101st CONGRESS
2d Session
H.R. 4793
AN ACT
To amend the Small Business Act and the Small Business Investment Act of 1958,
and for other purposes.
HR 4793 EH
101st CONGRESS
2d Session
H. R. 4793
AN ACT
To amend the Small Business Act and the Small Business Investment Act of 1958,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That this Act may be cited as the
`Small Business Reauthorization and Amendments Act of 1990'.

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9ea58a0763c3576a773260665f90994ea9cc275f737ecaae4e548740e2aed3f3

TITLE IV

-FAIR COMPETITION DEMONSTRATION PROGRAM

is amended by striking all of such section after subsection (g) and by
inserting the following new subsections:
`1991
`(h) The following program levels are authorized for fiscal year 1991:
`(1) For the programs authorized by this Act, the Administration is
authorized to make $72,000,000 in direct and immediate participation loans;
and of such sum the Administration is authorized to make $19,000,000 in
loans as provided in paragraph 7(a)(10), $24,000,000 in loans as provided in
paragraph 7(a)(11), $19,000,000 in loans to disabled veterans and Vietnam
era veterans as defined in section 1841, title 38, United States Code,
under the general terms and conditions of section 7(a) of this Act, and
$10,000,000 in loans as provided in section 7(a)(20).
`(2) For the programs authorized by this Act, the Administration is
authorized to make $4,070,000,000 in deferred participation loans and
other financings; and of such sum, the Administration is authorized to
make $3,500,000,000 in general business loans as provided in section 7(a),
$50,000,000 in loans as provided in paragraph 7(a)(12)(B), and $520,000,000
in financings as provided in paragraph 7(a)(13) (and section 504 of the
Small Business Investment Act of 1958).
`(3) For the programs authorized by the Small Business Investment Act of
1958, the Administration is authorized to make $19,000,000 in purchases of
preferred stock as authorized by title III and $200,000,000 in guarantees
of debentures pursuant to title III of such Act.
`(4) For the programs authorized by part B of title IV of the Small Business
Investment Act of 1958, the Administration is authorized to enter into
guarantees not to exceed $1,800,000,000.
`(i) There are authorized to be appropriated to the Administration for
fiscal year 1991 such sums as may be necessary to carry out the provisions
of this Act, specifically including administrative expenses and necessary
loan capital for disaster loans pursuant to section 7(b), and to carry out
the provisions of the Small Business Investment Act of 1958, including
salaries and expenses of the Administration, which may include up to
$3,000,000 for the operations of the Service Corps of Retired Executives,
$3,000,000 for Small Business Institutes, $5,000,000 to carry out the
provisions of section 21(a)(6), $5,000,000 to carry out the provisions of
section 8(c)(1), $3,000,000 in grants under section 27 and $3,000,000 in
grants under section 28.
`1992
`1992
`(j) The following program levels are authorized for fiscal year 1992:
`(1) For the programs authorized by this Act, the Administration is
authorized to make $75,000,000 in direct and immediate participation loans;
and of such sum the Administration is authorized to make $20,000,000 in
loans as provided in paragraph 7(a)(10), $25,000,000 in loans as provided in
paragraph 7(a)(11), $20,000,000 in loans to disabled veterans and Vietnam
era veterans as defined in section 1841, title 38, United States Code,
under the general terms and conditions of section 7(a) of this Act, and
$10,000,000 in loans as provided in section 7(a)(20).
`(2) For the programs authorized by this Act, the Administration is
authorized to make $4,449,000,000 in deferred participation loans and
other financings; and of such sum, the Administration is authorized to
make $3,850,000,000 in general business loans as provided in section 7(a),
$53,000,000 in loans as provided in paragraph 7(a)(12)(B), and $546,000,000
in financings as provided in paragraph 7(a)(13) (and section 504 of the
Small Business Investment Act of 1958).
`(3) For the programs authorized by the Small Business Investment Act of
1958, the Administration is authorized to make $20,000,000 in purchases of
preferred stock as authorized by title III and $210,000,000 in guarantees
of debentures pursuant to title III of such Act.
`(4) For the programs authorized by part B of title IV of the Small Business
Investment Act of 1958, the Administration is authorized to enter into
guarantees not to exceed $1,890,000,000.
`(k) There are authorized to be appropriated to the Administration
for fiscal year 1992 such sums as may be necessary to carry out the
provisions of this Act, specifically including administrative expenses
and necessary loan capital for disaster loans pursuant to section 7(b),
and to carry out the provisions of the Small Business Investment Act
of 1958, including salaries and expenses of the Administration, which
may include up to $3,150,000 for the operations of the Service Corps of
Retired Executives, $3,150,000 for Small Business Institutes, $5,000,000
to carry out the provisions of section 21(a)(6), $5,000,000 to carry out
the provisions of section 8(c)(1), $2,000,000 in grants under section 27,
and $2,000,000 in grants under section 28.
`1993
`(l) The following program levels are authorized for fiscal year 1993:
`(1) For the programs authorized by this Act, the Administration is
authorized to make $79,000,000 in direct and immediate participation loans;
and of such sum the Administration is authorized to make $21,000,000 in
loans as provided in paragraph 7(a)(10), $26,000,000 in loans as provided in
paragraph 7(a)(11), $21,000,000 in loans to disabled veterans and Vietnam
era veterans as defined in section 1841, title 38, United States Code,
under the general terms and conditions of section 7(a) of this Act, and
$11,000,000 in loans as provided in section 7(a)(20).
`(2) For the programs authorized by this Act, the Administration is
authorized to make $4,671,000,000 in deferred participation loans and
other financings; and of such sum, the Administration is authorized to
make $4,043,000,000 in general business loans as provided in section 7(a),
$55,000,000 in loans as provided in paragraph 7(a)(12)(B), and $573,000,000
in financings as provided in paragraph 7(a)(13) (and section 504 of the
Small Business Investment Act of 1958).
`(3) For the programs authorized by the Small Business Investment Act of
1958, the Administration is authorized to make $21,000,000 in purchases of
preferred stock as authorized by title III and $221,000,000 in guarantees
of debentures pursuant to title III of such Act.
`(4) For the programs authorized by part B of title IV of the Small Business
Investment Act of 1958, the Administration is authorized to enter into
guarantees not to exceed $1,985,000,000.
`(m) There are authorized to be appropriated to the Administration
for fiscal year 1993 such sums as may be necessary to carry out the
provisions of this Act, specifically including administrative expenses
and necessary loan capital for disaster loans pursuant to section 7(b),
and to carry out the provisions of the Small Business Investment Act
of 1958, including salaries and expenses of the Administration, which
may include up to $3,300,000 for the operations of the Service Corps of
Retired Executives, $3,300,000 for Small Business Institutes, $5,000,000
to carry out the provisions of section 21(a)(6), $5,000,000 to carry out
the provisions of section 8(c)(1), $1,000,000 in grants under section 27,
and $1,000,000 in grants under section 28.
`1994
`(n) The following program levels are authorized for fiscal year 1994:
`(1) For the programs authorized by this Act, the Administration is
authorized to make $83,000,000 in direct and immediate participation loans;
and of such sum the Administration is authorized to make $22,000,000 in
loans as provided in paragraph 7(a)(10), $27,000,000 in loans as provided in
paragraph 7(a)(11), $22,000,000 in loans to disabled veterans and Vietnam
era veterans as defined in section 1841, title 38, United States Code,
under the general terms and conditions of section 7(a) of this Act, and
$12,000,000 in loans as provided in section 7(a)(20).
`(2) For the programs authorized by this Act, the Administration is
authorized to make $4,905,000,000 in deferred participation loans and
other financings; and of such sum, the Administration is authorized to
make $4,245,000,000 in general business loans as provided in section 7(a),
$58,000,000 in loans as provided in paragraph 7(a)(12)(B), and $602,000,000
in financings as provided in paragraph 7(a)(13) (and section 504 of the
Small Business Investment Act of 1958).
`(3) For the programs authorized by the Small Business Investment Act of
1958, the Administration is authorized to make $22,000,000 in purchases of
preferred stock as authorized by title III and $232,000,000 in guarantees
of debentures pursuant to title III of such Act.
`(4) For the programs authorized by part B of title IV of the Small Business
Investment Act of 1958, the Administration is authorized to enter into
guarantees not to exceed $2,084,000,000.
`(o) There are authorized to be appropriated to the Administration for
fiscal year 1994 such sums as may be necessary to carry out the provisions
of this Act, specifically including administrative expenses and necessary
loan capital for disaster loans pursuant to section 7(b), and to carry out
the provisions of the Small Business Investment Act of 1958, including
salaries and expenses of the Administration, which may include up to
$3,450,000 for the operations of the Service Corps of Retired Executives,
$5,000,000 to carry out the provisions of section 21(a)(6), $5,000,000
to carry out the provisions of section 8(c)(1), and $3,450,000 for Small
Business Institutes.'.
DISASTER SALARIES AND EXPENSES

