Summary: S.2698 — 96th Congress (1979-1980)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Conference report filed in House (06/12/1980)

(Conference report filed in House, H. Rept. 96-1087)

=Title I: Authorizations and Miscellaneous Amendments= - Amends the Small Business Act to authorize Small Business Administration (SBA) loan program levels, including salaries and expenses, for fiscal years 1981 through 1984. Authorizes necessary appropriations for fiscal year 1985 and thereafter for general SBA programs which do not require specific authorizations.

Amends the Small Business Investment Act of 1958 to: (1) repeal the authority of the SBA to invest temporarily idle funds in the surety bond guarantees revolving fund; and (2) grant authority to invest such funds in the pollution control guarantee revolving fund.

Amends such Act to permit the SBA to guarantee debentures issued by an eligible State or local development company. Limits the amount of such debentures to one-half of the project cost, the other half of such cost being supplied from non-Federal Government sources. Requires any such debenture-issuing company to have a full-time professional staff, professional management ability, and a regularly-meeting, decision-making board of directors or membership.

Amends the Small Business Act to authorize the Administrator of SBA to transfer to participating lending institutions authority to determine eligibility and creditworthiness with respect to deferred participation loans, and to monitor, collect, and liquidate such loans.

Amends the Small Business Investment Act of 1958 to make a technical correction to the provision regarding surety bond guarantees.

Amends the Small Business Act to allow both for-profit and not-for-profit small businesses owned by handicapped individuals and sheltered workshops employing the handicapped to participate in the SBA procurement set-aside program. Limits such eligibility to fiscal years 1981 through 1983, and to an aggregate annual amount of $100,000,000. Directs the Administrator to monitor and evaluate such participation. Requires the Administrator to direct every Federal agency and department having procurement authority to take appropriate alleviating actions whenever the Administrator and the Executive Director of the Committee for the Purchase from the Blind and Severely Handicapped find that participation in such procurement programs by not-for-profit organizations has or may cause severe economic injury to for-profit businesses. Requires a report by the Administrator to the appropriate Congressional committees by January 1, 1982, concerning the impact on for-profit small businesses of Federal procurement contracts awarded to not-for-profit organizations of the handicapped.

Revises the priorities for the small business set-aside Federal procurement programs to give top priority to small business concerns located in labor surplus areas. Removes the existing termination date, thus extending such programs indefinitely.

Makes Asian Pacific Americans eligible for specified SBA remedial business development programs, including specialized management and technical assistance and procurement assistance.

Sets a $500,000 limit on a disaster loan to a borrower for each disaster, waivable at the SBA's discretion only if the borrower is a major source of employment in the disaster area. Requires a business concern which can obtain sufficient credit elsewhere to pay on such a loan up to the market rate of interest for United States obligations. Requires an agricultural enterprise seeking such a loan to apply first to the Farmers Home Administration.

Amends the Consolidated Farm and Rural Development Act to authorize up to $500,000 in disaster loans to a borrower for each disaster. Requires an interest rate: (1) of up to five percent for a borrower unable to obtain sufficient credit elsewhere; and (2) of up to the market rate on United States obligations for a borrower who is able to obtain credit elsewhere.

Amends the Small Business Act to authorize the availability of energy shortage loans to small business concerns injured by a shortage of any energy source, including coal, unless the shortage is caused by a strike, boycott or embargo directly against such concern.

Prohibits a small business which intentionally adulterates its product in order to take advantage of the product disaster loan program from receiving a product disaster loan.

States that no State disaster relief grant to a small business concern made on or before July 1, 1979, shall be considered compensation that would preclude eligibility for Federal disaster assistance under the Disaster Relief Act of 1974.

Authorizes the SBA to borrow adequate United States Treasury funds for the disaster loan program, subject to either: (1) the appropriation of budget authority; or (2) an express limitation on the amount of notes SBA may sell to the Treasury.

=Title II: Small Business Development Centers= - Small Business Development Center Act of 1980 - Amends the Small Business Act to authorize the SBA to make matching grants to any State government or agency, regional entity, State-chartered development, credit, or finance organization, or public or private institution of higher learning to defray 50 percent of the cost of developing and operating a small business development center (SBDC) program. Limits in-kind contributions from non-Federal sources to no more than 50 percent of all non-Federal contributions. Limits the amount of any grant to the greater of: (1) $200,000; or (2) a pro-rata share of a $65,000,000 program based upon the population to be served by the SBDC as compared to the total population of the United States.

Requires such centers to assist small businesses in solving problems concerning operations, manufacturing, engineering, technology exchange and development, personnel administration, marketing, sales, merchandising, finance, accounting, business strategy development, and other necessary matters. Specifies types of services. Requires such centers to utilize for such services small business vendors, including private management consultants, private consulting engineers, and private testing laboratories.

Requires the National Science Foundation funded innovation centers and National Aeronautics and Space Administration industrial application centers to cooperate with SBDCs in their activities, and to report annually to Congress and to the SBA on the performance of such SBDCs.

Directs the Administrator to appoint a Deputy Associate Administrator for Management Assistance to administer the SBDC program. Establishes a National Small Business Development Center Advisory Board. Authorizes each State SBDC to appoint a local advisory board.

Directs the SBA to submit to the appropriate Congressional committees by January 31, 1983, an evaluation of the SBDC program and its impact on small businesses and the socio-economic base of the regions served.

Limits the funding of any SBDC to $300,000 for fiscal year 1981. Terminates funding of SBDCs as of October 1, 1981.

Terminates the over-all SBDC program on October 1, 1984.

=Title III: Small Business Economic Policy= - Small Business Economic Policy Act of 1980 - Directs the President to transmit to Congress by January 20 of each year a Report on Small Business and Competition examining the current role of small business in the economy on an industry-by-industry basis. Specifies general contents of such Report. Requires an appendix reporting by agency and department on the total dollar value of all Federal contracts exceeding $10,000 and the dollar amount (including subcontracts in excess of $10,000) awarded to small, minority-owned and female-owned businesses.

=Title IV: Small Business Economic Research and Analysis= - Amends the Small Business Act to direct the Administrator to establish and maintain an economic data base on small business and to report annually a comparative analysis and interpretation of the historical trends of the small business sector. Requires publication of national and, to the extent feasible, regional small business economic indices including employment, business, sales, capital investment, inventory, debt to equity, export, merger, and other related data.

Permits no more than ten employees at any one time to be compensated at a maximum rate of GS-15, step 10, of the General Schedule.

Establishes the Office of the Chief Counsel for Advocacy at executive level IV.

Directs the Federal Reserve Board, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation to work with SBA and the Census Bureau in undertaking studies to determine the credit needs of small business and to what extent such needs are being met. Requires a report to Congress of the results of such studies by January 1, 1982.

=Title V: Employee Ownership= - Small Business Employee Ownership Act of 1980 - Amends the Small Business Act to authorize the SBA to make loan guarantees available to an employee trust that is part of an employee stock ownership plan for investment in qualifying employer securities. Requires such investment to result in majority ownership of a small business concern by such employee trust.

Directs the Administrator to study and report to the appropriate Congressional committees not later than April 1, 1981, about the feasibility of making loan guarantees directly to the seller of a small business concern in connection with the installment sale of such concern.