Small Business Programs Improvement Act of 1996

Summary

TABLE OF CONTENTS: Title I: Amendments to Small Business Act Title II: Amendments to Small Business Investment Act Small Business Programs Improvement Act of 1996 - Title I: Amendments to Small Business Act - Amends the Small Business Act (the Act) to direct the Administrator of the Small Business Administration (SBA) to establish a loan risk management data base capable of providing timely and accurate information for identifying loan underwriting, collections, recovery, and liquidation problems. Outlines information to be maintained in such database. Provides deadlines for database operational capability. (Sec. 103) Allows the Administrator to designate as a certified lender only a lender who has made in each of the preceding two fiscal years: (1) eight or more loans to non-rural small businesses; and (2) four or more loans to rural small businesses. Provides for suspension and revocation of such designation. Allows such lenders to use uniform and simplified loan forms. Prohibits more than ten percent of the total small business loans guaranteed by the SBA in a fiscal year from being awarded as part of an SBA pilot program. States that the Administrator may not prohibit a lender from securitizing the non-guaranteed portion of any SBA loan. Limits the service fees to be paid to the lender in the event of SBA payment of a claim under an SBA-guaranteed loan. Provides for appropriate interest payments for banks or other institutions making a claim for payment on such a loan. Directs the Administrator to: (1) complete the transfer of SBA loan servicing functions from district offices to centralized loan servicing centers; and (2) implement the Preferred Lender standard review program. Requires the Administrator to conduct, through a private contractor, a comprehensive assessment of the performance of SBA small business loan programs, addressing specified matters, including default rates. Requires a report concerning such assessment: (1) from the contractor to the Administrator; and (2) from the Administrator to the small business committees. (Sec. 104) Amends the SBA disaster loan program to provide a revised interest rate for disasters commencing after October 1, 1996. Directs the Administrator to carry out, and report to the Congress on, a pilot program under which the servicing of not less than 20 percent of the total portfolio of such disaster loans will be carried out by one or more private entities under contract with the SBA. (Sec. 105) Revises the technical assistance grant and spending limitation requirements under the Microloan Demonstration Program (a program providing grants to women, low-income, and other underprivileged and minority businesses). (Sec. 106) Amends the Small Business Development Center Program to: (1) remove the requirement that such centers be located at institutions of higher education after a specified date; (2) allow such centers to charge fees of up to $15 per hour for their services; (3) provide that the Associate Administrator for Small Business Development Centers shall be responsible for the management and administration of such program and shall not be subject to the approval or concurrence of SBA officials; (4) replace references to the Deputy Associate Administrator of the Small Business Development Center program and the Deputy Associate Administrator for Management Assistance with references to the Associate Administrator; and (5) prohibit the SBA, after FY 2000, from renewing or extending any cooperative agreement with a center that has not been approved under a certification program. Provides for a waiver of such prohibition by the Associate Administrator when the center is making a good faith effort to obtain certification. (Sec. 107) Terminates after October 1, 1996 (currently, October 1, 1997) SBA authority to provide grants for demonstration projects for the benefit of small businesses owned and controlled by women. (Sec. 108) Authorizes the Administrator to foreclose a mortgage upon a breach of a covenant or condition in a debt instrument or mortgage if such instrument or mortgage authorizes acceleration or foreclosure. Outlines provisions concerning: (1) designation of a foreclosure trustee (including the authority to designate multiple trustees and to remove any such trustee); (2) required legal notice of a foreclosure sale; (3) foreclosure sale cancellation; (4) stay (suspension) of foreclosure proceedings; (5) conduct of a foreclosure sale, including bidding requirements; (6) transfer of title and possession following a foreclosure sale; (7) a recital by the foreclosure trustee in the foreclosure purchaser's deed which records the date, time, place, and purchaser with respect to the foreclosure sale; (8) legal effects of such sale; (9) disposition of sale proceeds; and (10) deficiency judgment actions against a former debtor after a foreclosure sale if the sale price is insufficient for the unpaid balance of the secured debt. (Sec. 109) Repeals miscellaneous SBA authorities to provide loans and other financial assistance under the Act. (Sec. 110) Amends the Small Business Competitiveness Demonstration Program Act of 1988 to: (1) extend such Program through FY 2000; (2) revise the establishment and termination dates of a simplified data collection system under such Program; (3) include surveying, mapping, and landscape architecture within the architectural and engineering services covered under the Program; (4) revise the enhanced goals for designated industry groups for architectural and engineering services; (5) reserve from publication a section concerning special assistance for emerging small businesses; and (6) extend reporting requirements under the Program to conform with the Program's extension. (Sec. 111) Repeals on September 29, 1996, a provision of the Small Business Guaranteed Credit Enhancement Act of 1993 which was to repeal, on September 30, 1996, provisions of such Act relating to the authority of the SBA to impose secondary marketing fees and to reduce loan guarantee percentages. Title II: Amendments to Small Business Investment Act - Amends provisions of the Small Business Investment Act of 1958 relating to the development company debenture program be require that not less than 50 percent of the total cost of plant acquisition, construction, conversion, or expansion projects under such program be derived from State or local governments, banks or other financial institutions, foundations or other nonprofit institutions, or the small business concern receiving assistance through a body authorized under the program. Provides specified requirements with respect to the funding derived from a participating small business concern. Increases the loan guarantee fee authorized to be collected by the SBA for development company debentures. Authorizes the SBA to: (1) impose a one-time participation fee on all participating institutions named above other than a small business concern; and (2) collect annually from each development company a specified percentage of the outstanding balance of any debenture guaranteed by the SBA. (Sec. 203) Provides required actions upon default of a debenture guaranteed by the SBA, including purchase or acceleration of the debenture and prepayment penalties. (Sec. 204) Directs the Administrator to carry out a loan liquidation pilot program with respect to no more than 35 and no less than 15 development companies authorized to make loans and issue debentures under the Act. Authorizes participating development companies, as part of the pilot program, to perform all liquidation and foreclosure functions with respect to loans guaranteed by the SBA. Outlines SBA authority under the pilot program. Requires a report from the Administrator to the small business committees on the pilot program. (Sec. 205) Amends a provision of the Act relating to the registration of certificates representing ownership of a portion of one or more SBA-guaranteed small business loans to state that nothing shall prohibit the utilization of a book entry or other electronic form of registration for such certificates. Authorizes the Administrator to use the book-entry system of the Federal Reserve System. Provides identical book-entry authority (without reference to the use of the Federal Reserve System) for certificates sold under the small business investment company program and the development company program.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 26 June 1996

