Page:United States Statutes at Large Volume 102 Part 3.djvu/1045

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PUBLIC LAW 100-000—MMMM. DD, 1988

PUBLIC LAW 100-590—NOV. 3, 1988

102 STAT. 2997

loan which funds any portion of the cost of the project financed pursuant to this section or section 504 which is not funded by a debenture guaranteed under this section.". (2) REPEALER.—The amendment made by paragraph (1) shall be 15 USC 697 note. repealed on October 1, 1990. SEC. 113. SECONDARY MARKET IN DEVELOPMENT COMPANY LOANS. Section 5 of the Small Business Act (15 U.S.C. 634) is amended by striking from subsection (g) "except those" and by inserting in lieu thereof "except separate trust certificates shall be issued for loans approved". SEC. 114. DEVELOPMENT COMPANY DEBENTURES.

Section 503(a)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 697(a)(2)) is amended by inserting before the period at the end thereof the following: ": Provided, That the Administration shall not decline to issue such guarantee when the ownership interests of the small business concern and the ownership interests of the property to be financed with the proceeds of a loan made pursuant to subsection (b)(1) are not identical because one or more of the following classes of relatives have an ownership interest in either the small business concern or the property: father, mother, son, daughter, wife, husband, brother, or sister: Provided further, That the Administrator or his designee has determined on a case-by-case basis that such ownership interest, such guarantee, and the proceeds of such loan, will substantially benefit the small business concern". SEC. 115. DEVELOPMENT COMPANY LOANS—POLICY.

(a) PoucY.—Section 501 of the Small Business Investment Act of Urban areas. 1958 (15 U.S.C. 695) is amended by redesignating subsections (a) and Rural areas. 0)) as subsections (b) and (c), respectively, and by adding the following new subsection prior thereto: '(a) The Congress hereby finds and declares that the purpose of this title is to foster economic development in both urban and rural areas by providing long term financing for small business concerns through the development company program authorized by this title. In order to carry out this objective, the Administration is hereby directed to place greater emphasis on the needs of rural areas and the promotion of the development company program in such areas, and is further directed to develop a plan for greater outreach of procurement and export trade seminars in such areas. As used in this title, the term rural areas' means those localities with populations of less than 20,000.". (b) TECHNICAL AMENDMENTS TO THE SECTION.—<1) Title V of such Act is further amended by inserting the following heading at the beginning of section 501: "STATE DEVELOPMENT COMPANIES".

(2) The table of contents of such Act is amended by inserting before the item relating to section 502 the following new item: "Sec. 502. State development companies.". SEC. 116. DEVELOPMENT COMPANY LOANS—LEASED PREMISES.

(a) IN GENERAL.—Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is further amended by adding the following at the end thereof: