Bill summaries are authored by CRS.

Shown Here:
Passed Senate amended (07/16/1985)

(Measure passed Senate, amended, roll call #155 (94-3))

Amends the Small Business Act to authorize Small Business Administration (SBA) program levels for FY 1986 through 1988 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 handicapped persons and organizations for the handicapped and Vietnam veterans.

Authorizes funding for FY 1986 through 1988 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 1986 through 1988 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; and (3) payment guarantees for the installation of pollution control facilities by small businesses.

Authorizes appropriations for FY 1986 through 1988 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 to the SBA for FY 1986 through 1988. Makes such funds available for: (1) direct and immediate participation loans for small business plant acquisition, construction, conversion, or expansion; (2) loans to handicapped persons and organizations for the handicapped; (3) Vietnam veterans' loans; (4) deferred participation loans and debenture guarantees for small business plant acquisition, construction, conversion, or expansion and small business development companies; (5) deferred participation loans to handicapped persons and organizations for the handicapped; (6) small businesses either located in urban or rural areas with high unemployment and low incomes or owned by low-income individuals; (7) small businesses which design, manufacture, and distribute energy measures; (8) guarantees of debentures with respect to State and local development companies; (9) direct purchases and guarantees of debentures and purchases of preferred securities with respect to small business investment companies; (10) surety bond guarantees under the Small Business Investment Act of 1958; and (11) SBA salaries and expenses.

Limits the SBA's participation on deferred loans to small business for plant acquisition, construction, conversion, or expansion to: (1) not less than 80 percent (currently 90 percent) of the outstanding balance of the financing if such financing does not exceed $100,000; and (2) no more than 80 percent (currently 90 percent) of the financing outstanding if such financing exceeds $100,000 but is less than $714,285.

Requires the SBA to collect a guarantee fee equal to two percent of the amount of the deferred participation share of any loan under this Act except a loan repayable in one year or less or a loan to State and local development companies under the Small Business Investment Act of 1958.

Requires the SBA 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.

Excludes agricultural enterprises from eligibility for small business disaster loans and loans necessitated by Federal action or law. Repeals specified provisions concerning disaster loans to small businesses that are affected by Federal action. Deletes a specified provision relating to interest rates on the Federal share of disaster loans to small businesses.

Deletes provisions with respect to the agricultural enterprises exception to the prohibition against duplication of work or activity by the SBA and other Federal agencies.

Amends the Small Business Investment Act of 1958 to provide that certain guaranteed obligations are not eligible for purchase by the Federal Financing Bank.

Increases the contract amount (from $1,000,000 to $1,500,000) that the SBA may guarantee to any surety with respect to certain bonds relating to small businesses.

Amends the Small Business Act to treat businesses owned by economically disadvantaged Indian tribes (including any Alaskan Native village or regional or village corporation) as socially and economically disadvantaged small businesses for purposes of the SBA's business development program. Sets forth specified factors to be considered by the SBA in determining the economic disadvantage of an Indian tribe.

Requires the SBA to establish an annual sales size standard ($500,000) for certain agricultural enterprises.

Urges the SBA to: (1) evaluate the effectiveness of the Veterans Business Resource Councils and to recommend improvements in their operations; and (2) develop guidelines to assist in the establishment of such councils in States that do not have councils.