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TITLE I

-AUTHORIZATION AND AMENDMENTS

inserting at the end of subsection (a)(1): `There also are authorized
to be transferred from the disaster loan revolving fund such sums as
may be necessary and appropriate for administrative expenses of the
Administration.'.
SMALL BUSINESS DEVELOPMENT CENTERS

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by striking the second proviso in subsection (a)(4) and inserting in lieu
thereof the following: `Provided further, That no recipient of funds under
this section shall receive a grant which would exceed its pro rata share
of a $70,000,000 program based upon the population to be served by the
Small Business Development Center as compared to the total population
of the United States, plus $100,000 for each State, but no State shall
receive less than $200,000.'.
(b) Section 204 of the Small Business Development Center Act of 1980
(Public Law 96-302), as amended, is hereby repealed.
(c) The amendments to the second proviso in subsection (a)(4) made
by subsection (a) of this section shall apply to contracts, grants or
cooperative agreements for performance commencing on or after October 1,
1991; contracts, grants or cooperative agreements for performance commencing
prior thereto shall receive funding for the entire term of performance
without regard to this amendment and according to the State's pro rata
share of a $65,000,000 program as computed on the effective date of this
Act under population estimates used for calendar year 1990 agreements,
plus $50,000 for each State, but no State shall receive less than $200,000.
NATURAL RESOURCE DEVELOPMENT

