A bill to amend the Small Business Investment Act of 1958 to authorize the Small Business Administration to guarantee debentures issued by certain State or local development companies.

Amends the Small Business Investment Act of 1958 to authorize the Small Business Administration (SBA) to guarantee the payment of all principal and interest as scheduled on any debenture issued by any qualified State or local development company.

Prohibits such a guarantee to be made unless: (1) the debenture is issued to permit a small business to use the proceeds of the loan for plant acquisition, construction, expansion, or conversion purposes; (2) private loan sources are unavailable; (3) the interest rate on such debenture is not lower than Treasury rates; (4) the aggregate amount of such debenture does not exceed the amount of loans to be made from the proceeds of such debenture; (5) the amount of any loan does not exceed 50 percent of the cost of the project with respect to which such loan is made; and (6) each loan is approved by the SBA.

Authorizes the SBA to impose an administrative charge for such guarantees.

Defines the term "qualified State or local development company" to mean a development company which has a full-time professional staff, professional management ability, and an active board of directors or membership.