A bill to amend the Small Business Act, and for other purposes.

Summary

Title I: Small Business Administration Authorizations - Amends the Small Business Act and Small Business Investment Act of 1958 to increase the program levels for FY 1984 for direct and immediate participation loans for small business plant acquisition, construction, conversion, or expansion. Authorizes funds to the Small Business Administration (SBA) to provide direct and immediate participation loans to Vietnam veterans. Increases funds for direct and immediate participation loans to small businesses either located in urban or rural areas with high unemployment and low incomes or owned by low-income individuals. Decreases program levels for FY 1984 for deferred participation loans and debenture guarantees for small business plant acquisition, construction, conversion, or expansion and for small business development companies. Decreases the funds available for deferred participation loans to small businesses which design, manufacture, and distribute energy measures. Increases authorizations for FY 1984 for: (1) direct purchases of debentures and preferred securities by the SBA with respect to small business investment companies; and (2) surety bond guarantees by the SBA. Authorizes funds to the SBA for direct loans to small businesses for alterations required by a change in Federal or State regulations. (Under current law, the SBA is prohibited from making such loans.) Increases authorizations for FY 1984 to the SBA for direct and immediate participation loans for small business plant acquisition, construction, conversion, or expansion. Makes funds available out of such authorization for direct and immediate participation loans to: (1) Vietnam veterans; (2) handicapped persons and organizations for the handicapped; (3) small businesses either located in urban or rural areas with high unemployment and low income or owned by low-income individuals; and (4) small businesses which design, manufacture, and distribute energy measures. Makes funds available out of such authorization for debenture guarantees for State and local development companies and for deferred participation loans to: (1) handicapped persons and organizations for the handicapped; (2) small businesses either located in urban or rural areas with high unemployment and low incomes or owned by low-income individuals; (3) small businesses which design, manufacture, and distribute energy measures; and (4) State and local development companies. Makes funds available out of such authorization for direct purchases of debentures and preferred securities by the SBA with respect to small business investment companies. Decreases the funds available for the revolving fund for surety bond guarantees under the Small Business Investment Act of 1958. Increases funds for SBA salaries and expenses. Makes funds available out of the authorization for SBA salaries and expenses for: (1) procurement, management, and technical assistance to small businesses; (2) economic research and analysis and advocacy with respect to small businesses; (3) the Office of Minority Small Business and Capital Ownership Development; (4) SBA data management resources; and (5) the Small Business Development Center Program. Authorizes funding for FY 1985 for direct and immediate participation loans for small business plant acquisition, construction, conversion, or expansion. Makes funds available out of such authorization for direct and immediate participation loans to: (1) Vietnam veterans; (2) handicapped persons and organizations for the handicapped; (3) loans to small businesses either located in urban or rural areas with high unemployment and low incomes or owned by low-income individuals; and (4) small businesses which design, manufacture, and distribute energy measures. Authorizes funding for FY 1985 for deferred participation loans and debenture guarantees for small business plant acquisition, construction, conversion, or expansion and small business development companies under the Small Business Investment Act of 1958. Makes funds available out of such authorization for deferred participation loans to: (1) handicapped persons and organizations for the handicapped; (2) small businesses either located in urban or rural areas with high unemployment and low incomes or owned by low-income individuals; (3) small businesses which design, manufacture, and distribute energy measures; and (4) guarantees of debentures with respect to State and local development companies. Authorizes funding for FY 1985 for: (1) direct purchases and guarantees of debentures and purchases of preferred securities with respect to small business investment companies; (2) surety bond guarantees under the Small Business Investment Act of 1958; (3) direct loans to small businesses for alterations required by a change in Federal or State regulation; and (4) payment guarantees for the installation of pollution control facilities by small businesses. Authorizes appropriations for FY 1985 for disaster loans to small businesses and permits the transfer of funds from the disaster loan revolving funds for the payment of SBA administrative expenses. Authorizes appropriations for FY 1985 to the SBA for: (1) direct and immediate participation loans for small business plant acquisition, construction, conversion, or expansion; (2) Vietnam veterans' loans; (3) loans to handicapped persons and organizations for the handicapped; (4) loans to small businesses either located in urban or rural areas with high unemployment and low incomes or owned by low-income individuals; (5) loans to small businesses which design, manufacture, and distribute energy measures; (6) deferred participation loans and debenture guarantees for small business plant acquisition, construction, conversion, or expansion and small business development companies; (7) guarantees of debentures with respect to State and local development companies; (8) direct purchases and guarantees of debentures and purchases of preferred securities with respect to small business investment companies; (9) surety bond guarantees under the Small Business Investment Act of 1958; (10) lease guarantees; and (11) SBA salaries and expenses. Makes funds available out of the authorization for SBA salaries and expenses for: (1) procurement, management, and technical assistance to small businesses; (2) economic research and analysis and advocacy with respect to small businesses; (3) the Office of Minority Small Business and Capital Ownership Development; (4) SBA data management resources; and (5) the Small Business Development Center Program. Prohibits the Administrator from transferring more than ten percent of each program level for salaries and expenses or increasing such program level more than 20 percent by such transfer. Title II: Small Business Administration Program Changes - Amends the Small Business Act to require the Office of International Trade (within the SBA) to provide financial assistance to small businesses to encourage their participation in