15 U.S.C. § 636 — Additional powers

Page 803 TITLE 15—COMMERCE AND TRADE § 636 (Pub. L. 94–305, title II, § 207, as added Pub. L. 111–240, title I, § 1602(b), Sept. 27, 2010, 124 Stat. 2551.) Editorial Notes CODIFICATION Section was not enacted as part of the Small Busi- ness Act which comprises this chapter. PRIOR PROVISIONS A prior section 634g, Pub. L. 94–305, title II, § 207, June 4, 1976, 90 Stat. 671, related to authorization of appro- priations, prior to repeal by Pub. L. 111–240, title I, § 1602(b), Sept. 27, 2010, 124 Stat. 2551. § 635. Deposit of moneys; depositaries, custodians, and fiscal agents; contributions to employees’ compensation funds (a) All moneys of the Administration not oth- erwise employed may be deposited with the Treasury of the United States subject to check by authority of the Administration. The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for the Administration in the general perform- ance of its powers conferred by this chapter. Any banks insured by the Federal Deposit Insur- ance Corporation, when designated by the Sec- retary of the Treasury, shall act as custodians and financial agents for the Administration. Each Federal Reserve bank, when designated by the Administrator as fiscal agent for the Admin- istration, shall be entitled to be reimbursed for all expenses incurred as such fiscal agent. (b) The Administrator shall contribute to the employees’ compensation fund, on the basis of annual billings as determined by the Secretary of Labor, for the benefit payments made from such fund on account of employees engaged in carrying out functions financed by the revolving fund established by section 633(c) of this title. The annual billings shall also include a state- ment of the fair portion of the cost of the ad- ministration of such fund, which shall be paid by the Administrator into the Treasury as mis- cellaneous receipts. (Pub. L. 85–536, § 2[6], July 18, 1958, 72 Stat. 387.) Editorial Notes PRIOR PROVISIONS Prior similar provisions were contained in section 206 of act July 30, 1953, ch. 282, title II, 67 Stat. 235, which was previously classified to this section. See Codifica- tion note set out under section 631 of this title. § 636. Additional powers (a) Loans to small business concerns; allowable purposes; qualified business; restrictions and limitations The Administration is empowered to the ex- tent and in such amounts as provided in advance in appropriation Acts to make loans for plant acquisition, construction, conversion, or expan- sion, including the acquisition of land, material, supplies, equipment, and working capital, and to make loans to any qualified small business con- cern, including those owned by qualified Indian tribes, for purposes of this chapter. Such financings may be made either directly or in co- operation with banks or other financial institu- tions through agreements to participate on an immediate or deferred (guaranteed) basis. These powers shall be subject, however, to the fol- lowing restrictions, limitations, and provisions: (1) IN GENERAL.— (A) CREDIT ELSEWHERE.— (i) IN GENERAL.—The Administrator has the authority to direct, and conduct over- sight for, the methods by which lenders de- termine whether a borrower is able to ob- tain credit elsewhere. No financial assist- ance shall be extended pursuant to this subsection if the applicant can obtain credit elsewhere. No immediate participa- tion may be purchased unless it is shown that a deferred participation is not avail- able; and no direct financing may be made unless it is shown that a participation is not available. (ii) LIQUIDITY.—On and after October 1, 2015, the Administrator may not guarantee a loan under this subsection if the lender determines that the borrower is unable to obtain credit elsewhere solely because the liquidity of the lender depends upon the guaranteed portion of the loan being sold on the secondary market. (B) BACKGROUND CHECKS.—Prior to the ap- proval of any loan made pursuant to this subsection, or section 503 of the Small Busi- ness Investment Act of 1958 [15 U.S.C. 697], the Administrator may verify the appli- cant’s criminal background, or lack thereof, through the best available means, including, if possible, use of the National Crime Infor- mation Center computer system at the Fed- eral Bureau of Investigation. (C) LENDING LIMITS OF LENDERS.—On and after October 1, 2015, the Administrator may not guarantee a loan under this subsection if the sole purpose for requesting the guar- antee is to allow the lender to exceed the legal lending limit of the lender. (2) LEVEL OF PARTICIPATION IN GUARANTEED LOANS.— (A) IN GENERAL.—Except as provided in subparagraphs (B), (D), (E), and (F), in an agreement to participate in a loan on a de- ferred basis under this subsection (including a loan made under the Preferred Lenders Program), such participation by the Admin- istration shall be equal to— (i) 75 percent of the balance of the fi- nancing outstanding at the time of dis- bursement of the loan, if such balance ex- ceeds $150,000; or (ii) 85 percent of the balance of the fi- nancing outstanding at the time of dis- bursement of the loan, if such balance is less than or equal to $150,000. (B) REDUCED PARTICIPATION UPON RE- QUEST.— (i) IN GENERAL.—The guarantee percent- age specified by subparagraph (A) for any loan under this subsection may be reduced upon the request of the participating lend- er. (ii) PROHIBITION.—The Administration shall not use the guarantee percentage re- Page 804 TITLE 15—COMMERCE AND TRADE § 636 quested by a participating lender under clause (i) as a criterion for establishing priorities in approving loan guarantee re- quests under this subsection. (C) INTEREST RATE UNDER PREFERRED LEND- ERS PROGRAM.— (i) IN GENERAL.—The maximum interest rate for a loan guaranteed under the Pre- ferred Lenders Program shall not exceed the maximum interest rate, as determined by the Administration, applicable to other loans guaranteed under this subsection. (ii) EXPORT-IMPORT BANK LENDERS.—Any lender that is participating in the Dele- gated Authority Lender Program of the Export-Import Bank of the United States (or any successor to the Program) shall be eligible to participate in the Preferred Lenders Program. (iii) PREFERRED LENDERS PROGRAM DE- FINED.—For purposes of this subparagraph, the term ‘‘Preferred Lenders Program’’ means any program established by the Ad- ministrator, as authorized under the pro- viso in section 634(b)(7) of this title, under which a written agreement between the lender and the Administration delegates to the lender— (I) complete authority to make and close loans with a guarantee from the Administration without obtaining the prior specific approval of the Adminis- tration; and (II) complete authority to service and liquidate such loans without obtaining the prior specific approval of the Admin- istration for routine servicing and liq- uidation activities, but shall not take any actions creating an actual or appar- ent conflict of interest. (D) PARTICIPATION UNDER EXPORT WORKING CAPITAL PROGRAM.—In an agreement to par- ticipate in a loan on a deferred basis under the Export Working Capital Program estab- lished pursuant to paragraph (14)(A), such participation by the Administration shall be 90 percent. (E) PARTICIPATION IN INTERNATIONAL TRADE LOAN.—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. (F) PARTICIPATION IN THE PAYCHECK PRO- TECTION PROGRAM.—In an agreement to par- ticipate in a loan on a deferred basis under paragraph (36), the participation by the Ad- ministration shall be 100 percent. (3) No loan shall be made under this sub- section— (A) if the total amount outstanding and committed (by participation or otherwise) to the borrower from the business loan and in- vestment fund established by this chapter would exceed $3,750,000 (or if the gross loan amount would exceed $5,000,000), except as provided in subparagraph (B); (B) if the total amount outstanding and committed (on a deferred basis) solely for the purposes provided in paragraph (16) to the borrower from the business loan and in- vestment fund established by this chapter would exceed $4,500,000 (or if the gross loan amount would exceed $5,000,000), of which not more than $4,000,000 may be used for working capital, supplies, or financings under paragraph (14) for export purposes; and (C) if effected either directly or in coopera- tion with banks or other lending institutions through agreements to participate on an im- mediate basis if the amount would exceed $350,000. (4) INTEREST RATES AND PREPAYMENT CHARGES.— (A) INTEREST RATES.—Notwithstanding the provisions of the constitution of any State or the laws of any State limiting the rate or amount of interest which may be charged, taken, received, or reserved, the maximum legal rate of interest on any financing made on a deferred basis pursuant to this sub- section shall not exceed a rate prescribed by the Administration, and the rate of interest for the Administration’s share of any direct or immediate participation loan shall not exceed the current average market yield on outstanding marketable obligations of the United States with remaining periods to ma- turity comparable to the average maturities of such loans and adjusted to the nearest one-eighth of 1 per centum, and an addi- tional amount as determined by the Admin- istration, but not to exceed 1 per centum per annum: Provided, That for those loans to as- sist any public or private organization for the handicapped or to assist any handi- capped individual as provided in paragraph (10) of this subsection, the interest rate shall be 3 per centum per annum. (B) PAYMENT OF ACCRUED INTEREST.— (i) IN GENERAL.—Any bank or other lend- ing institution making a claim for pay- ment on the guaranteed portion of a loan made under this subsection shall be paid the accrued interest due on the loan from the earliest date of default to the date of payment of the claim at a rate not to ex- ceed the rate of interest on the loan on the date of default, minus one percent. (ii) LOANS SOLD ON SECONDARY MARKET.— If a loan described in clause (i) is sold on the secondary market, the amount of in- terest paid to a bank or other lending in- stitution described in that clause from the earliest date of default to the date of pay- ment of the claim shall be no more than the agreed upon rate, minus one percent. (iii) APPLICABILITY.—Clauses (i) and (ii) shall not apply to loans made on or after October 1, 2000. (C) PREPAYMENT CHARGES (i) IN GENERAL.—A borrower who prepays any loan guaranteed under this subsection shall remit to the Administration a sub- sidy recoupment fee calculated in accord- ance with clause (ii) if— (I) the loan is for a term of not less than 15 years; (II) the prepayment is voluntary; (III) the amount of prepayment in any calendar year is more than 25 percent of the outstanding balance of the loan; and Page 805 TITLE 15—COMMERCE AND TRADE § 636 1 So in original. The ‘‘; and’’ probably should be a period. 2 See References in Text note below. 3 So in original. Probably should be ‘‘(B)’’. (IV) the prepayment is made within the first 3 years after disbursement of the loan proceeds. (ii) SUBSIDY RECOUPMENT FEE.—The sub- sidy recoupment fee charged under clause (i) shall be— (I) 5 percent of the amount of prepay- ment, if the borrower prepays during the first year after disbursement; (II) 3 percent of the amount of prepay- ment, if the borrower prepays during the second year after disbursement; and (III) 1 percent of the amount of prepay- ment, if the borrower prepays during the third year after disbursement. (5) No such loans including renewals and ex- tensions thereof may be made for a period or periods exceeding twenty-five years, except that such portion of a loan made for the pur- pose of acquiring real property or con- structing, converting, or expanding facilities may have a maturity of twenty-five years plus such additional period as is estimated may be required to complete such construction, con- version, or expansion. (6) All loans made under this subsection shall be of such sound value or so secured as reasonably to assure repayment: Provided, however, That— (A) for loans to assist any public or private organization or to assist any handicapped in- dividual as provided in paragraph (10) of this subsection any reasonable doubt shall be re- solved in favor of the applicant; (B) recognizing that greater risk may be associated with loans for energy measures as provided in paragraph (12) of this subsection, factors in determining ‘‘sound value’’ shall include, but not be limited to, quality of the product or service; technical qualifications of the applicant or his employees; sales pro- jections; and the financial status of the busi- ness concern: Provided further, That such sta- tus need not be as sound as that required for general loans under this subsection; and 1 (C) Repealed. Pub. L. 97–35, title XIX, § 1910, Aug. 13, 1981, 95 Stat. 778. On that portion of the loan used to refinance existing indebtedness held by a bank or other lending institution, the Administration shall limit the amount of deferred participation to 80 per centum of the amount of the loan at the time of disbursement: Provided further, That any authority conferred by this subparagraph on the Administration shall be exercised sole- ly by the Administration and shall not be del- egated to other than Administration per- sonnel. (7)(A) IN GENERAL.—The Administrator may defer payments on the principal and interest of such loans for a grace period and use such other methods as it deems necessary and ap- propriate to assure the successful establish- ment and operation of such concern. (B) DEFERRAL REQUIREMENTS.—With respect to a deferral provided under this paragraph, the Administrator may allow lenders under this subsection— (i) to provide full payment deferment re- lief (including payment of principal and in- terest) for a period of not more than 1 year; and (ii) to provide an additional deferment pe- riod if the borrower provides documentation justifying such additional deferment. (C) SECONDARY MARKET.— (i) IN GENERAL.—Except as provided in clause (ii), if an investor declines to approve a deferral or additional deferment requested by a lender under subparagraph (B), the Ad- ministrator shall exercise the authority to purchase the loan so that the borrower may receive full payment deferment relief (in- cluding payment of principal and interest) or an additional deferment as described in subparagraph (B). (ii) EXCEPTION.—If, in a fiscal year, the Ad- ministrator determines that the cost of im- plementing clause (i) is greater than zero, the Administrator shall not implement that clause. (8) The Administration may make loans under this subsection to small business con- cerns owned and controlled by disabled vet- erans (as defined in section 4211(3) of title 38). (9) The Administration may provide loans under this subsection to finance residential or commercial construction or rehabilitation for sale: Provided, however, That such loans shall not be used primarily for the acquisition of land. (10) The Administration may provide guar- anteed loans under this subsection to assist any public or private organization for the handicapped or to assist any handicapped indi- vidual, including service-disabled veterans, in establishing, acquiring, or operating a small business concern. (11) The Administration may provide loans under this subsection to any small business concern, or to any qualified person seeking to establish such a concern when it determines that such loan will further the policies estab- lished in section 631(c) 2 of this title, with par- ticular emphasis on the preservation or estab- lishment of small business concerns located in urban or rural areas with high proportions of unemployed or low-income individuals or owned by low-income individuals. (12)(A) The Administration may provide loans under this subsection to assist any small business concern, including start up, to enable such concern to design architecturally or engi- neer, manufacture, distribute, market, install, or service energy measures: Provided, however, That such loan proceeds shall not be used pri- marily for research and development. (b) 3 The Administration may provide de- ferred participation loans under this sub- section to finance the planning, design, or in- stallation of pollution control facilities for the purposes set forth in section 404 of the Small Business Investment Act of 1958 [15 U.S.C. 694–1]. Notwithstanding the limitation ex- pressed in paragraph (3) of this subsection, a Page 806 TITLE 15—COMMERCE AND TRADE § 636 loan made under this paragraph may not re- sult in a total amount outstanding and com- mitted to a borrower from the business loan and investment fund of more than $1,000,000. (13) The Administration may provide fi- nancings under this subsection to State and local development companies for the purposes of, and subject to the restrictions in, title V of the Small Business Investment Act of 1958 [15 U.S.C. 695 et seq.]. (14) EXPORT WORKING CAPITAL PROGRAM.— (A) IN GENERAL.—The Administrator may provide extensions of credit, standby letters of credit, revolving lines of credit for export purposes, and other financing to enable small business concerns, including small business export trading companies and small business export management companies, to develop foreign markets. A bank or partici- pating lending institution may establish the rate of interest on such financings as may be legal and reasonable. (B) TERMS.— (i) LOAN AMOUNT.—The Administrator may not guarantee a loan under this para- graph of more than $5,000,000. (ii) FEES.— (I) IN GENERAL.—For a loan under this paragraph, the Administrator shall col- lect the fee assessed under paragraph (23) not more frequently than once each year. (II) UNTAPPED CREDIT.—The Adminis- trator may not assess a fee on capital that is not accessed by the small busi- ness concern. (C) CONSIDERATIONS.—When considering loan or guarantee applications, the Adminis- tration shall give weight to export-related benefits, including opening new markets for United States goods and services abroad and encouraging the involvement of small busi- nesses, including agricultural concerns, in the export market. (D) MARKETING.—The Administrator shall aggressively market its export financing program to small businesses. (15)(A) The Administration may guarantee loans under this subsection— (i) to qualified employee trusts with re- spect to a small business concern for the purpose of purchasing, and for any trans- action costs associated with purchasing, stock of the concern under a plan approved by the Administrator which, when carried out, results in the qualified employee trust owning at least 51 per centum of the stock of the concern; and (ii) to a small business concern under a plan approved by the Administrator, if the proceeds from the loan are only used to make a loan to a qualified employee trust, and for any transaction costs associated with making that loan, that results in the qualified employee trust owning at least 51 percent of the small business concern. (B) The plan requiring the Administrator’s approval under subparagraph (A) shall be sub- mitted to the Administration by the trustee of such trust or by the small business concern with its application for the guarantee. Such plan shall include an agreement with the Ad- ministrator which is binding on such trust and on the small business concern and which pro- vides that— (i) not later than the date the loan guaran- teed under subparagraph (A) is repaid (or as soon thereafter as is consistent with the re- quirements of section 401(a) of title 26), at least 51 per centum of the total stock of such concern shall be allocated to the accounts of at least 51 per centum of the employees of such concern who are entitled to share in such allocation, (ii) there will be periodic reviews of the role in the management of such concern of employees to whose accounts stock is allo- cated, (iii) there will be adequate management to assure management expertise and con- tinuity, and (iv) with respect to a loan made to a trust, or to a cooperative in accordance with para- graph (35)— (I) a seller of the small business concern may remain involved as an officer, direc- tor, or key employee of the small business concern when a qualified employee trust or cooperative has acquired 100 percent of ownership of the small business concern; and (II) any seller of the small business con- cern who remains as an owner of the small business concern, regardless of the per- centage of ownership interest, shall be re- quired to provide a personal guarantee by the Administration. (C) In determining whether to guarantee any loan under this paragraph, the individual busi- ness experience or personal assets of em- ployee-owners shall not be used as criteria, ex- cept inasmuch as certain employee-owners may assume managerial responsibilities, in which case business experience may be consid- ered. (D) For purposes of this paragraph, a cor- poration which is controlled by any other per- son shall be treated as a small business con- cern if such corporation would, after the plan described in subparagraph (B) is carried out, be treated as a small business concern. (E) The Administration shall compile a sepa- rate list of applications for assistance under this paragraph, indicating which applications were accepted and which were denied, and shall report periodically to the Congress on the status of employee-owned firms assisted by the Administration, which shall include— (i) the total number of loans made to em- ployee-owned business concerns that were guaranteed by the Administrator under this subsection or section 502 of the Small Busi- ness Investment Act of 1958 (15 U.S.C. 696), including the number of loans made— (I) to small business concerns owned and controlled by socially and economically disadvantaged individuals; and (II) to cooperatives; (ii) the total number of financings made to employee-owned business concerns by com- Page 807 TITLE 15—COMMERCE AND TRADE § 636 panies licensed under section 301(c) of the Small Business Investment Act of 1958 (15 U.S.C. 696(c)) [15 U.S.C. 681(c)], including the number of financings made— (I) to small business concerns owned and controlled by socially and economically disadvantaged individuals; and (II) to cooperatives; and (iii) any outreach and educational activi- ties conducted by the Administration with respect to employee-owned business con- cerns. (F) A small business concern that makes a loan to a qualified employee trust under sub- paragraph (A)(ii) is not required to contain the same terms and conditions as the loan made to the small business concern that is guaran- teed by the Administration under such sub- paragraph. (G) With respect to a loan made to a quali- fied employee trust under this paragraph, or to a cooperative in accordance with paragraph (35), the Administrator may, as deemed appro- priate, elect to not require any mandatory eq- uity to be provided by the qualified employee trust or cooperative to make the loan. (16) INTERNATIONAL TRADE.— (A) IN GENERAL.—If the Administrator de- termines that a loan guaranteed under this subsection will allow an eligible small busi- ness concern that is engaged in or adversely affected by international trade to improve its competitive position, the Administrator may make such loan to assist such concern— (i) in the financing of the acquisition, construction, renovation, modernization, improvement, or expansion of productive facilities or equipment to be used in the United States in the production of goods and services involved in international trade; (ii) in the refinancing of existing indebt- edness that is not structured with reason- able terms and conditions, including any debt that qualifies for refinancing under any other provision of this subsection; or (iii) by providing working capital. (B) SECURITY.— (i) IN GENERAL.—Except as provided in clause (ii), each loan made under this para- graph shall be secured by a first lien posi- tion or first mortgage on the property or equipment financed by the loan or on other assets of the small business concern. (ii) EXCEPTION.—A loan under this para- graph may be secured by a second lien po- sition on the property or equipment fi- nanced by the loan or on other assets of the small business concern, if the Adminis- trator determines the lien provides ade- quate assurance of the payment of the loan. (C) ENGAGED IN INTERNATIONAL TRADE.— For purposes of this paragraph, a small busi- ness concern is engaged in international trade if, as determined by the Adminis- trator, the small business concern is in a po- sition to expand existing export markets or develop new export markets. (D) ADVERSELY AFFECTED BY INTER- NATIONAL TRADE.—For purposes of this para- graph, a small business concern is adversely affected by international trade if, as deter- mined by the Administrator, the small busi- ness concern— (i) is confronting increased competition with foreign firms in the relevant market; and (ii) is injured by such competition. (E) FINDINGS BY CERTAIN FEDERAL AGEN- CIES.—For purposes of subparagraph (D)(ii) the Administrator shall accept any finding of injury by the International Trade Com- mission or any finding of injury by the Sec- retary of Commerce pursuant to chapter 3 of title II of the Trade Act of 1974 [19 U.S.C. 2341 et seq.]. (F) LIST OF EXPORT FINANCE LENDERS.— (i) PUBLICATION OF LIST REQUIRED.—The Administrator shall publish an annual list of the banks and participating lending in- stitutions that, during the 1-year period ending on the date of publication of the list, have made loans guaranteed by the Administration under— (I) this paragraph; (II) paragraph (14); or (III) paragraph (34). (ii) AVAILABILITY OF LIST.—The Adminis- trator shall— (I) post the list published under clause (i) on the website of the Administration; and (II) make the list published under clause (i) available, upon request, at each district office of the Administra- tion. (17) The Administration shall authorize lending institutions and other entities in addi- tion to banks to make loans authorized under this subsection. (18) GUARANTEE FEES.— (A) IN GENERAL.—With respect to each loan guaranteed under this subsection (other than a loan that is repayable in 1 year or less), the Administration shall collect a guarantee fee, which shall be payable by the participating lender, and may be charged to the borrower, as follows: (i) A guarantee fee not to exceed 2 per- cent of the deferred participation share of a total loan amount that is not more than $150,000. (ii) A guarantee fee not to exceed 3 per- cent of the deferred participation share of a total loan amount that is more than $150,000, but not more than $700,000. (iii) A guarantee fee not to exceed 3.5 percent of the deferred participation share of a total loan amount that is more than $700,000. (iv) In addition to the fee under clause (iii), a guarantee fee equal to 0.25 percent of any portion of the deferred participa- tion share that is more than $1,000,000. (B) RETENTION OF CERTAIN FEES.—Lenders participating in the programs established under this subsection may retain not more Page 808 TITLE 15—COMMERCE AND TRADE § 636 than 25 percent of a fee collected under sub- paragraph (A)(i). (19)(A) In addition to the Preferred Lenders Program authorized by the proviso in section 634(b)(7) of this title, the Administration is au- thorized to establish a Certified Lenders Pro- gram for lenders who establish their knowl- edge of Administration laws and regulations concerning the guaranteed loan program and their proficiency in program requirements. The designation of a lender as a certified lend- er shall be suspended or revoked at any time that the Administration determines that the lender is not adhering to its rules and regula- tions or that the loss experience of the lender is excessive as compared to other lenders, but such suspension or revocation shall not affect any outstanding guarantee. (B) In order to encourage all lending institu- tions and other entities making loans author- ized under this subsection to provide loans of $50,000 or less in guarantees to eligible small business loan applicants, the Administration shall develop and allow participating lenders to solely utilize a uniform and simplified loan form for such loans. (C) AUTHORITY TO LIQUIDATE LOANS.— (i) IN GENERAL.—The Administrator may permit lenders participating in the Certified Lenders Program to liquidate loans made with a guarantee from the Administration pursuant to a liquidation plan approved by the Administrator. (ii) AUTOMATIC APPROVAL.—If the Adminis- trator does not approve or deny a request for approval of a liquidation plan within 10 busi- ness days of the date on which the request is made (or with respect to any routine liq- uidation activity under such a plan, within 5 business days) such request shall be deemed to be approved. (20)(A) The Administration is empowered to make loans either directly or in cooperation with banks or other financial institutions through agreements to participate on an im- mediate or deferred (guaranteed) basis to small business concerns eligible for assistance under subsection (j)(10) and section 637(a) of this title. Such assistance may be provided only if the Administration determines that— (i) the type and amount of such assistance requested by such concern is not otherwise available on reasonable terms from other sources; (ii) with such assistance such concern has a reasonable prospect for operating soundly and profitably within a reasonable period of time; (iii) the proceeds of such assistance will be used within a reasonable time for plant con- struction, conversion, or expansion, includ- ing the acquisition of equipment, facilities, machinery, supplies, or material or to sup- ply such concern with working capital to be used in the manufacture of articles, equip- ment, supplies, or material for defense or ci- vilian production or as may be necessary to insure a well-balanced national economy; and (iv) such assistance is of such sound value as reasonably to assure that the terms under which it is provided will not be breached by the small business concern. (B)(i) No loan shall be made under this para- graph if the total amount outstanding and committed (by participation or otherwise) to the borrower would exceed $750,000. (ii) Subject to the provisions of clause (i), in agreements to participate in loans on a de- ferred (guaranteed) basis, participation by the Administration shall be not less than 85 per centum of the balance of the financing out- standing at the time of disbursement. (iii) The rate of interest on financings made on a deferred (guaranteed) basis shall be legal and reasonable. (iv) Financings made pursuant to this para- graph shall be subject to the following limita- tions: (I) No immediate participation may be purchased unless it is shown that a deferred participation is not available. (II) No direct financing may be made un- less it is shown that a participation is un- available. (C) A direct loan or the Administration’s share of an immediate participation loan made pursuant to this paragraph shall be any se- cured debt instrument— (i) that is subordinated by its terms to all other borrowings of the issuer; (ii) the rate of interest on which shall not exceed the current average market yield on outstanding marketable obligations of the United States with remaining periods to ma- turity comparable to the average maturities of such loan and adjusted to the nearest one- eighth of 1 per centum; (iii) the term of which is not more than twenty-five years; and (iv) the principal on which is amortized at such rate as may be deemed appropriate by the Administration, and the interest on which is payable not less often than annu- ally. (21)(A) The Administration may make loans on a guaranteed basis under the authority of this subsection— (i) to a small business concern that has been (or can reasonably be expected to be) detrimentally affected by— (I) the closure (or substantial reduction) of a Department of Defense installation; or (II) the termination (or substantial re- duction) of a Department of Defense pro- gram on which such small business was a prime contractor or subcontractor (or sup- plier) at any tier; or (ii) to a qualified individual or a veteran seeking to establish (or acquire) and operate a small business concern. (B) Recognizing that greater risk may be as- sociated with a loan to a small business con- cern described in subparagraph (A)(i), any rea- sonable doubts concerning the firm’s proposed business plan for transition to nondefense-re- lated markets shall be resolved in favor of the loan applicant when making any determina- tion regarding the sound value of the proposed loan in accordance with paragraph (6). Page 809 TITLE 15—COMMERCE AND TRADE § 636 (C) Loans pursuant to this paragraph shall be authorized in such amounts as provided in advance in appropriation Acts for the purposes of loans under this paragraph. (D) For purposes of this paragraph a quali- fied individual is— (i) a member of the Armed Forces of the United States, honorably discharged from active duty involuntarily or pursuant to a program providing bonuses or other induce- ments to encourage voluntary separation or early retirement; (ii) a civilian employee of the Department of Defense involuntarily separated from Fed- eral service or retired pursuant to a program offering inducements to encourage early re- tirement; or (iii) an employee of a prime contractor, subcontractor, or supplier at any tier of a Department of Defense program whose em- ployment is involuntarily terminated (or voluntarily terminated pursuant to a pro- gram offering inducements to encourage vol- untary separation or early retirement) due to the termination (or substantial reduc- tion) of a Department of Defense program. (E) JOB CREATION AND COMMUNITY BENEFIT.— In providing assistance under this paragraph, the Administration shall develop procedures to ensure, to the maximum extent practicable, that such assistance is used for projects that— (i) have the greatest potential for— (I) creating new jobs for individuals whose employment is involuntarily termi- nated due to reductions in Federal defense expenditures; or (II) preventing the loss of jobs by em- ployees of small business concerns de- scribed in subparagraph (A)(i); and (ii) have substantial potential for stimu- lating new economic activity in commu- nities most affected by reductions in Federal defense expenditures. (22) The Administration is authorized to per- mit participating lenders to impose and col- lect a reasonable penalty fee on late payments of loans guaranteed under this subsection in an amount not to exceed 5 percent of the monthly loan payment per month plus inter- est. (23) YEARLY FEE.— (A) IN GENERAL.—With respect to each loan approved under this subsection, the Admin- istration shall assess, collect, and retain a fee, not to exceed 0.55 percent per year of the outstanding balance of the deferred partici- pation share of the loan, in an amount estab- lished once annually by the Administration in the Administration’s annual budget re- quest to Congress, as necessary to reduce to zero the cost to the Administration of mak- ing guarantees under this subsection. As used in this paragraph, the term ‘‘cost’’ has the meaning given that term in section 661a of title 2. (B) PAYER.—The yearly fee assessed under subparagraph (A) shall be payable by the participating lender and shall not be charged to the borrower. (C) LOWERING OF BORROWER FEES.—If the Administration determines that fees paid by lenders and by small business borrowers for guarantees under this subsection may be re- duced, consistent with reducing to zero the cost to the Administration of making such guarantees— (i) the Administration shall first con- sider reducing fees paid by small business borrowers under clauses (i) through (iii) of paragraph (18)(A), to the maximum extent possible; and (ii) fees paid by small business borrowers shall not be increased above the levels in effect on December 8, 2004. (24) NOTIFICATION REQUIREMENT.—The Ad- ministration shall notify the Committees on Small Business of the Senate and the House of Representatives not later than 15 days before making any significant policy or administra- tive change affecting the operation of the loan program under this subsection. (25) LIMITATION ON CONDUCTING PILOT PROJECTS.— (A) IN GENERAL.—Not more than 10 percent of the total number of loans guaranteed in any fiscal year under this subsection may be awarded as part of a pilot program which is commenced by the Administrator on or after October 1, 1996. (B) ‘‘PILOT PROGRAM’’ DEFINED.—In this paragraph, the term ‘pilot program’ means any lending program initiative, project, in- novation, or other activity not specifically authorized by law. (C) LOW DOCUMENTATION LOAN PROGRAM.— The Administrator may carry out the low documentation loan program for loans of $100,000 or less only through lenders with significant experience in making small busi- ness loans. Not later than 90 days after Sep- tember 30, 1996, the Administrator shall pro- mulgate regulations defining the experience necessary for participation as a lender in the low documentation loan program. (26) CALCULATION OF SUBSIDY RATE.—All fees, interest, and profits received and retained by the Administration under this subsection shall be included in the calculations made by the Director of the Office of Management and Budget to offset the cost (as that term is de- fined in section 661a of title 2) to the Adminis- tration of purchasing and guaranteeing loans under this chapter. (27) Repealed. Pub. L. 106–8, § 3(c), Apr. 2, 1999, 113 Stat. 16. (28) LEASING.—In addition to such other lease arrangements as may be authorized by the Administration, a borrower may perma- nently lease to one or more tenants not more than 20 percent of any property constructed with the proceeds of a loan guaranteed under this subsection, if the borrower permanently occupies and uses not less than 60 percent of the total business space in the property. (29) REAL ESTATE APPRAISALS.— (A) IN GENERAL.—With respect to a loan under this subsection that is secured by commercial real property, an appraisal of such property by a State licensed or cer- tified appraiser— (i) shall be required by the Administra- tion in connection with any such loan, if Page 810 TITLE 15—COMMERCE AND TRADE § 636 such loan is in an amount greater than the Federal banking regulator appraisal threshold; or (ii) may be required by the Administra- tion or the lender in connection with any such loan, if such loan is in an amount equal to or less than the Federal banking regulator appraisal threshold, if such ap- praisal is necessary for appropriate evalua- tion of creditworthiness. (B) FEDERAL BANKING REGULATOR AP- PRAISAL THRESHOLD DEFINED.—For purposes of this paragraph, the term ‘‘Federal bank- ing regulator appraisal threshold’’ means the lesser of the threshold amounts set by the Board of Governors of the Federal Re- serve System, the Comptroller of the Cur- rency, and the Federal Deposit Insurance Corporation for when a federally related transaction that is a commercial real estate transaction requires an appraisal prepared by a State licensed or certified appraiser. (30) OWNERSHIP REQUIREMENTS.—Ownership requirements to determine the eligibility of a small business concern that applies for assist- ance under any credit program under this chapter shall be determined without regard to any ownership interest of a spouse arising solely from the application of the community property laws of a State for purposes of deter- mining marital interests. (31) EXPRESS LOANS.— (A) DEFINITIONS.—As used in this para- graph: (i) The term ‘‘disaster area’’ means the area for which the President has declared a major disaster, during the 5-year period beginning on the date of the declaration. (ii) The term ‘‘express lender’’ means any lender authorized by the Administra- tion to participate in the Express Loan Program. (iii) The term ‘‘express loan’’ means any loan made pursuant to this paragraph in which a lender utilizes to the maximum extent practicable its own loan analyses, procedures, and documentation. (iv) The term ‘‘Express Loan Program’’ means the program for express loans es- tablished by the Administration under paragraph (25)(B), as in existence on April 5, 2004, with a guarantee rate of not more than 50 percent. (B) RESTRICTION TO EXPRESS LENDER.—The authority to make an express loan shall be limited to those lenders deemed qualified to make such loans by the Administration. Designation as an express lender for pur- poses of making an express loan shall not prohibit such lender from taking any other action authorized by the Administration for that lender pursuant to this subsection. (C) GRANDFATHERING OF EXISTING LEND- ERS.—Any express lender shall retain such designation unless the Administration deter- mines that the express lender has violated the law or regulations promulgated by the Administration or modifies the require- ments to be an express lender and the lender no longer satisfies those requirements. (D) MAXIMUM LOAN AMOUNT.—The max- imum loan amount under the Express Loan Program is $500,000. (E) OPTION TO PARTICIPATE.—Except as oth- erwise provided in this paragraph, the Ad- ministration shall take no regulatory, pol- icy, or administrative action, without re- gard to whether such action requires notifi- cation pursuant to paragraph (24), that has the effect of requiring a lender to make an express loan pursuant to subparagraph (D). (F) EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY.— (i) DEFINITIONS.—In this subparagraph— (I) the term ‘‘biomass’’— (aa) means any organic material that is available on a renewable or recur- ring basis, including— (AA) agricultural crops; (BB) trees grown for energy pro- duction; (CC) wood waste and wood residues; (DD) plants (including aquatic plants and grasses); (EE) residues; (FF) fibers; (GG) animal wastes and other waste materials; and (HH) fats, oils, and greases (includ- ing recycled fats, oils, and greases); and (bb) does not include— (AA) paper that is commonly recy- cled; or (BB) unsegregated solid waste; (II) the term ‘‘energy efficiency project’’ means the installation or up- grading of equipment that results in a significant reduction in energy usage; and (III) the term ‘‘renewable energy sys- tem’’ means a system of energy derived from— (aa) a wind, solar, biomass (including biodiesel), or geothermal source; or (bb) hydrogen derived from biomass or water using an energy source de- scribed in item (aa). (ii) LOANS.—The Administrator may make a loan under the Express Loan Pro- gram for the purpose of— (I) purchasing a renewable energy sys- tem; or (II) carrying out an energy efficiency project for a small business concern. (G) GUARANTEE FEE WAIVER FOR VET- ERANS.— (i) GUARANTEE FEE WAIVER.—The Admin- istrator may not collect a guarantee fee described in paragraph (18) in connection with a loan made under this paragraph to a veteran or spouse of a veteran on or after October 1, 2015. (ii) DEFINITION.—In this subparagraph, the term ‘‘veteran or spouse of a veteran’’ means— (I) a veteran, as defined in section 632(q)(4) of this title; (II) an individual who is eligible to par- ticipate in the Transition Assistance Page 811 TITLE 15—COMMERCE AND TRADE § 636 4 So in original. Program established under section 1144 of title 10; (III) a member of a reserve component of the Armed Forces named in section 10101 of title 10; (IV) the spouse of an individual de- scribed in subclause (I), (II), or (III); or (V) the surviving spouse (as defined in section 101 of title 38) of an individual described in subclause (I), (II), or (III) who died while serving on active duty or as a result of a disability that is service- connected (as defined in such section). (H) RECOVERY OPPORTUNITY LOANS.— (i) IN GENERAL.—The Administrator may guarantee an express loan to a small busi- ness concern located in a disaster area in accordance with this subparagraph. (ii) MAXIMUMS.—For a loan guaranteed under clause (i)— (I) the maximum loan amount is $150,000; and (II) the guarantee rate shall be not more than 85 percent. (iii) OVERALL CAP.—A loan guaranteed under clause (i) shall not be counted in de- termining the amount of loans made to a borrower for purposes of subparagraph (D). (iv) OPERATIONS.—A small business con- cern receiving a loan guaranteed under clause (i) shall certify that the small busi- ness concern was in operation on the date on which the applicable major disaster oc- curred as a condition of receiving the loan. (v) REPAYMENT ABILITY.—A loan guaran- teed under clause (i) may only be made to a small business concern that dem- onstrates, to the satisfaction of the Ad- ministrator, sufficient capacity to repay the loan. (vi) TIMING OF PAYMENT OF GUARAN- TEES.— (I) IN GENERAL.—Not later than 90 days after the date on which a request for pur- chase is filed with the Administrator, the Administrator shall determine whether to pay the guaranteed portion of the loan. (II) RECAPTURE.—Notwithstanding any other provision of law, unless there is a subsequent finding of fraud by a court of competent jurisdiction relating to a loan guaranteed under clause (i), on and after the date that is 6 months after the date on which the Administrator determines to pay the guaranteed portion of the loan, the Administrator may not at- tempt to recapture the paid guarantee. (vii) FEES.— (I) IN GENERAL.—Unless the Adminis- trator has waived the guarantee fee that would otherwise be collected by the Ad- ministrator under paragraph (18) for a loan guaranteed under clause (i), and ex- cept as provided in subclause (II), the guarantee fee for the loan shall be equal to the guarantee fee that the Adminis- trator would collect if the guarantee rate for the loan was 50 percent. (II) EXCEPTION.—Subclause (I) shall not apply if the cost of carrying out the pro- gram under this subsection in a fiscal year is more than zero and such cost is directly attributable to the cost of guar- anteeing loans under clause (i). (viii) RULES.—Not later than 270 days after November 25, 2015, the Administrator shall promulgate rules to carry out this subparagraph. (32) LOANS FOR ENERGY EFFICIENT TECH- NOLOGIES.— (A) DEFINITIONS.—In this paragraph— (i) the term ‘‘cost’’ has the meaning given that term in section 661a of title 2; (ii) the term ‘‘covered energy efficiency loan’’ means a loan— (I) made under this subsection; and (II) the proceeds of which are used to purchase energy efficient designs, equip- ment, or fixtures, or to reduce the en- ergy consumption of the borrower by 10 percent or more; and (iii) the term ‘‘pilot program’’ means the pilot program established under subpara- graph (B) 4 (B) ESTABLISHMENT.—The Administrator shall establish and carry out a pilot program under which the Administrator shall reduce the fees for covered energy efficiency loans. (C) DURATION.—The pilot program shall terminate at the end of the second full fiscal year after the date that the Administrator establishes the pilot program. (D) MAXIMUM PARTICIPATION.—A covered energy efficiency loan shall include the max- imum participation levels by the Adminis- trator permitted for loans made under this subsection. (E) FEES.— (i) IN GENERAL.—The fee on a covered en- ergy efficiency loan shall be equal to 50 percent of the fee otherwise applicable to that loan under paragraph (18). (ii) WAIVER.—The Administrator may waive clause (i) for a fiscal year if— (I) for the fiscal year before that fiscal year, the annual rate of default of cov- ered energy efficiency loans exceeds that of loans made under this subsection that are not covered energy efficiency loans; (II) the cost to the Administration of making loans under this subsection is greater than zero and such cost is di- rectly attributable to the cost of making covered energy efficiency loans; and (III) no additional sources of revenue authority are available to reduce the cost of making loans under this sub- section to zero. (iii) EFFECT OF WAIVER.—If the Adminis- trator waives the reduction of fees under clause (ii), the Administrator— (I) shall not assess or collect fees in an amount greater than necessary to ensure that the cost of the program under this subsection is not greater than zero; and (II) shall reinstate the fee reductions under clause (i) when the conditions in clause (ii) no longer apply. Page 812 TITLE 15—COMMERCE AND TRADE § 636 (iv) NO INCREASE OF FEES.—The Adminis- trator shall not increase the fees under paragraph (18) on loans made under this subsection that are not covered energy ef- ficiency loans as a direct result of the pilot program. (F) GAO REPORT.— (i) IN GENERAL.—Not later than 1 year after the date that the pilot program ter- minates, the Comptroller General of the United States shall submit to the Com- mittee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report on the pilot program. (ii) CONTENTS.—The report submitted under clause (i) shall include— (I) the number of covered energy effi- ciency loans for which fees were reduced under the pilot program; (II) a description of the energy effi- ciency savings with the pilot program; (III) a description of the impact of the pilot program on the program under this subsection; (IV) an evaluation of the efficacy and potential fraud and abuse of the pilot program; and (V) recommendations for improving the pilot program. (33) INCREASED VETERAN PARTICIPATION PRO- GRAM.— (A) DEFINITIONS.—In this paragraph— (i) the term ‘‘cost’’ has the meaning given that term in section 661a of title 2; (ii) the term ‘‘pilot program’’ means the pilot program established under subpara- graph (B); and (iii) the term ‘‘veteran participation loan’’ means a loan made under this sub- section to a small business concern owned and controlled by veterans of the Armed Forces or members of the reserve compo- nents of the Armed Forces. (B) ESTABLISHMENT.—The Administrator shall establish and carry out a pilot program under which the Administrator shall reduce the fees for veteran participation loans. (C) DURATION.—The pilot program shall terminate at the end of the second full fiscal year after the date that the Administrator establishes the pilot program. (D) MAXIMUM PARTICIPATION.—A veteran participation loan shall include the max- imum participation levels by the Adminis- trator permitted for loans made under this subsection. (E) FEES.— (i) IN GENERAL.—The fee on a veteran participation loan shall be equal to 50 per- cent of the fee otherwise applicable to that loan under paragraph (18). (ii) WAIVER.—The Administrator may waive clause (i) for a fiscal year if— (I) for the fiscal year before that fiscal year, the annual estimated rate of de- fault of veteran participation loans ex- ceeds that of loans made under this sub- section that are not veteran participa- tion loans; (II) the cost to the Administration of making loans under this subsection is greater than zero and such cost is di- rectly attributable to the cost of making veteran participation loans; and (III) no additional sources of revenue authority are available to reduce the cost of making loans under this sub- section to zero. (iii) EFFECT OF WAIVER.—If the Adminis- trator waives the reduction of fees under clause (ii), the Administrator— (I) shall not assess or collect fees in an amount greater than necessary to ensure that the cost of the program under this subsection is not greater than zero; and (II) shall reinstate the fee reductions under clause (i) when the conditions in clause (ii) no longer apply. (iv) NO INCREASE OF FEES.—The Adminis- trator shall not increase the fees under paragraph (18) on loans made under this subsection that are not veteran participa- tion loans as a direct result of the pilot program. (F) GAO REPORT.— (i) IN GENERAL.—Not later than 1 year after the date that the pilot program ter- minates, the Comptroller General of the United States shall submit to the Com- mittee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report on the pilot program. (ii) CONTENTS.—The report submitted under clause (i) shall include— (I) the number of veteran participation loans for which fees were reduced under the pilot program; (II) a description of the impact of the pilot program on the program under this subsection; (III) an evaluation of the efficacy and potential fraud and abuse of the pilot program; and (IV) recommendations for improving the pilot program. (34) EXPORT EXPRESS PROGRAM.— (A) DEFINITIONS.—In this paragraph— (i) the term ‘‘export development activ- ity’’ includes— (I) obtaining a standby letter of credit when required as a bid bond, perform- ance bond, or advance payment guar- antee; (II) participation in a trade show that takes place outside the United States; (III) translation of product brochures or catalogues for use in markets outside the United States; (IV) obtaining a general line of credit for export purposes; (V) performing a service contract from buyers located outside the United States; (VI) obtaining transaction-specific fi- nancing associated with completing ex- port orders; (VII) purchasing real estate or equip- ment to be used in the production of goods or services for export; Page 813 TITLE 15—COMMERCE AND TRADE § 636 5 So in original. The closing parenthesis probably should not appear. (VIII) providing term loans or other fi- nancing to enable a small business con- cern, including an export trading com- pany and an export management com- pany, to develop a market outside the United States; and (IX) acquiring, constructing, ren- ovating, modernizing, improving, or ex- panding a production facility or equip- ment to be used in the United States in the production of goods or services for export; and (ii) the term ‘‘express loan’’ means a loan in which a lender uses to the max- imum extent practicable the loan anal- yses, procedures, and documentation of the lender to provide expedited processing of the loan application. (B) AUTHORITY.—The Administrator may guarantee the timely payment of an express loan to a small business concern made for an export development activity. (C) LEVEL OF PARTICIPATION.— (i) MAXIMUM AMOUNT.—The maximum amount of an express loan guaranteed under this paragraph shall be $500,000. (ii) PERCENTAGE.—For an express loan guaranteed under this paragraph, the Ad- ministrator shall guarantee— (I) 90 percent of a loan that is not more than $350,000; and (II) 75 percent of a loan that is more than $350,000 and not more than $500,000. (35) LOANS TO COOPERATIVES.— (A) DEFINITION.—In this paragraph, the term ‘‘cooperative’’ means an entity that is determined to be a cooperative by the Ad- ministrator, in accordance with applicable Federal and State laws and regulation. (B) AUTHORITY.—The Administration shall guarantee loans made to a cooperative for the purpose described in paragraph (15). (36) PAYCHECK PROTECTION PROGRAM.— (A) DEFINITIONS.—In this paragraph— (i) the terms ‘‘appropriate Federal bank- ing agency’’ and ‘‘insured depository insti- tution’’ have the meanings given those terms in section 1813 of title 12; (ii) the term ‘‘covered loan’’ means a loan made under this paragraph during the covered period; (iii) the term ‘‘covered period’’ means the period beginning on February 15, 2020 and ending on June 30, 2021; (iv) the term ‘‘eligible recipient’’ means an individual or entity that is eligible to receive a covered loan; (v) the term ‘‘eligible self-employed indi- vidual’’ has the meaning given the term in section 7002(b) of the Families First Coronavirus Response Act (Public Law 116–127); (vi) the term ‘‘insured credit union’’ has the meaning given the term in section 1752 of title 12; (vii) the term ‘‘nonprofit organization’’ means an organization that is described in section 501(c)(3) of title 26 and that is ex- empt from taxation under section 501(a) of title 26; (viii) the term ‘‘payroll costs’’— (I) means— (aa) the sum of payments of any compensation with respect to employ- ees that is a— (AA) salary, wage, commission, or similar compensation; (BB) payment of cash tip or equiva- lent; (CC) payment for vacation, paren- tal, family, medical, or sick leave; (DD) allowance for dismissal or separation; (EE) payment required for the pro- visions of group health care or group life, disability, vision, or dental in- surance benefits, including insurance premiums; (FF) payment of any retirement benefit; or (GG) payment of State or local tax assessed on the compensation of em- ployees; and (bb) the sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred; and (II) shall not include— (aa) the compensation of an indi- vidual employee in excess of $100,000 on an annualized basis, as prorated for the period during which the compensation is paid or the obligation to pay the compensation is incurred; (bb) taxes imposed or withheld under chapters 21, 22, or 24 of title 26 during the applicable period; (cc) any compensation of an em- ployee whose principal place of resi- dence is outside of the United States; (dd) qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116–127); or (ee) qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act (Public Law 116–127); (ix) the term ‘‘veterans organization’’ means an organization that is described in section 501(c)(19) of title 26 that is exempt from taxation under section 501(a) of title 26; (x) the term ‘‘community development financial institution’’ has the meaning given the term in section 4702 of title 12); 5 (xi) the term ‘‘community financial in- stitutions’’ means— (I) a community development financial institution; Page 814 TITLE 15—COMMERCE AND TRADE § 636 (II) a minority depository institution, as defined in section 308 of the Financial Institutions Reform, Recovery, and En- forcement Act of 1989 (12 U.S.C. 1463 note); (III) a development company that is certified under title V of the Small Busi- ness Investment Act of 1958 (15 U.S.C. 695 et seq.); and (IV) an intermediary, as defined in sub- section (m)(11); (xii) the term ‘‘credit union’’ means a State credit union or a Federal credit union, as those terms are defined, respec- tively, in section 1752 of title 12; (xiii) the term ‘‘seasonal employer’’ means an eligible recipient that— (I) does not operate for more than 7 months in any calendar year; or (II) during the preceding calendar year, had gross receipts for any 6 months of that year that were not more than 33.33 percent of the gross receipts of the em- ployer for the other 6 months of that year; (xiv) the term ‘‘housing cooperative’’ means a cooperative housing corporation (as defined in section 216(b) of title 26) that employs not more than 300 employees; (xv) the term ‘‘destination marketing or- ganization’’ means a nonprofit entity that is— (I) an organization described in section 501(c) of title 26 and exempt from tax under section 501(a) of such title; or (II) a State, or a political subdivision of a State (including any instrumen- tality of such entities)— (aa) engaged in marketing and pro- moting communities and facilities to businesses and leisure travelers through a range of activities, includ- ing— (AA) assisting with the location of meeting and convention sites; (BB) providing travel information on area attractions, lodging accom- modations, and restaurants; (CC) providing maps; and (DD) organizing group tours of local historical, recreational, and cultural attractions; or (bb) that is engaged in, and derives the majority of the operating budget of the entity from revenue attributable to, providing live events; (xvi) the terms ‘‘exchange’’, ‘‘issuer’’, and ‘‘security’’ have the meanings given those terms in section 78c(a) of this title; and (xvii) the term ‘‘additional covered non- profit entity’’— (I) means an organization described in any paragraph of section 501(c) of title 26, other than paragraph (3), (4), (6), or (19), and exempt from tax under section 501(a) of such title; and (II) does not include any entity that, if the entity were a business concern, would be described in section 120.110 of title 13, Code of Federal Regulations (or in any successor regulation or other re- lated guidance or rule that may be issued by the Administrator) other than a business concern described in para- graph (a) or (k) of such section. (B) PAYCHECK PROTECTION LOANS.