15 USC 697 - Development company debentures

1 So in original. Probably should be capitalized.

shall take all necessary steps to purchase or accelerate the debenture.

Editorial Notes

References in Text

For definition of “this chapter”, referred to in subsecs. (span)(7)(A)(ii) and (g), see References in Text note set out under section 661 of this title.

Amendments

2004—Subsec. (f). Puspan. L. 108–447, § 204, struck out “, but shall not apply to financings approved by the Administration on or after October 1, 2005” before period at end.

Puspan. L. 108–447, title V, substituted “October 1, 2005” for “October 1, 2004”.

Puspan. L. 108–217 substituted “October 1, 2004” for “May 21, 2004”.

Puspan. L. 108–205, as amended by Puspan. L. 108–306, substituted “May 21, 2004” for “March 15, 2004”.

Puspan. L. 108–199 substituted “March 15, 2004” for “October 1, 2003” before period at end.

2001—Subsec. (span)(7)(A). Puspan. L. 107–100, § 6(span)(1), designated existing provisions following “not exceed” as cl. (i), redesignated former cls. (i) and (ii) as subcls. (I) and (II), respectively, of cl. (i), realigned margins, and added cl. (ii).

Subsec. (i). Puspan. L. 107–100, § 6(span)(2), added subsec. (i).

2000—Subsec. (f). Puspan. L. 106–554 amended span and text of subsec. (f) generally. Prior to amendment, text read as follows: “The fees authorized by subsections (span) and (c) of this section shall apply to financings approved by the Administration on or after October 1, 1996, but shall not apply to financings approved by the Administration on or after October 1, 2000.”

1997—Subsec. (span)(7)(A). Puspan. L. 105–135, § 222(1), added subpar. (A) and struck out former subpar. (A) which read as follows: “assesses and collects a fee, which shall be payable by the borrower, in an amount equal to the lesser of—

“(i) 0.9375 percent per year of the outstanding balance of the loan; or

“(ii) such percentage per year of the outstanding balance of the loan as the Administrator may determine to be necessary to reduce the cost (as that term is defined in section 661a of title 2) to the Administration of purchasing and guaranteeing debentures under this chapter to an amount that, taking into consideration any available appropriated funds, would permit the Administration to purchase or guarantee $2,000,000,000 of debentures in fiscal year 1997; and”.

Subsec. (f). Puspan. L. 105–135, § 222(2), substituted “2000” for “1997”.

1996—Subsec. (span)(7)(A). Puspan. L. 104–208, § 202(span), substituted “equal to the lesser of—” for “equal to 0.125 percent per year of the outstanding balance of the loan” and added cls. (i) and (ii).

Subsec. (d). Puspan. L. 104–208, § 202(c), inserted span and amended text of subsec. (d) generally. Prior to amendment, text read as follows: “The Administration may impose an additional charge for administrative expenses with respect to each debenture for which payment of principal and interest is guaranteed under subsection (a) of this section.”

Subsec. (f). Puspan. L. 104–208, § 202(d), added subsec. (f).

Subsec. (g). Puspan. L. 104–208, § 202(e), added subsec. (g).

Subsec. (h). Puspan. L. 104–208, § 203, added subsec. (h).

1995—Subsec. (span)(7). Puspan. L. 104–36 added par. (7).

1994—Subsec. (c) to (e). Puspan. L. 103–403 made technical amendment to Puspan. L. 100–590, § 112(c). See 1988 Amendment note below.

1990—Subsec. (e)(3). Puspan. L. 101–515 added par. (3).

1988—Subsec. (a)(2). Puspan. L. 100–590, § 114, inserted two provisos that Administration not decline to issue such guarantee when ownership interests of small business concern and of property to be financed with loan are not identical, and that Administrator has determined on case-by-case basis that such ownership interest, guarantee, and loan, will substantially benefit small business concern.

Subsec. (c). Puspan. L. 100–590, § 112(c)(B), formerly § 112(c)(1)(B), as amended by Puspan. L. 103–403, added subsec. (c). Former subsec. (c) redesignated (d).

