[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 408 Introduced in Senate (IS)]
103d CONGRESS
1st Session
S. 408
To promote small business lending to small business concerns in States
in which there is a declining number of federally-insured financial
institutions.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 18 (legislative day, January 5), 1993
Mr. Chafee introduced the following bill; which was read twice and
referred to the Committee on Small Business
_______________________________________________________________________
A BILL
To promote small business lending to small business concerns in States
in which there is a declining number of federally-insured financial
institutions.
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 Lending and Credit
Availability Act of 1993''.
SEC. 2. LOAN GUARANTEES IN QUALIFIED STATES.
(a) Participation Authority.--Section 7(a) of the Small Business
Act (15 U.S.C. 636(a)) is amended by adding at the end the following
new paragraph:
``(22) Loan guarantees in `qualified states'.--
``(A) In general.--The Administration shall
participate in loans to small business concerns located
in qualified States on a guaranteed basis in accordance
with the provisions of this subsection, except as
otherwise specifically provided in this paragraph.
``(B) Guarantee amounts.--The Administration shall
participate in loans to small business concerns located
in qualified States on a guaranteed basis in an amount
equal to--
``(i) not less than 90 percent of the
balance of any loan outstanding at the time of
disbursement, if the loan is not less than
$200,000, nor more than $500,000; and
``(ii) not less than 95 percent of the
balance outstanding at the time of
disbursement, if such loan is less than
$200,000.
``(C) Temporary exemption from guarantee fees.--The
Administration may not collect a guarantee fee from the
lending institution or the borrower in connection with
participation in a loan on a guaranteed basis in
accordance with this paragraph during the first 2 years
of such participation. During the third, fourth, and
fifth years of participation, such fees may be
collected in an amount equal to not more than 1 percent
of the outstanding balance of the guaranteed amount.
The fee shall be payable by the participating lending
institution, and may be charged to the borrower.
``(D) In order to encourage lending institutions
and other entities making loans authorized under this
subsection to provide loans to small business concerns
located in qualified States, such lenders may retain
one-half of any fee collected pursuant to subparagraph
(C) on loans of not more than $200,000. A participating
lender may not retain any fee pursuant to this
subparagraph if the amount committed and outstanding to
the small business concern would be more than $200,000,
unless the amount in excess of $200,000 is an amount
that is not approved under the provisions of this
paragraph.
``(E) Definitions.--For purposes of this
paragraph--
``(i) the term `qualified State' means any
of the several States of the United States and
the District of Columbia if, during the 12-
month period preceding the date of enactment of
this paragraph--
``(I) not less than 1 insured
depository institution located in that
State having total assets of not less
than $100,000,000 has been closed due
to the inability to meet the demands of
depositors; or
``(II) not less than 2 insured
depository institutions located in that
State, having combined total assets of
not less than $150,000,000, have been
closed due to the inability to meet the
demands of depositors; and
``(ii) the term `insured depository
institution'--
``(I) has the same meaning as in
section 3 of the Federal Deposit
Insurance Act; and
``(II) includes an insured credit
union, as defined in section 101 of the
Federal Credit Union Act.''.
(b) Conforming Amendments.--Section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) is amended--
(1) in paragraph (6)(A), by inserting ``or loans to assist
small business concerns located in qualified States, in
accordance with paragraph (22),'' before ``any reasonable
doubt''; and
(2) in the first sentence of paragraph (18), by inserting
before the period ``, except as otherwise provided in paragraph
(22)''.
SEC. 3. PROGRAM DURATION.
This Act, and the amendments made by this Act, shall remain in
effect for a period of 5 years, beginning on the date of enactment of
this Act.
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