SBA Emergency Authorization Extension Act of 2004 - Extends through: (1) May 15 (currently March 15), 2004, any program, authority, or provision, including any pilot program, that is authorized under the Small Business Act or the Small Business Investment Act of 1958 as of September 30, 2003; and (2) FY 2004 the Small Business Administration (SBA) guaranteed loan programs authorized under such Acts.
Amends the Small Business Act with respect to the women's business centers program to provide SBA funding authority for nonprofit organizations conducting projects for the benefit of small businesses owned and controlled by women. Increases from 30 to 48 the percentage of appropriated women's business center funds to be used during FY 2004 for sustained women's business center projects.
Amends the SBA loan guarantee program to authorize a small business to combine an SBA-guaranteed loan with a loan not guaranteed by a Federal, State, or local government. Allows the nonguaranteed loan to be made by: (1) the lender that provided the financing under the guaranteed loan or a different lender; or (2) a lender in the Preferred Lenders Program. Requires the lender to pay a fee with respect to the nonguaranteed portion of a combination loan. Provides maximum amounts of the nonguaranteed loan when processed either under the Preferred Lenders Program or by SBA staff. Terminates, until the end of FY 2004, the authority of lenders to retain loan guarantee fees collected with respect to SBA-guaranteed loans. Directs the SBA to: (1) eliminate certain loan program shutdowns or restrictions imposed by policy notices (thereby allowing for the processing and approval of previous loan applications that were not considered or approved due to a shutdown or restriction); and (2) give priority to the processing of such loans. Requires all combination loan fee proceeds to be used only to administer such loans.
Authorizes the resubmission of certain small business disaster loan applications submitted before January 1, 2003, in response to the events associated with SBA Disaster Declaration 3364 with respect to areas of New York City and Westchester County, New York.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2186 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2186
To temporarily extend the programs under the Small Business Act and the
Small Business Investment Act of 1958, through May 15, 2004, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 9, 2004
Mr. Daschle for Mr. Kerry (for himself) introduced the following bill;
which was read twice and referred to the Committee on Small Business
and Entrepreneurship
_______________________________________________________________________
A BILL
To temporarily extend the programs under the Small Business Act and the
Small Business Investment Act of 1958, through May 15, 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. SHORT TITLE.
This Act may be cited as the ``SBA Emergency Authorization
Extension Act of 2004''.
SEC. 2. SBA PROGRAM AUTHORIZATIONS.
(a) In General.--Section 1 of Public Law 108-172 (117 Stat. 2065)
is amended--
(1) in subsection (a), by striking ``March 15'' each place
that term appears and inserting ``May 15''; and
(2) by adding at the end the following:
``(c) Exception for Other Programs.--Notwithstanding subsection
(a), title V of the Small Business Investment Act of 1958 (15 U.S.C.
661 et seq.) and section 29 of the Small Business Act (15 U.S.C. 656),
including any pilot program, shall remain authorized through September
30, 2004.''.
(b) Conforming Amendment.--Section 503(f) of the Small Business
Investment Act of 1958 (15 U.S.C. 697(f)) is amended by striking
``October 1, 2003'' and inserting ``October 1, 2004''.
SEC. 3. WOMEN'S BUSINESS CENTERS.
(a) In General.--Section 29(k) of the Small Business Act (15 U.S.C.
656(k)) is amended--
(1) in paragraph (2), by adding at the end the following:
``(C) Funding priority.--Subject to available
funds, and reservation of funds, the Administration
shall, for each fiscal year, allocate--
``(i) $150,000 for each women's business
center established under subsection (b), except
for any center that requests a lesser amount;
``(ii) from the remaining funds, not more
than $125,000, in equal amounts, to each
women's business center established under
subsection (l), to the extent such funds are
reserved under subsection (k)(4)(A), except for
any center that requests a lesser amount; and
``(iii) any funds remaining after
allocations are made under clauses (i) and (ii)
to new eligible women's business centers and
eligible women's business centers that did not
receive funding in the prior fiscal year under
subsection (b).''; and
(2) in paragraph (4)(A), by adding at the end the
following:
``(v) For fiscal year 2004, 48 percent.''.
(b) Sunset Date.--The amendments made by this section are repealed
on October 1, 2004.
SEC. 4. 7(A) LOAN GUARANTEE PROGRAM.
