Small Business Administration Reauthorization and Amendment Act of 1988

Summary

Small Business Administration Reauthorization and Amendment Act of 1988 - Amends the Small Business Act to authorize FY 1989 through 1991 Small Business Administration (SBA) program levels and appropriations for loans to finance small business plant acquisition, construction, conversion, or expansion. Authorizes specific amounts for: (1) handicapped persons and organizations for the handicapped; (2) small businesses either located in urban or rural areas with high unemployment and low income or owned by low-income individuals; and (3) disabled veterans and Vietnam veterans. Authorizes program levels and appropriations for FY 1989 through 1991 for deferred participation loans and debenture guarantees for small business development companies. Authorizes specific amounts for: (1) handicapped persons and organizations for the handicapped; (2) small businesses either located in urban or rural areas with high unemployment and low income or owned by low-income individuals; (3) small businesses that design, manufacture, or distribute energy measures; and (4) guarantees of debentures of State and local development companies. Authorizes program levels for FY 1989 under specified provisions of the Small Business Investment Act of 1958 for: (1) direct purchases and guarantees of debentures and purchases of preferred securities of small business investment companies; (2) surety bond guarantees; and (3) payment guarantees for the planning, design, or installation of pollution control facilities by small businesses. Authorizes, in addition, FY 1989 through 1991 appropriations for SBA salaries and expenses and for disaster loans to small businesses. Revises SBA participation requirements in connection with loans on a deferred basis. Permits loans of up to $1,000,000 (through the SBA or through other lending institutions) for businesses either adversely affected by import competition or in a position significantly to expand or create export markets. Requires that such loans be: (1) used for the acquisition, construction, or modification of facilities or equipment; and (2) secured by a first lien or first mortgage on the property. Authorizes additional loans to these same firms of up to $250,000 for working capital, supplies, or revolving lines of credit for export purposes. Authorizes the SBA to establish a certified loan program for lenders that display knowledge and proficiency with respect to SBA regulations and programs. Directs the SBA to encourage small business loans of $50,000 or less under both this new program and the preferred lenders program by a FY 1989 through 1990 policy that permits participating lenders to retain one-half of the guarantee fee. Requires SBA reporting to specified congressional committees in connection with the certified loan program. Amends the Small Business Investment Act of 1958 to change the limits applicable to SBA indemnification payments to sureties for their expenses in avoiding breach. Revises SBA guarantee liability limits to equal not more than: (1) 90 percent of the loss in cases of contracts of $100,000 or less; and (2) 80 percent with respect to contracts exceeding $100,000. Empowers the SBA to authorize sureties meeting prescribed expertise and capability criteria to monitor and service surety bond guarantees. Requires SBA reporting on this program to specified congressional committees. Modifies examination requirements in connection with small business investment companies to: (1) mandate at least biennial (currently annual) examination; and (2) enumerate specific standards to be addressed during the audit. Permits a limited partnership that has been in existence for ten years to form a small business investment company (current law requires a 30-year existence). Directs the SBA to issue at least biannually guarantees of small business investment company debentures and trust certificates. Requires the Comptroller General, by June 1, 1989, to present to specified congressional committees an evaluation of the volunteer programs operating in the Service Corps of Retired Executives and the Active Corps of Executives. Directs the SBA to issue policy directives to govern: (1) the standardized and orderly withdrawal of any agency from participation in the Small Business Innovation Research Program (SBIR); and (2) voluntary Federal agency participation in a SBIR program. Requires the SBA to develop and implement a comprehensive data acquisition and evaluation system with respect to small business participation in SBA programs and to report to specified congressional committees by July 31, 1988, on the implementation and estimated costs of such a system.

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Documents

6 official files

• Public Law (PDF)

  Public Law · EN · 4 November 1988

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• Conference report filed in House

  summary · EN · 3 October 1988

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• Passed Senate amended

  summary · EN · 14 July 1988

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• Passed House amended

  summary · EN · 6 July 1988

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• Reported to House with amendment(s)

  summary · EN · 13 June 1988

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• Introduced in House

  summary · EN · 16 March 1988

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