A bill to improve small business loan programs, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Loan Revitalization 
Act''.

SEC. 2. COMBINATION FINANCING.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following:
            ``(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 of which no portion is guaranteed by the 
                        Federal government.
                    ``(B) Application.--A loan guarantee under this 
                subsection on behalf of a small business concern, which 
                is approved within 120 days of the date on which a 
                commercial loan is obtained by the same small business 
                concern, shall be subject to the provisions of this 
                paragraph.
                    ``(C) Commercial loan amount.--A small business 
                concern shall not be eligible to receive combination 
                financing under this paragraph unless the commercial 
                loan obtained by the small business concern does not 
                exceed $2,000,000.
                    ``(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 0.5 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. All proceeds from the loan guaranteed 
                under this subsection shall be used to offset the cost 
                (as defined in section 502 of the Credit Reform Act of 
                1990) to the Administration of guaranteeing loans under 
                this subsection.
                    ``(F) Deferred participation loan eligibility.--
                            ``(i) Maximum amount.--A small business 
                        concern may not receive combination financing 
                        under this paragraph in an amount greater than 
                        $4,000,000.
                            ``(ii) Net amount.--The net amount of the 
                        deferred participation share shall not exceed 
                        the maximum amount of a net guarantee provided 
                        under paragraph (3)(A).
                    ``(G) Deferred participation loan security.--A loan 
                guaranteed under this subsection may be secured by a 
                subordinated lien.
                    ``(H) Availability.--Combination financing shall be 
                available under this paragraph notwithstanding any 
                maximum limitation on loans imposed by the 
                Administration.''.
    (b) Sunset Date.--The amendment made by subsection (a) shall take 
effect on the first day after the date of enactment of this Act and is 
repealed on October 1, 2004.

SEC. 3. LOAN GUARANTEE FEES.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended--
            (1) in paragraph (18)(B), by adding at the end the 
        following: ``This subparagraph shall not apply to any loan 
        approved during the period beginning on the first day after the 
        date of enactment of paragraph (23)(A)(iii) and ending on 
        September 30, 2004.''; and
            (2) in paragraph (23), by amending subparagraph (A) to read 
        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) First temporary percentage.--With 
                        respect to loans approved during the period 
                        beginning on October 1, 2002 and ending on the 
                        date of enactment of this clause, the annual 
                        fee assessed and collected under clause (i) 
                        shall be equal to 0.25 percent of the 
                        outstanding balance of the deferred 
                        participation share of the loan.
                            ``(iii) Second temporary percentage.--
                        During the period beginning on the first day 
                        after 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 0.35 percent of the outstanding 
                        balance of the deferred participation share of 
                        the loan.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the first day after the date of enactment of this Act 
and are repealed on October 1, 2004.

SEC. 4. RECONSIDERATION OF LOAN APPLICATIONS REJECTED BASED ON LOAN 
              AMOUNT.

    (a) Consideration of Loan Application Submitted Before January 8, 
2004.--Beginning on the first day after the date of enactment of this 
Act, the Small Business Administration shall reconsider any application 
submitted on or after December 23, 2003 and before January 8, 2004, 
under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) that 
was rejected based on the loan amount requested before considering any 
other application if the applicant is otherwise eligible for financial 
assistance under that section.
    (b) Export Working Capital.--Any small business that received 
financing under section 7(a)(14) of the Small Business Act (15 U.S.C. 
636(a)(14)) before January 1, 2004, and requests a renewal of such 
financing, shall have their request approved regardless of the size of 
such financing (subject to the limitations in section 7(a)(3) of such 
Act) if the small business is otherwise eligible for such financing 
under that section.
    (c) Maximum Loan Amount.--Ten days after the date of enactment of 
this Act, the Small Business Administration shall allow loans under 
section 7 of the Small Business Act (15 U.S.C. 636) up to the maximum 
amount permitted under the Small Business Act.

Summary: Small Business Loan Revitalization Act - Amends the Small Business Act (the Act) to provide requirements for the making of a Small Business Administration (SBA) guaranteed loan to a small business within 120 days after a commercial loan is obtained by that small business. Makes such small business ineligible for the SBA loan unless the commercial loan does not exceed $2 million.

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.

Prohibits a small business from receiving combination financing (an SBA-guaranteed loan and a commercial loan) in an amount greater than $4 million.

Makes current SBA-guaranteed loan fees inapplicable to loans approved from the day after enactment of this Act until September 30, 2004. Applies a loan fee with respect to loans approved during the period beginning on: (1) October 1, 2002, and ending on the date of enactment of this Act of 0.25 percent of the outstanding balance of the deferred participation share of the loan; and (2) the first day after the enactment of this Act and ending on September 30, 2004, of 0.35 percent of such outstanding balance.

Directs the SBA to reconsider, before considering any other application, any application submitted on or after December 23, 2003, and before January 8, 2004, for an SBA loan guarantee that was rejected based on the loan amount requested if the applicant is otherwise eligible for financial assistance under the Act. Requires any small business that received SBA export working capital financing before January 1, 2004, and requests a financing renewal to have their request approved regardless of the size of such financing, if the small business is otherwise eligible for such financing.

Directs the SBA, ten days after the enactment of this Act, to allow general small business start-up loans up to the maximum amount permitted under the Act.