[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1274 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1274

    To authorize funding for certain Small Business Administration 
                   programs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 21 (legislative day, June 30), 1993

  Mr. Bumpers (for himself, Mr. Wofford, and Mr. Kohl) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Small Business

_______________________________________________________________________

                                 A BILL


 
    To authorize funding for certain Small Business Administration 
                   programs, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Credit Reform Act of 1993''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. General authorizations.
Sec. 3. Microloan program authorizations.
Sec. 4. Extension of State limitation on interest rates.
Sec. 5. Guaranteed business loan program amendments.
Sec. 6. Interest rate for Preferred Lenders Program.
Sec. 7. Microloan program amendments.
Sec. 8. Regulations.
Sec. 9. White House Conference on Small Business.

SEC. 2. GENERAL AUTHORIZATIONS.

    (a) Financings for Fiscal Year 1993.--Section 20(g)(2) of the Small 
Business Act (15 U.S.C. 631 note) is amended--
            (1) by striking ``$7,030,000,000'' and inserting 
        ``$8,455,000,000'';
            (2) in subparagraph (A), by striking ``$6,200,000,000'' and 
        inserting ``$7,500,000,000''; and
            (3) in subparagraph (C), by striking ``$775,000,000'' and 
        inserting ``$900,000,000''.
    (b) Financings for Fiscal Year 1994.--Section 20(i)(2) of the Small 
Business Act (15 U.S.C. 631 note) is amended--
            (1) by striking ``$8,083,000,000'' and inserting 
        ``$11,258,000,000'';
            (2) in subparagraph (A), by striking ``$7,200,000,000'' and 
        inserting ``$8,000,000,000'';
            (3) in subparagraph (B), by striking ``and'' at the end;
            (4) by redesignating subparagraph (C) as subparagraph (D);
            (5) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) $2,000,000,000 in loans, as provided in 
                section 7(a)(21); and''; and
            (6) in subparagraph (D), as redesignated, by striking 
        ``$825,000,000'' and inserting ``$1,200,000,000''.
    (c) Financings for Fiscal Year 1995.--Section 20 of the Small 
Business Act (15 U.S.C. 631 note) is amended by striking subsections 
(k) and (l), as added by section 405(3) of the Small Business Credit 
and Business Opportunity Enhancement Act of 1992, and inserting the 
following:
    ``(l) The following program levels are authorized for fiscal year 
1995:
            ``(1) For the programs authorized by this Act, the 
        Administration is authorized to make $13,360,000,000 in 
        deferred participation loans and other financings. Of such sum, 
        the Administration is authorized to make--
                    ``(A) $9,000,000,000 in general business loans, as 
                provided in section 7(a);
                    ``(B) $3,000,000,000 in loans, as provided in 
                section 7(a)(21);
                    ``(C) $60,000,000 in loans, as provided in section 
                7(a)(12)(B); and
                    ``(D) $1,300,000,000 in financings, as provided in 
                section 7(a)(13) of this Act and section 504 of the 
                Small Business Investment Act of 1958.
            ``(2)(A) For the programs authorized by title III of the 
        Small Business Investment Act of 1958, the Administration is 
        authorized to make $23,000,000 in purchases of preferred 
        securities, $244,000,000 in guarantees of debentures, of which 
        $44,000,000 is authorized in guarantees of debentures from 
        companies operating pursuant to section 301(d) of such Act, and 
        $400,000,000 in guarantees of participating securities.
            ``(B) There are authorized to be appropriated to the 
        Administration for fiscal year 1995, such sums as may be 
        necessary to carry out subparagraph (A), including salaries and 
        expenses of the Administration.
            ``(3) For the programs authorized by part B of title IV of 
        the Small Business Investment Act of 1958, the Administration 
        is authorized to enter into guarantees of not more than 
        $2,180,000,000.''.
    (d) Financings for Fiscal Year 1996.--Section 20 of the Small 
Business Act (15 U.S.C. 631 note) is amended--
            (1) by striking subsections (m) and (n) and inserting the 
        following:
    ``(m) The following program levels are authorized for fiscal year 
1996:
            ``(1) For the programs authorized by this Act, the 
        Administration is authorized to make $14,960,000,000 in 
        deferred participation loans and other financings. Of such sum, 
        the Administration is authorized to make--
                    ``(A) $10,000,000,000 in general business loans, as 
                provided in section 7(a);
                    ``(B) $3,500,000,000 in loans, as provided in 
                section 7(a)(21);
                    ``(C) $60,000,000 in loans, as provided in section 
                7(a)(12)(B); and
                    ``(D) $1,400,000,000 in financings, as provided in 
                section 7(a)(13) of this Act and section 504 of the 
                Small Business Investment Act of 1958.
            ``(2)(A) For the programs authorized by title III of the 
        Small Business Investment Act of 1958, the Administration is 
        authorized to make $24,000,000 in purchases of preferred 
        securities, $256,000,000 in guarantees of debentures, of which 
        $46,000,000 is authorized in guarantees of debentures from 
        companies operating pursuant to section 301(d) of such Act, and 
        $550,000,000 in guarantees of participating securities.
            ``(B) There are authorized to be appropriated to the 
        Administration for fiscal year 1996, such sums as may be 
        necessary to carry out subparagraph (A), including salaries and 
        expenses.
            ``(3) For the programs authorized by part B of title IV of 
        the Small Business Investment Act of 1958, the Administration 
        is authorized to enter into guarantees not to exceed 
        $2,275,000,000.'';
            (2) in subsection (o), by striking ``(o) The'' and 
        inserting ``(n) The''; and
            (3) in subsection (p)--
                    (A) by striking ``(p) There'' and inserting ``(2) 
                There'', and indenting appropriately; and
                    (B) by striking ``subsection (o)'' and inserting 
                ``paragraph (1)''.

