Page:United States Statutes at Large Volume 95.djvu/917

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 891

"(8) Assistance to a certified firm in the implementation of such a proposal. "(b)(1) The Secretary shall furnish technical assistance under this chapter through existing agencies and through private individuals, firms, or institutions (including private consulting services), or by grants to intermediary organizations (including Trade Adjustment Assistance Centers). "(2) In the case of assistance furnished through private individuals, firms, or institutions (including private consulting services), the Secretary may share the cost thereof (but not more than 75 percent of such cost may be borne by the United States). "(3) The Secretary may make grants to intermediary organizations in order to defray up to 100 percent of administrative expenses incurred in providing such technical assistance to a firm.". LIMITATION ON PROVISION OF DIRECT LOANS

SEC. 2522. Section 254(c) of the Trade Act of 1974 (19 U.S.C. 2344(c)) is amended to read as follows: "(c) No direct loan may be provided to a firm under this chapter if the firm can obtain loan funds from private sources (with or without a guarantee) at a rate no higher than the maximum interest per annum that a participating financial institution may establish on guaranteed loans made pursuant to section 7(a) of the Small Business Act.". Ante, p. 767. CONDITIONS FOR FINANCIAL ASSISTANCE

SEC. 2523. Section 255 of the Trade Act of 1974 (19 U.S.C. 2345) is amended— (1) by amending subsection (b) to read as follows: "(b)(1) The rate of interest on direct loans made under this chapter shall be— "(A) a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods of maturity that are comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 percent, plus "(B) an amount adequate in the judgment of the Secretary of Commerce to cover administrative costs and probable losses under the program. "(2) The Secretary may not guarantee any loan under this chapter if— "(A) the rate of interest on either the portion to be guaranteed, or the portion not to be guaranteed, is determined by the Secretary to be excessive when compared with other loans bearing Federal guarantees and subject to similar terms and conditions, and "(B) the interest on the loan is exempt from Federal income taxation under section 103 of the Internal Revenue Code of 1954."; 26 USC 103. (2) by amending subsection (c)— (A) by amending the first sentence to read as follows: "The Secretary shall make no loan or guarantee of a loan under section 254(b)(l) having a maturity in excess of 25 years or the useful life of the fixed assets (whichever period is shorter), including renewals and extensions; and shall make no loan or guarantee of a loan under section 254(b)(2) having

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