Sec. 102. Fee reductions
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In this subsection, the term covered business loan means a loan— of not more than $2,000,000; that is guaranteed by the Administrator under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ); for which the application is approved on or after the date of enactment of this Act; and that is made to a Puerto Rico business. During the period beginning on the date of enactment of this Act and ending on the Oversight Board termination date, and to the extent that the cost of such elimination or reduction of fees is offset by appropriations, with respect to each covered business loan, the Administrator shall— in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act, collect no fee or reduce fees to the maximum extent possible; and in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act, collect no fee or reduce fees to the maximum extent possible.
During the period beginning on the date of enactment of this Act and ending on the Oversight Board termination date, and to the extent the cost of such elimination in fees is offset by appropriations, with respect to each loan of not more than $2,000,000 guaranteed by the Administrator under title V of the Small Business Investment Act of 1958 ( 15 U.S.C. 695 et seq.) with respect to a development company that has its principal office located in Puerto Rico and for which an application is approved or pending approval on or after the date of enactment of this Act— 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 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.
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 under paragraph (1)(B). The reimbursement 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 under paragraph (1)(B). To the extent that amounts are made available to the Administrator for the purpose of fee eliminations or reductions under subsection (a), the Administrator shall— first use any amounts provided to eliminate or reduce fees paid by borrowers under clauses (i), (ii), and
(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; to the extent amounts provided remain after use in accordance with paragraph (1), use any amounts provided to eliminate or reduce fees under section 7(a)(23)(A) of the Small Business Act ( 15 U.S.C. 636(a)(23)(A) ) paid by lenders with assets of not more than $1,000,000,000, as of the date of enactment of this Act; and to the extent amounts provided remain after use in accordance with paragraphs
(1)and (2), use any remaining amounts provided to reduce fees under section 7(a)(23)(A) of the Small Business Act paid by lenders other than those described under paragraph (2).
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