Office of Management and Budget Print this document

September 29, 2000

H.R. 2392 - Reauthorization of Small Business
Administration (SBA) Programs

(Rep. Talent (R) Missouri and 4 cosponsors)

The Administration strongly supports reauthorization of the programs of the Small Business Administration, and has no objection to Senate concurrence in the House amendment to H.R. 2392 without further amendment.

However, the Administration would strongly oppose any amendment to H.R. 2392 that would modify the current order of preference in Federal contracting between the "8(a)" program for socially and economically disadvantaged businesses and the HUBZone program for historically underutilized business zones. If H.R. 2392 were presented to the President with such a provision, the SBA Administrator would recommend that he veto it. The Administration supported the HUBZone Program with the understanding that it would not adversely affect the 8(a) Program. Failure to adhere to that understanding would pose a serious risk to the 8(a) Program.

The Administration appreciates the improvements in the "7(a)" guaranteed loan program included in H.R. 2392. The Administration urges Congress to maximize the effect of these improvements by adopting the Administration's proposal to raise the guarantee for loans of less than $150,000 to 90 percent. These changes would ensure that the 7(a) program continues to serve as the gap lender for small businesses most in need of financial assistance.

The Administration will also work with Congress to make the following changes to the bill:

The Administration understands that H.R. 2392 may be amended to incorporate Title IV, "Office of Advocacy of the Small Business Administration;" from H.R. 3843 as ordered reported by the Senate Small Business Committee. If H.R. 2392 is amended to include this provision, the Administration will work with Congress to:


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