Small Business Administration Reauthorization and Amendments Act of 1994

TABLE OF CONTENTS:

Title I: Authorizations

Title II: Financial Assistance Programs

Title III: Size Standards and Bond Guarantees

Title IV: Business Development Assistance

Subtitle A: General Provisions

Subtitle B: Development of Woman-Owned Businesses

Title V: Relief from Debenture Prepayment Penalties

Title VI: Miscellaneous Amendments

Small Business Administration Reauthorization and Amendments Act of 1994 - Title I: Authorizations - Amends the Small Business Act (the Act) to extend through FY 1997 the authorization of appropriations for small business program loans and for programs of the Small Business Investment Act of 1958. Provides program level funding within each such fiscal year.

Title II: Financial Assistance Programs - Authorizes the Administrator of the Small Business Administration (SBA), in lieu of making loans to intermediaries under the Microloan Demonstration Program (Program), to participate on a pilot program basis during FY 1995 through 1997 on a deferred basis of at least 90 and up to 100 percent on loans made to intermediaries by a profit or nonprofit entity or by an alliance of such entities, subject to specified loan conditions. Authorizes agencies or nonprofit entities established by a Native American tribal government to be Microloan intermediaries. Extends the Program through FY 1996.

(Sec. 204) Increases the authorized number of microloan programs (to 200) and per State funding limits under the Program. Directs the SBA, in approving Program applicants, to select such intermediaries that will further microloan availability for small businesses in all industries throughout each State, but especially those located in urban and rural areas.

(Sec. 206) Increases from $1.25 million to $2.5 million the loan limit after the first year for participating intermediaries under the Program. Allows each intermediary to expend up to 15 percent of grant funds to provide information and technical assistance to small businesses that are prospective borrowers under the Program. Provides technical assistance grants for intermediaries providing loans to small businesses located in economically distressed areas.

(Sec. 209) Authorizes the SBA to provide extensions of credit and other financing to enable small business concerns, including export concerns, to develop foreign markets. Increases loan limits with respect to working capital international trade loans.

(Sec. 212) Amends the Business Investment Act of 1958 to authorize the SBA to establish an Accredited Lenders Program for qualified State and local business development companies that meet specified requirements, including active participation in the Development Company Program authorized under such Act. Provides for: (1) the expedited processing of loan applications; (2) the suspension or revocation of designation as a qualified development company; (3) necessary regulations; and (4) required biennial reports from the Administrator to the congressional small business committees.

(Sec. 213) Amends the Small Business Administration Reauthorization and Amendment Act of 1988 to repeal a provision limiting the interest rate authorized to be charged on certified development company loans.

(Sec. 214) Amends the Small Business Investment Act of 1958 to: (1) require certification by a small business receiving assistance from a small business investment company that it meets the eligibility requirements of the Small Business Investment Company or Specialized Small Business Investment Company Program; and (2) reserve 50 percent of the annual program level of participating securities for small business investment companies to fund companies with private capital of less than $20 million.

(Sec. 216) Requires a report from the SBA to the small business committees on the status and disposition of all small business investment companies participating in the Small Business Investment Company Program of the Small Business Investment Act of 1958.

(Sec. 217) Authorizes the SBA Administrator to establish a Premier Certified Lenders Program for not more than 15 certified development companies (CDCs) which meet requirements of this section. Authorizes the SBA to designate a CDC as a premier certified lender if such company: (1) has been an active participant in the accredited lenders program for at least the last 12 months (authorizes a waiver of such requirement prior to January 1, 1996, if the applicant is qualified to participate in such program); (2) has a history of submitting adequately analyzed debenture guarantee application packages to the SBA; and (3) agrees to assume and reimburse the SBA for ten percent of any loss sustained on account of default by the company in the payment of principal and interest on a debenture issued by the company and guaranteed by the SBA. Requires companies so designated to establish a loss reserve for financings approved under this section. Empowers such certified lenders with loan approval authority under terms and conditions established by the SBA, subject to SBA review. Provides for suspension or revocation of such designation in appropriate circumstances. Requires annual reports on the implementation of this section. Terminates this section as of October 1, 1997.

Title III: Size Standards and Bond Guarantees - Amends the Act to provide additional criteria to determine whether a business may be considered a small business for purposes of that or any other Act.

(Sec. 302) Amends the Small Business Administration Reauthorization and Amendment Act of 1988 to extend through FY 1995 the preferred surety bond guarantee program.

(Sec. 303) Directs the SBA to promote the award of Federal manufacturing contracts to small businesses that participate in manufacturing application and education centers by working with the Department of Commerce and other agencies to identify components and subsystems that are both critical and currently foreign-sourced. Outlines qualifications. Terminates the SBA's authority as of September 30, 1997. Authorizes appropriations.

(Sec. 304) Directs the Administrator to establish and carry out a pilot program to provide improved access to Federal contract opportunities for very small businesses (businesses with 15 or fewer employees and gross annual receipts of $1 million or less). Directs the Administrator to establish a preauthorization program for such businesses for the purpose of receiving financial assistance under the Act. Requires a report to the Congress. Requires program implementation by August 30, 1995, and termination by September 30, 1998.

