seek to appoint members with diverse ethnic, cul-
tural, and geographic backgrounds.
‘‘(f) SELECTION OF GRANT RECIPIENTS.—
‘‘(1) IN GENERAL.—Grant recipients under the
program will be selected by the Secretary on the
basis of recommendations made by the panel of ex-
perts established pursuant to subsection (e) after a
merit-based comparative evaluation of proposed
projects conducted as part of a national competition.
The national competition shall be held on a periodic
basis.
‘‘(2) SCORING SYSTEM.—In order to make rec-
ommendations pursuant to paragraph (1), the panel
shall rank the proposed projects by priority using a
scoring system based on criteria described in sub-
section (g).
‘‘(3) GEOGRAPHIC BALANCE.—The project scor-
ing system used pursuant to paragraph (2) shall be
weighted to promote a balance among the regions of
the United States and a balance among urban and
rural areas; except that no specific formula may be
used to apportion the projects between urban and
rural areas.
‘‘(g) CRITERIA TO BE USED BY PANEL.—
‘‘(1) CRITERIA.—In recommending grant recipi-
ents under the program, the panel shall consider the
following:
‘‘(A) The role of the intermediary in the
community, including the extent to which the
intermediary has a clearly articulated role in
the economic development strategy of the com-
munity and the extent to which such role is
supported by both private sector and public sec-
tor leaders in the community.
‘‘(B) 
The 
capacity 
of 
the 
eligible
intermediary to participate in the program.
‘‘(C) The business plans and prospects of
the businesses which would receive assistance
from the grant amounts.
‘‘(D) The quantity and quality of jobs to
be created or retained by the projects.
‘‘(E) The commitment of the businesses to
remain in the community.
‘‘(F) The level of economic distress in the
community involved.
‘‘(G) The leveraging of non-Federal funds
committed to the projects.
‘‘(2) 
SPECIAL
CONSIDERATIONS.—In 
rec-
ommending grant recipients under the program, the
panel shall give special consideration to the following
applicants:
‘‘(A) Applicants who operate existing re-
volving loan funds.
‘‘(B) Applicants who have applied for des-
ignation as empowerment zones or enterprise
communities under subchapter U of chapter 1
of the Internal Revenue Code of 1986 but have
not received such designation because of the
limited number of communities that may receive
such designation.
‘‘(C) Applicants who represent commu-
nities adversely affected by the closure or re-
alignment of a military installation or by de-
fense industry cutbacks.
‘‘(h) DEADLINES.—
‘‘(1) SUBMISSION OF APPLICATIONS.—The Sec-
retary shall publish in the Federal Register dead-
lines for the submission of grant applications under
the program.
‘‘(2) APPROVAL OR DISAPPROVAL OF APPLICA-
TIONS.—The Secretary shall approve or disapprove
each grant application received by the Secretary
under the program on or before the 60th day follow-
ing the deadline for submission of such grant appli-
cation established pursuant to paragraph (1).
‘‘(3) USE
OF
GRANT
AMOUNTS.—Any grant
agreement entered into by the Secretary and an eli-
gible intermediary under the program shall require
that the eligible intermediary provide assistance to
businesses using the grant amounts on or before the
90th day after the date of receipt of such grant
amounts or shall return any remaining portion of
such grant amounts to the Secretary for subsequent
grant awards under the program.
‘‘(i) FUNDING.—Of the amounts appropriated to
carry out this title for fiscal year 1995 $20,000,000 shall
be available to carry out this section.’’.
SEC. 4. LOAN GUARANTEE DEMONSTRATION PROGRAM.
Title IX of such Act is further amended by inserting
after section 905, as added by section 3 of this Act, the
following:
‘‘SEC. 906. LOAN GUARANTEE DEMONSTRATION PROGRAM.
‘‘(a) AUTHORITY TO GUARANTEE LOANS.—To the
extent the Secretary considers appropriate to carry out the
economic adjustment purposes of this title, the Secretary
is authorized to guarantee loans made to private borrowers
by private lending institutions, community development fi-
nancial institutions, and other lenders.
‘‘(b) ELIGIBLE ACTIVITIES.—Activities for which
loans may be guaranteed under this section include the
development of land and facilities (including machinery
and equipment) for industrial or commercial usage (such
as the construction of new buildings, the rehabilitation of
abandoned or unoccupied buildings, and alterations, con-
version, or enlargement of existing buildings) and the pro-
vision of working capital.
‘‘(c) TERMS AND CONDITIONS.—The Secretary may
make loan guarantees under this section upon application
of the lenders and upon such terms and conditions as the
Secretary may prescribe; except that—
‘‘(1) no such guarantee shall at any time exceed
90 percent of the outstanding unpaid balance of
such loans; and
‘‘(2) no such guarantee shall be provided unless
the lender or the lender’s designee is responsible and
makes adequate provision for servicing the loan on
reasonable terms and for protecting the financial in-
terests of the United States.
‘‘(d) FULL FAITH AND CREDIT.—Loan guarantees
provided under this section shall have the full faith and
credit of the United States.
‘‘(e) PREFERRED LENDERS.—To the extent feasible,
the Secretary shall conduct the guarantee program estab-
lished under this section on a preferred lenders basis and
shall authorize lenders, in accordance with agreements en-
tered into between the Secretary and such lenders, to take
such actions on the Secretary’s behalf as the Secretary
considers appropriate, including the determination of eligi-
bility and credit worthiness and loan monitoring, collec-
tions, and liquidation.
‘‘(f) FUNDING.—Of the amounts appropriated to
carry out this title for fiscal year 1995 $10,000,000 shall
be available to carry out this section.’’.
SEC. 5. REPORTING REQUIREMENT.
Title IX of such Act is further amended by inserting
after section 906, as added by section 4 of this Act, the
following:
‘‘SEC. 907. REPORTING REQUIREMENT.
‘‘As part of the annual report to be transmitted to
Congress under section 707 of this Act, the Secretary shall
include an assessment of—
‘‘(1) the competitiveness of the economic base
of the Nation’s distressed areas;
‘‘(2) the Nation’s progress in encouraging in-
vestment in competitive businesses located in dis-
tressed areas outside the mainstream of economic
growth;