To provide for an additional temporary extension of programs under the Small Business Act and the Small Business Investment Act of 1958 through June 4, 2004, and for other purposes.

SECTION 1. ADDITIONAL TEMPORARY EXTENSION OF AUTHORIZATION OF PROGRAMS 
              UNDER SMALL BUSINESS ACT AND SMALL BUSINESS INVESTMENT 
              ACT OF 1958.

    The authorization for any program, authority, or provision, 
including any pilot program, that was extended through April 2, 2004, 
by section 1 of Public Law 108-205 is further extended through June 4, 
2004, under the same terms and conditions.

SEC. 2. EXTENSION OF CERTAIN FEE AUTHORIZATIONS.

    Section 503(f) of the Small Business Investment Act of 1958 (15 
U.S.C. 697(f)), as amended by section 2 of Public Law 108-205, is 
further amended by striking ``May 21, 2004'' and inserting ``October 1, 
2004''.

SEC. 3. FISCAL YEAR 2004 PURCHASE AND GUARANTEE AUTHORITY UNDER TITLE 
              III OF SMALL BUSINESS INVESTMENT ACT OF 1958.

     Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended by adding at the end the following new subsection:
    ``(j) Fiscal Year 2004 Purchase and Guarantee Authority Under Title 
III of Small Business Investment Act of 1958.--For fiscal year 2004, 
for the programs authorized by title III of the Small Business 
Investment Act of 1958 (15 U.S.C. 681 et seq.), the Administration is 
authorized to make--
        ``(1) $4,000,000,000 in purchases of participating securities; 
    and
        ``(2) $3,000,000,000 in guarantees of debentures.''.

SEC. 4. COMBINATION FINANCING.

    (a) In General.--During the period beginning on the date of the 
enactment of this section and ending on September 30, 2004, subsection 
(a) of section 7 of the Small Business Act (15 U.S.C. 636(a)) shall be 
applied as if the paragraph set forth in subsection (b) were added at 
the end of that subsection (a).
    (b) Paragraph Specified.--The paragraph referred to in subsection 
(a) is as follows:
    ``(31) Combination financing.--
        ``(A) Definitions.--In this paragraph--
            ``(i) the term `combination financing' means financing 
        comprised of a loan guaranteed under this subsection and a 
        commercial loan; and
            ``(ii) the term `commercial loan' means a loan which is 
        part of a combination financing and no portion of which is 
        guaranteed by the Federal Government.
        ``(B) Applicability.--This paragraph applies to a loan 
    guarantee obtained by a small business concern under this 
    subsection, if the small business concern also obtains a commercial 
    loan.
        ``(C) Commercial loan amount.--In the case of any combination 
    financing, the amount of the commercial loan which is part of such 
    financing shall not exceed the gross amount of the loan guaranteed 
    under this subsection which is part of such financing.
        ``(D) Commercial loan provisions.--The commercial loan obtained 
    by the small business concern--
            ``(i) may be made by the participating lender that is 
        providing financing under this subsection or 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, if applicable.
        ``(E) Commercial loan fee.--A one-time fee in an amount equal 
    to 0.7 percent of the amount of the commercial loan shall be paid 
    by the lender to the Administration if the commercial loan has a 
    senior credit position to that of the loan guaranteed under this 
    subsection. Paragraph (23)(B) shall apply to the fee established by 
    this paragraph.
        ``(F) Deferred participation loan security.--A loan guaranteed 
    under this subsection may be secured by a subordinated lien.
        ``(G) Completion of application processing.--The Administrator 
    shall complete processing of an application for combination 
    financing under this paragraph pursuant to the program authorized 
    by this subsection as it was operating on October 1, 2003.
        ``(H) Business loan eligibility.--Any standards prescribed by 
    the Administrator relating to the eligibility of small business 
    concerns to obtain combination financing under this subsection 
    which are in effect on the date of the enactment of this paragraph 
    shall apply with respect to combination financings made under this 
    paragraph. Any modifications to such standards by the Administrator 
    after such date shall not unreasonably restrict the availability of 
    combination financing under this paragraph relative to the 
    availability of such financing before such modifications.''.

SEC. 5. LOAN GUARANTEE FEES.

