[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2060 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2060

                    To amend the Small Business Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                  May 3 (legislative day, May 2), 1994

Mr. Bumpers (by request) introduced the following bill; which was read 
         twice and referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
                    To amend the Small Business Act.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may be 
cited as the ``Small Business Administration Amendments of 1994''.

                                TITLE I

    Sec. 101. Section 7(m)(1)(B) of the Small Business Act is amended 
by adding the words ``, a lender or alliance of lenders'' after the 
word ``Administration'', and by adding after the word 
``intermediaries'' in clause (i) thereof the following phrase 
``provided however, that the Administration may make in its sole 
discretion up to 100 percent deferred participation loans to ten 
intermediaries which will be located in urban areas and ten 
intermediaries which will be located in rural areas,''.
    Sec. 102. Section 7(m)(7) of the Small Business Act is amended by 
deleting the number ``50'' from subparagraph (B) thereof, and replacing 
it with the number ``140'', and by deleting the period at the end 
thereof and adding the phrase ``: Provided, That no more than 200 total 
microloan programs may be funded.'', and by deleting subparagraph (C) 
thereof and inserting in lieu thereof:
                    ``(C) In no case shall a State receive more than $5 
                million to fund all microloan programs conducted in 
                that State.''
    Sec. 103. Section 7(m)(3)(C) of the Small Business Act is amended 
by replacing the number ``$1,250,000'' with the number ``$1,750,000''.
    Sec. 104. Section 7(m)(3)(F) of the Small Business Act is amended 
by adding after the phrase ``10 years'' in clause (i) the following: 
``with the first five years of any deferred participation loan being a 
revolving line of credit on which only monthly payments of interest 
will be required and the balance amortized over the second five year 
period, with equal monthly payments of principal and interest''; and by 
revising clause (ii) to read as follows:
                            ``(ii) Applicable interest rates.--
                        Exception as provided in clause (iii), loans 
                        made by the Administration under this 
                        subsection to an intermediary shall bear an 
                        interest rate equal to the rate of interest on 
                        comparable five year obligations of the United 
                        States Treasury.''.

                                TITLE II

    Sec. 201. Section 7(a)(2)(B)(iv) of the Small Business Act is 
amended to read as follows:
                            ``(iv) not more than 90 percent of the 
                        financing outstanding at the time of 
                        disbursement if such financing is an extension 
                        or a revolving line of credit made under 
                        paragraph (14) and not less than 90 percent of 
                        the financing outstanding at the time of 
                        disbursement if such financing is a loan under 
                        paragraph (16).''.
    Sec. 202. Section 7(a)(14) of the Small Business Act is amended to 
read as follows:
            ``(14)(A) The Administration under this subsection may 
        provide extensions, specifically including guarantees of 
        standby letters of credit and revolving lines of credit for 
        export purposes, and financings to enable small business 
        concerns, including small business export trading companies and 
        small business export management companies, to develop foreign 
        markets. A bank or participating lending institution may 
        establish such rate of interest on extensions, revolving lines 
        of credit and financings made under this paragraph as may be 
        legal and reasonable.''.
    Sec. 203. Section 7(a)(3)(B) of the Small Business Act is amended 
to read as follows: ``If the total amount outstanding and committed (on 
a deferred basis) solely for the purposes provided in paragraph (16) to 
the borrower from the Business Guaranteed Loan Financing Account 
established by this Act would exceed $1,000,000 such amount to be in 
addition to any financing solely for working capital, supplies, or 
revolving lines of credit for export purposes up to a maximum of 
$750,000: Provided, however, That in no event may be aggregate amount 
outstanding and committed by the Administration under this subsection 
exceed $1,250,000.''.

                               TITLE III

    Sec. 301. Sections 8(b) (2), (3) and (4) of the Small Business Act 
are amended by inserting the words ``and other'' after the word 
``small'' wherever it appears.

                                TITLE IV

    Sec. 401. Section 28[2](g) of the Small Business Act is deleted and 
in its place the following is substituted:
    ``(g) There is established within the Administration an Office of 
Women's Business Ownership which shall be responsible for the 
administration under the supervision by the Administration of all 
authority conferred by this section. Such Office shall be headed by a 
director who shall be appointed by the Administrator.''

