Union Calendar No. 130
104TH CONGRESS
1ST SESSION
H. R. 2150
[Report No. 104–239]
A BILL
To amend the Small Business Act and the Small
Business Investment Act of 1958 to reduce the
cost to the Federal Government of guaranteeing
certain loans and debentures, and for other pur-
poses.
SEPTEMBER 6, 1995
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 130
104TH CONGRESS
1ST SESSION
H. R. 2150
[Report No. 104–239]
To amend the Small Business Act and the Small Business Investment Act
of 1958 to reduce the cost to the Federal Government of guaranteeing
certain loans and debentures, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 1, 1995
Mrs. MEYERS of Kansas introduced the following bill; which was referred to
the Committee on Small Business
SEPTEMBER 6, 1995
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Omit the part struck through and insert the part printed in italic]
A BILL
To amend the Small Business Act and the Small Business
Investment Act of 1958 to reduce the cost to the Federal
Government of guaranteeing certain loans and deben-
tures, 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 ‘‘Small Business Credit
Efficiency Act of 1995’’.
SEC. 2. FEE FOR LOAN GUARANTEES SOLD ON SECONDARY
MARKET.
Section 5(g)(4)(A) of the Small Business Act (15
U.S.C. 634(g)(4)(A)) is amended by striking ‘‘4⁄10 of one
percent’’ and inserting ‘‘one-half of 1 percent’’.
SEC. 3. GENERAL BUSINESS LOANS.
(a) REDUCED LEVEL OF PARTICIPATION IN GUARAN-
TEED LOANS.—Section 7(a)(2) of the Small Business Act
(15 U.S.C. 636(a)(2)) is amended to read as follows:
‘‘(2) LEVEL
OF
PARTICIPATION
IN
GUARAN-
TEED LOANS.—
‘‘(A) IN GENERAL.—In agreements to par-
ticipate in loans on a deferred basis under this
subsection, such participation by the Adminis-
tration shall be—
‘‘(i) equal to 80 percent of the balance
of the financing outstanding at the time of
disbursement if such financing is less than
or equal to $100,000; and
‘‘(ii) equal to 75 percent of the bal-
ance of the financing outstanding at the
time of disbursement if such financing is
greater than $100,000.
‘‘(B) 
REDUCED
PARTICIPATION.—The
guarantee percentage specified by subparagraph
(A) for any loan may be reduced upon the re-
quest of the participating lender. The Adminis-
tration shall not use the percent of guarantee
requested as a criterion for establishing prior-
ities in approving guarantee requests.
‘‘(C) INTEREST RATE UNDER PREFERRED
LENDERS
PROGRAM.—The maximum interest
rate for a loan guaranteed under the Preferred
Lenders Program shall not exceed the maxi-
mum interest rate, as determined by the Ad-
ministration, which is made applicable to other
loan guarantees under this subsection.
‘‘(D) PREFERRED LENDERS PROGRAM DE-
FINED.—In this paragraph, the term ‘Preferred
Lenders Program’ means a program under
which a written agreement between the lender
and the Administration delegates to the lend-
er—
‘‘(i) complete authority to make and
close loans with a guarantee from the Ad-
ministration without obtaining the prior
specific approval of the Administration;
and