Summary: S.1947 — 97th Congress (1981-1982)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Passed House amended (06/08/1982)

(Measure passed House, amended, in lieu of H.R. 6086)

Amends the Small Business Act to increase the authorization for funding small businesses, State and local development companies, and small business investment companies for FY 1983 and 1984.

Requires the Small Business Administration (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 such 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 for such a guarantee on a case-by-case basis in order to determine the appropriate guarantee.

Amends the Small Business Act to prohibit the SBA from changing its interest rate regulations for deferred participation (guaranteed) loans before June 30, 1982.

Requires the SBA to keep records of all applications for, or inquiries about, the availability of funding for financial assistance under the Small Business Act and for guarantees and purchases under the Small Business Investment Act of 1958.

Requires the SBA to notify the Senate and House Small Business Committees before reprograming amounts authorized in appropriations Acts and before implementing any reorganization.

Repeals provisions dealing with the SBA's authority to make: (1) trade adjustment loans; (2) loans to 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) loans to small businesses for solar energy and energy conservation measures.

Prohibits the SBA from making direct loans unless: (1) the loan applicant demonstrates a potential for sustained business growth; (2) the applicant will create jobs within two years after the loan is disbursed; and (3) the SBA devises a plan to deal with the applicant's managerial or marketing weaknesses. Sets forth the allocation formula for SBA direct loans. Requires each SBA district to use its direct loan allocations in the following order of priority: (1) qualified labor surplus area applicants which will use the loan proceeds for construction, renovation, or acquisition of fixed assets; (2) qualified labor surplus area applicants; and (3) other small businesses which qualify for direct loans.

Requires that SBA direct 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 direct 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.

Prohibits SBA financial assistance in the case of any applicant who: (1) performs abortions; (2) engages in research which relates to methods of abortion; (3) promotes or recommends abortion; or (4) trains individuals to perform abortions. Makes such prohibition inapplicable in the case of an applicant which performs, promotes, or recommends abortions in cases where the life of the mother would be endangered if the fetus were carried to term.

Prohibits procuring agencies or establishments which are required to publish notice of procurement actions from: (1) issuing a solicitation for a procurement action until 15 days after publication of such a notice; and (2) foreclosing competition under a procurement order until 30 days after the issuance of the solicitation or, in the case of orders under a basic agreement, basic ordering agreement, or similar arrangement, after the publication of intent to place the order.

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.

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.

Continues, through FY 1983, the procurement contract program for small businesses and the subcontract program for disadvantaged small businesses under the Small Business Act.