Small Business Administration Transfer Act

TABLE OF CONTENTS:

Title I: Reorganization of Small Business Functions

Title II: Termination of Certain Authorities Under Small

Business Act and Small Business Investment Act of 1958

Title III: Transfers of Functions to Secretary of the

Treasury

Title IV: Other Transfers

Title V: General Administrative Provisions

Title VI: Transitional, Savings, and Conforming Provisions

Small Business Administration Transfer Act - Title I: Reorganization of Small Business Functions - Terminates the present Small Business Administration (SBA) on September 30, 1996.

(Sec. 102) Establishes in the Treasury an SBA, to be headed by an Under Secretary appointed by the President. Authorizes the Secretary of the Treasury to appoint a Deputy Under Secretary to assist in SBA functions.

(Sec. 103) Establishes in the Executive Office of the President an Office of Small Business Advocacy, to be headed by a Director appointed by the President.

Title II: Termination of Certain Authorities Under Small Business Act and Small Business Investment Act of 1958 - Repeals, with specified exceptions, the Small Business Act effective September 30, 1995. Repeals on the same date the Small Business Investment Act of 1958.

Title III: Transfers of Functions to Secretary of the Treasury - Amends the Small Business Act to transfer to the Secretary the functions with respect to the general business loan program. Prohibits any loan from being guaranteed by the Secretary under the program: (1) if the applicant can obtain credit elsewhere; (2) unless the loan is of such sound value or so secured as to reasonably assure repayment; (3) if it extends to more than 75 percent of the balance outstanding at the time of disbursement; (4) if the total amount outstanding and committed to a borrower would exceed $750,000; (5) if the terms of the loan allow repayment more than 25 years after the date of the loan (with an exception); and (6) if the interest rate charged exceeds a rate prescribed by the Secretary. Directs the Secretary to enter into a guarantee agreement with each financial institution participating in the program in order to assure that such loan conditions are met. Requires each financial institution entering into such an agreement to: (1) maintain at all participatory times tangible assets of at least six percent of its total assets; and (2) have complete authority to make and close, service, and liquidate such guaranteed loans without the Secretary's approval.

Directs the Secretary to collect a loan guarantee fee of two percent of the guaranteed amount, except for a loan repayable in one year or less. Authorizes the Secretary to adjust such amount when necessary to cover administrative costs. Directs the Secretary to reduce the guaranteed portion of loans made by a financial institution when the Secretary determines that losses on such loans exceed the average losses on such loans by other financial institutions. Prohibits the Secretary from limiting an institution's ability to call (request full payment of) a loan guaranteed under the program. Authorizes the Secretary to permit lenders under the program to impose and collect a reasonable penalty fee for late payments of guaranteed loans. Subjects each participating financial institution to an annual compliance review. Authorizes the Secretary to phase in the application of changes made under this Act in order to prevent disruption to financial institutions currently participating in the general business loan program.

(Sec. 302) Transfers to the Secretary all financial obligations currently owned by the SBA, together with all other assets, rights, functions, and powers. Succeeds the Secretary to all rights of the SBA with respect to outstanding loan guarantees. Provides for the disposition of assets received under the loan guarantee program. Authorizes and directs the Secretary to purchase from the Federal Financing Bank all obligations that were guaranteed or otherwise backed by the SBA. Transfers to the Secretary all SBA regulatory authorities.

Title IV: Other Transfers - Transfers to the Director of the Office of Management and Budget all the functions, powers, and duties vested in the SBA under the Small Business Act with respect to: (1) size standards for small businesses; and (2) government procurement programs.

(Sec. 402) Transfers to the Director of the Office of Small Business Advocacy all current SBA functions, powers, and duties with respect to: (1) maintenance of national small business economic indices; and (2) certain business aid programs.

Title V: General Administrative Provisions - Revises administrative and organizational authorities necessitated by the transfer of functions under this Act.

Title VI: Transitional, Savings, and Conforming Provisions - Makes transitional, savings, and conforming amendments and revisions necessitated by the transfer of functions under this Act, including the implementation of a one-year transition period beginning September 30, 1995. Provides a September 30, 1995, effective date, with exceptions.