,i #aaf? ,,congress #a/ ,session ,h4 ,r4 #diae ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,octob] #cj1 #bjai,mr4 ,s*neid] 7= himself1 ,mr4 ,fitzpatrick1 & ,mr4 ,cr[7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,small ,bus9ess ,a ,,bill ,to am5d ! ,small ,bus9ess ,act to provide loan gu>antees = ! acquisition ( cyb]security te*nology & s]vices by eligible small bus9esses1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,small ,bus9ess ,cyb]security ,enhancem5t ,act4 #b4 ,loan gu>antees = cyb]security te*nology & s]vices 7a7 ,9 g5]al ,! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fca et seq47 is am5d$-- 7#a7 by r$esignat+ section #di z section #ej2 & 7#b7 by ins]t+ ! foll[+ new section aft] section #dh3 #di4 ,loan gu>antees = cyb]security te*nology & s]vices 7a7 ,def9itions ,z us$ 9 ?is section3 7#a7 ,cyb]security te*nology & s]vices ,! t]m cyb]security te*nology & s]vices-- 7,a7 means-- 7i7 comput] h>dw>e1 s(tw>e1 & relat$ te*nology t-- 7,i7 supports ! prev5tion ( damage to1 protection (1 & re/oration ( comput]s1 electronic communications sy/ems1 electronic communications s]vices1 wire communication1 & electronic communication1 includ+ in=mation conta9$ !re91 to ensure its availability1 integrity1 au!ntication1 confid5tiality1 & nonrepudiation2 7,,ii7 is pur*as$ by an eligible small bus9ess2 7,,iii7 provides = encryption ( data1 detection ( malw>e1 or protection ( in=mation & in=mation sy/ems f unau?oriz$ access1 use1 disclosure1 disruption1 modification1 or de/ruction2 7,,iv7 meets any requirem5ts e/abli%$ by ! ,small ,bus9ess ,developm5t ,c5t] ,cyb] ,/rategy develop$ "u section #ahda7;a7 ( ! ,national ,def5se ,au?orization ,act = ,fiscal ,ye> #bjag 7,public ,law #aad-cbh2 #acj ,/at4 #bffb72 & 7,v7 meets any indu/ry be/ practices /&>ds2 7ii7 an insurance product available = pur*ase by an eligible small bus9ess t provides cov]age = losses caus$ by a cyb] attack on su* bus9ess2 7iii7 s]vices relat$ to-- 7,i7 ! in/allation ( comput] h>dw>e1 s(tw>e1 & relat$ te*nology describ$ "u clause 7i72 or 7,,ii7 tra9+ on security pr9ciples = employees ( an eligible small bus9ess2 or 7iv7 has ! mean+ giv5 su* t]m by ! ,adm9i/rator2 & 7,b7 does n include in=mation te*nology ^: sole use is f9ancial managem5t1 ma9t5ance ( inv5tory ( basic supplies1 or appo9tm5t s*$ul+4 7#b7 ,eligible small bus9ess ,! t]m eligible small bus9ess means a small bus9ess conc]n t-- 7,a7 has #ajj or few] employees2 7,b7 has be5 9 bus9ess = at lea/ #a ye>2 & 7,c7 has obta9$ tra9+ f a small bus9ess developm5t c5t]4 7#c7 ,prime rate ,! t]m prime rate means ! disc\nt w9d[ prim>y cr$it int]e/ rate mo/ rec5tly publi%$ 9 ! ,f$]al ,res]ve ,/ati/ical ,release on select$ int]e/ rates 7daily or weekly71 commonly ref]r$ to z ! ,h4#ae release1 or any successor publication4 7b7 ,loan gu>antees = eligible small bus9esses 7#a7 ,gu>antee p]c5tage ,subject to p>agraph 7#b71 ! ,adm9i/rator may gu>antee up to #ij p]c5t ( ! am\nt ( a loan made to an eligible small bus9ess =-- 7,a7 ! acquisition ( cyb]security te*nology & s]vices = use 9 ! bus9ess op]ations ( ! eligible small bus9ess2 & 7,b7 ! co/s associat$ ) ! in/allation or use ( su* cyb]security te*nology & s]vices4 7#b7 ,limitations on gu>antee am\nts ,! maximum am\nt ( ! pr9cipal ( a loan gu>ante$ "u ?is section may n exce$ #ej1jjj4 ,! aggregate total am\nt ( ! pr9cipal ( loans gu>ante$ "u ?is section 9 a ye> may n exce$ #ejj1jjj1jjj4 7c7 ,fees ,) respect to ea* loan gu>ante$ "u ?is section1 ! ,adm9i/ration %all assess1 collect1 & reta9 su* fees z are necess>y to r$uce to z]o ! co/ to ! ,adm9i/ration ( mak+ gu>antees "u ?is section4 ,z us$ 9 ?is subsection1 ! t]m co/ has ! mean+ giv5 t t]m 9 section #ejb ( ! ,f$]al ,cr$it ,re=m ,act ( #aiij 7#b ,u4,s4,c4 #ffa;a74 7d7 ,int]e/ rates 7#a7 ,fix$ rate loans ,) respect to a fix$ rate loan gu>ante$ "u ?is section1 ! int]e/ rate = su* a loan may n