[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3989 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3989

        To amend the Small Business Act, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 1996

 Mr. LaFalce introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
        To amend the Small Business Act, 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. 7(a) LOAN GUARANTEE FEES.

    (a) Fees.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by striking from paragraph (23) ``0.5 percent'' and 
by inserting in lieu thereof ``0.5835 percent''.
    (b) Application.--The fee increase authorized by this section shall 
be applicable to loan guarantees approved on or after October 1, 1996, 
and shall not apply to any loan approved on or after October 1, 1997.

SEC. 2. AMENDMENT TO SMALL BUSINESS GUARANTEED CREDIT ENHANCEMENT ACT 
              OF 1993.

    Section 7 of the Small Business Guaranteed Credit Enhancement Act 
of 1993 (Public Law 103-81; 15 U.S.C. 634 note) is amended by striking 
``1996'' and by inserting in lieu thereof ``1997''.

SEC. 3. DEVELOPMENT COMPANY PROGRAM FEES.

    (a) Borrower Fees.--Section 503(b)(7)(A) (15 U.S.C. 697(b)(7)(A)) 
is amended by striking ``0.125 percent'' and by inserting ``0.9375 
percent''.
    (b) Lender Fees.--Section 503(d) of the Small Business Investment 
Act of 1958 (15 U.S.C. 697(d)) is amended to read as follows:
    ``(d)(1) The Administration may impose an additional charge for 
administrative expenses with respect to each debenture for which 
payment of principal and interest is guaranteed under subsection (a).
    ``(2) The Administration shall also impose a one-time fee of 50 
basis points on the total participation in any project by a bank or 
other financial institution which provides funding for part of the cost 
of the project as provided in section 502(3) of this Act.
    ``(3) The Administration shall collect annually from each 
development company a fee of 0.125 percent of the outstanding principal 
balance of any guaranteed debenture authorized by the Administration. 
Such fee shall be derived from the servicing fees collected by the 
development company pursuant to regulation, and shall not be derived 
from any additional fees imposed on small business concerns.''.
    (c) Application.--The fees authorized by this section shall apply 
to financings approved by the Administration on or after October 1, 
1996, but shall not apply to financings approved by the Administration 
on or after October 1, 1997.

SEC. 4. SMALL BUSINESS INVESTMENT COMPANY PROGRAM.

    (a) Fees.--Section 303 of the Small Business Investment Act of 1958 
(15 U.S.C. 683) is amended--
            (1) in subsection (b), in the fifth sentence, by striking 
        ``1 per centum,'' and all that follows before the period at the 
        end of the sentence and inserting the following: ``1 percent, 
        plus an additional charge of 1 percent per annum which shall be 
        paid to and retained by the Administration'';
            (2) in subsection (g)(2), by striking ``1 per centum,'' and 
        all that follows before the period at the end of the paragraph 
        and inserting the following: ``1 percent, plus an additional 
        charge of 1 percent per annum which shall be paid to and 
        retained by the Administration''; and
            (3) by adding at the end the following new subsection:
    ``(i) With respect to leverage granted by the Administration to a 
licensee, the Administration shall collect from the licensee a 
nonrefundable fee in an amount equal to 3 percent of the face amount of 
leverage granted to the licensee, payable upon the earlier of the date 
of entry into any commitment for such leverage or the date on which the 
leverage is drawn by the licensee.''.
    (b) Application.--The amendments made by this section shall be 
effective as to leverage approved on or after October 1, 1996, and 
shall cease to be effective for financings approved on or after October 
1, 1997.

SEC. 5. SBIC AUTHORIZATIONS.

    Section 20(p)(3) of the Small Business Act (15 U.S.C. 631 note) is 
amended--
            (1) by striking paragraph (A) and by redesignating 
        paragraphs (B) and (C) as (A) and (B); and
            (2) by striking from paragraph (A), as redesignated by this 
        section, ``of which $48,000,000 is authorized in guarantees of 
        debentures from companies operating pursuant to section 301(d) 
        of such Act''.

SEC. 6. REPEALER.

    Sections 1, 3, and 4 of this Act are repealed October 1, 1997.
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