To improve the calculation of the Federal subsidy rate with respect to certain small business loans, and for other purposes.

January 10, 2003

Ms. SNOWE (for herself, Mr. BOND, Mr. KERRY, Mr. CRAPO, Mr. BENNETT, Mr. ENZI, Mr. LEVIN, Ms. LANDRIEU, and Mr. ALLEN) introduced the following bill; which was read twice, considered, read the third time, and passed

To improve the calculation of the Federal subsidy rate with respect to certain small business loans, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SUBSIDY RATE FOR SMALL BUSINESS LOANS.

Notwithstanding section 502(5)(F) of the Federal Credit Reform Act of 1990 and section 254(j) of the Balanced Budget and Emergency Deficit Control Act of 1985, the Director of the Office of Management and Budget, in calculating the Federal cost for guaranteeing loans during fiscal year 2003 under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), may use the most recently approved subsidy cost model and methodology in conjunction with the program and economic assumptions, and historical data which were included in the fiscal year 2003 budget. After written notification to Congress, the Small Business Administration shall implement the validated, OMB-approved subsidy rate for fiscal year 2003, using this model and methodology. Such rate shall be deemed to have been effective on October 1, 2002.

END