                                TITLE V

    Sec. 501. Section 8(b)(1)(A) of the Small Business Act is amended 
by adding at the end thereof the following sentence: ``Notwithstanding 
any other provision of law, the authority provided by this subparagraph 
shall remain available until expressly repealed.''
    Sec. 502. Section 411(a)(3) of the Small Business Investment Act of 
1958 is amended by adding the following sentence at the end thereof: 
``Notwithstanding any other provision of law, the authority granted by 
this paragraph shall remain available until expressly repealed.''
    Sec. 503. Section 5(b)(8) of the Small Business Act is amended by 
deleting the words ``not in excess of six months''.
    Sec. 504. The second sentence of Section 732 of Public Law 100-656 
is repealed.
    Sec. 505. Section 4(c) of the Small Business Act is amended to read 
as follows:
    ``(c)(1) There is hereby established in the Treasury one Loan 
Liquidation Fund. All repayment of loans and debentures, payments of 
interest, and other receipts arising out of transactions entered into 
by the Administration pursuant to Sections 5(e), 5(g), 7(a), 7(b), 
7(c)(2), 7(e), 7(h), 7(l), 7(m), and 8(a) of this Act, and titles III, 
IV, and V of the Small Business Investment Act of 1958, prior to 
October 1, 1991, shall be paid into such Loan Fund Liquidating Account. 
Balances existing in those revolving funds, as in effect immediately 
prior to the effective date of this paragraph, shall be transferred 
into such Loan Liquidation Fund. This Loan Liquidation Fund shall have 
available, without fiscal year limitation, such funds as are necessary 
to finance its operational needs.
    ``(2) The Administration shall submit to the Committees on Small 
Business and Appropriations of the Senate and the House of 
Representatives, as soon as possible after the beginning of each fiscal 
year, a full and complete report on the status of the Loan Liquidation 
Fund established pursuant to paragraph (1).''.
    Sec. 506. Section 4(c)(5)(B)(ii) of the Small Business Act is 
amended to read as follows:
                            ``(ii) The Administration shall pay into 
                        the miscellaneous receipts of the Treasury 
                        following the close of each fiscal year, the 
                        actual interest it collects during that fiscal 
                        year on all financings made under the authority 
                        of this Act.''.
    Sec. 507. Section 3(a)(2) of the Small Business Act is amended to 
read as follows:
            ``(2) In addition to the criteria specified in paragraph 
        (1), the Administrator may specify detailed definitions or 
        standards for example, by number of employees or dollar volume 
        of business, by which a business concern is to be recognized as 
        a small business concern for the purposes of this Act or any 
        other Act. Unless specifically authorized by statute, the 
        Secretary of a department or the head of a Federal agency, 
        other than the Administrator of the Small Business 
        Administration, may not prescribe for the use of such 
        department or agency a size standard for categorizing a 
        business concern as a small business concern, unless such 
        proposed size standard--
                    ``(A) is being proposed after an opportunity for 
                public notice and comment;
                    ``(B) provides for determining, over a period of 
                not less than 3 years--
                            ``(i) the size of a manufacturing concern 
                        as measured by its average employment based 
                        upon employment during each of the concern's 
                        pay periods for the preceding completed twelve 
                        calendar months; or
                            ``(ii) the size of a concern providing 
                        services on basis of the annual average gross 
                        receipts of the concern over a period of not 
                        less than three years; and
                    ``(C) is approved by the Administrator.
            ``(3) When establishing or approving any size standard 
        pursuant to paragraph (2), the Administrator shall consider 
        variations in economic activity from industry to industry 
        unless the Administrator determines that size standards should 
        not vary in order to meet program needs.''.
    Sec. 508. Section 5(b) of the Small Business Act is amended by 
deleting the word ``and'' at the end of paragraph (10) thereof, by 
removing the ``.'' at the end of paragraph (11) thereof and replacing 
it with ``, and'' and (b) adding a new paragraph (12) which reads as 
follows:
            ``(12) to impose reasonable fees to be charged in 
        connection with applications for assistance, and the provision 
        of assistance under this Act and the Small Business Investment 
        Act of 1958 and to retain such fees to offset the costs of 
        administration of such assistance.''.
    Sec. 509. Section 8(b) of the Small Business Act is amended by 
deleting the word ``and'' at the end of paragraph (15), by striking the 
period at the end of paragraph 8(b)(16) and replacing it with ``; 
and'', and by adding a new paragraph 8(b)(17) which reads as follows:
            ``(17) to charge and collect such fees as may be necessary 
        to cover all costs associated with the production and 
        dissemination of compilations of information produced by the 
        Administration under the authority of the Small Business Act 
        and the Small Business Investment Act of 1958, and to retain 
        such fees and utilize such fees to offset the costs of 
        production and dissemination of such compilations of 
        information.''.