SEC. 3. MICROLOAN PROGRAM AUTHORIZATIONS.

    Section 20(k) of the Small Business Act (15 U.S.C. 631 note) is 
amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively;
            (3) in paragraph (1), as redesignated, by striking ``and'' 
        at the end;
            (4) in paragraph (2), as redesignated--
                    (A) in subparagraph (A), by striking 
                ``$60,000,000'' and inserting ``$80,000,000'';
                    (B) in subparagraph (B), by striking 
                ``$35,000,000'' and inserting ``$30,000,000''; and
                    (C) by striking the period at the end and inserting 
                a semicolon; and
            (5) by adding at the end the following new paragraphs:
            ``(3) for fiscal year 1995--
                    ``(A) $100,000,000 to be used for the provision of 
                loans; and
                    ``(B) $45,000,000 to be used for the provision of 
                grants; and
            ``(4) for fiscal year 1996--
                    ``(A) $120,000,000 to be used for the provision of 
                loans; and
                    ``(B) $55,000,000 to be used for the provision of 
                grants.''.

SEC. 4. EXTENSION OF STATE LIMITATION ON INTEREST RATES.

    Section 112(c) of the Small Business Administration Reauthorization 
and Amendments Act of 1988 (Public Law 100-590; 102 Stat. 2996) is 
amended--
            (1) by striking paragraph (2); and
            (2) by striking ``(1) In general.--''.

SEC. 5. GUARANTEED BUSINESS LOAN PROGRAM AMENDMENTS.

    (a) Additional Guarantee Fees.--
            (1) In general.--Section 7(a)(18) of the Small Business Act 
        (15 U.S.C. 636(a)(18)) is amended--
                    (A) by inserting ``(A)'' after ``(18)''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(B) In addition to fees collected under subparagraph (A), 
        the Administration shall collect a fee charged to the 
        participating lending institution in any case in which a loan 
        made under this section is sold on the secondary market in an 
        amount equal to 50 percent of that portion of the sale price 
        which is in excess of 110 percent of the face value of the 
        loan. Such fee may not be charged to the borrower.''.
            (2) Sunset.--The amendments made by paragraph (1) shall 
        remain in effect until September 30, 1996.
    (b) Guarantee Percentages.--
            (1) In general.--Subparagraph (B) of section 7(a)(2) of the 
        Small Business Act (15 U.S.C. 636(a)(2)) is amended to read as 
        follows:
                    ``(B) subject to the limitation in paragraph (3)--
                            ``(i) not less than 70 percent nor more 
                        than 75 percent of the financing outstanding at 
                        the time of disbursement, if such financing is 
                        more than $155,000 and the period of maturity 
                        of such financing is not less than 10 years, 
                        except that the participation by the 
                        Administration may be reduced below 70 percent 
                        upon request of the participating lender; and
                            ``(ii) not less than 80 percent of the 
                        financing outstanding at the time of 
                        disbursement, if such financing is a loan under 
                        paragraph (16).''.
            (2) Additional amendments.--Section 7(a)(2) of the Small 
        Business Act (15 U.S.C. 636(a)(2)) is amended--
                    (A) in the second sentence (immediately following 
                paragraph (2)(B)(ii)), by striking ``85 percent'' and 
                inserting ``the specified percentages''; and
                    (B) in the third sentence, by striking ``80 
                percent'' and inserting ``75 percent''.
    (c) System for Loan Payment and Servicing.--Section 7(a) of the 
Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end 
the following new paragraph:
            ``(22)(A) For loans guaranteed under this subsection, the 
        Administrator is authorized to establish a centralized loan 
        payment and servicing system.
            ``(B) Such system shall utilize a fiscal and transfer agent 
        to collect an annual fee on each loan that is equal to \1/4\ of 
        1 percent of the declining principal balance of the loan.''.

