[106th Congress Public Law 22]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ022.106]
[[Page 113 STAT. 36]]
Public Law 106-22
106th Congress
An Act
To make technical corrections to the Microloan Program. <<NOTE: Apr. 27,
1999 - [H.R. 440]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Microloan
Program Technical Corrections Act of 1999. Small business. 15 USC 631
note.>>
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) in paragraph (7), by striking subparagraph (B) and
inserting the following:
``(B) Allocation.--
``(i) Minimum allocation.--Subject to the
availability of appropriations, of the total
amount of new loan funds made available for award
under this subsection in each fiscal year, the
Administration shall make available for award in
each State (including the District of Columbia,
the Commonwealth of Puerto Rico, the United States
Virgin Islands, Guam, and American Samoa) an
amount equal to the sum of--
``(I) the lesser of--
``(aa) $800,000; or
``(bb) \1/55\ of the total
amount of new loan funds made
available for award under this
subsection for that fiscal year;
and
``(II) any additional amount, as
determined by the Administration.
``(ii) Redistribution.--If, at the beginning
of the third quarter of a fiscal year, the
Administration determines that any portion of the
amount made available to carry out this subsection
is unlikely to be made available under clause (i)
during that fiscal year, the Administration may
make that portion available for award in any one
or more States (including the District of
Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, and American
Samoa) without regard to clause (i).''; 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''.
[[Page 113 STAT. 37]]
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 <<NOTE: Regulations.>> 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) In general.--Subject to subclause (III),
the Administrator 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 reserve.--After the
initial 5 years of an intermediary's participation
in the program authorized by this subsection, the
Administrator shall, at the request of the
intermediary, conduct a review of the annual loss
rate of the 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 5-year period preceding the request.
``(III) Reduction of loan loss reserve.--
Subject to the requirements of clause IV, the
Administrator may reduce the annual loan loss
reserve requirement of an intermediary to reflect
the actual average loan loss rate for the
intermediary during the preceding 5-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.
``(IV) Requirements.--The Administrator may
reduce the annual loan loss reserve requirement of
an intermediary 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.''.
Approved April 27, 1999.
LEGISLATIVE HISTORY--H.R. 440:
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HOUSE REPORTS: No. 106-12 (Comm. on Small Business).
CONGRESSIONAL RECORD, Vol. 145 (1999):
Feb. 9, considered and passed House.
Mar. 25, considered and passed Senate, amended.
Apr. 12, House concurred in Senate amendment.
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