exce$-- 7,a7 = a loan 9 an am\nt great] ?an #be1jjj1 ! prime rate2 & 7,b7 = a loan 9 an am\nt less ?an or equal to #be1jjj1 ! prime rate plus #c4be p]c5t4 7#b7 ,v>iable rate loans 7,a7 ,9 g5]al ,) respect to a v>iable rate loan gu>ante$ "u ?is section1 ! int]e/ rate = su* a loan %all equal-- 7i7 ! prime rate plus ! spread describ$ "u subp>agraph 7,b72 or 7ii7 ! optional peg rate1 z calculat$ qu>t]ly by ! ,adm9i/rator & publi%$ 9 ! ,f$]al ,regi/]1 plus ! spread describ$ "u subp>agraph 7,b74 7,b7 ,negotiation ( spread & rate ( *ange ,! l5d] & ! borr[] %all negotiate ! am\nt ( ! spread :i* w be add$ to ! int]e/ rate describ$ "u subp>agraph 7,a7 & select ! frequ5cy at :i* ! spread w *ange1 :i* %all be no m (t5 ?an mon?ly & %all be consi/5t ov] ! t]m ( ! loan4 7e7 ,def]ral p]iod ,! ,adm9i/rator may def] paym5t ( ! pr9cipal & int]e/ on a loan gu>ante$ "u ?is section = a p]iod n to exce$ #c ye>s4 7f7 ,t]ms & conditions = loan gu>antees 7#a7 ,9 g5]al ,a loan gu>ante$ "u ?is section %all be subject to su* t]ms & conditions z ! ,adm9i/rator may prescribe1 includ+-- 7,a7 explicit /&>ds = use 9 p]iodically assess+ ! cr$it risk ( gu>ante$ loans2 7,b7 a requirem5t t ! f9al maturity ( su* a loan may n exce$ #g ye>s2 & 7,c7 a requirem5t t su* a loan may n be subord9at$ to ano!r debt contract$ by ! borr[] or to any o!r claims aga9/ ! borr[] 9 ! case ( default4 7#b7 ,re/rictions ,! ,adm9i/rator may n gu>antee a loan "u ?is section-- 7,a7 unless ! ,adm9i/rator det]m9es t ! l5d] is responsible1 t !re is a reasonable assurance ( repaym5t1 & t adequate provision is made = s]vic+ ! loan on reasonable t]ms & protect+ ! f9ancial int]e/ ( ! ,unit$ ,/ates2 7,b7 except to ! ext5t t appropriations ( budget au?ority to cov] _! co/s are made 9 advance1 z requir$ "u section #ejd ( ! ,f$]al ,cr$it ,re=m ,act ( #aiij2 & 7,c7 if-- 7i7 ! income f su* loan is exclud$ f gross income = purposes ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf2 or 7ii7 ! gu>antee provides significant collat]al or security1 z det]m9$ by ! ,adm9i/rator1 = o!r obligations ! income f :i* is s exclud$4 7#c7 ,gu>antees ,a loan gu>antee provid$ "u ?is section %all be conclusive evid5ce t-- 7,a7 ! gu>antee has be5 prop]ly obta9$2 7,b7 ! und]ly+ loan qualifi$ = su* gu>antee2 & 7,c7 abs5t fraud or mat]ial misrepres5tation by ! hold] & ! l5d]1 ! gu>antee is presum$ to be valid1 legal1 & en=ceable4 7g7 ,paym5t ( losses 7#a7 ,9 g5]al ,if1 z a result ( a default by a borr[] "u a loan gu>ante$ "u ?is section1 & aft] ! hold] ( ! loan has made collection ef=ts & in/itut$ en=cem5t proce$+s z ! ,adm9i/rator may require1 ! ,adm9i/rator det]m9es t ! hold] ( ! loan has suff]$ a loss1 ! ,adm9i/rator %all pay to su* hold] ! p]c5tage ( su* loss specifi$ 9 ! gu>antee contract4 ,^u mak+ any su* paym5t1 ! ,adm9i/rator %all be subrogat$ to all ! rights ( ! recipi5t ( ! paym5t4 ,! ,adm9i/rator %all be entitl$ to recov] f ! borr[] ! am\nt ( any paym5ts made to ! hold] ( ! loan "u ?is p>agraph4 7#b7 ,=be>ance ,no?+ 9 ?is section may be con/ru$ to preclude any =be>ance = ! b5efit ( ! borr[] :i* may be agre$ ^u by ! p>ties to ! gu>ante$ loan & approv$ by ! ,adm9i/rator1 if budget au?ority = any result+ subsidy co/s 7z def9$ 9 section #ejb7e7 ( ! ,f$]al ,cr$it ,re=m ,act ( #aiij7 is available4 7#c7 ,managem5t ( prop]ty ,not)/&+ any o!r provision ( law relat+ to ! acquisition1 h&l+1 or disposal ( prop]ty by ! ,unit$ ,/ates1 ! ,adm9i/rator may complete1 recondition1 recon/ruct1 r5ovate1 repair1 ma9ta91 op]ate1 or sell any prop]ty acquir$ by ! ,adm9i/rator pursuant to ?is section4 7h7 ,sunset ( au?ority ,! au?ority ( ! ,adm9i/rator to make new loan gu>antees "u ?is section %all t]m9ate aft] ! end ( ! #e-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is section4 4 7b7 ,effective date ,! am5dm5ts made by subsection 7a7 %all take effect on ! date t is #ahj days aft] ! date ( ! enactm5t ( ?is ,act4