—Except as otherwise provided in this paragraph, the Administrator may guarantee covered loans under the same terms, conditions, and proc- esses as a loan made under this subsection. (C) REGISTRATION OF LOANS.—Not later than 15 days after the date on which a loan is made under this paragraph, the Adminis- tration shall register the loan using the TIN (as defined in section 7701 of title 26) as- signed to the borrower. (D) INCREASED ELIGIBILITY FOR CERTAIN SMALL BUSINESSES AND ORGANIZATIONS.— (i) IN GENERAL.—During the covered pe- riod, in addition to small business con- cerns, any business concern, nonprofit or- ganization, housing cooperative, veterans organization, or Tribal business concern described in section 657a(b)(2)(C) of this title shall be eligible to receive a covered loan if the business concern, nonprofit or- ganization, housing cooperative, veterans organization, or Tribal business concern employs not more than the greater of— (I) 500 employees; or (II) if applicable, the size standard in number of employees established by the Administration for the industry in which the business concern, nonprofit organiza- tion, housing cooperative, veterans orga- nization, or Tribal business concern op- erates. (ii) INCLUSION OF SOLE PROPRIETORS, INDEPENDENT CONTRACTORS, AND ELIGIBLE SELF-EMPLOYED INDIVIDUALS.— (I) IN GENERAL.—During the covered period, individuals who operate under a sole proprietorship or as an independent contractor and eligible self-employed in- dividuals shall be eligible to receive a covered loan. (II) DOCUMENTATION.—An eligible self- employed individual, independent con- tractor, or sole proprietorship seeking a covered loan shall submit such docu- mentation as determined necessary by the Administrator and the Secretary, to establish the applicant as eligible. (iii) BUSINESS CONCERNS WITH MORE THAN 1 PHYSICAL LOCATION.— (I) IN GENERAL.—During the covered period, any business concern that em- ploys not more than 500 employees per physical location of the business concern and that is assigned a North American Industry Classification System code be- ginning with 72 at the time of disbursal shall be eligible to receive a covered loan. (II) ELIGIBILITY OF NEWS ORGANIZA- TIONS.— (aa) DEFINITION.—In this subclause, the term ‘‘included business concern’’ Page 815 TITLE 15—COMMERCE AND TRADE § 636 means a business concern, including any station which broadcasts pursuant to a license granted by the Federal Communications Commission under title III of the Communications Act of 1934 (47 U.S.C. 301 et seq.) without re- gard for whether such a station is a concern as defined in section 121.105 of title 13, Code of Federal Regulations, or any successor thereto— (AA) that employs not more than 500 employees, or the size standard established by the Administrator for the North American Industry Classi- fication System code applicable to the business concern, per physical lo- cation of such business concern; or (BB) any nonprofit organization or any organization otherwise subject to section 511(a)(2)(B) of title 26 that is a public broadcasting entity (as defined in section 397(11) of the Com- munications Act of 1934 (47 U.S.C. 397(11))). (bb) ELIGIBILITY.—During the covered period, an included business concern shall be eligible to receive a covered loan if— (AA) the included business concern is majority owned or controlled by a business concern that is assigned a North American Industry Classifica- tion System code beginning with 511110 or 5151 or, with respect to a public broadcasting entity (as de- fined in section 397(11) of the Com- munications Act of 1934 (47 U.S.C. 397(11))), has a trade or business that falls under such a code; and (BB) the included business concern makes a good faith certification that proceeds of the loan will be used to support expenses at the component of the included business concern that produces or distributes locally fo- cused or emergency information. (III) ELIGIBILITY OF CERTAIN ORGANIZA- TIONS.—Subject to the provisions in this subparagraph, during the covered pe- riod— (aa) a nonprofit organization shall be eligible to receive a covered loan if the nonprofit organization employs not more than 500 employees per physical location of the organization; and (bb) an additional covered nonprofit entity and an organization that, but for subclauses (I)(dd) and (II)(dd) of clause (vii), would be eligible for a cov- ered loan under clause (vii) shall be eli- gible to receive a covered loan if the entity or organization employs not more than 300 employees per physical location of the entity or organization. (IV) ELIGIBILITY OF INTERNET PUB- LISHING ORGANIZATIONS.—A business con- cern or other organization that was not eligible to receive a covered loan the day before March 11, 2021, is assigned a North American Industry Classification Sys- tem code of 519130, certifies in good faith as an Internet-only news publisher or Internet-only periodical publisher, and is engaged in the collection and distribu- tion of local or regional and national news and information shall be eligible to receive a covered loan for the continued provision of news, information, content, or emergency information if— (aa) the business concern or organi- zation employs not more than 500 em- ployees, or the size standard estab- lished by the Administrator for that North American Industry Classifica- tion code, per physical location of the business concern or organization; and (bb) the business concern or organi- zation makes a good faith certification that proceeds of the loan will be used to support expenses at the component of the business concern or organization that supports local or regional news. (iv) WAIVER OF AFFILIATION RULES.—Dur- ing the covered period, the provisions ap- plicable to affiliations under section 121.103 of title 13, Code of Federal Regula- tions, or any successor regulation, are waived with respect to eligibility for a covered loan for— (I) any business concern with not more than 500 employees that, as of the date on which the covered loan is disbursed, is assigned a North American Industry Classification System code beginning with 72; (II) any business concern operating as a franchise that is assigned a franchise identifier code by the Administration; (III) any business concern that receives financial assistance from a company li- censed under section 681 of this title; (IV)(aa) any business concern (includ- ing any station which broadcasts pursu- ant to a license granted by the Federal Communications Commission under title III of the Communications Act of 1934 (47 U.S.C. 301 et seq.) without regard for whether such a station is a concern as defined in section 121.105 of title 13, Code of Federal Regulations, or any successor thereto) that employs not more than 500 employees, or the size standard estab- lished by the Administrator for the North American Industry Classification System code applicable to the business concern, per physical location of such business concern and is majority owned or controlled by a business concern that is assigned a North American Industry Classification System code beginning with 511110 or 5151; or (bb) any nonprofit organization that is assigned a North American Industry Classification System code beginning with 5151; and (V) any business concern or other orga- nization that was not eligible to receive a covered loan the day before March 11, 2021, is assigned a North American Indus- try Classification System code of 519130, certifies in good faith as an Internet- Page 816 TITLE 15—COMMERCE AND TRADE § 636 6 So in original. The word ‘‘and’’ probably should not appear. only news publisher or Internet-only pe- riodical publisher, and is engaged in the collection and distribution of local or re- gional and national news and informa- tion, if the business concern or organiza- tion— (aa) employs not more than 500 em- ployees, or the size standard estab- lished by the Administrator for that North American Industry Classifica- tion code, per physical location of the business concern or organization; and (bb) is majority owned or controlled by a business concern or organization that is assigned a North American In- dustry Classification System code of 519130. (v) EMPLOYEE.—For purposes of deter- mining whether a business concern, non- profit organization, veterans organization, or Tribal business concern described in section 657a(b)(2)(C) of this title employs not more than 500 employees under clause (i)(I), or for purposes of determining the number of employees of a housing coopera- tive or a business concern or organization made eligible for a loan under this para- graph under subclause (II), (III), or (IV) of clause (iii), subclause (IV) or (V) of clause (iv), clause (vii), or clause (ix), the term ‘‘employee’’ includes individuals employed on a full-time, part-time, or other basis. (vi) AFFILIATION.—The provisions appli- cable to affiliations under section 121.103 of title 13, Code of Federal Regulations, or any successor thereto, shall apply with re- spect to a nonprofit organization, a busi- ness concern or organization made eligible for a loan under this paragraph under clause (vii), a housing cooperative, and a veterans organization in the same manner as with respect to a small business con- cern. (vii) ELIGIBILITY FOR CERTAIN 501(c)(6) OR- GANIZATIONS.— (I) IN GENERAL.—Any organization that is described in section 501(c)(6) of title 26 and that is exempt from taxation under section 501(a) of such title (excluding professional sports leagues and organiza- tions with the purpose of promoting or participating in a political campaign or other activity) shall be eligible to re- ceive a covered loan if— (aa) the organization does not re- ceive more than 15 percent of its re- ceipts from lobbying activities; (bb) the lobbying activities of the or- ganization do not comprise more than 15 percent of the total activities of the organization; (cc) the cost of the lobbying activi- ties of the organization did not exceed $1,000,000 during the most recent tax year of the organization that ended prior to February 15, 2020; and (dd) the organization employs not more than 300 employees. (II) DESTINATION MARKETING ORGANIZA- TIONS.—Any destination marketing orga- nization shall be eligible to receive a covered loan if— (aa) the destination marketing orga- nization does not receive more than 15 percent of its receipts from lobbying activities; (bb) the lobbying activities of the destination marketing organization do not comprise more than 15 percent of the total activities of the organization; (cc) the cost of the lobbying activi- ties of the destination marketing orga- nization did not exceed $1,000,000 dur- ing the most recent tax year of the destination marketing organization that ended prior to February 15, 2020; and 6 (dd) the destination marketing orga- nization employs not more than 300 employees; and (ee) the destination marketing orga- nization— (AA) is described in section 501(c) of title 26 and is exempt from tax- ation under section 501(a) of such title; or (BB) is a quasi-governmental enti- ty or is a political subdivision of a State or local government, including any instrumentality of those enti- ties. (viii) INELIGIBILITY OF PUBLICLY-TRADED ENTITIES.— (I) IN GENERAL.—Subject to subclause (II), and notwithstanding any other pro- vision of this paragraph, on and after De- cember 27, 2020, an entity that is an issuer, the securities of which are listed on an exchange registered as a national securities exchange under section 78f of this title, shall be ineligible to receive a covered loan under this paragraph. (II) RULE FOR AFFILIATED ENTITIES.— With respect to a business concern or or- ganization made eligible by subclause (II) or (IV) of clause (iii) or subclause (IV) or (V) of clause (iv) of this subpara- graph, the Administrator shall not con- sider whether any affiliated entity, which for purposes of this subclause shall include any entity that owns or controls such business concern or organi- zation, is an issuer. (ix) ELIGIBILITY OF ADDITIONAL COVERED NONPROFIT ENTITIES.—An additional cov- ered nonprofit entity shall be eligible to receive a covered loan if— (I) the additional covered nonprofit en- tity does not receive more than 15 per- cent of its receipts from lobbying activi- ties; (II) the lobbying activities of the addi- tional covered nonprofit entity do not comprise more than 15 percent of the total activities of the organization; (III) the cost of the lobbying activities of the additional covered nonprofit enti- ty did not exceed $1,000,000 during the Page 817 TITLE 15—COMMERCE AND TRADE § 636 most recent tax year of the additional covered nonprofit entity that ended prior to February 15, 2020; and (IV) the additional covered nonprofit entity employs not more than 300 em- ployees. (E) MAXIMUM LOAN AMOUNT.—Except as provided in subparagraph (V), during the covered period, with respect to a covered loan, the maximum loan amount shall be the lesser of— (i)(I) the sum of— (aa) the product obtained by multi- plying— (AA) the average total monthly pay- ments by the applicant for payroll costs incurred during the 1-year period before the date on which the loan is made, except that an applicant that is a seasonal employer shall use the aver- age total monthly payments for pay- roll for any 12-week period selected by the seasonal employer between Feb- ruary 15, 2019, and February 15, 2020; by (BB) 2.5; and (bb) the outstanding amount of a loan under subsection (b)(2) that was made during the period beginning on January 31, 2020 and ending on the date on which covered loans are made available to be refinanced under the covered loan; or (II) if requested by an otherwise eligible recipient that was not in business during the period beginning on February 15, 2019 and ending on June 30, 2019, the sum of— (aa) the product obtained by multi- plying— (AA) the average total monthly pay- ments by the applicant for payroll costs incurred during the period begin- ning on January 1, 2020 and ending on February 29, 2020; by (BB) 2.5; and (bb) the outstanding amount of a loan under subsection (b)(2) that was made during the period beginning on January 31, 2020 and ending on the date on which covered loans are made available to be refinanced under the covered loan; or (ii) $10,000,000. (F) ALLOWABLE USES OF COVERED LOANS.— (i) IN GENERAL.—During the covered pe- riod, an eligible recipient may, in addition to the allowable uses of a loan made under this subsection, use the proceeds of the covered loan for— (I) payroll costs; (II) costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums; (III) employee salaries, commissions, or similar compensations; (IV) payments of interest on any mort- gage obligation (which shall not include any prepayment of or payment of prin- cipal on a mortgage obligation); (V) rent (including rent under a lease agreement); (VI) utilities; (VII) interest on any other debt obliga- tions that were incurred before the cov- ered period; (VIII) covered operations expenditures, as defined in section 636m(a) of this title; (IX) covered property damage costs, as defined in section 636m(a) of this title; (X) covered supplier costs, as defined in section 636m(a) of this title; and (XI) covered worker protection expend- itures, as defined in section 636m(a) of this title. (ii) DELEGATED AUTHORITY.— (I) IN GENERAL.—For purposes of mak- ing covered loans for the purposes de- scribed in clause (i), a lender approved to make loans under this subsection shall be deemed to have been delegated au- thority by the Administrator to make and approve covered loans, subject to the provisions of this paragraph. (II) CONSIDERATIONS.—In evaluating the eligibility of a borrower for a cov- ered loan with the terms described in this paragraph, a lender shall consider whether the borrower— (aa) was in operation on February 15, 2020; and (bb)(AA) had employees for whom the borrower paid salaries and payroll taxes; or (BB) paid independent contractors, as reported on a Form 1099–MISC. (iii) ADDITIONAL LENDERS.—The author- ity to make loans under this paragraph shall be extended to additional lenders de- termined by the Administrator and the Secretary of the Treasury to have the nec- essary qualifications to process, close, dis- burse and service loans made with the guarantee of the Administration. (iv) REFINANCE.—A loan made under sub- section (b)(2) during the period beginning on January 31, 2020 and ending on the date on which covered loans are made available may be refinanced as part of a covered loan. (v) NONRECOURSE.—Notwithstanding the waiver of the personal guarantee require- ment or collateral under subparagraph (J), the Administrator shall have no recourse against any individual shareholder, mem- ber, or partner of an eligible recipient of a covered loan for nonpayment of any cov- ered loan, except to the extent that such shareholder, member, or partner uses the covered loan proceeds for a purpose not au- thorized under clause (i) or (iv). (vi) PROHIBITION.—None of the proceeds of a covered loan may be used for— (I) lobbying activities, as defined in section 1602 of title 2; (II) lobbying expenditures related to a State or local election; or (III) expenditures designed to influence the enactment of legislation, appropria- tions, regulation, administrative action, or Executive order proposed or pending before Congress or any State govern- Page 818 TITLE 15—COMMERCE AND TRADE § 636 7 So in original. No cl. (ii) has been enacted. ment, State legislature, or local legisla- ture or legislative body. (G) BORROWER REQUIREMENTS.— (i) 7 CERTIFICATION.—An eligible recipient applying for a covered loan shall make a good faith certification— (I) that the uncertainty of current eco- nomic conditions makes necessary the loan request to support the ongoing op- erations of the eligible recipient; (II) acknowledging that funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments; (III) that the eligible recipient does not have an application pending for a loan under this subsection for the same purpose and duplicative of amounts ap- plied for or received under a covered loan; and (IV) during the period beginning on February 15, 2020 and ending on Decem- ber 31, 2020, that the eligible recipient has not received amounts under this sub- section for the same purpose and dupli- cative of amounts applied for or received under a covered loan. (H) FEE WAIVER.—With respect to a cov- ered loan— (i) in lieu of the fee otherwise applicable under paragraph (23)(A), the Administrator shall collect no fee; and (ii) in lieu of the fee otherwise applicable under paragraph (18)(A), the Administrator shall collect no fee. (I) CREDIT ELSEWHERE.—During the covered period, the requirement that a small busi- ness concern is unable to obtain credit else- where, as defined in section 632(h) of this title, shall not apply to a covered loan. (J) WAIVER OF PERSONAL GUARANTEE RE- QUIREMENT.—With respect to a covered loan— (i) no personal guarantee shall be re- quired for the covered loan; and (ii) no collateral shall be required for the covered loan. (K) MATURITY FOR LOANS WITH REMAINING BALANCE AFTER APPLICATION OF FORGIVE- NESS.—With respect to a covered loan that has a remaining balance after reduction based on the loan forgiveness amount under section 636m of this title— (i) the remaining balance shall continue to be guaranteed by the Administration under this subsection; and (ii) the covered loan shall have a min- imum maturity of 5 years and a maximum maturity of 10 years from the date on which the borrower applies for loan for- giveness under that section. (L) INTEREST RATE REQUIREMENTS.—A cov- ered loan shall bear an interest rate not to exceed 4 percent, calculated on a non- compounding, non-adjustable basis. (M) LOAN DEFERMENT.— (i) DEFINITION OF IMPACTED BORROWER.— (I) IN GENERAL.—In this subparagraph, the term ‘‘impacted borrower’’ means an eligible recipient that— (aa) is in operation on February 15, 2020; and (bb) has an application for a covered loan that is approved or pending ap- proval on or after March 27, 2020. (II) PRESUMPTION.—For purposes of this subparagraph, an impacted borrower is presumed to have been adversely im- pacted by COVID–19. (ii) DEFERRAL.—The Administrator shall— (I) consider each eligible recipient that applies for a covered loan to be an im- pacted borrower; and (II) require lenders under this sub- section to provide complete payment deferment relief for impacted borrowers with covered loans, including payment of principal, interest, and fees, until the date on which the amount of forgiveness determined under section 636m of this title is remitted to the lender. (iii) SECONDARY MARKET.—With respect to a covered loan that is sold on the sec- ondary market, if an investor declines to approve a deferral requested by a lender under clause (ii), the Administrator shall exercise the authority to purchase the loan so that the impacted borrower may receive a deferral, including payment of principal, interest, and fees, until the date on which the amount of forgiveness deter- mined under section 636m of this title is remitted to the lender. (iv) GUIDANCE.—Not later than 30 days after March 27, 2020, the Administrator shall provide guidance to lenders under this paragraph on the deferment process described in this subparagraph. (v) RULE OF CONSTRUCTION.—If an eligible recipient fails to apply for forgiveness of a covered loan within 10 months after the last day of the covered period defined in section 636m(a) of this title, such eligible recipient shall make payments of prin- cipal, interest, and fees on such covered loan beginning on the day that is not ear- lier than the date that is 10 months after the last day of such covered period. (N) SECONDARY MARKET SALES.—A covered loan shall be eligible to be sold in the sec- ondary market consistent with this sub- section. The Administrator may not collect any fee for any guarantee sold into the sec- ondary market under this subparagraph. (O) REGULATORY CAPITAL REQUIREMENTS.— (i) RISK WEIGHT.—With respect to the ap- propriate Federal banking agencies or the National Credit Union Administration Board applying capital requirements under their respective risk-based capital require- ments, a covered loan shall receive a risk weight of zero percent. (ii) TEMPORARY RELIEF FROM TDR DISCLO- SURES.—Notwithstanding any other provi- sion of law, an insured depository institu- Page 819 TITLE 15—COMMERCE AND TRADE § 636 tion or an insured credit union that modi- fies a covered loan in relation to COVID–19-related difficulties in a troubled debt restructuring on or after March 13, 2020, shall not be required to comply with the Financial Accounting Standards Board Accounting Standards Codification Sub- topic 310–40 (‘‘Receivables – Troubled Debt Restructurings by Creditors’’) for purposes of compliance with the requirements of the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), until such time and under such circumstances as the appro- priate Federal banking agency or the Na- tional Credit Union Administration Board, as applicable, determines appropriate. (P) REIMBURSEMENT FOR PROCESSING.— (i) IN GENERAL.—The Administrator shall reimburse a lender authorized to make a covered loan as follows: (I) With respect to a covered loan made during the period beginning on March 27, 2020, and ending on the day before De- cember 27, 2020, the Administrator shall reimburse such a lender at a rate, based on the balance of the financing out- standing at the time of disbursement of the covered loan, of— (aa) 5 percent for loans of not more than $350,000; (bb) 3 percent for loans of more than $350,000 and less than $2,000,000; and (cc) 1 percent for loans of not less than $2,000,000. (II) With respect to a covered loan made on or after December 27, 2020, the Administrator shall reimburse such a lender— (aa) for a covered loan of not more than $50,000, in an amount equal to the lesser of— (AA) 50 percent of the balance of the financing outstanding at the time of disbursement of the covered loan; or (BB) $2,500; and (bb) at a rate, based on the balance of the financing outstanding at the time of disbursement of the covered loan, of— (AA) 5 percent for a covered loan of more than $50,000 and not more than $350,000; (BB) 3 percent for a covered loan of more than $350,000 and less than $2,000,000; and (CC) 1 percent for a covered loan of not less than $2,000,000. (ii) FEE LIMITS.—An agent that assists an eligible recipient to prepare an application for a covered loan may not collect a fee in excess of the limits established by the Ad- ministrator. If an eligible recipient has knowingly retained an agent, such fees shall be paid by the eligible recipient and may not be paid out of the proceeds of a covered loan. A lender shall only be re- sponsible for paying fees to an agent for services for which the lender directly con- tracts with the agent. (iii) TIMING.—A reimbursement described in clause (i) shall be made not later than 5 days after the reported disbursement of the covered loan and may not be required to be repaid by a lender unless the lender is found guilty of an act of fraud in con- nection with the covered loan. (iv) SENSE OF THE SENATE.—It is the sense of the Senate that the Administrator should issue guidance to lenders and agents to ensure that the processing and disbursement of covered loans prioritizes small business concerns and entities in un- derserved and rural markets, including veterans and members of the military community, small business concerns owned and controlled by socially and eco- nomically disadvantaged individuals (as defined in section 637(d)(3)(C) of this title), women, and businesses in operation for less than 2 years. (Q) DUPLICATION.—Nothing in this para- graph shall prohibit a recipient of an eco- nomic injury disaster loan made under sub- section (b)(2) that is for a purpose other than paying payroll costs and other obligations described in subparagraph (F) from receiving assistance under this paragraph. (R) WAIVER OF PREPAYMENT PENALTY.— Notwithstanding any other provision of law, there shall be no prepayment penalty for any payment made on a covered loan. (S) SET-ASIDE FOR INSURED DEPOSITORY IN- STITUTIONS, CREDIT UNIONS, AND COMMUNITY FINANCIAL INSTITUTIONS.— (i) INSURED DEPOSITORY INSTITUTIONS AND CREDIT UNIONS.—In making loan guaran- tees under this paragraph after April 24, 2020, the Administrator shall guarantee not less than $30,000,000,000 in loans made by— (I) insured depository institutions with consolidated assets of not less than $10,000,000,000 and less than $50,000,000,000; and (II) credit unions with consolidated as- sets of not less than $10,000,000,000 and less than $50,000,000,000. (ii) COMMUNITY FINANCIAL INSTITUTIONS, SMALL INSURED DEPOSITORY INSTITUTIONS, AND CREDIT UNIONS.—In making loan guar- antees under this paragraph after April 24, 2020, the Administrator shall guarantee not less than $30,000,000,000 in loans made by— (I) community financial institutions; (II) insured depository institutions with consolidated assets of less than $10,000,000,000; and (III) credit unions with consolidated assets of less than $10,000,000,000. (T) REQUIREMENT FOR DATE IN OPERATION.— A business or organization that was not in operation on February 15, 2020 shall not be eligible for a loan under this paragraph. (U) EXCLUSION OF ENTITIES RECEIVING SHUT- TERED VENUE OPERATOR GRANTS.—An eligible person or entity (as defined under of 4 sec- tion 9009a of this title) that receives a grant under such section 9009a shall not be eligible for a loan under this paragraph. Page 820 TITLE 15—COMMERCE AND TRADE § 636 8 So in original. The word ‘‘a’’ probably should appear. (V) CALCULATION OF MAXIMUM LOAN AMOUNT FOR FARMERS AND RANCHERS.— (i) DEFINITION.—In this subparagraph, the term ‘‘covered recipient’’ means an eli- gible recipient that— (I) operates as a sole proprietorship or as an independent contractor, or is an el- igible self-employed individual; (II) reports farm income or expenses on a Schedule F (or any equivalent suc- cessor schedule); and (III) was in business as of February 15, 2020. (ii) NO EMPLOYEES .—With respect to 8 covered recipient without employees, the maximum covered loan amount shall be the lesser of— (I) the sum of— (aa) the product obtained by multi- plying— (AA) the gross income of the cov- ered recipient in 2019, as reported on a Schedule F (or any equivalent suc- cessor schedule), that is not more than $100,000, divided by 12; and (BB) 2.5; and (bb) the outstanding amount of a loan under subsection (b)(2) that was made during the period beginning on January 31, 2020 and ending on April 3, 2020 that the borrower intends to refi- nance under the covered loan, not in- cluding any amount of any advance under the loan that is not required to be repaid; or (II) $2,000,000. (iii) WITH EMPLOYEES.—With respect to a covered recipient with employees, the maximum covered loan amount shall be calculated using the formula described in subparagraph (E), except that the gross in- come of the covered recipient described in clause (ii)(I)(aa)(AA) of this subparagraph, as divided by 12, shall be added to the sum calculated under subparagraph (E)(i)(I). (iv) RECALCULATION.—A lender that made a covered loan to a covered recipient be- fore December 27, 2020 may, at the request of the covered recipient— (I) recalculate the maximum loan amount applicable to that covered loan based on the formula described in clause (ii) or (iii), as applicable, if doing so would result in a larger covered loan amount; and (II) provide the covered recipient with additional covered loan amounts based on that recalculation. (W) FRAUD ENFORCEMENT HARMONIZATION.— Notwithstanding any other provision of law, any criminal charge or civil enforcement ac- tion alleging that a borrower engaged in fraud with respect to a covered loan guaran- teed under this paragraph shall be filed not later than 10 years after the offense was committed. (37) PAYCHECK PROTECTION PROGRAM SECOND DRAW LOANS.— (A) DEFINITIONS.—In this paragraph— (i) the terms ‘‘additional covered non- profit entity’’, ‘‘eligible self-employed in- dividual’’, ‘‘housing cooperative’’, ‘‘non- profit organization’’, ‘‘payroll costs’’, ‘‘seasonal employer’’, and ‘‘veterans orga- nization’’ have the meanings given those terms in paragraph (36), except that ‘‘eligi- ble entity’’ shall be substituted for ‘‘eligi- ble recipient’’ each place it appears in the definitions of those terms; (ii) the term ‘‘covered loan’’ means a loan made under this paragraph; (iii) the terms ‘‘covered mortgage obliga- tion’’, ‘‘covered operating expenditure’’, ‘‘covered property damage cost’’, ‘‘covered rent obligation’’, ‘‘covered supplier cost’’, ‘‘covered utility payment’’, and ‘‘covered worker protection expenditure’’ have the meanings given those terms in section 636m(a) of this title; (iv) the term ‘‘eligible entity’’— (I) means any business concern, non- profit organization, housing cooperative, veterans organization, Tribal business concern, eligible self-employed indi- vidual, sole proprietor, independent con- tractor, or small agricultural coopera- tive that— (aa) employs not more than 300 em- ployees; and (bb)(AA) except as provided in subitems (BB), (CC), and (DD), had gross receipts during the first, second, third, or, only with respect to an appli- cation submitted on or after January 1, 2021, fourth quarter in 2020 that dem- onstrate not less than a 25 percent re- duction from the gross receipts of the entity during the same quarter in 2019; (BB) if the entity was not in business during the first or second quarter of 2019, but was in business during the third and fourth quarter of 2019, had gross receipts during the first, second, third, or, only with respect to an appli- cation submitted on or after January 1, 2021, fourth quarter of 2020 that dem- onstrate not less than a 25 percent re- duction from the gross receipts of the entity during the third or fourth quar- ter of 2019; (CC) if the entity was not in business during the first, second, or third quar- ter of 2019, but was in business during the fourth quarter of 2019, had gross re- ceipts during the first, second, third, or, only with respect to an application submitted on or after January 1, 2021, fourth quarter of 2020 that dem- onstrate not less than a 25 percent re- duction from the gross receipts of the entity during the fourth quarter of 2019; or (DD) if the entity was not in business during 2019, but was in operation on February 15, 2020, had gross receipts during the second, third, or, only with respect to an application submitted on or after January 1, 2021, fourth quarter of 2020 that demonstrate not less than Page 821 TITLE 15—COMMERCE AND TRADE § 636 a 25 percent reduction from the gross receipts of the entity during the first quarter of 2020; (II) includes a business concern or or- ganization made eligible for a loan under paragraph (36) under subclause (II), (III), or (IV) of clause (iii), subclause (IV) or (V) of clause (iv), clause (vii), or clause (ix) of subparagraph (D) of paragraph (36) and that meets the requirements de- scribed in items (aa) and (bb) of sub- clause (I); and (III) does not include— (aa) any entity that is a type of busi- ness concern (or would be, if such enti- ty were a business concern) described in section 120.110 of title 13, Code of Federal Regulations (or in any suc- cessor regulation or other related guid- ance or rule that may be issued by the Administrator) other than a business concern described in subsection (a) or (k) of such section; or (bb) any business concern or entity primarily engaged in political or lob- bying activities, which shall include any entity that is organized for re- search or for engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public docu- ments; (cc) any business concern or entity— (AA) for which an entity created in or organized under the laws of the People’s Republic of China or the Special Administrative Region of Hong Kong, or that has significant operations in the People’s Republic of China or the Special Administra- tive Region of Hong Kong, owns or holds, directly or indirectly, not less than 20 percent of the economic in- terest of the business concern or en- tity, including as equity shares or a capital or profit interest in a limited liability company or partnership; or (BB) that retains, as a member of the board of directors of the business concern, a person who is a resident of the People’s Republic of China; (dd) any person required to submit a registration statement under section 612 of title 22; or (ee) an eligible person or entity (as defined under section 9009a of this title) that receives a grant under such section 9009a; and (v) the term ‘‘Tribal business concern’’ means a Tribal business concern described in section 657a(b)(2)(C) of this title. (B) LOANS.—Except as otherwise provided in this paragraph, the Administrator may guarantee covered loans to eligible entities under the same terms, conditions, and proc- esses as a loan made under paragraph (36). (C) MAXIMUM LOAN AMOUNT.— (i) IN GENERAL.—Except as otherwise pro- vided in this subparagraph, the maximum amount of a covered loan made to an eligi- ble entity is the lesser of— (I) the product obtained by multi- plying— (aa) at the election of the eligible en- tity, the average total monthly pay- ment for payroll costs incurred or paid by the eligible entity during— (AA) the 1-year period before the date on which the loan is made; or (BB) calendar year 2019; by (bb) 2.5; or (II) $2,000,000. (ii) SEASONAL EMPLOYERS.—The max- imum amount of a covered loan made to an eligible entity that is a seasonal em- ployer is the lesser of— (I) the product obtained by multi- plying— (aa) at the election of the eligible en- tity, the average total monthly pay- ments for payroll costs incurred or paid by the eligible entity for any 12- week period between February 15, 2019 and February 15, 2020; by (bb) 2.5; or (II) $2,000,000. (iii) NEW ENTITIES.—The maximum amount of a covered loan made to an eligi- ble entity that did not exist during the 1- year period preceding February 15, 2020 is the lesser of— (I) the product obtained by multi- plying— (aa) the quotient obtained by divid- ing— (AA) the sum of the total monthly payments by the eligible entity for payroll costs paid or incurred by the eligible entity as of the date on which the eligible entity applies for the covered loan; by (BB) the number of months in which those payroll costs were paid or incurred; by (bb) 2.5; or (II) $2,000,000. (iv) NAICS 72 ENTITIES.—The maximum amount of a covered loan made to an eligi- ble entity that is assigned a North Amer- ican Industry Classification System code beginning with 72 at the time of disbursal is the lesser of— (I) the product obtained by multi- plying— (aa) at the election of the eligible en- tity, the average total monthly pay- ment for payroll costs incurred or paid by the eligible entity during— (AA) the 1-year period before the date on which the loan is made; or (BB) calendar year 2019; by (bb) 3.5; or (II) $2,000,000. (D) BUSINESS CONCERNS WITH MORE THAN 1 PHYSICAL LOCATION.— Page 822 TITLE 15—COMMERCE AND TRADE § 636 (i) IN GENERAL.—For a business concern with more than 1 physical location, the business concern shall be an eligible entity if the business concern would be eligible for a loan under paragraph (36) pursuant to clause (iii) of subparagraph (D) of such paragraph, as applied in accordance with clause (ii) of this subparagraph, and meets the revenue reduction requirements de- scribed in item (bb) of subparagraph (A)(iv)(I). (ii) SIZE LIMIT.—For purposes of applying clause (i), the Administrator shall sub- stitute ‘‘not more than 300 employees’’ for ‘‘not more than 500 employees’’ in para- graph (36)(D)(iii). (E) WAIVER OF AFFILIATION RULES.— (i) IN GENERAL.—The waiver described in paragraph (36)(D)(iv) shall apply for pur- poses of determining eligibility under this paragraph. (ii) SIZE LIMIT.—For purposes of applying clause (i), the Administrator shall sub- stitute ‘‘not more than 300 employees’’ for ‘‘not more than 500 employees’’ in sub- clause (I) and (IV) of paragraph (36)(D)(iv). (F) LOAN NUMBER LIMITATION.—An eligible entity may only receive 1 covered loan. (G) EXCEPTION FROM CERTAIN CERTIFICATION REQUIREMENTS.—An eligible entity applying for a covered loan shall not be required to make the certification described in clause (iii) or (iv) of paragraph (36)(G). (H) FEE WAIVER.—With respect to a cov- ered loan— (i) in lieu of the fee otherwise applicable under paragraph (23)(A), the Administrator shall collect no fee; and (ii) in lieu of the fee otherwise applicable under paragraph (18)(A), the Administrator shall collect no fee. (I) GROSS RECEIPTS AND SIMPLIFIED CERTIFI- CATION OF REVENUE TEST.— (i) LOANS OF UP TO $150,000.—For a covered loan of not more than $150,000, the eligible entity— (I) may submit a certification attest- ing that the eligible entity meets the ap- plicable revenue loss requirement under subparagraph (A)(iv)(I)(bb); and (II) if the eligible entity submits a cer- tification under subclause (I), shall, on or before the date on which the eligible entity submits an application for for- giveness under subparagraph (J), produce adequate documentation that the eligi- ble entity met such revenue loss stand- ard. (ii) FOR NONPROFIT AND VETERANS ORGA- NIZATIONS.—For purposes of calculating gross receipts under subparagraph (A)(iv)(I)(bb) for an eligible entity that is a nonprofit organization, a veterans organi- zation, or an organization described in sub- paragraph (A)(iv)(II), gross receipts means gross receipts within the meaning of sec- tion 6033 of title 26. (J) LOAN FORGIVENESS.— (i) DEFINITION OF COVERED PERIOD.—In this subparagraph, the term ‘‘covered pe- riod’’ has the meaning given that term in section 636m(a) of this title. (ii) FORGIVENESS GENERALLY.—Except as otherwise provided in this subparagraph, an eligible entity shall be eligible for for- giveness of indebtedness on a covered loan in the same manner as an eligible recipi- ent with respect to a loan made under paragraph (36) of this section, as described in section 636m of this title. (iii) FORGIVENESS AMOUNT.—An eligible entity shall be eligible for forgiveness of indebtedness on a covered loan in an amount equal to the sum of the following costs incurred or expenditures made dur- ing the covered period: (I) Payroll costs, excluding any payroll costs that are— (aa) qualified wages, as defined in subsection (c)(3) of section 2301 of the CARES Act (26 U.S.C. 3111 note), taken into account in determining the credit allowed under such section; (bb) qualified wages taken into ac- count in determining the credit al- lowed under subsection (a) or (d) of section 303 of the Taxpayer Certainty and Disaster Relief Act of 2020; or (cc) premiums taken into account in determining the credit allowed under section 6432 of title 26. (II) Any payment of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mort- gage obligation). (III) Any covered operations expendi- ture. (IV) Any covered property damage cost. (V) Any payment on any covered rent obligation. (VI) Any covered utility payment. (VII) Any covered supplier cost. (VIII) Any covered worker protection expenditure. (iv) LIMITATION ON FORGIVENESS FOR ALL ELIGIBLE ENTITIES.—Subject to any reduc- tions under section 636m(d) of this title, the forgiveness amount under this sub- paragraph shall be equal to the lesser of— (I) the amount described in clause (ii); and (II) the amount equal to the quotient obtained by dividing— (aa) the amount of the covered loan used for payroll costs during the cov- ered period; and (bb) 0.60. (v) SUBMISSION OF MATERIALS FOR FOR- GIVENESS.—For purposes of applying sub- section (l)(1) of section 636m of this title to a covered loan of not more than $150,000 under this paragraph, an eligible entity may be required to provide, at the time of the application for forgiveness, docu- mentation required to substantiate rev- enue loss in accordance with subparagraph (I). (K) LENDER ELIGIBILITY.—Except as other- wise provided in this paragraph, a lender ap- Page 823 TITLE 15—COMMERCE AND TRADE § 636 9 So in original. The comma probably should not appear. proved to make loans under paragraph (36) may make covered loans under the same terms and conditions as in paragraph (36). (L) REIMBURSEMENT FOR LOAN PROCESSING AND SERVICING.—The Administrator shall re- imburse a lender authorized to make a cov- ered loan— (i) for a covered loan of not more than $50,000, in an amount equal to the lesser of— (I) 50 percent of the balance of the fi- nancing outstanding at the time of dis- bursement of the covered loan; or (II) $2,500; (ii) at a rate, based on the balance of the financing outstanding at the time of dis- bursement of the covered loan, of— (I) 5 percent for a covered loan of more than $50,000 and not more than $350,000; and (II) 3 percent for a covered loan of more than $350,000. (M) PUBLICATION OF GUIDANCE.—Not later than 10 days after December 27, 2020, the Ad- ministrator shall issue guidance addressing barriers to accessing capital for minority, underserved, veteran, and women-owned business concerns for the purpose of ensur- ing equitable access to covered loans. (N) STANDARD OPERATING PROCEDURE.—The Administrator shall, to the maximum extent practicable, allow a lender approved to make covered loans to use existing program guid- ance and standard operating procedures for loans made under this subsection. (O) SUPPLEMENTAL COVERED LOANS.—A cov- ered loan under this paragraph may only be made to an eligible entity that— (i) has received a loan under paragraph (36); and (ii) on or before the expected date on which the covered loan under this para- graph is disbursed to the eligible entity, has used, or will use, the full amount of the loan received under paragraph (36). (P) FRAUD ENFORCEMENT HARMONIZATION.— Notwithstanding any other provision of law, any criminal charge or civil enforcement ac- tion alleging that a borrower engaged in fraud with respect to a covered loan guaran- teed under this paragraph shall be filed not later than 10 years after the offense was committed. (b) Disaster loans; authorization, scope, terms and conditions, etc. Except as to agricultural enterprises as de- fined in section 647(b)(1) of this title, the Admin- istration also is empowered to the extent and in such amounts as provided in advance in appro- priation Acts— (1)(A) to make such loans (either directly or in cooperation with banks or other lending in- stitutions through agreements to participate on an immediate or deferred (guaranteed) basis) as the Administration may determine to be necessary or appropriate to repair, rehabili- tate or replace property, real or personal, damaged or destroyed by or as a result of nat- ural or other disasters: Provided, That such damage or destruction is not compensated for by insurance or otherwise: And provided fur- ther, That the Administration may increase the amount of the loan by up to an additional 20 per centum of the aggregate costs of such damage or destruction (whether or not com- pensated for by insurance or otherwise) if it determines such increase to be necessary or appropriate in order to protect the damaged or destroyed property from possible future disas- ters by taking mitigating measures, includ- ing— (i) construction of retaining walls and sea walls; (ii) grading and contouring land; and (iii) relocating utilities and modifying structures, including construction of a safe room or similar storm shelter designed to protect property and occupants from torna- does or other natural disasters, if such safe room or similar storm shelter is constructed in accordance with applicable standards issued by the Federal Emergency Manage- ment Agency; (B) to refinance any mortgage or other lien against a totally destroyed or substantially damaged home or business concern: Provided, That no loan or guarantee shall be extended unless the Administration finds that (i) the applicant is not able to obtain credit else- where; (ii) such property is to be repaired, re- habilitated, or replaced; (iii) the amount refi- nanced shall not exceed the amount of phys- ical loss sustained; and (iv) such amounts shall be reduced to the extent such mortgage or lien is satisfied by insurance or otherwise; and (C) during fiscal years 2000 through 2004, to establish a predisaster mitigation program to make such loans (either directly or in coopera- tion with banks or other lending institutions through agreements to participate on an im- mediate or deferred (guaranteed) basis), as the Administrator may determine to be necessary or appropriate, to enable small businesses to use mitigation techniques in support of a for- mal mitigation program established by the Federal Emergency Management Agency, ex- cept that no loan or guarantee may be ex- tended to a small business under this subpara- graph unless the Administration finds that the small business is otherwise unable to obtain credit for the purposes described in this sub- paragraph; (2) to make such loans (either directly or in cooperation with banks or other lending insti- tutions through agreements to participate on an immediate or deferred (guaranteed) basis) as the Administration may determine to be necessary or appropriate to any small business concern, private nonprofit organization, or small agricultural cooperative located in an area affected by a disaster,9 (including drought), with respect to both farm-related and nonfarm-related small business concerns, if the Administration determines that the con- cern, the organization, or the cooperative has suffered a substantial economic injury as a re- Page 824 TITLE 15—COMMERCE AND TRADE § 636 10 So in original. Probably should be ‘‘therefor,’’. 11 So in original. Probably should be ‘‘has’’. sult of such disaster and if such disaster con- stitutes— (A) a major disaster, as determined by the President under the Robert T. Stafford Dis- aster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.); (B) a natural disaster, as determined by the Secretary of Agriculture pursuant to section 1961 of title 7, in which case, assist- ance under this paragraph may be provided to farm-related and nonfarm-related small business concerns, subject to the other ap- plicable requirements of this paragraph; (C) a disaster, as determined by the Ad- ministrator of the Small Business Adminis- tration; (D) an emergency involving Federal pri- mary responsibility determined to exist by the President under the section 5191(b) of title 42; or (E) if no disaster or emergency declaration has been issued pursuant to subparagraph (A), (B), (C), or (D), the Governor of a State in which a disaster or emergency has oc- curred may certify to the Small Business Administration that small business con- cerns, private nonprofit organizations, or small agricultural cooperatives (1) have suf- fered economic injury as a result of such dis- aster or emergency, and (2) are in need of fi- nancial assistance which is not available on reasonable terms in the disaster- or emer- gency-stricken area. Not later than 30 days after the date of receipt of such certification by a Governor of a State, the Administra- tion shall respond in writing to that Gov- ernor on its determination and the reasons therefore,10 and may then make such loans as would have been available under this paragraph if a disaster or emergency dec- laration had been issued. Provided, That no loan or guarantee shall be extended pursuant to this paragraph (2) unless the Administration finds that the applicant is not able to obtain credit elsewhere: Provided further, That for purposes of subparagraph (D), the Administrator shall deem that such an emergency affects each State or subdivision thereof (including counties), and that each State or subdivision has sufficient economic damage to small business concerns to qualify for assistance under this paragraph and the Administrator shall accept applications for such assistance immediately. (3)(A) In this paragraph— (i) the term ‘‘active service’’ has the mean- ing given that term in section 101(d)(3) of title 10; (ii) the term ‘‘essential employee’’ means an individual who is employed by a small business concern and whose managerial or technical expertise is critical to the success- ful day-to-day operations of that small busi- ness concern; and (iii) the term ‘‘substantial economic in- jury’’ means an economic harm to a business concern that results in the inability of the business concern— (I) to meet its obligations as they ma- ture; (II) to pay its ordinary and necessary op- erating expenses; or (III) to market, produce, or provide a product or service ordinarily marketed, produced, or provided by the business con- cern. (B) The Administration may make such dis- aster loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an im- mediate or deferred basis) to assist a small business concern that has suffered or that is likely to suffer substantial economic injury as the result of an essential employee of such small business concern being ordered to per- form active service for a period of more than 30 consecutive days. (C) A small business concern described in subparagraph (B) shall be eligible to apply for assistance under this paragraph during the pe- riod beginning on the date on which the essen- tial employee is ordered to active service and ending on the date that is 1 year after the date on which such essential employee is dis- charged or released from active service. The Administrator may, when appropriate (as de- termined by the Administrator), extend the ending date specified in the preceding sentence by not more than 1 year. (D) Any loan or guarantee extended pursu- ant to this paragraph shall be made at the same interest rate as economic injury loans under paragraph (2). (E) No loan may be made under this para- graph, either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis, if the total amount outstanding and committed to the borrower under this sub- section would exceed $1,500,000, unless such ap- plicant constitutes, or have 11 become due to changed economic circumstances, a major source of employment in its surrounding area, as determined by the Administration, in which case the Administration, in its discretion, may waive the $1,500,000 limitation. (F) For purposes of assistance under this paragraph, no declaration of a disaster area shall be required. (G)(i) Notwithstanding any other provision of law, the Administrator may make a loan under this paragraph of not more than $50,000 without collateral. (ii) The Administrator may defer payment of principal and interest on a loan described in clause (i) during the longer of— (I) the 1-year period beginning on the date of the initial disbursement of the loan; and (II) the period during which the relevant essential employee is on active service. (H) The Administrator shall give priority to any application for a loan under this para- graph and shall process and make a deter- mination regarding such applications prior to processing or making a determination on other loan applications under this subsection, on a rolling basis. Page 825 TITLE 15—COMMERCE AND TRADE § 636 (4) COORDINATION WITH FEMA.— (A) IN GENERAL.—Notwithstanding any other provision of law, for any disaster de- clared under this subsection or major dis- aster (including any major disaster relating to which the Administrator declares eligi- bility for additional disaster assistance under paragraph (9)), the Administrator, in consultation with the Administrator of the Federal Emergency Management Agency, shall ensure, to the maximum extent prac- ticable, that all application periods for dis- aster relief under this chapter correspond with application deadlines established under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), or as extended by the President. (B) DEADLINES.—Notwithstanding any other provision of law, not later than 10 days before the closing date of an application pe- riod for a major disaster (including any major disaster relating to which the Admin- istrator declares eligibility for additional disaster assistance under paragraph (9)), the Administrator, in consultation with the Ad- ministrator of the Federal Emergency Man- agement Agency, shall submit to the Com- mittee on Small Business and Entrepreneur- ship of the Senate and the Committee on Small Business of the House of Representa- tives a report that includes— (i) the deadline for submitting applica- tions for assistance under this chapter re- lating to that major disaster; (ii) information regarding the number of loan applications and disbursements proc- essed by the Administrator relating to that major disaster for each day during the period beginning on the date on which that major disaster was declared and end- ing on the date of that report; and (iii) an estimate of the number of poten- tial applicants that have not submitted an application relating to that major dis- aster. (5) PUBLIC AWARENESS OF DISASTERS.