Small Business Prepayment Penalty Relief Act of 1994

Small Business Prepayment Penalty Relief Act of 1994 - Authorizes the Small Business Administration (SBA), upon the request of the issuer and the concurrence of the borrower, to transfer to the Federal Financing Bank such sums as necessary to reduce the interest rate on a debenture issued by a certified development company. Requires the Bank, upon receipt of such payment, to modify the interest rate for such debentures.

Permits debentures authorized under provisions of the Small Business Investment Act of 1958 (the Act) regarding private debenture sales and pooling to be used to refinance debentures issued by State or local development companies if the amount of the new financing is limited to amounts necessary to repay the existing debentures, including any prepayment penalty imposed by the Bank.

Authorizes the SBA, upon the request of the issuer, to transfer to the Bank such sums as necessary to reduce the interest rate on a debenture issued by a small business investment company under title III of the Act. Requires the Bank, upon receipt of such payment, to modify the interest rate for such debentures.

Authorizes the SBA, upon the request of the issuer, to modify the interest rate on a debenture issued by a small business investment company financing disadvantaged small business concerns.

Requires the SBA, upon enactment of an appropriations Act providing funds to carry out this Act, to evaluate the outstanding portfolio of debentures which are eligible for interest rate relief under this Act.

Authorizes appropriations.