of the total
cost of the project financed if the project
involves both of the conditions set forth in
clauses (i) and (ii); or
‘‘(iv) at least 10 percent of the total
cost of the project financed, in all other
circumstances, at the discretion of the de-
velopment company.’’.
(b) GUARANTEE FEE FOR DEVELOPMENT COMPANY
DEBENTURES.—Section 
503(b)(7)(A) 
(15 
U.S.C.
697(b)(7)(A)) is amended by striking ‘‘0.125 percent’’ and
inserting ‘‘0.9375 percent’’.
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(c) FEES TO OFFSET SUBSIDY COST.—Section
503(d) (15 U.S.C. 697(d)) is amended to read as follows:
‘‘(d) CHARGES FOR ADMINISTRATION EXPENSES.—
‘‘(1) LEVEL OF CHARGES.—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) PARTICIPATION FEE.—The Administration
shall also impose a one-time fee of 50 basis points
on the total participation in any project of any insti-
tution described in subclause (I), (II), or (III) of
section 502(3)(B)(i). Such fee shall be imposed only
when the participation of the institution will occupy
a senior credit position to that of the development
company. Such fee shall be collected by the develop-
ment company, forwarded to the Administration,
and used to offset the cost (as such term is defined
in section 502 of the Credit Reform Act of 1990) to
the Administration of making guarantees under sub-
section (a).
‘‘(3) DEVELOPMENT COMPANY FEE.—The Ad-
ministration shall collect annually from each devel-
opment company a fee of 0.125 percent of the out-
standing principal balance of any guaranteed deben-
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ture authorized by the Administration after Septem-
ber 30, 1996. Such fee shall be derived from the
servicing fees collected by the development company
pursuant to regulation, and shall not be derived
from any additional fees imposed on small business
concerns. All proceeds of the fee shall be used to off-
set the cost (as such term is defined in section 502
of the Credit Reform Act of 1990) to the Adminis-
tration of making guarantees under subsection (a).’’.
(d) EFFECTIVE DATE.—Section 503 (15 U.S.C. 697)
is amended by adding at the end the following:
‘‘(f) EFFECTIVE DATE.—The fees authorized by sub-
sections (b) and (c) shall apply to financings approved by
the Administration on or after October 1, 1996, but shall
not apply to financings approved by the Administration
on or after October 1, 1997.’’.
SEC. 203. REQUIRED ACTIONS UPON DEFAULT.
Section 503 (15 U.S.C. 697) is amended by adding
at the end the following:
‘‘(g) REQUIRED ACTIONS UPON DEFAULT.—
‘‘(1) DEADLINES.—
‘‘(A) INITIAL
ACTIONS.—Not later than
the 45th day after the date on which a payment
on a loan funded through a debenture guaran-