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B-197439 1 (1980-11-26)

handle is hein.gao/gaobadisq0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES A S.I N WASHINGTON, D. C.'20548 FILE: B-197439 * DATE: November 26, 1980 MATTER OF: Reconsideration of authority of SBA to leverage Minority Business Resource Center investments in minority enter rise small DIGEST: business investment companie Decision of July 29, 1980, B-197439, which held that SBA did not have authority to leverage (match) investments of the Minority Business Resource Center in minority enter- prise small business investment companies is affirmed. This is in response to a letter of October 20, 1980, from the General Counsel of the Small Business Adminis- tration (SBA) requesting reconsideration of our decision B-197439, July 29, 1980. That decision held that SBA did not have authority to leverage (match) investments of tre f)OT Department f Minority 'usiness Resourcefl4453 Center in minority enterprise small business investment companies (MESBICs). The decision was based on our con- clusion that section 303(c)(2)(iii) of the Small Business Investment Act, 15 U.S.C. §683(c)(2)(iii), limits lever- aging to private money. Since the Minority Business Re- source Center uses Federal money and since no other statute authorizes SBA to leverage the Center's money, we held that SBA had no authority to leverage in that case. We have considered the arguments set forth in SBA's reconsideration letter and find nothing -that would justify a change in our decision. SBA points out, and we agree, that SBA may leverage Federal money where there is statutory language similar to that in the Community Services Act, Pub. L. No. 93-644, 88 Stat. 2291 (1975). The Community Services Act expressly provides that money invested under it in MESBICs is to be considered private for leveraging purposes. See 42 U.S.C. §2985a(a)(1). SBA argues that the Community Services Act contained this express statutory language only because SBA's regulation had not been promulgated when Congress was con- sidering the bill (H.R. 14449, 93d Cong., 2d sess. (1974)) that became the Community Services Act. Since SBA's regula- tion had been in effect for several years when Congress authorized the Minority Business Resource Center within the

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