Sec. 100502. Funding for credit enhancement and small dollar loan funding
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/bill/117/hr/5376/eh/section-100502·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031— $1,480,600,000 to carry out paragraph
(39)of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), as added by subsection (b); and $484,000,000 for administrative expenses related to carrying out such paragraph (39), including issuing interim final rules within 90 days after the date of the enactment of this title, of which $25,000,000 is reserved for grants to conduct outreach to entities eligible to receive a loan under such paragraph (39). Section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), as amended by section 100501, is further amended— in paragraph (1)(A)(i), in the third sentence, by striking ; and and all that follows through the period at the end and inserting a period; in paragraph (4)(A), by striking the comma after prescribed by the Administration and all that follows through the period at the end and inserting a period; in paragraph (26), by inserting (except for those collected under paragraph (39)) after profits ; and by adding at the end the following: In this paragraph: The term small government contractor means a small business concern that is performing a government contract. The term small manufacturer means a small business concern that is assigned a North American Industry Classification System code beginning with 31, 32, or 33 at the time at which the small business concern receives loan under this subsection. The Administrator is authorized to originate and disburse direct loans, including through partnerships with third parties, to small business concerns. Notwithstanding paragraph (3)(C) of this subsection, a loan made in accordance with this paragraph shall be— except as provided in clause (ii), not more than $150,000; or not more than $1,000,000, if the borrower is a small manufacturer or a small government contractor. With respect to each loan made in accordance with this paragraph, the Administrator, an authorized third party, or an agent may— impose, collect, retain, and utilize fees, which may be charged to the borrower, to cover any costs associated with referring applications or originating, making, underwriting, disbursing, closing, servicing, or liquidating the loan, including any direct lending agent costs, other program or contract costs, or other agent administrative expenses; impose, collect, retain, and use fees (including unused fees and draw fees), which may be charged to the borrower on loans for revolving lines of credit; and pay third parties, including direct lending agents and financial institutions, with which the Administration partners for assistance in referring applicants or promoting, originating, making, underwriting, disbursing, closing, servicing, or liquidating loans in accordance with this paragraph on behalf of the Administration. Not later than 90 days after the date of the enactment of this paragraph, the Administrator shall issue interim final rules and revise any relevant rules to establish the terms and conditions for a direct loan, including repayment, underwriting criteria, interest rate, maturity, and other terms of a loan made in accordance with this paragraph. .
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Sec. 100502
Funding for credit enhancement and small dollar loan funding
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