Title: Small-Dollar and Veterans Loans Enhancement Act
Policy area: Commerce

Summary:
Small-Dollar and Veterans Loans Enhancement Act
This bill eliminates or reduces fees on Small Business Administration (SBA) small-dollar loans for borrowers and certain lenders.
Specifically, in years when the SBA projects its loan programs will operate at a surplus, the SBA must waive or reduce to the maximum extent possible (1) guarantee and yearly fees on all loans to small-dollar borrowers; (2) guarantee fees on express loans to veterans; and (3) if funds allow, fees for lenders making express loans to veterans.
The Congressional Budget Office shall submit an estimate of the cost of providing such fee waivers or reductions.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2138 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2138

To waive participant fees on small-dollar and veteran Express loans in 
the largest loan program of the Small Business Administration to close 
    the capital gap for underserved business owners, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 17, 2019

  Mr. Cardin introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
To waive participant fees on small-dollar and veteran Express loans in 
the largest loan program of the Small Business Administration to close 
    the capital gap for underserved business owners, 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 ``Small-Dollar and Veterans Loans 
Enhancement Act''.

SEC. 2. FEE WAIVER EXCEPTIONS FOR SMALL-DOLLAR AND VETERAN EXPRESS 
              LOANS.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended--
            (1) in paragraph (18)(A), in the matter preceding clause 
        (i), by striking ``With respect'' and inserting ``Except as 
        provided in paragraph (36), with respect'';
            (2) in paragraph (23)(A), by striking ``With respect'' and 
        inserting ``Except as provided in paragraph (36), with 
        respect'';
            (3) in paragraph (31)(G)(ii), by striking ``If'' and 
        inserting ``Except as provided in paragraph (36), if''; and
            (4) by adding at the end the following:
            ``(36) Guarantee and yearly fee waivers for small-dollar 
        loans.--
                    ``(A) Definition.--In this paragraph, the term 
                `cost' has the meaning given the term in section 502 of 
                the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
                    ``(B) Waiver or reduction in fees.--In each fiscal 
                year, to the extent that the cost of such elimination 
                or reduction of fees is offset by appropriations, the 
                Administrator shall--
                            ``(i) with respect to each loan guaranteed 
                        under this subsection that is not more than 
                        $150,000--
                                    ``(I) in lieu of the fee otherwise 
                                applicable under paragraph (18)(A), 
                                collect no fee or reduce fees to the 
                                maximum extent possible; and
                                    ``(II) in lieu of the fee otherwise 
                                applicable under paragraph (23)(A), 
                                collect no fee or reduce fees to the 
                                maximum extent possible; and
                            ``(ii) in lieu of the fee otherwise 
                        applicable under paragraph (18)(A) to veterans 
                        or spouses of veterans in connection with a 
                        loan made under paragraph (31), based on 
                        paragraph (31)(G)(ii), collect no fee or reduce 
                        fees to the maximum extent possible.
                    ``(C) Application of fee relief.--If the 
                Administrator is required to waive or reduce fees under 
                subparagraph (B)--
                            ``(i) the Administrator shall first use any 
                        amounts provided to eliminate or reduce fees 
                        under paragraph (18)(A) paid by veterans or 
                        spouses of veterans in connection with a loan 
                        made under paragraph (31), to the maximum 
                        extent possible;
                            ``(ii) the Administrator shall then use any 
                        amounts provided to eliminate or reduce fees 
                        paid by small business borrowers under clauses 
                        (i) through (iii) of paragraph (18)(A), to the 
                        maximum extent possible; and
                            ``(iii) the Administrator shall then use 
                        any amounts provided to eliminate or reduce 
                        fees under paragraph (23)(A) paid by small 
                        business lenders.
                    ``(D) Independent cost estimate.--Not later than 30 
                days after the date on which the President submits a 
                budget under section 1105(a) of title 31, United States 
                Code, the Congressional Budget Office shall submit to 
                the Committee on Small Business and Entrepreneurship of 
                the Senate and the Committee on Small Business of the 
                Administration an estimate of the cost of providing fee 
                waivers or reductions through appropriations under 
                subparagraph (B).''.
    (b) Applicability.--The amendments made by this section shall apply 
to each loan guaranteed by the Small Business Administration under 
section 7(a) of the Small Business Act (15 U.S.C. 636(a)) for which the 
application is approved on or after the date of enactment of this Act.
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