[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4062 Enrolled Bill (ENR)]
H.R.4062
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.