—If a disaster is declared under this subsection or the Administrator declares eligibility for addi- tional disaster assistance under paragraph (9), the Administrator shall make every effort to communicate through radio, television, print, and web-based outlets, all relevant informa- tion needed by disaster loan applicants, in- cluding— (A) the date of such declaration; (B) cities and towns within the area of such declaration; (C) loan application deadlines related to such disaster; (D) all relevant contact information for victim services available through the Ad- ministration (including links to small busi- ness development center websites); (E) links to relevant Federal and State dis- aster assistance websites, including links to websites providing information regarding as- sistance available from the Federal Emer- gency Management Agency; (F) information on eligibility criteria for Administration loan programs, including where such applications can be found; and (G) application materials that clearly state the function of the Administration as the Federal source of disaster loans for homeowners and renters. (6) AUTHORITY FOR QUALIFIED PRIVATE CON- TRACTORS.— (A) DISASTER LOAN PROCESSING.—The Ad- ministrator may enter into an agreement with a qualified private contractor, as deter- mined by the Administrator, to process loans under this subsection in the event of a major disaster (including any major disaster relating to which the Administrator declares eligibility for additional disaster assistance under paragraph (9)), under which the Ad- ministrator shall pay the contractor a fee for each loan processed. (B) LOAN LOSS VERIFICATION SERVICES.— The Administrator may enter into an agree- ment with a qualified lender or loss verification professional, as determined by the Administrator, to verify losses for loans under this subsection in the event of a major disaster (including any major disaster relat- ing to which the Administrator declares eli- gibility for additional disaster assistance under paragraph (9)), under which the Ad- ministrator shall pay the lender or verification professional a fee for each loan for which such lender or verification profes- sional verifies losses. (7) DISASTER ASSISTANCE EMPLOYEES.— (A) IN GENERAL.—In carrying out this sec- tion, the Administrator may, where prac- ticable, ensure that the number of full-time equivalent employees— (i) in the Office of the Disaster Assist- ance is not fewer than 800; and (ii) in the Disaster Cadre of the Adminis- tration is not fewer than 1,000. (B) REPORT.—In carrying out this sub- section, if the number of full-time employees for either the Office of Disaster Assistance or the Disaster Cadre of the Administration is below the level described in subparagraph (A) for that office, not later than 21 days after the date on which that staffing level decreased below the level described in sub- paragraph (A), the Administrator shall sub- mit to the Committee on Appropriations and the Committee on Small Business and En- trepreneurship of the Senate and the Com- mittee on Appropriations and Committee on Small Business of the House of Representa- tives, a report— (i) detailing staffing levels on that date; (ii) requesting, if practicable and deter- mined appropriate by the Administrator, additional funds for additional employees; and (iii) containing such additional informa- tion, as determined appropriate by the Ad- ministrator. (8) INCREASED LOAN CAPS.— (A) AGGREGATE LOAN AMOUNTS.—Except as provided in subparagraph (B), and notwith- standing any other provision of law, the ag- gregate loan amount outstanding and com- mitted to a borrower under this subsection may not exceed $2,000,000. Page 826 TITLE 15—COMMERCE AND TRADE § 636 (B) WAIVER AUTHORITY.—The Adminis- trator may, at the discretion of the Admin- istrator, increase the aggregate loan amount under subparagraph (A) for loans relating to a disaster to a level established by the Ad- ministrator, based on appropriate economic indicators for the region in which that dis- aster occurred. (9) DECLARATION OF ELIGIBILITY FOR ADDI- TIONAL DISASTER ASSISTANCE.— (A) IN GENERAL.—If the President declares a major disaster, the Administrator may de- clare eligibility for additional disaster as- sistance in accordance with this paragraph. (B) THRESHOLD.—A major disaster for which the Administrator declares eligibility for additional disaster assistance under this paragraph shall— (i) have resulted in extraordinary levels of casualties or damage or disruption se- verely affecting the population (including mass evacuations), infrastructure, envi- ronment, economy, national morale, or government functions in an area; (ii) be comparable to the description of a catastrophic incident in the National Re- sponse Plan of the Administration, or any successor thereto, unless there is no suc- cessor to such plan, in which case this clause shall have no force or effect; and (iii) be of such size and scope that— (I) the disaster assistance programs under the other paragraphs under this subsection are incapable of providing adequate and timely assistance to indi- viduals or business concerns located within the disaster area; or (II) a significant number of business concerns outside the disaster area have suffered disaster-related substantial eco- nomic injury as a result of the incident. (C) ADDITIONAL ECONOMIC INJURY DISASTER LOAN ASSISTANCE.— (i) IN GENERAL.—If the Administrator de- clares eligibility for additional disaster as- sistance under this paragraph, the Admin- istrator may make such loans under this subparagraph (either directly or in co- operation with banks or other lending in- stitutions through agreements to partici- pate on an immediate or deferred basis) as the Administrator determines appropriate to eligible small business concerns located anywhere in the United States. (ii) PROCESSING TIME.— (I) IN GENERAL.—If the Administrator determines that the average processing time for applications for disaster loans under this subparagraph relating to a specific major disaster is more than 15 days, the Administrator shall give pri- ority to the processing of such applica- tions submitted by eligible small busi- ness concerns located inside the disaster area, until the Administrator determines that the average processing time for such applications is not more than 15 days. (II) SUSPENSION OF APPLICATIONS FROM OUTSIDE DISASTER AREA.—If the Adminis- trator determines that the average proc- essing time for applications for disaster loans under this subparagraph relating to a specific major disaster is more than 30 days, the Administrator shall suspend the processing of such applications sub- mitted by eligible small business con- cerns located outside the disaster area, until the Administrator determines that the average processing time for such ap- plications is not more than 15 days. (iii) LOAN TERMS.—A loan under this sub- paragraph shall be made on the same terms as a loan under paragraph (2). (D) DEFINITIONS.—In this paragraph— (i) the term ‘‘disaster area’’ means the area for which the applicable major dis- aster was declared; (ii) the term ‘‘disaster-related substan- tial economic injury’’ means economic harm to a business concern that results in the inability of the business concern to— (I) meet its obligations as it matures; (II) meet its ordinary and necessary operating expenses; or (III) market, produce, or provide a product or service ordinarily marketed, produced, or provided by the business concern because the business concern re- lies on materials from the disaster area or sells or markets in the disaster area; and (iii) the term ‘‘eligible small business concern’’ means a small business con- cern— (I) that has suffered disaster-related substantial economic injury as a result of the applicable major disaster; and (II)(aa) for which not less than 25 per- cent of the market share of that small business concern is from business trans- acted in the disaster area; (bb) for which not less than 25 percent of an input into a production process of that small business concern is from the disaster area; or (cc) that relies on a provider located in the disaster area for a service that is not readily available elsewhere. (10) REDUCING CLOSING AND DISBURSEMENT DELAYS.—The Administrator shall provide a clear and concise notification on all applica- tion materials for loans made under this sub- section and on relevant websites notifying an applicant that the applicant may submit all documentation necessary for the approval of the loan at the time of application and that failure to submit all documentation could delay the approval and disbursement of the loan. (11) INCREASING TRANSPARENCY IN LOAN AP- PROVALS.—The Administrator shall establish and implement clear, written policies and pro- cedures for analyzing the ability of a loan ap- plicant to repay a loan made under this sub- section. (12) ADDITIONAL AWARDS TO SMALL BUSINESS DEVELOPMENT CENTERS, WOMEN’S BUSINESS CEN- TERS, AND SCORE FOR DISASTER RECOVERY.— Page 827 TITLE 15—COMMERCE AND TRADE § 636 12 So in original. Two pars. (16) have been enacted. (A) IN GENERAL.—The Administration may provide financial assistance to a small busi- ness development center, a women’s business center described in section 656 of this title, the Service Corps of Retired Executives, or any proposed consortium of such individuals or entities to spur disaster recovery and growth of small business concerns located in an area for which the President has declared a major disaster. (B) FORM OF FINANCIAL ASSISTANCE.—Fi- nancial assistance provided under this para- graph shall be in the form of a grant, con- tract, or cooperative agreement. (C) NO MATCHING FUNDS REQUIRED.—Match- ing funds shall not be required for any grant, contract, or cooperative agreement under this paragraph. (D) REQUIREMENTS.—A recipient of finan- cial assistance under this paragraph shall provide counseling, training, and other re- lated services, such as promoting long-term resiliency, to small business concerns and entrepreneurs impacted by a major disaster. (E) PERFORMANCE.— (i) IN GENERAL.—The Administrator, in cooperation with the recipients of finan- cial assistance under this paragraph, shall establish metrics and goals for perform- ance of grants, contracts, and cooperative agreements under this paragraph, which shall include recovery of sales, recovery of employment, reestablishment of business premises, and establishment of new small business concerns. (ii) USE OF ESTIMATES.—The Adminis- trator shall base the goals and metrics for performance established under clause (i), in part, on the estimates of disaster im- pact prepared by the Office of Disaster As- sistance for purposes of estimating loan- making requirements. (F) TERM.— (i) IN GENERAL.—The term of any grant, contract, or cooperative agreement under this paragraph shall be for not more than 2 years. (ii) EXTENSION.—The Administrator may make 1 extension of a grant, contract, or cooperative agreement under this para- graph for a period of not more than 1 year, upon a showing of good cause and need for the extension. (G) EXEMPTION FROM OTHER PROGRAM RE- QUIREMENTS.—Financial assistance provided under this paragraph is in addition to, and wholly separate from, any other form of as- sistance provided by the Administrator under this chapter. (H) COMPETITIVE BASIS.—The Administra- tion shall award financial assistance under this paragraph on a competitive basis. (13) SUPPLEMENTAL ASSISTANCE FOR CON- TRACTOR MALFEASANCE.— (A) IN GENERAL.—If a contractor or other person engages in malfeasance in connection with repairs to, rehabilitation of, or replace- ment of real or personal property relating to which a loan was made under this subsection and the malfeasance results in substantial economic damage to the recipient of the loan or substantial risks to health or safety, upon receiving documentation of the sub- stantial economic damage or the substantial risk to health and safety from an inde- pendent loss verifier, and subject to subpara- graph (B), the Administrator may increase the amount of the loan under this sub- section, as necessary for the cost of repairs, rehabilitation, or replacement needed to ad- dress the cause of the economic damage or health or safety risk. (B) REQUIREMENTS.—The Administrator may only increase the amount of a loan under subparagraph (A) upon receiving an appropriate certification from the borrower and person performing the mitigation at- testing to the reasonableness of the mitiga- tion costs and an assignment of any proceeds received from the person engaging in the malfeasance. The assignment of proceeds re- covered from the person engaging in the malfeasance shall be equal to the amount of the loan under this section. Any mitigation activities shall be subject to audit and inde- pendent verification of completeness and cost reasonableness. (14) BUSINESS RECOVERY CENTERS.— (A) IN GENERAL.—The Administrator, act- ing through the district offices of the Ad- ministration, shall identify locations that may be used as recovery centers by the Ad- ministration in the event of a disaster de- clared under this subsection or a major dis- aster. (B) REQUIREMENTS FOR IDENTIFICATION.— Each district office of the Administration shall— (i) identify a location described in sub- paragraph (A) in each county, parish, or similar unit of general local government in the area served by the district office; and (ii) ensure that the locations identified under subparagraph (A) may be used as a recovery center without cost to the Gov- ernment, to the extent practicable. (15) INCREASED OVERSIGHT OF ECONOMIC IN- JURY DISASTER LOANS.—The Administrator shall increase oversight of entities receiving loans under paragraph (2), and may consider— (A) scheduled site visits to ensure bor- rower eligibility and compliance with re- quirements established by the Adminis- trator; and (B) reviews of the use of the loan proceeds by an entity described in paragraph (2) to en- sure compliance with requirements estab- lished by the Administrator. (16) 12 DISASTER DECLARATION IN RURAL AREAS.— (A) DEFINITIONS.—In this paragraph— (i) the term ‘‘rural area’’ means any county or other political subdivision of a State, the District of Columbia, or a terri- tory or possession of the United States that is designated as a rural area by the Bureau of the Census; and Page 828 TITLE 15—COMMERCE AND TRADE § 636 (ii) the term ‘‘significant damage’’ means, with respect to property, uninsured losses of not less than 40 percent of the es- timated fair replacement value or pre-dis- aster fair market value of the damaged property, whichever is lower. (B) DISASTER DECLARATION.—For the pur- pose of making loans under paragraph (1) or (2), the Administrator may declare a dis- aster in a rural area for which a major dis- aster was declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) and for which individual assist- ance was not authorized under section 408 of such Act (42 U.S.C. 5174) if— (i) the Governor of the State or the Chief Executive of the Indian tribal government in which the rural area is located requests such a declaration; and (ii) any home, small business concern, private nonprofit organization, or small agricultural cooperative has incurred sig- nificant damage in the rural area. (C) SBA REPORT.—Not later than 120 days after December 20, 2022, and every year thereafter, the Administrator shall submit to the Committee on Small Business and En- trepreneurship of the Senate and the Com- mittee on Small Business of the House of Representatives a report on, with respect to the 1-year period preceding submission of the report— (i) any economic injury that resulted from a major disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) in a rural area; (ii) each request for assistance made by the Governor of a State or the Chief Exec- utive of an Indian tribal government under subparagraph (B)(i) and the response of the Administrator, including the timeline for each response; and (iii) any regulatory changes that will im- pact the ability of communities in rural areas to obtain disaster assistance under this subsection. (16) 12 STATUTE OF LIMITATIONS.—Notwith- standing any other provision of law, any criminal charge or civil enforcement action alleging that a borrower engaged in fraud with respect to a loan made under this subsection in response to COVID–19 during the covered period (as defined in section 9009(a) of this title) shall be filed not later than 10 years after the offense was committed. No loan under this subsection, including re- newals and extensions thereof, may be made for a period or periods exceeding thirty years: Pro- vided, That the Administrator may consent to a suspension in the payment of principal and in- terest charges on, and to an extension in the maturity of, the Federal share of any loan under this subsection for a period not to exceed five years, if (A) the borrower under such loan is a homeowner or a small business concern, (B) the loan was made to enable (i) such homeowner to repair or replace his home, or (ii) such concern to repair or replace plant or equipment which was damaged or destroyed as the result of a dis- aster meeting the requirements of clause (A) or (B) of paragraph (2) of this subsection, and (C) the Administrator determines such action is necessary to avoid severe financial hardship: Provided further, That the provisions of para- graph (1) of subsection (d) of this section shall not be applicable to any such loan having a ma- turity in excess of twenty years. Notwith- standing any other provision of law, and except as provided in subsection (d), the interest rate on the Administration’s share of any loan made under subsection (b) shall not exceed the aver- age annual interest rate on all interest-bearing obligations of the United States then forming a part of the public debt as computed at the end of the fiscal year next preceding the date of the loan and adjusted to the nearest one-eighth of 1 per centum plus one-quarter of 1 per centum: Provided, however, That the interest rate for loans made under paragraphs (1) and (2) hereof shall not exceed the rate of interest which is in effect at the time of the occurrence of the dis- aster. In agreements to participate in loans on a deferred basis under this subsection, such par- ticipation by the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement. Notwithstanding any other provision of law, the interest rate on the Administration’s share of any loan made pursuant to paragraph (1) of this subsection to repair or replace a primary resi- dence and/or replace or repair damaged or de- stroyed personal property, less the amount of compensation by insurance or otherwise, with respect to a disaster occurring on or after July 1, 1976, and prior to October 1, 1978, shall be: 1 per centum on the amount of such loan not ex- ceeding $10,000, and 3 per centum on the amount of such loan over $10,000 but not exceeding $40,000. The interest rate on the Administra- tion’s share of the first $250,000 of all other loans made pursuant to paragraph (1) of this sub- section, with respect to a disaster occurring on or after July 1, 1976, and prior to October 1, 1978, shall be 3 per centum. All repayments of prin- cipal on the Administration’s share of any loan made under the above provisions shall first be applied to reduce the principal sum of such loan which bears interest at the lower rates provided in this paragraph. The principal amount of any loan made pursuant to paragraph (1) in connec- tion with a disaster which occurs on or after April 1, 1977, but prior to January 1, 1978, may be increased by such amount, but not more than $2,000, as the Administration determines to be reasonable in light of the amount and nature of loss, damage, or injury sustained in order to fi- nance the installation of insulation in the prop- erty which was lost, damaged, or injured, if the uninsured, damaged portion of the property is 10 per centum or more of the market value of the property at the time of the disaster. Not later than June 1, 1978, the Administration shall pre- pare and transmit to the Select Committee on Small Business of the Senate, the Committee on Small Business of the House of Representatives, and the Committees of the Senate and House of Representatives having jurisdiction over meas- Page 829 TITLE 15—COMMERCE AND TRADE § 636 13 See 1980 Amendment note below. 14 So in original. Probably should be ‘‘or (2)’’. ures relating to energy conservation, a report on its activities under this paragraph, including therein an evaluation of the effect of such ac- tivities on encouraging the installation of insu- lation in property which is repaired or replaced after a disaster which is subject to this para- graph, and its recommendations with respect to the continuation, modification, or termination of such activities. In the administration of the disaster loan pro- gram under paragraphs (1) and (2) of this sub- section, in the case of property loss or damage or injury resulting from a major disaster as de- termined by the President or a disaster as deter- mined by the Administrator which occurs on or after January 1, 1971, and prior to July 1, 1973, the Small Business Administration, to the ex- tent such loss or damage or injury is not com- pensated for by insurance or otherwise— (A) may make any loan for repair, rehabili- tation, or replacement of property damaged or destroyed without regard to whether the re- quired financial assistance is otherwise avail- able from private sources; (B) may, in the case of the total destruction or substantial property damage of a home or business concern, refinance any mortgage or other liens outstanding against the destroyed or damaged property if such property is to be repaired, rehabilitated, or replaced, except that (1) in the case of a business concern, the amount refinanced shall not exceed the amount of the physical loss sustained, and (2) in the case of a home, the amount of each monthly payment of principal and interest on the loan after refinancing under this clause shall not be less than the amount of each such payment made prior to such refinancing; (C) may, in the case of a loan made under clause (A) or a mortgage or other lien refi- nanced under clause (B) in connection with the destruction of, or substantial damage to, property owned and used as a residence by an individual who by reason of retirement, dis- ability, or other similar circumstances relies for support on survivor, disability, or retire- ment benefits under a pension, insurance, or other programs, consent to the suspension of the payments of the principal of that loan, mortgage, or lien during the lifetime of that individual and his spouse for so long as the Ad- ministration determines that making such payments would constitute a substantial hard- ship; (D) shall notwithstanding the provisions of any other law and upon presentation by the applicant of proof of loss or damage or injury and a bona fide estimate of cost of repair, re- habilitation, or replacement, cancel the prin- cipal of any loan made to cover a loss or dam- age or injury resulting from such disaster, ex- cept that— (i) with respect to a loan made in connec- tion with a disaster occurring on or after January 1, 1971 but prior to January 1, 1972, the total amount so canceled shall not ex- ceed $2,500, and the interest on the balance of the loan shall be at a rate of 3 per centum per annum; and (ii) with respect to a loan made in connec- tion with a disaster occurring on or after January 1, 1972 but prior to July 1, 1973, the total amount so canceled shall not exceed $5,000 and the interest on the balance of the loan shall be at a rate of 1 percentum per annum. (E) 13 A State grant made on or prior to July 1, 1979, shall not be considered compensation for the purpose of applying the provisions of section 312(a) of the Disaster Relief and Emer- gency Assistance Act [42 U.S.C. 5155(a)] to a disaster loan under paragraph (1) (2) 14 of this subsection. With respect to any loan referred to in clause (D) which is outstanding on August 16, 1972, the Administrator shall— (i) make such change in the interest rate on the balance of such loan as is required under that clause effective as of August 16, 1972; and (ii) in applying the limitation set forth in that clause with respect to the total amount of such loan which may be canceled, consider as part of the amount so canceled any part of such loan which was previously canceled pur- suant to section 231 of the Disaster Relief Act of 1970 [15 U.S.C. 636a]. Whoever wrongfully misapplies the proceeds of a loan obtained under this subsection shall be civilly liable to the Administrator in an amount equal to one-and-one half times the original principal amount of the loan. (c) Private disaster loans (1) Definitions In this subsection— (A) the term ‘‘disaster area’’ means any area for which the President declared a major disaster relating to which the Admin- istrator declares eligibility for additional disaster assistance under subsection (b)(9), during the period of that major disaster dec- laration; (B) the term ‘‘eligible individual’’ means an individual who is eligible for disaster as- sistance under subsection (b)(1) relating to a major disaster relating to which the Admin- istrator declares eligibility for additional disaster assistance under subsection (b)(9); (C) the term ‘‘eligible small business con- cern’’ means a business concern that is— (i) a small business concern, as defined under this chapter; or (ii) a small business concern, as defined in section 103 of the Small Business Invest- ment Act of 1958 [15 U.S.C. 662]; (D) the term ‘‘preferred lender’’ means a lender participating in the Preferred Lender Program; (E) the term ‘‘Preferred Lender Program’’ has the meaning given that term in sub- section (a)(2)(C)(ii); and (F) the term ‘‘qualified private lender’’ means any privately-owned bank or other lending institution that— (i) is not a preferred lender; and (ii) the Administrator determines meets the criteria established under paragraph (10). Page 830 TITLE 15—COMMERCE AND TRADE § 636 (2) Program required The Administrator shall carry out a pro- gram, to be known as the Private Disaster As- sistance program, under which the Adminis- tration may guarantee timely payment of principal and interest, as scheduled, on any loan made to an eligible small business con- cern located in a disaster area and to an eligi- ble individual. (3) Use of loans A loan guaranteed by the Administrator under this subsection may be used for any pur- pose authorized under subsection (b). (4) Online applications (A) Establishment The Administrator may establish, directly or through an agreement with another enti- ty, an online application process for loans guaranteed under this subsection. (B) Other Federal assistance The Administrator may coordinate with the head of any other appropriate Federal agency so that any application submitted through an online application process estab- lished under this paragraph may be consid- ered for any other Federal assistance pro- gram for disaster relief. (C) Consultation In establishing an online application proc- ess under this paragraph, the Administrator shall consult with appropriate persons from the public and private sectors, including pri- vate lenders. (5) Maximum amounts (A) Guarantee percentage The Administrator may guarantee not more than 85 percent of a loan under this subsection. (B) Loan amount The maximum amount of a loan guaran- teed under this subsection shall be $2,000,000. (6) Terms and conditions A loan guaranteed under this subsection shall be made under the same terms and condi- tions as a loan under subsection (b). (7) Lenders (A) In general A loan guaranteed under this subsection made to— (i) a qualified individual may be made by a preferred lender; and (ii) a qualified small business concern may be made by a qualified private lender or by a preferred lender that also makes loans to qualified individuals. (B) Compliance If the Administrator determines that a preferred lender knowingly failed to comply with the underwriting standards for loans guaranteed under this subsection or violated the terms of the standard operating proce- dure agreement between that preferred lend- er and the Administration, the Adminis- trator shall do 1 or more of the following: (i) Exclude the preferred lender from par- ticipating in the program under this sub- section. (ii) Exclude the preferred lender from participating in the Preferred Lender Pro- gram for a period of not more than 5 years. (8) Fees (A) In general The Administrator may not collect a guar- antee fee under this subsection. (B) Origination fee The Administrator may pay a qualified private lender or preferred lender an origina- tion fee for a loan guaranteed under this subsection in an amount agreed upon in ad- vance between the qualified private lender or preferred lender and the Administrator. (9) Documentation A qualified private lender or preferred lender may use its own loan documentation for a loan guaranteed by the Administrator under this subsection, to the extent authorized by the Administrator. The ability of a lender to use its own loan documentation for a loan guaran- teed under this subsection shall not be consid- ered part of the criteria for becoming a quali- fied private lender under the regulations pro- mulgated under paragraph (10). (10) Implementation regulations (A) In general Not later than 1 year after the date of en- actment of the Small Business Disaster Re- sponse and Loan Improvements Act of 2008, the Administrator shall issue final regula- tions establishing permanent criteria for qualified private lenders. (B) Report to Congress Not later than 6 months after the date of enactment of the Small Business Disaster Response and Loan Improvements Act of 2008, the Administrator shall submit a report on the progress of the regulations required by subparagraph (A) to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Busi- ness of the House of Representatives. (11) Authorization of appropriations (A) In general Amounts necessary to carry out this sub- section shall be made available from amounts appropriated to the Administration to carry out subsection (b). (B) Authority to reduce interest rates and other terms and conditions Funds appropriated to the Administration to carry out this subsection,9 may be used by the Administrator to meet the loan terms and conditions specified in paragraph (6). (12) Purchase of loans The Administrator may enter into an agree- ment with a qualified private lender or pre- ferred lender to purchase any loan guaranteed under this subsection. Page 831 TITLE 15—COMMERCE AND TRADE § 636 15 So in original. Probably should be ‘‘prior to’’. (d) Extension or renewal of loans; purchase of participations; assumption of obligations; disaster loans; interest rates; loan amounts (1) The Administration may further extend the maturity of or renew any loan made pursuant to this section, or any loan transferred to the Ad- ministration pursuant to Reorganization Plan Numbered 2 of 1954, or Reorganization Plan Numbered 1 of 1957, for additional periods not to exceed ten years beyond the period stated there- in, if such extension or renewal will aid in the orderly liquidation of such loan. (2) During any period in which principal and interest charges are suspended on the Federal share of any loan, as provided in subsection (b), the Administrator shall, upon the request of any person, firm, or corporation having a participa- tion in such loan, purchase such participation, or assume the obligation of the borrower, for the balance of such period, to make principal and in- terest payments on the non-Federal share of such loan: Provided, That no such payments shall be made by the Administrator in behalf of any borrower unless (i) the Administrator deter- mines that such action is necessary in order to avoid a default, and (ii) the borrower agrees to make payments to the Administration in an ag- gregate amount equal to the amount paid in its behalf by the Administrator, in such manner and at such times (during or after the term of the loan) as the Administrator shall determine having due regard to the purposes sought to be achieved by this paragraph. (3) With respect to a disaster occurring on or after October 1, 1978, and prior 15 August 13, 1981, on the Administration’s share of loans made pursuant to paragraph (1) of subsection (b)— (A) if the loan proceeds are to repair or re- place a primary residence and/or repair or re- place damaged or destroyed personal property, the interest rate shall be 3 percent on the first $55,000 of such loan; (B) if the loan proceeds are to repair or re- place property damaged or destroyed and if the applicant is a business concern which is unable to obtain sufficient credit elsewhere, the interest rate shall be as determined by the Administration, but not in excess of 5 percent per annum; and (C) if the loan proceeds are to repair or re- place property damaged or destroyed and if the applicant is a business concern which is able to obtain sufficient credit elsewhere, the interest rate shall not exceed the current av- erage market yield on outstanding marketable obligations of the United States with remain- ing periods to maturity comparable to the av- erage maturities of such loans and adjusted to the nearest one-eighth of 1 percent, and an ad- ditional amount as determined by the Admin- istration, but not to exceed 1 percent: Pro- vided, That three years after such loan is fully disbursed and every two years thereafter for the term of the loan, if the Administration de- termines that the borrower is able to obtain a loan from non-Federal sources at reasonable rates and terms for loans of similar purposes and periods of time, the borrower shall, upon request by the Administration, apply for and accept such a loan in sufficient amount to repay the Administration: Provided further, That no loan under subsection (b)(1) shall be made, either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis, if the total amount outstanding and committed to the borrower under such subsection would exceed $500,000 for each dis- aster, unless an applicant constitutes a major source of employment in an area suffering a disaster, in which case the Administration, in its discretion, may waive the $500,000 limita- tion. (4) Notwithstanding the provisions of any other law, the interest rate on the Federal share of any loan made under subsection (b) shall be— (A) in the case of a homeowner unable to se- cure credit elsewhere, the rate prescribed by the Administration but not more than one- half the rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity com- parable to the average maturities of such loans plus an additional charge of not to ex- ceed 1 per centum per annum as determined by the Administrator, and adjusted to the nearest one-eighth of 1 per centum but not to exceed 8 per centum per annum; (B) in the case of a homeowner able to se- cure credit elsewhere, the rate prescribed by the Administration but not more than the rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obli- gations of the United States with remaining periods to maturity comparable to the average maturities of such loans plus an additional charge of not to exceed 1 per centum per annum as determined by the Administrator, and adjusted to the nearest one-eighth of 1 per centum; (C) in the case of a business concern unable to obtain credit elsewhere, not to exceed 8 per centum per annum; (D) in the case of a business concern able to obtain credit elsewhere, the rate prescribed by the Administration but not in excess of the rate prevailing in private market for similar loans and not more than the rate prescribed by the Administration as the maximum interest rate for deferred participation (guaranteed) loans under subsection (a). Loans under this subparagraph shall be limited to a maximum term of three years. (5) Notwithstanding the provisions of any other law, the interest rate on the Federal share of any loan made under subsection (b)(1) and (b)(2) on account of a disaster commencing on or after October 1, 1982, shall be— (A) in the case of a homeowner unable to se- cure credit elsewhere, the rate prescribed by the Administration but not more than one- half the rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity com- Page 832 TITLE 15—COMMERCE AND TRADE § 636 parable to the average maturities of such loan plus an additional charge of not to exceed 1 per centum per annum as determined by the Administrator, and adjusted to the nearest one-eighth of 1 per centum, but not to exceed 4 per centum per annum; (B) in the case of a homeowner able to se- cure credit elsewhere, the rate prescribed by the Administration but not more than the rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obli- gations of the United States with remaining periods to maturity comparable to the average maturities of such loans plus an additional charge of not to exceed 1 per centum per annum as determined by the Administrator, and adjusted to the nearest one-eighth of 1 per centum, but not to exceed 8 per centum per annum; (C) in the case of a business, private non- profit organization, or other concern, includ- ing agricultural cooperatives, unable to obtain credit elsewhere, not to exceed 4 per centum per annum; (D) in the case of a business concern able to obtain credit elsewhere, the rate prescribed by the Administration but not in excess of the lowest of (i) the rate prevailing in the private market for similar loans, (ii) the rate pre- scribed by the Administration as the max- imum interest rate for deferred participation (guaranteed) loans under subsection (a), or (iii) 8 per centum per annum. Loans under this subparagraph shall be limited to a maximum term of 7 years. (6) Notwithstanding the provisions of any other law, such loans, subject to the reductions required by subparagraphs (A) and (B) of sub- section (b)(1), shall be in amounts equal to 100 per centum of loss. The interest rates for loans made under subsection (b)(1) and (2), as deter- mined pursuant to paragraph (5), shall be the rate of interest which is in effect on the date of the disaster commenced: Provided, That no loan under subsection (b)(1) and (2) shall be made, ei- ther directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred (guaranteed) basis, if the total amount out- standing and committed to the borrower under subsection (b) would exceed $500,000 for each dis- aster unless an applicant constitutes a major source of employment in an area suffering a dis- aster, in which case the Administration, in its discretion, may waive the $500,000 limitation: Provided further, That the Administration, sub- ject to the reductions required by subparagraphs (A) and (B) of subsection (b)(1), shall not reduce the amount of eligibility for any homeowner on account of loss of real estate to less than $100,000 for each disaster nor for any homeowner or les- see on account of loss of personal property to less than $20,000 for each disaster, such sums being in addition to any eligible refinancing: Provided further, That the Administration shall not require collateral for loans of $14,000 or less (or such higher amount as the Administrator de- termines appropriate in the event of a major dis- aster) which are made under paragraph (1) of subsection (b): Provided further, That the Admin- istrator, in obtaining the best available collat- eral for a loan of not more than $200,000 under paragraph (1) or (2) of subsection (b) relating to damage to or destruction of the property of, or economic injury to, a small business concern, shall not require the owner of the small business concern to use the primary residence of the owner as collateral if the Administrator deter- mines that the owner has other assets of equal quality and with a value equal to or greater than the amount of the loan that could be used as collateral for the loan: Provided further, That nothing in the preceding proviso may be con- strued to reduce the amount of collateral re- quired by the Administrator in connection with a loan described in the preceding proviso or to modify the standards used to evaluate the qual- ity (rather than the type) of such collateral. Employees of concerns sharing a common busi- ness premises shall be aggregated in deter- mining ‘‘major source of employment’’ status for nonprofit applicants owning such premises. With respect to any loan which is outstanding on April 18, 1984, and which was made on ac- count of a disaster commencing on or after Oc- tober 1, 1982, the Administrator shall make such change in the interest rate on the balance of such loan as is required herein effective as of April 18, 1984. (7) The Administration shall not withhold dis- aster assistance pursuant to this paragraph to nurseries who are victims of drought disasters. As used in subsection (b)(2) the term ‘‘an area affected by a disaster’’ includes any county, or county contiguous thereto, determined to be a disaster by the President, the Secretary of Agri- culture or the Administrator of the Small Busi- ness Administration. (8) DISASTER LOANS FOR SUPERSTORM SANDY.— (A) IN GENERAL.—Notwithstanding any other provision of law, and subject to the same re- quirements and procedures that are used to make loans pursuant to subsection (b), a small business concern, homeowner, nonprofit enti- ty, or renter that was located within an area and during the time period with respect to which a major disaster was declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency As- sistance Act (42 U.S.C. 5170) by reason of Superstorm Sandy may apply to the Adminis- trator— (i) for a loan to repair, rehabilitate, or re- place property damaged or destroyed by rea- son of Superstorm Sandy; or (ii) if such a small business concern has suffered substantial economic injury by rea- son of Superstorm Sandy, for a loan to assist such a small business concern. (B) TIMING.—The Administrator shall select loan recipients and make available loans for a period of not less than 1 year after the date on which the Administrator carries out this au- thority. (C) INSPECTOR GENERAL REVIEW.—Not later than 6 months after the date on which the Ad- ministrator begins carrying out this author- ity, the Inspector General of the Administra- tion shall initiate a review of the controls for ensuring applicant eligibility for loans made under this paragraph. Page 833 TITLE 15—COMMERCE AND TRADE § 636 16 So in original. No par. (2) has been enacted. (e) Funds for small business development cen- ters under section 648 of this title The Administration shall not fund any Small Business Development Center or any variation thereof, except as authorized in section 648 of this title. (f) Additional requirements for subsection (b) loans (1) 16 Increased deferment authorized (A) In general In making loans under subsection (b), the Administrator may provide, to the person receiving the loan, an option to defer repay- ment on the loan. (B) Period The period of a deferment under subpara- graph (A) may not exceed 4 years. (g) Net earnings clauses prohibited for sub- section (b) loans In making loans under subsection (b), the Ad- ministrator shall not require the borrower to pay any non-amortized amount for the first five years after repayment begins. (h) Loans to handicapped persons and organiza- tions for handicapped (1) The Administration also is empowered, where other financial assistance is not available on reasonable terms, to make such loans (either directly or in cooperation with Banks or other lending institutions through agreements to par- ticipate on an immediate or deferred basis) as the Administration may determine to be nec- essary or appropriate— (A) to assist any public or private organiza- tion— (i) which is organized under the laws of the United States or of any State, operated in the interest of handicapped individuals, the net income of which does not inure in whole or in part to the benefit of any shareholder or other individual; (ii) which complies with any applicable oc- cupational health and safety standard pre- scribed by the Secretary of Labor; and (iii) which, in the production of commod- ities and in the provision of services during any fiscal year in which it receives financial assistance under this subsection, employs handicapped individuals for not less than 75 per centum of the man-hours required for the production or provision of the commod- ities or services; or (B) to assist any handicapped individual in establishing, acquiring, or operating a small business concern. (2) The Administration’s share of any loan made under this subsection shall not exceed $350,000, nor may any such loan be made if the total amount outstanding and committed (by participation or otherwise) to the borrower from the business loan and investment fund estab- lished by section 633(c)(1)(B) of this title would exceed $350,000. In agreements to participate in loans on a deferred basis under this subsection, the Administration’s participation may total 100 per centum of the balance of the loan at the time of disbursement. The Administration’s share of any loan made under this subsection shall bear interest at the rate of 3 per centum per annum. The maximum term of any such loan, including extensions and renewals thereof, may not exceed fifteen years. All loans made under this subsection shall be of such sound value or so secured as reasonably to assure re- payment: Provided, however, That any reason- able doubt shall be resolved in favor of the appli- cant. (3) For purposes of this subsection, the term ‘‘handicapped individual’’ means a person who has a physical, mental, or emotional impair- ment, defect, ailment, disease, or disability of a permanent nature which in any way limits the selection of any type of employment for which the person would otherwise be qualified or qual- ifiable. (i) Loans to small business concerns located in urban or rural areas with high proportions of unemployed or low-income individuals, or owned by low-income individuals (1) The Administration also is empowered to make, participate (on an immediate basis) in, or guarantee loans, repayable in not more than fif- teen years, to any small business concern, or to any qualified person seeking to establish such a concern, when it determines that such loans will further the policies established in section 631(b) 2 of this title, with particular emphasis on the preservation or establishment of small business concerns located in urban or rural areas with high proportions of unemployed or low-income individuals, or owned by low-income individuals: Provided, however, That no such loans shall be made, participated in, or guaranteed if the total of such Federal assistance to a single borrower outstanding at any one time would exceed $100,000. The Administration may defer pay- ments on the principal of such loans for a grace period and use such other methods as it deems necessary and appropriate to assure the success- ful establishment and operation of such concern. The Administration may, in its discretion, as a condition of such financial assistance, require that the borrower take steps to improve his management skills by participating in a man- agement training program approved by the Ad- ministration: Provided, however, That any man- agement training program so approved must be of sufficient scope and duration to provide rea- sonable opportunity for the individuals served to develop entrepreneurial and managerial self- sufficiency. (2) The Administration shall encourage, as far as possible, the participation of the private busi- ness community in the program of assistance to such concerns, and shall seek to stimulate new private lending activities to such concerns through the use of the loan guarantees, partici- pations in loans, and pooling arrangements au- thorized by this subsection. (3) To insure an equitable distribution between urban and rural areas for loans between $3,500 and $100,000 made under this subsection, the Ad- ministration is authorized to use the agencies and agreements and delegations developed under Page 834 TITLE 15—COMMERCE AND TRADE § 636 title III of the Economic Opportunity Act of 1964, as amended [42 U.S.C. 2841 et seq.], as it shall determine necessary. (4) The Administration shall provide for the continuing evaluation of programs under this subsection, including full information on the lo- cation, income characteristics, and types of businesses and individuals assisted, and on new private lending activity stimulated, and the re- sults of such evaluation together with rec- ommendations shall be included in the report re- quired by section 639(a) of this title. (5) Loans made pursuant to this subsection (including immediate participation in and guar- antees of such loans) shall have such terms and conditions as the Administration shall deter- mine, subject to the following limitations— (A) there is reasonable assurance of repay- ment of the loan; (B) the financial assistance is not otherwise available on reasonable terms from private sources or other Federal, State, or local pro- grams; (C) the amount of the loan, together with other funds available, is adequate to assure completion of the project or achievement of the purposes for which the loan is made; (D) the loan bears interest at a rate not less than (i) a rate determined by the Secretary of the Treasury, taking into consideration the average market yield on outstanding Treasury obligations of comparable maturity, plus (ii) such additional charge, if any, toward cov- ering other costs of the program as the Admin- istration may determine to be consistent with its purposes: Provided, however, That the rate of interest charged on loans made in redevel- opment areas designated under the Public Works and Economic Development Act of 1965 [42 U.S.C. 3121 et seq.] shall not exceed the rate currently applicable to new loans made under section 201 of that Act [42 U.S.C. 3141]; and (E) fees not in excess of amounts necessary to cover administrative expenses and probable losses may be required on loan guarantees. (6) The Administration shall take such steps as may be necessary to insure that, in any fiscal year, at least 50 per centum of the amounts loaned or guaranteed pursuant to this sub- section are allotted to small business concerns located in urban areas identified by the Admin- istration as having high concentrations of un- employed or low-income individuals or to small business concerns owned by low-income individ- uals. The Administration shall define the mean- ing of low income as it applies to owners of small business concerns eligible to be assisted under this subsection. (7) No financial assistance shall be extended pursuant to this subsection where the Adminis- tration determines that the assistance will be used in relocating establishments from one area to another if such relocation would result in an increase in unemployment in the area of origi- nal location. (j) Financial assistance for projects providing technical or management assistance; areas of high concentration of unemployment or low- income; preferences; manner and method of payment; accessible services; program eval- uations; establishment of development pro- gram; coordination of policies (1) The Administration shall provide financial assistance to public or private organizations to pay all or part of the cost of projects designed to provide technical or management assistance to individuals or enterprises eligible for assistance under subsection (i), paragraph (10) of this sub- section; and section 637(a) of this title, with spe- cial attention to small businesses located in areas of high concentration of unemployed or low-income individuals, to small businesses eli- gible to receive contracts pursuant to section 637(a) of this title. (2) Financial assistance under this subsection may be provided for projects, including, but not limited to— (A) planning and research, including feasi- bility studies and market research; (B) the identification and development of new business opportunities; (C) the furnishing of centralized services with regard to public services and Federal Government programs including programs au- thorized under subsection (i); paragraph (10) of this subsection, and section 637(a) of this title; (D) the establishment and strengthening of business service agencies, including trade as- sociations and cooperatives; and (E) the furnishing of business counseling, management training, and legal and other re- lated services, with special emphasis on the development of management training pro- grams using the resources of the business com- munity, including the development of manage- ment training opportunities in existing busi- ness, and with emphasis in all cases upon pro- viding management training of sufficient scope and duration to develop entrepreneurial and managerial self-sufficiency on the part of the individuals served. (3) The Administration shall encourage the placement of subcontracts by businesses with small business concerns located in areas of high concentration of unemployed or low-income in- dividuals, with small businesses owned by low- income individuals, and with small businesses eligible to receive contracts pursuant to section 637(a) of this title. The Administration may pro- vide incentives and assistance to such busi- nesses that will aid in the training and upgrad- ing of potential subcontractors or other small business concerns eligible for assistance under subsections (i) and (j), and section 637(a) of this title. (4) The Administration shall give preference to projects which promote the ownership, partici- pation in ownership, or management of small businesses owned by low-income individuals and small businesses eligible to receive contracts pursuant to section 637(a) of this title. (5) The financial assistance authorized for projects under this subsection includes assist- ance advanced by grant, agreement, or contract. (6) The Administration is authorized to make payments under grants and contracts entered Page 835 TITLE 15—COMMERCE AND TRADE § 636 17 So in original. The period probably should be a semicolon. into under this subsection in lump sum or in- stallments, and in advance or by way of reim- bursement, and in the case of grants, with nec- essary adjustments on account of overpayments or underpayments. (7) To the extent feasible, services under this subsection shall be provided in a location which is easily accessible to the individuals and small business concerns served. (8) Repealed. Pub. L. 101–574, title II, § 242(2), Nov. 15, 1990, 104 Stat. 2827. (9) The Administration shall take such steps as may be necessary and appropriate, in coordi- nation and cooperation with the heads of other Federal departments and agencies, to insure that contracts, subcontracts, and deposits made by the Federal Government or with programs aided with Federal funds are placed in such way as to further the purposes of subsections (i) and (j) and section 637(a) of this title. (10) There is established within the Adminis- tration a small business and capital ownership development program (hereinafter referred to as the ‘‘Program’’) which shall provide assistance exclusively for small business concerns eligible to receive contracts pursuant to section 637(a) of this title. The program, and all other services and activities authorized under this subsection and section 637(a) of this title, shall be managed by the Associate Administrator for Minority Small Business and Capital Ownership Develop- ment under the supervision of, and responsible to, the Administrator. (A) The Program shall— (i) assist small business concerns partici- pating in the Program (either through pub- lic or private organizations) to develop and maintain comprehensive business plans which set forth the Program Participant’s specific business targets, objectives, and goals developed and maintained in con- formity with subparagraph (D).17 (ii) provide for such other nonfinancial services as deemed necessary for the estab- lishment, preservation, and growth of small business concerns participating in the Pro- gram, including but not limited to (I) loan packaging, (II) financial counseling, (III) ac- counting and bookkeeping assistance, (IV) marketing assistance, and (V) management assistance; (iii) assist small business concerns partici- pating in the Program to obtain equity and debt financing; (iv) establish regular performance moni- toring and reporting systems for small busi- ness concerns participating in the Program to assure compliance with their business plans; (v) analyze and report the causes of suc- cess and failure of small business concerns participating in the Program; and (vi) provide assistance necessary to help small business concerns participating in the Program to procure surety bonds, with such assistance including, but not limited to, (I) the preparation of application forms re- quired to receive a surety bond, (II) special management and technical assistance de- signed to meet the specific needs of small business concerns participating in the Pro- gram and which have received or are apply- ing to receive a surety bond, and (III) prepa- ration of all forms necessary to receive a surety bond guarantee from the Administra- tion pursuant to title IV, part B of the Small Business Investment Act of 1958 [15 U.S.C. 694a et seq.]