                                TITLE VI

    Sec. 601. Sections 20(k) through 20(p) of the Small Business Act 
are repealed and the following is substituted in their place:
    ``(k) The following program levels are authorized for fiscal year 
1995:
            ``(1) For the programs authorized by this Act, the 
        Administration is authorized to make $13,910,000,000 in 
        deferred participation loans and other financings; and of such 
        sum, the Administration is authorized to make $11,500,000,000 
        in general business loans as provided in section 7(a), 
        $110,000,000 in loans as provided in section 7(m), and 
        $2,300,000,000 in financings as provided in section 7(a)(13) 
        and section 504 of the Small Business Investment Act of 1958.
            ``(2) 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 stock, 
        $275,000,000 in guarantees of debentures of which $65,000,000 
        is authorized for guarantees of debentures of companies 
        operating pursuant to section 301(d) of such Act, and 
        $550,000,000 in guarantees of participating securities.
            ``(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 
        $2,000,000,000.
    ``(l) There are authorized to be appropriated to the Administration 
for fiscal year 1995 such sums as may be necessary to carry out 
subsection (k), including salaries and expenses of the Administration.
    ``(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 $17,475,000,000 in 
        deferred participation loans and other financings; and of such 
        sum, the Administration is authorized to make $13,500,000,000 
        in general business loans as provided in section 7(a), 
        $175,000,000 in loans as provided in section 7(m), and 
        $3,800,000,000 in financings as provided in section 7(a)(13) 
        and section 504 of the Small Business Investment Act of 1958.
            ``(2) 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 stock, 
        $320,000,000 in guarantees of debentures of which $70,000,000 
        is authorized for guarantees of debentures of companies 
        operating pursuant to section 301(d) of such Act, and 
        $1,100,000,000 in guarantees of participating securities.
            ``(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 
        $2,000,000,000.
    ``(n) There are authorized to be appropriated to the Administration 
for fiscal year 1996, such sums as may be necessary to carry out 
subsection (m), including salaries and expenses of the Administration.
    ``(o) The following program levels are authorized for fiscal year 
1997:
            ``(1) For the programs authorized by this Act, the 
        Administration is authorized to make $21,450,000,000 in 
        deferred participation loans and other financings; and of such 
        sum, the Administration is authorized to make $15,500,000,000 
        in general business loans as provided in section 7(a), 
        $250,000,000 in loans as provided in section 7(m), and 
        $5,700,000,000 in financings as provided in section 7(a)(13) 
        and section 504 of the Small Business Investment act of 1958.
            ``(2) For the programs authorized by title III of the Small 
        Business Investment Act of 1958, the Administration is 
        authorized to make $25,000,000 in purchases of deferred stock, 
        $385,000,000 in guarantees of debentures of which $75,500,000 
        is authorized for guarantees of debentures of companies 
        operating pursuant to section 301(d) of such Act, and 
        $1,700,000,000 in guarantees of participating securities.
            ``(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 
        $2,000,000,000.
    ``(p) There are authorized to be appropriated to the Administration 
for fiscal year 1997, such sums as may be necessary to carry out 
subsection (o), including salaries and expenses of the 
Administration.''.

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