< Back to H.R. 4297 (103rd Congress, 1993–1994)

Text of Small Business Administration Amendments of 1994

This bill was introduced on April 25, 1994, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 25, 1994 (Introduced).

Source: GPO

HR 4297 IH

103d CONGRESS

2d Session

H. R. 4297

To amend the Small Business Act.

IN THE HOUSE OF REPRESENTATIVES

April 25, 1994

Mr. LAFALCE (by request) introduced the following bill; which was referred to the Committee on Small Business


A BILL

To amend the Small Business Act.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the ‘Small Business Administration Amendments of 1994’.

TITLE I

    SEC. 101. Section 7(m)(1)(B) of the Small Business Act is amended by adding the words ‘, a lender or alliance of lenders’ after the word ‘Administration’, and by adding after the word ‘intermediaries’ in clause (i) thereof the following phrase ‘: Provided, however, That the Administration may make in its sole discretion up to 100 percent deferred participation loans to ten intermediaries which will be located in urban areas and ten intermediaries which will be located in rural areas,’.

    SEC. 102. Section 7(m)(7) of the Small Business Act is amended by deleting the number ‘50’ from subparagraph (B) thereof, and replacing it with the number ‘140’, and by deleting the period at the end thereof and adding the phrase : ‘Provided, That no more than 200 total microloan programs may be funded’, and by deleting subparagraph (C) thereof and inserting in lieu thereof: ‘(C) In no case shall a State receive more than $5,000,000 to fund all microloan programs conducted in that State.’.

    SEC. 103. Section 7(m)(3)(C) of the Small Business Act is amended by replacing the number ‘$1,250,000’ with the number ‘$1,750,000’.

    SEC. 104. Section 7(m)(3)(F) of the Small Business Act is amended by adding after the phrase ‘10 years’ in clause (i) the following: ‘with the first 5 years of any deferred participation loan being a revolving line of credit on which only monthly payments of interest will be required and the balance amortized over the second 5 year period, with equal monthly payments of principal and interest’; and by revising clause (ii) to read as follows: ‘(ii) APPLICABLE INTEREST RATES- Exception as provided in clause (iii), loans made by the Administration under this subsection to an intermediary shall bear an interest rate equal to the rate of interest on comparable 5 year obligations of the United States Treasury.

TITLE II

    SEC. 201. Section 7(a)(2)(B)(iv) of the Small Business Act is amended to read as follows:

      ‘. . . (iv) not more than 90 percent of the financing outstanding at the time of disbursement if such financing is an extension or a revolving line of credit made under paragraph (14) and not less than 90 percent of the financing outstanding at the time of disbursement if such financing is a loan under paragraph (16).’.

    SEC. 202. Section 7(a)(14) of the Small Business Act is amended to read as follows:

      ‘(14) (A) The Administration under this subsection may provide extensions, specifically including guarantees of standby letters of credit and revolving lines of credit for export purposes, and financing to enable small business concerns, including small business export trading companies and small business export management companies, to develop foreign markets. A bank or participating lending institution may establish such rate of interest on extensions, revolving lines of credit and financing made under this paragraph as may be legal and reasonable.’.

    SEC. 203. Section 7(a)(3)(B) of the Small Business Act is amended to read as follows:

      ‘. . . if the total amount outstanding and committed (on a deferred basis) solely for the purposes provided in paragraph (16) to the borrower from the Business Guaranteed Loan Financing Account established by this Act would exceed $1,000,000 such amount to be in addition to any financing solely for working capital, supplies, or revolving lines of credit for export purposes up to a maximum of $750,000: Provided, however, That in no event may the aggregate amount outstanding and committed by the Administration under this subsection exceed $1,250,000 . . .’.

TITLE III

    SEC. 301. Sections 8(b)(2), (3) and (4) of the Small Business Act are amended by inserting the words ‘and other’ after the word ‘small’ wherever it appears.