    (a) In General.--During the period beginning on the date of the 
enactment of this section and ending on September 30, 2004, 
subparagraph (A) of paragraph (23) of subsection (a) of section 7 of 
the Small Business Act (15 U.S.C. 636(a)(23)(A)) shall be applied as if 
that subparagraph consisted of the language set forth in subsection 
(b).
    (b) Language Specified.--The language referred to in subsection (a) 
is as follows:
        ``(A) Percentage.--
            ``(i) In general.--With respect to each loan guaranteed 
        under this subsection, the Administrator shall, in accordance 
        with such terms and procedures as the Administrator shall 
        establish by regulation, assess and collect an annual fee in an 
        amount equal to 0.5 percent of the outstanding balance of the 
        deferred participation share of the loan.
            ``(ii) Temporary percentage.--With respect to loans 
        approved during the period beginning on the date of enactment 
        of this clause and ending on September 30, 2004, the annual fee 
        assessed and collected under clause (i) shall be equal to 0.36 
        percent of the outstanding balance of the deferred 
        participation share of the loan.''.
    (c) Retention of Certain Fees.--Subparagraph (B) of paragraph (18) 
of subsection (a) of section 7 of the Small Business Act (15 U.S.C. 
636(a)(18)(B)) shall not be effective during the period beginning on 
the date of the enactment of this section and ending on September 30, 
2004.

SEC. 6. EXPRESS LOAN PROVISIONS.

    (a) Definitions.--For the purposes of this section:
        (1) The term ``express lender'' shall mean any lender 
    authorized by the Administrator to participate in the Express Loan 
    Pilot Program.
        (2) The term ``Express Loan'' shall mean any loan made pursuant 
    to section 7(a) of the Small Business Act (15 U.S.C. 636(a)) in 
    which a lender utilizes to the maximum extent practicable its own 
    loan analyses, procedures, and documentation.
        (3) The term ``Express Loan Pilot Program'' shall mean the 
    program established by the Administrator prior to the date of 
    enactment of this section under the authority granted in section 
    7(a)(25)(B) of the Small Business Act (15 U.S.C. 636(a)(25)(B)) 
    with a guaranty rate not to exceed 50 percent.
        (4) The term ``Administrator'' means the Administrator of the 
    Small Business Administration.
        (5) The term ``small business concern'' has the same meaning 
    given such term under section 3(a) of the Small Business Act (15 
    U.S.C. 632(a)).
    (b) Restriction to Express Lender.--The authority to make an 
Express Loan shall be limited to those lenders deemed qualified to make 
such loans by the Administrator. Designation as an express lender for 
purposes of making an Express Loan shall not prohibit such lender from 
taking any other action authorized by the Administrator for that lender 
pursuant to section 7(a) of the Small Business Act (15 U.S.C. 636(a)).
    (c) Grandfathering of Existing Lenders.--Any express lender shall 
retain such designation unless the Administrator determines that the 
express lender has violated the law or regulations promulgated by the 
Administrator or modifies the requirements to be an express lender and 
the lender no longer satisfies those requirements.
    (d) Temporary Expansion of Express Loan Pilot Program.--
        (1) Authorization.--As of the date of enactment of this 
    section, the maximum loan amount in the Express Loan Pilot Program 
    shall be increased to a maximum loan amount of $2,000,000 as set 
    forth in section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 
    636(a)(3)(A)).
        (2) Termination date.--The authority set forth in paragraph (1) 
    shall terminate on September 30, 2004.
        (3) Savings provision.--Nothing in this section shall be 
    interpreted to modify or alter the authority of the Administrator 
    to continue to operate the Express Loan Pilot Program on or after 
    October 1, 2004.
    (e) Option to Participate.--Except as otherwise provided in this 
section, the Administrator shall take no regulatory, policy, or 
administrative action, without regard to whether such action requires 
notification pursuant to section 7(a)(24) of the Small Business Act (15 
U.S.C. 636(a)(24)), that has the effect of--
        (1) requiring a lender to make an Express Loan pursuant to 
    subsection (d);
        (2) limiting or modifying any term or condition of deferred 
    participation loans made under such section (other than Express 
    Loans) unless the Administrator imposes the same limit or 
    modification on Express Loans;
        (3) transferring or re-allocating staff, staff 
    responsibilities, resources, or funding, if the result of such 
    transfer or re-allocation would be to increase the average loan 
    processing, approval, or disbursement time above the averages for 
    those functions as of October 1, 2003, for loan guarantees approved 
    under such section by employees of the Administration or through 
    the Preferred Lenders Program; or
        (4) otherwise providing any incentive or disincentive which 
    encourages lenders or borrowers to make or obtain loans under the 
    Express Loan Pilot Program instead of under the general loan 
    authority of section 7(a) of the Small Business Act (15 U.S.C. 
    636(a)).
    (f) Collection and Reporting of Data.--For all loans in excess of 
$250,000 made pursuant to the authority set forth in subsection (d)(1), 
the Administrator shall, to the extent practicable, collect data on the 
purpose for each such loan. The Administrator shall report monthly to 
the Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives on the 
number of such loans and their purposes.
    (g) Termination.--Subsections (b), (c), (e), and (f) shall not 
apply after September 30, 2004.