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section:
`SEC. 24. (a) The Administrator is authorized to make grants to or to
enter into contracts with any State for the purpose of contracting with
small businesses to plant trees on land owned or controlled by such State
or local government. The Administrator shall require as a condition of any
grant (or amendment or modification thereof) under this section that the
applicant also contribute to the project a sum equal to at least 25 per
centum of a particular project cost from sources other than the Federal
Government. Such non-Federal money may include inkind contributions,
including the cost or value of providing care and maintenance for a period
of three years after the planting of the trees, but shall not include
any value attributable to the land on which the trees are to be planted,
nor may any part of any grant be used to pay for land or land charges:
Provided, That not less than one-half of the amounts appropriated under
this section shall be allocated to each State, the District of Columbia,
and the Commonwealth of Puerto Rico on the basis of the population in each
area as compared to the total population in all areas as provided by the
Census Bureau of the Department of Commerce in the annual population estimate
or the decennial census, whichever is most current. The Administrator may
give a priority in awarding the remaining one-half of appropriated amounts
to applicants who agree to contribute more than the requisite 25 per centum.
`(b) In order to accomplish the objectives of this section, the
Administrator, in consultation with appropriate Federal agencies, shall
be responsible for formulating a national small business tree planting
program. Based on this program, a State may submit a detailed proposal
for tree planting by contract.
`(c) To encourage and develop the capacity of small business concerns,
to utilize this important segment of our economy, and to permit rapid
increases in employment opportunities in local communities, grantees are
directed to utilize small business contractors or concerns in connection
with the program established by this section, and shall, to the extent
practicable, divide the project to allow more than one small business
concern to perform the work under the project.
`(d) For purposes of this section, agencies of the Federal Government are
hereby authorized to cooperate with all grantees and with State foresters or
other appropriate officials by providing without charge, in furtherance of
this program, technical services with respect to the planting and growing
of such trees.
`(e) There are authorized to be appropriated to carry out the objectives of
this section $30,000,000 for fiscal year 1991 and $50,000,000 for each fiscal
year thereafter, and all of such sums may remain available until expended.
`(f) Notwithstanding any other law, rule, or regulation, the Administration
shall publish in the Federal Register proposed rules and regulations
implementing this section within sixty days after the date of enactment
of this section and shall publish final rules and regulations within one
hundred and twenty days of the date of enactment of this section.
`(g) As used in this section--
`(1) the term `local government' includes political subdivisions of a
State such as counties, parishes, cities, towns and municipalities;
`(2) the term `planting' includes watering, application of fertilizer and
herbicides, pruning and shaping, and other subsequent care and maintenance
for a period of three years after the trees are planted; and
`(3) the term `State' includes any agency thereof.
`(h) The Administrator shall submit annually to the President and the
Congress a report on activities within the scope of this section.'.
INTEREST RATE ON CERTIFIED DEVELOPMENT COMPANY LOANS

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and Amendment Act of 1988 (Public Law 100-590) is amended by striking from
the end of subsection (c) `October 1, 1990' and by inserting in lieu thereof
`October 1, 1994'.
COOPERATIVE AGREEMENTS

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Act of 1984 (15 U.S.C. 633 note) as amended, is further amended by striking
`October 1, 1990' and by inserting in lieu thereof `October 1, 1994'.
AMOUNT OF ASSISTANCE TO SPECIAL SMALL BUSINESS INVESTMENT COMPANIES

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amended as follows--
(1) by inserting in paragraph (6) of subsection (c) after `debentures or
securities' the following: `under the provisions of this title'; and
(2) by striking the third sentence of subsection (d).
SBA DEPUTY ADMINISTRATOR

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`The Administrator is authorized to appoint a Deputy Administrator and'
from the fourth sentence of paragraph (1) of subsection (b) and in inserting
in lieu thereof the following: `The President also may appoint a Deputy
Administrator, by and with the advice and consent of the Senate. The
Administrator is authorized to appoint'.
(b) The provisions of subsection (a) of this section shall apply to any
vacancy which occurs in the position of Deputy Administrator of the Small
Business Administration after the effective date of this Act.
BUNDLING OF CONTRACTS

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before the word `Whenever' the following new sentences: `If a proposed
procurement includes in its statement of work goods or services currently
being performed by a small business, and if the proposed procurement is
in a quantity or estimated dollar value the magnitude of which renders
small business prime contract participation unlikely, or if a proposed
procurement for construction seeks to package or consolidate discrete
construction projects, the Procurement Activity shall provide a copy of
the proposed procurement to the Procurement Activity's Small Business
Procurement Center Representative at least thirty days prior to the
solicitation's issuance along with a statement explaining (1) why the
proposed acquisition cannot be divided into reasonably small lots (not less
than economic production runs) to permit offers on quantities less than
the total requirement, (2) why delivery schedules cannot be established
on a realistic basis that will encourage small business participation to
the extent consistent with the actual requirements of the Government,
(3) why the proposed acquisition cannot be offered so as to make small
business participation likely, or (4) why construction cannot be procured as
separate discrete projects. The thirty-day notification process shall occur
concurrently with other processing steps required prior to issuance of the
solicitation. Within fifteen days after receipt of the proposed procurement
and accompanying statement, if the Procurement Center Representative
believes that the procurement as proposed will render small business prime
contract participation unlikely, the Representative shall recommend to the
Procurement Activity alternative procurement methods which would increase
small business prime contracting opportunities.'.
DEVELOPMENT COMPANY FINANCINGS

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amended to read as follows:
`(a) The Congress hereby finds and declares that the purpose of this title is
to foster economic development and to create or preserve job opportunities
in both urban and rural areas by providing long-term financing for small
business concerns through the development company program authorized by
this title.'.
NATIONAL POLICY CONSIDERATIONS IN CERTIFIED DEVELOPMENT COMPANY ASSISTANCE

