[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6303 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 6303
To temporarily reduce fees for certain loans under the Small Business
Administration, to increase guarantee amounts on certain loans, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 19, 2020
Mr. Crow introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To temporarily reduce fees for certain loans under the Small Business
Administration, to increase guarantee amounts on certain loans, 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 ``Increasing Access to Capital Act of
2020''.
SEC. 2. TEMPORARY FEE REDUCTIONS.
(a) Purpose.--The purpose of the section is to waive borrower and
lender fees on loans, including a permanent fix to waive fees for
veterans and their spouses.
(b) Administrative Fee Waiver.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, and to
the extent that the cost of such elimination or reduction of
fees is offset by appropriations, with respect to each loan
guaranteed under section 7(a) of the Small Business Act (15
U.S.C. 636(a)) (including a recipient of assistance under the
Community Advantage Pilot Program of the Administration) for
which an application is approved or pending approval on or
after the date of enactment of this Act, the Administrator
shall--
(A) in lieu of the fee otherwise applicable under
section 7(a)(23)(A) of the Small Business Act (15
U.S.C. 636(a)(23)(A)), collect no fee or reduce fees to
the maximum extent possible; and
(B) in lieu of the fee otherwise applicable under
section 7(a)(18)(A) of the Small Business Act (15
U.S.C. 636(a)(18)(A)), collect no fee or reduce fees to
the maximum extent possible.
(2) Application of fee eliminations or reductions.--To the
extent that amounts are made available to the Administrator for
the purpose of fee eliminations or reductions under paragraph
(1), the Administrator shall--
(A) first use any amounts provided to eliminate or
reduce fees paid by small business borrowers under
clauses (i) through (iii) of section 7(a)(18)(A) of the
Small Business Act (15 U.S.C. 636(a)(18)(A)), to the
maximum extent possible; and
(B) then use any amounts provided to eliminate or
reduce fees under 7(a)(23)(A) of the Small Business Act
(15 U.S.C. 636(a)(23)(A)).
(c) Exception To Guarantee Fee Waiver for Veterans.--Section
7(a)(31)(G) of the Small Business Act (15 U.S.C. 636(a)(31)(G)) is
amended--
(1) by striking clause (ii); and
(2) by redesignating clause (iii) as clause (ii).
(d) Temporary Fee Elimination for the 504 Loan Program.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, and to
the extent the cost of such elimination in fees is offset by
appropriations, with respect to each project or loan guaranteed
by the Administrator pursuant to title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an
application is approved or pending approval on or after the
date of enactment of this Act--
(A) the Administrator shall, in lieu of the fee
otherwise applicable under section 503(d)(2) of the
Small Business Investment Act of 1958 (15 U.S.C.
697(d)(2)), collect no fee; and
(B) a development company shall, in lieu of the
processing fee under section 120.971(a)(1) of title 13,
Code of Federal Regulations (relating to fees paid by
borrowers), or any successor thereto, collect no fee.
(2) Reimbursement for waived fees.--
(A) In general.--To the extent that the cost of
such payments is offset by appropriations, the
Administrator shall reimburse each development company
that does not collect a processing fee pursuant to
paragraph (1)(B).
(B) Amount.--The payment to a development company
under subparagraph (A) shall be in an amount equal to
1.5 percent of the net debenture proceeds for which the
development company does not collect a processing fee
pursuant to paragraph (1)(B).
SEC. 3. GUARANTEE AMOUNTS.
(a) Purpose.--The purpose of this section is to increase loan
guarantee amounts in order to mitigate risk for lenders and keep credit
flowing, including an emphasis on underserved borrowers.
(b) 7(a) Loan Guarantees.--
(1) In general.--Section 7(a)(2)(A) of the Small Business
Act (15 U.S.C. 636(a)(2)(A)) is amended by striking ``), such
participation by the Administration shall be equal to'' and all
that follows through the period at the end and inserting ``or
the Community Advantage Pilot Program of the Administration),
such participation by the Administration shall be equal to 90
percent of the balance of the financing outstanding at the time
of disbursement of the loan.''.
(2) Termination.--Effective September 30, 2021, section
7(a)(2)(A) of the Small Business Act (15 U.S.C. 636(a)(2)(A)),
as amended by paragraph (1), is amended to read as follows:
``(A) In general.--Except as provided in
subparagraphs (B), (D), and (E), in an agreement to
participate in a loan on a deferred basis under this
subsection (including a loan made under the Preferred
Lenders Program), such participation by the
Administration shall be equal to--
``(i) 75 percent of the balance of the
financing outstanding at the time of
disbursement of the loan, if such balance
exceeds $150,000; or
``(ii) 85 percent of the balance of the
financing outstanding at the time of
disbursement of the loan, if such balance is
less than or equal to $150,000.''.
(c) Express Loan Guarantee Amounts and Loan Size Increases.--
(1) Temporary modification.--Section 7(a)(31) of the Small
Business Act (15 U.S.C. 636(a)(31)) is amended--
(A) in subparagraph (A)(iv), by striking ``with a
guaranty rate of not more than 50 percent.'' and
inserting the following: ``with a guarantee rate--
``(I) for a loan in an amount less
than or equal to $350,000, of not more
than 90 percent; and
``(II) for a loan in an amount
greater than $350,000, of not more than
75 percent.''; and
(B) in subparagraph (D), by striking ``$350,000''
and inserting ``$1,000,000''.
(2) Increase in availability.--Effective September 30,
2021, section 7(a)(31) of the Small Business Act (15 U.S.C.
636(a)(31)), as amended by paragraph (1), is amended--
(A) in subparagraph (A)(iv), by striking
``guarantee rate'' and all that follows through the
period at the end and inserting ``guarantee rate of not
more than 50 percent.''; and
(B) in subparagraph (D), by striking ``$1,000,000''
and inserting ``$500,000''.
SEC. 4. MAXIMUM LOAN AMOUNT AND PROGRAM LEVELS FOR 7(A) LOANS.
(a) Purpose.--The purpose of this section is to temporarily
increase the maximum loan size in order to expand the reach of this
long-term capital.
(b) Maximum Loan Amount.--During the period beginning on the date
of enactment of this Act and ending on September 30, 2021, with respect
to any loan guaranteed under section 7(a) of the Small Business Act (15
U.S.C. 636(a)) for which an application is approved or pending approval
on or after the date of enactment of this Act, the maximum loan amount
shall be $10,000,000.
(c) Program Levels.--During each of fiscal years 2020 and 2021,
commitments for general business loans authorized under section 7(a) of
the Small Business Act (15 U.S.C. 636(a)) shall not exceed
$75,000,000,000.
SEC. 5. MAXIMUM LOAN AMOUNT FOR 504 LOANS.
(a) Purpose.--The purpose of this section is to make refinancing of
fixed assets more flexible for small business concerns seeking
immediate financing and relief from the COVID-19 crisis.
(b) Temporary Increase.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, with respect to
each project or loan guaranteed by the Administrator pursuant to title
V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.)
for which an application is approved or pending approval on or after
the date of enactment of this Act, the maximum loan amount shall be
$10,000,000.
(c) Permanent Increase for Small Manufacturers.--Effective on
October 1, 2021, section 502(2)(A)(iii) of the Small Business
Investment Act of 1958 (15 U.S.C. 696(2)(A)(iii)) is amended by
striking ``$5,500,000'' and inserting ``$10,000,000''.
<all>