[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 440 Reported in House (RH)]
Union Calendar No. 10
106th CONGRESS
1st Session
H. R. 440
[Report No. 106-12]
To make technical corrections to the Microloan Program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 2, 1999
Mr. Talent (for himself, Ms. Velazquez, Mr. Pascrell, and Ms.
Schakowsky) introduced the following bill; which was referred to the
Committee on Small Business
February 8, 1999
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
_______________________________________________________________________
A BILL
To make technical corrections to the Microloan Program.
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 ``Microloan Program Technical
Corrections Act of 1999''.
SEC. 2. TECHNICAL CORRECTIONS.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is
amended--
(1) by amending paragraph (7)(B) to read as follows:
``(B) Availability of funds.--Subject to
appropriations, the Administration shall ensure that at
least $800,000 of new loan funds are available for each
State in any fiscal year. All funds are to be made
available subject to approval of the Administration.
If, at the beginning of the third quarter of a fiscal
year, the Administration determines that the funds
necessary to comply with this provision are unlikely to
be awarded that year, the Administration may make those
funds available to any State or intermediary.''; and
(2) in paragraph (8)--
(A) by inserting ``and providing funding to
intermediaries'' after ``program applicants''; and
(B) by inserting ``and provide funding to'' after
``shall select''.
SEC. 3. LOAN LOSS RESERVE.
Section 7(m)(3)(D) of the Small Business Act (15 U.S.C.
636(m)(3)(D)) is amended to read as follows:
``(D)(i) In general.--The Administrator shall, by
regulation, require each intermediary to establish a
loan loss reserve fund, and to maintain such reserve
fund until all obligations owed to the Administration
under this subsection are repaid.
``(ii) Level of loan loss reserve fund.--
``(I) Subject to subclause (III), the
Administration shall require the loan loss
reserve fund of an intermediary to be
maintained at a level equal to 15 percent of
the outstanding balance of the notes receivable
owed to the intermediary.
``(II) Review of loan loss.--After the
initial 5 years of each intermediary's
participation in the program authorized by this
subsection, the Administration shall, at the
request of the intermediary, conduct a review
of the annual loss rate of each intermediary.
Any intermediary in operation under this
subsection prior to October 1, 1994 that
requests a reduction in its loan loss reserve
shall be reviewed based on the most recent five
year period preceding the request.
``(II) Reduction of the loan loss
reserve.--Subject to the requirements of this
subclause the Administrator may reduce the
annual loan loss reserve requirement to reflect
the actual average loan loss rate for the
intermediary during the preceding five year
period, except that in no case shall the loan
loss reserve be reduced to less than 10 percent
of the outstanding balance of the notes
receivable owed to the intermediary.
``A reduction may be allowed only if the
intermediary demonstrates to the satisfaction
of the Administrator that--
``(aa) the average annual loss rate
for the intermediary during the
preceding 5 year period is less than 15
percent; and
``(bb) that no other factors exist
that may impair the ability of the
intermediary to repay all obligations
owed to the Administration under this
subsection.''.
Union Calendar No. 10
106th CONGRESS
1st Session
H. R. 440
[Report No. 106-12]
_______________________________________________________________________
A BILL
To make technical corrections to the Microloan Program.
_______________________________________________________________________
February 8, 1999
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed