[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4062 Engrossed in House (EH)]


  2d Session

                               H. R. 4062

_______________________________________________________________________

                                 AN ACT

To provide for an additional temporary extension of programs under the 
   Small Business Act and the Small Business Investment Act of 1958 
             through June 4, 2004, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
108th CONGRESS
  2d Session
                                H. R. 4062

_______________________________________________________________________

                                 AN ACT


 
To provide for an additional temporary extension of programs under the 
   Small Business Act and the Small Business Investment Act of 1958 
             through June 4, 2004, 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. ADDITIONAL TEMPORARY EXTENSION OF AUTHORIZATION OF PROGRAMS 
              UNDER SMALL BUSINESS ACT AND SMALL BUSINESS INVESTMENT 
              ACT OF 1958.

    The authorization for any program, authority, or provision, 
including any pilot program, that was extended through April 2, 2004, 
by section 1 of Public Law 108-205 is further extended through June 4, 
2004, under the same terms and conditions.

SEC. 2. EXTENSION OF CERTAIN FEE AUTHORIZATIONS.

    Section 503(f) of the Small Business Investment Act of 1958 (15 
U.S.C. 697 (f)), as amended by section 2 of Public Law 108-205, is 
further amended by striking ``May 21, 2004'' and inserting ``October 1, 
2004''.

SEC. 3. FISCAL YEAR 2004 PURCHASE AND GUARANTEE AUTHORITY UNDER TITLE 
              III OF SMALL BUSINESS INVESTMENT ACT OF 1958.

     Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended by adding at the end the following new subsection:
    ``(j) Fiscal Year 2004 Purchase and Guarantee Authority Under Title 
III of Small Business Investment Act of 1958.--For fiscal year 2004, 
for the programs authorized by title III of the Small Business 
Investment Act of 1958 (15 U.S.C. 681 et seq.), the Administration is 
authorized to make--
            ``(1) $4,000,000,000 in purchases of participating 
        securities; and
            ``(2) $3,000,000,000 in guarantees of debentures.''.

SEC. 4. COMBINATION FINANCING.

    (a) In General.--During the period beginning on the date of the 
enactment of this section and ending on September 30, 2004, subsection 
(a) of section 7 of the Small Business Act (15 U.S.C. 636(a)) shall be 
applied as if the paragraph set forth in subsection (b) were added at 
the end of that subsection (a).
    (b) Paragraph Specified.--The paragraph referred to in subsection 
(a) is as follows:
    ``(31) Combination financing.--
            ``(A) Definitions.--In this paragraph--
                    ``(i) the term `combination financing' means 
                financing comprised of a loan guaranteed under this 
                subsection and a commercial loan; and
                    ``(ii) the term `commercial loan' means a loan 
                which is part of a combination financing and no portion 
                of which is guaranteed by the Federal Government.
            ``(B) Applicability.--This paragraph applies to a loan 
        guarantee obtained by a small business concern under this 
        subsection, if the small business concern also obtains a 
        commercial loan.
            ``(C) Commercial loan amount.--In the case of any 
        combination financing, the amount of the commercial loan which 
        is part of such financing shall not exceed the gross amount of 
        the loan guaranteed under this subsection which is part of such 
        financing.
            ``(D) Commercial loan provisions.--The commercial loan 
        obtained by the small business concern--
                    ``(i) may be made by the participating lender that 
                is providing financing under this subsection or by a 
                different lender;
                    ``(ii) may be secured by a senior lien; and
                    ``(iii) may be made by a lender in the Preferred 
                Lenders Program, if applicable.
            ``(E) Commercial loan fee.--A one-time fee in an amount 
        equal to 0.7 percent of the amount of the commercial loan shall 
        be paid by the lender to the Administration if the commercial 
        loan has a senior credit position to that of the loan 
        guaranteed under this subsection. Paragraph (23)(B) shall apply 
        to the fee established by this paragraph.
            ``(F) Deferred participation loan security.--A loan 
        guaranteed under this subsection may be secured by a 
        subordinated lien.
            ``(G) Completion of application processing.--The 
        Administrator shall complete processing of an application for 
        combination financing under this paragraph pursuant to the 
        program authorized by this subsection as it was operating on 
        October 1, 2003.
            ``(H) Business loan eligibility.--Any standards prescribed 
        by the Administrator relating to the eligibility of small 
        business concerns to obtain combination financing under this 
        subsection which are in effect on the date of the enactment of 
        this paragraph shall apply with respect to combination 
        financings made under this paragraph. Any modifications to such 
        standards by the Administrator after such date shall not 
        unreasonably restrict the availability of combination financing 
        under this paragraph relative to the availability of such 
        financing before such modifications.''.