. (B) Small business concerns eligible to re- ceive contracts pursuant to section 637(a) of this title shall participate in the Program. (C)(i) A small business concern participating in any program or activity conducted under the authority of this paragraph or eligible for the award of contracts pursuant to section 637(a) of this title on September 1, 1988, shall be permitted continued participation and eli- gibility in such program or activity for a pe- riod of time which is the greater of— (I) 9 years less the number of years since the award of its first contract pursuant to section 637(a) of this title; or (II) its original fixed program participa- tion term (plus any extension thereof) as- signed prior to November 15, 1988, plus eight- een months. (ii) Nothing contained in this subparagraph shall be deemed to prevent the Administration from instituting a termination or graduation pursuant to subparagraph (F) or (H) for issues unrelated to the expiration of any time period limitation. (D)(i) Promptly after certification under paragraph (11) a Program Participant shall submit a business plan (hereinafter referred to as the ‘‘plan’’) as described in clause (ii) of this subparagraph for review by the Business Opportunity Specialist assigned to assist such Program Participant. The plan may be a revi- sion of a preliminary business plan submitted by the Program Participant or required by the Administration as a part of the application for certification under this section and shall be designed to result in the Program Participant eliminating the conditions or circumstances upon which the Administration determined eligibility pursuant to section 637(a)(6) of this title. Such plan, and subsequent modifications submitted under clause (iii) of this subpara- graph, shall be approved by the business op- portunity specialist prior to the Program Par- ticipant being eligible for award of a contract pursuant to section 637(a) of this title. (ii) The plans submitted under this subpara- graph shall include the following: (I) An analysis of market potential, com- petitive environment, and other business analyses estimating the Program Partici- pant’s prospects for profitable operations during the term of program participation and after graduation. (II) An analysis of the Program Partici- pant’s strengths and weaknesses with par- ticular attention to correcting any finan- cial, managerial, technical, or personnel conditions which are likely to impede the small business concern from receiving con- tracts other than those awarded under sec- tion 637(a) of this title. Page 836 TITLE 15—COMMERCE AND TRADE § 636 (III) Specific targets, objectives, and goals, for the business development of the Program Participant during the next and succeeding years utilizing the results of the analyses conducted pursuant to subclauses (I) and (II). (IV) A transition management plan out- lining specific steps to assure profitable business operations after graduation (to be incorporated into the Program Participant’s plan during the first year of the transitional stage of Program participation). (V) Estimates of contract awards pursuant to section 637(a) of this title and from other sources, which the Program Participant will require to meet the specific targets, objec- tives, and goals for the years covered by its plan. The estimates established shall be con- sistent with the provisions of subparagraph (I) and section 637(a) of this title. (iii) Each Program Participant shall annu- ally review its currently approved plan with its Business Opportunity Specialist and mod- ify such plan as may be appropriate. Any modified plan shall be submitted to the Ad- ministration for approval. The currently ap- proved plan shall be considered valid until such time as a modified plan is approved by the Business Opportunity Specialist. Annual reviews pertaining to years in the transitional stage of program participation shall require, as appropriate, a written verification that such Program Participant has complied with the requirements of subparagraph (I) relating to attaining business activity from sources other than contracts awarded pursuant to sec- tion 637(a) of this title. (iv) Each Program Participant shall annu- ally forecast its needs for contract awards under section 637(a) of this title for the next program year and the succeeding program year during the review of its business plan, conducted pursuant to clause (iii). Such fore- cast shall be known as the section 8(a) [15 U.S.C. 637(a)] contract support level and shall be included in the Program Participant’s busi- ness plan. Such forecast shall include— (I) the aggregate dollar value of contract support to be sought on a noncompetitive basis under section 637(a) of this title, re- flecting compliance with the requirements of subparagraph (I) relating to attaining business activity from sources other than contracts awarded pursuant to section 637(a) of this title, (II) the types of contract opportunities being sought, identified by Standard Indus- trial Classification (SIC) Code or otherwise, (III) an estimate of the dollar value of con- tract support to be sought on a competitive basis, and (IV) such other information as may be re- quested by the Business Opportunity Spe- cialist to provide effective business develop- ment assistance to the Program Participant. (E) A small business concern participating in the program conducted under the authority of this paragraph and eligible for the award of contracts pursuant to section 637(a) of this title shall be denied all such assistance if such concern— (i) voluntarily elects not to continue par- ticipation; (ii) completes the period of Program par- ticipation as prescribed by paragraph (15); (iii) is terminated pursuant to a termi- nation proceeding conducted in accordance with section 637(a)(9) of this title; or (iv) is graduated pursuant to a graduation proceeding conducted in accordance with section 637(a)(9) of this title. (F) For purposes of this section and section 637(a) of this title, the term ‘‘terminated’’ and the term ‘‘termination’’ means the total de- nial or suspension of assistance under this paragraph or under section 637(a) of this title prior to the graduation of the participating small business concern or prior to the expira- tion of the maximum program participation term. An action for termination shall be based upon good cause, including— (i) the failure by such concern to maintain its eligibility for Program participation; (ii) the failure of the concern to engage in business practices that will promote its competitiveness within a reasonable period of time as evidenced by, among other indica- tors, a pattern of unjustified delinquent per- formance or terminations for default with respect to contracts awarded under the au- thority of section 637(a) of this title; (iii) a demonstrated pattern of failing to make required submissions or responses to the Administration in a timely manner; (iv) the willful violation of any rule or reg- ulation of the Administration pertaining to material issues; (v) the debarment of the concern or its dis- advantaged owners by any agency pursuant to subpart 9.4 of title 48, Code of Federal Regulations (or any successor regulation); or (vi) the conviction of the disadvantaged owner or an officer of the concern for any of- fense indicating a lack of business integrity including any conviction for embezzlement, theft, forgery, bribery, falsification or viola- tion of section 645 of this title. For purposes of this clause, no termination action shall be taken with respect to a disadvantaged owner solely because of the conviction of an officer of the concern (who is other than a disadvan- taged owner) unless such owner conspired with, abetted, or otherwise knowingly acqui- esced in the activity or omission that was the basis of such officer’s conviction. (G) The Director of the Division may ini- tiate a termination proceeding by recom- mending such action to the Associate Admin- istrator for Minority Small Business and Cap- ital Ownership Development. Whenever the Associate Administrator, or a designee of such officer, determines such termination is appro- priate, within 15 days after making such a de- termination the Program Participant shall be provided a written notice of intent to termi- nate, specifying the reasons for such action. No Program Participant shall be terminated from the Program pursuant to subparagraph (F) without first being afforded an opportunity for a hearing in accordance with section 637(a)(9) of this title. Page 837 TITLE 15—COMMERCE AND TRADE § 636 (H) For the purposes of this subsection and section 637(a) of this title the term ‘‘grad- uated’’ or ‘‘graduation’’ means that the Pro- gram Participant is recognized as successfully completing the program by substantially achieving the targets, objectives, and goals contained in the concern’s business plan there- by demonstrating its ability to compete in the marketplace without assistance under this section or section 637(a) of this title. (I)(i) During the developmental stage of its participation in the Program, a Program Par- ticipant shall take all reasonable efforts with- in its control to attain the targets contained in its business plan for contracts awarded other than pursuant to section 637(a) of this title (hereinafter referred to as ‘‘business ac- tivity targets.’’). Such efforts shall be made a part of the business plan and shall be suffi- cient in scope and duration to satisfy the Ad- ministration that the Program Participant will engage a reasonable marketing strategy that will maximize its potential to achieve its business activity targets. (ii) During the transitional stage of the Pro- gram a Program Participant shall be subject to regulations regarding business activity tar- gets that are promulgated by the Administra- tion pursuant to clause (iii); (iii) The regulations referred to in clause (ii) shall: (I) establish business activity targets ap- plicable to Program Participants during the fifth year and each succeeding year of Pro- gram Participation; such targets, for such period of time, shall reflect a reasonably consistent increase in contracts awarded other than pursuant to section 637(a) of this title, expressed as a percentage of total sales; when promulgating business activity targets the Administration may establish modified targets for Program Participants that have participated in the Program for a period of longer than four years on June 1, 1989; (II) require a Program Participant to at- tain its business activity targets; (III) provide that, before the receipt of any contract to be awarded pursuant to section 637(a) of this title, the Program Participant (if it is in the transitional stage) must cer- tify that it has complied with the regula- tions promulgated pursuant to subclause (II), or that it is in compliance with such re- medial measures as may have been ordered pursuant to regulations issued under sub- clause (V); (IV) require the Administration to review each Program Participant’s performance re- garding attainment of business activity tar- gets during periodic reviews of such Partici- pant’s business plan; and (V) authorize the Administration to take appropriate remedial measures with respect to a Program Participant that has failed to attain a required business activity target for the purpose of reducing such Participant’s dependence on contracts awarded pursuant to section 637(a) of this title; such remedial actions may include, but are not limited to assisting the Program Participant to expand the dollar volume of its competitive business activity or limiting the dollar volume of contracts awarded to the Program Partici- pant pursuant to section 637(a) of this title; except for actions that would constitute a termination, remedial measures taken pur- suant to this subclause shall not be review- able pursuant to section 637(a)(9) of this title. (J)(i) The Administration shall conduct an evaluation of a Program Participant’s eligi- bility for continued participation in the Pro- gram whenever it receives specific and cred- ible information alleging that such Program Participant no longer meets the requirements for Program eligibility. Upon making a find- ing that a Program Participant is no longer eligible, the Administration shall initiate a termination proceeding in accordance with subparagraph (F). A Program Participant’s eligibility for award of any contract under the authority of section 637(a) of this title may be suspended pursuant to subpart 9.4 of title 48, Code of Federal Regulations (or any successor regulation). (ii)(I) Except as authorized by subclauses (II) or (III), no award shall be made pursuant to section 637(a) of this title to a concern other than a small business concern. (II) In determining the size of a small busi- ness concern owned by a socially and economi- cally disadvantaged Indian tribe (or a wholly owned business entity of such tribe), each firm’s size shall be independently determined without regard to its affiliation with the tribe, any entity of the tribal government, or any other business enterprise owned by the tribe, unless the Administrator determines that one or more such tribally owned business concerns have obtained, or are likely to obtain, a sub- stantial unfair competitive advantage within an industry category. (III) Any joint venture established under the authority of section 602(b) of Public Law 100–656, the ‘‘Business Opportunity Develop- ment Reform Act of 1988’’, shall be eligible for award of a contract pursuant to section 637(a) of this title. (11)(A) The Associate Administrator for Mi- nority Small Business and Capital Ownership Development shall be responsible for coordi- nating and formulating policies relating to Fed- eral assistance to small business concerns eligi- ble for assistance under subsection (i) and small business concerns eligible to receive contracts pursuant to section 637(a) of this title. (B)(i) Except as provided in clause (iii), no in- dividual who was determined pursuant to sec- tion 637(a) of this title to be socially and eco- nomically disadvantaged before August 15, 1989, shall be permitted to assert such disadvantage with respect to any other concern making appli- cation for certification after August 15, 1989. (ii) Except as provided in clause (iii), any indi- vidual upon whom eligibility is based pursuant to section 637(a)(4) of this title shall be per- mitted to assert such eligibility for only one small business concern. (iii) A socially and economically disadvan- taged Indian tribe may own more than one small Page 838 TITLE 15—COMMERCE AND TRADE § 636 business concern eligible for assistance pursuant to paragraph (10) and section 637(a) of this title if— (I) the Indian tribe does not own another firm in the same industry which has been de- termined to be eligible to receive contracts under this program, and (II) the individuals responsible for the man- agement and daily operations of the concern do not manage more than two Program Par- ticipants. (C) No concern, previously eligible for the award of contracts pursuant to section 637(a) of this title, shall be subsequently recertified for program participation if its prior participation in the program was concluded for any of the rea- sons described in paragraph (10)(E). (D) A concern eligible for the award of con- tracts pursuant to this subsection shall remain eligible for such contracts if there is a transfer of ownership and control (as defined pursuant to section 637(a)(4) of this title) to individuals who are determined to be socially and economically disadvantaged pursuant to section 637(a) of this title. In the event of such a transfer, the con- cern, if not terminated or graduated, shall be el- igible for a period of continued participation in the program not to exceed the time limitations prescribed in paragraph (15). (E) There is established a Division of Program Certification and Eligibility (hereinafter re- ferred to in this paragraph as the ‘‘Division’’) that shall be made part of the Office of Minority Small Business and Capital Ownership Develop- ment. The Division shall be headed by a Direc- tor who shall report directly to the Associate Administrator for Minority Small Business and Capital Ownership Development. The Division shall establish field offices within such regional offices of the Administration as may be nec- essary to perform efficiently its functions and responsibilities. (F) Subject to the provisions of section 637(a)(9) of this title, the functions and responsi- bility of the Division are to— (i) receive, review and evaluate applications for certification pursuant to paragraphs (4), (5), (6) and (7) of section 637(a) of this title; (ii) advise each program applicant within 15 days after the receipt of an application as to whether such application is complete and suit- able for evaluation and, if not, what matters must be rectified; (iii) render recommendations on such appli- cations to the Associate Administrator for Mi- nority Small Business and Capital Ownership Development; (iv) review and evaluate financial state- ments and other submissions from concerns participating in the program established by paragraph (10) to ascertain continued eligi- bility to receive subcontracts pursuant to sec- tion 637(a) of this title; (v) make a request for the initiation of ter- mination or graduation proceedings, as appro- priate, to the Associate Administrator for Mi- nority Small Business and Capital Ownership Development; (vi) make recommendations to the Associate Administrator for Minority Small Business and Capital Ownership Development con- cerning protests from applicants that have been denied program admission; (vii) decide protests regarding the status of a concern as a disadvantaged concern for pur- poses of any program or activity conducted under the authority of subsection (d) of sec- tion 637 of this title, or any other provision of Federal law that references such subsection for a definition of program eligibility; and (viii) implement such policy directives as may be issued by the Associate Administrator for Minority Small Business and Capital Own- ership Development pursuant to subparagraph (I) regarding, among other things, the geo- graphic distribution of concerns to be admit- ted to the program and the industrial make-up of such concerns. (G) An applicant shall not be denied admission into the program established by paragraph (10) due solely to a determination by the Division that specific contract opportunities are unavail- able to assist in the development of such con- cern unless— (i) the Government has not previously pro- cured and is unlikely to procure the types of products or services offered by the concern; or (ii) the purchases of such products or serv- ices by the Federal Government will not be in quantities sufficient to support the develop- mental needs of the applicant and other Pro- gram Participants providing the same or simi- lar items or services. (H) Not later than 90 days after receipt of a completed application for Program certifi- cation, the Associate Administrator for Minor- ity Small Business and Capital Ownership De- velopment shall certify a small business concern as a Program Participant or shall deny such ap- plication. (I) Thirty days before the conclusion of each fiscal year, the Director of the Division shall re- view all concerns that have been admitted into the Program during the preceding 12-month pe- riod. The review shall ascertain the number of entrants, their geographic distribution and in- dustrial classification. The Director shall also estimate the expected growth of the Program during the next fiscal year and the number of additional Business Opportunity Specialists, if any, that will be needed to meet the anticipated demand for the Program. The findings and con- clusions of the Director shall be reported to the Associate Administrator for Minority Small Business and Capital Ownership Development by September 30 of each year. Based on such report and such additional data as may be relevant, the Associate Administrator shall, by October 31 of each year, issue policy and program directives applicable to such fiscal year that— (i) establish priorities for the solicitation of program applications from underrepresented regions and industry categories; (ii) assign staffing levels and allocate other program resources as necessary to meet pro- gram needs; and (iii) establish priorities in the processing and admission of new Program Participants as may be necessary to achieve an equitable geo- graphic distribution of concerns and a dis- tribution of concerns across all industry cat- Page 839 TITLE 15—COMMERCE AND TRADE § 636 18 So in original. Probably should be ‘‘paragraph (12):’’. egories in proportions needed to increase sig- nificantly contract awards to small business concerns owned and controlled by socially and economically disadvantaged individuals. When considering such increase the Administration shall give due consideration to those indus- trial categories where Federal purchases have been substantial but where the participation rate of such concerns has been limited. (12)(A) The Administration shall segment the Capital Ownership Development Program into two stages: a developmental stage; and a transi- tional stage. (B) The developmental stage of program par- ticipation shall be designed to assist the concern in its effort to overcome its economic disadvan- tage by providing such assistance as may be nec- essary and appropriate to access its markets and to strengthen its financial and managerial skills. (C) The transitional stage of program partici- pation shall be designed to overcome, insofar as practicable, the remaining elements of economic disadvantage and to prepare such concern for graduation from the program. (13) A Program Participant, if otherwise eligi- ble, shall be qualified to receive the following assistance during the stages of program partici- pation specified in paragraph 12: 18 (A) Contract support pursuant to section 637(a) of this title. (B) Financial assistance pursuant to sub- section (a)(20). (C) A maximum of two exemptions from the requirements of section 35(a) 2 of title 41, which exemptions shall apply only to con- tracts awarded pursuant to section 637(a) of this title and shall only be used to allow for contingent agreements by a small business concern to acquire the machinery, equipment, facilities, or labor needed to perform such con- tracts. No exemption shall be made pursuant to this subparagraph if the contract to which it pertains has an anticipated value in excess of $10,000,000. This subparagraph shall cease to be effective on October 1, 1992. (D) A maximum of five exemptions from the requirements of sections 3131 and 3133 of title 40, which exemptions shall apply only to con- tracts awarded pursuant to section 637(a) of this title, except that, such exemptions may be granted under this subparagraph only if— (i) the Administration finds that such con- cern is unable to obtain the requisite bond or bonds from a surety and that no surety is willing to issue a bond subject to the guar- antee provision of title IV of the Small Busi- ness Investment Act of 1958 (15 U.S.C. 692 et seq.); (ii) the Administration and the agency providing the contracting opportunity have provided for the protection of persons fur- nishing materials or labor to the Program Participant by arranging for the direct dis- bursement of funds due to such persons by the procuring agency or through any bank the deposits of which are insured by the Fed- eral Deposit Insurance Corporation; and (iii) the contract to which it pertains does not exceed $3,000,000 in amount. This sub- paragraph shall cease to be effective on Oc- tober 1, 1994. (E) Financial assistance whereby the Admin- istration may purchase in whole or in part, and on behalf of such concerns, skills training or upgrading for employees or potential em- ployees of such concerns. Such assistance may be made without regard to section 647(a) of this title. Assistance may be made by direct payment to the training provider or by reim- bursing the Program Participant or the Par- ticipant’s employee, if such reimbursement is found to be reasonable and appropriate. For purposes of this subparagraph the term ‘‘train- ing provider’’ shall mean an institution of higher education, a community or vocational college, or an institution eligible to provide skills training or upgrading under title I of the Workforce Innovation and Opportunity Act [29 U.S.C. 3111 et seq.]. The Administra- tion shall, in consultation with the Secretary of Labor, promulgate rules and regulations to implement this subparagraph that establish acceptable training and upgrading perform- ance standards and provide for such moni- toring or audit requirements as may be nec- essary to ensure the integrity of the training effort. No financial assistance shall be granted under the subparagraph unless the Adminis- trator determines that— (i) such concern has documented that it has first explored the use of existing cost- free or cost-subsidized training programs of- fered by public and private sector agencies working with programs of employment and training and economic development; (ii) no more than five employees or poten- tial employees of such concern are recipients of any benefits under this subparagraph at any one time; (iii) no more than $2,500 shall be made available for any one employee or potential employee; (iv) the length of training or upgrading fi- nanced by this subparagraph shall be no less than one month nor more than six months; (v) such concern has given adequate assur- ance it will employ the trainee or upgraded employee for at least six months after the training or upgrading financed by this sub- paragraph has been completed and each trainee or upgraded employee has provided a similar assurance to remain within the em- ploy of such concern for such period; if such concern, trainee, or upgraded employee breaches this agreement, the Administration shall be entitled to and shall make diligent efforts to obtain from the violating party the repayment of all funds expended on be- half of the violating party, such repayment shall be made to the Administration to- gether with such interest and costs of collec- tion as may be reasonable; the violating party shall be barred from receiving any fur- ther assistance under this subparagraph; (vi) the training to be financed may take place either at such concern’s facilities or at those of the training provider; and (vii) such concern will maintain such records as the Administration deems appro- Page 840 TITLE 15—COMMERCE AND TRADE § 636 priate to ensure that the provisions of this paragraph and any other applicable law have not been violated. (F)(i) The transfer of technology or surplus property owned by the United States to such a concern. Activities designed to effect such transfer shall be developed in cooperation with the heads of Federal agencies and shall include the transfer by grant, license, or sale of such technology or property to such a concern. Such property may be transferred to Program Participants on a priority basis. Technology or property transferred under this subpara- graph shall be used by the concern during the normal conduct of its business operation and shall not be sold or transferred to any other party (other than the Government) during such concern’s term of participation in the Program and for one year thereafter. (ii)(I) In this clause— (aa) the term ‘‘covered period’’ means the 2-year period beginning on the date on which the President declared the applicable major disaster; and (bb) the term ‘‘disaster area’’ means the area for which the President has declared a major disaster, during the covered period. (II) The Administrator may transfer tech- nology or surplus property under clause (i) on a priority basis to a small business concern lo- cated in a disaster area if— (aa) the small business concern meets the requirements for such a transfer, without re- gard to whether the small business concern is a Program Participant; and (bb) for a small business concern that is a Program Participant, on and after the date on which the President declared the applica- ble major disaster, the small business con- cern has not received property under this subparagraph on the basis of the status of the small business concern as a Program Participant. (III) For any transfer of property under this clause to a small business concern, the terms and conditions shall be the same as a transfer to a Program Participant, except that the small business concern shall agree not to sell or transfer the property to any party other than the Federal Government during the cov- ered period. (IV) A small business concern that receives a transfer of property under this clause may not receive a transfer of property under clause (i) during the covered period. (V) If a small business concern sells or trans- fers property in violation of the agreement de- scribed in subclause (III), the Administrator may initiate proceedings to prohibit the small business concern from receiving a transfer of property under this clause or clause (i), in ad- dition to any other remedy available to the Administrator. (iii)(I) In this clause, the term ‘‘covered pe- riod’’ means— (aa) in the case of a Puerto Rico business, the period beginning on August 13, 2018, and ending on the date on which the Oversight Board established under section 2121 of title 48 terminates; and (bb) in the case of a covered territory busi- ness, the period beginning on January 1, 2021, and ending on the date that is 4 years after such date. (II) The Administrator may transfer tech- nology or surplus property under clause (i) to a Puerto Rico business or a covered territory business if either such business meets the re- quirements for such a transfer, without regard to whether either such business is a Program Participant. (G) Training assistance whereby the Admin- istration shall conduct training sessions to as- sist individuals and enterprises eligible to re- ceive contracts under section 637(a) of this title in the development of business principles and strategies to enhance their ability to suc- cessfully compete for contracts in the market- place. (H) Joint ventures, leader-follower arrange- ments, and teaming agreements between the Program Participant and other Program Par- ticipants and other business concerns with re- spect to contracting opportunities for the re- search, development, full-scale engineering or production of major systems. Such activities shall be undertaken on the basis of programs developed by the agency responsible for the procurement of the major system, with the as- sistance of the Administration. (I) Transitional management business plan- ning training and technical assistance. (J) Program Participants in the develop- mental stage of Program participation shall be eligible for the assistance provided by sub- paragraphs (A), (B), (C), (D), (E), (F), and (G). (14) Program Participants in the transitional stage of Program participation shall be eligible for the assistance provided by subparagraphs (A), (B), (F), (G), (H), and (I) of paragraph (13). (15) Subject to the provisions of paragraph (10)(C), a small business concern may receive de- velopmental assistance under the Program and contracts under section 637(a) of this title for a total period of not longer than nine years, meas- ured from the date of its certification under the authority of such section, of which— (A) no more than four years may be spent in the developmental stage of Program Partici- pation; and (B) no more than five years may be spent in the transitional stage of Program Participa- tion. (16)(A) The Administrator shall develop and implement a process for the systematic collec- tion of data on the operations of the Program established pursuant to paragraph (10). (B) Not later than April 30 of each year, the Administrator shall submit a report to the Con- gress on the Program that shall include the fol- lowing: (i) The average personal net worth of indi- viduals who own and control concerns that were initially certified for participation in the Program during the immediately preceding fiscal year. The Administrator shall also indi- cate the dollar distribution of net worths, at $50,000 increments, of all such individuals found to be socially and economically dis- advantaged. For the first report required pur- Page 841 TITLE 15—COMMERCE AND TRADE § 636 suant to this paragraph the Administrator shall also provide the data specified in the pre- ceding sentence for all eligible individuals in the Program as of November 15, 1988. (ii) A description and estimate of the bene- fits and costs that have accrued to the econ- omy and the Government in the immediately preceding fiscal year due to the operations of those business concerns that were performing contracts awarded pursuant to section 637(a) of this title. (iii) A compilation and evaluation of those business concerns that have exited the Pro- gram during the immediately preceding three fiscal years. Such compilation and evaluation shall detail the number of concerns actively engaged in business operations, those that have ceased or substantially curtailed such op- erations, including the reasons for such ac- tions, and those concerns that have been ac- quired by other firms or organizations owned and controlled by other than socially and eco- nomically disadvantaged individuals. For those businesses that have continued oper- ations after they exited from the Program, the Administrator shall also separately detail the benefits and costs that have accrued to the economy during the immediately preceding fiscal year due to the operations of such con- cerns. (iv) A listing of all participants in the Pro- gram during the preceding fiscal year identi- fying, by State and by Region, for each firm: the name of the concern, the race or ethnicity, and gender of the disadvantaged owners, the dollar value of all contracts received in the preceding year, the dollar amount of advance payments received by each concern pursuant to contracts awarded under section 637(a) of this title, and a description including (if ap- propriate) an estimate of the dollar value of all benefits received pursuant to paragraphs (13) and (14) and subsection (a)(20) during such year. (v) The total dollar value of contracts and options awarded during the preceding fiscal year pursuant to section 637(a) of this title and such amount expressed as a percentage of total sales of (I) all firms participating in the Program during such year; and (II) of firms in each of the nine years of program participa- tion. (vi) A description of such additional re- sources or program authorities as may be re- quired to provide the types of services needed over the next two-year period to service the expected portfolio of firms certified pursuant to section 637(a) of this title. (vii) The total dollar value of contracts and options awarded pursuant to section 637(a) of this title, at such dollar increments as the Ad- ministrator deems appropriate, for each four digit standard industrial classification code under which such contracts and options were classified. (C) The first report required by subparagraph (B) shall pertain to fiscal year 1990. (k) Functions relating to loans and financial as- sistance for projects providing technical or management assistance to individuals or en- terprises eligible for assistance as small busi- ness concerns located in urban or rural areas with high proportions of unemployed or low-income individuals, or owned by low- income individuals In carrying out its functions under subsections (i) and (j) and section 637(a) of this title, the Ad- ministration is authorized— (1) to utilize, with their consent, the services and facilities of Federal agencies without re- imbursement, and, with the consent of any State or political subdivision of a State, ac- cept and utilize the services and facilities of such State or subdivision without reimburse- ment; (2) to accept, in the name of the Administra- tion, and employ or dispose of in furtherance of the purposes of this chapter, any money or property, real, personal, or mixed, tangible, or intangible, received by gift, devise, bequest, or otherwise; (3) to accept voluntary and uncompensated services, notwithstanding the provisions of section 1342 of title 31; and (4) to employ experts and consultants or or- ganizations thereof as authorized by section 3109 of title 5, except that no individual may be employed under the authority of this sub- section for more than one hundred days in any fiscal year; to compensate individuals so em- ployed at rates not in excess of the daily equivalent of the highest rate payable under section 5332 of title 5, including traveltime; and to allow them, while away from their homes or regular places of business, travel ex- penses (including per diem in lieu of subsist- ence) as authorized by section 5703 of title 5 for persons in the Government service em- ployed intermittently, while so employed: Pro- vided, however, That contracts for such em- ployment may be renewed annually. (l) Small business intermediary lending pilot program (1) Definitions In this subsection— (A) the term ‘‘eligible intermediary’’— (i) means a private, nonprofit entity that— (I) seeks or has been awarded a loan from the Administrator to make loans to small business concerns under this sub- section; and (II) has not less than 1 year of experi- ence making loans to startup, newly es- tablished, or growing small business con- cerns; and (ii) includes— (I) a private, nonprofit community de- velopment corporation; (II) a consortium of private, nonprofit organizations or nonprofit community development corporations; and (III) an agency of or nonprofit entity established by a Native American Tribal Government; and (B) the term ‘‘Program’’ means the small business intermediary lending pilot program established under paragraph (2). Page 842 TITLE 15—COMMERCE AND TRADE § 636 (2) Establishment There is established a 3-year small business intermediary lending pilot program, under which the Administrator may make direct loans to eligible intermediaries, for the pur- pose of making loans to startup, newly estab- lished, and growing small business concerns. (3) Purposes The purposes of the Program are— (A) to assist small business concerns in areas suffering from a lack of credit due to poor economic conditions or changes in the financial market; and (B) to establish a loan program under which the Administrator may provide loans to eligible intermediaries to enable the eligi- ble intermediaries to provide loans to start- up, newly established, and growing small business concerns for working capital, real estate, or the acquisition of materials, sup- plies, or equipment. (4) Loans to eligible intermediaries (A) Application Each eligible intermediary desiring a loan under this subsection shall submit an appli- cation to the Administrator that describes— (i) the type of small business concerns to be assisted; (ii) the size and range of loans to be made; (iii) the interest rate and terms of loans to be made; (iv) the geographic area to be served and the economic, poverty, and unemployment characteristics of the area; (v) the status of small business concerns in the area to be served and an analysis of the availability of credit; and (vi) the qualifications of the applicant to carry out this subsection. (B) Loan limits No loan may be made to an eligible inter- mediary under this subsection if the total amount outstanding and committed to the eligible intermediary by the Administrator would, as a result of such loan, exceed $1,000,000 during the participation of the eli- gible intermediary in the Program. (C) Loan duration Loans made by the Administrator under this subsection shall be for a term of 20 years. (D) Applicable interest rates Loans made by the Administrator to an el- igible intermediary under the Program shall bear an annual interest rate equal to 1.00 percent. (E) Fees; collateral The Administrator may not charge any fees or require collateral with respect to any loan made to an eligible intermediary under this subsection. (F) Delayed payments The Administrator shall not require the repayment of principal or interest on a loan made to an eligible intermediary under the Program during the 2-year period beginning on the date of the initial disbursement of funds under that loan. (G) Maximum participants and amounts During each of fiscal years 2011, 2012, and 2013, the Administrator may make loans under the Program— (i) to not more than 20 eligible inter- mediaries; and (ii) in a total amount of not more than $20,000,000. (5) Loans to small business concerns (A) In general The Administrator, through an eligible intermediary, shall make loans to startup, newly established, and growing small busi- ness concerns for working capital, real es- tate, and the acquisition of materials, sup- plies, furniture, fixtures, and equipment. (B) Maximum loan An eligible intermediary may not make a loan under this subsection of more than $200,000 to any 1 small business concern. (C) Applicable interest rates A loan made by an eligible intermediary to a small business concern under this sub- section, may have a fixed or a variable inter- est rate, and shall bear an interest rate spec- ified by the eligible intermediary in the ap- plication of the eligible intermediary for a loan under this subsection. (D) Review restrictions The Administrator may not review indi- vidual loans made by an eligible inter- mediary to a small business concern before approval of the loan by the eligible inter- mediary. (6) Termination The authority of the Administrator to make loans under the Program shall terminate 3 years after September 27, 2010. (m) Microloan Program (1)(A) Purposes The purposes of the Microloan Program are— (i) to assist women, low-income, veteran (within the meaning of such term under sec- tion 632(q) of this title), and minority entre- preneurs and business owners and other such individuals possessing the capability to op- erate successful business concerns; (ii) to assist small business concerns in those areas suffering from a lack of credit due to economic downturns; (iii) to establish a microloan program to be administered by the Small Business Ad- ministration— (I) to make loans to eligible inter- mediaries to enable such intermediaries to provide small-scale loans, particularly loans in amounts averaging not more than $10,000, to startup, newly established, or growing small business concerns for work- ing capital or the acquisition of materials, supplies, or equipment; (II) to make grants to eligible inter- mediaries that, together with non-Federal Page 843 TITLE 15—COMMERCE AND TRADE § 636 matching funds, will enable such inter- mediaries to provide intensive marketing, management, and technical assistance to microloan borrowers; (III) to make grants to eligible nonprofit entities that, together with non-Federal matching funds, will enable such entities to provide intensive marketing, manage- ment, and technical assistance to assist low-income entrepreneurs and other low- income individuals obtain private sector financing for their businesses, with or without loan guarantees; and (IV) to report to the Committees on Small Business of the Senate and the House of Representatives on the effective- ness of the microloan program and the ad- visability and feasibility of implementing such a program nationwide; and (iv) to establish a welfare-to-work microloan initiative, which shall be adminis- tered by the Administration, in order to test the feasibility of supplementing the tech- nical assistance grants provided under clauses (ii) and (iii) of subparagraph (B) to individuals who are receiving assistance under the State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), or under any comparable State funded means tested program of as- sistance for low-income individuals, in order to adequately assist those individuals in— (I) establishing small businesses; and (II) eliminating their dependence on that assistance. (B) Establishment There is established a microloan program, under which the Administration may— (i) make direct loans to eligible inter- mediaries, as provided under paragraph (3), for the purpose of making short-term, fixed interest rate microloans to startup, newly established, and growing small business con- cerns under paragraph (6); (ii) in conjunction with such loans and subject to the requirements of paragraph (4), make grants to such intermediaries for the purpose of providing intensive marketing, management, and technical assistance to small business concerns that are borrowers under this subsection; and (iii) subject to the requirements of para- graph (5), make grants to nonprofit entities for the purpose of providing marketing, management, and technical assistance to low-income individuals seeking to start or enlarge their own businesses, if such assist- ance includes working with the grant recipi- ent to secure loans in amounts not to exceed $50,000 from private sector lending institu- tions, with or without a loan guarantee from the nonprofit entity. (2) Eligibility for participation An intermediary shall be eligible to receive loans and grants under subparagraphs (B)(i) and (B)(ii) of paragraph (1) if it— (A) meets the definition in paragraph (10); 2 and (B) has at least 1 year of experience mak- ing microloans to startup, newly estab- lished, or growing small business concerns and providing, as an integral part of its microloan program, intensive marketing, management, and technical assistance to its borrowers. (3) Loans to intermediaries (A) Intermediary applications (i) In general As part of its application for a loan, each intermediary shall submit a description to the Administration of— (I) the type of businesses to be as- sisted; (II) the size and range of loans to be made; (III) the geographic area to be served and its economic, poverty, and unem- ployment characteristics; (IV) the status of small business con- cerns in the area to be served and an analysis of their credit and technical as- sistance needs; (V) any marketing, management, and technical assistance to be provided in connection with a loan made under this subsection; (VI) the local economic credit mar- kets, including the costs associated with obtaining credit locally; (VII) the qualifications of the appli- cant to carry out the purpose of this sub- section; and (VIII) any plan to involve other tech- nical assistance providers (such as coun- selors from the Service Corps of Retired Executives or small business develop- ment centers) or private sector lenders in assisting selected business concerns. (ii) Selection of intermediaries In selecting intermediaries to partici- pate in the program established under this subsection, the Administration shall give priority to those applicants that provide loans in amounts averaging not more than $10,000. (B) Intermediary contribution As a condition of any loan made to an intermediary under subparagraph (B)(i) of paragraph (1), the Administrator shall re- quire the intermediary to contribute not less than 15 percent of the loan amount in cash from non-Federal sources. (C) Loan limits Notwithstanding subsection (a)(3), no loan shall be made under this subsection if the total amount outstanding and committed to one intermediary (excluding outstanding grants) from the business loan and invest- ment fund established by this chapter would, as a result of such loan, exceed $750,000 in the first year of such intermediary’s partici- pation in the program, $7,000,000 (in the ag- gregate) in the remaining years of the intermediary’s participation in the program, and $3,000,000 in any of those remaining years. (D)(i) In general The Administrator shall, by regulation, re- quire each intermediary to establish a loan Page 844 TITLE 15—COMMERCE AND TRADE § 636 19 So in original. Probably should be ‘‘subclause (IV),’’. 20 So in original. The word ‘‘that’’ probably should not appear. 21 So in original. Probably should be ‘‘(vi)’’. loss reserve fund, and to maintain such re- serve fund until all obligations owed to the Administration under this subsection are re- paid. (ii) Level of loan loss reserve fund (I) In general Subject to subclause (III), the Adminis- trator shall require the loan loss reserve fund of an intermediary to be maintained at a level equal to 15 percent of the out- standing balance of the notes receivable owed to the intermediary. (II) Review of loan loss reserve After the initial 5 years of an intermediary’s participation in the pro- gram authorized by this subsection, the Administrator shall, at the request of the intermediary, conduct a review of the an- nual loss rate of the intermediary. Any intermediary in operation under this sub- section prior to October 1, 1994, that re- quests a reduction in its loan loss reserve shall be reviewed based on the most recent 5-year period preceding the request. (III) Reduction of loan loss reserve Subject to the requirements of clause IV,19 the Administrator may reduce the annual loan loss reserve requirement of an intermediary to reflect the actual average loan loss rate for the intermediary during the preceding 5-year period, except that in no case shall the loan loss reserve be re- duced to less than 10 percent of the out- standing balance of the notes receivable owed to the intermediary. (IV) Requirements The Administrator may reduce the an- nual loan loss reserve requirement of an intermediary only if the intermediary demonstrates to the satisfaction of the Ad- ministrator that— (aa) the average annual loss rate for the intermediary during the preceding 5- year period is less than 15 percent; and (bb) that 20 no other factors exist that may impair the ability of the inter- mediary to repay all obligations owed to the Administration under this sub- section. (E) Unavailability of comparable credit An intermediary may make a loan under this subsection of more than $20,000 to a small business concern only if such small business concern demonstrates that it is un- able to obtain credit elsewhere at com- parable interest rates and that it has good prospects for success. In no case shall an intermediary make a loan under this sub- section of more than $50,000, or have out- standing or committed to any 1 borrower more than $50,000. (F) Loan duration; interest rates (i) Loan duration Loans made by the Administration under this subsection shall be for a term of 10 years. (ii) Applicable interest rates Except as provided in clause (iii), loans made by the Administration under this subsection to an intermediary shall bear an interest rate equal to 1.25 percentage points below the rate determined by the Secretary of the Treasury for obligations of the United States with a period of matu- rity of 5 years, adjusted to the nearest one- eighth of 1 percent. (iii) Rates applicable to certain small loans Loans made by the Administration to an intermediary that makes loans to small business concerns and entrepreneurs aver- aging not more than $7,500, shall bear an interest rate that is 2 percentage points below the rate determined by the Sec- retary of the Treasury for obligations of the United States with a period of matu- rity of 5 years, adjusted to the nearest one- eighth of 1 percent. (iv) Rates applicable to multiple sites or of- fices The interest rate prescribed in clause (ii) or (iii) shall apply to each separate loan- making site or office of 1 intermediary only if such site or office meets the re- quirements of that clause. (v) Rate basis The applicable rate of interest under this paragraph shall— (I) be applied retroactively for the first year of an intermediary’s participation in the program, based upon the actual lending practices of the intermediary as determined by the Administration prior to the end of such year; and (II) be based in the second and subse- quent years of an intermediary’s partici- pation in the program, upon the actual lending practices of the intermediary during the term of the intermediary’s participation in the program. (vii) 21 Covered intermediaries The interest rates prescribed in this sub- paragraph shall apply to all loans made to intermediaries under this subsection on or after October 28, 1991. (G) Delayed payments The Administration shall not require re- payment of interest or principal of a loan made to an intermediary under this sub- section during the first year of the loan. (H) Fees; collateral Except as provided in subparagraphs (B) and (D), the Administration shall not charge any fees or require collateral other than an assignment of the notes receivable of the microloans with respect to any loan made to an intermediary under this subsection. (4) Marketing, management and technical as- sistance grants to intermediaries Grants made in accordance with subpara- graph (B)(ii) of paragraph (1) shall be subject to the following requirements: Page 845 TITLE 15—COMMERCE AND TRADE § 636 (A) Grant amounts Except as otherwise provided in subpara- graphs (C) and (G) and subject to subpara- graph (B), each intermediary that receives a loan under subparagraph (B)(i) of paragraph (1) shall be eligible to receive a grant to pro- vide marketing, management, and technical assistance to small business concerns that are borrowers under this subsection. Except as provided in subparagraphs (C) and (G), each intermediary meeting the requirements of subparagraph (B) may receive a grant of not more than 25 percent of the total out- standing balance of loans made to it under this subsection. (B) Contribution As a condition of a grant made under sub- paragraph (A), the Administrator shall re- quire the intermediary to contribute an amount equal to 25 percent of the amount of the grant, obtained solely from non-Federal sources. In addition to cash or other direct funding, the contribution may include indi- rect costs or in-kind contributions paid for under non-Federal programs. (C) Additional technical assistance grants for making certain loans (i) In general In addition to grants made under sub- paragraph (A) or (G), each intermediary shall be eligible to receive a grant equal to 5 percent of the total outstanding balance of loans made to the intermediary under this subsection if— (I) the intermediary provides not less than 25 percent of its loans to small busi- ness concerns located in or owned by 1 or more residents of an economically dis- tressed area; or (II) the intermediary has a portfolio of loans made under this subsection— (aa) that averages not more than $10,000 during the period of the intermediary’s participation in the program; or (bb) of which not less than 25 percent is serving rural areas during the period of the intermediary’s participation in the program. (ii) Purposes A grant awarded under clause (i) may be used to provide marketing, management, and technical assistance to small business concerns that are borrowers under this subsection. (iii) Contribution exception The contribution requirements in sub- paragraph (B) do not apply to grants made under this subparagraph. (D) Eligibility for multiple sites or offices The eligibility for a grant described in sub- paragraph (A),9 or (C) shall be determined separately for each loan-making site or of- fice of 1 intermediary. (E) Assistance to certain small business con- cerns (i) In general Each intermediary may expend an amount not to exceed 50 percent of the grant funds received under paragraph (1)(B)(ii) to provide information and tech- nical assistance to small business concerns that are prospective borrowers under this subsection. (ii) Technical assistance An intermediary may expend not more than 50 percent of the funds received under paragraph (1)(B)(ii) to enter into third party contracts for the provision of tech- nical assistance. (F) Supplemental grant (i) In general The Administration may accept any funds transferred to the Administration from other departments or agencies of the Federal Government to make grants in ac- cordance with this subparagraph and sec- tion 202(b) of the Small Business Reauthor- ization Act of 1997 to participating inter- mediaries and technical assistance pro- viders under paragraph (5), for use in ac- cordance with clause (iii) to provide addi- tional technical assistance and related services to recipients of assistance under a State program described in paragraph (1)(A)(iv) at the time they initially apply for assistance under this subparagraph. (ii) Eligible recipients; grant amounts In making grants under this subpara- graph, the Administration may select, from among participating intermediaries and technical assistance providers de- scribed in clause (i), not more than 20 grantees in fiscal year 1998, not more than 25 grantees in fiscal year 1999, and not more than 30 grantees in fiscal year 2000, each of whom may receive a grant under this subparagraph in an amount not to ex- ceed $200,000 per year. (iii) Use of grant amounts Grants under this subparagraph— (I) are in addition to other grants pro- vided under this subsection and shall not require the contribution of matching amounts as a condition of eligibility; and (II) may be used by a grantee— (aa) to pay or reimburse a portion of child care and transportation costs of recipients of assistance described in clause (i), to the extent such costs are not otherwise paid by State block grants under the Child Care Develop- ment Block Grant Act of 1990 (42 U.S.C. 9858 2 et seq.) or under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); and (bb) for marketing, management, and technical assistance to recipients of assistance described in clause (i). (iv) Memorandum of Understanding Prior to accepting any transfer of funds under clause (i) from a department or Page 846 TITLE 15—COMMERCE AND TRADE § 636 agency of the Federal Government, the Administration shall enter into a Memo- randum of Understanding with the depart- ment or agency, which shall— (I) specify the terms and conditions of the grants under this subparagraph; and (II) provide for appropriate monitoring of expenditures by each grantee under this subparagraph and each recipient of assistance described in clause (i) who re- ceives assistance from a grantee under this subparagraph, in order to ensure compliance with this subparagraph by those grantees and recipients of assist- ance. (G) Grant amounts based on appropriations In any fiscal year in which the amount ap- propriated to make grants under subpara- graph (A) is sufficient to provide to each intermediary that receives a loan under paragraph (1)(B)(i) a grant of not less than 25 percent of the total outstanding balance of loans made to the intermediary under this subsection, the Administration shall make a grant under subparagraph (A) to each inter- mediary of not less than 25 percent and not more than 30 percent of that total out- standing balance for the intermediary. (5) Private sector borrowing technical assist- ance grants Grants made in accordance with subpara- graph (B)(iii) of paragraph (1) shall be subject to the following requirements: (A) Grant amounts Subject to the requirements of subpara- graph (B), the Administration may make not more than 55 grants annually, each in amounts not to exceed $200,000 for the pur- poses specified in subparagraph (B)(iii) of paragraph (1). (B) Contribution As a condition of any grant made under subparagraph (A), the Administration shall require the grant recipient to contribute an amount equal to 20 percent of the amount of the grant, obtained solely from non-Federal sources. In addition to cash or other direct funding, the contribution may include indi- rect costs or in-kind contributions paid for under non-Federal programs. (6) Loans to small business concerns from eligi- ble intermediaries (A) In general An eligible intermediary shall make short- term, fixed rate loans to startup, newly es- tablished, and growing small business con- cerns from the funds made available to it under subparagraph (B)(i) of paragraph (1) for working capital and the acquisition of materials, supplies, furniture, fixtures, and equipment. (B) Portfolio requirement To the extent practicable, each inter- mediary that operates a microloan program under this subsection shall maintain a microloan portfolio with an average loan size of not more than $15,000. (C) Interest limit Notwithstanding any provision of the laws of any State or the constitution of any State pertaining to the rate or amount of interest that may be charged, taken, received, or re- served on a loan, the maximum rate of inter- est to be charged on a microloan funded under this subsection shall not exceed the rate of interest applicable to a loan made to an intermediary by the Administration— (i) in the case of a loan of more than $7,500 made by the intermediary to a small business concern or entrepreneur by more than 7.75 percentage points; and (ii) in the case of a loan of not more than $7,500 made by the intermediary to a small business concern or entrepreneur by more than 8.5 percentage points. (D) Review restriction The Administration shall not review indi- vidual microloans made by intermediaries prior to approval. (E) Establishment of child care or transpor- tation businesses In addition to other eligible small busi- nesses concerns, borrowers under any pro- gram under this subsection may include in- dividuals who will use the loan proceeds to establish for-profit or nonprofit child care establishments or businesses providing for- profit transportation services. (7) Program funding for microloans (A) Number of participants Under the program authorized by this sub- section, the Administration may fund, on a competitive basis, not more than 300 inter- mediaries. (B) Allocation (i) Minimum allocation Subject to the availability of appropria- tions, of the total amount of new loan funds made available for award under this subsection in each fiscal year, the Admin- istration shall make available for award in each State (including the District of Co- lumbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa) an amount equal to the sum of— (I) the lesser of— (aa) $800,000; or (bb) 1⁄55 of the total amount of new loan funds made available for award under this subsection for that fiscal year; and (II) any additional amount, as deter- mined by the Administration. (ii) Redistribution If, at the beginning of the third quarter of a fiscal year, the Administration deter- mines that any portion of the amount made available to carry out this sub- section is unlikely to be made available under clause (i) during that fiscal year, the Administration may make that portion available for award in any one or more Page 847 TITLE 15—COMMERCE AND TRADE § 636 22 So in original. The period probably should not appear. 