Small Business Loan Revitalization Act - Amends the Small Business Act (the Act) to provide requirements for the making of a Small Business Administration (SBA) guaranteed loan to a small business within 120 days after a commercial loan is obtained by that small business. Makes such small business ineligible for the SBA loan unless the commercial loan does not exceed $2 million.
Allows the commercial loan to be: (1) made by the lender providing the guaranteed financing or by a different lender; (2) secured by a senior lien; and (3) made by a lender in the Preferred Lenders Program. Requires a fee to be paid by the lender to the SBA if the commercial loan has a senior credit position to that of the guaranteed loan.
Prohibits a small business from receiving combination financing (an SBA-guaranteed loan and a commercial loan) in an amount greater than $4 million.
Makes current SBA-guaranteed loan fees inapplicable to loans approved from the day after enactment of this Act until September 30, 2004. Applies a loan fee with respect to loans approved during the period beginning on: (1) October 1, 2002, and ending on the date of enactment of this Act of 0.25 percent of the outstanding balance of the deferred participation share of the loan; and (2) the first day after the enactment of this Act and ending on September 30, 2004, of 0.35 percent of such outstanding balance.
Directs the SBA to reconsider, before considering any other application, any application submitted on or after December 23, 2003, and before January 8, 2004, for an SBA loan guarantee that was rejected based on the loan amount requested if the applicant is otherwise eligible for financial assistance under the Act. Requires any small business that received SBA export working capital financing before January 1, 2004, and requests a financing renewal to have their request approved regardless of the size of such financing, if the small business is otherwise eligible for such financing.
Directs the SBA, ten days after the enactment of this Act, to allow general small business start-up loans up to the maximum amount permitted under the Act.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2193 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2193
To improve small business loan programs, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 10, 2004
Ms. Snowe (for herself and Mr. Bond) introduced the following bill;
which was read twice and referred to the Committee on Small Business
and Entrepreneurship
_______________________________________________________________________
A BILL
To improve small business loan programs, 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 ``Small Business Loan Revitalization
Act''.
SEC. 2. COMBINATION FINANCING.
(a) 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 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 of which no portion is guaranteed by the
Federal government.
``(B) 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
commercial loan is obtained by the same small business
concern, shall be subject to the provisions of this
paragraph.
``(C) Commercial loan amount.--A small business
concern shall not be eligible to receive combination
financing under this paragraph unless the commercial
loan obtained by the small business concern does not
exceed $2,000,000.
``(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 0.5 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. All proceeds from the loan guaranteed
under this subsection 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.
``(F) Deferred participation loan eligibility.--
``(i) Maximum amount.--A small business
concern may not receive combination financing
under this paragraph in an amount greater than
$4,000,000.
``(ii) Net amount.--The net amount of the
deferred participation share shall not exceed
the maximum amount of a net guarantee provided
under paragraph (3)(A).
``(G) Deferred participation loan security.--A loan
guaranteed under this subsection may be secured by a
subordinated lien.
``(H) Availability.--Combination financing shall be
available under this paragraph notwithstanding any
maximum limitation on loans imposed by the
Administration.''.
(b) Sunset Date.--The amendment made by subsection (a) shall take
effect on the first day after the date of enactment of this Act and is
repealed on October 1, 2004.
SEC. 3. LOAN GUARANTEE FEES.
(a) In General.--Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended--
(1) in paragraph (18)(B), by adding at the end the
following: ``This subparagraph shall not apply to any loan
approved during the period beginning on the first day after the
date of enactment of paragraph (23)(A)(iii) and ending on
September 30, 2004.''; and
(2) in paragraph (23), by amending subparagraph (A) to read
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) First temporary percentage.--With
respect to loans approved during the period
beginning on October 1, 2002 and ending on the
date of enactment of this clause, the annual
fee assessed and collected under clause (i)
shall be equal to 0.25 percent of the
outstanding balance of the deferred
participation share of the loan.
``(iii) Second temporary percentage.--
During the period beginning on the first day
after 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 0.35 percent of the outstanding
balance of the deferred participation share of
the loan.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on the first day after the date of enactment of this Act
and are repealed on October 1, 2004.
SEC. 4. RECONSIDERATION OF LOAN APPLICATIONS REJECTED BASED ON LOAN
AMOUNT.
(a) Consideration of Loan Application Submitted Before January 8,
2004.--Beginning on the first day after the date of enactment of this
Act, the Small Business Administration shall reconsider any application
submitted on or after December 23, 2003 and before January 8, 2004,
under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) that
was rejected based on the loan amount requested before considering any
other application if the applicant is otherwise eligible for financial
assistance under that section.
(b) Export Working Capital.--Any small business that received
financing under section 7(a)(14) of the Small Business Act (15 U.S.C.
636(a)(14)) before January 1, 2004, and requests a renewal of such
financing, shall have their request approved regardless of the size of
such financing (subject to the limitations in section 7(a)(3) of such
Act) if the small business is otherwise eligible for such financing
under that section.
(c) Maximum Loan Amount.--Ten days after the date of enactment of
this Act, the Small Business Administration shall allow loans under
section 7 of the Small Business Act (15 U.S.C. 636) up to the maximum
amount permitted under the Small Business Act.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR 3/12/2004 S2559-2560)
Read twice and referred to the Committee on Small Business and Entrepreneurship. (text of measure as introduced: CR S2560-2561)
Sponsor introductory remarks on measure. (CR S3595)
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