Diverse Small Business Empowerment Act

Bill: 115-hr-7186
Sponsor: full_name: Rep. Veasey, Marc A. [D-TX-33]
Introduced: 2018-11-28
Policy area: Commerce
Subjects: Government lending and loan guarantees

Minority and disadvantaged businesses

Small business

User charges and fees

Women in business
Latest action: action_date: 2018-11-28
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2018-11-28
action_desc: Introduced in House
text: <p><b>Diverse Small Business Empowerment Act</b></p> <p>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. </p>

tv_txt: I 115th CONGRESS 2d Session H. R. 7186 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.

1. Short title This Act may be cited as the Diverse Small Business Empowerment Act . 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). .