amendments to title iv—employment and investment incentives

amendments to title iv—employment and investment incentives Sec. 106. (a) Section 401 of the Economic Opportunity Act of 1964 is amended by striking out “enterprises;” and inserting in lieu thereof “enterprises, with special attention to small business concerns (1) located in urban or rural areas with high proportions of unemployed or low-income individuals, or (2) owned by low-income individuals;”. (b) Section 402 (a) of such Act is amended by— (1) striking out “employment of the long-term unemployed” in the first sentence and inserting in lieu thereof “the preservation or establishment of small business concerns located in urban or rural areas with high proportions of unemployed or low-income individuals or owned by low-income individuals”; (2) striking out the period at the end of the next to last sentence and inserting, in lieu thereof, a colon; and (3) inserting immediately preceding the last sentence, “ Provided, however, That any management training program so approved must be of sufficient scope and duration to provide reasonable opportunity for the individuals served to develop entrepreneurial and managerial self-sufficiency.” (c) Section 402 of such Act is amended— (1) by inserting before the period at the end of subsection (a) the following: and shall seek to stimulate new private lending activities to such concerns through the use of the loan guaranties, participations in loans, and pooling arrangements authorized by this section”; (2) by striking out the first subsection (b); 81 Stat. 711 (3) by adding at the end of the second subsection (b) the following: “To insure an equitable distribution between urban and rural areas for loans between $3,500 and $25,000 made under this title, the Administrator is authorized to use the agencies and agreements and delegations developed under title III of the Act as he shall determine necessary.”; and (4) adding at the end thereof the following new subsection: “(c) The Administrator shall provide for the continuing evaluation of programs under this section, including full information on the location, income characteristics, and types of businesses and individuals assisted, and on new private lending activity stimulated, and the results of such evaluation together with recommendations shall be included in the report required by section 608.” (d) Title IV of such Act is amended by— (1) renumbering section 405 to read “408” and inserting in such section “and the Secretary of Commerce” immediately following the word “Administration”; (2) striking out section 404; and (3) inserting new sections 404, 405, 406, and 407 to read as follows: “distribution of financial assistance “Sec. 404. The Administrator of the Small Business Administration shall take such steps as may be necessary to insure that, in any fiscal year, at least 50 per centum of the amounts loaned or guaranteed pursuant to this part are allotted to small business concerns located in urban areas identified by the Director, after consideration of any recommendations of the Administrator of the Small Business Administration, as having high concentrations of unemployed or low-income individuals or to small business concerns owned by low-income individuals. The Administrator of the Small Business Administration, after consideration of any recommendations of the Director, shall define the meaning of low income as it applies to owners of small business concerns eligible to be assisted under this part, and such definition need not correspond to the definition of low income as used elsewhere in this Act. “limitation on financial assistance “Sec. 405. No financial assistance shall be extended pursuant to this title where the Administrator of the Small Business Administration determines that the assistance will be used in relocating establishments from one area to another if such relocation would result in an increase in unemployment in the area of original location. “technical assistance and management training “Sec. 406. (a) The Administrator of the Small Business Administration is authorized to provide financial assistance to public or private organizations to pay all or part of the costs of projects designed to provide technical and management assistance to individuals or enterprises eligible for assistance under section 402, with special attention to small business concerns located in urban areas of high concentration of unemployed or low-income individuals or owned by low-income individuals. “(b) Financial assistance under this section may be provided for projects, including without limitation— “(1) planning and research, including feasibility studies and market research; 81 Stat. 712 “(2) the identification and development of new business opportunities; “(3) the furnishing of centralized services with regard to public services and government programs, including programs authorized under sect ion 402; “(4) the establishment and strengthening of business service agencies, including trade associations and cooperatives; “(5) the encouragement of the placement of subcontracts by major businesses with small business concerns located in urban areas of high concentration of unemployed or low-income individuals or owned by low-income individuals, including the provision of incentives and assistance to such major businesses so that they will aid in the training and upgrading of potential subcontractors or other small business concerns; and “(6) the furnishing of business counseling, management training, and legal and other related services, with special emphasis on the development of management training programs using the resources of the business community, including the development of management training opportunities in existing businesses, and with emphasis in all cases upon providing management training of sufficient scope and duration to develop entrepreneurial and managerial self-sufficiency on the part of the individuals served. “(c) The Administrator of the Small Business Administration shall give preference to projects which promote the ownership, participation in ownership, or management of small business concerns by residents of urban areas of high concentration of unemployed or low-income individuals, and to projects which are planned and carried out with the participation of local businessmen. “(d) To the extent feasible, services under this section shall be provided in a location which is easily accessible to the individuals and small business concerns served. “(e) The Administrator of the Small Business Administration shall, in carrying out programs under this section, consult with and take into consideration the views of the Secretary of Commerce, with a view to coordinating activities and avoiding duplication of effort. “(f) The President may, if he determines that it is necessary to carry out the purposes of this part, transfer any of the functions under this section to the Secretary of Commerce. “(g) The Administrator of the Small Business Administration shall provide for an independent and continuing evaluation of programs under this section, including full information on and analysis of the character and impact of managerial assistance provided, the location, income characteristics and types of businesses and individuals assisted, and the extent to which private resources and skills have been involved in these programs. Such evaluation together with any recommendations as he deems advisable shall be included in the report required by section 608. “government contracts “Sec. 407. (a) The Administrator of the Small Business Administration shall take such steps as may be necessary and appropriate, in coordination and cooperation with the heads of other Federal departments and agencies, so that contracts, subcontracts, and deposits made by the Federal Government or in connection with programs aided with Federal funds are placed in such a way as to further the purposes of this title. “(b) The Administrator of the Small Business Administration shall provide for the continuing evaluation of programs under this 81 Stat. 713section and the results of such evaluation together with recommendations shall be included in the report required by section 608.”