Sec. 2. Changes to the 7(a) loan guaranty program
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(a)loan guaranty program During the 1-year period following the date of enactment of this Act, 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) )— 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) ), the Administrator shall collect no fee or reduce fees to the maximum extent possible; and for which the application is approved on or after the date of enactment of this Act, the Administrator shall, 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. Section 7(a)(2) of the Small Business Act ( 15 U.S.C. 636(a)(2) ) is amended— in the matter preceding subparagraph (A), by striking (E), and
(F)and inserting and
(E); in subparagraph (A), by striking equal to— and all that follows through the end of the subparagraph and inserting equal to 95 percent of the balance of the financing outstanding at the time of disbursement of the loan. ; by striking subparagraphs
(D)and
(E)and inserting the following: In an agreement to participate in a loan on a deferred basis under paragraph (31), the participation by the Administration shall be equal to— 75 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance exceeds $150,000; or 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. ; and by redesignating subparagraph
(F)as subparagraph (E). Effective 1 year after the date of enactment of this Act, section 7(a)(2) of the Small Business Act ( 15 U.S.C. 636(a)(2) ) is amended— in the matter preceding subparagraph (A), by striking and
(E)and inserting (E), and
(F); in subparagraph (A), by striking equal to 95 percent of the balance of financing outstanding at the time of disbursement of the loan. and inserting “equal to— 75 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance exceeds $150,000; or 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. ; by redesignating subparagraph
(E)as subparagraph (F); and by striking subparagraph
(D)and inserting the following: In an agreement to participate in a loan on a deferred basis under the Export Working Capital Program established pursuant to paragraph (14)(A), such participation by the Administration shall be 90 percent. In an agreement to participate in a loan on a deferred basis under paragraph (16), the participation by the Administration may not exceed 90 percent. . Section 7(a)(3) of the Small Business Act ( 15 U.S.C. 636(a)(3) ) is amended— in subparagraph (A)— by striking $3,750,000 and inserting $9,500,000 ; and by striking $5,000,000 and inserting $10,000,000 ; and in subparagraph (B)— by striking $4,500,000 and inserting $9,500,000 ; and by striking $5,000,000 and inserting $10,000,000 . Effective 1 year after the date of enactment of this Act, section 7(a)(3) of the Small Business Act ( 15 U.S.C. 636(a)(3) ) is amended— in subparagraph (A)— by striking $9,500,000 and inserting $3,750,000 ; and by striking $10,000,000 and inserting $5,000,000 ; and in subparagraph (B)— by striking $9,500,000 and inserting $4,500,000 ; and by striking $10,000,000 and inserting $5,000,000 . Not later than 10 days after the date of enactment of this Act, the Administrator shall issue guidance that— temporarily updates the standard operating procedures of the Administration to provide requirements for appropriate lending given the economic conditions and considerations as of the date of enactment of this Act; and shall be utilized with respect to all approval and subsequent actions taken on loans made under such section 7(a) during the 1-year period following the date of enactment of this Act.
(a)loan payments Section 1112 of the CARES Act ( 15 U.S.C. 9011 ) is amended— in subsection (c)— in paragraph (1)— in the matter preceding subparagraph (A), by inserting or loan described in subparagraph
(D)after covered loan ; in subparagraph (B), by striking and at the end; in subparagraph (C), by striking the period at the end and inserting ; and ; and by adding at the end the following: with respect to a loan that is guaranteed by the Administration under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), including a loan made under the Community Advantage Pilot Program of the Administration and a loan made under paragraph
(36)of such section 7(a), that was made during the period beginning on the date of enactment of this subparagraph and ending on the date that is 1 year after such date of enactment, for the 1-year period beginning with the first payment due on the loan. ; in paragraph (2), by inserting or loan described in paragraph (1)(D), as applicable, after covered loan ; and in paragraph (3), by inserting or loan described in paragraph (1)(D), as applicable, after covered loan ; in subsection (d)(2)— by striking covered loan durations and inserting the duration of any covered loan or loan described in subsection (c)(1)(D) ; and by inserting or loans described in subsection (c)(1)(D), as applicable, after covered loans ; and in subsection (e)— by inserting or loan described in subsection (c)(1)(D) after a covered loan ; and by inserting or loan described in subsection (c)(1)(D), as applicable, after the covered loan .
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