23 So in original. The period probably should be ‘‘; and’’. States (including the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa) without regard to clause (i). (8) Equitable distribution of intermediaries In approving microloan program applicants and providing funding to intermediaries under this subsection, the Administration shall se- lect and provide funding to such inter- mediaries as will ensure appropriate avail- ability of loans for small businesses in all in- dustries located throughout each State, par- ticularly those located in urban and in rural areas. (9) Grants for management, marketing, tech- nical assistance, and related services (A) In general The Administration may procure technical assistance for intermediaries participating in the Microloan Program to ensure that such intermediaries have the knowledge, skills, and understanding of microlending practices necessary to operate successful microloan programs. (B) Assistance amount The Administration shall transfer 7 per- cent of its annual appropriation for loans and loan guarantees under this subsection to the Administration’s Salaries and Expense Account for the specific purpose of providing 1 or more technical assistance grants to ex- perienced microlending organizations and national and regional nonprofit organiza- tions that have demonstrated experience in providing training support for microenter- prise development and financing.22 to achieve the purpose set forth in subpara- graph (A). (C) Welfare-to-work microloan initiative Of amounts made available to carry out the welfare-to-work microloan initiative under paragraph (1)(A)(iv) in any fiscal year, the Administration may use not more than 5 percent to provide technical assistance, ei- ther directly or through contractors, to wel- fare-to-work microloan initiative grantees, to ensure that, as grantees, they have the knowledge, skills, and understanding of microlending and welfare-to-work transi- tion, and other related issues, to operate a successful welfare-to-work microloan initia- tive. (10) Report to Congress On November 1, 1995, the Administration shall submit to the Committees on Small Business of the Senate and the House of Rep- resentatives a report, including the Adminis- tration’s evaluation of the effectiveness of the first 31⁄2 years of the microloan program and the following: (A) the numbers and locations of the inter- mediaries funded to conduct microloan pro- grams; (B) the amounts of each loan and each grant to intermediaries; (C) a description of the matching contribu- tions of each intermediary; (D) the numbers and amounts of microloans made by the intermediaries to small business concern borrowers; (E) the repayment history of each inter- mediary; (F) a description of the loan portfolio of each intermediary including the extent to which it provides microloans to small busi- ness concerns in rural areas; and (G) any recommendations for legislative changes that would improve program oper- ations. (11) Definitions For purposes of this subsection— (A) the term ‘‘intermediary’’ means— (i) a private, nonprofit entity; (ii) a private, nonprofit community de- velopment corporation; (iii) a consortium of private, nonprofit organizations or nonprofit community de- velopment corporations; (iv) a quasi-governmental economic de- velopment entity (such as a planning and development district), other than a State, county, municipal government, or any agency thereof, if— (I) no application is received from an eligible nonprofit organization; or (II) the Administration determines that the needs of a region or geographic area are not adequately served by an ex- isting, eligible nonprofit organization that has submitted an application; or (v) an agency of or nonprofit entity es- tablished by a Native American Tribal Government, that seeks to borrow or has borrowed funds from the Administration to make microloans to small business concerns under this subsection; (B) the term ‘‘microloan’’ means a short- term, fixed rate loan of not more than $50,000, made by an intermediary to a start- up, newly established, or growing small busi- ness concern; (C) the term ‘‘rural area’’ means any polit- ical subdivision or unincorporated area— (i) in a nonmetropolitan county (as de- fined by the Secretary of Agriculture) or its equivalent thereof; or (ii) in a metropolitan county or its equivalent that has a resident population of less than 20,000 if the Small Business Administration has determined such polit- ical subdivision or area to be rural.23 (D) the term ‘‘economically distressed area’’, as used in paragraph (4), means a county or equivalent division of local gov- ernment of a State in which the small busi- ness concern is located, in which, according to the most recent data available from the Bureau of the Census, Department of Com- merce, not less than 40 percent of residents have an annual income that is at or below the poverty level. Page 848 TITLE 15—COMMERCE AND TRADE § 636 (12) Deferred participation loan pilot In lieu of making direct loans to inter- mediaries as authorized in paragraph (1)(B), during fiscal years 1998 through 2000, the Ad- ministration may, on a pilot program basis, participate on a deferred basis of not less than 90 percent and not more than 100 percent on loans made to intermediaries by a for-profit or nonprofit entity or by alliances of such enti- ties, subject to the following conditions: (A) Number of loans In carrying out this paragraph, the Admin- istration shall not participate in providing financing on a deferred basis to more than 10 intermediaries in urban areas or more than 10 intermediaries in rural areas. (B) Term of loans The term of each loan shall be 10 years. During the first year of the loan, the inter- mediary shall not be required to repay any interest or principal. During the second through fifth years of the loan, the inter- mediary shall be required to pay interest only. During the sixth through tenth years of the loan, the intermediary shall be re- quired to make interest payments and fully amortize the principal. (C) Interest rate The interest rate on each loan shall be the rate specified by paragraph (3)(F) for direct loans. (13) Evaluation of welfare-to-work microloan initiative On January 31, 1999, and annually thereafter, the Administration shall submit to the Com- mittees on Small Business of the House of Representatives and the Senate a report on any monies distributed pursuant to paragraph (4)(F). (n) Repayment deferred for active service reserv- ists (1) Definitions In this subsection: (A) Active service The term ‘‘active service’’ has the mean- ing given that term in section 101(d)(3) of title 10. (B) Eligible reservist The term ‘‘eligible reservist’’ means a member of a reserve component of the Armed Forces ordered to perform active service for a period of more than 30 consecu- tive days. (C) Essential employee The term ‘‘essential employee’’ means an individual who is employed by a small busi- ness concern and whose managerial or tech- nical expertise is critical to the successful day-to-day operations of that small business concern. (D) Qualified borrower The term ‘‘qualified borrower’’ means— (i) an individual who is an eligible re- servist and who received a direct loan under subsection (a) or (b) before being or- dered to active service; or (ii) a small business concern that re- ceived a direct loan under subsection (a) or (b) before an eligible reservist, who is an essential employee, was ordered to active service. (2) Deferral of direct loans (A) In general The Administration shall, upon written re- quest, defer repayment of principal and in- terest due on a direct loan made under sub- section (a) or (b), if such loan was incurred by a qualified borrower. (B) Period of deferral The period of deferral for repayment under this paragraph shall begin on the date on which the eligible reservist is ordered to ac- tive service and shall terminate on the date that is 180 days after the date such eligible reservist is discharged or released from ac- tive service. (C) Interest rate reduction during deferral Notwithstanding any other provision of law, during the period of deferral described in subparagraph (B), the Administration may, in its discretion, reduce the interest rate on any loan qualifying for a deferral under this paragraph. (3) Deferral of loan guarantees and other financings The Administration shall— (A) encourage intermediaries participating in the program under subsection (m) to defer repayment of a loan made with proceeds made available under that subsection, if such loan was incurred by a small business concern that is eligible to apply for assist- ance under subsection (b)(3); and (B) not later than 30 days after August 17, 1999, establish guidelines to— (i) encourage lenders and other inter- mediaries to defer repayment of, or pro- vide other relief relating to, loan guaran- tees under subsection (a) and financings under section 697a of this title that were incurred by small business concerns that are eligible to apply for assistance under subsection (b)(3), and loan guarantees pro- vided under subsection (m) if the inter- mediary provides relief to a small business concern under this paragraph; and (ii) implement a program to provide for the deferral of repayment or other relief to any intermediary providing relief to a small business borrower under this para- graph. (Pub. L. 85–536, § 2[7], July 18, 1958, 72 Stat. 387; Pub. L. 85–699, title VI, § 602(c), Aug. 21, 1958, 72 Stat. 698; Pub. L. 86–367, § 2, Sept. 22, 1959, 73 Stat. 647; Pub. L. 87–70, title III, § 305[a], June 30, 1961, 75 Stat. 167; Pub. L. 87–305, § 9, Sept. 26, 1961, 75 Stat. 668; Pub. L. 88–264, § 1, Feb. 5, 1964, 78 Stat. 7; Pub. L. 88–560, title III, § 319, Sept. 2, 1964, 78 Stat. 794; Pub. L. 89–59, § 1(a), (b), June 30, 1965, 79 Stat. 206; Pub. L. 89–409, § 3(a), May 2, 1966, 80 Stat. 133; Pub. L. 89–769, § 7(b), Nov. 6, 1966, 80 Stat. 1319; Pub. L. 90–104, title I, §§ 103, Page 849 TITLE 15—COMMERCE AND TRADE § 636 104, Oct. 11, 1967, 81 Stat. 268; Pub. L. 90–448, title XI, § 1106(a), Aug. 1, 1968, 82 Stat. 567; Pub. L. 90–495, § 31, Aug. 23, 1968, 82 Stat. 835; Pub. L. 91–173, title V, § 504(a), (b), Dec. 30, 1969, 83 Stat. 802; Pub. L. 91–596, § 28(a), (b), Dec. 29, 1970, 84 Stat. 1618; Pub. L. 91–597, § 25(a), (b), Dec. 29, 1970, 84 Stat. 1633, 1634; Pub. L. 92–385, §§ 1(a), 2(a), Aug. 16, 1972, 86 Stat. 554, 555; Pub. L. 92–500, § 8(a), Oct. 18, 1972, 86 Stat. 898; Pub. L. 92–595, § 3(b), Oct. 27, 1972, 86 Stat. 1316; Pub. L. 93–237, §§ 2(a), (b), 3(a), 5, 6, Jan. 2, 1974, 87 Stat. 1023, 1024; Pub. L. 93–386, §§ 2(a)(4), 3(2), 8, 9, 12, Aug. 23, 1974, 88 Stat. 742, 746, 748, 749; Pub. L. 94–305, title I, §§ 108(b), 109, 111, 112(c), (d), 114, June 4, 1976, 90 Stat. 666, 667; Pub. L. 95–89, title I, § 101(d), (e), title III, §§ 301, 302, title IV, §§ 402–405, Aug. 4, 1977, 91 Stat. 553, 558–560; Pub. L. 95–315, §§ 2, 3, July 4, 1978, 92 Stat. 377, 378; Pub. L. 95–507, title II, §§ 204, 205, 231, Oct. 24, 1978, 92 Stat. 1764, 1766, 1772; Pub. L. 95–510, § 104, Oct. 24, 1978, 92 Stat. 1782; Pub. L. 96–38, title I, § 101(a), (b), July 25, 1979, 93 Stat. 118; Pub. L. 96–302, title I, §§ 119(a), (b), 122–124, title II, § 203, title V, § 505, July 2, 1980, 94 Stat. 840, 841, 843, 848, 852; Pub. L. 96–481, title I, §§ 104, 106(a), 107, 112, Oct. 21, 1980, 94 Stat. 2322, 2323; Pub. L. 97–35, title XIX, §§ 1902, 1910–1912, 1913(a), (c), 1914, Aug. 13, 1981, 95 Stat. 767, 778–780; Pub. L. 98–270, title III, §§ 301, 304, 308, 309, 311, Apr. 18, 1984, 98 Stat. 159–161; Pub. L. 98–395, § 5, Aug. 21, 1984, 98 Stat. 1368; Pub. L. 99–272, title XVIII, §§ 18006(a)(1), (2), 18007, 18013, Apr. 7, 1986, 100 Stat. 366, 370; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–418, title VIII, §§ 8005, 8007(a), Aug. 23, 1988, 102 Stat. 1557, 1559; Pub. L. 100–533, title III, § 302(a), Oct. 25, 1988, 102 Stat. 2693; Pub. L. 100–590, title I, §§ 102(a), 103, 111(c), 119(a), 120–122, Nov. 3, 1988, 102 Stat. 2992, 2995, 2999, 3000; Pub. L. 100–656, title II, §§ 201(a), 202, 203, 205, 206, 208, title III, §§ 301–303(a), title IV, § 408, title V, § 505(h), Nov. 15, 1988, 102 Stat. 3856, 3858, 3859, 3861, 3862, 3865–3868, 3877, 3887; Pub. L. 100–707, title I, § 109(f), Nov. 23, 1988, 102 Stat. 4708; Pub. L. 101–37, §§ 4–6(a), 7(a), 8–10(b), June 15, 1989, 103 Stat. 70–73; Pub. L. 101–162, title V, (1), (2), Nov. 21, 1989, 103 Stat. 1024, 1025; Pub. L. 101–574, title II, §§ 202, 204(a), 206, 242, 245, title III, § 307, Nov. 15, 1990, 104 Stat. 2818–2820, 2827, 2830; Pub. L. 102–140, title VI, § 609(b), (h), Oct. 28, 1991, 105 Stat. 825, 827; Pub. L. 102–191, § 4, Dec. 5, 1991, 105 Stat. 1591; Pub. L. 102–366, title I, §§ 104, 113(a), title II, § 211, Sept. 4, 1992, 106 Stat. 988, 989, 997; Pub. L. 102–564, title III, § 307(b), (c), Oct. 28, 1992, 106 Stat. 4263, 4264; Pub. L. 103–81, §§ 4, 5(a), 8, Aug. 13, 1993, 107 Stat. 781, 782; Pub. L. 103–403, title II, §§ 201, 202, 204–208(b), 209–211, title VI, §§ 603–605(a), Oct. 22, 1994, 108 Stat. 4180–4183, 4202, 4203; Pub. L. 104–36, §§ 2–4(a), 5, Oct. 12, 1995, 109 Stat. 295–297; Pub. L. 104–208, div. D, title I, §§ 103(a)–(d), (f), 105, 107, 111, Sept. 30, 1996, 110 Stat. 3009–726, 3009–727, 3009–731 to 3009–733; Pub. L. 105–135, title II, §§ 201, 202(a), 231, title VII, § 706, Dec. 2, 1997, 111 Stat. 2597, 2598, 2606, 2637; Pub. L. 105–277, div. A, § 101(f) [title VIII, § 405(d)(10), (f)(9)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–420, 2681–430; Pub. L. 106–8, § 3(a), (c), Apr. 2, 1999, 113 Stat. 13, 16; Pub. L. 106–22, §§ 2, 3, Apr. 27, 1999, 113 Stat. 36, 37; Pub. L. 106–24, § 1(a), Apr. 27, 1999, 113 Stat. 39; Pub. L. 106–50, title IV, §§ 401(b), 402(a), (b), 403, 404, Aug. 17, 1999, 113 Stat. 244–246; Pub. L. 106–554, § 1(a)(9) [title II, §§ 202–208(a), 210, title VIII, § 802(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–681 to 2763A–684, 2763A–702; Pub. L. 107–100, § 6(a), Dec. 21, 2001, 115 Stat. 970; Pub. L. 108–447, div. K, title I, §§ 101(a), 102, 103(a), 107(a), (b), Dec. 8, 2004, 118 Stat. 3442–3446; Pub. L. 109–163, div. A, title VIII, § 845(a)(2), (c), Jan. 6, 2006, 119 Stat. 3390, 3391; Pub. L. 110–140, title XII, §§ 1201, 1202, Dec. 19, 2007, 121 Stat. 1764, 1765; Pub. L. 110–186, title II, §§ 201(a), 203, 204, 208, Feb. 14, 2008, 122 Stat. 627, 629, 631; Pub. L. 110–234, title XII, §§ 12061, 12063(a), (c)(2), 12065, 12066(a), 12068(a), (b)(2), 12070, 12074(a), 12077–12078(b)(1), (c), 12081–12083(a), May 22, 2008, 122 Stat. 1406, 1407, 1409–1411, 1414–1418; Pub. L. 110–246, § 4(a), title XII, §§ 12061, 12063(a), (c)(2), 12065, 12066(a), 12068(a), (b)(2), 12070, 12074(a), 12077–12078(b)(1), (c), 12081–12083(a), June 18, 2008, 122 Stat. 1664, 2168, 2169, 2171–2173, 2176–2180; Pub. L. 111–240, title I, §§ 1111, 1113, 1131(a), 1133, 1135, 1206(a)–(g), 1401(a), (c)(1), Sept. 27, 2010, 124 Stat. 2507, 2508, 2512, 2514, 2520, 2530–2532, 2547, 2549; Pub. L. 112–74, div. C, title V, § 531, Dec. 23, 2011, 125 Stat. 922; Pub. L. 112–239, div. A, title XVI, § 1622(c), Jan. 2, 2013, 126 Stat. 2069; Pub. L. 113–128, title V, § 512(cc), July 22, 2014, 128 Stat. 1717; Pub. L. 114–38, §§ 2, 4(b), July 28, 2015, 129 Stat. 437, 438; Pub. L. 114–88, div. A, title I, §§ 1101–1104, div. B, title I, §§ 2101, 2102(a), (b), 2105–2107, 2109, title II, § 2201, title III, § 2301(a), Nov. 25, 2015, 129 Stat. 687–690, 692, 694, 695; Pub. L. 114–92, div. A, title VIII, § 865(a)(2), Nov. 25, 2015, 129 Stat. 928; Pub. L. 115–141, div. E, title V, § 532, Mar. 23, 2018, 132 Stat. 581; Pub. L. 115–189, § 4(a)(2), June 21, 2018, 132 Stat. 1497; Pub. L. 115–232, div. A, title VIII, §§ 853(b), 861(c), 862(b)(1), (f), Aug. 13, 2018, 132 Stat. 1885, 1896, 1897, 1900; Pub. L. 115–370, § 2, Dec. 21, 2018, 132 Stat. 5105; Pub. L. 116–92, div. A, title VIII, § 877(a), Dec. 20, 2019, 133 Stat. 1529; Pub. L. 116–136, div. A, title I, §§ 1102(a), (c), (d), 1110(f), Mar. 27, 2020, 134 Stat. 286, 294, 308; Pub. L. 116–139, div. A, § 101(d), Apr. 24, 2020, 134 Stat. 621; Pub. L. 116–142, §§ 2(a), 3(a), (c), June 5, 2020, 134 Stat. 641, 642; Pub. L. 116–260, div. N, title III, §§ 304(a), (b)(1)(C)(ii), 308(a), 310(a)(1), (b), 311(a), 313(a), 315(a), 316–319, 326, 329(a), 334, 335(a), 336(a), 337(a), 338(a), 339(b), 340(a), (b)(1), 341–343(a), 344, Dec. 27, 2020, 134 Stat. 1993, 1994, 2000, 2001, 2008, 2011–2015, 2036, 2037, 2041, 2042, 2047, 2048, 2049–2051; Pub. L. 116–283, div. A, title VIII, § 866(b), Jan. 1, 2021, 134 Stat. 3785; Pub. L. 117–2, title V, § 5001(a), (b), (c)(2), Mar. 11, 2021, 135 Stat. 81–84; Pub. L. 117–6, § 2(a), Mar. 30, 2021, 135 Stat. 250; Pub. L. 117–165, § 2(a), Aug. 5, 2022, 136 Stat. 1363; Pub. L. 117–166, § 2, Aug. 5, 2022, 136 Stat. 1365; Pub. L. 117–249, § 2(a), Dec. 20, 2022, 136 Stat. 2350.) Editorial Notes REFERENCES IN TEXT Subsections (b) and (c) of section 631 of this title, re- ferred to in subsecs. (a)(11) and (i)(1), were redesignated subsections (c) and (d), respectively, and a new sub- section (b) was added by Pub. L. 100–418, title VIII, § 8002, Aug. 23, 1988, 102 Stat. 1553. The Small Business Investment Act of 1958, referred to in subsecs. (a)(13), (36)(A)(xi)(III) and (j)(10)(A)(vi), (13)(D)(i), is Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689. Title IV, part B of title IV, and title V of the Act are classified generally to subchapter IV–A (§ 692 et seq.), part B (§ 694a et seq.) of subchapter IV–A, and sub- Page 850 TITLE 15—COMMERCE AND TRADE § 636 chapter V (§ 695 et seq.), respectively, of chapter 14B of this title. For complete classification of this Act to the Code, see Short Title note set out under section 661 of this title and Tables. The Trade Act of 1974, referred to in subsec. (a)(16)(E), is Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978. Chapter 3 of title II of the Act is classified generally to part 3 (§ 2341 et seq.) of subchapter II of chapter 12 of Title 19, Cus- toms Duties. For complete classification of this Act to the Code, see section 2101 of Title 19 and Tables. Section 7002(b) of the Families First Coronavirus Re- sponse Act, referred to in subsec. (a)(36)(A)(v), is sec- tion 7002(b) of Pub. L. 116–127, which is set out in a note under section 1401 of Title 26, Internal Revenue Code. Section 7001 of the Families First Coronavirus Re- sponse Act, referred to in subsec. (a)(36)(A)(viii)(II)(dd), is section 7001 of Pub. L. 116–127, which is set out as a note under section 3111 of Title 26, Internal Revenue Code. Section 7003 of the Families First Coronavirus Re- sponse Act, referred to in subsec. (a)(36)(A)(viii)(II)(ee), is section 7003 of Pub. L. 116–127, which is set out as a note under section 3111 of Title 26, Internal Revenue Code. Section 308 of the Financial Institutions Reform, Re- covery, and Enforcement Act of 1989, referred to in sub- sec. (a)(36)(A)(xi)(II), is section 308 of Pub. L. 101–73, which is set out as a note under section 1463 of Title 12, Banks and Banking. The Communications Act of 1934, referred to in sub- sec. (a)(36)(D)(iii)(II)(aa), (IV)(aa), is act June 19, 1934, ch. 652, 48 Stat. 1064. Title III of the Act is classified generally to subchapter III (§ 301 et seq.) of chapter 5 of Title 47, Telecommunications. For complete classifica- tion of this Act to the Code, see section 609 of Title 47 and Tables. The Federal Deposit Insurance Act, referred to in subsec. (a)(36)(O)(ii), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of Title 12, Banks and Banking. For com- plete classification of this Act to the Code, see Short Title note set out under section 1811 of Title 12 and Ta- bles. Section 9009a of this title and such section 9009a, re- ferred to in subsec. (a)(36)(U), (37)(A)(iv)(III)(ee), were in the original ‘‘section 24 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act’’ and ‘‘such section 24’’, respectively. The named Act was enacted as title III of div. N of Pub. L. 116–260, and section 324 of such title III, which defines ‘‘eligible person or entity’’ for purposes of that section, is classi- fied to section 9009a of this title. Section 2301 of the CARES Act, referred to in subsec. (a)(37)(J)(iii)(I)(aa), is section 2301 of Pub. L. 116–136, which is set out as a note under section 3111 of Title 26, Internal Revenue Code. Section 303 of the Taxpayer Certainty and Disaster Relief Act of 2020, referred to in subsec. (a)(37)(J)(iii)(I)(bb), is section 303 of of div. EE of Pub. L. 116–260, title III, Dec. 27, 2020, 134 Stat. 3075. Subsec. (a) of section 303 is not classified to the Code. Subsec. (d) of section 303 amended provisions set out as notes under section 3111 of Title 26, Internal Revenue Code, and is otherwise not classified to the Code. For com- plete classification of section 303 to the Code, see Ta- bles. The Robert T. Stafford Disaster Relief and Emer- gency Assistance Act, referred to in subsec. (b), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, formerly known as the Disaster Relief and Emergency Assistance Act, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables. Section 231 of the Disaster Relief Act of 1970 [15 U.S.C. 636a], referred to in penultimate par. of subsec. (b), was repealed by Pub. L. 97–35, title XIX, § 1917, Aug. 13, 1981, 95 Stat. 781. The date of enactment of the Small Business Disaster Response and Loan Improvements Act of 2008, referred to in subsec. (c)(10), is the date of enactment of subtitle B (§§ 12051–12091) of title XII of Pub. L. 110–246, which was approved June 18, 2008. Reorganization Plan Numbered 2 of 1954, referred to in subsec. (d)(1), is set out in the Appendix to Title 5, Government Organization and Employees. Reorganization Plan Numbered 1 of 1957, referred to in subsec. (d)(1), is set out in the Appendix to Title 5. The Economic Opportunity Act of 1964, referred to in subsec. (i)(3), is Pub. L. 88–452, Aug. 20, 1964, 78 Stat. 508. Title III of the Act was classified generally to sub- chapter III (§ 2841 et seq.) of chapter 34 of Title 42, The Public Health and Welfare, prior to its repeal by Pub. L. 97–35, title VI, § 683(a), Aug. 13, 1981, 95 Stat. 519. For complete classification of this Act to the Code, see Ta- bles. The Public Works and Economic Development Act of 1965, referred to in subsec. (i)(5)(D), is Pub. L. 89–136, Aug. 26, 1965, 79 Stat. 552, which is classified generally to chapter 38 (§ 3121 et seq.) of Title 42. For complete classification of this Act to the Code, see Short Title note set out under section 3121 of Title 42 and Tables. Section 602(b) of Public Law 100–656, the ‘‘Business Opportunity Development Reform Act of 1988’’, referred to in subsec. (j)(10)(J)(ii)(III), is set out as a note under section 637 of this title. Section 35(a) of title 41, referred to in subsec. (j)(13)(C), was struck out and former section 35(b) of title 41 redesignated section 35(a) by Pub. L. 103–355, title VII, § 7201(1), Oct. 13, 1994, 108 Stat. 3378. Section 35 of title 41 was subsequently repealed and restated as sections 6501(1) and 6502 of Title 41, Public Contracts, by Pub. L. 111–350, §§ 3, 7(b), Jan. 4, 2011, 124 Stat. 3677, 3855. For disposition of sections of former Title 41, see Disposition Table preceding section 101 of Title 41. The Workforce Innovation and Opportunity Act, re- ferred to in subsec. (j)(13)(E), is Pub. L. 113–128, July 22, 2014, 128 Stat. 1425. Title I of the Act is classified gen- erally to subchapter I (§ 3111 et seq.) of chapter 32 of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 3101 of Title 29 and Tables. The Social Security Act, referred to in subsec. (m)(1)(A)(iv), (4)(F)(iii)(II)(aa), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Part A of title IV of the Act is classi- fied generally to part A (§ 601 et seq.) of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables. Paragraph (10), referred to in subsec. (m)(2)(A), was redesignated paragraph (11) by Pub. L. 102–366, title I, § 113(a)(8), Sept. 4, 1992, 106 Stat. 992. Section 202(b) of the Small Business Reauthorization Act of 1997, referred to in subsec. (m)(4)(F)(i), is section 202(b) of Pub. L. 105–135, which is set out as a note below. The Child Care and Development Block Grant Act of 1990, referred to in subsec. (m)(4)(F)(iii)(II)(aa), is sub- chapter C (§ 658A et seq.) of chapter 8 of subtitle A of title VI of Pub. L. 97–35, as added by Pub. L. 101–508, title V, § 5082(2), Nov. 5, 1990, 104 Stat. 1388–236, which is classified generally to subchapter II–B (§ 9857 et seq.) of chapter 105 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 9857(a) of Title 42 and Tables. CODIFICATION September 30, 1996, referred to in subsec. (a)(25)(C), was in the original ‘‘the date of enactment of this sub- section’’ which was translated as meaning the date of enactment of Pub. L. 104–208, which enacted par. (25) of subsec. (a), to reflect the probable intent of Congress. In subsec. (d)(3), ‘‘August 13, 1981’’ substituted for ‘‘the effective date of this Act’’, such words having been inserted in place of ‘‘to October 1, 1983’’ by section 1914 of Pub. L. 97–35. ‘‘This Act’’ probably meant the Small Business Budget Reconciliation and Loan Con- solidation/Improvement Act of 1981 (title XIX of Pub. L. 97–35) rather than the Small Business Act (Pub. L. 85–536). See Effective Date of 1981 Amendment note set out under section 631 of this title. Page 851 TITLE 15—COMMERCE AND TRADE § 636 In subsec. (j)(11)(B)(i), as enacted by the amendments made by Pub. L. 101–37, ‘‘August 15, 1989’’ substituted for ‘‘the effective date of this subparagraph’’ and ‘‘such effective date’’. Section 32 of Pub. L. 101–37 provided that the amendments made by Pub. L. 101–37 shall apply as if included in Pub. L. 100–656. Section 803(b)(1)(A) of Pub. L. 100–656 provided that the amend- ment made by section 201(a) thereof to subsec. (j)(11) shall take effect on June 1, 1989. Section 31 of Pub. L. 101–37 amended section 803(b) of Pub. L. 100–656 to make such amendments effective on August 15, 1989, in place of June 1, 1989. See 1988 and 1989 Effective Date of Amendment notes below. ‘‘Sections 3131 and 3133 of title 40’’ substituted in sub- sec. (j)(13)(D) for ‘‘the Act entitled ‘An Act requiring contracts for the construction, alteration and repair of any public building or public work of the United States to be accompanied by a performance bond protecting the United States and by an additional bond for the protection of persons furnishing material and labor for the construction, alteration, or repair of said public buildings or public works’, approved August 24, 1935 (49 Stat. 793)’’ on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works. In subsec. (k)(3), ‘‘section 1342 of title 31’’ substituted for ‘‘section 3679(b) of the Revised Statutes (31 U.S.C. 665(b))’’ on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. Section 3109 of title 5, referred to in subsec. (k)(4), substituted for ‘‘section 15 of the Administrative Ex- penses Act of 1946 (5 U.S.C. 55a)’’ on authority of Pub. L. 89–554, § 7(b), Sept. 6, 1966, 80 Stat. 631, the first sec- tion of which enacted Title 5, Government Organization and Employees. Section 5703 of title 5, referred to in subsec. (k)(4), substituted for ‘‘section 5 of such Act (5 U.S.C. 73b–2)’’ on authority of section 7(b) of Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 631, section 1 of which enacted Title 5. Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. PRIOR PROVISIONS Provisions similar to those comprising subsec. (e) of this section were contained in section 2(a) and (b) of Pub. L. 87–550, July 25, 1962, 76 Stat. 221 (formerly clas- sified to section 637a(a) and (b) of this title) prior to re- peal thereof by section 3(b) of Pub. L. 89–409. Prior similar provisions were contained in section 207 of act July 30, 1953, ch. 282, title II, 67 Stat. 235, as amended by acts Aug. 9, 1955, ch. 628, §§ 2, 5, 69 Stat. 547; Feb. 2, 1956, ch. 29, §§ 2, 3, 70 Stat. 10; Pub. L. 85–335, Feb. 22, 1958, 72 Stat. 27, which was previously classified to this section. See Codification note set out under sec- tion 631 of this title. AMENDMENTS 2022—Subsec. (a)(36)(W). Pub. L. 117–166, § 2(a), added subpar. (W). Subsec. (a)(37)(P). Pub. L. 117–166, § 2(b), added subpar. (P). Subsec. (b)(16). Pub. L. 117–249 added par. (16) relating to disaster declaration in rural areas. Pub. L. 117–165 added par. (16) relating to statute of limitations. 2021—Subsec. (a)(36)(A)(iii). Pub. L. 117–6 substituted ‘‘June 30, 2021’’ for ‘‘March 31, 2021’’. Subsec. (a)(36)(A)(xvii). Pub. L. 117–2, § 5001(a)(1)(A), added cl. (xvii). Subsec. (a)(36)(D)(iii)(III). Pub. L. 117–2, § 5001(a)(1)(B)(i), added subcl. (III). Subsec. (a)(36)(D)(iii)(IV). Pub. L. 117–2, § 5001(b)(1)(A), added subcl. (IV). Subsec. (a)(36)(D)(iv)(V). Pub. L. 117–2, § 5001(b)(1)(B), added subcl. (V). Subsec. (a)(36)(D)(v). Pub. L. 117–2, § 5001(b)(1)(C), sub- stituted ‘‘subclause (II), (III), or (IV) of clause (iii), sub- clause (IV) or (V) of clause (iv), clause (vii), or clause (ix)’’ for ‘‘clause (iii)(II), (iv)(IV), or (vii)’’. Subsec. (a)(36)(D)(viii)(II). Pub. L. 117–2, § 5001(b)(1)(D), substituted ‘‘business concern made eli- gible by subclause (II) or (IV) of clause (iii) or sub- clause (IV) or (V) of clause (iv) of this subparagraph’’ for ‘‘business concern made eligible by clause (iii)(II) or clause (iv)(IV) of this subparagraph’’ and inserted ‘‘or organization’’ after ‘‘business concern’’ in two places. Subsec. (a)(36)(D)(ix). Pub. L. 117–2, § 5001(a)(1)(B)(ii), added cl. (ix). Subsec. (a)(37)(A)(i). Pub. L. 117–2, § 5001(a)(2), inserted ‘‘ ‘additional covered nonprofit entity’,’’ after ‘‘the terms’’. Subsec. (a)(37)(A)(iv)(II). Pub. L. 117–2, § 5001(b)(2), substituted ‘‘subclause (II), (III), or (IV) of clause (iii), subclause (IV) or (V) of clause (iv), clause (vii), or clause (ix)’’ for ‘‘clause (iii)(II), (iv)(IV), or (vii)’’. Subsec. (a)(37)(J)(iii)(I)(cc). Pub. L. 117–2, § 5001(c)(2), added item (cc). Subsec. (j)(13)(F)(iii)(I). Pub. L. 116–283, § 866(b)(1), substituted ‘‘means—’’ and items (aa) and (bb) for ‘‘means the period beginning on August 13, 2018, and ending on the date on which the Oversight Board estab- lished under section 2121 of title 48 terminates.’’ Subsec. (j)(13)(F)(iii)(II). Pub. L. 116–283, § 866(b)(2), in- serted ‘‘or a covered territory business’’ after ‘‘a Puer- to Rico business’’ and, in two places, substituted ‘‘ei- ther such business’’ for ‘‘the Puerto Rico business’’. 2020—Subsec. (a)(2)(A). Pub. L. 116–260, § 326(a)(2), amended subpar. (A) generally. Prior to amendment, text read as follows: ‘‘Except as provided in subpara- graphs (B), (D), (E), and (F), in an agreement to partici- pate in a loan on a deferred basis under this subsection (including a loan made under the Preferred Lenders Program or the Community Advantage Pilot Program of the Administration), such participation by the Ad- ministration shall be equal to 90 percent of the balance of the financing outstanding at the time of disburse- ment of the loan.’’ Pub. L. 116–260, § 326(a)(1), substituted ‘‘the Preferred Lenders Program or the Community Advantage Pilot Program of the Administration), such participation by the Administration shall be equal to 90 percent of the balance of the financing outstanding at the time of dis- bursement of the loan.’’ for ‘‘the Preferred Lenders Program), such participation by the Administration shall be equal to— ‘‘(i) 75 percent of the balance of the financing out- standing at the time of disbursement of the loan, if such balance exceeds $150,000; or ‘‘(ii) 85 percent of the balance of the financing out- standing at the time of disbursement of the loan, if such balance is less than or equal to $150,000.’’ Pub. L. 116–136, § 1102(a)(1)(A), substituted ‘‘(E), and (F)’’ for ‘‘and (E)’’ in introductory provisions. Subsec. (a)(2)(F). Pub. L. 116–136, § 1102(a)(1)(B), added subpar. (F). Subsec. (a)(7). Pub. L. 116–260, § 334, designated exist- ing provisions as subpar. (A), inserted heading, sub- stituted ‘‘The Administrator’’ for ‘‘The Administra- tion’’, inserted ‘‘and interest’’ after ‘‘principal’’, and added subpars. (B) and (C). Subsec. (a)(31)(A)(iv). Pub. L. 116–260, § 326(b)(2)(B), substituted ‘‘guarantee rate of not more than 50 per- cent.’’ for ‘‘guarantee rate— ‘‘(I) for a loan in an amount less than or equal to $350,000, of not more than 75 percent; and ‘‘(II) for a loan in an amount greater than $350,000, of not more than 50 percent.’’ Pub. L. 116–260, § 326(b)(2)(A), substituted ‘‘with a guarantee rate— ‘‘(I) for a loan in an amount less than or equal to $350,000, of not more than 75 percent; and ‘‘(II) for a loan in an amount greater than $350,000, of not more than 50 percent.’’ for ‘‘with a guaranty rate of not more than 50 percent.’’ Subsec. (a)(31)(D). Pub. L. 116–136, § 1102(c)(2), as amended by Pub. L. 116–260, § 326(b)(1), substituted ‘‘$500,000’’ for ‘‘$1,000,000’’. Page 852 TITLE 15—COMMERCE AND TRADE § 636 Pub. L. 116–136, § 1102(c)(1), substituted ‘‘$1,000,000’’ for ‘‘$350,000’’. Subsec. (a)(31)(G)(ii), (iii). Pub. L. 116–136, § 1102(d), re- designated cl. (iii) as (ii) and struck out former cl. (ii). Prior to amendment, text read as follows: ‘‘If the Presi- dent’s budget for the upcoming fiscal year, submitted to Congress pursuant to section 1105(a) of title 31, in- cludes a cost for the program established under this subsection that is above zero, the requirements of clause (i) shall not apply to loans made during such up- coming fiscal year.’’ Subsec. (a)(36). Pub. L. 116–136, § 1102(a)(2), added par. (36). Subsec. (a)(36)(A)(iii). Pub. L. 116–260, § 343(a), sub- stituted ‘‘March 31, 2021’’ for ‘‘December 31, 2020’’. Pub. L. 116–142, § 3(a), substituted ‘‘December 31, 2020’’ for ‘‘June 30, 2020’’. Subsec. (a)(36)(A)(viii)(I)(aa)(EE). Pub. L. 116–260, § 308(a), inserted ‘‘or group life, disability, vision, or dental insurance’’ before ‘‘benefits’’. Subsec. (a)(36)(A)(viii)(I)(bb). Pub. L. 116–260, § 344(1), substituted ‘‘on an annualized basis, as prorated for the period during which the payments are made or the obli- gation to make the payments is incurred’’ for ‘‘in 1 year, as prorated for the covered period’’. Subsec. (a)(36)(A)(viii)(II)(aa). Pub. L. 116–260, § 344(2)(A), substituted ‘‘$100,000 on an annualized basis, as prorated for the period during which the compensa- tion is paid or the obligation to pay the compensation is incurred’’ for ‘‘an annual salary of $100,000, as pro- rated for the covered period’’. Subsec. (a)(36)(A)(viii)(II)(bb). Pub. L. 116–260, § 344(2)(B), substituted ‘‘applicable period’’ for ‘‘covered period’’. Subsec. (a)(36)(A)(x) to (xii). Pub. L. 116–139, § 101(d)(1), added cls. (x) to (xii). Subsec. (a)(36)(A)(xiii). Pub. L. 116–260, § 315(a), added cl. (xiii). Subsec. (a)(36)(A)(xiv). Pub. L. 116–260, § 316(1), added cl. (xiv). Subsec. (a)(36)(A)(xv). Pub. L. 116–260, § 318(1), added cl. (xv). Subsec. (a)(36)(A)(xvi). Pub. L. 116–260, § 342(1), added cl. (xvi). Subsec. (a)(36)(D)(i). Pub. L. 116–260, § 316(2)(A), in- serted ‘‘housing cooperative,’’ before ‘‘veterans organi- zation,’’ wherever appearing. Subsec. (a)(36)(D)(ii)(II). Pub. L. 116–260, § 335(a), sub- stituted ‘‘as determined necessary by the Adminis- trator and the Secretary, to establish the applicant as eligible’’ for ‘‘as is necessary to establish such indi- vidual as eligible, including payroll tax filings reported to the Internal Revenue Service, Forms 1099–MISC, and income and expenses from the sole proprietorship, as determined by the Administrator and the Secretary’’. Subsec. (a)(36)(D)(iii). Pub. L. 116–260, § 317(a), des- ignated existing provisions as subcl. (I), inserted head- ing, and added subcl. (II). Subsec. (a)(36)(D)(iv)(IV). Pub. L. 116–260, § 317(b), added subcl. (IV). Subsec. (a)(36)(D)(v). Pub. L. 116–260, § 318(2)(A), in- serted ‘‘or for purposes of determining the number of employees of a housing cooperative or a business con- cern or organization made eligible for a loan under this paragraph under clause (iii)(II), (iv)(IV), or (vii),’’ be- fore ‘‘the term ‘employee’ ’’. Subsec. (a)(36)(D)(vi). Pub. L. 116–260, § 318(2)(B), in- serted ‘‘a business concern or organization made eligi- ble for a loan under this paragraph under clause (vii),’’ after ‘‘a nonprofit organization,’’. Pub. L. 116–260, § 316(2)(B), which directed the inser- tion of ‘‘, a housing cooperative,’’ before ‘‘a veterans organization’’, was executed by making the insertion before ‘‘and a veterans organization’’ to reflect the probable intent of Congress. Subsec. (a)(36)(D)(vii). Pub. L. 116–260, § 318(2)(C), added cl. (vii). Subsec. (a)(36)(D)(viii). Pub. L. 116–260, § 317(c), in cl. (viii) added by section 342(2) of Pub. L. 116–260, des- ignated existing provisions as subcl. (I), inserted head- ing, substituted ‘‘Subject to subclause (II), and not- withstanding’’ for ‘‘Notwithstanding’’, and added subcl. (II). Pub. L. 116–260, § 342(2), added cl. (viii). Subsec. (a)(36)(E). Pub. L. 116–260, § 313(a)(1), sub- stituted ‘‘Except as provided in subparagraph (V), dur- ing’’ for ‘‘During’’ in introductory provisions. Subsec. (a)(36)(E)(i)(I)(aa)(AA). Pub. L. 116–260, § 336(a), substituted ‘‘except that an applicant that is a seasonal employer shall use the average total monthly payments for payroll for any 12-week period selected by the seasonal employer between February 15, 2019, and February 15, 2020’’ for ‘‘except that, in the case of an applicant that is seasonal employer, as determined by the Administrator, the average total monthly pay- ments for payroll shall be for the 12-week period begin- ning February 15, 2019, or at the election of the eligible recipient, March 1, 2019, and ending June 30, 2019’’. Subsec. (a)(36)(F)(i)(VIII) to (XI). Pub. L. 116–260, § 304(a), added subcls. (VIII) to (XI). Subsec. (a)(36)(F)(v). Pub. L. 116–260, § 337(a), sub- stituted ‘‘clause (i) or (iv)’’ for ‘‘clause (i)’’. Subsec. (a)(36)(F)(vi). Pub. L. 116–260, § 319, added cl. (vi). Subsec. (a)(36)(H). Pub. L. 116–260, § 338(a)(1), sub- stituted ‘‘With’’ for ‘‘During the covered period, with’’ in introductory provisions. Subsec. (a)(36)(J). Pub. L. 116–260, § 338(a)(2), sub- stituted ‘‘With’’ for ‘‘During the covered period, with’’ in introductory provisions. Subsec. (a)(36)(K). Pub. L. 116–260, § 304(b)(1)(C)(ii)(I), substituted ‘‘section 636m’’ for ‘‘section 9005’’ in intro- ductory provisions. Subsec. (a)(36)(K)(ii). Pub. L. 116–142, § 2(a), inserted ‘‘minimum maturity of 5 years and a’’ before ‘‘max- imum maturity’’. Subsec. (a)(36)(L). Pub. L. 116–260, § 339(b), inserted ‘‘, calculated on a non-compounding, non-adjustable basis’’ after ‘‘4 percent’’. Subsec. (a)(36)(M). Pub. L. 116–260, § 304(b)(1)(C)(ii)(II)(aa), substituted ‘‘section 636m’’ for ‘‘section 9005’’ in two places. Subsec. (a)(36)(M)(ii). Pub. L. 116–260, § 338(a)(3)(A), substituted ‘‘The’’ for ‘‘During the covered period, the’’ in introductory provisions. Subsec. (a)(36)(M)(ii)(II). Pub. L. 116–142, § 3(c)(1), sub- stituted ‘‘, including payment of principal, interest, and fees, until the date on which the amount of forgive- ness determined under section 9005 of this title is re- mitted to the lender.’’ for ‘‘for a period of not less than 6 months, including payment of principal, interest, and fees, and not more than 1 year.’’ Subsec. (a)(36)(M)(iii). Pub. L. 116–260, § 338(a)(3)(B), substituted ‘‘With’’ for ‘‘During the covered period, with’’. Pub. L. 116–142, § 3(c)(2), substituted ‘‘, including pay- ment of principal, interest, and fees, until the date on which the amount of forgiveness determined under sec- tion 9005 of this title is remitted to the lender.’’ for ‘‘for a period of not less than 6 months, including pay- ment of principal, interest, and fees, and not more than 1 year.’’ Subsec. (a)(36)(M)(v). Pub. L. 116–260, § 304(b)(1)(C)(ii)(II)(bb), substituted ‘‘section 636m(a)’’ for ‘‘section 9005(a)’’. Pub. L. 116–142, § 3(c)(3), added cl. (v). Subsec. (a)(36)(P)(i). Pub. L. 116–260, § 340(a)(1), amend- ed cl. (i) generally. Prior to amendment, text read as follows: ‘‘The Administrator shall reimburse a lender authorized to make a covered loan at a rate, based on the balance of the financing outstanding at the time of disbursement of the covered loan, of— ‘‘(I) 5 percent for loans of not more than $350,000; ‘‘(II) 3 percent for loans of more than $350,000 and less than $2,000,000; and ‘‘(III) 1 percent for loans of not less than $2,000,000.’’ Subsec. (a)(36)(P)(ii). Pub. L. 116–260, § 340(b)(1), in- serted at end ‘‘If an eligible recipient has knowingly re- tained an agent, such fees shall be paid by the eligible recipient and may not be paid out of the proceeds of a Page 853 TITLE 15—COMMERCE AND TRADE § 636 covered loan. A lender shall only be responsible for pay- ing fees to an agent for services for which the lender di- rectly contracts with the agent.’’ Subsec. (a)(36)(P)(iii). Pub. L. 116–260, § 340(a)(2), amended cl. (iii) generally. Prior to amendment, text read as follows: ‘‘A reimbursement described in clause (i) shall be made not later than 5 days after the dis- bursement of the covered loan.’’ Subsec. (a)(36)(Q). Pub. L. 116–260, § 341, which di- rected striking out ‘‘during the period beginning on January 31, 2020, and ending on the date on which cov- ered loans are made available’’, which appeared after ‘‘loan made under subsection (b)(2)’’, was executed by striking out text containing ‘‘2020 and’’ instead of ‘‘2020, and’’, to reflect the probable intent of Congress. Subsec. (a)(36)(S). Pub. L. 116–139, § 101(d)(2), added subpar. (S). Subsec. (a)(36)(T). Pub. L. 116–260, § 310(a)(1), added subpar. (T). Subsec. (a)(36)(U). Pub. L. 116–260, § 310(b), added sub- par. (U). Subsec. (a)(36)(V). Pub. L. 116–260, § 313(a)(2), added subpar. (V). Subsec. (a)(37). Pub. L. 116–260, § 311(a), added par. (37). Subsec. (b)(2). Pub. L. 116–136, § 1110(f)(7), inserted ‘‘: Provided further, That for purposes of subparagraph (D), the Administrator shall deem that such an emer- gency affects each State or subdivision thereof (includ- ing counties), and that each State or subdivision has sufficient economic damage to small business concerns to qualify for assistance under this paragraph and the Administrator shall accept applications for such assist- ance immediately’’ before period at end of concluding provisions. Subsec. (b)(2)(D). Pub. L. 116–136, § 1110(f)(1)–(3), (5), added subpar. (D). Former subpar. (D) redesignated (E). Subsec. (b)(2)(E). Pub. L. 116–136, § 1110(f)(4), (6), redes- ignated subpar. (D) as (E) and substituted ‘‘(C), or (D)’’ for ‘‘or (C)’’; ‘‘disaster or emergency declaration’’ for ‘‘disaster declaration’’ in two places; ‘‘disaster or emer- gency has occurred’’ for ‘‘disaster has occurred’’; ‘‘such disaster or emergency’’ for ‘‘such disaster’’; and ‘‘disaster- or emergency-stricken’’ for ‘‘disaster strick- en’’. Subsec. (m)(3)(C). Pub. L. 116–260, § 329(a)(2), sub- stituted ‘‘$7,000,000’’ for ‘‘$10,000,000’’ and ‘‘$3,000,000’’ for ‘‘$4,500,000’’. Pub. L. 116–260, § 329(a)(1)(A), substituted ‘‘$10,000,000 (in the aggregate)’’ for ‘‘and $6,000,000’’ and inserted be- fore period at end ‘‘, and $4,500,000 in any of those re- maining years’’. Subsec. (m)(4)(A). Pub. L. 116–260, § 329(a)(1)(B)(i), sub- stituted ‘‘subparagraphs (C) and (G)’’ for ‘‘subparagraph (C)’’ in two places. Subsec. (m)(4)(C)(i). Pub. L. 116–260, § 329(a)(1)(B)(ii), amended cl. (i) generally. Prior to amendment, text read as follows: ‘‘Each intermediary that has a port- folio of loans made under this subsection that averages not more than $10,000 during the period of the intermediary’s participation in the program shall be el- igible to receive a grant equal to 5 percent of the total outstanding balance of loans made to the intermediary under this subsection, in addition to grants made under subparagraph (A).’’ Subsec. (m)(4)(G). Pub. L. 116–260, § 329(a)(1)(B)(iii), added subpar. (G). Subsec. (m)(11)(C)(ii). Pub. L. 116–260, § 329(a)(1)(C)(i), which directed amendment of cl. (ii) by striking all after the semicolon and inserting ‘‘and’’, could not be executed because a semicolon did not appear. Subsec. (m)(11)(D). Pub. L. 116–260, § 329(a)(1)(C)(ii), which directed amendment of par. (11) ‘‘by striking all after subparagraph (C) and inserting’’ subpar. (D), was executed by adding subpar. (D) after subpar. (C), to re- flect the probable intent of Congress. 2019—Subsec. (b)(3)(A)(i), (ii). Pub. L. 116–92, § 877(a)(1)(A), added cl. (i), redesignated former cl. (i) as (ii) and inserted ‘‘and’’ at end, and struck out former cl. (ii) which defined the term ‘‘period of military con- flict’’. Subsec. (b)(3)(B). Pub. L. 116–92, § 877(a)(1)(B), sub- stituted ‘‘being ordered to perform active service for a period of more than 30 consecutive days’’ for ‘‘being or- dered to active military duty during a period of mili- tary conflict’’. Subsec. (b)(3)(C). Pub. L. 116–92, § 877(a)(1)(C), sub- stituted ‘‘active service’’ for ‘‘active duty’’ in two places. Subsec. (b)(3)(G)(ii)(II). Pub. L. 116–92, § 877(a)(1)(D), substituted ‘‘active service’’ for ‘‘active duty’’. Subsec. (n). Pub. L. 116–92, § 877(a)(2), substituted ‘‘ac- tive service’’ for ‘‘active duty’’ in heading and in two places in each of pars. (1)(D) and (2)(B), and in par. (1), added subpar. (A), redesignated former subpars. (A) and (B) as (B) and (C), respectively, substituted ‘‘ordered to perform active service for a period of more than 30 con- secutive days’’ for ‘‘ordered to active duty during a pe- riod of military conflict’’ in subpar. (B) as redesig- nated, and struck out former subpar. (C) which defined the term ‘‘period of military conflict’’. 2018—Subsec. (a)(1)(A)(i). Pub. L. 115–189 inserted ‘‘The Administrator has the authority to direct, and conduct oversight for, the methods by which lenders determine whether a borrower is able to obtain credit elsewhere.’’ before ‘‘No financial assistance’’. Subsec. (a)(15)(A). Pub. L. 115–232, § 862(b)(1)(A)(i), sub- stituted ‘‘this subsection—’’ for ‘‘this subsection’’, in- serted cl. (i) designation before ‘‘to qualified employee trusts’’ and ‘‘, and for any transaction costs associated with purchasing,’’ after ‘‘purchasing’’, substituted ‘‘; and’’ for period at end, and added cl. (ii). Subsec. (a)(15)(B). Pub. L. 115–232, § 862(b)(1)(A)(ii)(I), inserted ‘‘or by the small business concern’’ after ‘‘the trustee of such trust’’ in introductory provisions. Subsec. (a)(15)(B)(iv). Pub. L. 115–232, § 862(b)(1)(A)(ii)(II)–(IV), added cl. (iv). Subsec. (a)(15)(E). Pub. L. 115–232, § 862(f), substituted ‘‘Administration, which shall include—’’ for ‘‘Adminis- tration.’’ and added cls. (i) to (iii). Subsec. (a)(15)(F), (G). Pub. L. 115–232, § 862(b)(1)(A)(iii), added subpars. (F) and (G). Subsec. (a)(29). Pub. L. 115–370 redesignated introduc- tory provisions as subpar. (A) and inserted heading, re- designated former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A) and realigned margins, in cl. (i), substituted ‘‘, if such loan is in an amount greater than the Federal banking regulator appraisal threshold’’ for ‘‘for more than $250,000’’, in cl. (ii), sub- stituted ‘‘, if such loan is in an amount equal to or less than the Federal banking regulator appraisal thresh- old’’ for ‘‘$250,000 or less’’, and added subpar. (B). Subsec. (a)(35). Pub. L. 115–232, § 862(b)(1)(B), added par. (35). Subsec. (j)(13)(F)(iii). Pub. L. 115–232, § 861(c), added cl. (iii). Subsec. (m)(3)(C). Pub. L. 115–232, § 853(b), substituted ‘‘$6,000,000’’ for ‘‘$5,000,000’’. Subsec. (m)(4)(E). Pub. L. 115–141 substituted ‘‘50 per- cent’’ for ‘‘25 percent’’ in cls. (i) and (ii). 2015—Subsec. (a)(1)(A). Pub. L. 114–38, § 4(b)(1), des- ignated existing provisions as cl. (i), inserted cl. (i) heading, and added cl. (ii) Subsec. (a)(1)(C). Pub. L. 114–38, § 4(b)(2), added sub- par. (C). Subsec. (a)(31)(A). Pub. L. 114–88, § 2106(1), added cl. (i) and redesignated former cls. (i) to (iii) as (ii) to (iv), re- spectively. Subsec. (a)(31)(G). Pub. L. 114–38, § 2, added subpar. (G). Subsec. (a)(31)(H). Pub. L. 114–88, § 2106(2), added sub- par. (H). Subsec. (b)(1)(A). Pub. L. 114–88, § 1102, substituted ‘‘mitigating measures, including—’’ and text of cls. (i) to (iii) for ‘‘mitigating measures, including, but not limited to, construction of retaining walls and sea walls, grading and contouring land, relocating utilities and modifying structures’’. Subsec. (b)(10). Pub. L. 114–88, § 1103, added par. (10). Subsec. (b)(11). Pub. L. 114–88, § 1104, added par. (11). Subsec. (b)(12). Pub. L. 114–88, § 2101, added par. (12). Page 854 TITLE 15—COMMERCE AND TRADE § 636 Subsec. (b)(13). Pub. L. 114–88, § 2107, added par. (13). Subsec. (b)(14). Pub. L. 114–88, § 2201, added par. (14). Subsec. (b)(15). Pub. L. 114–88, § 2301(a), added par. (15). Subsec. (d)(6). Pub. L. 114–88, § 2109, inserted ‘‘: Provided further, That the Administrator, in obtain- ing the best available collateral for a loan of not more than $200,000 under paragraph (1) or (2) of subsection (b) relating to damage to or destruction of the property of, or economic injury to, a small business concern, shall not require the owner of the small business concern to use the primary residence of the owner as collateral if the Administrator determines that the owner has other assets of equal quality and with a value equal to or greater than the amount of the loan that could be used as collateral for the loan: Provided further, That noth- ing in the preceding proviso may be construed to re- duce the amount of collateral required by the Adminis- trator in connection with a loan described in the pre- ceding proviso or to modify the standards used to evaluate the quality (rather than the type) of such col- lateral’’ after ‘‘which are made under paragraph (1) of subsection (b)’’. Pub. L. 114–88, § 2102(b), substituted ‘‘$14,000’’ for ‘‘$25,000’’ and ‘‘in the event of a major disaster’’ for ‘‘in the event of a disaster’’. Pub. L. 114–88, § 2102(a), substituted ‘‘$25,000’’ for ‘‘$14,000’’ and ‘‘in the event of a disaster’’ for ‘‘in the event of a major disaster’’. Subsec. (d)(8). Pub. L. 114–88, § 1101, added par. (8). Subsec. (j)(10)(D)(i). Pub. L. 114–92 struck out ‘‘The Business Opportunity Specialist shall have a Level I Federal Acquisition Certification in Contracting (or any successor certification) or the equivalent Depart- ment of Defense certification, except that a Business Opportunity Specialist serving at the time of the date of enactment of the National Defense Authorization Act for Fiscal Year 2013 may continue to serve as a Business Opportunity Specialist for a period of 5 years beginning on that date of enactment without such a certification.’’ after ‘‘to assist such Program Partici- pant.’’ Subsec. (j)(13)(F). Pub. L. 114–88, § 2105, designated ex- isting provisions as cl. (i) and added cl. (ii). 2014—Subsec. (j)(13)(E). Pub. L. 113–128 substituted ‘‘an institution eligible to provide skills training or up- grading under title I of the Workforce Innovation and Opportunity Act’’ for ‘‘an institution eligible to pro- vide skills training or upgrading under title I of the Workforce Investment Act of 1998’’. 2013—Subsec. (j)(10)(D)(i). Pub. L. 112–239 inserted ‘‘The Business Opportunity Specialist shall have a Level I Federal Acquisition Certification in Con- tracting (or any successor certification) or the equiva- lent Department of Defense certification, except that a Business Opportunity Specialist serving at the time of the date of enactment of the National Defense Author- ization Act for Fiscal Year 2013 may continue to serve as a Business Opportunity Specialist for a period of 5 years beginning on that date of enactment without such a certification.’’ after ‘‘to assist such Program Participant.’’ 2011—Subsec. (d)(5)(D). Pub. L. 112–74 substituted ‘‘7 years’’ for ‘‘three years’’. 