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amended by adding the following new subsection:
`(d) In order to qualify for assistance under this title, the development
company must demonstrate that the project to be funded is directed toward
at least one of the following economic development objectives--
`(1) the creation of job opportunities within two years of the completion
of the project or the preservation or retention of jobs attributable to
the project;
`(2) improving the economy of the locality, such as stimulating other
business development in the community, bringing new income into the area,
or assisting the community in diversifying and stabilizing its economy; or
`(3) the achievement of one or more of the following public policy goals:
`(A) business district revitalization,
`(B) expansion of exports,
`(C) expansion of minority business development,
`(D) rural development,
`(E) enhanced economic competition, including the advancement of technology,
plan retooling, conversion to robotics, or competition with imports,
`(F) changes necessitated by Federal budget cutbacks, including defense
related industries, or
`(G) business restucturing arising from Federally  mandated  standards  or
policies  affecting the environment or the safety and health of employees.
If eligibility is based upon the criteria set forth in paragraph (2) or
(3), the project need not meet the job creation or job preservation criteria
developed by the Administration if the overall portfolio of the development
company meets or exceeds such job creation or retention criteria.'.
(b) Section 502 of such Act is amended by striking the period at the end
of paragraph (2) and by inserting the following: `, except loans meeting
the criteria specified in section 501(d)(3) shall be limited to $1,000,000
for each such identifiable small business concern.'.
SBIC'S UNDER COMMON CONTROL

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Investment Act of 1958 is amended to read as follows: `In no event shall
the debentures guaranteed and outstanding under this title of any such
company or companies which are commonly controlled as determined by the
Administration exceed $35,000,000.'.
SECONDARY MARKET SALES

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the last sentence of subparagraph (A) of paragraph (16).
EXPORT REVOLVING LINE OF CREDIT

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(1) by striking from subparagraph (A) of paragraph (14) `for pre-export'; and
(2) by striking from subparagraph (A) of paragraph (14) `18 months' and
by inserting in lieu thereof `3 years'.
SPECIFIC PROCUREMENT CENTER PREPRESENTATIVES

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enactment, the Administrator of the Small Business Administration shall
station a traditional procurement center representative at the Department of
Agriculture, the Navy Sea Systems Command, and the Environmental Protection
Agency. Such representatives shall be in addition to the representatives
stationed or designated to be stationed on the date of enactment of this Act.
INDIAN TRIBE PARTICIPATION IN 8(A)

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(1) by inserting in clause (A)(i)(II) after the word `tribe,' the following:
`or a subsidiary of an Indian tribe, regardless of tier,';
(2) inserting in clause (A)(ii)(II) the following: `or a subsidiary of an
Indian tribe, regardless of tier,';
(3) by inserting after the comma in clause (B)(ii) the following: `or a
subsidiary of an Indian tribe, regardless of tier,';
(4) by inserting the following new paragraph at the end thereof:
`(D) For purposes of any program under this section or section 7(j)(10) of
this Act, a business owned by an Indian tribe shall not be considered to
be affiliated with either the owning tribe or any other business entity
owned by said tribe unless the Administrator finds that the business
concern's relationship with the other business entity or entities owned
by said tribe gives the concern a substantial competitive advantage.'.
SUNSET ON 8(A) CONTRACTS WITH INDIAN TRIBE JOINT VENTURES

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of 1988 (Public Law 100-656) is amended by striking from subsection (e)
`1991' and by inserting in lieu thereof `1995'.
NON-MANUFACTURER RULE

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U.S.C. 637(a)(17)(B)(iv)) is amended to read as follows:
`(iv) represent that it will supply the product of a domestic small business
manufacturer or processor, except that the Administrator may waive the
application of the clause, as it pertains to the furnishing of a product
manufactured or processed by a small business--
`(I) for any class of products for which there are no small business
manufacturers or processors in the Federal market; and
`(II) for any product for which such business concern has, after
solicitation, not received a responsive bid from a small business
manufacturer or processor.'.
FEASIBILITY STUDY OF BUSINESS COOPERATION NETWORK

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conduct a study of the feasibility of establishing a business cooperation
system similar to the Business Cooperation Network developed by the European
Economic Community.
(b) The purpose of the study shall be to identify--
(1) the total cost to implement such a system in this country;
(2) all existing business data systems at the Federal, state local government
levels which would be of assistance in developing a program similar to
either the Euro-Info-Centre and/or the European Business Cooperation Network;
(3) all existing business data systems in the private sector which would be
of assistance in developing a program similar to either the Euro-Info-Centre
and/or the European Business Cooperation Network;
(4) the amount of time it would take to fully implement this program in
all fifty States; and
(5) the benefits to the international competitiveness of the United States.
(c) in conducting the study, the Administrator shall encourage participation
of all appropriate Federal departments and agencies, appropriate State
departments and agencies, appropriate small business representative groups,
and any other public and/or private entities which would play a role in
the development of such a system.
(d) Not later than one year after the date of the enactment of this Act,
the Administrator shall transmit to Congress a report containing the
results of the study together with recommendations for such legislative
and administrative actions as the Administrator considers appropriate.
STUDY ON IMPACT OF ELECTRONIC DATA INTERCHANGE TECHNOLOGY

