DEVELOPMENT COMPANIES—STAFF AND OVERHEAD.

SEC. 117. DEVELOPMENT COMPANIES—STAFF AND OVERHEAD. (a) Staff.— Section 503(d) of the Small Business Investment Act of 1958 (15 U.S.C. 697(d)) is amended— (1) by inserting “(1)” after “(d)”; (2) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; and (3) by adding at the end thereof the following new paragraph: “(2) A company in a rural area shall be deemed to have satisfied the requirements of a full-time professional staff and professional management ability if it contracts with another certified development company which has such staff and management ability and which is located in the same general area to provide such services.”. (b) Overhead.— The Small Business Investment Act of 1958 is amended by adding at the end thereof the following new section: “restrictions on development company assistance “Sec. 506. Notwithstanding Any Other Provision of Law: (1) on or after May 1, 1991, no development company may accept funding from any source, including but not limited to any department or agency of the United States Government, if such funding includes any conditions, priorities or restrictions upon the types of small businesses to which they may provide financial assistance under this title or if it includes any conditions or imposes any requirements, directly or indirectly, upon any recipient of assistance under this title; and (2) before such date, no department or agency of the United States Government which provides funding to any development company shall impose any condition, priority or restriction upon the type of small business which receives financing under this title nor shall it include any condition or impose any requirement, directly or indirectly, upon any recipient of assistance under this title: Provided, That the foregoing shall not affect any such conditions, priorities or restrictions if the department or agency also provides all of the financial assistance to be delivered by the development company to the small business and such conditions, priorities or restrictions are limited solely to the financial assistance so provided.”. (c) Report.— Not later than one hundred and eighty days after the effective date of this Act, the Small Business Administration shall report to the Small Business Committees of the Senate and the House of Representatives on the amount and nature of all financial 102 STAT. 2999assistance or income being received by certified development companies from sources other than the Small Business Administration or those being assisted by the programs authorized in title V of the Small Business Investment Act of 1958. The report shall include any conditions or restrictions imposed on the development companies due to such financial assistance, a comparison of all sources of income which comprise the development companies’ budgets, an analysis of the financial impact of various sources of financial assistance, and the feasibility of restricting assistance received from the Federal Government solely to Small Business Administration funding. (d) The table of contents of such Act is amended by inserting the following new item at the end thereof: “Sec. 506. Restrictions on development company assistance.”.