Page:United States Statutes at Large Volume 108 Part 5.djvu/690

 108 STAT. 4180 PUBLIC LAW 103-403—OCT. 22, 1994 "(q)(l) There are authorized to be appropriated to the Administration for fiscal year 1997 such sums as may be necessary to carry out the provisions of this Act, including administrative expenses and necessary loan capital for disaster loans pursuant to section 7(b), and to carry out the provisions of the Small Business Investment Act of 1958, including salaries and expenses of the Administration. "(2) Notwithstanding paragraph (1), for fiscal year 1997— "(A) no funds are authorized to be provided to carry out the loan program authorized by section 7(a)(21) except by transfer from another Federal department or agency to the Administration, unless the program level authorized for general business loans under subsection (p)(2)(A) is fully funded; and "(B) the Administration may not approve loans on behalf of the Administration or on behalf of any other department or agency, by contract or otherwise, under terms and conditions other than those specifically authorized under this Act or the Small Business Investment Act of 1958, except that it may approve loans under section 7(a)(21) of this Act in gross amounts of not more than $1,250,000.". TITLE II—FINANCIAL ASSISTANCE PROGRAMS SEC. 201. MICROLOAN FINANCING PILOT. Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended by adding at the end the following new paragraph: "(12) DEFERRED PARTICIPATION LOAN PILOT.— In lieu of making direct loans to intermediaries as authorized in paragraph (1)(B), during fiscal years 1995 through 1997, the Administration may, on a pilot program basis, participate on a deferred basis of not less than 90 percent and not more than 100 percent on loans made to intermediaries by a for-profit or nonprofit entity or by alliances of such entities, subject to the following conditions: "(A) NUMBER OF LOANS.— In carrying out this paragraph, the Administration shall not participate in providing financing on a deferred basis to more than 10 intermediaries in urban areas or more than 10 intermediaries in rural areas. "(B) TERM OF LOANS.— The term of each loan shall be 10 years. During the first year of the loan, the intermediary shall not be required to repay any interest or principal. During the second through fifth years of the loan, the intermediary shall be required to pay interest only. During the sixth through tenth years of the loan, the intermediary shall be required to make interest pay- ments and fully amortize the principal. "(C) INTEREST RATE.— The interest rate on each loan shall be the rate specified by paragraph (3)(F) for direct loans.". SEC. 202. ELIGIBILITY OF NATIVE AMERICAN TRIBAL GOVERNMENTS TO BE MICROLOAN INTERMEDIARIES. Section 7(m)(ll)(A) of the Small Business Act (15 U.S.C. 636(m)(llXA)) is amended—

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