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conduct a study of the impact of electronic data interchange technology
on small business concerns.
(b) The purpose of the study shall be to identify--
(1) the benefits of electronic data interchange technology with respect
to small business concerns;
(2) the adverse effects of electronic data interchange technology with
respect to small business concerns;
(3) technical and financial assistance which the Small Business
Administration can offer to small business concerns which seek to use
electronic data interchange technology;
(4) measures which may be taken to implement a uniform technical standard
for electronic data interchange technology;
(5) measures which may be taken to prevent electronic data interchange
technology in the Federal procurement process from having an adverse effect
on small business concerns; and
(6) other measures which may be taken to prevent electronic data interchange
technology from becoming a competitive barrier to small business concerns.
(c) In conducting the study, the Administrator shall encourage participation
by Federal departments and agencies, small business concerns, and other
private and public entities.
(d) Not later than one hundred and eighty days after the date of the
enactment of this Act, the Administrator shall transmit to Congress a
report containing the results of the study together with recommendations
for such legislative and administrative actions as the Administrator
considers appropriate.
TECHNOLOGY ACCESS PILOT PROGRAM

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consultation with the National Institute of Standards and Technology and the
National Technical Information Service, shall establish a Technology Access
Pilot Program (hereafter in this section referred to as the `program'),
for making grants under this section to a maximum of 5 States.
(b) CRITERIA FOR SELECTION OF STATES- The Administrator of the Small
Business Administration shall establish competitive, merit-based criteria
for the selection of States to receive grants on the basis of--
(1) the ability of the State to carry out the purposes described in
subsection (d) in a manner relevant to the needs of industries in that State;
(2) the ability of the State to integrate the implementation of the Program
with existing Federal and State technical and business assistance resources,
including Small Business Development Centers; and
(3) the ability of the State to continue the program established pursuant
to this section after the termination of the Program.
(c) MATCHING REQUIREMENT- To be eligible to receive a grant under this
section, a State shall be required to provide at least an equal amount of
funds as that received under such grant.
(d) PURPOSE OF GRANTS- Grants made to States under this section shall be
for the purpose of increasing access by small businesses to on-line data
base services that provide technical and business information, and access to
technical experts, in a wide range of technologies, through such activities--
(1) defraying the cost of access by small businesses to the data base
services;
(2) training small businesses in the use of the data base services; and
(3) establishing a public point of access to the data base services.
Activities described in paragraphs (1) through (3) may be carried out through
contract with a private entity.
(e) EVALUATION- After the completion of 3 years after the date on which the
first grant is issued under this section, and within 6 months after the
termination of the Program, the General Accounting Office shall evaluate
the effectiveness of the Program in stimulating technological progress,
and shall report the findings to the Committee on Small Business and the
Committee on Science, Space, and Technology of the House of Representatives
and to the Committee on Small Business and the Committee on Commerce,
Science, and Transportation of the Senate.
(f) TERMINATION- The Program shall terminate on September 30, 1995.
(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the Small Business Administration for carrying out this section--
(1) $2,000,000 for fiscal year 1991; and
(2) $5,000,000 for each of the fiscal years 1992, 1993, 1994, and 1995.
PREPAYING DEVELOPMENT COMPANY DEBENTURES

4f06d734cfef0c54565e81f5fc7d34d4117ee52bab77b9dc29166061199f538d

amended by adding after section 506 the following new section:
`PREPAYING DEVELOPMENT COMPANY DEBENTURES
`SEC. 507. (a) For purposes of this section, the term `issuer' means the
issuer of a debenture which has been purchased by the Federal Financing Bank
pursuant to section 503, and the term `borrower' means the small business
concern whose loan secures a debenture issued pursuant to such section.
`(b) The issuer of a debenture purchased by the Federal Financing Bank and
guaranteed by the Small Business Administration under section 503 shall,
at the election of the borrower, prepay such debenture by paying to the
Federal Financing Bank prior to October 1, 1994, the unpaid principal
balance and accrued interest due on the debenture at the coupon rate on
the debenture: Provided, That--
`(1) the debenture is outstanding on the date of enactment, and neither
the loan that secures the debenture nor the debenture is in default on
the date the prepayment is made;
`(2) State or personal funds, which may include refinancing under the
programs authorized by sections 504 and 505, are used to prepay the
debenture;
`(3) the issuer certifies that the benefits, net of fees and expenses
authorized herein, associated with prepayment of the debenture are entirely
passed through to the borrower; and
`(4) the issuer pays to the Federal Financing Bank at the time of prepayment
a penalty in an amount equal to the original principal amount of the
debenture times the interest rate thereon times the number of years remaining
to maturity divided by the number of years to maturity when originally
issued, reduced by the amount of any fees paid pursuant to subsection (c):
Provided, That the borrower shall pay the issuer the amount of the penalty
plus the amount of any fees assessed pursuant to such subsection.
`(c) No fees or penalties other than those specified in this section
may be imposed as a condition of such prepayment against the issuer, the
borrower, or the Administration or any fund or account administered by
the Administration. If a debenture is prepaid or refinanced other than
through section 504, the issuer may require the borrower to pay a fee
to the issuer in an amount equal to one percent of the unpaid principal
balance of the debenture. If a debenture is refinanced with a guarantee
pursuant to section 504, the issuer may require the borrower to pay a fee
to the issuer in an amount equal to one-half of one percent of the unpaid
principal balance of the debenture.
`(d) Debentures refinanced under section 504 shall be limited to
$75,000,000 per year of the amounts otherwise authorized by the Small
Business Act. Refinancing shall also be subject to all of the other
provisions of sections 504 and 505 and the rules and regulations of the
Administration promulgated thereunder, including, but not limited to, payment
of authorized expenses and commissions, fees or discounts to brokers and
dealers in trust certificates issued pursuant to section 505: Provided,
however, That the issuer shall be deemed to have waived any origination
fee on the new debenture to which it otherwise would have been entitled.'.
(b) CLERICAL AMENDMENT- The table of contents for title V of such Act is
amended by adding at the end the following new item:
`Sec. 507. Prepaying existing obligations.'.
PREPAYING SPECIALIZED SMALL BUSINESS INVESTMENT COMPANY DEBENTURES

