Page:United States Statutes at Large Volume 109 Part 1.djvu/311

 PUBLIC LAW 104-36—OCT. 12, 1995 109 STAT. 295 Public Law 104-36 104th Congress An Act To amend the Small Business Act and the Small Business Investment Act of nti9IQQ*; 1958 to reduce the cost to the Federal Government of guaranteeing certain loans — '- and debentures, and for other purposes. [S. 895] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. Small Business Lending SECTION 1. SHORT TITLE. Enhancement Act of 1995 This Act may be cited as the "Small Business Lending Enhance- 15 USC 631 note ment Act of 1995". SEC. 2. REDUCED LEVEL OF PARTICIPATION IN GUARANTEED LOANS. Section 7(a)(2) of the Small Business Act (15 U.S.C. 636(a)(2)) is amended to read as follows: " (2) LEVEL OF PARTICIPATION IN GUARANTEED LOANS.— "(A) IN GENERAL.— Except as provided in subparagraph (B), 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 $100,000; or "(ii) 80 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 $100,000. "(B) REDUCED PARTICIPATION UPON REQUEST.— "(i) IN GENERAL.— The guarantee percentage specified by subparagraph (A) for any loan under this subsection may be reduced upon the request of the participating lender. " (ii) PROHIBITION. — The Administration shall not use the guarantee percentage requested by a participating lender under clause (i) as a criterion for establishing priorities in approving loan guarantee requests under this subsection. " (C) INTEREST RATE UNDER PREFERRED LENDERS PRO- GRAM.— "(i) IN GENERAL. — The maximum interest rate for a loan guaranteed under the Preferred Lenders Program shall not exceed the maximum interest rate, as determined by the Administration, applicable to other loans guaranteed under this subsection. " (ii) PREFERRED LENDERS PROGRAM DEFINED.— For purposes of this subparagraph, the term 'Preferred

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