(a) Combination Loans.--
(1) In general.--Section 7(a) of the Small Business Act (15
U.S.C. 636(a)) is amended by adding at the end the following:
``(31) Combination loans.--
``(A) Defined term.--As used in this paragraph, the
term `combination loan' means a financing comprised of
a loan guaranteed under this subsection and a loan not
guaranteed by Federal, State, or local government.
``(B) Authority.--
``(i) In general.--A small business concern
may combine a loan guaranteed under this
subsection with a loan that is not guaranteed
by Federal, State, or local government.
``(ii) Lender.--The nonguaranteed loan
under clause (i) may be made by--
``(I) the lender that provided the
financing under this subsection or a
different lender; or
``(II) a lender in the Preferred
Lenders Program.
``(iii) Security.--The nonguaranteed loan
under clause (i) may be secured by a senior
lien and the guaranteed loan under this
subsection may be secured by a subordinated lien.
``(iv) Application.--A loan guarantee under
this subsection on behalf of a small business
concern, which is approved within 120 days of
the date on which a nonguaranteed loan is
obtained by the same small business concern,
shall be subject to the provisions of this
paragraph.
``(C) Fee on combination loan.--The lender shall
pay a one-time fee of 0.5 percent of the amount of the
nonguaranteed loan if the nonguaranteed portion of the
loan has a senior credit position to the guaranteed
portion of the loan. This fee shall be in addition to
any other lender fees and shall not be charged to the
borrower.
``(D) Loan size.--
``(i) Preferred lenders program.--If the
loan guaranteed under this subsection is
processed under delegated authority under the
Preferred Lenders Program, the maximum amount
of the nonguaranteed loan may not exceed--
``(I) $1,000,000; or
``(II) a combination of $2,000,000
gross loan amount of a loan guaranteed
by the Administration and an additional
nonguaranteed loan of $1,000,000.
``(ii) Small business administration.--If
the loan guaranteed under this subsection is
processed and approved by Administration staff,
the amount of the nonguaranteed loan may not
exceed--
``(I) $2,000,000; or
``(II) a combination of $2,000,000
gross loan amount of a loan guaranteed
by the Administration and an additional
nonguaranteed loan of $2,000,000.
``(E) Use of proceeds.--All proceeds from the fee
collected under this subparagraph shall be used to
offset the cost (as defined in section 502 of the
Credit Reform Act of 1990) to the Administration of
guaranteeing loans under this subsection.''.
(b) Termination of Lender Authority to Retain Guarantee Fees.--
Section 7(a)(18)(B) of the Small Business Act (15 U.S.C. 636(a)(18)(B))
is amended to read as follows:
``(B) Retention of certain fees.--
``(i) In general.--Except as provided under
clause (ii), lenders participating in the
programs established under this subsection may
retain not more than 25 percent of a fee
collected under subparagraph (A)(i).
``(ii) Fiscal year 2004.--Beginning on the
date of enactment of this clause and ending on
September 30, 2004, the Administration or its
agent shall collect all fees under subparagraph
(A)(i). All proceeds from fees collected under
this paragraph shall be used to offset the cost
(as defined in section 502 of the Credit Reform
Act of 1990) to the Small Business
Administration of guaranteeing loans under this
subsection.''.
(c) Temporary Modification of Annual Lender Fee.--Section 7(a)(23)
of the Small Business Act (15 U.S.C. 636(a)) is amended--
(1) by striking ``0.25 percent'' and inserting ``0.35
percent''; and
(2) by adding at the end the following: ``All proceeds from
the fee collected under this paragraph shall be used to offset
the cost (as defined in section 502 of the Credit Reform Act of
1990) to the Administration of guaranteeing loans under this
subsection.''.