5d750e8c882c22a7706a347ef9e4d1ac6a277aad4da6c1001b89a30a584c1f06

TITLE II

-DEBENTURE PREPAYMENTS

amended by adding after section 322 the following new section:
`PREPAYING SPECIALIZED SMALL BUSINESS INVESTMENT COMPANY DEBENTURES
`SEC. 323. (a) Any small business investment company which is the issuer of
a debenture purchased by the Administration under section 303(c) may elect
to prepay the debenture by paying to the Administration prior to October 1,
1994, the unpaid principal balance and accrued interest: Provided, That--
`(1) the debenture is outstanding on the date of enactment and is not in
default on the date the prepayment is made;
`(2) personal funds, which may include refinancing with proceeds of
guaranteed debentures under section 303(d) of this Act, are used to
prepay the debenture, except that if new guaranteed debenture proceeds
are utilized, the length of time of the interest rate reduction authorized
by such subsection (d) shall be reduced by the length of time the issuer
received an interest rate reduction on the debenture being prepaid; and
`(3) the issuer pays to the Administration at the time of prepayment a
penalty in an amount equal to the original principal amount of the debenture
times the interest rate thereon times the number of years remaining to
maturity divided by the number of years to maturity when originally issued.
`(b) No fees or penalties other than those specified in this section
may be imposed as a condition of such prepayment against the issuer, the
Administration or any fund or account administered by the Administration.'.
(b) The table of contents of title III of such Act is amended by adding
after the item relating to section 322 the following new item:
`Sec. 323. Prepaying specialized small business investment company
debentures.'.
PREPAYING REGULAR SMALL BUSINESS INVESTMENT COMPANY DEBENTURES

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amended by adding the following new section:
`PREPAYING REGULAR SMALL BUSINESS INVESTMENT COMPANY DEBENTURES
`SEC. 324. (a) Any small business investment company which is the issuer of
a debenture guaranteed by the Administration under this title and purchased
by the Federal Financing Bank may elect to prepay the debenture by paying
to the Federal Financing Bank prior to October 1, 1994, the unpaid principal
balance and accrued interest: Provided, That--
`(1) the debenture is outstanding on the date of enactment and is not in
default on the date the prepayment is made;
`(2) personal funds, which may include refinancing with proceeds of
guaranteed debentures under this title, are used to prepay the debenture; and
`(3) the issuer pays to the Federal Financing Bank at the time of prepayment
a penalty in an amount equal to the original principal amount of the
debenture times the interest rate thereon times the number of years
remaining to maturity divided by the number of years to maturity when
originally issued.
`(b) No fees or penalties other than those specified in this section
may be imposed as a condition of such prepayment against the issuer,
the Administration or any fund or account administered by the Administration.
`(c) Debentures refinanced under section 303(b) shall be limited to
$75,000,000 per year of the amounts otherwise authorized by the Small
Business Act. Refinancing shall also be subject to all of the other
provisions of section 303 and 321 and the rules and regulations of the
Administration promulgated thereunder, including, but not limited to,
payment of authorized expenses and commissions, fees or discounts to
brokers and dealers in trust certificates issued pursuant to section 321.'.
(b) The table of contents of title III of such Act is amended by adding
after the item relating to section 323 the following new item:
`Sec. 324. Prepaying regular small business investment company debentures.'.
MISCELLANEOUS PROVISIONS

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of the borrower under section 201 or at the option of a small business
investment company under sections 202 or 203 and are in addition to any
prepayment options otherwise authorized by law.
(b) Within sixty days of the date of enactment of this title, the Small
Business Administration shall issue regulations to implement this title. The
Small Business Administration shall ensure that such regulations--
(1) facilitate such prepayments of debentures, and the underlying loans
if the debentures are prepaid pursuant to section 201;
(2) provide for full processing of each request for scheduling of prepayment
under sections 201 or 203 or prepayment under section 202 of this title
within sixty days after its submission to the Administration, unless the
requested prepayment involves a refinancing of a debenture under section
503 of the Small Business Investment Act of 1958 and the amount would
exceed the annual limitation specified in section 507(d) of such Act or
unless the requested prepayment involves a refinancing of a debenture
under section 303(b) of such Act and the amount would exceed the annual
limitation specified in section 324(c) of such Act;
(3) except as specifically and directly provided herein, impose no
restriction that increases the cost to issuers or borrowers of obtaining
financing for prepayment under this title, or delays the full processing of
prepayment requests, or inhibits the ability of such issuers or borrowers
to prepay under this title; and
(4) preserve any prepayment options which issuers and borrowers, as defined
herein, or small business investment companies have under other provisions
of law.
(c) Any new credit authority provided for in this title is subject to
amounts provided for in advance in appropriations Acts.
CITATION

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28861ec249b59367099b4b2e7a6ca1a2240db734be3a09db8b25cfbfe20558c4