SEC. 6. INTEREST RATE FOR PREFERRED LENDERS PROGRAM.

    Section 7(a)(2) of the Small Business Act (15 U.S.C. 7(a)(2)) is 
amended by inserting after the third sentence, the following: ``The 
maximum interest rate for a loan under the Preferred Lenders Program 
shall not exceed the maximum interest rate applicable to other loan 
guarantee programs under section 7(a), as established by the 
Administrator.''.

SEC. 7. MICROLOAN PROGRAM AMENDMENTS.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is 
amended--
            (1) in paragraph (1)(B)(iii), by striking ``$15,000'' and 
        inserting ``$25,000'';
            (2) in paragraph (4)(C)(ii), by inserting ``to defray costs 
        associated with loan fund administration and'' before ``to 
        provide'';
            (3) in paragraph (5)(A), by striking ``6 grants'' and 
        inserting ``12 grants'';
            (4) by amending paragraph (9)(A) to read as follows:
                    ``(A) In general.--The Administration may provide, 
                directly or through an organization described in 
                subparagraph (B), technical assistance for participants 
                and potential participants in the Microloan 
                Demonstration Program to give such participants and 
                potential participants such knowledge, skills, and 
                understanding of microlending practices necessary to 
                operate successful microloan programs.''; and
            (5) in paragraph (9)(B)--
                    (A) by striking ``3 percent'' and inserting ``7 
                percent''; and
                    (B) by inserting ``and nonprofit organizations that 
                have demonstrated experience in providing training 
                support for microenterprise development and financing'' 
                after ``microlending organizations''.

SEC. 8. REGULATIONS.

    (a) Implementation.--Not later than 60 days after the date of 
enactment of this Act, the Administrator of the Small Business 
Administration (hereafter in this section referred to as the 
``Administrator'') shall promulgate interim final regulations to 
implement the amendments made by this Act.
    (b) Implementation of Pollution Control Assistance Provision.--
            (1) Technical correction.--Section 7(a)(12)(B) of the Small 
        Business Act (15 U.S.C. 636(a)(12)(B)), as added by section 
        111(c)(2) of Public Law 100-590, is amended by striking ``(b)'' 
        and inserting ``(B)'' and by indenting accordingly.
            (2) Regulations.--Not later than 240 days after the date of 
        enactment of this Act, the Administrator shall promulgate final 
        regulations, after an opportunity for notice and public 
        comment, to carry out section 7(a)(12)(B) of the Small Business 
        Act.

SEC. 9. WHITE HOUSE CONFERENCE ON SMALL BUSINESS.

    (a) Dates of Conferences.--Section 2 of the White House Conference 
on Small Business Authorization Act (15 U.S.C. 631 note) is amended--
            (1) by striking ``January 1, 1994'' and inserting ``May 1, 
        1995'';
            (2) by striking ``April 1, 1994'' and inserting ``December 
        31, 1995''; and
            (3) by striking ``December 1, 1992'' and inserting ``March 
        1, 1994''.
    (b) Appointment of Commissioners.--Section 5(a) of the White House 
Conference on Small Business Authorization Act (15 U.S.C. 631 note) is 
amended by striking ``The President'' and inserting ``Not later than 30 
days after the date of enactment of the Small Business Credit Reform 
Act of 1993, the President''.
    (c) Authorization of Appropriations.--Section 9(a) of the White 
House Conference on Small Business Authorization Act (15 U.S.C. 631 
note) is amended by striking ``$5,000,000'' and inserting 
``$7,000,000''.

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