cations sale in which the consideration fur-
nished by the taxpayer is not less than the 
amount realized on the recapture event sale. 
‘‘(3) RECAPTURE EVENT.—For purposes of this 
subsection, the term ‘recapture event’ means, with 
respect to any qualified telecommunications sale—
‘‘(A) any sale or other disposition of the 
assets or stock referred to in subsection (c) 
which were acquired by the taxpayer in such 
sale, and 
‘‘(B) in the case of a qualified tele-
communications sale described in subsection 
(c)(2)—
‘‘(i) , any sale or other disposition of 
a telecommunications business by the cor-
poration referred to in such subsection, or 
‘‘(ii) any other transaction which re-
sults in the qualified business not having 
control (as defined in subsection (c)(2)(A)) 
of such corporation. 
Such term shall not include any sale or other dis-
position resulting from the default, or imminent de-
fault, of any indebtedness of the taxpayer.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter O of chapter 1 of such Code is amended by
inserting after the item relating to part IV the following 
new item:
‘‘PART V. CERTAIN SALES OF TELECOMMUNICATIONS BUSINESSES’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales in taxable years beginning 
after the date of the enactment of this Act. 
SEC. 2. LOAN GUARANTEE PROGRAM TO ENCOURAGE DI-
VERSITY OF OWNERSHIP OF TELECOMMUNI-
CATIONS BUSINESSES. 
(a) IN GENERAL.—The Administrator of the Small 
Business Administration may guarantee any loan made to 
a qualified business for the purchase of assets or stock 
described in section 1071(c) of the Internal Revenue Code 
of 1986 (relating to qualified telecommunications sale) if 
the sale of such assets or stock is certified by the Federal 
Communications Commission to be in furtherance of such 
Commission’s policy of expanding ownership of tele-
communications businesses. 
(b) LIMITATIONS.—
(1) SECURITY.—The Administrator shall not 
guarantee any loan under subsection (a) unless the 
guaranteed portion of such loan is secured by a first 
lien position or first mortgage on the stock or assets 
financed by the loan. 
(2) GUARANTEE PERCENTAGE.—The amount of 
any loan guaranteed by the Administrator under
subsection (a) shall not exceed 95 percent of the bal-
ance of the financing outstanding at the time of dis-
bursement of the loan. 
(3) FEES.—With respect to each loan guaran-
teed under subsection (a) (other than a loan that is 
repayable in 1 year or less), the Administrator may 
collect a guarantee fee, which shall be payable by the 
participating lender, and may be charged to the bor-
rower. 
(4) FORFEITURE OF FCC LICENSE.—The Ad-
ministrator shall not guarantee any loan under sub-
section (a) unless such loan provides that any license 
issued by the Federal Communications Commission 
to the borrower shall by returned and forfeited by 
the borrower to the Federal Communications Com-
mission immediately upon a finding by the Adminis-
trator that such borrower is in default under such 
loan. 
(c) GENERAL AUTHORITY.—For purposes of carrying 
out this section, the Administrator may—
(1) enter into contracts with private and Fed-
eral entities for professional and other services; 
(2) enter into memorandums of understanding 
with other Federal agencies; and
(3) issue regulations, including regulations re-
garding—
(A) notice of and opportunity to cure a de-
fault; 
(B) procedures related to foreclosure; and 
(C) such other matters as the Adminis-
trator considers appropriate. 
(d) DEFINITIONS.—For purposes of this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
(2) QUALIFIED BUSINESS.—The term ‘‘quali-
fied business’’ has the meaning given such term in 
section 1071(d) of the Internal Revenue Code of 
1986. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out the purposes of this section.
Æ