A bill to authorize the Small Business Administration to guarantee the payment of principal and interest on State and local development company debentures.

Amends the Small Business Investment Act of 1958 to authorize the Small Business Administration to guarantee the timely payment of all principal and interest as scheduled on any debenture issued by any qualified State or local development company. Sets forth requirements which such debentures must meet in order to be so guaranteed including, but not limited to, the approval of each loan to be made from the proceeds of the debenture by the Administration. 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.