SEC. 5. LOAN GUARANTEE FEES.

    (a) In General.--During the period beginning on the date of the 
enactment of this section and ending on September 30, 2004, 
subparagraph (A) of paragraph (23) of subsection (a) of section 7 of 
the Small Business Act (15 U.S.C. 636(a)(23)(A)) shall be applied as if 
that subparagraph consisted of the language set forth in subsection 
(b).
    (b) Language Specified.--The language referred to in subsection (a) 
is as follows:
            ``(A) Percentage.--
                    ``(i) In general.--With respect to each loan 
                guaranteed under this subsection, the Administrator 
                shall, in accordance with such terms and procedures as 
                the Administrator shall establish by regulation, assess 
                and collect an annual fee in an amount equal to 0.5 
                percent of the outstanding balance of the deferred 
                participation share of the loan.
                    ``(ii) Temporary percentage.--With respect to loans 
                approved during the period beginning on the date of 
                enactment of this clause and ending on September 30, 
                2004, the annual fee assessed and collected under 
                clause (i) shall be equal to 0.36 percent of the 
                outstanding balance of the deferred participation share 
                of the loan.''.
    (c) Retention of Certain Fees.--Subparagraph (B) of paragraph (18) 
of subsection (a) of section 7 of the Small Business Act (15 U.S.C. 
636(a)(18)(B)) shall not be effective during the period beginning on 
the date of the enactment of this section and ending on September 30, 
2004.

SEC. 6. EXPRESS LOAN PROVISIONS.

