3.0.0 2992 2023-01-11T13:32:40Z 2023-01-11T13:32:40Z Senate S 2016-05-25 114 sssb00 Small Business and Entrepreneurship Committee Senate Standing Reported by 2016-06-09T20:49:19Z Markup by 2016-06-08T23:30:00Z Hearings by 2016-05-26T14:00:00Z Referred to 2016-05-25T21:36:31Z S. Rept. 114-421 2016-12-20 sssb00 Small Business and Entrepreneurship Committee Senate By Senator Vitter from Committee on Small Business and Entrepreneurship filed written report under authority of the order of the Senate of 12/10/2016. Report No. 114-421. Floor 2016-12-20 By Senator Vitter from Committee on Small Business and Entrepreneurship filed written report under authority of the order of the Senate of 12/10/2016. Report No. 114-421. Committee 14900 9 Library of Congress sssb00 Small Business and Entrepreneurship Committee 2016-06-09 Senate Placed on Senate Legislative Calendar under General Orders. Calendar No. 512. Calendars 2016-06-09 sssb00 Small Business and Entrepreneurship Committee Senate Committee on Small Business and Entrepreneurship. Reported by Senator Vitter with an amendment in the nature of a substitute. Without written report. Committee 2016-06-09 Committee on Small Business and Entrepreneurship. Reported by Senator Vitter with an amendment in the nature of a substitute. Without written report. Committee 14000 9 Library of Congress sssb00 Small Business and Entrepreneurship Committee 2016-06-08 sssb00 Small Business and Entrepreneurship Committee Senate Committee on Small Business and Entrepreneurship. Ordered to be reported with an amendment in the nature of a substitute favorably. Committee 2016-05-26 sssb00 Small Business and Entrepreneurship Committee Senate Committee on Small Business and Entrepreneurship. Hearings held. Committee 2016-05-25 sssb00 Small Business and Entrepreneurship Committee Senate Read twice and referred to the Committee on Small Business and Entrepreneurship. IntroReferral 2016-05-25 Introduced in Senate IntroReferral 10000 9 Library of Congress V000127 Sen. Vitter, David [R-LA] David Vitter R LA N S001181 Sen. Shaheen, Jeanne [D-NH] Jeanne Shaheen D NH 2016-05-25 True R000584 Sen. Risch, James E. [R-ID] James Risch R ID E. 2016-05-25 True A000368 Sen. Ayotte, Kelly [R-NH] Kelly Ayotte R NH 2016-05-25 True P000595 Sen. Peters, Gary C. [D-MI] Gary Peters D MI 2016-05-25 True E000285 Sen. Enzi, Michael B. [R-WY] MICHAEL ENZI R WY B. 2016-05-26 False 2016-09-20T20:37:23Z S. 2992, Small Business Lending Oversight Act of 2016 https://www.cbo.gov/publication/52033 As reported by the Senate Committee on Small Business and Entrepreneurship on June 9, 2016 Commerce Credit and credit markets Government lending and loan guarantees Industrial facilities Interest, dividends, interest rates Small business User charges and fees Commerce 00 2016-05-25 Introduced in Senate 2016-06-14T19:52:58Z Small Business Lending Oversight Act of 2016

This bill amends the Small Business Act to establish within the Small Business Administration (SBA) an Office of Credit Risk Management (OCRM) to impose specified administrative penalties, including monetary penalties, on any loan-financing lender that knowingly and repeatedly:

  • fails properly to determine and document that a small business loan is eligible for financing, including failure to document that a loan is eligible because the applicant is unable to obtain credit elsewhere (from non-federal, non-state, or non-local government sources);
  • sells the guaranteed portion of a loan when the loan proceeds have not been fully disbursed in accordance with program requirements;
  • imposes on a loan applicant a fee that the SBA has not specifically authorized; or
  • re-amortizes a loan solely to make the loan appear current.

The SBA shall:

  • conduct annual risk analyses of its loan portfolio, and
  • assess a separate fee for each approved loan whose proceeds shall be used solely to support OCRM operations.

The SBA shall also, at the end of each year, calculate the percentage of loans in a lender's portfolio made without a contribution of borrower equity when the loan's purpose was to establish a new small business concern, to effectuate a change of small business ownership, or to purchase real estate. No new loan application without a contribution of borrower equity, except in certain circumstances, may be approved if more than 15% of the lender's loan portfolio is without such a contribution.

The SBA shall also make end-of-year calculations of industry concentrations for each lender. No new loan application to a lender from a small business concern operating in a single industry, except in certain circumstances, may be approved if over 20% of the lender's loans are concentrated in that industry.

