MODIFICATIONS TO 7(a) LOAN PROGRAMS.

SEC. 326. MODIFICATIONS TO 7(a) LOAN PROGRAMS. (a) 7(a) Loan Guarantees.— (1) In general.—Section 7(a)(2)(A) of the Small Business Act (15 U.S.C. 636(a)(2)(A)) is amended by striking “), such participation by the Administration shall be equal to” and all that follows through the period at the end and inserting “or the Community Advantage Pilot Program of the Administration), such participation by the Administration shall be equal to 90 percent of the balance of the financing outstanding at the time of disbursement of the loan.”. (2) [15 U.S.C. 636 note] Prospective repeal.—Effective October 1, 2021, section 7(a)(2)(A) of the Small Business Act (15 U.S.C. 636(a)(2)(A)), as amended by paragraph (1), is amended to read as follows: “(A) In general.—Except as provided in subparagraphs (B), (D), (E), and (F), in an agreement to participate in a loan on a deferred basis under this subsection (including a loan made under the Preferred Lenders Program), such participation by the Administration shall be equal to— “(i) 75 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance exceeds $150,000; or “(ii) 85 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance is less than or equal to $150,000.” . (b) Express Loans.— (1) Loan amount.—Section 1102(c)(2) of the CARES Act (Public Law 116-136; 15 U.S.C. 636 note) is amended to read as follows: “(2) Prospective repeal.—Effective on October 1, 2021, section 7(a)(31)(D) of the Small Business Act (15 U.S.C. 636(a)(31)(D)) is amended by striking ‘ $1,000,000’ and inserting ‘ $500,000’.” . (2) Guarantee rates.— (A) Temporary modification.—Section 7(a)(31)(A)(iv) of the Small Business Act (15 U.S.C. 636(a)(31)(A)(iv)) is amended by striking “with a guaranty rate of not more than 50 percent.” and inserting the following:“with a guarantee rate— “(I) for a loan in an amount less than or equal to $350,000, of not more than 75 percent; and “(II) for a loan in an amount greater than $350,000, of not more than 50 percent.” . (B) [15 U.S.C. 636 note] Prospective repeal.—Effective October 1, 2021, section 7(a)(31)(A)(iv) of the Small Business Act (15 U.S.C. 636(a)(31)(iv)), as amended by subparagraph (A), is amended by striking “guarantee rate” and all that follows through the period at the end and inserting “guarantee rate of not more than 50 percent.”.