(d) Lifting Loan Restrictions and Priority Processing of Rejected
Applications.--
(1) In general.--The Small Business Administration shall--
(A) eliminate the program restrictions imposed by
policy notices 5000-902 and 0000-1709 to allow for the
processing and approval of loan applications cancelled
or returned because of the program shutdown or
restrictions imposed by policy notices 5000-902, 0000-
1707, or 0000-1709;
(B) permit a small business or lender to resubmit
any loan application that was not considered or
approved because of the program shutdown or
restrictions imposed by policy notices 5000-902, 0000-
1707, or 0000-1709;
(C) give priority to processing any application
submitted before January 8, 2004, that was not
considered because of the program shutdown or loan
restrictions imposed by policy notices 5000-902, 0000-1707, or 0000-
1709;
(D) give priority, to the extent possible, to
approving all eligible loans that were cancelled or
returned because of the program shutdown or
restrictions imposed by policy notices 5000-902, 0000-
1707, or 0000-1709, in the order in which the
applications were originally submitted; and
(E) give priority to processing all eligible loans
to any small business that has received financing under
section 7(a)(14) of the Small Business Act (15 U.S.C.
636(a)(14) and requests a renewal of such financing,
regardless of temporary restrictions imposed by the
Small Business Administration through the policy
notices referred to in this paragraph, and approve such
loans, if the small business is otherwise eligible for
such financing under that section.
(2) Proof of application.--An application shall not be
denied consideration or approval because the Small Business
Administration failed to retain a record of receiving an
application if the lender or borrower supplies proof that the
application was submitted by mail, fax, or electronic means
before January 8, 2004.
(3) Reservation and application of fee proceeds.--All
proceeds from fees authorized under section 7(a) of the Small
Business Act (15 U.S.C. 636(a)) shall be combined with any
amounts appropriated to carry out such section and used--
(A) first, to process and fund loan guarantees
approved pursuant to paragraph (d)(1); and
(B) second, to process and fund other loan
guarantees under section 7(a) of the Small Business
Act.
(4) Notification requirement.--The Small Business
Administration shall not make any significant policy or
administrative changes affecting the operation of the loan
program authorized under section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) unless, not later than 15 business days
before such change, the Administrator of the Small Business
Administration submits, under the Administrator's signature, a
report that specifically describes the proposed changes and the
duration of those changes to--
(A) the chairman and ranking member of the
Committee on Small Business and Entrepreneurship of the
Senate; and
(B) the chairman and ranking member of the
Committee on Small Business of the House of
Representatives.
(e) Sunset Date.--This section and the amendments made by this
section are repealed on October 1, 2004.
SEC. 5. RESUBMISSION OF DISASTER LOAN APPLICATIONS FOR CERTAIN
BUSINESSES.
(a) Resubmission of Applications.--During the 30-day period
beginning on the date of enactment of this Act, a small business
concern may resubmit an application for a loan that was not approved
under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2))
if the following conditions are met:
(1) Original application.--The small business concern
originally submitted an application before January 1, 2003, in
response to the events associated with Small Business
Administration Disaster Declaration 3364.
(2) Location.--On the date of the original submission of
the application and on the date of the resubmission, the
applicant operates a facility in Bronx, Kings, Nassau, New
York, Queens, Richmond, or Westchester county in the State of
New York.
(3) Inability to operate.--Without regard to physical
damage to a facility, the applicant was unable to operate at a
facility because of a prohibition on the use of the facility,
in whole or in part, by an order or other action of a Federal,
State, or local government (or any instrumentality of any of
the foregoing) for 20 or more consecutive days, occurring as a
result of the events associated with Small Business
Administration Disaster Declaration 3364.
(b) Standard for Approval.--The Administrator shall approve
(without regard to any requirements applicable under section 7(b) of
the Small Business Act (15 U.S.C. 636(b))), a loan with respect to any
application resubmitted under subsection (a) if the applicant has a
debt coverage ratio, as attested to by a qualified, independent, third-
party auditor, of not less than 1.15 for the applicant's last taxable
year ending before the date of the submission of the original
application. For purposes of determining the debt coverage ratio under
this subsection, the Administrator shall not take into account any
Federal or State tax lien or obligation other than a judgment lien.
(c) Minimum Loan Amount.--The Administrator shall not approve a
loan under this section for an amount that is less than 80 percent of
the documented losses shown on the application submitted under
subsection (a).
(d) Coordination With Other Loan Limits.--No loan made under this
section shall be taken into account under section 7(b)(3)(E) of the
Small Business Act (15 U.S.C. 636(b)(3)(E)).
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S2446-2448)
Read twice and referred to the Committee on Small Business and Entrepreneurship. (text of measure as introduced: CR 3/10/2004 S2547-2548)
Sponsor introductory remarks on measure. (CR S2709-2710, S2756)
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line