[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 895 Engrossed Amendment House (EAH)]
In the House of Representatives, U. S.,
September 12, 1995.
Resolved, That the bill from the Senate (S. 895) entitled ``An Act 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'', do pass with the following
AMENDMENTS:
Strike out all after the enacting clause, and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Credit Efficiency Act
of 1995''.
SEC. 2. FEE FOR LOAN GUARANTEES SOLD ON SECONDARY MARKET.
Section 5(g)(4)(A) of the Small Business Act (15 U.S.C.
634(g)(4)(A)) is amended by striking ``\4/10\ of one percent'' and
inserting ``one-half of 1 percent''.
SEC. 3. GENERAL BUSINESS LOANS.
(a) 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--
``(i) equal to 80 percent of the balance of
the financing outstanding at the time of
disbursement if such financing is less than or
equal to $100,000; and
``(ii) equal to 75 percent of the balance
of the financing outstanding at the time of
disbursement if such financing is greater than
$100,000.
``(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.''.
(b) Guarantee Fees.--Section 7(a)(18) of the Small Business Act (15
U.S.C. 636(a)(18)) is amended to read as follows:
``(18) Guarantee fees.--
``(A) General fee.--For any loan or financing made
under this subsection other than a loan repayable in a
period of one year or less, the Administration shall
collect a guarantee fee equal to--
``(i) 2 percent of the gross amount of any
loan guaranteed under this subsection of an
amount less than $250,000;
``(ii) 2.5 percent of the gross amount of
any loan guaranteed under this subsection of an
amount equal to or greater than $250,000 and
less than $500,000; or
``(iii) 3 percent of the gross amount of
any loan guaranteed under this subsection of an
amount equal to or greater than $500,000.
Such fee shall be payable by the participating lending
institution and may be charged to the borrower.
``(B) Additional fee to offset cost.--
``(i) In general.--In addition to the
guarantee fee to be collected under
subparagraph (A), the Administration shall
collect a fee for loans guaranteed under this
subsection (other than loans for which a
guarantee fee may be collected under section
5(g)(4)(A)) in an amount equal to not more than
four-tenths of 1 percent per year of the
outstanding principal portion of such loan
guaranteed by the Administration.
``(ii) Use.--Fees collected under clause
(i) shall be used solely to offset the cost (as
defined by section 502(5) of the Congressional
Budget Act of 1974) of guaranteeing loans under
this subsection.
``(iii) Payment.--Fees collected under
clause (i) shall be payable by the
participating lending institution and shall not
be charged to the borrower.''.
(c) Repeal of Provisions Allowing Retention of Guarantee Fees by
Lenders.--Section 7(a)(19) of the Small Business 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
before the period at the end; and
(2) by striking subparagraph (C).
SEC. 4. MODIFICATIONS TO DEVELOPMENT COMPANY DEBENTURE PROGRAM.
(a) Maximum Loan Amount.--Section 502(2) of the Small Business
Investment Act of 1958 (15 U.S.C. 696(2)) is amended to read as
follows:
``(2) Loans made by the Administration under this section
shall be limited to $1,250,000 for each such identifiable small
business concern.''.
(b) Fee to Offset Cost.--Section 503(b)(3) of the Small Business
Investment Act of 1958 (15 U.S.C. 697(b)(3)) is amended by inserting
before the semicolon the following: ``and includes a one-eighth of 1
percent fee which shall be paid to the Administration and which shall
be used solely to offset the cost (as defined by section 502(5) of the
Congressional Budget Act of 1974) of guaranteeing the debenture.''.
Amend the title so as to read: ``An Act to amend the Small Business Act and
the Small Business Investment Act of 1958 to reduce the cost to the Federal
Government of guaranteeing certain loans and debentures, and for other
purposes.''.
Attest:
Clerk.
104th CONGRESS
1st Session
S. 895
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AMENDMENTS