2010—Subsec. (a)(2)(A). Pub. L. 111–240, § 1206(a)(2)(A), substituted ‘‘subparagraphs (B), (D), and (E)’’ for ‘‘sub- paragraph (B)’’ in introductory provisions. Subsec. (a)(2)(A)(i). Pub. L. 111–240, § 1111(b)(1)(A), sub- stituted ‘‘75 percent’’ for ‘‘90 percent’’. Pub. L. 111–240, § 1111(a)(1)(A), substituted ‘‘90 per- cent’’ for ‘‘75 percent’’. Subsec. (a)(2)(A)(ii). Pub. L. 111–240, § 1111(b)(1)(B), substituted ‘‘85 percent’’ for ‘‘90 percent’’. Pub. L. 111–240, § 1111(a)(1)(B), substituted ‘‘90 per- cent’’ for ‘‘85 percent’’. Subsec. (a)(2)(C)(ii), (iii). Pub. L. 111–240, § 1206(e), added cl. (ii) and redesignated former cl. (ii) as (iii). Subsec. (a)(2)(D). Pub. L. 111–240, § 1206(d)(1), sub- stituted ‘‘be’’ for ‘‘not exceed’’. Pub. L. 111–240, § 1206(a)(2)(B), substituted ‘‘In’’ for ‘‘Notwithstanding subparagraph (A), in’’. Subsec. (a)(2)(E). Pub. L. 111–240, § 1206(a)(2)(C), added subpar. (E). Subsec. (a)(3)(A). Pub. L. 111–240, § 1111(b)(2), sub- stituted ‘‘$3,750,000’’ for ‘‘$4,500,000’’. Pub. L. 111–240, § 1111(a)(2), substituted ‘‘$4,500,000 (or if the gross loan amount would exceed $5,000,000’’ for ‘‘$1,500,000 (or if the gross loan amount would exceed $2,000,000’’. Subsec. (a)(3)(B). Pub. L. 111–240, § 1206(a)(1), sub- stituted ‘‘$4,500,000 (or if the gross loan amount would exceed $5,000,000), of which not more than $4,000,000’’ for ‘‘$1,750,000, of which not more than $1,250,000’’. Subsec. (a)(14). Pub. L. 111–240, § 1206(d)(2), inserted par. (14) and subpar. (A) headings, substituted ‘‘The Ad- ministrator’’ for ‘‘The Administration’’ in subpar. (A), added subpar. (B), redesignated former subpars. (B) and (C) as (C) and (D), respectively, and inserted headings, and substituted ‘‘The Administrator’’ for ‘‘The Admin- istration’’ in subpar. (D) as redesignated. Subsec. (a)(16)(A). Pub. L. 111–240, § 1206(b)(1), struck out ‘‘in’’ before dash at end of introductory provisions. Subsec. (a)(16)(A)(i). Pub. L. 111–240, § 1206(b)(2), in- serted ‘‘in’’ after cl. (i) designation and struck out ‘‘or’’ at end. Subsec. (a)(16)(A)(ii). Pub. L. 111–240, § 1206(b)(3), in- serted ‘‘in’’ after cl. (ii) designation and substituted ‘‘, including any debt that qualifies for refinancing under any other provision of this subsection; or’’ for pe- riod at end. Subsec. (a)(16)(A)(iii). Pub. L. 111–240, § 1206(b)(4), added cl. (iii). Subsec. (a)(16)(B). Pub. L. 111–240, § 1206(c), designated existing provisions as cl. (i), inserted cl. (i) heading, substituted ‘‘Except as provided in clause (ii), each loan’’ for ‘‘Each loan’’, and added cl. (ii). Subsec. (a)(16)(F). Pub. L. 111–240, § 1206(g), added sub- par. (F). Subsec. (a)(31)(D). Pub. L. 111–240, § 1135(b), sub- stituted ‘‘$350,000’’ for ‘‘$1,000,000’’. Pub. L. 111–240, § 1135(a), substituted ‘‘$1,000,000’’ for ‘‘$350,000’’. Subsec. (a)(32), (33). Pub. L. 111–240, § 1133(a)(1), redes- ignated par. (32), relating to increased veteran partici- pation program, as (33). Subsec. (a)(34). Pub. L. 111–240, § 1133(b), redesignated par. (35) as (34) and struck out former par. (34) which re- lated to floor plan financing program. Pub. L. 111–240, § 1133(a)(2), added par. (34). Subsec. (a)(35). Pub. L. 111–240, § 1206(f), added par. (35). Pub. L. 111–240, § 1133(b)(2), redesignated par. (35) as (34). Subsec. (l). Pub. L. 111–240, § 1131(a), added subsec. (l) and struck out former subsec. (l) which read ‘‘[RE- SERVED]’’. Subsec. (m)(1)(B)(iii). Pub. L. 111–240, § 1113(1), sub- stituted ‘‘$50,000’’ for ‘‘$35,000’’. Subsec. (m)(3)(B). Pub. L. 111–240, § 1401(c)(1)(A), struck out cl. (i) designation and heading, substituted ‘‘As’’ for ‘‘Subject to clause (ii), as’’, and struck out cl. (ii) relating to waiver of non-Federal share. Pub. L. 111–240, § 1401(a)(1), designated existing provi- sions as cl. (i) and inserted cl. (i) heading, substituted ‘‘Subject to clause (ii), as a condition’’ for ‘‘As a condi- tion’’ and ‘‘the Administrator’’ for ‘‘the Administra- tion’’, and added cl. (ii). Subsec. (m)(3)(C). Pub. L. 111–240, § 1113(2)(A), sub- stituted ‘‘$5,000,000’’ for ‘‘$3,500,000’’. Subsec. (m)(3)(E). Pub. L. 111–240, § 1113(2)(B), sub- stituted ‘‘$50,000’’ for ‘‘$35,000’’ in two places. Subsec. (m)(4)(B). Pub. L. 111–240, § 1401(c)(1)(B), struck out cl. (i) designation and heading, substituted ‘‘As’’ for ‘‘Subject to clause (ii), as’’, and struck out cl. (ii) relating to waiver of non-Federal share. Pub. L. 111–240, § 1401(a)(2), designated existing provi- sions as cl. (i), inserted cl. (i) heading, substituted ‘‘Subject to clause (ii), as a condition of a grant made under subparagraph (A), the Administrator shall re- quire’’ for ‘‘As a condition of any grant made under subparagraph (A), the Administration shall require’’, and added cl. (ii). Page 855 TITLE 15—COMMERCE AND TRADE § 636 Subsec. (m)(11)(B). Pub. L. 111–240, § 1113(3), sub- stituted ‘‘$50,000’’ for ‘‘$35,000’’. 2008—Subsec. (a)(32). Pub. L. 110–186, § 208, added par. (32) relating to increased veteran participation pro- gram. Subsec. (b). Pub. L. 110–246, § 12078(c)(2), in concluding provisions substituted ‘‘paragraphs (1) and (2)’’ for ‘‘paragraphs (1), (2), and (4)’’ and ‘‘paragraph (1) (2)’’ for ‘‘paragraph (1), (2), or (4)’’. Pub. L. 110–246, § 12078(c)(1), substituted ‘‘the Admin- istration’’ for ‘‘the, Administration’’ in introductory provisions. Pub. L. 110–246, § 12068(b)(2)(B), which directed amend- ment of ‘‘the undesignated matter following paragraph (3)’’ by substituting ‘‘Notwithstanding any other provi- sion of law, and except as provided in subsection (d), the interest rate on the Administration’s share of any loan made under subsection (b)’’ for ‘‘Notwithstanding the provisions of any other law the interest rate on the Administration’s share of any loan made under sub- section (b) except as provided in subsection (c),’’ was executed by making the substitution for ‘‘Notwith- standing the provisions of any other law, the interest rate on the Administration’s share of any loan made under subsection (b), except as provided in subsection (c),’’ in concluding provisions after par. (6), to reflect the probable intent of Congress and the addition of pars. (4) to (6) by Pub. L. 110–246, §§ 12063(a), 12066(a). See below. Pub. L. 110–246, § 12068(b)(2)(A), which directed amend- ment of ‘‘the undesignated matter following paragraph (3)’’ by substituting ‘‘That the provisions of paragraph (1) of subsection (d)’’ for ‘‘That the provisions of para- graph (1) of subsection (c)’’, was executed by making the substitution in concluding provisions after par. (6), to reflect the probable intent of Congress and the addi- tion of pars. (4) to (6) by Pub. L. 110–246, §§ 12063(a), 12066(a). See below. Subsec. (b)(1)(A). Pub. L. 110–246, § 12078(b)(1), inserted ‘‘of the aggregate costs of such damage or destruction (whether or not compensated for by insurance or other- wise)’’ after ‘‘20 per centum’’. Subsec. (b)(2). Pub. L. 110–246, § 12061(a)(1), in intro- ductory provisions inserted ‘‘, private nonprofit organi- zation,’’ after ‘‘small business concern’’ and ‘‘, the or- ganization,’’ after ‘‘the concern’’. Subsec. (b)(2)(A). Pub. L. 110–246, § 12063(c)(2), sub- stituted ‘‘Robert T. Stafford Disaster Relief and Emer- gency Assistance Act (42 U.S.C. 5121 et seq.)’’ for ‘‘Dis- aster Relief and Emergency Assistance Act’’. Subsec. (b)(2)(D). Pub. L. 110–246, § 12061(a)(2), inserted ‘‘, private nonprofit organizations,’’ after ‘‘small busi- ness concerns’’. Subsec. (b)(3)(C). Pub. L. 110–186, § 201(a), substituted ‘‘1 year’’ for ‘‘90 days’’ and inserted at end ‘‘The Admin- istrator may, when appropriate (as determined by the Administrator), extend the ending date specified in the preceding sentence by not more than 1 year.’’ Subsec. (b)(3)(E). Pub. L. 110–246, § 12077, inserted ‘‘, or have become due to changed economic circumstances,’’ after ‘‘constitutes’’. Subsec. (b)(3)(G), (H). Pub. L. 110–186, §§ 203, 204, added subpars. (G) and (H). Subsec. (b)(4), (5). Pub. L. 110–246, § 12063(a), added pars. (4) and (5). Subsec. (b)(6). Pub. L. 110–246, § 12066(a), added par. (6). Subsec. (b)(7). Pub. L. 110–246, § 12074(a), added par. (7). Subsec. (b)(8). Pub. L. 110–246, § 12078(a), added par. (8). Subsec. (b)(9). Pub. L. 110–246, § 12081, added par. (9). Subsec. (b)(9)(C), (D). Pub. L. 110–246, § 12082, added subpars. (C) and (D). Subsec. (c). Pub. L. 110–246, § 12083(a), added subsec. (c). Pub. L. 110–246, § 12068(a)(1), redesignated subsec. (c) as (d). Subsec. (c)(5)(C). Pub. L. 110–246, § 12061(b), inserted ‘‘, private nonprofit organization,’’ after ‘‘business’’. Subsec. (c)(6). Pub. L. 110–246, § 12065, substituted ‘‘$14,000 or less (or such higher amount as the Adminis- trator determines appropriate in the event of a major disaster)’’ for ‘‘$10,000 or less’’. Subsecs. (d) to (f). Pub. L. 110–246, § 12068(a), redesig- nated subsecs. (c) and (d) as (d) and (e), respectively, and added subsec. (f). Subsec. (g). Pub. L. 110–246, § 12070, added subsec. (g). 2007—Subsec. (a)(31)(F). Pub. L. 110–140, § 1201, added subpar. (F). Subsec. (a)(32). Pub. L. 110–140, § 1202, added par. (32). 2006—Subsec. (b)(2). Pub. L. 109–163, § 845(a)(2)(A), in introductory provisions, inserted ‘‘(including drought), with respect to both farm-related and nonfarm-related small business concerns,’’ before ‘‘if the Administra- tion’’. Subsec. (b)(2)(B). Pub. L. 109–163, § 845(a)(2)(B), sub- stituted ‘‘section 1961 of title 7, in which case, assist- ance under this paragraph may be provided to farm-re- lated and nonfarm-related small business concerns, subject to the other applicable requirements of this paragraph’’ for ‘‘the Consolidated Farmers Home Ad- ministration Act of 1961 (7 U.S.C. 1961)’’. Subsec. (b)(2)(D). Pub. L. 109–163, § 845(c), substituted ‘‘Not later than 30 days after the date of receipt of such certification by a Governor of a State, the Administra- tion shall respond in writing to that Governor on its determination and the reasons therefore, and may’’ for ‘‘Upon receipt of such certification, the Administration may’’. 2004—Subsec. (a)(3)(A). Pub. L. 108–447, § 103(a), sub- stituted ‘‘$1,500,000’’ for ‘‘$1,000,000’’. Subsec. (a)(3)(B). Pub. L. 108–447, § 107(b), substituted ‘‘$1,750,000’’ for ‘‘$1,250,000’’ and ‘‘$1,250,000’’ for ‘‘$750,000’’. Subsec. (a)(16). Pub. L. 108–447, § 107(a), inserted head- ing and amended par. (16) generally. Prior to amend- ment, par. (16) provided that the Administration could guarantee loans to assist any eligible small business concern in an industry engaged in or adversely affected by international trade in the financing of the acquisi- tion, construction, renovation, modernization, im- provement or expansion of productive facilities or equipment to be used in the United States in the pro- duction of goods and services involved in international trade. Subsec. (a)(18)(A). Pub. L. 108–447, § 102(a), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: ‘‘With respect to each loan guaranteed under this subsection (other than a loan that is repayable in 1 year or less), the Adminis- tration shall collect a guarantee fee, which shall be payable by the participating lender, and may be charged to the borrower, as follows: ‘‘(i) A guarantee fee equal to 2 percent of the de- ferred participation share of a total loan amount that is not more than $150,000. ‘‘(ii) A guarantee fee equal to 3 percent of the de- ferred participation share of a total loan amount that is more than $150,000, but not more than $700,000. ‘‘(iii) A guarantee fee equal to 3.5 percent of the de- ferred participation share of a total loan amount that is more than $700,000.’’ Subsec. (a)(18)(C). Pub. L. 108–447, § 102(b), struck out heading and text of subpar. (C). Text read as follows: ‘‘With respect to loans approved during the 2-year pe- riod beginning on October 1, 2002, the guarantee fee under subparagraph (A) shall be as follows: ‘‘(i) A guarantee fee equal to 1 percent of the de- ferred participation share of a total loan amount that is not more than $150,000. ‘‘(ii) A guarantee fee equal to 2.5 percent of the de- ferred participation share of a total loan amount that is more than $150,000, but not more than $700,000. ‘‘(iii) A guarantee fee equal to 3.5 percent of the de- ferred participation share of a total loan amount that is more than $700,000.’’ Subsec. (a)(23). Pub. L. 108–447, § 102(c)(1), substituted ‘‘Yearly’’ for ‘‘Annual’’ in heading. Subsec. (a)(23)(A). Pub. L. 108–447, § 102(c)(2), added subpar. (A) and struck out heading and text of former subpar. (A). Text read as follows: ‘‘With respect to each loan guaranteed under this subsection, the Administra- tion shall, in accordance with such terms and proce- Page 856 TITLE 15—COMMERCE AND TRADE § 636 dures as the Administration shall establish by regula- tion, assess and collect an annual fee in an amount equal to 0.5 percent of the outstanding balance of the deferred participation share of the loan. With respect to loans approved during the 2-year period beginning on October 1, 2002, the annual fee assessed and collected under the preceding sentence shall be in an amount equal to 0.25 percent of the outstanding balance of the deferred participation share of the loan.’’ Subsec. (a)(23)(B). Pub. L. 108–447, § 102(c)(3), sub- stituted ‘‘yearly’’ for ‘‘annual’’. Subsec. (a)(23)(C). Pub. L. 108–447, § 102(c)(4), added subpar. (C). Subsec. (a)(31). Pub. L. 108–447, § 101(a), added par. (31). 2001—Subsec. (a)(18)(C). Pub. L. 107–100, § 6(a)(1), added subpar. (C). Subsec. (a)(23)(A). Pub. L. 107–100, § 6(a)(2), inserted at end ‘‘With respect to loans approved during the 2-year period beginning on October 1, 2002, the annual fee as- sessed and collected under the preceding sentence shall be in an amount equal to 0.25 percent of the out- standing balance of the deferred participation share of the loan.’’ 2000—Subsec. (a)(2)(A)(i). Pub. L. 106–554, § 1(a)(9) [title II, § 202(1)], substituted ‘‘$150,000’’ for ‘‘$100,000’’. Subsec. (a)(2)(A)(ii). Pub. L. 106–554, § 1(a)(9) [title II, § 202(2)], substituted ‘‘85 percent’’ for ‘‘80 percent’’ and ‘‘$150,000’’ for ‘‘$100,000’’. Subsec. (a)(3)(A). Pub. L. 106–554, § 1(a)(9) [title II, § 203], substituted ‘‘$1,000,000 (or if the gross loan amount would exceed $2,000,000),’’ for ‘‘$750,000,’’. Subsec. (a)(4). Pub. L. 106–554, § 1(a)(9) [title II, § 205(1)], inserted heading and struck out former head- ing ‘‘Interest rates and fees.—’’. Subsec. (a)(4)(B)(iii). Pub. L. 106–554, § 1(a)(9) [title II, § 204], added cl. (iii). Subsec. (a)(4)(C). Pub. L. 106–554, § 1(a)(9) [title II, § 205(2)], added subpar. (C). Subsec. (a)(18). Pub. L. 106–554, § 1(a)(9) [title II, § 206], amended heading and text of par. (18) generally, sub- stituting present provisions for provisions which had authorized guarantee fee in an amount equal to sum of 3 percent of amount of deferred participation share of loan that was less than or equal to $250,000, if deferred participation share of loan exceeded $250,000, plus 3.5 percent of difference between $500,000 or total deferred participation share of loan, whichever was less, and $250,000, plus, if deferred participation share of loan ex- ceeded $500,000, 3.875 percent of difference between total deferred participation share of loan and $500,000, and set forth provisions relating to exception for certain loans. Subsec. (a)(28). Pub. L. 106–554, § 1(a)(9) [title II, § 207], added par. (28). Subsec. (a)(29). Pub. L. 106–554, § 1(a)(9) [title II, § 208(a)], added par. (29). Subsec. (a)(30). Pub. L. 106–554, § 1(a)(9) [title VIII, § 802(a)], added par. (30). Subsec. (m)(1)(A)(iii)(I). Pub. L. 106–554, § 1(a)(9) [title II, § 210(a)(2)], substituted ‘‘$10,000’’ for ‘‘$7,500’’. Subsec. (m)(1)(B)(iii). Pub. L. 106–554, § 1(a)(9) [title II, § 210(a)(1)], substituted ‘‘$35,000’’ for ‘‘$25,000’’. Subsec. (m)(3)(A)(ii). Pub. L. 106–554, § 1(a)(9) [title II, § 210(a)(2)], substituted ‘‘$10,000’’ for ‘‘$7,500’’. Subsec. (m)(3)(E). Pub. L. 106–554, § 1(a)(9) [title II, § 210(a)(1), (3)], substituted ‘‘$20,000’’ for ‘‘$15,000’’ and ‘‘$35,000’’ for ‘‘$25,000’’ in two places. Subsec. (m)(4)(C)(i). Pub. L. 106–554, § 1(a)(9) [title II, § 210(a)(2)], which directed the amendment of subsec. (m)(4)(C)(i)(II) by substituting ‘‘$10,000’’ for ‘‘$7,500’’, was executed by making the substitution in subsec. (m)(4)(C)(i) to reflect the probable intent of Congress and the termination of the temporary amendment by Pub. L. 103–403, § 208(a)(2), (c). See 1994 Amendment note and Effective and Termination Dates of 1994 Amend- ment note below. Subsec. (m)(5)(A). Pub. L. 106–554, § 1(a)(9) [title II, § 210(a)(4)], substituted ‘‘55 grants’’ for ‘‘25 grants’’ and ‘‘$200,000’’ for ‘‘$125,000’’. Subsec. (m)(6)(B). Pub. L. 106–554, § 1(a)(9) [title II, § 210(a)(5)], substituted ‘‘$15,000’’ for ‘‘$10,000’’. Subsec. (m)(7)(A). Pub. L. 106–554, § 1(a)(9) [title II, § 210(a)(6)], added subpar. (A) and struck out heading and text of former subpar. (A). Text read as follows: ‘‘During the program authorized by this subsection, the Administration may fund, on a competitive basis, not more than 200 microloan programs.’’ Subsec. (m)(11)(B). Pub. L. 106–554, § 1(a)(9) [title II, § 210(b)], substituted ‘‘$35,000’’ for ‘‘$25,000’’. 1999—Subsec. (a)(10). Pub. L. 106–50, § 401(b), inserted ‘‘guaranteed’’ after ‘‘provide’’ and ‘‘, including service- disabled veterans,’’ after ‘‘handicapped individual’’. Subsec. (a)(21)(A)(ii). Pub. L. 106–50, § 404, inserted ‘‘or a veteran’’ after ‘‘qualified individual’’. Subsec. (a)(27). Pub. L. 106–8, § 3(a), (c), temporarily added par. (27) relating to Year 2000 computer problem program. See Effective and Termination Dates of 1999 Amendments note below. Subsec. (b)(1)(C). Pub. L. 106–24, § 1(a), added subpar. (C). Subsec. (b)(3). Pub. L. 106–50, § 402(b), added par. (3). Subsec. (m)(1)(A)(i). Pub. L. 106–50, § 403, inserted ‘‘veteran (within the meaning of such term under sec- tion 632(q) of this title),’’ after ‘‘low-income,’’. Subsec. (m)(3)(D). Pub. L. 106–22, § 3, struck out sub- par. (D) heading and amended text generally. Prior to amendment, text read as follows: ‘‘The Administration shall, by regulation, require each intermediary to es- tablish a loan loss reserve fund, and to maintain such reserve fund until all obligations owed to the Adminis- tration under this subsection are repaid. The Adminis- tration shall require the loan loss reserve fund to be maintained— ‘‘(i) during the initial 5 years of the intermediary’s participation in the program under this subsection, at a level equal to not more than 15 percent of the outstanding balance of the notes receivable owed to the intermediary; and ‘‘(ii) in each year of participation thereafter, at a level equal to not more than the greater of— ‘‘(I) 2 times an amount reflecting the total losses of the intermediary as a result of participation in the program under this subsection, as determined by the Administrator on a case-by-case basis; or ‘‘(II) 10 percent of the outstanding balance of the notes receivable owed to the intermediary.’’ Subsec. (m)(7)(B). Pub. L. 106–22, § 2(1), added subpar. (B) and struck out heading and text of former subpar. (B). Text read as follows: ‘‘During any fiscal year, a State shall not receive new loan funds from the Admin- istration that exceed 125 percent of the State’s pro rata share of the microloan program authorization during such fiscal year, such share to be based on the popu- lation of the State, as compared to the total population of the United States. If, however, at the beginning of the fourth quarter of a fiscal year the Administration determines that a portion of appropriated microloan funds are unlikely to be awarded during that year, the Administration may make additional funds available to a State in excess of 125 percent of the pro rata share of that State.’’ Subsec. (m)(8). Pub. L. 106–22, § 2(2), inserted ‘‘and providing funding to intermediaries’’ after ‘‘program applicants’’ and ‘‘and provide funding to’’ after ‘‘shall select’’. Subsec. (n). Pub. L. 106–50, § 402(a), added subsec. (n). 1998—Subsec. (j)(13)(E). Pub. L. 105–277, § 101(f) [title VIII, § 405(f)(9)], struck out ‘‘the Job Training Partner- ship Act or’’ before ‘‘title I of the Workforce’’ in intro- ductory provisions. Pub. L. 105–277, § 101(f) [title VIII, § 405(d)(10)], sub- stituted ‘‘the Job Training Partnership Act or title I of the Workforce Investment Act of 1998’’ for ‘‘the Job Training Partnership Act (29 U.S.C. 1501 et seq.)’’. 1997—Subsec. (a). Pub. L. 105–135, § 231(1), inserted heading. Subsec. (a)(1). Pub. L. 105–135, § 231(2), inserted head- ing, designated existing provisions as subpar. (A) and inserted heading, and added subpar. (B). Subsec. (a)(8). Pub. L. 105–135, § 706, added par. (8). Subsec. (m). Pub. L. 105–135, § 201(c), struck out ‘‘Demonstration’’ and ‘‘demonstration’’ wherever ap- pearing in heading and text. Page 857 TITLE 15—COMMERCE AND TRADE § 636 Subsec. (m)(1)(A)(iv). Pub. L. 105–135, § 202(a)(1), added cl. (iv). Subsec. (m)(3)(C). Pub. L. 105–135, § 201(a), substituted ‘‘$3,500,000’’ for ‘‘$2,500,000’’. Subsec. (m)(3)(D)(i), (ii). Pub. L. 105–135, § 201(b), added cls. (i) and (ii) and struck out former cls. (i) and (ii) which read as follows: ‘‘(i) in the first year of the intermediary’s participa- tion in the demonstration program, at a level equal to not more than 15 percent of the outstanding balance of the notes receivable owed to the intermediary; and ‘‘(ii) in each year of participation thereafter, at a level reflecting the intermediary’s total losses as a re- sult of participation in the demonstration program, as determined by the Administration on a case-by-case basis, but in no case shall the required level exceed 15 percent of the outstanding balance of the notes receiv- able owed to the intermediary under the program.’’ Subsec. (m)(4)(E). Pub. L. 105–135, § 201(d)(1), des- ignated existing provisions as cl. (i), inserted heading, substituted ‘‘25 percent’’ for ‘‘15 percent’’, and added cl. (ii). Subsec. (m)(4)(F). Pub. L. 105–135, § 202(a)(2), added subpar. (F). Subsec. (m)(5)(A). Pub. L. 105–135, § 201(d)(2), struck out ‘‘in each of the 5 years of the demonstration pro- gram established under this subsection,’’ after ‘‘re- quirements of subparagraph (B),’’ and substituted ‘‘an- nually’’ for ‘‘for terms of up to 5 years’’. Subsec. (m)(6)(E). Pub. L. 105–135, § 202(a)(3), added subpar. (E). Subsec. (m)(9). Pub. L. 105–135, § 202(a)(4)(A), sub- stituted ‘‘Grants for management, marketing, tech- nical assistance, and related services’’ for ‘‘Technical assistance for intermediaries’’ in heading. Subsec. (m)(9)(C). Pub. L. 105–135, § 202(a)(4)(B), added subpar. (C). Subsec. (m)(12). Pub. L. 105–135, § 201(c)(4), substituted ‘‘1998 through 2000’’ for ‘‘1995 through 1997’’. Subsec. (m)(13). Pub. L. 105–135, § 202(a)(5), added par. (13). 1996—Subsec. (a)(2)(C)(ii)(II). Pub. L. 104–208, § 103(a), amended subcl. (II) generally. Prior to amendment, subcl. (II) read as follows: ‘‘authority to service and liq- uidate such loans.’’ Subsec. (a)(2)(D). Pub. L. 104–208, § 111, added subpar. (D). Subsec. (a)(4). Pub. L. 104–208, § 103(f), inserted par. (4) heading, designated existing text as subpar. (A) and in- serted heading, and added subpar. (B). Subsec. (a)(19)(C). Pub. L. 104–208, § 103(b), added sub- par. (C). Subsec. (a)(25). Pub. L. 104–208, § 103(c), added par. (25). Subsec. (a)(26). Pub. L. 104–208, § 103(d), added par. (26). Subsec. (d). Pub. L. 104–208, § 107(a), struck out ‘‘(1)’’ before ‘‘The Administration’’ and struck out par. (2) which read as follows: ‘‘The Administration is author- ized to hold seminars throughout the Nation to make potential applicants aware of the opportunities avail- able under this subsection and related government en- ergy programs, and to make grants to qualified organi- zations to provide training seminars for small business concerns regarding practical and easily implemented methods for design, manufacture, installation, and servicing of equipment and for providing services listed in paragraph (1) of this subsection, except that recipi- ents of loans made pursuant to this subsection shall not subsequently be eligible for such grants.’’ Subsec. (e). Pub. L. 104–208, § 107(b), amended subsec. (e) generally, substituting ‘‘(e) [RESERVED]’’ for prior provisions of subsec. (e) which read as follows: ‘‘The Administration also is empowered to make loans (ei- ther directly or in cooperation with banks or other lenders through agreements to participate on an imme- diate or deferred basis) to assist any firm to adjust to changed economic conditions resulting from increased competition from imported articles, but only if (1) an adjustment proposal of such firm has been certified by the Secretary of Commerce pursuant to the Trade Ex- pansion Act of 1962, (2) the Secretary has referred such proposal to the Administration under that Act and the loan would provide part or all of the financial assist- ance necessary to carry out such proposal, and (3) the Secretary’s certification is in force at the time the Ad- ministration makes the loan. With respect to loans made under this subsection the Administration shall apply the provisions of sections 314, 315, 316, 318, 319, and 320 of the Trade Expansion Act of 1962 as though such loans had been made under section 314 of that Act.’’ Subsec. (f). Pub. L. 104–208, § 107(c), amended subsec. (f) generally, substituting ‘‘(f) [RESERVED]’’ for prior provisions of subsec. (f) which read as follows: ‘‘In the administration of the disaster loan program under sub- section (b)(1) of this section, in the case of property loss or damage as a result of a disaster which is a ‘major disaster’ as defined in section 102(2) of the Dis- aster Relief and Emergency Assistance Act, the Small Business Administration, to the extent such loss or damage is not compensated for by insurance or other- wise, may lend to a privately owned college or univer- sity without regard to whether the required financial assistance is otherwise available from private sources, and may waive interest payments and defer principal payments on such a loan for the first three years of the term of the loan.’’ Subsec. (l). Pub. L. 104–208, § 107(c), amended subsec. (l) generally, substituting ‘‘(l) [RESERVED]’’ for prior provisions of subsec. (l) which consisted of 9 pars. au- thorizing loans to small business concerns for solar en- ergy and energy conservation measures. Subsec. (m)(7)(B). Pub. L. 104–208, § 105, inserted at end ‘‘If, however, at the beginning of the fourth quarter of a fiscal year the Administration determines that a portion of appropriated microloan funds are unlikely to be awarded during that year, the Administration may make additional funds available to a State in excess of 125 percent of the pro rata share of that State.’’ 1995—Subsec. (a)(2). Pub. L. 104–36, § 2, amended par. (2) generally. Prior to amendment, par. (2) related to percentage levels in loan participation agreements. Subsec. (a)(18). Pub. L. 104–36, § 3(a), amended par. (18) generally. Prior to amendment, par. (18) read as fol- lows: ‘‘The Administration shall collect a guarantee fee equal to two percent of the amount of the deferred par- ticipation share of any loan under this subsection other than a loan repayable in one year or less. The fee shall be payable by the participating lending institution and may be charged to the borrower.’’ Subsec. (a)(19)(B). Pub. L. 104–36, § 3(b)(1), substituted ‘‘shall develop’’ for ‘‘shall (i) develop’’ and struck out at end ‘‘, and (ii) allow such lenders to retain one-half of the fee collected pursuant to subsection (a)(18) of this section on such loans. A participating lender may not retain any fee pursuant to this paragraph if the amount committed and outstanding to the applicant would exceed $50,000 unless the amount in excess of $50,000 is an amount not approved under the provisions of this paragraph’’. Subsec. (a)(19)(C). Pub. L. 104–36, § 3(b)(2), struck out subpar. (C) which read as follows: ‘‘In order to encour- age lending institutions and other entities making loans authorized under this subsection to provide loans to small business loan applicants located in rural areas, such lenders shall be permitted to retain one-half of the fee collected pursuant to paragraph (18) on loans of less than $75,000. A participating lender may not retain any fee pursuant to this subparagraph if the amount com- mitted and outstanding to the applicant would exceed $75,000 unless the amount in excess of $75,000 is an amount not approved under the provisions of this sub- paragraph. This subparagraph shall cease to be effec- tive on October 1, 1995.’’ Subsec. (a)(23). Pub. L. 104–36, § 4(a), added par. (23). Subsec. (a)(24). Pub. L. 104–36, § 5, added par. (24). 1994—Subsec. (a)(2)(B)(iv). Pub. L. 103–403, § 211, amended cl. (iv) generally. Prior to amendment, cl. (iv) read as follows: ‘‘not less than 85 percent of the financ- ing outstanding at the time of disbursement if such fi- nancing is a loan under paragraph (16).’’ Page 858 TITLE 15—COMMERCE AND TRADE § 636 Subsec. (a)(3)(B). Pub. L. 103–403, § 210, amended sub- par. (B) generally. Prior to amendment, subpar. (B) read as follows: ‘‘if the total amount outstanding and committed (on a deferred basis) solely for the purposes provided in paragraph (16) to the borrower from the business loan and investment fund established by this chapter would exceed $1,000,000, such amount to be in addition to any financing solely for working capital, supplies, or revolving lines of credit for export purposes up to a maximum of $250,000; and’’. Subsec. (a)(14)(A). Pub. L. 103–403, § 209, amended sub- par. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘The Administration under this sub- section may provide extensions and revolving lines of credit for export purposes and financing to enable small business concerns, including small business export trading companies and small business export manage- ment companies, to develop foreign markets. No such extension or revolving line of credit may be made for a period or periods exceeding 3 years. A bank or partici- pating lending institution may establish the rate of in- terest on extensions and revolving lines of credit as may be legal and reasonable.’’ Subsec. (a)(21)(A). Pub. L. 103–403, § 605(a), inserted ‘‘on a guaranteed basis’’ before ‘‘under the authority’’. Subsec. (a)(21)(E). Pub. L. 103–403, § 603, added subpar. (E). Subsec. (m)(3)(C). Pub. L. 103–403, § 206, substituted ‘‘$2,500,000’’ for ‘‘$1,250,000’’. Subsec. (m)(4)(B). Pub. L. 103–403, § 208(a)(1), (c), tem- porarily inserted ‘‘except for a grant made to an inter- mediary that provides not less than 50 percent of its loans to small business concerns located in or owned by one or more residents of an economically distressed area,’’ after ‘‘under subparagraph (A),’’. See Effective and Termination Dates of 1994 Amendment note below. Subsec. (m)(4)(C)(i). Pub. L. 103–403, § 208(a)(2), (c), temporarily added cl. (i) which read as follows: ‘‘In ad- dition to grants made under subparagraph (A), each intermediary shall be eligible to receive a grant equal to 5 percent of the total outstanding balance of loans made to the intermediary under this subsection if— ‘‘(I) the intermediary provides not less than 25 per- cent of its loans to small business concerns located in or owned by one or more residents of an economically distressed area; or ‘‘(II) the intermediary has a portfolio of loans made under this subsection that averages not more than $7,500 during the period of the intermediary’s partici- pation in the program.’’ See Effective and Termination Dates of 1994 Amend- ment note below. Subsec. (m)(4)(E). Pub. L. 103–403, § 207, added subpar. (E). Subsec. (m)(7). Pub. L. 103–403, § 204, amended par. (7) generally, substituting present provisions for former provisions relating to program funding, which provided for: in subpar. (A), first year programs; in subpar. (B), expanded programs; and in subpar. (C), State limita- tions. Subsec. (m)(8). Pub. L. 103–403, § 205, amended heading and text of par. (8) generally. Prior to amendment, text read as follows: ‘‘In funding microloan programs, the Administration shall ensure that at least one-half of the programs funded under this subsection will provide microloans to small business concerns located in rural areas.’’ Subsec. (m)(9)(B). Pub. L. 103–403, § 604, inserted ‘‘and loan guarantees’’ after ‘‘for loans’’ and ‘‘and national and regional nonprofit organizations that have dem- onstrated experience in providing training support for microenterprise development and financing.’’ after ‘‘ex- perienced microlending organizations’’. Subsec. (m)(11)(A)(v). Pub. L. 103–403, § 202, added cl. (v). Subsec. (m)(11)(D). Pub. L. 103–403, § 208(b), (c), tempo- rarily added subpar. (D) which read as follows: ‘‘the term ‘economically distressed area’, as used in para- graph (4), means a county or equivalent division of local government of a State in which the small busi- ness concern is located, in which, according to the most recent data available from the Bureau of the Census, Department of Commerce, not less than 40 percent of residents have an annual income that is at or below the poverty level.’’. See Effective and Termination Dates of 1994 Amendment note below. Subsec. (m)(12). Pub. L. 103–403, § 201, added par. (12). 1993—Subsec. (a)(2). Pub. L. 103–81, § 5(a)(2)–(4), in con- cluding provisions, substituted ‘‘less than the above specified percentums’’ for ‘‘less than 85 percent under subparagraph (B)’’ and ‘‘not less than 70 percent, unless a lesser percent is required by clause (B)(ii) or upon the’’ for ‘‘not less than 80 percent, except upon’’ and in- serted after third sentence ‘‘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, which is made applicable to other loan guarantees under subsection (a) of this section.’’ Subsec. (a)(2)(B). Pub. L. 103–81, § 5(a)(1), struck out ‘‘and’’ at end of cl. (i), added cls. (ii) and (iii), and re- designated former cl. (ii) as (iv). Subsec. (a)(22). Pub. L. 103–81, § 4, added par. (22). Subsec. (m)(1)(B)(iii). Pub. L. 103–81, § 8(1), substituted ‘‘$25,000’’ for ‘‘$15,000’’. Subsec. (m)(5)(A). Pub. L. 103–81, § 8(2), substituted ‘‘25 grants for terms of up to 5 years’’ for ‘‘6 grants’’. Subsec. (m)(9)(B). Pub. L. 103–81, § 8(3), substituted ‘‘7 percent’’ for ‘‘3 percent’’. 1992—Subsec. (a)(4). Pub. L. 102–366, § 104, substituted ‘‘Notwithstanding the provisions of the constitution of any State or the laws of any State limiting the rate or amount of interest which may be charged, taken, re- ceived, or reserved, the maximum legal rate of interest on any financing made on a deferred basis pursuant to this subsection’’ for ‘‘The rate of interest on financings made on a deferred basis shall be legal and reasonable but’’. Subsec. (a)(21). Pub. L. 102–366, § 211, added par. (21). Subsec. (m)(1)(A)(i). Pub. L. 102–366, § 113(a)(1)(A), amended cl. (i) generally, substituting ‘‘and business owners and other such individuals’’ for ‘‘, business owners, and other individuals’’. Subsec. (m)(1)(A)(iii)(I). Pub. L. 102–366, § 113(a)(1)(B), inserted ‘‘, particularly loans in amounts averaging not more than $7,500,’’ after ‘‘small-scale loans’’. Subsec. (m)(3)(A). Pub. L. 102–366, § 113(a)(2), des- ignated existing provisions as cl. (i) and inserted head- ing, redesignated cls. (i) to (viii) as subcls. (I) to (VIII), respectively, substituted ‘‘economic, poverty, and un- employment’’ for ‘‘economic and unemployment’’ in subcl. (III), amended subcl. (VIII) generally, and added cl. (ii). Prior to amendment, subcl. (VIII) read as fol- lows: ‘‘any plan to involve private sector lenders in as- sisting selected small business concerns.’’ Subsec. (m)(3)(F). Pub. L. 102–366, § 113(a)(3), amended subpar. (F) generally. Prior to amendment, subpar. (F) read as follows: ‘‘Loans made by the Administration under this subsection shall be for a term of 10 years and at an interest rate equal to the rate determined by the Secretary of the Treasury for obligations of the United States with a period of maturity of 5 years, adjusted to the nearest one-eighth of 1 percent.’’ Subsec. (m)(4)(A). Pub. L. 102–366, § 113(a)(4)(B), added subpar. (A) and struck out former subpar. (A) which read as follows: ‘‘Except as otherwise provided in sub- paragraph (C) and subject to the requirements of sub- paragraph (B), each intermediary that receives a loan under subparagraph (B)(i) of paragraph (1) shall be eli- gible to receive a grant to provide marketing, manage- ment, and technical assistance to small business con- cerns that are borrowers under this subsection. In the first and second years of an intermediary’s program participation, each intermediary meeting the require- ment of subparagraph (B) may receive a grant of not more than 20 percent of the total outstanding balance of loans made to it under this subsection. In the third and subsequent years of an intermediary’s program participation, each intermediary meeting the require- ments of subparagraph (B) may receive a grant of not Page 859 TITLE 15—COMMERCE AND TRADE § 636 more than 10 percent of the total outstanding balance of loans made to it under this subsection.’’ Pub. L. 102–366, § 113(a)(4)(A), substituted ‘‘Except as otherwise provided in subparagraph (C) and subject to’’ for ‘‘Subject to’’. Subsec. (m)(4)(B). Pub. L. 102–366, § 113(a)(4)(C), sub- stituted ‘‘25 percent’’ for ‘‘one-half’’. Subsec. (m)(4)(C), (D). Pub. L. 102–366, § 113(a)(4)(D), added subpars. (C) and (D). Subsec. (m)(5)(A). Pub. L. 102–366, § 113(a)(5), sub- stituted ‘‘6 grants’’ for ‘‘2 grants’’. Subsec. (m)(6)(C). Pub. L. 102–366, § 113(a)(6), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: ‘‘Notwithstanding any provision of the laws of any State or the constitution of any State per- taining to the rate or amount of interest that may be charged, taken, received or reserved on a loan, the maximum rate of interest to be charged on a microloan funded under this subsection shall be not more than 4 percentage points above the prime lending rate, as identified by the Administration and published in the Federal Register on a quarterly basis.’’ Subsec. (m)(7)(A). Pub. L. 102–564, § 307(b)(1), inserted at end: ‘‘If, at the end of fiscal year 1992, the Adminis- tration has funded less than 50 microloan programs under this subparagraph, the Administration may, in fiscal year 1993, fund a number of additional microloan programs equal to the difference between 50 and the number of microloan programs actually funded in fiscal year 1992.’’ Pub. L. 102–366, § 113(a)(7)(A), substituted ‘‘60 microloan programs’’ for ‘‘35 microloan programs’’. Subsec. (m)(7)(B). Pub. L. 102–564, § 307(b)(2), sub- stituted ‘‘In addition to any microloan programs au- thorized to be funded in fiscal year 1993 in accordance with subparagraph (A), in the second’’ for ‘‘In the sec- ond’’. Pub. L. 102–366, § 113(a)(7)(B), substituted ‘‘50 addi- tional’’ for ‘‘25 additional’’. Subsec. (m)(7)(C)(i). Pub. L. 102–366, § 113(a)(7)(C), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: ‘‘be awarded more than 2 microloan programs in any year of the demonstration program;’’. Subsec. (m)(7)(C)(ii), (iii). Pub. L. 102–366, § 113(a)(7)(D), (E), substituted ‘‘$1,500,000’’ for ‘‘$1,000,000’’ in cl. (ii) and ‘‘$2,500,000’’ for ‘‘$1,500,000’’ in cl. (iii). Subsec. (m)(9), (10). Pub. L. 102–366, § 113(a)(8), (9), added par. (9) and redesignated former par. (9) as (10). Former par. (10) redesignated (11). Subsec. (m)(11). Pub. L. 102–564, § 307(c), inserted ‘‘pri- vate,’’ before ‘‘nonprofit’’ in subpar. (A)(ii). Pub. L. 102–366, § 113(a)(8), (10), redesignated par. (10) as (11) and amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘the term ‘intermediary’ means a private, nonprofit entity or a nonprofit community development corporation that seeks to borrow or has borrowed funds from the Small Business Administration to make microloans to small business concerns under this subsection;’’. 1991—Subsec. (a)(18). Pub. L. 102–140, § 609(b), struck out ‘‘or a loan under paragraph (13)’’ after ‘‘one year or less’’. Subsec. (a)(19)(B). Pub. L. 102–191 struck out ‘‘during fiscal years 1989, 1990, and 1991,’’ after ‘‘small business loan applicants,’’. Subsec. (m). Pub. L. 102–140, § 609(h), added subsec. (m). 1990—Subsec. (a)(14)(A). Pub. L. 101–574, § 202, struck out ‘‘pre-export’’ before ‘‘financing’’ and substituted ‘‘3 years’’ for ‘‘18 months’’. Subsec. (a)(16)(A). Pub. L. 101–574, § 245, struck out at end ‘‘The lender shall agree to sell the loan in the sec- ondary market as authorized in sections 634(f) and 634(g) of this title within 180 days of the date of dis- bursement.’’ Subsec. (a)(19)(C). Pub. L. 101–574, § 307, added subpar. (C). Subsec. (j)(3)(A). Pub. L. 101–574, § 242(1), struck out subpar. (A), which was previously struck out by Pub. L. 100–656, § 505(h). See 1988 Amendment note below. Subsec. (j)(3)(B). Pub. L. 101–574, § 242(1), struck out subpar. (B) which read as follows: ‘‘The General Ac- counting Office shall evaluate the activities taken by the Administration to achieve the purpose of this para- graph and evaluate the success of these activities in achieving the purposes of this paragraph. The General Accounting Office shall report to the Congress by Janu- ary 1, 1981, and at any time thereafter at the discretion of the Comptroller General, on the findings of this eval- uation and shall make recommendations on actions needed to improve the Administration’s performance pursuant to this paragraph.’’ Subsec. (j)(8). Pub. L. 101–574, § 242(2), struck out par. (8) which read as follows: ‘‘The General Accounting Of- fice shall provide for an independent and continuing evaluation of programs under subsections (i) and (j) of this section and section 637(a) of this title, including full information on, and analysis of, the character and impact of managerial assistance provided, the location, income characteristics, and extent to which private re- sources and skills have been involved in these pro- grams. Such evaluation together with any rec- ommendations deemed advisable by the Comptroller General shall be reported to the Congress by January 1, 1981, and at any time thereafter at the discretion of the Comptroller General.’’ Subsec. (j)(10)(J)(ii). Pub. L. 101–574, § 204(a), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: ‘‘Except as provided under section 602 of the Business Opportunity Development Reform Act of 1988, no award shall be made pursuant to section 637(a) of this title to other than a small business concern.’’ Subsec. (j)(13)(D)(iii). Pub. L. 101–574, § 206, sub- stituted ‘‘October 1, 1994’’ for ‘‘October 1, 1992’’. 1989—Subsec. (a)(2). Pub. L. 101–162, title V, (1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘In agreements to participate in loans on a deferred basis under this subsection, such participation by the Administration, except as pro- vided in paragraph (6), shall be: ‘‘(A) not less than 90 per centum of the balance of the financing outstanding at the time of disburse- ment if such financing does not exceed $155,000; and ‘‘(B) subject to the limitation in paragraph (3)— ‘‘(i) not less than 70 per centum nor more than 85 per centum of the financing outstanding at the time of disbursement if such financing exceeds $155,000 but is less than $714,285, ‘‘(ii) less than 70 per centum of the financing out- standing at the time of disbursement if such financ- ing exceeds $714,285; ‘‘(iii) not less than 85 per centum of the financing outstanding at the time of disbursement if such fi- nancing is a loan under paragraph (16) and is less than $1,176,470; and ‘‘(iv) less than 85 per centum of the financing out- standing at the time of disbursement if such financ- ing is a loan under paragraph (16) and exceeds $1,176,470; Provided, That the Administration shall not use the per centum of guarantee requested as a criterion to estab- lish priorities in approving guarantee requests nor shall the Administration reduce the per centum guar- anteed to less than 85 per centum pursuant to subpara- graph (B) other than by a determination made on each application: Provided, further, That the Administration may reduce its participation below the per centums stated in this paragraph if the lender requests the re- duction under the preferred lenders program or any successor thereto, but any such reduction shall not ex- ceed five points. As used in this sentence the term ‘pre- ferred lenders program’ means a program under which, pursuant to a written agreement between the lender and the Administration, the lender has been delegated (1) complete authority to make and close loans with a guarantee from the Administration without obtaining the prior specific approval of the Administration, and (2) authority to service and liquidate such loans.’’ Subsec. (a)(19). Pub. L. 101–162, title V, (2), amended par. (19) generally. Prior to amendment, par. (19) read Page 860 TITLE 15—COMMERCE AND TRADE § 636 as follows: ‘‘During fiscal years 1989, 1990, and 1991, in addition to the preferred lenders program authorized by the proviso in section 634(b)(7) of this title, the Admin- istration is authorized to establish a certified loan pro- gram for lenders who establish their knowledge of Ad- ministration laws and regulations concerning the loan guarantees program and their proficiency in program requirements. In order to encourage certified lenders and preferred lenders to provide loans of $50,000 or less in guarantees to eligible small business loan appli- cants, the Administration (A) shall develop and shall allow participating lenders in the certified loan pro- gram and in the preferred loan program to solely uti- lize a uniform and simplified loan form for such loans and (B) shall allow such lenders to retain one-half of the fee collected pursuant to subsection (a)(16) of this section on such loans: Provided, That a participating lender may not retain any fee pursuant to this para- graph if the amount committed and outstanding to the applicant would exceed $50,000 unless such excess amount was not approved under the provisions of this paragraph. The designation of a lender as a certified lender shall be suspended or revoked at any time that the Administration determines that the lender is not adhering to its rules and regulations or if the Adminis- tration determines that the loss experience of the lend- er is excessive as compared to other lenders: Provided further, That any suspension or revocation of the des- ignation shall not affect any outstanding guarantee: And, provided further, That the Administration may not reduce the per centum of guarantee as a criterion of eligibility for participation in this program, except as otherwise provided by law.’’ Subsec. (a)(20)(C)(iv). Pub. L. 101–37, § 9, inserted ‘‘is’’ before ‘‘amortized’’. Subsec. (j)(10)(A)(i). Pub. L. 101–37, § 5(a), substituted ‘‘which set forth’’ for ‘‘which sets forth’’. Subsec. (j)(10)(D)(i). Pub. L. 101–37, § 5(b)(1), sub- stituted ‘‘Business Opportunity Specialist’’ for ‘‘busi- ness opportunity specialist’’. Subsec. (j)(10)(D)(ii)(II). Pub. L. 101–37, § 5(b)(2), sub- stituted ‘‘the small business concern’’ for ‘‘small busi- ness concerns’’. Subsec. (j)(10)(D)(iii). Pub. L. 101–37, § 5(b)(3), inserted ‘‘relating to attaining business activity from sources other than contracts awarded pursuant to section 637(a) of this title’’ after ‘‘subparagraph (I)’’. Subsec. (j)(10)(D)(iv). Pub. L. 101–37, § 5(b)(4), sub- stituted ‘‘contract awards’’ for ‘‘contact awards’’. Subsec. (j)(10)(D)(iv)(I). Pub. L. 101–37, § 5(b)(5), in- serted ‘‘relating to attaining business activity from sources other than contracts awarded pursuant to sec- tion 637(a) of this title’’ after ‘‘subparagraph (I)’’. Subsec. (j)(10)(E)(ii). Pub. L. 101–37, § 7(a)(1), sub- stituted ‘‘completes the period of Program participa- tion as prescribed by paragraph (15)’’ for ‘‘participates in the Program for a period in excess of the time limits prescribed by paragraph (15)’’. Subsec. (j)(10)(F). Pub. L. 101–37, § 7(a)(2), struck out subpar. (F) appearing first, which read as follows: ‘‘For the purposes of this subsection and section 637(a) of this title, the terms ‘terminated’ or ‘termination’ shall mean the total denial’’. Pub. L. 101–37, § 7(a)(3), in subpar. (F) appearing sec- ond, inserted first sentence and struck out former first sentence which read as follows: ‘‘For the purposes of this chapter, this subsection and section 637(a) of this title, the terms ‘terminated’ or ‘termination’ shall mean the total denial or suspension of assistance pro- vided pursuant to this paragraph or section 637(a) of this title prior to the graduation of the participating small business concern pursuant to subparagraph (H) or the expiration of the maximum program participation in terms prescribed by paragraph (15).’’ Subsec. (j)(10)(I). Pub. L. 101–37, § 10(b), designated as subpar. (I) the undesignated subpar. which followed subpar. (H). Pub. L. 101–37, § 10(a), made technical correction to di- rectory language of Pub. L. 100–656, § 303(a), see 1988 Amendment note below. Subsec. (j)(10)(J)(i). Pub. L. 101–37, § 6(a), substituted ‘‘suspended’’ for ‘‘suspended or terminated’’. Subsec. (j)(11)(B). Pub. L. 101–37, § 4(1), added subpar. (B) and struck out former subpar. (B) which read as fol- lows: ‘‘Except as provided in section 602(d) of the Busi- ness Opportunity Development Reform Act of 1988, any individual upon whom eligibility is based pursuant to section 637(a)(4) of this title, shall be permitted to as- sert such eligibility for only one small business con- cern. Notwithstanding the provisions of the preceding sentence, no individual who was determined pursuant to section 637(a) of this title to be socially and eco- nomically disadvantaged before June 1, 1989, shall be permitted to assert such disadvantage with respect to any other concern making application for certification after June 1, 1989.’’ Subsec. (j)(11)(E). Pub. L. 101–37, § 4(2), (3), substituted ‘‘Office of Minority Small Business’’ for ‘‘Office of the Associate Administrator for Minority Small Business’’ and ‘‘the Associate Administrator for Minority Small Business and Capital Ownership Development’’ for ‘‘such Associate Administrator’’. Subsec. (j)(11)(F)(v). Pub. L. 101–37, § 4(4), substituted ‘‘to the Associate Administrator’’ for ‘‘with the Asso- ciate Administrator’’. Subsec. (j)(11)(F)(vi). Pub. L. 101–37, § 4(5), added cl. (vi) and struck out former cl. (vi) which read as follows: ‘‘decide protests from applicants that have been denied program admission;’’. Subsec. (j)(11)(F)(viii). Pub. L. 101–37, § 4(6), sub- stituted ‘‘subparagraph (I)’’ for ‘‘subparagraph (H)’’. Subsec. (j)(11)(G)(ii). Pub. L. 101–37, § 4(7), substituted ‘‘Participants’’ for ‘‘participants’’. Subsec. (j)(11)(H), (I). Pub. L. 101–37, § 4(9), added sub- par. (H) and redesignated former subpar. (H) as (I). Subsec. (j)(12)(A). Pub. L. 101–37, § 8(a)(1), substituted ‘‘developmental’’ for ‘‘development’’. Subsec. (j)(12)(B). Pub. L. 101–37, § 8(a)(2), inserted ‘‘in its effort’’ after ‘‘to assist the concern’’. Subsec. (j)(13)(E). Pub. L. 101–37, § 8(b), inserted sec- ond sentence and struck out former second sentence which read as follows: ‘‘Such financial assistance may be made without regard to section 647(a) of this title, shall be made by way of reimbursement to the training provider, and shall have such adjustments as may be necessary to provide for overpayments or underpay- ments.’’ 1988—Subsec. (a)(2). Pub. L. 100–590, § 103, inserted ‘‘, but any such reduction shall not exceed five points’’ after ‘‘any successor thereto’’ in second proviso. Subsec. (a)(2)(B)(iii), (iv). Pub. L. 100–418, § 8007(a)(1), added cls. (iii) and (iv). Subsec. (a)(3). Pub. L. 100–418, § 8007(a)(2), amended par. (3) generally. Prior to amendment, par. (3) read as follows: ‘‘No loan under this subsection shall be made if the total amount outstanding and committed (by participation or otherwise) to the borrower from the business loan and investment fund established by this chapter would exceed $500,000: Provided, That no such loan made or effected either directly or in cooperation with banks or other lending institutions through agree- ments to participate on an immediate basis shall ex- ceed $350,000.’’ Subsec. (a)(12). Pub. L. 100–590, § 111(c), designated ex- isting provisions as subpar. (A) and added subpar. (b)[(B)]. Subsec. (a)(14). Pub. L. 100–418, § 8005, amended par. (14) generally. Prior to amendment, par. (14) read as follows: ‘‘The Administration under this subsection may provide extensions and revolving lines of credit for export purposes to enable small business concerns to develop foreign markets and for preexport financing: Provided, however, That no such extension or revolving line of credit may be made for a period or periods ex- ceeding eighteen months. A bank or participating lend- ing institution may establish the rate of interest on ex- tensions and revolving lines of credit as may be legal and reasonable.’’ Subsec. (a)(16) to (18). Pub. L. 100–418, § 8007(a)(3), (4), added pars. (16) and (17) and redesignated former par. (16) as (18). Page 861 TITLE 15—COMMERCE AND TRADE § 636 Subsec. (a)(19). Pub. L. 100–533 and Pub. L. 100–590, § 102(a), made identical amendments adding par. (19). Subsec. (a)(20). Pub. L. 100–656, § 302, added par. (20). Subsec. (b)(1)(A). Pub. L. 100–590, §§ 119(a), 121, sub- stituted ‘‘natural or other disasters’’ for ‘‘floods, riots or civil disorders, or other catastrophes’’ and inserted proviso that Administration may increase loan up to additional 20 per centum to protect damaged or de- stroyed property from possible future disasters. Subsec. (b)(2)(A). Pub. L. 100–707, § 109(f)(1), sub- stituted ‘‘the Disaster Relief and Emergency Assist- ance Act’’ for ‘‘the Act entitled ‘An Act to authorize Federal assistance to States and local governments in major disasters, and for other purposes’, approved Sep- tember 30, 1950, as amended (42 U.S.C. 1855–1855g)’’. Subsec. (b)(E). Pub. L. 100–707, § 109(f)(2), substituted ‘‘section 312(a) of the Disaster Relief and Emergency Assistance Act’’ for ‘‘subsection (b) of section 315 of Public Law 93–288 (42 U.S.C. 5155)’’. Subsec. (c)(5)(C). Pub. L. 100–590, § 120(b), substituted ‘‘business or other concern, including agricultural co- operatives,’’ for ‘‘business concern’’. Subsec. (c)(6). Pub. L. 100–590, § 122, substituted ‘‘refi- nancing: Provided further, That the Administration shall not require collateral for loans of $10,000 or less which are made under paragraph (1) of subsection (b)’’. for ‘‘refinancing’’. Subsec. (c)(7). Pub. L. 100–590, § 120(a), added par. (7). Subsec. (f). Pub. L. 100–707, § 109(f)(3), substituted ‘‘section 102(2) of the Disaster Relief and Emergency Assistance Act’’ for ‘‘section 2(a) of the Act of Sep- tember 30, 1950 (42 U.S.C. 1855a(a))’’. Subsec. (j)(3)(A). Pub. L. 100–656, § 505(h), struck out subpar. (A) which read as follows: ‘‘An advisory com- mittee composed of five high-level officers from five United States businesses and five representatives of minority small businesses shall be created to facilitate the achievement of the purposes of this paragraph. The members of the advisory committee shall be appointed by the President. The chairman of the advisory com- mittee, who shall be designated by the President shall report annually to the President and to the Congress on the activities of the advisory committee.’’ Subsec. (j)(10)(A)(i). Pub. L. 100–656, § 205(a), amended cl. (i) generally. Prior to amendment, cl. (i) read as fol- lows: ‘‘assist small business concerns participating in the Program to develop comprehensive business plans with specific business targets, objectives, and goals for correcting the impairment of such concern’s ability to compete, as determined for such concern pursuant to section 637(a)(6) of this title, within a fixed period of time as mutually agreed upon by the applicant and the Administrator prior to acceptance in such program: Provided, That not less than one year prior to the expi- ration of such period, and upon the request of such con- cern, the Administration shall review such period and may extend such period as necessary and appropriate: Provided further, That no determination made under this paragraph shall be considered a denial of total par- ticipation for the purposes of section 637(a)(9) of this title;’’. Subsec. (j)(10)(C). Pub. L. 100–656, § 205(b)(1), (2), redes- ignated subpar. (D) as (C) and struck out former sub- par. (C) which read as follows: ‘‘No small business con- cern shall receive a contract pursuant to section 637(a) of this title unless— ‘‘(i) the business plan required pursuant to para- graph (10)(A)(i) is approved by the Administration; and ‘‘(ii) the program is able to provide such concern with, but not limited to, such management, technical and financial services as may be necessary to achieve the targets, objectives, and goals of such business.’’ Subsec. (j)(10)(D). Pub. L. 100–656, § 205(b)(2), (3), added subpar. (D). Former subpar. (D) redesignated (C). Pub. L. 100–656, § 203, added subpar. (D). Subsec. (j)(10)(E) to (H). Pub. L. 100–656, § 208, added subpars. (E) to (H). Subsec. (j)(10)[(I)]. Pub. L. 100–656, § 303(a), as amended by Pub. L. 101–37, § 10(a), added new subpar. without subpar. designation, but which probably was intended to be subpar. (I). See 1989 Amendment note above. Subsec. (j)(10)(J). Pub. L. 100–656, § 206, added subpar. (J). Subsec. (j)(11). Pub. L. 100–656, § 201(a), designated ex- isting provisions as subpar. (A) and added subpars. (B) to (H). Subsec. (j)(12). Pub. L. 100–656, § 301(a), added par. (12). Subsec. (j)(13). Pub. L. 100–656, § 301(b), added par. (13). Subsec. (j)(14). Pub. L. 100–656, § 301(c), added par. (14). Subsec. (j)(15). Pub. L. 100–656, § 202, added par. (15). Subsec. (j)(16). Pub. L. 100–656, § 408, added par. (16). 1986—Subsec. (a)(2). Pub. L. 99–272, § 18013, in subpar. (A) substituted ‘‘$155,000’’ for ‘‘$100,000’’, in subpar. (B)(i) substituted ‘‘$155,000’’ for ‘‘$100,000’’ and ‘‘85’’ for ‘‘90’’, in proviso following subpar. (B) substituted ‘‘85’’ for ‘‘90’’, and inserted a second proviso relating to re- duction by the Administration of its participation below the per centum stated in this paragraph and de- fining ‘‘preferred lenders program’’. Subsec. (a)(15)(B)(i). Pub. L. 99–514 substituted ‘‘Inter- nal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codification was trans- lated as ‘‘title 26’’ thus requiring no change in text. Subsec. (a)(16). Pub. L. 99–272, § 18007, added par. (16). Subsec. (b). Pub. L. 99–272, § 18006(a)(1), in provision preceding par. (1) substituted ‘‘Except as to agricul- tural enterprises as defined in section 647(b)(1) of this title, the,’’ for ‘‘The’’, struck out par. (3) which author- ized loans, each one not to exceed $500,000, to any small business concern to effect continuation of, additions to, alterations in, or reestablishment in the same or a new location of its plant, facilities, or methods or operation caused by direct action of the Federal Government or as a consequence of Federal Government action pro- vided that the applicant was unable to obtain credit elsewhere, and struck out par. (4) which authorized dis- aster loans, each one not to exceed $100,000, to any small business concern located in an area of economic dislocation that was the result of the drastic fluctua- tion in the value of the currency of a country contig- uous to the United States and adjustments in the regu- lation of its monetary system if such concern was un- able to obtain credit elsewhere. Subsec. (c)(4). Pub. L. 99–272, § 18006(a)(2), struck out provision following subpar. (D) which provided that loans, subject to reductions under subpars. (A) and (B) of par. (1), be in amounts equal to 100 percent of loss if the applicant was a homeowner and 85 percent if the applicant was a business or otherwise, the interest rate for loans under pars. (1) and (2) be the rate of interest in effect on the date the disaster commenced, and the Administrator, in his discretion, waive the $500,000 lim- itation on the total amount outstanding and com- mitted to the borrower under this subsection if the ap- plicant constituted a major source of employment in an area suffering a disaster. 