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B-126652 1 (1979-07-11)

handle is hein.gao/gaobabjoe0001 and id is 1 raw text is: 





  2          COMPTROLLER GENERAL OF-THE UNITED STATES
                       WASHINGTON. O.C, 20548




B-1 26652
CED9-360                        JUL 11 1S79



The Honorable William Proxmre       000
ChIairman, Committee on Banking, 6
  Housing and Urban Affairs
United States Senate

Dear Mr. Chairman:

     Following are our;7mr..ents on S. 1150which, if enacted,
would be cited as the v'evelopment Financi-(g Act of 1979.

     Title II of S. 1150, which relates to the business
development financing program of the Public Works and Economic
Developrent Act of 1965, would, among other things,

     --clarify that interest subsidies are to be rade
       only if, and to the extent that, the Secretary of
       Commerce finds this action necessary to accomplish
       the project;

     --delineate the primary and secondary factors to be
       considered in the selection of projects;

     --establish various limitations on direct loans and
       guarantees, in order to target the assistance
       provided to achieve the purposes of the act; and

     --provide separate authorizations for direct loans,
       interest subsidies, and loan guarantees.

     Section 303(c) of the bill would require the Ceneral
Accounting O:fice to conduct a thorouch review of tne
developent financing ;rograms authorized under Title II
and to subcrit a report to the Congress not later than
July 1, 1980. The report would be required to include an
assessment of the effectiveness of the deveiopyent financ-
ing prograis in acheving the puroses of the act, a

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