The SBA may not approve any loan if its financing is more than 100% of project costs.

A lender may use an outside agent or lender service provider to assist in identifying potential applicants and with processing, disbursing, servicing, and liquidating a loan.

With respect to an SBA loan for plant acquisition, construction, conversion, or expansion, including the acquisition of land, material, supplies, equipment, and working capital, as well as a loan to any qualified small business concern, no lender may sell or pledge an amount higher than 85% of the loan, or the percentage guaranteed by the SBA, whichever is greater.

]]> 01 2016-06-09 Reported to Senate with amendment(s) 2016-06-14T19:55:22Z Small Business Lending Oversight Act of 2016

(Sec. 2) This bill amends the Small Business Act to establish within the Small Business Administration (SBA) an Office of Credit Risk Management (OCRM) to impose specified administrative penalties, including monetary penalties, on any loan-financing lender that knowingly and repeatedly:

  • fails properly to determine and document that a small business loan is eligible for financing, including failure to document that a loan is eligible because the applicant is unable to obtain credit elsewhere (from non-federal, non-state, or non-local government sources);
  • sells the guaranteed portion of a loan when the loan proceeds have not been fully disbursed in accordance with program requirements;
  • imposes on a loan applicant a fee that the SBA has not specifically authorized; or
  • re-amortizes a loan solely to make the loan appear current.

The SBA shall conduct annual risk analyses of its loan portfolio.

(Sec. 3) The term "credit elsewhere" shall expand beyond non-federal sources to encompass credit to an individual loan applicant on reasonable terms and conditions from non-state and non-local government sources, including but not limited to:

  • the business industry in which the loan applicant operates;
  • whether the applicant is an enterprise that has been in operation for less than two years;
  • the adequacy of the collateral available to secure the requested loan; and
  • the loan term necessary to reasonably assure the applicant's ability to repay the debt from the actual or projected cash flow of the business.

(Sec. 4) The SBA shall assess a separate fee of up to 0.03% per year of the outstanding balance of the deferred participation share of each approved loan, whose proceeds shall be used solely to support OCRM operations.

The SBA shall collect a fee (currently discretionary) for any loan guarantee sold into the secondary market in an amount equal to 50% of the portion of the sale price that exceeds 108% (currently 110%) of the outstanding principal amount of the portion of the loan guaranteed by the SBA.

(Sec. 5) The SBA shall also, at the end of each year, calculate the percentage of loans in a lender's portfolio made without a contribution of borrower equity when the loan's purpose was to establish a new small business concern, to effectuate a change of small business ownership, or to purchase real estate. This requirement applies only to a lender that makes loans under authority delegated to the lender as a participant in the Preferred Lenders Program. No new loan application without a contribution of borrower equity, except in certain circumstances, may be approved if more than 15% of the lender's loan portfolio is without such a contribution.

The SBA shall make end-of-year calculations, too, of industry concentrations for each such lender, using the applicable six-digit classification code under the North American Industry Classification System. No new loan application to a lender from a small business concern operating in a single industry, except in certain circumstances, may be approved if over 20% of the lender's loans are concentrated in that industry.

The SBA may not approve any loan if its financing is more than 100% of project costs.

(Sec. 6) A lender may use an outside agent or lender service provider to assist in identifying potential applicants and with processing, disbursing, servicing, and liquidating a loan.

With respect to an SBA loan for plant acquisition, construction, conversion, or expansion, including the acquisition of land, material, supplies, equipment, and working capital, as well as a loan to any qualified small business concern, no lender may, without SBA approval, sell an amount higher than 85% of the loan, or the percentage guaranteed by the SBA, whichever is greater.

]]> Small Business Lending Oversight Act of 2016 Display Title Small Business Lending Oversight Act of 2016 Official Title as Introduced A bill to amend the Small Business Act to strengthen the Office of Credit Risk Management of the Small Business Administration, and for other purposes. Introduced in Senate IS Short Titles as Introduced Small Business Lending Oversight Act of 2016 Short Titles as Reported to Senate Small Business Lending Oversight Act of 2016 S Senate Reported to Senate 2016-06-09T04:00:00Z https://www.govinfo.gov/content/pkg/BILLS-114s2992rs/xml/BILLS-114s2992rs.xml Introduced in Senate 2016-05-25T04:00:00Z https://www.govinfo.gov/content/pkg/BILLS-114s2992is/xml/BILLS-114s2992is.xml 2016-12-20 By Senator Vitter from Committee on Small Business and Entrepreneurship filed written report under authority of the order of the Senate of 12/10/2016. Report No. 114-421. text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.