I 
109TH CONGRESS 
1ST SESSION H. R. 1868 
To amend the Small Business Act to provide for increased access to capital 
for small businesses under the section 7(a) loan program, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 27, 2005 
Ms. VELA´ZQUEZ (for herself, Ms. BEAN, Mr. GRIJALVA, Mr. CASE, Mrs. 
CHRISTENSEN, and Mr. COOPER) introduced the following bill; which was 
referred to the Committee on Small Business 
A BILL 
To amend the Small Business Act to provide for increased 
access to capital for small businesses under the section 
7(a) loan program, 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 Access 
to Capital Act of 2005’’. 
SEC. 2. REDUCTION OF GUARANTEE FEES FOR SMALL 
BUSINESS BORROWERS. 
Section 7(a)(18)(A) of the Small Business Act (15 
U.S.C. 636(a)(18)(A)) is amended—
(1) in clause (i), by striking ‘‘2 percent’’ and 
inserting ‘‘1 percent’’; 
(2) in clause (ii), by striking ‘‘3 percent’’ and 
inserting ‘‘2.5 percent’’; and 
(3) by striking clause (iv). 
SEC. 3. REDUCTION OF GUARANTEE FEES FOR SMALL 
BUSINESS LENDERS. 
(a) REDUCTION OF LENDER GUARANTEE FEES.— 
Section 7(a)(23)(A) of the Small Business Act (15 U.S.C. 
636(a)(23)(A)) is amended to read as follows: 
‘‘(A) IN GENERAL.—With respect to each 
loan guaranteed under this subsection, the Ad-
ministrator shall assess, collect, and retain a 
fee, not to exceed 0.36 percent per year of the 
outstanding balance of the deferred participa-
tion share of the loan.’’. 
(b) ELIMINATION OF FEE ADJUSTMENT BY ADMINIS-
TRATION.—Section 7(a)(23) of such Act (15 U.S.C. 
636(a)(23)) is amended by striking subparagraph (C). 
SEC. 4. COMBINATION FINANCING. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(32) COMBINATION FINANCING.—
‘‘(A) IN
GENERAL.—A loan guaranteed 
under this subsection may be combined with a 
non-guaranteed loan. 
‘‘(B) DEFERRED PARTICIPATION LOAN SE-
CURITY.—A loan guaranteed under this sub-
section that is part of combination financing 
may be secured by a subordinated lien. 
‘‘(C) NON-GUARANTEED LOAN AMOUNT.— 
In the case of any combination financing, the 
amount of the non-guaranteed loan shall not ex-
ceed the gross amount of the guaranteed loan. 
‘‘(D) 
NON-GUARANTEED
LOAN
PROVI-
SIONS.—A non-guaranteed loan that is part of 
a combination financing— 
‘‘(i) may be made by the participating 
lender that provides the guaranteed loan or 
may be made by a different lender; 
‘‘(ii) may be secured by a senior lien; 
and 
‘‘(iii) may be made by a lender in the 
Preferred Lenders Program, as defined in 
paragraph (2)(C)(ii), if applicable. 
‘‘(E) BUSINESS LOAN ELIGIBILITY.—The 
Administrator shall not prescribe any standard 
relating to the eligibility of small business con-
cerns to obtain combination financing under 
this paragraph that unreasonably restricts the 
availability of combination financing to small 
business concerns. 
‘‘(F) DEFINITIONS.—In this paragraph— 
‘‘(i) the term ‘combination financing’ 
means financing comprised of a loan guar-
anteed under this subsection and a non- 
guaranteed loan; and 
‘‘(ii) the term ‘non-guaranteed loan’ 
means a loan, no portion of which is guar-
anteed by the Federal Government.’’. 
SEC. 5. INCREASE IN MAXIMUM GUARANTEED AMOUNT 
AND GROSS LOAN AMOUNT UNDER SECTION 
7(a) OF SMALL BUSINESS ACT. 
Section 7(a)(3)(A) of the Small Business Act (15 
U.S.C. 636(a)(3)(A)) is amended— 
(1) by striking ‘‘1,500,000’’ and inserting 
‘‘2,000,000’’; and 
(2) by striking ‘‘2,000,000’’ and inserting 
‘‘$3,000,000’’. 
SEC. 6. EFFECTIVE DATE. 
The amendments made by this Act shall take effect 
on October 1, 2005. 
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