[108th Congress Public Law 217]
[From the U.S. Government Printing Office]
[DOCID: f:publ217.108]
[[Page 118 STAT. 591]]
Public Law 108-217
108th Congress
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. <<NOTE: Apr. 5, 2004 - [H.R.
4062]>>
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. <<NOTE: 15 USC 636 note.>> COMBINATION FINANCING.
(a) In <<NOTE: Applicability.>> 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--
[[Page 118 STAT. 592]]
``(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 <<NOTE: Applicability.>> 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. <<NOTE: 15 USC 636 note.>> LOAN GUARANTEE FEES.
(a) In <<NOTE: Applicability.>> 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:
[[Page 118 STAT. 593]]
``(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. <<NOTE: 15 USC 636 note.>> 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)).
[[Page 118 STAT. 594]]
(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. <<NOTE: 15 USC 636 note.>> 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. <<NOTE: 15 USC 636 note.>> TEMPORARY INCREASE IN LOAN LIMIT
UNDER BUSINESS LOAN AND INVESTMENT FUND AND IN ASSOCIATED
GUARANTEE FEES.
(a) Temporary <<NOTE: Applicability.>> 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,
[[Page 118 STAT. 595]]
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.
Approved April 5, 2004.
LEGISLATIVE HISTORY--H.R. 4062:
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CONGRESSIONAL RECORD, Vol. 150 (2004):
Mar. 31, considered and passed House.
Apr. 1, considered and passed Senate.
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