Title: Diverse Small Business Empowerment Act
Policy area: Commerce

Summary:
Diverse Small Business Empowerment Act
This bill reduces or waives the guarantee fee required for certain Small Business Administration loans to small business concerns owned and controlled by veterans, socially and economically disadvantaged individuals, or women.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7186 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 7186

 To amend the Small Business Act to modify the upfront guarantee fees 
            for certain 7(a) loans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 28, 2018

 Mr. Veasey (for himself, Mr. Brown of Maryland, Ms. Jackson Lee, Mr. 
    Thompson of Mississippi, Mr. Takano, Mr. Gonzalez of Texas, Mr. 
  Grijalva, Mr. Correa, Mr. Sires, Mrs. Napolitano, Ms. Clarke of New 
 York, Ms. Eddie Bernice Johnson of Texas, Mr. Raskin, Mr. Cohen, Ms. 
Norton, and Ms. Wilson of Florida) introduced the following bill; which 
            was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
 To amend the Small Business Act to modify the upfront guarantee fees 
            for certain 7(a) loans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Diverse Small Business Empowerment 
Act''.

SEC. 2. MODIFICATIONS TO UPFRONT GUARANTEE FEES FOR CERTAIN 7(A) LOANS.

    (a) Guarantee Fees for Certain 7(a) Loans.--Section 7(a)(18) of the 
Small Business Act (15 U.S.C. 636(a)(18)) is amended--
            (1) in subparagraph (A), by striking ``With'' and inserting 
        ``Except as provided in subparagraph (C), and with'';
            (2) in subparagraph (B), by inserting ``or (C)(ii)'' after 
        ``subparagraph (A)(i)''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) Fees for certain small business concerns.--
                            ``(i) Guarantee fee waiver.--The 
                        Administrator may not collect a guarantee fee 
                        described in subparagraph (A) in connection 
                        with a loan made in the amount of $125,000 or 
                        less under this subsection (other than a loan 
                        that is repayable in 1 year or less) if such 
                        loan is made to a small business concern owned 
                        and controlled by veterans, small business 
                        concern owned and controlled by socially and 
                        economically disadvantaged individuals, or 
                        small business concern owned and controlled by 
                        women.
                            ``(ii) Reduced fee.--With respect to each 
                        loan guaranteed under this subsection (other 
                        than a loan that is repayable in 1 year or 
                        less) made to a small business concern owned 
                        and controlled by veterans, small business 
                        concern owned and controlled by socially and 
                        economically disadvantaged individuals, or 
                        small business concern owned and controlled by 
                        women, the Administration shall collect a 
                        guarantee fee, which shall be payable by the 
                        participating lender and may be charged to the 
                        borrower, in an amount not to exceed 1 percent 
                        of the deferred participation share of a total 
                        loan amount that is more than $125,000, but not 
                        more than $350,000.
                            ``(iii) Definitions.--In this subparagraph:
                                    ``(I) Small business concern owned 
                                and controlled by socially and 
                                economically disadvantaged 
                                individuals.--The term `small business 
                                concern owned and controlled by 
                                socially and economically disadvantaged 
                                individuals' has the meaning given in 
                                section 8(d)(3)(C).
                                    ``(II) Small business concern owned 
                                and controlled by veterans.--The term 
                                `small business concern owned and 
                                controlled by veterans' has the meaning 
                                given in section 3(q).
                                    ``(III) Small business concern 
                                owned and controlled by women.--The 
                                term `small business concern owned and 
                                controlled by women' has the meaning 
                                given in section 3(n).''.
    (b) SBA Express Loan Guarantee Fee Waiver.--Section 7(a)(31) of the 
Small Business Act (15 U.S.C. 636(a)(31)) is amended by adding at the 
end the following new subparagraph:
                    ``(I) Guarantee fee waiver for certain small 
                business concerns.--
                            ``(i) Guarantee fee waiver.--The 
                        Administrator may not collect a guarantee fee 
                        described in paragraph (18) in connection with 
                        a loan made under this paragraph to a small 
                        business concern owned and controlled by 
                        socially and economically disadvantaged 
                        individuals or a small business concern owned 
                        and controlled by women on or after the date of 
                        the enactment of this subparagraph.
                            ``(ii) Exception.--If the President's 
                        budget for the upcoming fiscal year, submitted 
                        to Congress pursuant to section 1105(a) of 
                        title 31, United States Code, includes a cost 
                        for the program established under this 
                        subsection that is above zero, the requirements 
                        of clause (i) shall not apply to loans made 
                        during such upcoming fiscal year.
                            ``(iii) Definitions.--In this subparagraph:
                                    ``(I) Small business concern owned 
                                and controlled by socially and 
                                economically disadvantaged 
                                individuals.--The term `small business 
                                concern owned and controlled by 
                                socially and economically disadvantaged 
                                individuals' has the meaning given in 
                                section 8(d)(3)(C).
                                    ``(II) Small business concern owned 
                                and controlled by women.--The term 
                                `small business concern owned and 
                                controlled by women' has the meaning 
                                given in section 3(n).''.
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