LOAN GUARANTEE FEES.

SEC. 102. LOAN GUARANTEE FEES.(a) Additional Guarantee Fee Level.—Section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)) is amended to read as follows:“(A) In general.—With respect to each loan guaranteed under this subsection (other than a loan that is repayable in 1 year or less), the Administration shall collect a guarantee fee, which shall be payable by the participating lender, and may be charged to the borrower, as follows:“(i) A guarantee fee not to exceed 2 percent of the deferred participation share of a total loan amount that is not more than $150,000.“(ii) A guarantee fee not to exceed 3 percent of the deferred participation share of a total loan amount that is more than $150,000, but not more than $700,000.“(iii) A guarantee fee not to exceed 3.5 percent of the deferred participation share of a total loan amount that is more than $700,000.“(iv) In addition to the fee under clause (iii), a guarantee fee equal to 0.25 percent of any portion of the deferred participation share that is more than $1,000,000.”.(b) Clerical Amendment.—Section 7(a)(18) of the Small Business Act (15 U.S.C. 636(a)(18)) is amended by striking subparagraph (C).(c) Yearly Fee.—Section 7(a)(23) of the Small Business Act (15 U.S.C. 636(a)(23)) is amended—(1) in the heading, by striking “Annual” and inserting “Yearly”;(2) by striking subparagraph (A) and inserting the following:“(A) In general.—With respect to each loan approved under this subsection, the Administration shall assess, collect, and retain a fee, not to exceed 0.55 percent per year of the outstanding balance of the deferred participation share of the loan, in an amount established once annually by the Administration in the Administration’s annual budget request to Congress, as necessary to reduce to zero the cost to the Administration of making guarantees under this subsection. As used in this paragraph, the term ‘cost’ 118 STAT. 3444 has the meaning given that term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).”; (3) in subparagraph (B), by striking “annual” and inserting “yearly”; and(4) by adding at the end the following:“(C) Lowering of borrower fees.—If the Administration determines that fees paid by lenders and by small business borrowers for guarantees under this subsection may be reduced, consistent with reducing to zero the cost to the Administration of making such guarantees—“(i) the Administration shall first consider reducing fees paid by small business borrowers under clauses (i) through (iii) of paragraph (18)(A), to the maximum extent possible; and“(ii) fees paid by small business borrowers shall not be increased above the levels in effect on the date of enactment of this subparagraph.”.