   Introduced

   Referred to the House Committee on Small Business.

   Source: IntroReferral

2. 26 June 1996

   Introduced

   Introduced in House

   Source: IntroReferral

3. 26 June 1996

   Introduced

   Introduced in House

   Source: IntroReferral

4. 10 July 1996

   Committee

   Committee Consideration and Mark-up Session Held.

   Source: Committee

5. 18 July 1996

   Reported

   Ordered to be Reported (Amended) by Voice Vote.

   Source: Committee

6. 18 July 1996

   Committee

   Committee Consideration and Mark-up Session Held.

   Source: Committee

7. 2 August 1996

   Reported

   Reported (Amended) by the Committee on Small Business. H. Rept. 104-750.

   Source: Committee

8. 2 August 1996

   Calendars

   Placed on the Union Calendar, Calendar No. 396.

   Source: Calendars

9. 2 August 1996

   Reported

   Reported (Amended) by the Committee on Small Business. H. Rept. 104-750.

   Source: Committee

10. 4 September 1996

    Reported

    Rules Committee Resolution H. Res. 516 Reported to House. Rule provides for consideration of H.R. 3719 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit. Measure will be read by title. Bill is open to amendments. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the the nature of a substitue recommended by the Committee on Small Business now printed in the bill. The first three sections and each title shall be considered as read. Points of order against the committee amendment for failure to comply with clause 5(a) of rule XXI shall be waived.

    Source: Floor

11. 5 September 1996

    Passed

    Motion to reconsider laid on the table Agreed to without objection.

    Source: Floor

12. 5 September 1996

    Vote

    On passage Passed by the Yeas and Nays: 408 - 0 (Roll no. 406).

    Source: Floor

13. 5 September 1996

    Vote

    Passed/agreed to in House: On passage Passed by the Yeas and Nays: 408 - 0 (Roll no. 406).

    Source: Floor

14. 5 September 1996

    Passed

    The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union.

    Source: Floor

15. 5 September 1996

    Floor

    The previous question was ordered pursuant to the rule.

    Source: Floor

16. 5 September 1996

    Floor

    The House rose from the Committee of the Whole House on the state of the Union to report H.R. 3719.

    Source: Floor

17. 5 September 1996

    Floor

    Rule provides for consideration of H.R. 3719 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit. Measure will be read by title. Bill is open to amendments. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on Small Business now printed in the bill. The first three sections and each title shall be considered as read. Points of order against the committee amendment for failure to comply with clause 5(a) of rule XXI shall be waived.

    Source: Floor

18. 5 September 1996

    Floor

    The Speaker designated the Honorable Mac Collins to act as Chairman of the Committee.

    Source: Floor

19. 5 September 1996

    Floor

    House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 516 and Rule XXIII.

    Source: Floor

20. 5 September 1996

    Floor

    Considered under the provisions of rule H. Res. 516. (consideration: CR H10078-10089)

    Source: Floor

21. 5 September 1996

    Passed

    Rule H. Res. 516 passed House.

    Source: Floor

22. 6 September 1996

    Introduced

    Received in the Senate.

    Source: IntroReferral

Votes

No vote records are attached yet.

Versions

• Received in Senate · 6 September 1996 · Official file
• Engrossed in House · 5 September 1996 · Official file
• Reported in House · 2 August 1996 · Official file
• Introduced in House · 26 June 1996 · Official file

Documents

10 official files

• Received in Senate (text)

  Received in Senate · EN · 6 September 1996

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• Received in Senate (PDF)

  Received in Senate · EN · 6 September 1996

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• Engrossed in House (text)

  Engrossed in House · EN · 5 September 1996

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• Engrossed in House (PDF)

  Engrossed in House · EN · 5 September 1996

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• Passed House amended

  summary · EN · 5 September 1996

  Open at official source

• Reported in House (text)

  Reported in House · EN · 2 August 1996

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• Reported in House (PDF)

  Reported in House · EN · 2 August 1996

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• Introduced in House (text)

  Introduced in House · EN · 26 June 1996

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• Introduced in House (PDF)

  Introduced in House · EN · 26 June 1996

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 26 June 1996

  Open at official source

Sponsors

• Rep. Meyers, Jan [R-KS-3] · R · Sponsor
• · hssm00 · Standing

Related records

• related to → Providing for consideration of the bill (H.R. 3719) to amend the Small Business Act and Small Business Investment Act of 1958.