[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1570 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1570

To amend the Small Business Act to reduce the level of participation by 
 the Small Business Administration in certain loans guaranteed by the 
                Administration, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 1995

Mrs. Meyers of Kansas introduced the following bill; which was referred 
                   to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
To amend the Small Business Act to reduce the level of participation by 
 the Small Business Administration in certain loans guaranteed by the 
                Administration, 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 Business Loan Amendments Act 
of 1995''.

SEC. 2. REDUCED LEVEL OF PARTICIPATION IN GUARANTEED LOANS.

    Section 7(a)(2) of the Small Business Act (15 U.S.C. 636(a)(2)) is 
amended to read as follows:
            ``(2) Level of participation in guaranteed loans.--
                    ``(A) In general.--In agreements to participate in 
                loans on a deferred basis under this subsection, such 
                participation by the Administration shall be equal to--
                            ``(i) with respect to loans made under the 
                        Preferred Lenders Program, 70 percent of the 
                        balance of the financing outstanding at the 
                        time of disbursement; and
                            ``(ii) with respect to all other loans, 75 
                        percent of the balance of the financing 
                        outstanding at the time of disbursement.
                    ``(B) Reduced participation.--The guarantee 
                percentage specified by subparagraph (A) for any loan 
                may be reduced upon the request of the participating 
                lender. The Administration shall not use the percent of 
                guarantee requested as a criterion for establishing 
                priorities in approving guarantee requests.
                    ``(C) Interest rate under preferred lenders 
                program.--The maximum interest rate for a loan 
                guaranteed under the Preferred Lenders Program shall 
                not exceed the maximum interest rate, as determined by 
                the Administration, which is made applicable to other 
                loan guarantees under this subsection.
                    ``(D) Preferred lenders program defined.--In this 
                paragraph, the term `Preferred Lenders Program' means a 
                program under which a written agreement between the 
                lender and the Administration delegates to the lender--
                            ``(i) complete authority to make and close 
                        loans with a guarantee from the Administration 
                        without obtaining the prior specific approval 
                        of the Administration; and
                            ``(ii) authority to service and liquidate 
                        such loans.''.

SEC. 3. GUARANTEE FEES.

    (a) Amount of Fees.--Section 7(a)(18) of the Small Business Act (15 
U.S.C. 636(a)(18)) is amended by striking ``the amount of the deferred 
participation share'' and inserting ``the gross amount''.
    (b) Repeal of Provisions Allowing Retention of Fees by Lenders.--
Section 7(a)(19) of such Act (15 U.S.C. 636(a)(19)) is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``shall (i) develop'' and inserting 
                ``shall develop''; and
                    (B) by striking ``, and (ii)'' and all that follows 
                through the end of the subparagraph and inserting a 
                period; and
            (2) by striking subparagraph (C).
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