1984—Subsec. (b)(2). Pub. L. 98–270, § 311(1), (3), sub- stituted in provisions preceding subpar. (A) ‘‘small business concern or small agricultural cooperative’’ for ‘‘small business concern’’ and ‘‘the concern or the coop- erative’’ for ‘‘the concern’’. Subsec. (b)(2)(D). Pub. L. 98–270, § 311(2), substituted ‘‘small business concerns or small agricultural coopera- tives’’ for ‘‘small business concerns’’. Subsec. (b)(3). Pub. L. 98–270, § 308, inserted ‘‘continu- ation of,’’ after ‘‘in effecting’’ and inserted provision di- recting that, for purposes of this paragraph, the impact of the 1983 Payment-in-Kind Land Diversion program, or any successor Payment-in-Kind program with a similar impact on the small business community, be deemed to be a consequence of Federal Government ac- tion. Subsec. (b)(4). Pub. L. 98–270, § 304(2), added par. (4). Subsec. (c). Pub. L. 98–270, § 301, added undesignated par. following par. (6). Subsec. (c)(5). Pub. L. 98–270, § 301, added par. (5). Subsec. (c)(6). Pub. L. 98–270, § 301, added par. (6). Pub. L. 98–270, § 309, inserted provision directing that employees of concerns sharing common business prem- Page 862 TITLE 15—COMMERCE AND TRADE § 636 ises be aggregated in determining ‘‘major source of em- ployment’’ status for nonprofit applicants owning such premises. Subsec. (d)(1). Pub. L. 98–395 substituted provisions stating that the Administration shall not fund any Small Business Development Center except as author- ized for former provisions which prohibited such fund- ing only after October 1, 1980. 1981—Subsec. (a). Pub. L. 97–35, § 1902, substituted pro- visions empowering the Administration to the extent and in such amounts as provided in advance in appro- priation acts, for plant acquisition, construction, con- version, or expansion, including the acquisition of land, material, supplies, equipment, and working capital, and to make loans to qualified small business concerns including those owned by qualified Indian tribes, for purposes of this chapter, and that financing may be made either directly or in cooperation with banks or other financial institutions through agreements to par- ticipate on an immediate or deferred basis for provi- sions empowering the Administration to make loans to enable small business concerns and such concerns whol- ly owned by Indian tribes to finance plant construc- tion, conversion, or expansion, including the acquisi- tion of land, or to finance residential or commercial construction or rehabilitation, for sale, with a proviso that such loans shall not be used primarily for the ac- quisition of land, or to finance the acquisition of equip- ment, facilities, machinery, supplies, or materials, or to supply such concerns with working capital to be used in the manufacture of articles, equipment, sup- plies, or materials for war, defense, or civilian produc- tion or as may be necessary to insure a well-balanced national economy, and that such loans may be made or effected either directly or in cooperation with banks or other lending institutions through agreements to par- ticipate on an immediate or deferred basis. Subsec. (a)(6)(C). Pub. L. 97–35, § 1910, repealed subpar. (C) which read as follows: ‘‘the Administration shall not decline to participate in a loan on a deferred basis under this subsection solely because such loan will be used to refinance all or any part of the existing indebt- edness of a small business concern, unless the Adminis- tration determines that— ‘‘(i) the holder of such existing indebtedness is in a position likely to sustain a loss if such refinancing is not provided, and ‘‘(ii) if the Administration provides such refi- nancing through an agreement to participate on a de- ferred basis, it will be in a position likely to sustain part or all of any loss which would have otherwise been sustained by the holder of the original indebted- ness: Provided further, That the Administration may decline to approve such refinancing if it determines that the loan will not benefit the small business con- cern.’’ Subsec. (a)(8). Pub. L. 97–35, § 1910, repealed par. (8) which read as follows: ‘‘(8)(A) Any loan made under the authority of this subsection by the Administration in cooperation with a bank or other lending institution through an agreement to participate on a deferred basis, may, upon the concurrence of the Administra- tion, borrower and such bank or institution, have the term of such loan extended or such loan refinanced with an extension of its term: Provided, That the aggre- gate term of such extended or refinanced loan does not exceed the term permitted pursuant to paragraph (5): And provided further, That such extended loans, or refinancings shall be repaid in equal installments of principal and interest. ‘‘(B) An additional service fee not exceeding 1 per centum of the outstanding amount of the principal may be paid by the borrower to the lender in consideration for such lender extending the term or refinancing of such borrower’s indebtedness if such extension or refi- nancing results in the term of such indebtedness ex- ceeding ten years. ‘‘(C) The authority provided in this paragraph shall not be construed to otherwise limit the authority of the Administration to set terms and conditions of the loan.’’ Subsec. (b)(1). Pub. L. 97–35, § 1911, revised provisions to specifically authorize loans only to repair, rehabili- tate, or replace property, real or personal, damaged or destroyed, and is not compensated for by insurance or otherwise, and to refinance any mortgage or other lien against a totally destroyed or substantially damaged home or business concern upon finding that the appli- cant is not able to obtain credit elsewhere, that such property is to be repaired, rehabilitated, or replaced, that the amount refinanced shall not exceed the loss, and that the amount shall be reduced to the extent such mortgage or lien is satisfied by insurance or oth- erwise. Subsec. (b)(2). Pub. L. 97–35, § 1911, revised provisions to continue to authorize loans to business concerns which the Administration determines to have suffered substantial economic injury as a result of a physical disaster as declared under certain pertinent triggering legislation. Subsec. (b)(3) to (9). Pub. L. 97–35, § 1913(a), designated existing provisions of par. (5) as (3) with minor changes, and struck out pars. (3), (4), and (6) to (9) relating to non-physical disaster loans. Subsec. (c)(3). Pub. L. 97–35, § 1914, substituted ‘‘effec- tive date of this Act’’ for ‘‘to October 1, 1983’’. Subsec. (c)(4). Pub. L. 97–35, § 1912, added par. (4). Subsec. (g). Pub. L. 97–35, § 1913(c), repealed subsec. (g) which related to loans to small business concerns for water pollution control facilities. 1980—Subsec. (a). Pub. L. 96–481, § 112, inserted provi- sions preceding par. (1) empowering the Administration to the extent and in such amounts as are provided in appropriation acts to make or effect either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis extensions and revolving lines of credit for export purposes to enable small business concerns to develop foreign markets and for preexport financing, with proviso limiting the extension of credit or revolv- ing line of credit to a period of eighteen months. Subsec. (a)(8). Pub. L. 96–302, § 505, added par. (8). Subsec. (b). Pub. L. 96–302, § 124, which directed that cl. (E), respecting duplication of disaster benefits, be added at end of subsec. (b), was executed by inserting cl. (E) following cl. (D) in next to last par. of subsec. (b) as the probable intent of Congress. Subsec. (b)(4). Pub. L. 96–302, § 123, substituted ‘‘other causes’’ for ‘‘undetermined causes’’ and made the small business concern ineligible for loan assistance when the concern intentionally adulterates its product in at- tempting to establish eligibility under the loan assist- ance program. Subsec. (b)(8). Pub. L. 96–302, § 122, authorized loans to assist small business concern affected by a shortage of coal or other energy-producing resource caused by a strike, boycott, or embargo, unless the strike, boycott, or embargo is directly against the small business con- cern. Subsec. (c)(3). Pub. L. 96–302, § 119(a), (b), added sub- par. (C) and extended disaster loans to disasters occur- ring prior to Oct. 1, 1983, instead of Oct. 1, 1982. Subsec. (d)(1). Pub. L. 96–302, § 203, substituted provi- sions respecting: funding of small business development centers under section 648 of this title on and after Oct. 1, 1980; operation of such centers funded prior to Oct. 1, 1979; and prescribing $300,000 limitation for fiscal year 1980, for such centers funded in fiscal year 1979, for pro- visions respecting grants for studies research, and counseling concerning the managing, financing, and op- eration of small-business enterprises; study and re- search recommendation; and conditions, now covered in section 648(a) of this title. Subsec. (j)(10). Pub. L. 96–481, § 104, in opening para- graph substituted provision that the program and all other services and activities authorized under this sub- section and section 637(a) of this title shall be managed by the Associate Administrator for Minority Small Business and Capital Ownership Development under the Supervision of, and responsible to the Administrator, for provision that the management of the program Page 863 TITLE 15—COMMERCE AND TRADE § 636 shall be vested in the Associate Administrator for Mi- nority Small Business and Capital Ownership Develop- ment who shall also manage all other services and ac- tivities authorized under this subsection and section 637(a) of this title. Subsec. (j)(10)(A)(i). Pub. L. 96–481, § 106(a), sub- stituted ‘‘targets, objectives, and goals for correcting the impairment of such concern’s ability to compete, as determined for such concern pursuant to section 637(a)(6) of this title, within a fixed period of time as mutually agreed upon by the applicant and the Admin- istrator prior to acceptance in such program: Provided, That not less than one year prior to the expiration of such period, and upon the request of such concern, the Administration shall review such period and may ex- tend such period as necessary and appropriate; Provided further, That no determination made under this para- graph shall be considered a denial of participation for the purposes of section 637(a)(9) of this title’’ for ‘‘tar- gets, objectives and goals’’. Subsec. (j)(10)(C). Pub. L. 96–481, § 107, in the condi- tions required to receive a contract by a small business concern, substituted provisions that the business plan be approved by the Administration and that the pro- gram be able to provide the concern with management, technical and financial services necessary to achieve the targets, objectives and goals of such business, for provision that the program be able to provide the con- cern with management, technical and financial services as may be necessary to promote the competitive viabil- ity of the concern within a reasonable period of time. 1979—Subsec. (b) following par. (9). Pub. L. 96–38 in- serted ‘‘, except as provided in subsection (c) of this section,’’ after ‘‘the interest rate on the Administra- tion’s share of any loan made under this subsection’’ in first unnumbered paragraph. Subsec. (c)(3). Pub. L. 96–38 added par. (3). 1978—Subsec. (a). Pub. L. 95–507, § 231, inserted provi- sion including small-business concerns totally owned and controlled by Indian tribes within the scope of this section. Subsec. (d). Pub. L. 95–315, § 3, designated existing provisions as par. (1) and added par. (2). Subsec. (j). Pub. L. 95–507, § 204, included individuals and enterprises eligible for assistance under par. (10) of this subsection and section 637(a) of this title among those eligible for assistance under this section, pro- vided for the establishment of the small business and capital ownership development program, and provided for the coordination of certain Federal policies under this section by the Associate Administrator for Minor- ity Small Business and Capital Ownership Develop- ment. Subsec. (k). Pub. L. 95–507, § 205, inserted reference to section 637(a). Subsec. (k)(4). Pub. L. 95–510 substituted ‘‘the daily equivalent of the highest rate payable under section 5332 of title 5’’ for ‘‘$100 per diem’’. Subsec. (l). Pub. L. 95–315, § 2, added subsec. (l). 1977—Subsec. (a). Pub. L. 95–89, § 301, authorized loans to finance residential or commercial construction or rehabilitation for sale, subject to restriction that such loans be not used primarily for the acquisition of land. Subsec. (a)(8). Pub. L. 95–89, § 101(d), repealed par. (8) which required the Administrator to make direct loans under subsec. (a) in an aggregate amount of not less than $400,000,000 during fiscal year ending June 30, 1975. Subsec. (b). Pub. L. 95–89, § 405, inserted following par. (9) provisions respecting interest rate on loans to repair or replace primary residence and/or replace or repair damaged or destroyed personal property, including in- stallation of insulation in connection with any disaster occurring on or after April 1, 1977, and transmission of a report to congressional committees respecting the ac- tivities under the provisions and the encouragement of such insulation installations. Subsec. (b)(2)(C) to (E). Pub. L. 95–89, § 403, added sub- pars. (C) to (E). Subsec. (b)(3). Pub. L. 95–89, § 402, substituted ‘‘pro- gram or project constructed by or with funds provided in whole or in part by the Federal Government or by a program or project by a State or local government or public service entity, providing such government or public service entity has the authority to exercise the right of eminent domain on such program or project’’ for ‘‘federally aided urban renewal program or a high- way project or any other construction constructed by or with funds provided in whole or in part by the Fed- eral Government’’. Subsec. (b)(5). Pub. L. 95–89, § 302, inserted ‘‘heretofore or hereafter enacted’’ after ‘‘any Federal law’’. Subsec. (b)(9). Pub. L. 95–89, § 404, added par. (9). Subsec. (g)(4). Pub. L. 95–89, § 101(e), repealed par. (4) which authorized appropriation of not to exceed $800,000,000 to the disaster fund solely for purpose of carrying out subsec. (g) loans to small business con- cerns for water pollution control facilities. 1976—Subsec. (a)(1). Pub. L. 94–305, § 112(c), inserted reference to non-Federal sources. Subsec. (a)(4)(A). Pub. L. 94–305, § 111, substituted ‘‘$500,000: Provided, That no such loan made or effected either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate basis shall exceed $350,000’’ for ‘‘$350,000’’. Subsec. (a)(4)(C). Pub. L. 94–305, § 108(b), substituted provision relating to a twenty year maturity period for any portion of loan made for the purpose of acquiring real property or constructing facilities for provision re- lating to a ten year maturity for portion of loan made for purpose of constructing facilities. Subsec. (b). Pub. L. 94–305, § 114, in provisions fol- lowing par. (8), substituted provisions requiring inter- est rate on Administration’s share of any loan made under this subsection not to exceed the average annual interest rate on all interest-bearing obligations of the United States then forming a part of the public debt for provisions requiring interest rate on Administration’s share of any loan made under this subsection not to ex- ceed 3 per centum per annum except for loans made under pars. (3), (5), (6), (7), or (8) in which the interest will not exceed either 23⁄4 per centum per annum or the average annual interest rate of all interest-bearing ob- ligations of the United States then forming a part of the public debt. Subsec. (b)(4). Pub. L. 94–305, § 112(d), struck out pro- viso that loans under subsec. (b)(4) of this section in- clude loans to persons who are engaged in business of raising livestock, and who suffer substantial injury as a result of animal disease. Subsec. (i)(1), (3). Pub. L. 94–305, § 109, substituted ‘‘$100,000’’ for ‘‘$50,000’’. 1974—Subsec. (a)(4)(B). Pub. L. 93–386, § 8, substituted provisions for determining the rate of interest for the Administration’s share of any loan for provisions set- ting forth the rate of interest for the Administration’s share of any loan as not more than 51⁄2 per centum per annum. Subsec. (a)(5)(B). Pub. L. 93–386, § 8, substituted provi- sions for determining the rate of interest for the Ad- ministration’s share of any loan for provisions setting forth the rate of interest for the Administration’s share of any loan as not less than 3 nor more than 5 per cen- tum per annum. Subsec. (a)(8). Pub. L. 93–386, § 12, added par. (8). Subsec. (b)(4). Pub. L. 93–237, § 5, inserted proviso that loans under this paragraph include loans to persons who are engaged in the business of raising livestock and who suffer substantial economic injury as a result of animal disease. Subsec. (b)(5) to (7). Pub. L. 93–237, §§ 2(a), (b), 6, con- solidated into a single par. (5) the authority of the Small Business Administration contained in former par. (5) to make loans to small business concerns to meet the requirements of the Federal Coal Mine Health and Safety Act of 1969, the Egg Products Inspection Act, the Wholesome Poultry Products Act, and the Wholesome Meat Act, and former par. (6) to make loans to small business concerns to meet the requirements of the Occupational Safety and Health Act of 1970, ex- Page 864 TITLE 15—COMMERCE AND TRADE § 636 panded such authority to finance structural, oper- ational, or other changes required in order to meet standards imposed by Federal laws, or by State laws enacted in conformity with Federal laws, redesignated former par. (7) as par. (6), and added par. (7). Subsec. (b)(8). Pub. L. 93–386, § 9(a), added par. (8). Subsec. (b). Pub. L. 93–386, § 9(b), substituted ‘‘para- graph (3), (5), (6), (7), or (8)’’ for ‘‘paragraph (3), (5), (6), or (7)’’ in first par. following the numbered pars. Subsecs. (g), (h). Pub. L. 93–237, § 3(a), redesignated subsec. (g), relating to loans to handicapped persons and organizations for handicapped, as (h). Subsec. (h)(2). Pub. L. 93–386, § 3(2), inserted ‘‘The Ad- ministration’s share of’’ before ‘‘any loan’’. Subsecs. (i) to (k). Pub. L. 93–386, § 2(a)(4), added sub- secs. (i) to (k). 1972—Subsec. (b). Pub. L. 92–385 added par. (7), and in text following the numbered paragraphs, inserted pro- visions relating to the administration of the disaster loan program in relation to disasters occurring between January 1, 1971, and July 1, 1973. Subsec. (g). Pub. L. 92–595 added subsec. (g) relating to loans to handicapped persons and organizations for handicapped. Pub. L. 92–500 added subsec. (g) relating to loans to small business concerns for water pollution control fa- cilities. 1970—Subsec. (b). Pub. L. 91–597 added par. (5) relating to loans for additions or alterations required under the Egg Products Inspection Act, etc., and inserted ref- erence to such par. (5). Pub. L. 91–596 added par. (6) and inserted reference to par. (6) after reference to par. (5). 1969—Subsec. (b). Pub. L. 91–173 added par. (5), and in- serted reference to par. (5) after reference to par. (3). 1968—Subsec. (b)(1). Pub. L. 90–448 empowered the Ad- ministration to make loans because of riots or civil dis- orders. Subsec. (b)(3). Pub. L. 90–495 added continuing in busi- ness at its existing location, purchasing a business, and establishing a new business to the list of purposes for which loans may be made, and extended the causes of substantial economic injury of the concern involved to include its location in, adjacent to, or near a federally aided urban renewal program, highway project, or other construction project using federal funds. 1967—Subsec. (a)(4). Pub. L. 90–104, § 103, extended ma- turity date for construction loans from ten to fifteen years. Subsec. (f). Pub. L. 90–104, § 104, redesignated subsec. (e), added by Pub. L. 89–769, as (f). 1966—Subsec. (e). Pub. L. 89–409 added subsec. (e). Pub. L. 89–769 added subsec. (e) which provided for as- sistance to privately owned higher education in major disaster areas and repayment. 1965—Subsec. (b). Pub. L. 89–59, § 1(a), increased the maturity of disaster loans from twenty to thirty years, and authorized suspension of principal and interest payments and extension of date of maturity for five year period. Subsec. (c). Pub. L. 89–59, § 1(b), designated existing provisions as par. (1) and added par. (2). 1964—Subsecs. (b)(2), (4). Pub. L. 88–264 extended pro- visions of par. (2) to any small business affected by dis- asters other than drought or excessive rainfall and added par. (4) for disaster loans to any such business suffering economic injuries through natural or undeter- mined causes. Subsec. (b)(3). Pub. L. 88–560 provided that the pur- poses of a loan under this paragraph may include the purchase or construction of other premises whether or not the borrower owned the premises from which it was displaced. 1961—Subsec. (b). Pub. L. 87–70 added par. (3), and in- serted provisions limiting the interest rate in the case of loans made pursuant to par. (3) to not more than the higher of (A) 23⁄4 per centum per annum, or (B) the aver- age annual interest rate on all interest-bearing obliga- tions forming a part of the public debt as computed at the end of the fiscal year next preceding the date of the loan and adjusted to the nearest one-eighth of 1 per centum, plus one-quarter of 1 per centum per annum. Subsec. (d). Pub. L. 87–305 empowered the Administra- tion to make grants to any corporation formed by two or more eligible entities described in the text, author- ized it to recommend to grant applicants particular studies or research, eliminated the limitation of one grant to a State, and conditioned grants to the pro- curement of additional amounts from sources other than the Administration. 1959—Subsec. (d). Pub. L. 86–367 struck out provision for making the grants from the fund established in the Treasury by section 602(b) of the Small Business Invest- ment Act of 1958. 1958—Subsec. (d). Pub. L. 85–699 added subsec. (d). Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Small Business of Senate changed to Committee on Small Business and Entrepreneurship of Senate. See Senate Resolution No. 123, One Hundred Seventh Congress, June 29, 2001. Previously, Select Committee on Small Business of Senate became Com- mittee on Small Business of Senate. See Senate Reso- lution No. 101, Ninety-Seventh Congress, Mar. 25, 1981. EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 117–2, title V, § 5001(c)(3), Mar. 11, 2021, 135 Stat. 84, provided that: ‘‘The amendments made by this subsection [amending this section and section 636m of this title] shall apply only with respect to applications for forgiveness of covered loans made under paragraphs (36) or (37) of section 7(a) of the Small Business Act [15 U.S.C. 636(a)(36), (37)], as amended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260), that are received on or after the date of the enactment of this Act [Mar. 11, 2021].’’ EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–260, div. N, title III, § 304(c), Dec. 27, 2020, 134 Stat. 1996, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by subsections (a) and (b) [trans- ferring section 9005 of this title to section 636m of this title and amending this section and sections 636m and 9008 of this title] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act [Dec. 27, 2020], including forgiveness of such a loan. ‘‘(2) EXCLUSION OF LOANS ALREADY FORGIVEN.—The amendments made by subsections (a) and (b) shall not apply to a loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) for which the borrower received forgiveness before the date of enact- ment of this Act under section 1106 of the CARES Act [15 U.S.C. 9005], as in effect on the day before such date of enactment.’’ Pub. L. 116–260, div. N, title III, § 308(b), Dec. 27, 2020, 134 Stat. 2000, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursu- ant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enact- ment of this Act [Dec. 27, 2020], including forgiveness of such a loan.’’ Pub. L. 116–260, div. N, title III, § 310(a)(2), Dec. 27, 2020, 134 Stat. 2000, provided that: ‘‘The amendment made by paragraph (1) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of en- actment of this Act [Dec. 27, 2020], including forgive- ness of such a loan.’’ Page 865 TITLE 15—COMMERCE AND TRADE § 636 Pub. L. 116–260, div. N, title III, § 313(b), Dec. 27, 2020, 134 Stat. 2009, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by subsection (a) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act [Dec. 27, 2020], including forgiveness of such a loan. ‘‘(2) EXCLUSION OF LOANS ALREADY FORGIVEN.—The amendments made by subsection (a) shall not apply to a loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) for which the bor- rower received forgiveness before the date of enactment of this Act under section 1106 of the CARES Act [15 U.S.C. 9005], as in effect on the day before such date of enactment.’’ Pub. L. 116–260, div. N, title III, § 315(c), Dec. 27, 2020, 134 Stat. 2011, provided that: ‘‘The amendments made by subsections (a) and (b) [amending this section and section 636m of this title] shall be effective as if in- cluded in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to sec- tion 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act [Dec. 27, 2020], including forgiveness of such a loan.’’ Pub. L. 116–260, div. N, title III, § 326(a)(2), Dec. 27, 2020, 134 Stat. 2036, provided in part that the amend- ment made by section 326(a)(2) of Pub. L. 116–260 is ef- fective Oct. 1, 2021. Pub. L. 116–260, div. N, title III, § 326(b)(2)(B), Dec. 27, 2020, 134 Stat. 2037, provided in part that the amend- ment made by section 326(b)(2)(B) of Pub. L. 116–260 is effective Oct. 1, 2021. Pub. L. 116–260, div. N, title III, § 329(a)(2), Dec. 27, 2020, 134 Stat. 2042, provided in part that the amend- ment made by section 329(a)(2) of Pub. L. 116–260 is ef- fective Oct. 1, 2021. Pub. L. 116–260, div. N, title III, § 335(b), Dec. 27, 2020, 134 Stat. 2047, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursu- ant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enact- ment of this Act [Dec. 27, 2020], including forgiveness of such a loan.’’ Pub. L. 116–260, div. N, title III, § 336(b), Dec. 27, 2020, 134 Stat. 2048, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendment made by subsection (a) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act [Dec. 27, 2020], including forgiveness of such a loan. ‘‘(2) EXCLUSION OF LOANS ALREADY FORGIVEN.—The amendment made by subsection (a) shall not apply to a loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) for which the bor- rower received forgiveness before the date of enactment of this Act under section 1106 of the CARES Act [15 U.S.C. 9005], as in effect on the day before such date of enactment.’’ Pub. L. 116–260, div. N, title III, § 337(b), Dec. 27, 2020, 134 Stat. 2048, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursu- ant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enact- ment of this Act [Dec. 27, 2020], including forgiveness of such a loan.’’ Pub. L. 116–260, div. N, title III, § 338(b), Dec. 27, 2020, 134 Stat. 2048, provided that: ‘‘The amendments made by subsection (a) [amending this section] shall be effec- tive as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of en- actment of this Act [Dec. 27, 2020], including forgive- ness of such a loan.’’ Pub. L. 116–260, div. N, title III, § 339(a), (c), Dec. 27, 2020, 134 Stat. 2049, provided that: ‘‘(a) DEFINITIONS.—In this section [amending this sec- tion and enacting this note], the terms ‘covered loan’ and ‘eligible recipient’ have the meanings given the terms in section 7(a)(36)(A) of the Small Business Act (15 U.S.C. 636(a)(36)(A)). ‘‘(c) APPLICABILITY.—The amendment made by sub- section (b) [amending this section] may apply with re- spect to a covered loan made before the date of enact- ment of this Act [Dec. 27, 2020], upon the agreement of the lender and the eligible recipient with respect to the covered loan.’’ Pub. L. 116–260, div. N, title III, § 340(b)(2), Dec. 27, 2020, 134 Stat. 2050, provided that: ‘‘The amendment made by paragraph (1) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of en- actment of this Act [Dec. 27, 2020], including forgive- ness of such a loan.’’ Pub. L. 116–260, div. N, title III, § 343(b), Dec. 27, 2020, 134 Stat. 2051, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursu- ant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enact- ment of this Act [Dec. 27, 2020], including forgiveness of such a loan.’’ Pub. L. 116–260, div. N, title III, § 348, Dec. 27, 2020, 134 Stat. 2052, provided that: ‘‘Except as otherwise provided in this Act [probably means ‘‘this title’’, title III of div. N of Pub. L. 116–260, see Tables for classification], this Act and the amendments made by this Act shall take effect on the date of enactment of this Act [Dec. 27, 2020] and apply to loans and grants made on or after the date of enactment of this Act.’’ Pub. L. 116–142, § 2(b), June 5, 2020, 134 Stat. 641, pro- vided that: ‘‘The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [June 5, 2020] and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) on or after such date. Nothing in this Act [see Short Title of 2020 Amendment note set out under section 631 of this title], the CARES Act (Public Law 116–136) [see Short Title note set out under section 9001 of this title], or the Pay- check Protection Program and Health Care Enhance- ment Act (Public Law 116–139) [see Short Title of 2020 Amendment note set out under section 9001 of this title] shall be construed to prohibit lenders and bor- rowers from mutually agreeing to modify the maturity terms of a covered loan described in subparagraph (K) of such section [15 U.S.C. 636(a)(36)(K)] to conform with requirements of this section.’’ Pub. L. 116–142, § 3(d), June 5, 2020, 134 Stat. 643, pro- vided that: ‘‘The amendments made by this section [amending this section and section 9005 of this title] shall be effective as if included in the CARES Act (Pub- lic Law 116–136) [see Short Title note set out under sec- tion 9001 of this title] and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) or section 1109 of the CARES Act [15 U.S.C. 9008].’’ Pub. L. 116–136, div. A, title I, § 1102(c)(2), Mar. 27, 2020, 134 Stat. 294, as amended by Pub. L. 116–260, div. N, title III, § 326(b)(1), Dec. 27, 2020, 134 Stat. 2036, pro- vided in part that the amendment made by section 1102(c)(2) of Pub. L. 116–136 is effective on Oct. 1, 2021. EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–92, div. A, title VIII, § 877(b), Dec. 20, 2019, 133 Stat. 1529, provided that: ‘‘The amendments made Page 866 TITLE 15—COMMERCE AND TRADE § 636 by subsection (a)(1) [amending this section] shall apply to an economic injury suffered or likely to be suffered as the result of an essential employee being ordered to perform active service (as defined in section 101(d)(3) of title 10, United States Code) for a period of more than 30 consecutive days who is discharged or released from such active service on or after the date of enactment of this Act [Dec. 20, 2019].’’ EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114–88, div. B, title I, § 2102(b), Nov. 25, 2015, 129 Stat. 690, as amended by Pub. L. 115–280, § 1, Nov. 29, 2018, 132 Stat. 4190; Pub. L. 116–70, § 2, Nov. 22, 2019, 133 Stat. 1145, provided that the amendment made by sec- tion 2102(b) is effective on the date that is 7 years after Nov. 25, 2015. EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–128 effective on the first day of the first full program year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as an Effective Date note under section 3101 of Title 29, Labor. EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–240, title I, § 1111(b), Sept. 27, 2010, 124 Stat. 2508, provided that the amendment made by sec- tion 1111(b) is effective Jan. 1, 2011. Pub. L. 111–240, title I, § 1133(b), Sept. 27, 2010, 124 Stat. 2515, provided that the amendment made by sec- tion 1133(b) is effective Sept. 30, 2013. Pub. L. 111–240, title I, § 1135(b), Sept. 27, 2010, 124 Stat. 2520, provided that the amendment made by sec- tion 1135(b) is effective 1 year after Sept. 27, 2010. Pub. L. 111–240, title I, § 1206(h), Sept. 27, 2010, 124 Stat. 2532, provided that: ‘‘The amendments made by subsections (a) through (f) [amending this section] shall apply with respect to any loan made after the date of enactment of this Act [Sept. 27, 2010].’’ Pub. L. 111–240, title I, § 1401(c), Sept. 27, 2010, 124 Stat. 2549, provided that the amendment made by sec- tion 1401(c)(1) is effective Oct. 1, 2012. EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as other- wise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture. Pub. L. 110–234, title XII, § 12078(b)(2), May 22, 2008, 122 Stat. 1415, and Pub. L. 110–246, § 4(a), title XII, § 12078(b)(2), June 18, 2008, 122 Stat. 1664, 2177, provided that: ‘‘The amendment made by paragraph (1) [amend- ing this section] shall apply with respect to a loan or guarantee made after the date of enactment of this Act [June 18, 2008].’’ [Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.] Pub. L. 110–234, title XII, § 12083(b), May 22, 2008, 122 Stat. 1420, and Pub. L. 110–246, § 4(a), title XII, § 12083(b), June 18, 2008, 122 Stat. 1664, 2182, provided that: ‘‘The amendments made by this section [amending this sec- tion] shall apply to any major disaster declared on or after the date of enactment of this Act [June 18, 2008].’’ [Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.] EFFECTIVE DATE OF 2007 AMENDMENT Amendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an Effective Date note under sec- tion 1824 of Title 2, The Congress. EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–447, div. K, title I, § 101(b), Dec. 8, 2004, 118 Stat. 3443, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall take effect on the date of enactment of this Act [Dec. 8, 2004].’’ Pub. L. 108–447, div. K, title I, § 103(b), Dec. 8, 2004, 118 Stat. 3444, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall take effect on the date of enactment of this Act [Dec. 8, 2004].’’ Pub. L. 108–447, div. K, title I, § 107(c), Dec. 8, 2004, 118 Stat. 3446, provided that: ‘‘The amendments made by this section [amending this section] shall take effect on the date of enactment of this Act [Dec. 8, 2004].’’ EFFECTIVE DATE OF 2001 AMENDMENT Amendment by Pub. L. 107–100 effective Oct. 1, 2002, see section 6(e) of Pub. L. 107–100, set out in an Effec- tive Date of 2001 Amendment; Use of Funds note under section 697 of this title. EFFECTIVE AND TERMINATION DATES OF 1999 AMENDMENTS Pub. L. 106–50, title IV, § 402(e), Aug. 17, 1999, 113 Stat. 246, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section [amending this section] shall take effect on the date of the enactment of this section [Aug. 17, 1999]. ‘‘(2) DISASTER LOANS.—The amendments made by sub- section (b) [amending this section] shall apply to eco- nomic injury suffered or likely to be suffered as the re- sult of a period of military conflict occurring or ending on or after March 24, 1999.’’ Pub. L. 106–8, § 3(c), Apr. 2, 1999, 113 Stat. 16, provided that effective Dec. 31, 2000, this section (amending this section and enacting provisions set out as a note under this section) and the amendments made by this section are repealed. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by section 101(f) [title VIII, § 405(d)(10)] of Pub. L. 105–277 effective Oct. 21, 1998, and amendment by section 101(f) [title VIII, § 405(f)(9)] of Pub. L. 105–277 effective July 1, 2000, see section 101(f) [title VIII, § 405(g)(1), (2)(B)] of Pub. L. 105–277, set out as a note under section 3502 of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–135 effective on Oct. 1, 1997, see section 3 of Pub. L. 105–135, set out as a note under section 631 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–208 effective Oct. 1, 1996, see section 3 of Pub. L. 104–208, set out as a note under section 633 of this title. EFFECTIVE DATE OF 1995 AMENDMENT Amendment by Pub. L. 104–36 inapplicable to loans made or guaranteed under Small Business Act or Small Business Investment Act of 1958 before Oct. 12, 1995, un- less such loans are refinanced, extended, restructured, or renewed on or after Oct. 12, 1995, see section 8 of Pub. L. 104–36, set out as a note under section 634 of this title. EFFECTIVE AND TERMINATION DATES OF 1994 AMENDMENT Pub. L. 103–403, title II, § 208(c), Oct. 22, 1994, 108 Stat. 4182, provided that: ‘‘The amendments made by this section [amending this section] shall remain in effect during the period beginning on the date of enactment of this Act [Oct. 22, 1994] and ending on October 1, 1997.’’ EFFECTIVE DATE OF 1993 AMENDMENT Pub. L. 103–81, § 5(b), Aug. 13, 1993, 107 Stat. 782, pro- vided that: ‘‘Notwithstanding any other provision of law, the amendments made by subsection (a) [amending this section] shall be effective September 1, 1993, but shall not be applicable to loan guarantee applications Page 867 TITLE 15—COMMERCE AND TRADE § 636 received by the Administration prior to August 21, 1993. In order to determine the percent of the loan to be guaranteed pursuant to the amendments made by sub- section (a), the Administration shall aggregate the out- standing guaranteed principal of multiple loan guaran- tees issued on behalf of the same borrower.’’ EFFECTIVE DATE OF 1992 AMENDMENT Pub. L. 102–366, title I, § 113(b), Sept. 4, 1992, 106 Stat. 993, provided that: ‘‘The amendments made by para- graphs (4) and (5) of subsection (a) [amending this sec- tion] shall become effective on October 1, 1992.’’ EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101–37 applicable as if in- cluded in Pub. L. 100–656, see section 32 of Pub. L. 101–37, set out as a note under section 631 of this title. EFFECTIVE DATE OF 1988 AMENDMENTS Amendments by sections 202, 203, 206, 301(a), 408, and 505(h) of Pub. L. 100–656 and subsec. (j)(13)(G) and (I) of this section as added by section 301(b) of Pub. L. 100–656, effective Nov. 15, 1988, see section 803(a) of Pub. L. 100–656, set out as a note under section 631 of this title. Amendments by sections 201(a), 205, 208, 301(b), (c), and 303(a) of Pub. L. 100–656 effective Aug. 15, 1989, see section 803(b)(1)(A), (B) of Pub. L. 100–656, as amended, set out as a note under section 631 of this title. Amendment by section 302 of Pub. L. 100–656 effective June 1, 1989, see section 803(b)(2) of Pub. L. 100–656, as amended, set out as a note under section 631 of this title. Subsection (j)(13)(E) of this section as added by sec- tion 301(b) of Pub. L. 100–656 effective Oct. 1, 1989, see section 803(b)(4)(D) of Pub. L. 100–656, as amended, set out as a note under section 631 of this title. Amendments by sections 119(a) and 120 to 122 of Pub. L. 100–590 effective for all loan applications resulting from disaster declarations made on or after Aug. 1, 1988, or from disaster declarations whose filing periods were open on Oct. 1, 1988, see section 137 of Pub. L. 100–590, set out as a note under section 631 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–270 effective Oct. 1, 1983, see section 313 of Pub. L. 98–270, set out as a note under section 632 of this title. Pub. L. 98–270, title III, § 307, Apr. 18, 1984, 98 Stat. 161, provided that: ‘‘The amendments made by sections 304 and 305 of this title [amending this section and provi- sions set out as a note under section 631 of this title] shall apply to economic dislocations certified by any State Governor to the Small Business Administration after the date of enactment of this Act [Apr. 18, 1984] providing such dislocation commenced since January 1, 1982.’’ Amendment by section 311 of Pub. L. 98–270 applicable to loans granted on the basis of any disaster with re- spect to which a declaration has been issued after Sept. 1, 1982, under subsec. (b)(2)(A), (B), or (C) of this section or with respect to which a certification has been made after such date under subsec. (b)(2)(D) of this section, see section 312 of Pub. L. 98–270, set out as a note under section 632 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Pub. L. 97–35, title XIX, § 1910, Aug. 13, 1981, 95 Stat. 778, provided that the repeal of subsec. (a)(6)(C), (8) of this section is effective Oct. 1, 1985. Amendment by section 1913 of Pub. L. 97–35 effective Oct. 1, 1981, amendments by sections 1902, 1911, 1912, and 1914 of Pub. L. 97–35 effective Aug. 13, 1981, but shall not affect any financing made, obligated, or committed under this chapter or chapter 14B of this title prior to Aug. 13, 1981, see section 1918 of Pub. L. 97–35, set out as a note under section 631 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–302 effective Oct. 1, 1980, see section 507 of Pub. L. 96–302, set out as a note under section 631 of this title. Pub. L. 96–302, title I, § 119(d), July 2, 1980, 94 Stat. 841, provided that: ‘‘The amendments made by this section to sections 7(c)(3)(C) [subsection (c)(3) of this section] and 18 [section 647 of this title] of the Small Business Act shall not apply to any disaster which commenced on or before the effective date of this Act.’’ EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–510 effective Oct. 1, 1979, see section 105 of Pub. L. 95–510, set out as a note under section 634 of this title. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by section 101(d), (e) of Pub. L. 95–89 ef- fective Oct. 1, 1977, see section 106 of Pub. L. 95–89, set out as a note under section 633 of this title. EFFECTIVE DATE OF 1972 AMENDMENT Pub. L. 92–385, § 1(b), Aug. 16, 1972, 86 Stat. 555, pro- vided that: ‘‘The last paragraph of the amendment made by subsection (a) [amending this section] shall apply only with respect to loans made on or after the date of enactment of this Act [Aug. 16, 1972].’’ EFFECTIVE DATE OF 1970 AMENDMENTS For effective date of amendment by Pub. L. 91–597 see section 29 of Pub. L. 91–597, set out as a note under sec- tion 1031 of Title 21, Food and Drugs. Amendment by Pub. L. 91–596 effective 120 days after Dec. 29, 1970, see section 34 of Pub. L. 91–596, set out as a note under section 651 of Title 29, Labor. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90–495 effective Aug. 23, 1968, see section 37 of Pub. L. 90–495, set out as a note under section 101 of Title 23, Highways. EFFECTIVE DATE OF 1966 AMENDMENT Pub. L. 89–409, § 3(c), May 2, 1966, 80 Stat. 133, provided that: ‘‘This section [amending this section, repealing section 637a of this title, and enacting provisions set out as a note under section 633 of this title] shall take effect on July 1, 1966.’’ REGULATIONS Pub. L. 117–249, § 2(b), Dec. 20, 2022, 136 Stat. 2351, pro- vided that: ‘‘Not later than 120 days after the date of enactment of this Act [Dec. 20, 2022], the Administrator of the Small Business Administration shall issue regu- lations to carry out the amendment made by sub- section (a) [amending this section].’’ Pub. L. 116–136, div. A, title I, § 1102(e), Mar. 27, 2020, 134 Stat. 294, provided that: ‘‘On and after the date of enactment of this Act [Mar. 27, 2020], the interim final rule published by the Administrator entitled ‘Express Loan Programs: Affiliation Standards’ (85 Fed. Reg. 7622 (February 10, 2020)) is permanently rescinded and shall have no force or effect.’’ Pub. L. 111–240, title I, § 1131(b), Sept. 27, 2010, 124 Stat. 2514, provided that: ‘‘Not later than 180 days after the date of enactment of this Act [Sept. 27, 2010], the Administrator [of the Small Business Administration] shall issue regulations to carry out section 7(l) of the Small Business Act [15 U.S.C. 636(l)], as amended by subsection (a).’’ Pub. L. 106–50, title IV, § 402(d), Aug. 17, 1999, 113 Stat. 246, provided that: ‘‘Not later than 30 days after the date of the enactment of this section [Aug. 17, 1999], the Administrator of the Small Business Administration shall issue such guidelines as the Administrator deter- mines to be necessary to carry out this section [amend- ing this section and enacting provisions set out as notes under this section] and the amendments made by this section.’’ Page 868 TITLE 15—COMMERCE AND TRADE § 636 Pub. L. 106–8, § 3(b), Apr. 2, 1999, 113 Stat. 15, which provided that not later than 30 days after Apr. 2, 1999, Administrator of the Small Business Administration was to issue guidelines to carry out the program under former subsec. (a)(27) of this section, was repealed by Pub. L. 106–8, § 3(c), Apr. 2, 1999, 113 Stat. 16, effective Dec. 31, 2000. Section 114 of Pub. L. 102–366 provided that: ‘‘Not later than 45 days after the date of enactment of this Act [Sept. 4, 1992], the Small Business Administration shall promulgate interim final regulations to imple- ment the amendments made by this subtitle [subtitle B (§§ 111–115) of title I of Pub. L. 102–366, amending this section, enacting provisions set out as notes below, and amending provisions set out as a note under section 631 of this title].’’ Pub. L. 102–140, title VI, § 609(i), Oct. 28, 1991, 105 Stat. 831, provided that: ‘‘Not later than 90 days after the date of the enactment of this Act [Oct. 28, 1991], the Small Business Administration shall promulgate in- terim final regulations to implement the microloan demonstration program.’’ Pub. L. 100–656, title VIII, § 801, Nov. 15, 1988, 102 Stat. 3898, as amended by Pub. L. 101–37, § 30, June 15, 1989, 103 Stat. 76, provided that: ‘‘The Small Business Adminis- tration shall— ‘‘(1) within 60 days after the date of enactment of this Act [Nov. 15, 1988] conduct meetings of present and potential participants in the program established by section 7(j)(10) of the Small Business Act [15 U.S.C. 636(j)(10)], as amended by this Act, to ascertain and consider public comment on the nature and extent of regulations needed to implement this Act [see Short Title of 1988 Amendment note set out under section 631 of this title]; ‘‘(2) within one hundred and twenty days after the date of enactment of this Act, publish in the Federal Register proposed rules and regulations imple- menting this Act; and ‘‘(3) within 270 days after the date of enactment of this Act, publish in the Federal Register final rules and regulations implementing this Act.’’ TERMINATION OF REPORTING REQUIREMENTS For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which reports required under subsections (a)(15)(E) and (j)(16)(B) of this section are listed on page 191), see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance. TRANSFER OF FUNCTIONS For transfer of all functions, personnel, assets, com- ponents, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emer- gency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security. For transfer of functions, personnel, assets, and li- abilities of the Federal Emergency Management Agen- cy, including the functions of the Director of the Fed- eral Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treat- ment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. RESTRICTION Pub. L. 117–6, § 2(c), Mar. 30, 2021, 135 Stat. 250, pro- vided that: ‘‘From June 1, 2021, through June 30, 2021, the Administrator of the Small Business Administra- tion shall not accept new lender applications for loans under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and shall only process such lender applications that have been submitted to the Administrator before June 1, 2021.’’ SUBSEQUENT PAYCHECK PROTECTION PROGRAM LOANS Pub. L. 116–260, div. N, title II, § 276(b), Dec. 27, 2020, 134 Stat. 1979, provided that: ‘‘For purposes of the Inter- nal Revenue Code of 1986 [26 U.S.C. 1 et seq.], in the case of any taxable year ending after the date of the en- actment of this Act [Dec. 27, 2020]— ‘‘(1) no amount shall be included in the gross in- come of an eligible entity (within the meaning of sub- paragraph (J) of section 7(a)(37) of the Small Business Act [15 U.S.C. 636(a)(37)]) by reason of forgiveness of indebtedness described in clause (ii) of such subpara- graph, ‘‘(2) no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be de- nied, by reason of the exclusion from gross income provided by paragraph (1), and ‘‘(3) in the case of an eligible entity that is a part- nership or S corporation— ‘‘(A) any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt in- come for purposes of sections 705 and 1366 of the In- ternal Revenue Code of 1986 [26 U.S.C. 705, 1366], and ‘‘(B) except as provided by the Secretary of the Treasury (or the Secretary’s delegate), any increase in the adjusted basis of a partner’s interest in a partnership under section 705 of the Internal Rev- enue Code of 1986 with respect to any amount de- scribed in subparagraph (A) shall equal the part- ner’s distributive share of deductions resulting from costs giving rise to the forgiveness of indebt- edness referred to in paragraph (1).’’ DEMOGRAPHIC INFORMATION ON LOAN APPLICATIONS Pub. L. 116–260, div. N, title III, § 309, Dec. 27, 2020, 134 Stat. 2000, provided that: ‘‘On and after the date of en- actment of this Act [Dec. 27, 2020], any loan origination application for a loan under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as amended and added by this division, shall include a means by which the applicant for the loan may, at the discretion of the applicant, submit demographic infor- mation of the owner of the recipient of the loan, includ- ing the sex, race, ethnicity, and veteran status of the owner.’’ ELIGIBLE CHURCHES AND RELIGIOUS ORGANIZATIONS Pub. L. 116–260, div. N, title III, § 311(c), Dec. 27, 2020, 134 Stat. 2007, provided that: ‘‘(1) SENSE OF CONGRESS.—It is the sense of Congress that the interim final rule of the [Small Business] Ad- ministration entitled ‘Business Loan Program Tem- porary Changes; Paycheck Protection Program’ (85 Fed. Reg. 20817 (April 15, 2020)) properly clarified the eligibility of churches and religious organizations for loans made under paragraph (36) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)). ‘‘(2) APPLICABILITY OF PROHIBITION.—The prohibition on eligibility established by section 120.110(k) of title 13, Code of Federal Regulations, or any successor regu- lation, shall not apply to a loan under paragraph (36) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)).’’ INCREASED ABILITY FOR PAYCHECK PROTECTION PRO- GRAM BORROWERS TO REQUEST AN INCREASE IN LOAN AMOUNT DUE TO UPDATED REGULATIONS Pub. L. 116–260, div. N, title III, § 312, Dec. 27, 2020, 134 Stat. 2007, provided that: ‘‘(a) DEFINITIONS.—In this section— ‘‘(1) the terms ‘covered loan’ and ‘eligible recipient’ have the meanings given those terms in 7(a)(36)(A) of the Small Business Act (15 U.S.C. 636(a)(36)(A)); and ‘‘(2) the term ‘included covered loan’ means a cov- ered loan for which, as of the date of enactment of this Act [Dec. 27, 2020], the borrower had not received forgiveness under section 1106 of the CARES Act [15 Page 869 TITLE 15—COMMERCE AND TRADE § 636 U.S.C. 9005], as in effect on the day before such date of enactment. ‘‘(b) RULES OR GUIDANCE.—Not later than 17 days after the date of enactment of this Act, and without re- gard to the notice requirements under section 553(b) of title 5, United States Code, the Administrator [of the Small Business Administration] shall issue rules or guidance to ensure that an eligible recipient of an in- cluded covered loan that returns amounts disbursed under the included covered loan or does not accept the full amount of the included covered loan for which the eligible recipient was approved— ‘‘(1) in the case of an eligible recipient that re- turned all or part of an included covered loan, the eli- gible recipient may reapply for a covered loan for an amount equal to the difference between the amount retained and the maximum amount applicable; and ‘‘(2) in the case of an eligible recipient that did not accept the full amount of an included covered loan, the eligible recipient may request a modification to increase the amount of the covered loan to the max- imum amount applicable, subject to the requirements of section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)). ‘‘(c) INTERIM FINAL RULES.—Notwithstanding the in- terim final rule issued by the Administration entitled ‘Business Loan Program Temporary Changes; Paycheck Protection Program—Loan Increases’ (85 Fed. Reg. 29842 (May 19, 2020)), an eligible recipient of an included covered loan that is eligible for an increased covered loan amount as a result of any interim final rule that allows for covered loan increases may submit a request for an increase in the included covered loan amount even if— ‘‘(1) the initial covered loan amount has been fully disbursed; or ‘‘(2) the lender of the initial covered loan has sub- mitted to the [Small Business] Administration a Form 1502 report related to the covered loan.’’ FARM CREDIT SYSTEM INSTITUTIONS Pub. L. 116–260, div. N, title III, § 314, Dec. 27, 2020, 134 Stat. 2009, provided that: ‘‘(a) DEFINITION OF FARM CREDIT SYSTEM INSTITU- TION.—In this section, the term ‘Farm Credit System institution’— ‘‘(1) means an institution of the Farm Credit Sys- tem chartered under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); and ‘‘(2) does not include the Federal Agricultural Mortgage Corporation. ‘‘(b) FACILITATION OF PARTICIPATION IN PPP AND SEC- OND DRAW LOANS.— ‘‘(1) APPLICABLE RULES.—Solely with respect to loans under paragraphs (36) and (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), Farm Credit Administration regulations and guidance issued as of July 14, 2020, and compliance with such regulations and guidance, shall be deemed functionally equiva- lent to requirements referenced in section 3(a)(iii)(II) of the interim final rule of the [Small Business] Ad- ministration entitled ‘Business Loan Program Tem- porary Changes; Paycheck Protection Program’ (85 Fed. Reg. 20811 (April 15, 2020)) or any similar require- ment referenced in that interim final rule in imple- menting such paragraph (37). ‘‘(2) APPLICABILITY OF CERTAIN LOAN REQUIRE- MENTS.—For purposes of making loans under para- graph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) or forgiving those loans in ac- cordance with section 7A of the Small Business Act [15 U.S.C. 636m], as redesignated and transferred by section 304 of this Act, and subparagraph (J) of such paragraph (37), sections 4.13, 4.14, and 4.14A of the Farm Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a) (including regulations issued under those sections) shall not apply. ‘‘(3) RISK WEIGHT.— ‘‘(A) IN GENERAL.—With respect to the application of Farm Credit Administration capital require- ments, a loan described in subparagraph (B)— ‘‘(i) shall receive a risk weight of zero percent; and ‘‘(ii) shall not be included in the calculation of any applicable leverage ratio or other applicable capital ratio or calculation. ‘‘(B) LOANS DESCRIBED.—A loan referred to in sub- paragraph (A) is— ‘‘(i) a loan made by a Farm Credit Bank de- scribed in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)) to a Federal Land Bank As- sociation, a Production Credit Association, or an agricultural credit association described in that section to make loans under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) or forgive those loans in accordance with section 7A of the Small Business Act [15 U.S.C. 636m], as redesignated and transferred by section 304 of this Act, and subparagraph (J) of such paragraph (37); or ‘‘(ii) a loan made by a Federal Land Bank Asso- ciation, a Production Credit Association, an agri- cultural credit association, or the bank for co- operatives described in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)) under para- graph (36) or (37) of section 7(a) of the Small Busi- ness Act (15 U.S.C. 636(a)). ‘‘(c) EFFECTIVE DATE; APPLICABILITY.—This section shall be effective as if included in the CARES Act (Pub- lic Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act [Dec. 27, 2020], includ- ing forgiveness of such a loan.’’ CONFLICTS OF INTEREST Pub. L. 116–260, div. N, title III, § 322, Dec. 27, 2020, 134 Stat. 2017, provided that: ‘‘(a) DEFINITIONS.—In this section: ‘‘(1) CONTROLLING INTEREST.—The term ‘controlling interest’ means owning, controlling, or holding not less than 20 percent, by vote or value, of the out- standing amount of any class of equity interest in an entity. ‘‘(2) COVERED ENTITY.— ‘‘(A) DEFINITION.—The term ‘covered entity’ means an entity in which a covered individual di- rectly or indirectly holds a controlling interest. ‘‘(B) TREATMENT OF SECURITIES.—For the purpose of determining whether an entity is a covered enti- ty, the securities owned, controlled, or held by 2 or more individuals who are related as described in paragraph (3)(B) shall be aggregated. ‘‘(3) COVERED INDIVIDUAL.