(Pub. L. 85–699, title V, § 509, as added Pub. L. 103–403, title V, § 503,Oct. 22, 1994, 108 Stat. 4199; amended Pub. L. 104–208, div. D, title II, § 208(h)(1)(H),Sept. 30, 1996, 110 Stat. 3009–747.)
References in Text
For definition of “this chapter”, referred to in subsec. (a)(1), see References in Text note set out under section
of this title.
Public Law 103–317, referred to in subsec. (a)(2)(B)(iii), is Pub. L. 103–317
, Aug. 26, 1994, 108 Stat. 1724
, known as the Departments of Commerce, Justice, and State, The Judiciary, and Related Agencies Appropriations Act, 1995. For complete classification of this Act to the Code, see Tables.
The Small Business Prepayment Penalty Relief Act of 1994, referred to in subsec. (g), is title V of Pub. L. 103–403
, Oct. 22, 1994, 108 Stat. 4198
, which enacted this section and provisions set out as notes under this section and section
of this title. For complete classification of this Act to the Code, see Short Title of 1994 Amendment note set out under section
of this title and Tables.
1996—Subsec. (a)(1). Pub. L. 104–208
, § 208(h)(1)(H)(i), struck out at end “A small business investment company operating under the authority of section
of this title that has issued a debenture that was purchased by and is held by the Administration, may, under the same terms and conditions, prepay such debenture, and the penalty as provided in this section, and shall thereafter be immediately eligible to apply for additional assistance from the Administration.”
Subsec. (e)(1)(B). Pub. L. 104–208
, § 208(h)(1)(H)(ii), substituted “section
of this title” for “subsection (c) or (d) ofsection
of this title”.
Intention of Congress
Section 502 of title V of Pub. L. 103–403
“(a) In General.—The Small Business Administration shall fully utilize the $30,000,000 appropriated in Public Law 103–317 [108 Stat. 1724
] to reduce, in accordance with this title [enacting this section and provisions set out as a note under section
of this title] and the amendments made by this title, prepayment penalties imposed in connection with debentures issued under—
“(1) section 303 or 503 of the Small Business Investment Act of 1958 [15
], which have been purchased by the Federal Financing Bank; and
“(2) title III [probably means title III of Pub. L. 85–699
, which is classified to section
et seq. of this title] to companies operating under section 301(d) of such Act [15
], which have been purchased by the Small Business Administration.
“(b) Equal Opportunity.—In order to provide an equal opportunity to participate in the program authorized under this title, the Small Business Administration shall afford each borrower or issuer of a debenture subject to this title, not less than 45 days to elect to participate and to provide an earnest money deposit. The Administration shall subsequently allow a period of not less than 4 months, during which those borrowers or issuers that elect to participate shall be allowed to complete the prepayment process.
“(c) Restrictions on Participation.—In no event shall the Small Business Administration—
“(1) allow any borrower or issuer to participate in the program if the borrower or issuer fails to—
“(A) make a timely election and provide the deposit on a timely basis; or
“(B) complete the prepayment process within the required time; or
“(2) allow any borrower or issuer to participate in the program at a percentage rate other than the rate finally determined to be applicable to all other borrowers or issuers with similar terms of years.”