SEC. 7. FISCAL YEAR 2004 DEFERRED PARTICIPATION STANDARDS.

    Deferred participation loans made during the period beginning on 
the date of the enactment of this Act and ending on September 30, 2004, 
under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) shall 
have the same terms and conditions (including maximum gross loan 
amounts and collateral requirements) as were applicable to loans made 
under such section on October 1, 2003, except as otherwise provided in 
this Act. This section shall not preclude the Administrator of the 
Small Business Administration from taking such action as necessary to 
maintain the loan program carried out under such section, subject to 
appropriations.

SEC. 8. TEMPORARY INCREASE IN LOAN LIMIT UNDER BUSINESS LOAN AND 
              INVESTMENT FUND AND IN ASSOCIATED GUARANTEE FEES.

    (a) Temporary Increase in Amount Permitted to Be Outstanding and 
Committed.--During the period beginning on the date of the enactment of 
this Act and ending on September 30, 2004, section 7(a)(3)(A) of the 
Small Business Act (15 U.S.C. 636(a)(3)(A)) shall be applied as if the 
first dollar figure were $1,500,000.
    (b) Temporary Guarantee Fee on Deferred Participation Share Over 
$1,000,000.--With respect to loans made during the period referred to 
in subsection (a) to which section 7(a)(18) of the Small Business Act 
(15 U.S.C. 636(a)(18)) applies, the Administrator of the Small Business 
Administration shall collect an additional guarantee fee equal to 0.25 
percent of the amount (if any) by which the deferred participation 
share of the loan exceeds $1,000,000.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: (Sec. 1) Extends through June 4 (currently, April 2), 2004, under the same terms and conditions, the authorization for any program, authority, or provision, including any pilot program, that is authorized under the Small Business Act (the Act) or the Small Business Investment Act of 1958 (SBIA) as of September 30, 2003.

(Sec. 2) Amends the SBIA to extend through FY 2004 (currently, May 21, 2004) the authority of the Small Business Administration (SBA) to charge and collect certain fees in connection with the guarantee of development company debentures under the small business investment program.

(Sec. 3) Amends the Act to authorize the SBA to make specified amounts in purchases of participating securities and guarantees of debentures under the SBIA small business investment company program.

(Sec. 4) Provides that, during the period beginning on the enactment of this Act and ending on September 30, 2004, in the case of any combination financing by a small business (receiving a loan guaranteed by the SBA and a commercial loan, no portion of which is guaranteed by the Federal Government), the amount of the commercial loan shall not exceed the gross amount of the guaranteed loan which is part of the financing. Allows the commercial loan to be: (1) made by the lender providing the guaranteed financing or by a different lender; (2) secured by a senior lien; and (3) made by a lender in the Preferred Lenders Program. Requires a fee to be paid by the lender to the SBA if the commercial loan has a senior credit position to that of the guaranteed loan.

(Sec. 5) Directs the SBA Administrator, during the same period as above, to assess and collect a loan guarantee fee, which shall be a percentage of the outstanding balance of the deferred participation share of the loan. Terminates, during such period, the authority of lenders under SBA-guaranteed loans to retain any loan guarantee fees collected.

(Sec. 6) Limits the authority to make Express Loans to those lenders deemed qualified by the Administrator. Increases, until the end of FY 2004, the maximum loan amount under the Express Loan Pilot Program. Gives a qualified lender the option to participate in such Program.

(Sec. 7) Continues through FY 2004 current SBA guaranteed loan deferred participation standards.

(Sec. 8) Provides through FY 2004: (1) an increase in SBA guaranteed loan limits; and (2) an additional loan guarantee fee.