TITLE IV

    SEC. 401. Section 28(2)(g) of the Small Business Act is deleted and in its place the following is substituted:

      ‘(g) There is established within the Administration an Office of Women’s Business Ownership which shall be responsible for the administration under the supervision by the Administration of all authority conferred by this section. Such office shall be headed by a director who shall be appointed by the Administrator.’.

TITLE V

    SEC. 501. Section 8(b)(1)(A) of the Small Business Act is amended by adding at the end thereof the following sentence: ‘Notwithstanding any other provision of law, the authority provided by this subparagraph shall remain available until expressly repealed.’.

    SEC. 502. Section 411(a)(3) of the Small Business Investment Act of 1958 is amended by adding the following sentence at the end thereof: ‘Notwithstanding any other provision of law, the authority granted by this paragraph shall remain available until expressly repealed.’.

    SEC. 503. Section 5(b)(8) of the Small Business Act is amended by deleting the words ‘not in excess of six months’.

    SEC. 504. The second sentence of section 732 of Public Law 100-656 is repealed.

    SEC. 505. Section 4(c) of the Small Business Act is amended to read as follows:

    ‘(c) (1) There is hereby established in the Treasury one Loan Liquidation Fund. All repayment of loans and debentures, payments of interest, and other receipts arising out of transactions entered into by the Administration pursuant to sections 5(e), 5(g), 7(a), 7(b), 7(c)(2), 7(e), 7(h), 7(l), 7(m), and 8(a) of this Act, and titles III, IV, and V of the Small Business Investment Act of 1958, prior to October 1, 1991, shall be paid into such Loan Fund Liquidating Account. Balances existing in those revolving funds, as in effect immediately prior to the effective date of this paragraph, shall be transferred into such Loan Liquidation Fund. This Loan Liquidation Fund shall have available, without fiscal year limitation, such funds as are necessary to finance its operational needs.

    (2) The Administration shall submit to the Committees on Small Business and Appropriations of the Senate and the House of Representatives, as soon as possible after the beginning of each fiscal year, a full and complete report on the status of the Loan Liquidation Fund established pursuant to paragraph (1).’.

    SEC. 506. Section 4(c)(5)(B)(ii) of the Small Business Act is amended to read as follows:

      ‘(ii) The Administration shall pay into the miscellaneous receipts of the Treasury following the close of each fiscal year, the actual interest it collects during that fiscal year on all financings made under the authority of this Act.’.

    SEC. 507. Section 3(a)(2) of the Small Business Act is amended to read as follows:

      ‘. . . (2) In addition to the criteria specified in paragraph (1), the Administrator may specify detailed definitions or standards for example, by number of employees or dollar volume of business, by which a business concern is to be recognized as a small business concern for the purposes of this Act or any other Act. Unless specifically authorized by statute, the Secretary of a department or the head of a Federal agency, other than the Administrator of the Small Business Administration, may not prescribe for the use of such department or agency a size standard for categorizing a business concern as a small business concern, unless such proposed size standard--

        ‘(A) is being proposed after an opportunity for public notice and comment;

        ‘(B) provides for determining, over a period of not less than 3 years--

          ‘(i) the size of a manufacturing concern as measured by its average employment based upon employment during each of the concern’s pay periods for the preceding completed twelve calendar months; or

          ‘(ii) the size of a concern providing services on basis of the annual average gross receipts of the concern over a period of not less than 3 years; and

        ‘(C) is approved by the Administrator.

      ‘(3) When establishing or approving any size standard pursuant to paragraph (2), the Administrator shall consider variations in economic activity from industry to industry unless the Administrator determines that size standards should not vary in order to meet program needs.’.

    SEC. 508. Section 5(b) of the Small Business Act is amended by deleting the word ‘and’ at the end of paragraph (10) thereof, by removing the ‘.’ at the end of paragraph (11) thereof and replacing it with ‘, and’ and (b) adding a new paragraph (12) which reads as follows:

      ‘. . . (12) to impose reasonable fees to be charged in connection with applications for assistance, and the provision of assistance under this Act and the Small Business Investment Act of 1958 and to retain such fees to offset the costs of administration of such assistance.’.

