I
103D CONGRESS
1ST SESSION
H. R. 2192
To amend the FREEDOM Support Act to establish a program to provide
loans for joint ventures between United States small businesses and
small businesses or entrepreneurs in the independent states of the former
Soviet Union.
IN THE HOUSE OF REPRESENTATIVES
MAY 19, 1993
Mr. TRAFICANT introduced the following bill; which was referred jointly to the
Committees on Foreign Affairs, Ways and Means, and Banking, Finance
and Urban Affairs
A BILL
To amend the FREEDOM Support Act to establish a pro-
gram to provide loans for joint ventures between United
States small businesses and small businesses or entre-
preneurs in the independent states of the former Soviet
Union.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SMALL BUSINESS JOINT VENTURE LOAN PRO-
GRAM FOR THE FORMER SOVIET UNION.
(a) ESTABLISHMENT OF PROGRAM.—The Freedom
for Russia and Emerging Eurasian Democracies and Open
Markets Support Act of 1992 is amended by adding at
the end the following new title:
‘‘TITLE 
XI—SMALL 
BUSINESS
JOINT VENTURE LOAN PRO-
GRAM
‘‘SEC. 1101. PURPOSE.
‘‘It is the purpose of this title to assist United States
small businesses expand into markets in the independent
states of the former Soviet Union, thereby developing
those markets to the benefit of United States small busi-
nesses and the United States economy.
‘‘SEC. 1102. ESTABLISHMENT OF SMALL BUSINESS JOINT
VENTURE PROGRAM.
‘‘(a) IN GENERAL.—The Secretary of State shall
carry out a program in accordance with this title to sup-
port the establishment by United States small businesses
and Independent States small businesses or entrepreneurs
of joint ventures to engage in business activity in the inde-
pendent states of the former Soviet Union.
‘‘(b) EXAMPLES OF BUSINESS AREAS.—Joint ven-
tures supported under this title may include joint ventures
in areas such as manufacturing, telecommunications, en-
ergy production, environmental protection, agriculture,
housing, aviation, and defense conversion.
‘‘SEC. 1103. LOANS TO JOINT VENTURES.
‘‘(a) AUTHORIZATION.—The Secretary is authorized
to make loans in accordance with this section for joint ven-
tures described in section 1102(a).
‘‘(b) CRITERIA.—The Secretary shall use the follow-
ing criteria in determining which joint ventures receive a
loan under this section:
‘‘(1) Preference shall be given to joint ventures
involving United States small businesses located in
economically depressed communities.
‘‘(2) Preference shall be given to loans that will
be most cost-effective.
‘‘(3) Preference shall be given to joint ventures
that have the greatest likelihood of success. A loan
may not be made to a joint venture if the Secretary
determines that the joint venture is unlikely to be
successful.
‘‘(4) Preference shall be given to joint ventures
that are most likely to benefit the participating
United States small businesses and the United
States economy.
‘‘(5) Preference shall be given to joint ventures
in which—
‘‘(A) the participating United States small
business will provide the management, account-
ing, marketing, training, and other business ex-
pertise needed by the joint venture; and
‘‘(B) the participating Independent States
small business or entrepreneur will provide en-
trepreneurship, the understanding of local
needs and conditions, and the local resources
needed by the joint venture.
‘‘(6) Preference shall be given to joint ventures
that will produce goods that are to be used, or serv-
ices that are to be provided, within the independent
states of the former Soviet Union.
‘‘(c) LIMITATIONS ON AMOUNT OF LOAN.—A loan
under this section may not exceed $100,000. Not more
than one loan may be made for any single joint venture.
‘‘(d) TERM AND REPAYMENT OF LOANS.—The fol-
lowing shall apply with respect to any loan under this sec-
tion:
‘‘(1) The Secretary shall determine the term of
the loan.
‘‘(2) Payments of principal shall not be re-
quired during the 1st 3 years of the loan.
‘‘(3) Interest shall not accrue during the 1st 5
years of the loan. Thereafter, the rate of interest
shall be based on the average of the Consumer Price
Index (all items—United States city average), pub-
lished monthly by the Bureau of Labor Statistics in
the Department of Labor, for such period prior to
the due date for each interest payment as the Sec-
retary may determine.
‘‘(e) PROHIBITION ON TRANSFER OF JOBS FROM
THE UNITED STATES.—A loan may not be made to a joint
venture under this section if, as a result of that joint ven-
ture, the United States small business participating in the
joint venture would transfer any business operation or ac-
tivity that it has been carrying out in the United States
to any location outside the United States.
‘‘(f) PROHIBITION
ON IMPORTS
TO
THE UNITED
STATES.—
‘‘(1) IN GENERAL.—Goods produced pursuant
to any joint venture that receives a loan under this
section may not be imported into the United States,
including as parts or components of other goods.
‘‘(2) ENFORCEMENT.—The Secretary and the
Secretary of the Treasury shall take appropriate
steps to implement and enforce paragraph (1). Such
steps shall include a requirement that any joint ven-
ture that receives a loan under this section and pro-
duces any goods for export submit to the Secretary
such information as the Secretary may require re-
garding the foreign recipient of any such goods that