Page:United States Statutes at Large Volume 102 Part 4.djvu/898

 102 STAT. 3868

PUBLIC LAW 100-656—NOV. 15, 1988

"(ii) with such assistance such concern has a reasonable prospect for operating soundly and profitably within a reasonable period of time; "(iii) the proceeds of such assistance will be used within a reasonable time for plant construction, conversion, or expansion, including the acquisition of equipment, facilities, machinery, supplies, or material or to supply such concern with working capital to be used in the manufacture of articles, equipment, supplies, or material for defense or civilian production or as may be necessary to insure a well-balanced national economy; and "(iv) such assistance is of such sound value as reasonably to assure that the terms under which it is provided will not be breached by the small business concern. "(B)(i) No loan shall be made under this paragraph if the total amount outstanding and committed O^y participation or otherwise) to the borrower would exceed $750,000. "(ii) Subject to the provisions of clause (i), in agreements to participate in loans on a deferred (guaranteed) basis, participation by the Administration shall be not less than 85 per centum of the balance of the financing outstanding at the time of disbursement. "(iii) The rate of interest on financings made on a deferred (guaranteed) basis shall be legal and reasonable. "(iv) Financing made pursuant to this paragraph shall be subject to the following limitations: "(I) No immediate participation may be purchased unless it is shown that a deferred participation is not available. "(II) No direct financing may be made unless it is shown that a participation is unavailable. "(C) A direct loan or the Administration's share of an immediate participation loan made pursuant to this paragraph shall be any secured debt instrument— "(i) that is subordinated by its terms to all other borrowings of the issuer; "(ii) the rate of interest on which shall not exceed the current average market jrield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loan and adjusted to the nearest one-eighth of 1 per centum; "(iii) the term of which is not more than twenty-five years; and "(iv) the principal on which amortized at such rate as may be deemed appropriate by the Administration, and the interest on which is payable not less often than annually.". SEC. 303. CONTRACTUAL ASSISTANCE.

15 USC 636.

Marketing,

(a) COMPETITIVE BUSINESS MIX.—Section 7(j)(10) of the Small Business Act (15 U.S.C. 363(j)(10)), is further amended by adding at the end thereof the following new subparagraph: "(i) During the developmental s t ^ e of its participation in the Program, a Program Participant shall take all reasonable efforts within its control to attain the targets contained in its business plan for contracts awarded other than pursuant to section 8(a) (hereinafter referred to as 'business activity targets.'). Such efforts shall be made a part of the business plan and shall be suf^cient in scope and duration to satisfy the Administration that the Program Participant will engage a

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