TITLE III

-ASSISTANCE FOR RURAL SMALL BUSINESS CONCERNS

by adding at the end thereof the following new subsection:
`(m) For the purposes of sections 26, 27, and 28 of this Act--
`(1) the term `rural area' means--
`(A) a county with a population of 100,000 or less; or
`(B) any area within a county with a population of 300,000 or less which
the Administrator determines to be significantly rural; and
`(2) the term `rural economic development entity' means an entity which has
demonstrated experience in providing assistance to small business concerns
in a rural area and which is located in, and operated by residents of,
such area. Such entities may include non-profit community development
corporations, economic development districts, local development districts
(as defined by the Appalachian Regional Commission), councils of government,
area loan organizations, industrial development authorities, industrial
development corporations, chambers of commerce, and other similar entities
as determined by the Administrator, but shall not include any entity
which participates in programs under the Small Business Act or the Small
Business Investment Act of 1958 except loan programs under section 7(a)
of the Small Business Act.'.
ESTABLISHMENT OF OFFICE OF RURAL AFFAIRS

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the following new section:
`SEC. 25. (a) There is hereby established in the Small Business
Administration an Office of Rural Affairs (hereinafter in this section
referred to as the `Office').
`(b) The Office shall be headed by a director who shall be appointed by the
Administrator not later than ninety days after the date of the enactment
of this section.
`(c) The Office shall--
`(1) strive to achieve for small business concerns located in rural areas
an equitable distribution of the financial assistance available from the
Administration;
`(2) to the extent practicable, compile statistics on rural areas, including
statistics concerning the population, poverty, job creation and retention,
unemployment, bankruptcies, annual business failures, and annual business
startups in such areas;
`(3) provide information to industries, organizations, and State and local
governments concerning the assistance available to rural small business
concerns through the Administration and through other Federal departments
and agencies; and
`(4) provide information to industries, organizations, educational
institutions, and State and local governments concerning programs
administered by private organizations, educational institutions, and Federal,
State, and local governments which improve the economic opportunities of
rural citizens.'.
RURAL SMALL BUSINESS INCUBATOR ASSISTANCE LOANS

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new section:
`SEC. 26. (a) The Administration, to the extent and in such amounts as are
provided in advance in appropriations Acts, may make deferred participation
or guaranteed loans to rural economic development entities to be used
by such entities to establish rural small business incubators. If the
Administrator determines that the annual program level is not sufficient to
fund all eligible applications anticipated during each fiscal year, he may
give priority to those applications for incubator assistance which would
be located in areas where he determines the establishment of incubators
would have the greatest economic impact.
`(b) For the purposes of this section, the term `rural small business
incubator' means a facility in a rural area which houses more than one
small business concern and which is managed by an operator who provides
each such small business concern access to equipment and professional,
technical, and financial services.
`(c) The Administrator shall prescribe the form and procedures for rural
economic development entities to apply for loans under this section.
`(d) A loan made to a rural economic development entity under this section
shall bear interest at a rate to be determined by the Administrator.
`(e) A loan made to a rural economic development entity under this section
shall be subject to such terms and conditions as may be prescribed by
the Administrator.
`(f) The Administration shall provide to the operators of rural small
business incubators information concerning the technical and management
assistance resources available to small business concerns from the
Administrator.'.
(b) There are authorized to be appropriated to the Small Business
Administration $10,000,000 in each of fiscal years 1991, 1992, and 1993
to carry out this section.
CONFORMING AMENDMENTS

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amended as follows:
(1) by striking from paragraph (1) `and 8(a)' and by inserting in lieu
thereof `8(a), and 26'; and
(2) by striking from paragraph (2) `and 8(a)' and by inserting in lieu
thereof `8(a), and 26'.
MARKETING ASSISTANCE GRANTS

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the following new section:
`SEC. 27. (a) The Administrator, to the extent and in such amounts as
are provided in advance in appropriations Acts, may make grants to rural
economic development entities and to rural certified development companies
for projects and studies designed to assist small business concerns in
rural areas in marketing their products and services in the United States
and foreign countries.
`(b) The Administrator shall prescribe the form and procedures for
applications for such grants and shall require all applicants to meet the
matching requirement contained in section 29.'.
RURAL TOURISM GRANTS

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section at the end thereof:
`SEC. 28. (a) The Administrator, to the extent and in such amounts as
are provided in advance in appropriations Acts, may make grants to rural
economic development entities to assist in funding marketing studies and
other projects designed to promote the growth of small business concerns
in rural areas by increasing tourism in such areas.
`(b) The Administrator shall prescribe the form and procedures for
applications for such grants and shall require all applicants to meet the
matching requirement contained in section 29.'.
MATCHING REQUIREMENT FOR RURAL GRANT PROGRAMS

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section at the end thereof:
`SEC. 29. (a) An applicant for a grant under section 27 or 28 shall certify
to the Administrator for a fiscal year that the applicant will expend an
amount to be determined in accordance with subsection (b) from non-Federal
sources for the same purposes as are authorized for expenditure of the grant.
`(b)(1) If the applicant is located in a rural area which has an average
per capita income of 100 percent or more of the average per capita income
of the United States, the amount required to be expended from non-Federal
sources for purposes described in subsection (a) is 100 percent of the grant.
`(2) If the applicant is located in a rural area which has an average per
capita income of at least 90 percent but less than 100 percent of the
average per capita income of the United States, the amount required to
be expended from non-Federal sources for purposes described in subsection
(a) is 67 percent of the grant.
`(3) If the applicant is located in a rural area which has an average
per capita income of at least 80 percent but less than 90 percent of the
average per capita income of the United States, the amount required to
be expended from non-Federal sources for purposes described in subsection
(a) is 50 percent of the grant.
`(4) If the applicant is located in a rural area which has an average per
capita income of less than 80 percent of the average per capita income
of the United States, the amount required to be expended from non-Federal
sources for purposes described in subsection (a) is 33 percent of the grant.
`(c) In determining the average per capita income of the United States and
the average per capita income of a rural area under subsection (b), the
Administrator shall refer to the most recent decennial census information
available from the Bureau of the Census.'.
SBDC RURAL ACTIVITIES