—The term ‘covered indi- vidual’ means— ‘‘(A) the President, the Vice President, the head of an Executive department, or a Member of Con- gress; and ‘‘(B) the spouse, as determined under applicable common law, of an individual described in subpara- graph (A). ‘‘(4) EXECUTIVE DEPARTMENT.—The term ‘Executive department’ has the meaning given the term in sec- tion 101 of title 5, United States Code. ‘‘(5) MEMBER OF CONGRESS.—The term ‘Member of Congress’ means a Member of the Senate or House of Representatives, a Delegate to the House of Rep- resentatives, and the Resident Commissioner from Puerto Rico. ‘‘(6) EQUITY INTEREST.—The term ‘equity interest’ means— ‘‘(A) a share in an entity, without regard to whether the share is— ‘‘(i) transferable; or ‘‘(ii) classified as stock or anything similar; ‘‘(B) a capital or profit interest in a limited li- ability company or partnership; or ‘‘(C) a warrant or right, other than a right to con- vert, to purchase, sell, or subscribe to a share or in- terest described in subparagraph (A) or (B), respec- tively. Page 870 TITLE 15—COMMERCE AND TRADE § 636 ‘‘(b) REQUIREMENT FOR DISCLOSURE REGARDING EXIST- ING LOANS.—For any loan under paragraph (36) of sec- tion 7(a) of the Small Business Act (15 U.S.C. 636(a)) made to a covered entity before the date of enactment of this Act [Dec. 27, 2020]— ‘‘(1) if, before the date of enactment of this Act, the covered entity submitted an application for forgive- ness under section 1106 of the CARES Act (15 U.S.C. 9005) (as such section was in effect on the day before the date of enactment of this Act) with respect to such loan, not later than 30 days after the date of en- actment of this Act, the principal executive officer, or individual performing a similar function, of the covered entity shall disclose to the Administrator that the entity is a covered entity; and ‘‘(2) if, on or after the date of enactment of this Act, the covered entity submits an application for forgiveness under section 7A of the Small Business Act [15 U.S.C. 636m], as redesignated and transferred by section 304 of this Act, with respect to such loan, not later than 30 days after submitting the applica- tion, the principal executive officer, or individual performing a similar function, of the covered entity shall disclose to the Administrator [of the Small Business Administration] that the entity is a covered entity. ‘‘(c) BAN ON NEW LOANS.—On and after the date of en- actment of this Act [Dec. 27, 2020], a loan under para- graph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added and amended by this Act, may not be made to a covered entity.’’ TEMPORARY ADMINISTRATIVE FEE WAIVER Pub. L. 116–260, div. N, title III, § 327(a), Dec. 27, 2020, 134 Stat. 2037, provided that: ‘‘(1) IN GENERAL.—During the period beginning on the date of enactment of this Act [Dec. 27, 2020] and ending on September 30, 2021, and to the extent that the cost of such elimination or reduction of fees is offset by ap- propriations, with respect to each loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) (including a recipient of assistance under the Community Advantage Pilot Program of the [Small Business] Administration) for which an application is approved or pending approval on or after the date of en- actment of this Act, the Administrator [of the Small Business Administration] shall— ‘‘(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)), collect no fee or reduce fees to the maximum extent possible; and ‘‘(B) 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. ‘‘(2) APPLICATION OF FEE ELIMINATIONS OR REDUC- TIONS.—To the extent that amounts are made available to the Administrator for the purpose of fee elimi- nations or reductions under paragraph (1), the Adminis- trator shall— ‘‘(A) first use any amounts provided to eliminate or reduce fees paid by small business borrowers under clauses (i) through (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; and ‘‘(B) then use any amounts provided to eliminate or reduce fees under 7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)).’’ TEMPORARY WAIVER OF TECHNICAL ASSISTANCE GRANTS MATCHING REQUIREMENTS AND FLEXIBILITY ON PRE- AND POST-LOAN ASSISTANCE Pub. L. 116–260, div. N, title III, § 329(b), Dec. 27, 2020, 134 Stat. 2042, provided that: ‘‘During the period begin- ning on the date of enactment of this Act [Dec. 27, 2020] and ending on September 30, 2021, the [Small Business] Administration shall waive— ‘‘(1) the requirement to contribute non-Federal funds under section 7(m)(4)(B) of the Small Business Act (15 U.S.C. 636(m)(4)(B)); and ‘‘(2) the limitation on amounts allowed to be ex- pended to provide information and technical assist- ance under clause (i) of section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 636(m)(4)(E)) and enter into third party contracts for the provision of tech- nical assistance under clause (ii) of such section 7(m)(4)(E).’’ TEMPORARY DURATION OF LOANS TO BORROWERS Pub. L. 116–260, div. N, title III, § 329(c), Dec. 27, 2020, 134 Stat. 2042, provided that: ‘‘(1) IN GENERAL.—During the period beginning on the date of enactment of this Act [Dec. 27, 2020] and ending on September 30, 2021, the duration of a loan made by an eligible intermediary under section 7(m) of the Small Business Act (15 U.S.C. 636(m))— ‘‘(A) to an existing borrower may be extended to not more than 8 years; and ‘‘(B) to a new borrower may be not more than 8 years. ‘‘(2) REVERSION.—On and after October 1, 2021, the du- ration of a loan made by an eligible intermediary to a borrower under section 7(m) of the Small Business Act (15 U.S.C. 636(m)) shall be 7 years or such other amount established by the Administrator [of the Small Busi- ness Administration].’’ FINDINGS Pub. L. 114–88, div. A, § 1002, Nov. 25, 2015, 129 Stat. 687, provided that: ‘‘Congress finds the following: ‘‘(1) In 2012, Superstorm Sandy caused substantial physical and economic damage to the United States, and New York in particular. ‘‘(2) For businesses and homeowners, the primary means of obtaining long-term Federal financial as- sistance in the wake of disasters such as Superstorm Sandy is through the Small Business Administra- tion’s Disaster Loan Program. ‘‘(3) With regard to the Small Business Administra- tion’s operation of the Disaster Loan Program after Superstorm Sandy, the Government Accountability Office found that the Administration did not meet its timeliness goals for processing business loan applica- tions. ‘‘(4) According to the Government Accountability Office, the Small Business Administration stated that it was challenged by an unexpectedly high vol- ume of loan applications that it received early in its response to Superstorm Sandy. ‘‘(5) As a result, many businesses and homeowners affected by Superstorm Sandy were unable to apply for financing from the Small Business Administra- tion.’’ AVAILABILITY OF FUNDS Pub. L. 111–240, title I, § 1131(c), Sept. 27, 2010, 124 Stat. 2514, provided that: ‘‘Any amounts provided to the Administrator [of the Small Business Administration] for the purposes of carrying out section 7(l) of the Small Business Act [15 U.S.C. 636(l)], as amended by subsection (a), shall remain available until expended.’’ MARKETING AND OUTREACH Pub. L. 110–234, title XII, § 12063(b), May 22, 2008, 122 Stat. 1408, and Pub. L. 110–246, § 4(a), title XII, § 12063(b), June 18, 2008, 122 Stat. 1664, 2170, provided that: ‘‘Not later than 90 days after the date of enactment of this Act [June 18, 2008], the Administrator shall create a marketing and outreach plan that— ‘‘(1) encourages a proactive approach to the disaster relief efforts of the Administration; ‘‘(2) makes clear the services provided by the Ad- ministration, including contact information, applica- tion information, and timelines for submitting appli- cations, the review of applications, and the disburse- ment of funds; ‘‘(3) describes the different disaster loan programs of the Administration, including how they are made available and the eligibility requirements for each loan program; Page 871 TITLE 15—COMMERCE AND TRADE § 636 ‘‘(4) provides for regional marketing, focusing on disasters occurring in each region before the date of enactment of this Act [June 18, 2008], and likely sce- narios for disasters in each such region; and ‘‘(5) ensures that the marketing plan is made avail- able at small business development centers and on the website of the Administration.’’ [Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.] [‘‘Administration’’ and ‘‘Administrator’’, referred to in Pub. L. 110–246, § 12063(b), set out above, as meaning the Small Business Administration and the Adminis- trator thereof, see section 636e of this title.] DEFINITION OF TERMS USED IN PUB. L. 110–186 Pub. L. 110–186, § 3, Feb. 14, 2008, 122 Stat. 623, provided that: ‘‘In this Act [see Short Title of 2008 Amendment note set out under section 631 of this title]— ‘‘(1) the term ‘activated’ means receiving an order placing a Reservist on active duty; ‘‘(2) the term ‘active duty’ has the meaning given that term in section 101 of title 10, United States Code; ‘‘(3) the terms ‘Administration’ and ‘Administrator’ mean the Small Business Administration and the Ad- ministrator thereof, respectively; ‘‘(4) the term ‘Reservist’ means a member of a re- serve component of the Armed Forces, as described in section 10101 of title 10, United States Code; ‘‘(5) the term ‘Service Corps of Retired Executives’ means the Service Corps of Retired Executives au- thorized by section 8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1)); ‘‘(6) the terms ‘service-disabled veteran’ and ‘small business concern’ have the meaning as in section 3 of the Small Business Act (15 U.S.C. 632); ‘‘(7) the term ‘small business development center’ means a small business development center described in section 21 of the Small Business Act (15 U.S.C. 648); and ‘‘(8) the term ‘women’s business center’ means a women’s business center described in section 29 of the Small Business Act (15 U.S.C. 656).’’ ESTABLISHMENT OF PRE-CONSIDERATION PROCESS AND OUTREACH AND TECHNICAL ASSISTANCE PROGRAM Pub. L. 110–186, title II, § 201(b), (c), Feb. 14, 2008, 122 Stat. 627, 628, provided that: ‘‘(b) PRE-CONSIDERATION PROCESS.— ‘‘(1) DEFINITION.—In this subsection, the term ‘eligi- ble Reservist’ means a Reservist who— ‘‘(A) has not been ordered to active duty; ‘‘(B) expects to be ordered to active duty during a period of military conflict; and ‘‘(C) can reasonably demonstrate that the small business concern for which that Reservist is a key employee will suffer economic injury in the absence of that Reservist. ‘‘(2) ESTABLISHMENT.—Not later than 6 months after the date of enactment of this Act [Feb. 14, 2008], the Administrator shall establish a pre-consideration process, under which the Administrator— ‘‘(A) may collect all relevant materials necessary for processing a loan to a small business concern under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) before an eligible Reservist em- ployed by that small business concern is activated; and ‘‘(B) shall distribute funds for any loan approved under subparagraph (A) if that eligible Reservist is activated. ‘‘(c) OUTREACH AND TECHNICAL ASSISTANCE PRO- GRAM.— ‘‘(1) IN GENERAL.—Not later than 6 months after the date of enactment of this Act [Feb. 14, 2008], the Ad- ministrator, in consultation with the Secretary of Veterans Affairs and the Secretary of Defense, may develop a comprehensive outreach and technical as- sistance program (in this subsection referred to as the ‘program’) to— ‘‘(A) market the loans available under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) to Reservists, and family members of Reservists, that are on active duty and that are not on active duty; and ‘‘(B) provide technical assistance to a small busi- ness concern applying for a loan under that section. ‘‘(2) COMPONENTS.—The program shall— ‘‘(A) incorporate appropriate websites maintained by the Administration, the Department of Veterans Affairs, and the Department of Defense; and ‘‘(B) require that information on the program is made available to small business concerns directly through— ‘‘(i) the district offices and resource partners of the Administration, including small business de- velopment centers, women’s business centers, and the Service Corps of Retired Executives; and ‘‘(ii) other Federal agencies, including the De- partment of Veterans Affairs and the Department of Defense. ‘‘(3) REPORT.— ‘‘(A) IN GENERAL.—Not later than 6 months after the date of enactment of this Act, and every 6 months thereafter until the date that is 30 months after such date of enactment, the Administrator shall submit to Congress a report on the status of the program. ‘‘(B) CONTENTS.—Each report submitted under subparagraph (A) shall include— ‘‘(i) for the 6-month period ending on the date of that report— ‘‘(I) the number of loans approved under sec- tion 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)); ‘‘(II) the number of loans disbursed under that section; and ‘‘(III) the total amount disbursed under that section; and ‘‘(ii) recommendations, if any, to make the pro- gram more effective in serving small business concerns that employ Reservists.’’ RESERVIST LOANS Pub. L. 110–186, title II, § 202, Feb. 14, 2008, 122 Stat. 629, provided that: ‘‘(a) IN GENERAL.—The Administrator and the Sec- retary of Defense shall develop a joint website and printed materials providing information regarding any program for small business concerns that is available to veterans or Reservists. ‘‘(b) MARKETING.—The Administrator is authorized— ‘‘(1) to advertise and promote the program under section 7(b)(3) of the Small Business Act [15 U.S.C. 636(b)(3)] jointly with the Secretary of Defense and veterans’ service organizations; and ‘‘(2) to advertise and promote participation by lend- ers in such program jointly with trade associations for banks or other lending institutions.’’ TEMPORARY EXTENSION AND EXPANSION OF LOAN PROGRAMS Pub. L. 108–217, §§ 4–8, Apr. 5, 2004, 118 Stat. 591–594, provided for the temporary extension and expansion of certain loan programs under 15 U.S.C. 636(a) beginning on Apr. 5, 2004, and ending on Sept. 30, 2004. BUDGETARY TREATMENT OF LOANS AND FINANCINGS Pub. L. 107–100, § 6(c), Dec. 21, 2001, 115 Stat. 971, pro- vided for special budgetary treatment of certain loans and financings by the Small Business Administration under 15 U.S.C. 636(a) during the 2-year period begin- ning on Oct. 1, 2002. ENHANCED PUBLICITY DURING OPERATION ALLIED FORCE Pub. L. 106–50, title IV, § 402(c), Aug. 17, 1999, 113 Stat. 246, provided for enhanced publicity of the availability Page 872 TITLE 15—COMMERCE AND TRADE § 636 of assistance during Operation Allied Force and for 120 days thereafter. EVALUATION OF PREDISASTER MITIGATION PILOT PROGRAM Pub. L. 106–24, § 1(c), Apr. 27, 1999, 113 Stat. 39, pro- vided that, on Jan. 31, 2003, the Administrator of the Small Business Administration was to submit to the Committees on Small Business of the House of Rep- resentatives and the Senate a report on the effective- ness of the pilot program authorized by subsec. (b)(1)(C) of this section. CONGRESSIONAL FINDINGS REGARDING SMALL BUSINESS YEAR 2000 READINESS Pub. L. 106–8, § 2, Apr. 2, 1999, 113 Stat. 13, provided that: ‘‘Congress finds that— ‘‘(1) the failure of many computer programs to rec- ognize the Year 2000 may have extreme negative fi- nancial consequences in the Year 2000, and in subse- quent years for both large and small businesses; ‘‘(2) small businesses are well behind larger busi- nesses in implementing corrective changes to their automated systems; ‘‘(3) many small businesses do not have access to capital to fix mission critical automated systems, which could result in severe financial distress or fail- ure for small businesses; and ‘‘(4) the failure of a large number of small busi- nesses due to the Year 2000 computer problem would have a highly detrimental effect on the economy in the Year 2000 and in subsequent years.’’ TRANSFER OF FUNDS Pub. L. 105–135, title II, § 202(b), Dec. 2, 1997, 111 Stat. 2600, provided that: ‘‘(1) IN GENERAL.—No funds are authorized to be ap- propriated or otherwise provided to carry out the grant program under section 7(m)(4)(F) of the Small Business Act (15 U.S.C. 636(m)(4)(F)) (as added by this section), except by transfer from another department or agency of the Federal Government to the Administration in accordance with this subsection. ‘‘(2) LIMITATION ON AMOUNTS.—The total amount transferred to the Administration from other depart- ments and agencies of the Federal Government to carry out the grant program under section 7(m)(4)(F) of the Small Business Act (15 U.S.C. 636(m)(4)(F)) (as added by this section) shall not exceed— ‘‘(A) $3,000,000 for fiscal year 1998; ‘‘(B) $4,000,000 for fiscal year 1999; and ‘‘(C) $5,000,000 for fiscal year 2000.’’ DEFENSE LOAN AND TECHNICAL ASSISTANCE PROGRAM Pub. L. 105–135, title V, § 507, Dec. 2, 1997, 111 Stat. 2625, provided that: ‘‘(a) DELTA PROGRAM AUTHORIZED.— ‘‘(1) IN GENERAL.—The Administrator may admin- ister the Defense Loan and Technical Assistance pro- gram in accordance with the authority and require- ments of this section. ‘‘(2) EXPIRATION OF AUTHORITY.—The authority of the Administrator to carry out the DELTA program under paragraph (1) shall terminate when the funds referred to in subsection (g)(1) have been expended. ‘‘(3) DELTA PROGRAM DEFINED.—In this section, the terms ‘Defense Loan and Technical Assistance pro- gram’ and ‘DELTA program’ mean the Defense Loan and Technical Assistance program that has been es- tablished by a memorandum of understanding entered into by the Administrator and the Secretary of De- fense on June 26, 1995. ‘‘(b) ASSISTANCE.— ‘‘(1) AUTHORITY.—Under the DELTA program, the Administrator may assist small business concerns that are economically dependent on defense expendi- tures to acquire dual-use capabilities. ‘‘(2) FORMS OF ASSISTANCE.—Forms of assistance au- thorized under paragraph (1) are as follows: ‘‘(A) LOAN GUARANTEES.—Loan guarantees under the terms and conditions specified under this sec- tion and other applicable law. ‘‘(B) NONFINANCIAL ASSISTANCE.—Other forms of assistance that are not financial. ‘‘(c) ADMINISTRATION OF PROGRAM.—In the adminis- tration of the DELTA program under this section, the Administrator shall— ‘‘(1) process applications for DELTA program loan guarantees; ‘‘(2) guarantee repayment of the resulting loans in accordance with this section; and ‘‘(3) take such other actions as are necessary to ad- minister the program. ‘‘(d) SELECTION AND ELIGIBILITY REQUIREMENTS FOR DELTA LOAN GUARANTEES.— ‘‘(1) IN GENERAL.—The selection criteria and eligi- bility requirements set forth in this subsection shall be applied in the selection of small business concerns to receive loan guarantees under the DELTA pro- gram. ‘‘(2) SELECTION CRITERIA.—The criteria used for the selection of a small business concern to receive a loan guarantee under this section are as follows: ‘‘(A) The selection criteria established under the memorandum of understanding referred to in sub- section (a)(3). ‘‘(B) The extent to which the loans to be guaran- teed would support the retention of defense workers whose employment would otherwise be perma- nently or temporarily terminated as a result of re- ductions in expenditures by the United States for defense, the termination or cancellation of a de- fense contract, the failure to proceed with an ap- proved major weapon system, the merger or con- solidation of the operations of a defense contractor, or the closure or realignment of a military installa- tion. ‘‘(C) The extent to which the loans to be guaran- teed would stimulate job creation and new eco- nomic activities in communities most adversely af- fected by reductions in expenditures by the United States for defense, the termination or cancellation of a defense contract, the failure to proceed with an approved major weapon system, the merger or con- solidation of the operations of a defense contractor, or the closure or realignment of a military installa- tion. ‘‘(D) The extent to which the loans to be guaran- teed would be used to acquire (or permit the use of other funds to acquire) capital equipment to mod- ernize or expand the facilities of the borrower to enable the borrower to remain in the national tech- nology and industrial base available to the Depart- ment of Defense. ‘‘(3) ELIGIBILITY REQUIREMENTS.—To be eligible for a loan guarantee under the DELTA program, a bor- rower must demonstrate to the satisfaction of the Administrator that, during any 1 of the 5 preceding operating years of the borrower, not less than 25 per- cent of the value of the borrower’s sales were derived from— ‘‘(A) contracts with the Department of Defense or the defense-related activities of the Department of Energy; or ‘‘(B) subcontracts in support of defense-related prime contracts. ‘‘(e) MAXIMUM AMOUNT OF LOAN PRINCIPAL.—With re- spect to each borrower, the maximum amount of loan principal for which the Administrator may provide a guarantee under this section during a fiscal year may not exceed $1,250,000. ‘‘(f) LOAN GUARANTY RATE.—The maximum allowable guarantee percentage for loans guaranteed under this section may not exceed 80 percent. ‘‘(g) FUNDING.— ‘‘(1) IN GENERAL.—The funds that have been made available for loan guarantees under the DELTA pro- gram and have been transferred from the Department of Defense to the Small Business Administration be- Page 873 TITLE 15—COMMERCE AND TRADE § 636 fore the date of the enactment of this Act [Dec. 2, 1997] shall be used for carrying out the DELTA pro- gram under this section. ‘‘(2) CONTINUED AVAILABILITY OF EXISTING FUNDS.— The funds made available under the second proviso under the heading ‘RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE’ in Public Law 103–335 (108 Stat. 2613) shall be available until ex- pended— ‘‘(A) to cover the costs (as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan guarantees issued under this section; and ‘‘(B) to cover the reasonable costs of the adminis- tration of the loan guarantees.’’ TRADE ASSISTANCE PROGRAM FOR SMALL BUSINESS CONCERNS ADVERSELY AFFECTED BY NAFTA Section 509 of Pub. L. 105–135 provided that: ‘‘The Ad- ministrator shall coordinate Federal assistance in order to provide counseling to small business concerns adversely affected by the North American Free Trade Agreement.’’ PRIVATE SECTOR LOAN SERVICING DEMONSTRATION PROGRAM Pub. L. 104–208, div. D, title I, § 104(a), Sept. 30, 1996, 110 Stat. 3009–729, provided that: ‘‘(1) IN GENERAL.— ‘‘(A) DEMONSTRATION PROGRAM REQUIRED.—Notwith- standing any other provision of law, the Administra- tion shall conduct a demonstration program, within the parameters described in paragraph (2), to evalu- ate the comparative costs and benefits of having the Administration’s portfolio of disaster loans serviced under contract rather than directly by employees of the Administration. All costs of the demonstration program shall be paid from amounts made available for the Salaries and Expenses Account of the Admin- istration. ‘‘(B) INITIATION DATE.—Not later than 90 days after the date of enactment of this Act [Sept. 30, 1996], the Administration shall issue a request for proposals for the program parameters described in paragraph (2). ‘‘(2) DEMONSTRATION PROGRAM PARAMETERS.— ‘‘(A) LOAN SAMPLE.—The sample of loans for the demonstration program shall be randomly drawn from the Administration’s portfolio of loans made pursuant to section 7(b) of the Small Business Act [15 U.S.C. 636(b)] and shall include a representative group of not less than 30 percent of all loans for residential properties, including 30 percent of all loans made dur- ing the demonstration program after the date of en- actment of this Act, which loans shall be selected by the Administration on the basis of geographic dis- tribution and such other factors as the Administra- tion determines to be appropriate. ‘‘(B) CONTRACT AND OPTIONS.—The Administration shall solicit and competitively award one or more contracts to service the loans included in the sample of loans described in subparagraph (A) for a term of not less than one year, with 3 one-year contract re- newal options, each of which shall be exercised by the Administration unless the Administration terminates the contractor or contractors for good cause. ‘‘(3) TERM OF DEMONSTRATION PROGRAM.—The dem- onstration program shall commence not later than Oc- tober 1, 1997. ‘‘(4) REPORTS.— ‘‘(A) INTERIM REPORTS.—Not later than 120 days be- fore the expiration of the initial 4-year contract per- formance period, the Administrator shall submit to the Committees on Small Business of the House of Representatives and the Senate [Committee on Small Business of Senate now Committee on Small Business and Entrepreneurship of Senate] an interim report on the conduct of the demonstration program. The con- tractor shall be afforded a reasonable opportunity to attach comments to each such report. ‘‘(B) FINAL REPORT.—Not later than 120 days after the termination of the demonstration program, the Administrator shall submit to the Committees on Small Business of the House of Representatives and the Senate [Committee on Small Business of Senate now Committee on Small Business and Entrepreneur- ship of Senate] a final report on the performance of the demonstration program, together with the rec- ommendations of the Administrator for continuation, termination, or modification of the demonstration program.’’ INCREASE OF AMOUNTS FOR DISASTER LOANS Pub. L. 103–75, Aug. 12, 1993, 107 Stat. 740, provided in part: ‘‘That notwithstanding any other provision of law, the $500,000 limitation on the amounts outstanding and committed to a borrower provided in paragraph 7(c)(6) [now 7(d)(6)] of the Small Business Act [15 U.S.C. 636(d)(6)] shall be increased to $1,500,000 for disasters commencing on or after April 1, 1993.’’ CONGRESSIONAL FINDINGS OF MICROLENDING EXPANSION ACT OF 1992 Pub. L. 102–366, title I, § 112, Sept. 4, 1992, 106 Stat. 989, provided that: ‘‘The Congress finds that— ‘‘(1) nationwide, there are many individuals who possess skills that, with certain short-term assist- ance, could enable them to become successfully self- employed; ‘‘(2) many talented and skilled individuals who are employed in low-wage occupations could, with suffi- cient opportunity, start their own small business concerns, which could provide them with an improved standard of living; ‘‘(3) most such individuals have little or no savings, a nonexistent or poor credit history, and no access to credit or capital with which to start a business ven- ture; ‘‘(4) women, minorities, and individuals residing in areas of high unemployment and high levels of pov- erty have particular difficulty obtaining access to credit or capital; ‘‘(5) providing such individuals with small-scale, short-term financial assistance in the form of microloans, together with intensive marketing, man- agement, and technical assistance, could enable them to start or maintain small businesses, to become self- sufficient, and to raise their standard of living; ‘‘(6) banking institutions are reluctant to provide such assistance because of the administrative costs associated with processing and servicing the loans and because they lack experience in providing the type of marketing, management, and technical as- sistance needed by such borrowers; ‘‘(7) many organizations that have had successful experiences in providing microloans and marketing, management, and technical assistance to such bor- rowers exist throughout the Nation; and ‘‘(8) loans from the Federal Government to inter- mediaries for the purpose of relending to start-up, newly established and growing small business con- cerns are an important catalyst to attract private sector participation in microlending.’’ DISADVANTAGED SMALL BUSINESS STATUS DECISIONS Pub. L. 102–366, title II, § 221, Sept. 4, 1992, 106 Stat. 999, provided that: ‘‘(a) PUBLICATION OF DECISIONS.—A decision issued pursuant to section 7(j)(11)(F)(vii) of the Small Busi- ness Act (15 U.S.C. 636(j)(11)(F)(vii)) shall— ‘‘(1) be made available to the protestor, the pro- tested party, the contracting officer (if not the protestor), and all other parties to the proceeding, and published in full text; and ‘‘(2) include findings of fact and conclusions of law, with specific reasons supporting such findings or con- clusions, upon each material issue of fact and law of decisional significance regarding the disposition of the protest. Page 874 TITLE 15—COMMERCE AND TRADE § 636 ‘‘(b) PRECEDENTIAL VALUE OF PRIOR DECISIONS.—A de- cision issued under section 7(j)(11)(F)(vii) of the Small Business Act that is issued prior to the date of enact- ment of this Act [Sept. 4, 1992] shall not have value as precedent in deciding any subsequent protest until such time as the decision is published in full text.’’ REAUTHORIZATION OF BOND WAIVER TEST PROGRAM Pub. L. 102–190, div. A, title VIII, § 813(a)–(e), Dec. 5, 1991, 105 Stat. 1424, authorized the Secretary of Defense to grant surety bond exemptions to certain partici- pants in the Minority Small Business and Capital Own- ership Development Program who were awarded con- struction contracts by the Department of Defense be- fore Oct. 1, 1994. EMERGENCY DIRECT LOANS FOR SMALL BUSINESS CON- CERNS LOCATED IN COMMUNITIES ADVERSELY AF- FECTED BY TROOP DEPLOYMENTS DURING PERSIAN GULF CONFLICT Pub. L. 102–190, div. A, title X, § 1087, Dec. 5, 1991, 105 Stat. 1483, authorized emergency direct loans to small business concerns located in counties in which at least 5 small business concerns suffered severe economic in- jury resulting from deployment, after July 31, 1990, of troops in connection with Persian Gulf conflict, pro- vided that loan amounts could not exceed $50,000 to any small business concern, and provided for source of loan funds, applications for loans, definitions, regulations to implement loan program, and expiration of loan au- thority at end of 270-day period beginning on date on which loan applications were first accepted. TERMINATION OF MICROLOAN DEMONSTRATION PROGRAM Pub. L. 102–140, title VI, § 609(j), Oct. 28, 1991, 105 Stat. 831, as amended by Pub. L. 103–403, title II, § 203, Oct. 22, 1994, 108 Stat. 4181, provided that: ‘‘The demonstration program established by subsection (h) [amending this section] shall terminate on October 1, 1997.’’ REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY RATES References in laws to the rates of pay for GS–16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organi- zation and Employees, see section 529 [title I, § 101(c)(1)] of Pub. L. 101–509, set out in a note under section 5376 of Title 5. TEST PROGRAM FOR USE OF BOND WAIVER AUTHORITY TO ASSIST CERTAIN SMALL DISADVANTAGED BUSINESS CONCERNS Pub. L. 101–189, div. A, title VIII, § 833, Nov. 29, 1989, 103 Stat. 1509, which directed Secretary of Defense and Small Business Administration to establish a program for fiscal years 1990 and 1991 to test use of authority provided by subsec. (j)(13)(D) of this section, and that under the test program, the Secretary of Defense was to make every reasonable effort during each such fiscal year to award not less than 30 contracts for construc- tion projects (including repair and alteration of exist- ing facilities) to participants in Minority Small Busi- ness and Capital Ownership Development Program of Small Business Administration granted surety bond ex- emptions under such authority, was repealed by Pub. L. 102–190, div. A, title VIII, § 813(f), Dec. 5, 1991, 105 Stat. 1424. DEFINITION OF TERMS USED IN PUB. L. 100–656 Pub. L. 100–656, § 2, Nov. 15, 1988, 102 Stat. 3854, as amended by Pub. L. 101–37, § 3, June 15, 1989, 103 Stat. 70, provided that: ‘‘For the purposes of this Act [see Short Title of 1988 Amendment note set out under section 631 of this title]— ‘‘(1) the term ‘Administration’ means the Small Business Administration; ‘‘(2) the term ‘Administrator’ means the Adminis- trator of the Small Business Administration, unless otherwise indicated; ‘‘(3) the term ‘Business Opportunity Specialist’ means the Administration employee responsible for providing business development assistance to Pro- gram Participants pursuant to sections 7(j) and 8(a) of the Small Business Act (15 U.S.C. 636(j), 637(a)); ‘‘(4) the term ‘disadvantaged owners’ means those individuals upon whom eligibility is based for partici- pation in the Program and the award of subcontracts pursuant to section 8(a) of the Small Business Act (15 U.S.C. 637(a)); ‘‘(5) the term ‘minority owned businesses’ means business concerns that are at least 51 percent owned and controlled by one or more individuals who belong to those groups described or identified pursuant to section 2(e)(1)(C) of the Small Business Act (15 U.S.C. 631(e)(1)(C)); ‘‘(6) the term ‘Program’ means the Minority Small Business and Capital Ownership Development Pro- gram established by section 7(j)(10) of the Small Busi- ness Act (15 U.S.C. 636(j)(10)), unless otherwise indi- cated; ‘‘(7) the term ‘Program Participant’ means a small business concern participating in the Program; and ‘‘(8) the term ‘Program Participation Term’ means the fixed period of time assigned to a Program Par- ticipant pursuant to section 7(j)(10)(A)(i) of the Small Business Act (15 U.S.C. 636(j)(10)(A)(i)) prior to the date of enactment of this Act [Nov. 15, 1988].’’ CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSES OF PUB. L. 100–656 Pub. L. 100–656, title I, § 101, Nov. 15, 1988, 102 Stat. 3855, provided that: ‘‘(a) FINDINGS.—The Congress finds that— ‘‘(1) the Capital Ownership Development Program administered by the Small Business Administration and the award of contracts pursuant to section 8(a) of the Small Business Act [15 U.S.C. 637(a)] remain a pri- mary tool for improving opportunities for small busi- ness concerns owned and controlled by socially and economically disadvantaged individuals in the Fed- eral procurement process and bringing such concerns into the nation’s economic mainstream; ‘‘(2) although some progress has resulted from the Program, it has generally failed to meet its objec- tives, which remain as valid now as when the Pro- gram was initiated; ‘‘(3) too few concerns that have exited the Program have been prepared to compete successfully in the open marketplace on competitive procurements, and many concerns have developed an unhealthy depend- ency on sole-source contracts by the time they are required to leave the Program; ‘‘(4) the application and certification process for ad- mitting new participants to the Program is inordi- nately lengthy and burdensome; ‘‘(5) the Administration has often not efficiently and equitably administered and managed the Pro- gram in a manner that provided clear lines of respon- sibility for implementing and monitoring many of the administrative duties under the Program; ‘‘(6) the Administration and some program partici- pants have given insufficient attention and support to the business development goals of the Program and instead have focused almost entirely on the size of contract awards or the number of firms certified to participate in the Program; ‘‘(7) many Federal procuring agencies have failed to identify and offer the necessary amount of contract support in order to allow for diversification and growth of disadvantaged businesses participating in the Program; ‘‘(8) contract support as well as business develop- ment expenses have been misused both by the Admin- istration and Program participants and have not been equitably distributed pursuant to objective criteria; ‘‘(9) the widespread perception of undue political in- fluence in the operation and administration of the Program has significantly contributed to the Pro- gram’s poor image and has deterred utilization of the Page 875 TITLE 15—COMMERCE AND TRADE § 636 Program by socially and economically disadvantaged concerns and by Federal procuring agencies; and ‘‘(10) it is imperative that increased competition and other substantial reforms be accomplished in the Program in order to promote the Congressionally mandated business development objectives and pur- poses. ‘‘(b) PURPOSES.—The purposes of this Act [see Short Title of 1988 Amendment note set out under section 631 of this title] therefore are to— ‘‘(1) affirm that the Capital Ownership Develop- ment Program and the section 8(a) [15 U.S.C. 637(a)] authority shall be used exclusively for business devel- opment purposes to help small businesses owned and controlled by the socially and economically disadvan- taged to compete on an equal basis in the main- stream of the American economy; ‘‘(2) affirm that the measure of success of the Cap- ital Ownership Development Program, and the sec- tion 8(a) authority, shall be the number of competi- tive firms that exit the Program without being un- reasonably reliant on section 8(a) contracts and that are able to compete on an equal basis in the main- stream of the American economy; ‘‘(3) ensure that program benefits accrue to individ- uals who are both socially and economically dis- advantaged; ‘‘(4) increase the number of small businesses owned and controlled by such individuals from which the United States may purchase products and services (including construction work); and ‘‘(5) ensure integrity, competence, and efficiency in the administration of business development services and the Federal contracting opportunities made available to eligible small businesses.’’ EMPLOYEE TRAINING AND EVALUATION Pub. L. 100–656, title IV, § 410, Nov. 15, 1988, 102 Stat. 3879, as amended by Pub. L. 101–37, § 18, June 15, 1989, 103 Stat. 74, provided that: ‘‘(a) TRAINING REQUIREMENTS FOR BUSINESS OPPOR- TUNITY SPECIALISTS.—(1) In each Small Business Ad- ministration field office responsible for assisting one or more Program Participants there shall be a position designated as a Business Opportunity Specialist. To the maximum extent practicable the Administration shall assure that an adequate number of Business Oppor- tunity Specialists are assigned to each district office to carry out the responsibilities of sections 7(j) and 8(a) of the Small Business Act (15 U.S.C. 636(j), 637(a)) and to assist Program Participants. ‘‘(2) The Administration shall take such actions as may be appropriate to ensure that any person employed as a Business Opportunity Specialist receives adequate periodic training to assure such employee is capable of assisting Program Participants to fully utilize the Pro- gram and to meet the requirements of the Small Busi- ness Act [15 U.S.C. 631 et seq.], as amended by this Act. ‘‘(b) PILOT PROGRAM.—(1) Within 180 days after the ef- fective date of this subsection [Nov. 15, 1988] the Ad- ministrator shall designate three regions of the Admin- istration to conduct a pilot program pursuant to the provisions of this subsection. The designated regions shall contain approximately 30 per centum of the total number of Program Participants as of the time of des- ignation. ‘‘(2) A Business Opportunity Specialist employed in a Region designated pursuant to paragraph (1), in addi- tion to other assigned duties and responsibilities, shall— ‘‘(A) conduct contract negotiations on behalf of the Administration for contracts awarded pursuant to section 8(a) of the Small Business Act (15 U.S.C. 637(a)) when performance will be rendered by one or more firms in such Specialist’s assigned portfolio; ‘‘(B) facilitate and otherwise assist such firms in negotiating for the receipt of contracts to be let pur- suant to such section. ‘‘(3) The Administration shall take such actions as may be appropriate to train and qualify such Special- ists to perform the negotiations required pursuant to paragraph (2). ‘‘(4) To the extent practicable, the Administrator shall ensure that the performance appraisal system ap- plicable to a Business Opportunity Specialist employed in a region designated pursuant to paragraph (1) affords substantial recognition to how well such Specialist’s assigned portfolio of concerns participating in the pro- gram established by section 7(j)(10) of the Small Busi- ness Act (15 U.S.C. 636(j)(10)) are achieving competitive- ness and furthering the business development purposes of the program. ‘‘(5) The Administration shall establish personnel po- sitions for Business Opportunity Specialists employed in the regions designated pursuant to paragraph (1) that are classified at a grade level of the General Schedule that are sufficient, in the opinion of the Ad- ministrator, to attract and retain highly qualified per- sonnel. ‘‘(c) REPORT AND PILOT PROGRAM TERMINATION.—(1) Within 120 days after the termination of the pilot pro- gram conducted pursuant to subsection (b), the Admin- istration shall issue a report to the Committees on Small Business of the Senate and of the House of Rep- resentatives [Committee on Small Business of Senate now Committee on Small Business and Entrepreneur- ship of Senate] on the effectiveness of the pilot. Such report shall contain such recommendations for admin- istrative or legislative change as may be appropriate. ‘‘(2) The pilot program conducted pursuant to sub- section (b) shall be terminated three years after the date on which the Committees on Small Business of the Senate and of the House of Representatives [Committee on Small Business of Senate now Committee on Small Business and Entrepreneurship of Senate] receive writ- ten notification from the Administrator that the pilot is in full operation in each of the three designated pilot regions.’’ GENERAL ACCOUNTING OFFICE REPORT Pub. L. 100–656, title V, § 504, Nov. 15, 1988, 102 Stat. 3882, directed Comptroller General of the United States to conduct a review of operation of Minority Small Business and Capital Ownership Development Program authorized by subsec. (j)(10) of this section and contract assistance provided pursuant to section 637(a)(15) of this title commencing within 180 days of Nov. 15, 1988, and concluding Sept. 30, 1991, such review to report on implementation of provisions of Pub. L. 100–656 by Small Business Administration and various executive departments and agencies providing contracting oppor- tunities to the Program, and directed Comptroller Gen- eral to prepare a report summarizing findings of re- view, make such recommendations as may be appro- priate, and transmit report to Committees on Small Business of the Senate and House of Representatives by Feb. 1, 1992. COMMISSION ON MINORITY BUSINESS DEVELOPMENT Pub. L. 100–656, title V, § 505(a)–(g), Nov. 15, 1988, 102 Stat. 3883, as amended by Pub. L. 101–37, § 20, June 15, 1989, 103 Stat. 74; Pub. L. 101–574, title II, § 211, Nov. 15, 1990, 104 Stat. 2821; Pub. L. 102–366, title II, § 231(a), Sept. 4, 1992, 106 Stat. 1001; Pub. L. 103–160, div. A, title IX, § 904(f), Nov. 30, 1993, 107 Stat. 1729, established the Commission on Minority Business Development, set out its duties, powers, membership, administration, and personnel, and provided that it cease to exist with- in 90 days after the date that it transmitted its final re- port to Congress and to the President or Sept. 30, 1992, whichever was later. LIMITATIONS ON SPENDING AUTHORITY Pub. L. 100–656, title VIII, § 802(f), Nov. 15, 1988, 102 Stat. 3899, provided that: ‘‘(1) Any new credit authority or authority to enter into contracts provided for in this Act [see Short Title of 1988 Amendment note set out under section 631 of this title] is to be effective for any fiscal year only to Page 876 TITLE 15—COMMERCE AND TRADE § 636 such extent or in such amounts as are provided in ap- propriation Acts. ‘‘(2) No funds are authorized to be appropriated in subsequent appropriation Acts to the Administration for the purpose of making grants of financial assistance under the so called ‘Business Development Expense’ program to any firm participating in the programs au- thorized by section 7(j)(10) or section 8(a) of the Small Business Act (15 U.S.C. 636(j)(10) and 637(a)).’’ CERTIFIED LOAN PROGRAM; EXPANDED PARTICIPATION; REPORTS TO CONGRESS Pub. L. 100–590, title I, § 102(b), Nov. 3, 1988, 102 Stat. 2992, provided that: ‘‘The Administration shall take ap- propriate steps to expand participation in the certified loan program and shall report to the Small Business Committees of the Senate and the House of Representa- tives on the amount of loans approved and the amount of losses sustained under the provisions of section 7(a)(19) of the Small Business Act [15 U.S.C. 636(a)(19)]. An interim report shall be submitted not later than one year after date of enactment of this Act [Nov. 3, 1988] and a final report shall be submitted not later than 18 months after the date of enactment.’’ Similar provisions were contained in Pub. L. 100–533, title III, § 302(b), Oct. 25, 1988, 102 Stat. 2693. PIPELINE LOANS OR PREVIOUS DISASTERS Pub. L. 99–272, title XVIII, § 18006(b), Apr. 7, 1986, 100 Stat. 366, as amended by Pub. L. 99–349, title I, July 2, 1986, 100 Stat. 718, provided that: ‘‘Notwithstanding the amendments made by this section [amending sections 636 and 647 of this title], sections 18002 [amending provi- sions set out as a note under section 631 of this title] and 18016 [amending section 632 of this title], or any other provision of law, the Small Business Administra- tion shall continue to accept, process, and approve loan applications under paragraphs (1) through (4) of sub- section [section] 7(b) of the Small Business Act [15 U.S.C. 636(b)(1) to (4)] and shall obligate and disburse loan funds on account of disasters which occurred prior to October 1, 1985, and with respect to which a disaster declaration application was submitted prior to October 1, 1985, even if any such application is filed after the date of the enactment of this Act [Apr. 7, 1986].’’ DETERMINATION OF NATURAL DISASTER BY SECRETARY OF AGRICULTURE TO BE DEEMED DISASTER DECLARA- TION BY ADMINISTRATOR OF SMALL BUSINESS ADMIN- ISTRATION; DISASTERS COMMENCING BETWEEN JANU- ARY 1, 1983, AND SEPTEMBER 30, 1983 Pub. L. 98–166, title I, § 101, Nov. 28, 1983, 97 Stat. 1079, provided that for disasters commencing between Jan. 1, 1983, through Sept. 30, 1983, determination of a natural disaster by the Secretary of Agriculture pursuant to 7 U.S.C. 1961 would be deemed a disaster declaration by the Administrator of the Small Business Administra- tion for purposes of determining eligibility for assist- ance under 15 U.S.C. 636(b)(1) for agricultural enter- prises as defined in 15 U.S.C. 647(b). REPORTS TO CONGRESS; DEFAULT RATE OF LOANS Pub. L. 97–35, title XIX, § 1907 Aug. 13, 1981, 95 Stat. 777, required the Small Business Administration to sub- mit to Congress, not later than Feb. 28, 1984, and 1985, reports containing specific information on the aggre- gate number, dollar value, and default rate of all loans with respect to 15 U.S.C. 636(a)(5), (6)(C), (8)(A). BUSINESS PLANS; SUBMITTAL BY CONCERNS ELIGIBLE TO RECEIVE CONTRACTS Pub. L. 96–481, title I, § 106(b), Oct. 21, 1980, 94 Stat. 2322, provided that: ‘‘Notwithstanding the provisions of subsection (a) of this section [amending subsec. (j)(10)(A)(i) of this section], for concerns eligible to re- ceive contracts pursuant to section 8(a) of the Small Business Act [section 637(a) of this title] on the effec- tive date of the amendment made by this section [Oct. 21, 1980], each such concern shall submit to the Small Business Administration within two months after the promulgation of final regulations issued within one hundred and twenty days after the enactment of this Act [Oct. 21, 1981] the business plan required under sec- tion 7(j)(10)(A)(i) of the Small Business Act, as amended by subsection (a) of this section [subsec. (j)(10)(A)(i) of this section]: Provided however, That the period of time required under section 7(j)(10)(A)(i) of the Small Busi- ness Act, as amended by subsection (a) of this section, shall be fixed as mutually agreed upon by the program participant and the Small Business Administration prior to the awarding or extending of contracts to such concern pursuant to section 8(a) of the Small Business Act after June 1, 1981, but the period shall be fixed in no case later than eighteen months after the effective date of this Act: Provided further, That no determina- tion made under this paragraph shall be considered a denial of total participation for the purposes of section 8(a)(9) of the Small Business Act.’’ SMALL BUSINESS EMPLOYEE OWNERSHIP; CONGRESSIONAL FINDINGS AND PURPOSES Pub. L. 96–302, title V, §§ 502, 503, July 2, 1980, 94 Stat. 850, 851, provided that: ‘‘SEC. 502. The Congress hereby finds and declares that— ‘‘(1) employee ownership of firms provides a means for preserving jobs and business activity; ‘‘(2) employee ownership of firms provides a means for keeping a small business small when it might oth- erwise be sold to a conglomerate or other large enter- prise; ‘‘(3) employee ownership of firms provides a means for creating a new small business from the sale of a subsidiary of a large enterprise; ‘‘(4) unemployment insurance programs, welfare payments, and job creation programs are less desir- able and more costly for both the Government and program beneficiaries than loan guarantee programs to maintain employment in firms that would other- wise be closed, liquidated, or relocated; and ‘‘(5) by guaranteeing loans to qualified employee trusts and similar employee organizations, the Small Business Administration can provide feasible and de- sirable methods for the transfer of all or part of the ownership of a small business concern to its employ- ees. ‘‘SEC. 503. (a) The purposes of this title [enacting sec- tions 632(c) and 636(a)(8) of this title and provisions set out as notes under sections 631 and 636 of this title] are— ‘‘(1) to provide that a qualified employee trust shall be eligible for loan guarantees under section 7(a) of the Small Business Act [subsec. (a) of this section] with respect to a small business concern, regardless of the percentage of stock of the concern held by the trust, and ‘‘(2) to provide in section 505 of this Act [enacting subsec. (a)(8) of this section] authority to address the specific case in which the Small Business Adminis- tration guarantees loans under section 7(a) of the Small Business Act [subsec. (a) of this section] for purposes of providing funds to a qualified employee trust (and other employee organizations which are treated as qualified employee trusts) for the pur- chase, by at least 51 percent of the employees, of at least 51 percent of the stock of business which is op- erated for profit and which is— ‘‘(A) a small business concern, or ‘‘(B) a corporation which is controlled by another person if, after the plan for the purchase of such corporation is carried out, such corporation would be a small business concern. ‘‘(b) Nothing in this title shall be construed to pro- hibit the Small Business Administration from making loan guarantees under section 7(a) of the Small Busi- ness Act [subsec. (a) of this section] to qualified em- ployee trusts which own less than 51 percent of the stock of a continuing business.’’ Page 877 TITLE 15—COMMERCE AND TRADE § 636b 1 See References in Text note below. DISASTER RELIEF AUTHORITY; STUDY AND REPORT ON CONSOLIDATION Pub. L. 94–305, title I, § 101, June 4, 1976, 90 Stat. 663, required the President to comprehensively review all Federal disaster loan authorities and to report to Con- gress by Dec. 1, 1976, with recommendations and legis- lative proposals for the most effective and efficient de- livery of disaster relief, including possible consolida- tion of authorities. DISASTER LOANS; SPECIAL PROVISIONS FOR APPLICA- TIONS RECEIVED ON OR BEFORE MARCH 19, 1981; AS- SISTANCE TO HARDSHIP APPLICANTS Pub. L. 97–35, title XIX, § 1916, Aug. 13, 1981, 95 Stat. 780, provided for special provisions for applications for disaster loans under 15 U.S.C. 1636(b)(1), (2), or (4) re- ceived on or before Mar. 19, 1981, with assistance to hardship applicants. DISASTER LOANS; INTEREST RATE; CANCELLATION OF LOANS Pub. L. 93–24, § 9, Apr. 20, 1973, 87 Stat. 25, provided that: ‘‘Notwithstanding the provisions of any other law, any loan made by the Small Business Administra- tion in connection with any disaster occurring on or after the date of enactment of this Act [Apr. 20, 1973] under sections 7(b)(1), (2), or (4) of the Small Business Act (15 U.S.C. 636(b)(1), (2), or (4)) [subsec. (b)(1), (2), or (4) of this section] shall bear interest at the rate deter- mined under section 324 of the Consolidated Farm and Rural Development Act, as amended by section 4 of this Act [section 1964 of Title 7, Agriculture]. No portion of any such loan shall be subject to cancellation under the provisions of any law.’’ INTEREST RATES ON LOANS TO MEET REGULATORY STANDARDS Pub. L. 93–237, § 2(d), Jan. 2, 1974, 87 Stat. 1024, pro- vided that: ‘‘In no case shall the interest rate charged for loans to meet regulatory standards be lower than loans made in connection with physical disasters.’’ ELECTION OF BENEFITS Pub. L. 92–385, § 1(c), Aug. 16, 1972, 86 Stat. 555, pro- vided that: ‘‘Any person who (1) suffers any loss or damage as a result of a major disaster as determined by the President which occurred prior to the date of enact- ment of this Act [August 16, 1972], (2) is eligible for as- sistance under the amendment made by subsection (a), and (3) is otherwise eligible for benefits greater than those provided by the amendment made by subsection (a), may elect to receive such greater benefits.’’ FUND FOR MANAGEMENT COUNSELING Pub. L. 85–699, title VI, § 602(a), (b), Aug. 21, 1958, 72 Stat. 698, provided that: ‘‘(a) Within sixty days after the enactment of this Act [Aug. 21, 1958], each Federal Reserve bank shall pay to the United States the aggregate amount which the Secretary of the Treasury has heretofore paid to such bank under the provisions of section 13b of the Federal Reserve Act [12 U.S.C. 352a]; and such payment shall constitute a full discharge of any obligation or liability of the Federal Reserve bank to the United States or to the Secretary of the Treasury arising out of subsection (e) of said section 13b [12 U.S.C. 352a(e)] or out of any agreement thereunder. ‘‘(b) The amounts repaid to the United States pursu- ant to subsection (a) of this section shall be covered into a special fund in the Treasury which shall be avail- able for grants under section 7(d) of the Small Business Act [subsec. (d) of this section]. Any remaining balance of funds set aside in the Treasury for payments under section 13b of the Federal Reserve Act [12 U.S.C. 352a] shall be covered into the Treasury as miscellaneous re- ceipts.’’ LOANS FOR MODIFICATIONS OF MINING FACILITIES AND EQUIPMENT Pub. L. 91–173, title V, § 504(d), Dec. 30, 1969, 83 Stat. 802, authorized loans under 15 U.S.C. 636(b)(5) for modi- fications of mining facilities and equipment pursuant to former section 202 of the Public Works and Economic Development Act of 1965 (former 42 U.S.C. 3142), which was repealed by Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3602. Executive Documents EXECUTIVE ORDER NO. 12190 Ex. Ord. No. 12190, Feb. 1, 1980, 45 F.R. 7773, estab- lished the Advisory Committee on Small and Minority Business Ownership to assist in monitoring and encour- aging the placement of subcontracts by the private sec- tor with eligible small businesses, to study and propose incentives and assistance needed by the private sector to help in the training, development, and upgrading of such businesses, to make periodic reports and rec- ommendations to the President, and to report annually to the President and to the Congress on the activities of the Committee and provided for termination of the Committee on Dec. 31, 1980. EXTENSION OF TERM OF ADVISORY COMMITTEE ON SMALL AND MINORITY BUSINESS OWNERSHIP Term of Advisory Committee on Small and Minority Business Ownership extended until Sept. 30, 1991, by Ex. Ord. No. 12692, Sept. 29, 1989, 54 F.R. 40627, formerly set out as a note under section 1013 of Title 5, Government Organization and Employees, which extension was re- voked by the amendment of Ex. Ord. No. 12692 made by Ex. Ord. No. 12704, Feb. 26, 1990, 55 F.R. 6969. Previous extensions of term of Advisory Committee on Small and Minority Business Ownership were con- tained in the following prior Executive Orders: Ex. Ord. No. 12610, Sept. 30, 1987, 52 F.R. 36901, ex- tended term until Sept. 30, 1989. Ex. Ord. No. 12534, Sept. 30, 1985, 50 F.R. 40319, ex- tended term until Sept. 30, 1987. Ex. Ord. No. 12489, Sept. 28, 1984, 49 F.R. 38927, ex- tended term until Sept. 30, 1985. Ex. Ord. No. 12399, Dec. 31, 1982, 48 F.R. 379, extended term until Sept. 30, 1984. Ex. Ord. No. 12258, Dec. 31, 1980, 46 F.R. 1251, extended term until Dec. 31, 1982. § 636a. Repealed. Pub. L. 97–35, title XIX, § 1917, Aug. 13, 1981, 95 Stat. 781 Section, Pub. L. 91–606, title II, § 231, Dec. 31, 1970, 84 Stat. 1752; Pub. L. 92–385, § 6, Aug. 16, 1972, 86 Stat. 559, related to small business disaster loans. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective Aug. 13, 1981, but not to affect any fi- nancing made, obligated, or committed under this chapter or chapter 14B of this title prior to Aug. 13, 1981, see section 1918 of Pub. L. 97–35, set out as an Ef- fective Date of 1981 Amendment note under section 631 of this title. § 636b. Disaster loan interest rates Any loan made under section 636a 1 of this title and section 4452 1 of title 42 shall not exceed the current cost of repairing or replacing the dis- aster injury, loss, or damage in conformity with current codes and specifications. Any loan made under sections 636a 1 and 636d of this title, and sections 3538 and 4452 1 of title 42 shall bear in-