    (a) Definitions.--For the purposes of this section:
            (1) The term ``express lender'' shall mean any lender 
        authorized by the Administrator to participate in the Express 
        Loan Pilot Program.
            (2) The term ``Express Loan'' shall mean any loan made 
        pursuant to section 7(a) of the Small Business Act (15 U.S.C. 
        636(a)) in which a lender utilizes to the maximum extent 
        practicable its own loan analyses, procedures, and 
        documentation.
            (3) The term ``Express Loan Pilot Program'' shall mean the 
        program established by the Administrator prior to the date of 
        enactment of this section under the authority granted in 
        section 7(a)(25)(B) of the Small Business Act (15 U.S.C. 
        636(a)(25(B)) with a guaranty rate not to exceed 50 percent.
            (4) The term ``Administrator'' means the Administrator of 
        the Small Business Administration.
            (5) The term ``small business concern'' has the same 
        meaning given such term under section 3(a) of the Small 
        Business Act (15 U.S.C. 632(a)).
    (b) Restriction to Express Lender.--The authority to make an 
Express Loan shall be limited to those lenders deemed qualified to make 
such loans by the Administrator. Designation as an express lender for 
purposes of making an Express Loan shall not prohibit such lender from 
taking any other action authorized by the Administrator for that lender 
pursuant to section 7(a) of the Small Business Act (15 U.S.C. 636(a)).
    (c) Grandfathering of Existing Lenders.--Any express lender shall 
retain such designation unless the Administrator determines that the 
express lender has violated the law or regulations promulgated by the 
Administrator or modifies the requirements to be an express lender and 
the lender no longer satisfies those requirements.
    (d) Temporary Expansion of Express Loan Pilot Program.--
            (1) Authorization.--As of the date of enactment of this 
        section, the maximum loan amount in the Express Loan Pilot 
        Program shall be increased to a maximum loan amount of 
        $2,000,000 as set forth in section 7(a)(3)(A) of the Small 
        Business Act (15 U.S.C. 636(a)(3)(A)).
            (2) Termination date.--The authority set forth in paragraph 
        (1) shall terminate on September 30, 2004.
            (3) Savings provision.--Nothing in this section shall be 
        interpreted to modify or alter the authority of the 
        Administrator to continue to operate the Express Loan Pilot 
        Program on or after October 1, 2004.
    (e) Option to Participate.--Except as otherwise provided in this 
section, the Administrator shall take no regulatory, policy, or 
administrative action, without regard to whether such action requires 
notification pursuant to section 7(a)(24) of the Small Business Act (15 
U.S.C. 636(a)(24)), that has the effect of--
            (1) requiring a lender to make an Express Loan pursuant to 
        subsection (d);
            (2) limiting or modifying any term or condition of deferred 
        participation loans made under such section (other than Express 
        Loans) unless the Administrator imposes the same limit or 
        modification on Express Loans;
            (3) transferring or re-allocating staff, staff 
        responsibilities, resources, or funding, if the result of such 
        transfer or re-allocation would be to increase the average loan 
        processing, approval, or disbursement time above the averages 
        for those functions as of October 1, 2003, for loan guarantees 
        approved under such section by employees of the Administration 
        or through the Preferred Lenders Program; or
            (4) otherwise providing any incentive or disincentive which 
        encourages lenders or borrowers to make or obtain loans under 
        the Express Loan Pilot Program instead of under the general 
        loan authority of section 7(a) of the Small Business Act (15 
        U.S.C. 636(a)).
    (f) Collection and Reporting of Data.--For all loans in excess of 
$250,000 made pursuant to the authority set forth in subsection (d)(1), 
the Administrator shall, to the extent practicable, collect data on the 
purpose for each such loan. The Administrator shall report monthly to 
the Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives on the 
number of such loans and their purposes.
    (g) Termination.--Subsections (b), (c), (e), and (f) shall not 
apply after September 30, 2004.

SEC. 7. FISCAL YEAR 2004 DEFERRED PARTICIPATION STANDARDS.

    Deferred participation loans made during the period beginning on 
the date of the enactment of this Act and ending on September 30, 2004, 
under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) shall 
have the same terms and conditions (including maximum gross loan 
amounts and collateral requirements) as were applicable to loans made 
under such section on October 1, 2003, except as otherwise provided in 
this Act. This section shall not preclude the Administrator of the 
Small Business Administration from taking such action as necessary to 
maintain the loan program carried out under such section, subject to 
appropriations.

SEC. 8. TEMPORARY INCREASE IN LOAN LIMIT UNDER BUSINESS LOAN AND 
              INVESTMENT FUND AND IN ASSOCIATED GUARANTEE FEES.

    (a) Temporary Increase in Amount Permitted to Be Outstanding and 
Committed.--During the period beginning on the date of the enactment of 
this Act and ending on September 30, 2004, section 7(a)(3)(A) of the 
Small Business Act (15 U.S.C. 636(a)(3)(A)) shall be applied as if the 
first dollar figure were $1,500,000.
    (b) Temporary Guarantee Fee on Deferred Participation Share Over 
$1,000,000.--With respect to loans made during the period referred to 
in subsection (a) to which section 7(a)(18) of the Small Business Act 
(15 U.S.C. 636(a)(18)) applies, the Administrator of the Small Business 
Administration shall collect an additional guarantee fee equal to 0.25 
percent of the amount (if any) by which the deferred participation 
share of the loan exceeds $1,000,000.

            Passed the House of Representatives March 31, 2004.

            Attest:

                                                                 Clerk.