Public Law 89–59

section 7(b) of the Small Business Act is amended by striking out “twenty years.”, in the second sentence, and inserting in lieu thereof the following: “thirty years: Provided, That the Administrator may consent to a suspension in the payment of principal and interest charges on, and to an extension in the maturity of, the Federal share of any loan under this subsection for a period of not to exceed five years, if (A) the borrower under such loan is a homeowner or a small-business concern, (B) the loan was made to enable (i) such homeowner to repair or replace his home, or (ii) such concern to repair or replace plant or equipment which was damaged or destroyed as the result of a disaster meeting the requirements of clause (A) or (B) of paragraph (2) of this subsection, and (C) the Administrator determines such ac ion is necessary to avoid severe financial hardship: Provided further, That the provisions of paragraph (1) of subsection (c) of this section shall not be applicable to any such loan having a maturity in excess of twenty years.”

Section 7(c) of such Act is amended by inserting “(1)” after “(c)”, and by adding at the end thereof a new paragraph as follows:

“(2)“(2)

During any period in which principal and interest charges are suspended on the Federal share of any loan, as provided in subsection (b), the Administrator shall, upon the request of any person, firm, or corporation having a participation in such loan, purchase such participation, or assume the obligation of the borrower, for the balance of such period, to make principal and interest payments on the non-Federal share of such loan: Provided, That no such payments shall be made by the Administrator in behalf of any borrower unless (i) the Administrator determines that such action is necessary in order to avoid a default, and (ii) the borrower agrees to make pay-ments to the Administration in an aggregate amount equal to the amount paid in its behalf by the Administrator, in such manner and at such times (during or after the term of the loan) as the Administrator shall determine having due regard to the purposes sought to be achieved by this paragraph.”

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Section 4(c) of such Act is amended by—

76 Stat. 220.

15 USC 633.

by striking out “$1,666,000,000” and inserting in lieu thereof “$1,716,000,000”; and

by striking out “$1,325,000,000” and inserting in lieu thereof “$1,375,000,000”.