Page:United States Statutes at Large Volume 78.djvu/568

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PUBLIC LAW 88-452-AUG. 20, 1964

[78 STAT.

TITLE IV—EMPLOYMENT AND INVESTMENT INCENTIVES STATEMENT, OF PURPOSE

Small business concerns, assist-

ance.

gjj-^, ^Q]^ I t is the DurposG of tMs title to assist ill tliB establishment, ,.

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preservation, and strengthening oi small business concerns and improve the managerial skills employed in such enterprises; and to mobilize for these objectives private as well as public managerial skills and resources. LOANS, PARTICIPATIONS, AND GUARANTIES

72 Stat. 384.

SEC. 402. The Director is authorized to make, participate (on an immediate basis) in, or guarantee loans, repayable in not more than fifteen years, to any small business concern (as defined in section 3 of ^j^g Small Busiuess Act (15 U.S.C. 632) and regulations issued thereunder), or to any qualified person seeking to establish such a concern, •when he determines that such loans will assist in carrying out the purposes of this title, with particular emphasis on employment of the long-term unemployed: Provided, however, That no such loans shall be made, participated in, or guaranteed if the total of such Federal assistance to a single borrower outstanding at any one time would exceed $25,000. The Director may defer payments on the principal of such loans for a grace period and use such other methods as he deems necessary and appropriate to assure the successful establishment and operation of such concern. The Director may, in his discretion, as a condition of such financial assistance, require that the borrower take steps to improve his management skills by participating in a management training program approved by the Director. The Director shall encourage, as far as possible, the participation of the private business community in the program of assistance to such concerns. COORDINATION WITH COMMUNITY ACTION PROGRAMS

SEC. 403. No financial assistance shall be provided under section 402 in any community for which the Director has approved a community action program pursuant to title II of this Act unless such financial assistance is determined by him to be consistent with such program. FINANCING UNDER SMALL BUSINESS ACT

76 Stat. 220. 72 Stat. 387; 75 Stat. 167. Ante, p. 7.

SEC. 404. Such lending and guaranty functions under this title as may be delegated to the Small Business Administration may be financed with funds appropriated to the revolving fund established ^y ggction 4(c) of the Small Business Act (15 U.S.C. 633(c)) for the purposes of sections 7(a), 'r(b), and 8(a) of that Act (15 U.S.C. 636(a), 6 3 6 (b), 6 3 7 (a)). LOAN TERMS AND CONDITIONS

SEC. 405. Loans made pursuant to section 402 (including immediate participation in and guaranties of such loans) shall have such terms and conditions as the Director shall determine, subject to the following limitations— (a) there is reasonable assurance of repayment of the loan; (b) the financial assistance is not otherwise available on reasonable terms from private sources or other Federal, State, or local programs;

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