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(1) by striking the word `and' at the end of subparagraph (L) of paragraph
(3) of subsection (c);
(2) by redesignating paragraph (M) of paragraph (3) of subsection (c)
as subparagraph (O); and
(3) by inserting the following new subparagraphs prior thereto:
`(M) in cooperation with the Department of Commerce, the Administration
and other relevant Federal agencies, actively assisting rural small
businesses in exporting by identifying and developing potential export
markets for rural small businesses, facilitating export transactions for
rural small businesses, developing linkages between United States rural
small business firms and prescreened foreign buyers, assisting rural small
businesses to participate in international trade shows, assisting rural
small businesses in obtaining export financing and developing marketing
and production strategies;
`(N) assisting rural small businesses--
`(i) in developing marketing and production strategies that will enable
them to better compete in the domestic market;
`(ii) by providing technical assistance needed by rural small businesses;
`(iii) by making available managerial assistance to rural small business
concerns; and
`(iv) by providing information on the availability of capital for business
startup and expansion and assisting such concerns in obtaining financing;'.
CATALOG OF FEDERAL PROGRAMS TO ASSIST RURAL SMALL BUSINESS CONCERNS

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enactment of this title, the Small Business Administration shall compile
a catalog of programs administered by Frederal departments and agencies
which offer assistance to small business concerns in rural areas. Such
catalog shall include a description of each such program and instructions
for contacting a Federal official responsible for administering the program.
(b) Copies of the catalog compiled under this section shall be transmitted
to Congress upon its completion and additional copies shall be made available
to small business concerns in rural areas, Federal departments and agencies,
non-profit organizations, and the general public.
(c) The Small Business Administration shall update the catalog compiled
under this section every two years.
AREA STATISTICS IN PRESIDENTIAL REPORT

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(Public Law 96-302) is amended by striking paragraph (2) of subsection
(a) and inserting in lieu thereof the following:
`(2) present current and historical data on production, employment,
investment, and other economic variables for small business in the economy
as a whole and for small business in each sector of the economy, with,
to the extent practicable, specific statistics divided as to urban,
suburban and rural areas;'.
SMALLER DEVELOPMENT COMPANIES IN RURAL AREAS

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amended as follows:
(1) by striking from paragraph (1) of subsection (e) the word `For' and
inserting in lieu thereof the following: `Except as provided in subsection
(f), for'; and
(2) by adding the following new subsection:
`(f)(1) A local development company licensed by the Administration to
provide financial assistance primarily to small business concerns located
in rural areas shall not be required to have:
`(A) more than fifteen members or stockholders nor may ownership or control
of the corporation be limited to less than 15 percent in any person or
concern; or
`(B) more than nine persons on its Board of Directors, of which five may
be designated as constituting a quorum for the transaction of business.
`(2) Such company may satisfy the requirement of a full-time professional
staff and management ability if it and one or more local development
companies operating in adjacent rural areas jointly employ or contract
with individuals to meet these criteria.'.
FAIR COMPETITION DEMONSTRATION PROGRAM
SEC. 401(a) IN GENERAL- In order to demonstrate the ability of private
firms, especially small and disadvantaged businesses, to provide quality
services to Federal departments and agencies at fair and reasonable fees,
the Administrator of the Small Business Administration shall conduct a
surveying and mapping demonstration program.
(b) INVENTORY OF ACTIVITIES- Not later than one hundred and eighty days
after the date of enactment of this Act, the Administrator, in consultation
with the Office of Federal Procurement Policy, shall publish an inventory
of surveying and mapping activities of Federal departments and agencies.
(c) ESTABLISHMENT- Based on the inventory, not later than one year after the
date of enactment of this Act, the Administrator, in consultation with the
Office of Federal Procurement Policy, shall develop and implement a four-year
demonstration program that increases Government contract opportunities for
qualified private mapping and surveying firms, especially small and small
disadvantaged businesses. The head of each Federal department of agency
shall cooperate with the Administrator in carrying out this title.
(d) REPORTS- The Administrator shall prepare and transmit to the Committees
on Small Business of the Senate and House of Representatives an annual
report on the demonstration program to include any recommendations for
extending or expanding the scope of the program.
(e) SURVEYING AND MAPPING DEFINED- For the purposes of this section, the
term `Surveying and mapping' means measuring, locating, and preparing maps,
charts, surveys, aerial photographs, satellite images or other graphical
or digital presentations depicting natural or man-made physical features,
phenomena, and legal boundaries of the earth.
Passed the House of Representatives September 25, 1990.
Attest:
Clerk.

02958d50cbde66ebd2d265e948952cbd89814e3fee82484bf06a9bb95cc3c19f

Small Business Reauthorization and Amendments Act of 1990 — HR. 4793

Other Sections

TITLE IV

TITLE I

TITLE II

TITLE III

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