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person to whom the payments under qualified contracts are

2 due.

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" (e) Section 402 shall apply to the administration of

4 this section.”.

94TH CONGRESS

1st SESSION

H. R. 9208

IN THE HOUSE OF REPRESENTATIVES

August 1, 1975 Mr. Downey of New York introduced the following bill; which was referred

to the Committee on Small Business

A BILL To amend the Small Business Investment Act of 1958 to create

a pollution control financing program for small businesses. 1 Be it enacted by the Senate and Flouse of Representa2 tives of the United States of America in Congress assembled,

3 That section 403 of the Small Business Investment Act of

4 1958 is amended

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(1) in the first sentence thereof by striking out and

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(2) by striking out “$10,000,000” and inserting in lieu thereof “$25,000,000"; and

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(3) by striking out “programs” each time it appears therein and inserting in lieu thereof “program”.

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SEC. 2. Title IV of the Small Business Investment Act

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1 of 1958 is amended by adding at the end thereof the follow

2 ing new section:

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"SEC. 404. (a) For purposes of this section, the term

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“(1) ‘Pollution control facilities' means such prop

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erty (both real and personal) as the Administration in

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its discretion determines is likely to help reduce, abate,

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or control air or water pollution or contamination by removing, altering, disposing, or storing pollutants, contaminants, wastes, or heat, and such property (both real

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and personal) as the Administration determines will be

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used for the collection, storage, treatment, utilization,

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processing, or final disposal of solid waste.

“(2) Qualified contract' means a lease, sublease,

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loan agreement, installment sales contract, or similar

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instrument, entered into between a small business con

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cern and any person.

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* (b) Whenever the Administration determines that 18 small business concerns are or are likely to be at an opera19 tional or financing disadvantage with other business con

cerns with respect to the planning, design, or installation 21 of pollution control facilities, or the obtaining of private 22 financing therefor (including financing by means of revenue 23 bonds issued by States, political subdivisions thereof, or other

public bodies), it may guarantee, upon such terins and con25 ditions as the Administration may prescribe, either directly

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1 or in cooperation with a qualified surety company or other 2 qualified company through a participation agreement with

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such
company,
the payment

of rentals or other amounts due

4 under qualified contracts, and any such guarantee shall be

5 for the full amount of the payments due under such qualified 6 contract. Any guarantee made by the Administration pur7 suant to this section shall be a full faith and credit obliga

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"(c) The Administration shall fix a uniform fee which

10 it deems reasonable and necessary for any guarantee issued

11 under this section, to be payable at such time and under 12 such conditions as may be determined by the Administration. 13 Such fee shall be subject to periodic review in order that 14 the lowest fee that experience under the program shows to 15 be justified will be placed into effect. The Administration 16 may also fix such uniform fees for the processing of applica17 tions for guarantees under this section as it determines are 18 reasonable and necessary to pay administrative expenses 19 incurred in connection therewith. The Administration may 20 require that an amount, not to exceed one-fourth of the 21 average annual payments for which a guarantee is issued 22 under this section, be placed in escrow upon such terms and 23 conditions as the Administration may prescribe. 24 “(d) Any guarantee issued under this section may be 25 assigned with the permission of the Administration by the

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person to whom the payments under qualified contracts are

2 due.

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“ (e) Section 402 shall apply to the administration of

4 this section.".

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