domestic and overseas export development activities. Limits the amount of financial assistance which may be provided to a company in any one fiscal year. Authorizes the SBA to participate in domestic and overseas events which encourage small business exports. Prohibits the SBA from making direct and immediate participation loans unless the loan applicant has assured the SBA that it will create jobs within two years after the loan is disbursed. Sets forth the allocation formula for such loans. Prohibits the SBA from making a loan to a small business if the total amount outstanding and committed to such small business from the business loan and investment fund exceeds $750,000. Requires that SBA immediate participation loans be accompanied by matching funds from non-Federal sources. Sets forth percentage requirements for such matching funds. Provides for a reduction of certain matching fund requirements if the non-Federal matching funds are from State or local governments. Provides for district office approval of immediate participation loans up to $350,000. Authorizes the SBA to transfer direct loan funds among the direct loan programs authorized by the Small Business Act. Limits increases in loan program levels by such transfers to 25 percent. Provides that the Administration is not authorized to transfer immediate participation loan levels to deferred participation loan levels unless such a transfer is approved in advance by the Appropriations Committees of the Senate and the House. Provides that with respect to loans to small businesses located in areas with high proportions of unemployed or low-income individuals or owned by low-income individuals, any reasonable doubt as to repayment shall be resolved in favor of the loan applicant. Revises the interest rate on the SBA's share of direct and immediate participation loans. Permits interest-only payments (through October 1, 1985) with respect to SBA loans upon the joint election of the borrower, the SBA, and the lender. Requires the SBA to submit to the Senate and House Committees on Small Business no later than February 28, 1984, and February 28, 1985, respectively, a report with respect to direct and immediate participation loans to small businesses. Provides that small businesses participating in the minority business development program under the Small Business Act shall be subject to a fixed period of program participation not to exceed five years. Sets forth factors in determining such participation period. Requires the SBA to make direct loans, to guarantee loans, debentures, qualified contract payments, and other types of financial assistance, and to guarantee sureties against loss pursuant to programs under the Small Business Act and the Small Business Investment Act of 1958, subject only to the availability of qualified applications for such loans and guarantees and limitations contained in appropriations Acts. Amends the Small Business Investment Act of 1958 to require that guarantees of qualified contract payments by the SBA be issued in the case of pollution control facilities or property when such property is acquired with proceeds from tax-free industrial revenue bonds. (Currently, issuance is discretionary in such cases.) Prohibits the SBA from establishing eligibility criteria for surety bond guarantees based upon the amount of the bond or upon a percentage related to previously completed contracts. Requires the SBA to examine each application on a case-by-case basis and to thereby determine the appropriate guarantee. Requires the SBA to notify the Senate and House Small Business Committees before reprograming amounts authorized in appropriations Acts and before implementing any reorganization. Requires the SBA to follow the Administrative Procedure Act with respect to promulgating, amending, or rescinding any rule regarding small business size standards. Amends the Small Business Investment Act of 1958 to provide that small business investment companies may include funds obtained from a State government or the Federal Government (excluding the SBA) before July 29, 1980, as paid-in capital and paid-in surplus for purposes of obtaining leveraged funds from the SBA. Authorizes the SBA to make loans for working capital to State and local development companies. Prohibits the SBA from using the source or nature of the non-SBA funds for a particular project as a criteria for approving or rejecting SBA guarantees of development company debentures for such project. Extends handicapped participation under the set-aside program of the Small Business Act through FY 1986. Title III: Disaster Loan Assistance - Amends the Small Business Act to specify the maximum interest rate on disaster loans made by the SBA to home owners or small businesses for disasters commencing on or after October 1, 1982. Provides that such loans, subject to reductions in insurance payments received by an applicant, shall cover 100 percent of the loss suffered. Provides that the interest rate on such a loan shall be the rate in effect on the date the disaster commenced. Prohibits loans that exceed $500,000 per disaster unless the loan applicant is a major source of employment in the disaster area, in which case the SBA has the discretion to waive such limitation. Provides that the minimum amount of such loans shall be $100,000 for loss of real property and $20,000 for loss of personal property for each disaster. Authorizes funds to the SBA to make direct loans under the disaster loan program for FY 1984. Extends for one year the requirement that agricultural producers seek disaster loan assistance from the Farmers Home Administration before applying for an SBA disaster loan. Provides that a small business which is located in an area of economic dislocation which occurred on or after January 1, 1982, as a result of the drastic fluctuation in the value of the currency of a country contiguous to the United States can receive loan assistance if such business is unable to obtain credit elsewhere and if a State governor certifies the economic dislocation to the SBA. Prohibits the SBA from making such loans in excess of $100,000. Provides that the proceeds from such loans cannot be used to reduce the exposure of any other lender. Provides that the 1983 payment-in-kind program to farmers constitutes a Federal action (making small businesses injured by such program eligible for economic disaster loans). Permits the aggregation of employees of small businesses sharing a common business premises for purposes of determining major source employment status for nonprofit applicants for disaster loans. Makes small agricultural cooperatives eligible for disaster loans. Establishes a timetable for the publishing of final rules and regulations implementing the amendments made by this Act.

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2 official files

• Passed House amended

  summary · EN · 15 March 1984

  Open at official source

• Introduced in House

  summary · EN · 16 May 1983

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