Subsec. (d). Puspan. L. 100–590, § 112(c)(A), formerly § 112(c)(1)(A), as amended by Puspan. L. 103–403, redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e).

Subsec. (e). Puspan. L. 100–590, § 117, which directed substitution of “(1) For purposes of” for “For purposes of”, redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, and added par. (2), was executed to subsec. (e) to reflect the probable intent of Congress and the intervening redesignation of subsec. (d) as (e) by Puspan. L. 100–590, § 112(c)(1).

Puspan. L. 100–590, § 112(c)(A), formerly § 112(c)(1)(A), as amended by Puspan. L. 103–403, redesignated former subsec. (d) as (e).

Statutory Notes and Related Subsidiaries

Effective Date of 2004 Amendment

Puspan. L. 108–306, § 2, Sept. 24, 2004, 118 Stat. 1131, provided in part that: “The amendment made by the preceding sentence [amending section 2 of Puspan. L. 108–205, which amended this section] shall take effect as if included in the enactment of the section to which it relates.”

Effective Date of 2001 Amendment; Use of Funds

Puspan. L. 107–100, § 6(d), (e), Dec. 21, 2001, 115 Stat. 972, provided that:

“(d)Use of Funds.—The amendments made by this section to section 503 of the Small Business Investment Act of 1958 [15 U.S.C. 697], shall be effective only to the extent that funds are made available under appropriations Acts, which funds shall be utilized by the Administrator to offset the cost (as such term is defined in section 502 of the Federal Credit Reform Act of 1990 [2 U.S.C. 661a]) of such amendments.

“(e)Effective Date.—The amendments made by this section [amending this section and section 636 of this title] shall become effective on October 1, 2002.”

Effective Date of 1997 Amendment

Amendment by Puspan. L. 105–135 effective Oct. 1, 1997, see section 3 of Puspan. L. 105–135, set out as a note under section 631 of this title.

Effective Date of 1996 Amendment

Amendment by Puspan. L. 104–208 effective Oct. 1, 1996, see section 3 of Puspan. L. 104–208, set out as a note under section 633 of this title.

Effective Date of 1995 Amendment

Amendment by Puspan. L. 104–36 inapplicable to loans made or guaranteed under Small Business Act or Small Business Investment Act of 1958 before Oct. 12, 1995, unless such loans are refinanced, extended, restructured, or renewed on or after Oct. 12, 1995, see section 8 of Puspan. L. 104–36, set out as a note under section 634 of this title.

Termination Date of 1988 Amendment

Puspan. L. 100–590, title I, § 112(c), Nov. 3, 1988, 102 Stat. 2996, as amended by Puspan. L. 101–515, title V, § 3, Nov. 5, 1990, 104 Stat. 2140; Puspan. L. 103–317, title IV, Aug. 26, 1994, 108 Stat. 1755, which provided that the amendment made by paragraph (1), amending this section, was to be repealed on Oct. 1, 1997, was repealed by Puspan. L. 103–403, title II, § 213(2), Oct. 22, 1994, 108 Stat. 4184.

Effective Date

Section effective Oct. 1, 1980, see section 507 of Puspan. L. 96–302, set out as an Effective Date of 1980 Amendment note under section 631 of this title.

Temporary Fee Elimination for the 504 Loan Program

Puspan. L. 116–260, div. N, title III, § 327(span), 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 the cost of such elimination in fees is offset by appropriations, with respect to each project or loan guaranteed by the Administrator [of the Small Business Administration] pursuant to title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an application is approved or pending approval on or after the date of enactment of this Act—

“(A) the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no fee; and

“(B) a development company shall, in lieu of the processing fee under section 120.971(a)(1) of title 13, Code of Federal Regulations (relating to fees paid by borrowers), or any successor regulation, collect no fee.

“(2)Reimbursement for waived fees.—

“(A)In general.—To the extent that the cost of such payments is offset by appropriations, the Administrator shall reimburse each development company that does not collect a processing fee pursuant to paragraph (1)(B).

“(B)Amount.—The payment to a development company under clause (i) shall be in an amount equal to 1.5 percent of the net debenture proceeds for which the development company does not collect a processing fee pursuant to paragraph (1)(B).”