    SEC. 509. Section 8(b) of the Small Business Act is amended by deleting the word ‘and’ at the end of paragraph (15), by striking the period at the end of paragraph 8(b)(16) and replacing it with ‘; and’, and by adding a new paragraph 8(b)(17) which reads as follows:

      ‘. . . (17) to charge and collect such fees as may be necessary to cover all costs associated with the production and dissemination of compilations of information produced by the Administration under the authority of the Small Business Act and the Small Business Investment Act of 1958, and to retain such fees and utilize such fees to offset the costs of production and dissemination of such compilations of information.’.

TITLE VI

    SEC. 601. Sections 20(k) through 20(p) of the Small Business Act are repealed and the following is substituted in their place:

    ‘(k) The following program levels are authorized for fiscal year 1995:

      ‘(1) For the programs authorized by this Act, the Administration is authorized to make $13,910,000,000 in deferred participation loans and other financings; and of such sum, the Administration is authorized to make $11,500,000,000 in general business loans as provided in section 7(a), $110,000,000 in loans as provided in section 7(m), and $2,300,000,000 in financings as provided in section 7(a)(13) and section 504 of the Small Business Investment Act of 1958.

      ‘(2) For the programs authorized by title III of the Small Business Investment Act of 1958, the Administration is authorized to make $23,000,000 in purchases of preferred stock, $275,000,000 in guarantees of debentures of which $65,000,000 is authorized for guarantees of debentures of companies operating pursuant to section 301(d) of such Act, and $550,000,000 in guarantees of participating securities.

      ‘(3) For the programs authorized by part B of title IV of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $2,000,000,000.

    ‘(l) There are authorized to be appropriated to the Administration for fiscal year 1995 such sums as may be necessary to carry out subsection (k), including salaries and expenses of the Administration.

    ‘(m) The following program levels are authorized for fiscal year 1996:

      ‘(1) For the programs authorized by this Act, the Administration is authorized to make $17,475,000,000 in deferred participation loans and other financings; and of such sum, the Administration is authorized to make $13,500,000,000 in general business loans as provided in section 7(a), $175,000,000 in loans as provided in section 7(m), and $3,800,000,000 in financings as provided in section 7(a)(13) and section 504 of the Small Business Investment Act of 1958.

      ‘(2) For the programs authorized by title III of the Small Business Investment Act of 1958, the Administration is authorized to make $24,000,000 in purchases of preferred stock, $320,000,000 in guarantees of debentures of which $70,000,000 is authorized for guarantees of debentures of companies operating pursuant to section 301(d) of such Act, and $1,100,000,000 in guarantees of participating securities.

      ‘(3) For the programs authorized by part B of title IV of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $2,000,000,000.

    ‘(n) There are authorized to be appropriated to the Administration for fiscal year 1996, such sums as may be necessary to carry out subsection (m), including salaries and expenses of the Administration.

    ‘(o) The following program levels are authorized for fiscal year 1997:

      ‘(1) For the programs authorized by this Act, the Administration is authorized to make $21,450,000,000 in deferred participation loans and other financings; and of such sum, the Administration is authorized to make $15,500,000,000 in general business loans as provided in section 7(a), $250,000,000 in loans as provided in section 7(m), and $5,700,000,000 in financings as provided in section 7(a)(13) and section 504 of the Small Business Investment Act of 1958.

      ‘(2) For the programs authorized by title III of the Small Business Investment Act of 1958, the Administration is authorized to make $25,000,000 in purchases of deferred stock, $385,000,000 in guarantees of debentures of which $75,500,000 is authorized for guarantees of debentures of companies operating pursuant to section 301(d) of such Act, and $1,700,000,000 in guarantees of participating securities.

      ‘(3) For the programs authorized by part B of title IV of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed $2,000,000,000.

    ‘(p) There are authorized to be appropriated to the Administration for fiscal year 1997, such sums as may be necessary to carry out subsection (o), including salaries and expenses of the Administration.’.