102 STAT. 3864
PUBLIC LAW 100-656—NOV. 15, 1988
Administration has reason to believe that the standards to establish economic disadvantage pursuant to (A) have not been met, the Administration shall conduct a review to determine whether such Program Participant and its disadvantaged owners continue to be impaired in their ability to compete in the free enterprise system due to diminished capital and credit opportunities when compared to other concerns in the same business area, which are not socially disadvantaged. "(ii) If the Administration determines, pursuant to such review, that a Program Participant and its disadvantaged owners are no longer economically disadvantaged for the purpose of receiving assistance under this subsection, the Program Participant shall be graduated pursuant to section 7(j)(10XH) subject to the right to a hearing as provided for under paragraph (9). "(D)(i) Whenever, on the b a ^ of information provided by a Program Participant pursuant to subparagraph (B) or otherwise, the Administration has reason to believe that the amount of funds or other assets withdrawn from a Program Participant for the personal benefit of its disadvantaged owners or any person or entity affiliated with such owners may have been unduly excessive, the Administration shall conduct a review to determine whether such withdrawal of funds or other assets was detrimental to the achievement of the targets, objectives, and goals contained in such Program Participant's business plan. "(ii) If the Administration determines, pursuant to such review, that funds or other assets have been withdrawn to the detriment of the Program Participant's business, the Administration shall— "(I) initiate a proceeding to terminate the Program Participant pursuant to section 7(j)(10XF)» subject to the right to a hearing under paragraph (9); or "(ID require an appropriate reinvestment of funds or other assets and such other steps as the Administration may deem necessary to ensure the protection of the concern. "(E) Whenever the Administration computes personal net worth for any purpose under this paragraph, it shall exclude from such computation— "(i) the value of investments that disadvantaged owners have in their concerns, except that such value sha^ be taken into account under this paragraph when comparing such concerns to other concerns in the same business area that are owned by other than socially disadvantaged persons; "(ii) the equity that disadvantaged owners have in their primary personal residences, except that any portion of such equity that is attributable to unduly excessive withdrawals from a Program Participant or a concern applying for p n ^ a m participation shall be taken into account.", (b) (CERTIFICATION.—Section 8(a)(4) of the Small Business Act (15 U.S.C. 637(a)(4)(A)) is further amended by adding the following new subparagraph: 'XQ Each Program Participant shall certify, on an annual basis, that it meets the requirements of this paragraph r^arding ownership and control."
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