(Sec. 305) Amends the Act to allow public or private organizations for the handicapped to participate during FY 1995 in small business set-aside contracts under the Act in an aggregate amount not to exceed $40 million.

Title IV: Business Development Assistance - Subtitle A: General Provisions - Repeals specified amendments made under the Small Business Computer Security and Education Act of 1984 which authorize assistance to small businesses by the SBA through cooperation with a profit-making concern, with conditions.

(Sec. 402) Amends provisions concerning the Small Business Development Center (SBDC) Program to: (1) require matching funds provided by non-Federal sources under the program to be comprised of not less than 50 percent cash and not more than 50 percent in-kind contributions; (2) provide FY 1995 grant limits for each State recipient; (3) allow an SBDC to contract with a Federal department or agency to provide specific assistance to small businesses (requiring certain contract approval under specified criteria); and (4) require the SBA to develop and implement a biennial programmatic and financial examination of each SBDC established.

(Sec. 405) Extends through FY 1995 the authorization of appropriations for the Central European enterprise development program.

(Sec. 406) Authorizes the Administrator to carry out a mobile resources pilot program to provide technical assistance, information, and other services from the SBA to traditionally underserved populations. Requires a report. Authorizes appropriations.

(Sec. 407) Requires information concerning the benefits and risks of franchising to be included among information provided to small business.

Subtitle B: Development of Woman-Owned Businesses - Amends the Act to: (1) extend through October 1, 1997, the provision of financial assistance for the conduct of demonstration projects for the benefit of small businesses owned and controlled by women; and (2) establish within the SBA an Office of Women's Business Ownership to be responsible for the administration of SBA programs for the development of women's business enterprises.

(Sec. 413) Establishes the Interagency Committee on Women's Business Enterprise to monitor, coordinate, and promote the plans, programs, and operations of Federal departments and agencies that may contribute to the establishment and growth of women's business enterprise. Requires Committee meetings at least biannually. Requires appropriate consultation with the National Women's Business Council (established under this section). Requires annual Committee reports to the President and the small business committees.

Establishes the National Women's Business Council to advise and consult with the Committee on matters relating to Committee activities, functions, and policies. Directs the President to appoint an individual to serve as chairperson of the Council, in consultation with the Administrator. Authorizes appropriations through FY 1997 to carry out this subtitle. Provides: (1) transitional reimbursement for interim salaries and expenses of Council members and staff; and (2) authority to accept gifts for activities authorized under the Women's Business Ownership Act of 1988.

Title V: Relief from Debenture Prepayment Penalties - Small Business Prepayment Penalty Relief Act of 1994 - Amends the Small Business Investment Act of 1958 to authorize an issuer of a debenture purchased by the Federal Financing Bank and guaranteed by the SBA to prepay such debenture at the election of the borrower whose loan secures such debenture (or the issuer in the case of a small business investment company), and with SBA approval. Provides prepayment procedures and terms. Prohibits the imposition of prepayment fees or penalties. Provides debenture refinancing limitations, allowing a loan processing fee for such refinancing. Authorizes the issuance of new debentures in order to prepay existing debentures, as long as certain notice requirements are met. Authorizes appropriations.

Title VI: Miscellaneous Amendments - Amends the Act to require the SBA to deposit annually into the Treasury the actual interest collected during that fiscal year on all financings made under the Act.

(Sec. 602) Empowers the SBA to impose, retain, and use fees which are specifically authorized by law or which are in effect as of September 30, 1994. Allows for the collection of certain additional fees.

(Sec. 603) Directs the SBA to develop procedures to ensure that financial assistance is used for projects which have the greatest potential for: (1) creating new jobs for individuals whose employment is involuntarily terminated due to reduction in defense expenditures; or (2) preventing the loss of jobs by employees of small businesses affected by such reductions.

(Sec. 604) Requires the SBA to transfer seven percent of its annual appropriations for loan guarantees (currently, only loans) in order to provide technical assistance grants to microlending organizations.

(Sec. 606) Directs the SBA Administrator to conduct a study of: (1) the Guaranteed Business Loan program under the Act; and (2) the Development Company program under the Small Business Investment Act of 1958. Requires an evaluation of each such program. Requires study completion by the end of FY 1995.

(Sec. 607) Requires vendors to be selected under small business innovation research programs using competitive, merit-based procedures and to serve a three-year term.

(Sec. 608) Amends the Business Opportunity Development Reform Act of 1988 to extend through FY 1997 the authority for joint ventures to provide assistance to disadvantaged small business concerns.

(Sec. 609) Prohibits funds made available under the Act from being used to provide benefits or assistance to individuals not lawfully within the United States.

(Sec. 610) Allows the SBA's Office of Advocacy to: (1) hire staff without consultation and approval from the SBA Administrator; and (2) hire up to 14 (currently, 10) individuals.

(Sec. 611) Prohibits the SBA from providing any financial or other assistance to a business or person engaged in the production or distribution of a product or service that has been determined by a court to be obscene.

(Sec. 612) Requires each applicant for financial assistance under the Act to certify that he or she is not more than 60 days delinquent under any child support obligations. Provides enforcement procedures.

(Sec. 613) Directs the SBA's Chief Counsel for Advocacy to study and report to the Congress on the impact of Federal regulatory paperwork and tax requirements on small businesses.