An Act to create a solar energy and energy conservation loan program within the Small Business Administration, and for other purposes.
PL 95-315 (H.R.11713), enacted 07/04/1978

PUBLIC LAW 95-315—JULY 4, 1978 
92 STAT. 377 
Public Law 95-315 
95th Congress 
An Act 
To create a solar energy and energy conservation loan program within the Small 
Business Administration, and for other purposes. 
Be it enacted hy the Senate and House of RepreserUaiwes of the 
United States of America in Congress assemhled, That this Act may be 
cited as the "Small Business Energy Loan Act". 
SEC. 2. Section 7 of the Small Business Act is amended by adding 
at the end thereof the following new subsection: 
"(1) (1) The Administration also is empowered to make loans (either 
directly or in cooperation with banks or other lending institutions 
through agreements to participate on an immediate or deferred basis) 
as the Administrator may determine to be necessary or appropriate to 
assist any small business concern in financing plant construction, con-
version, expansion (including acquisition of land for such a plant), or 
startup, a;nd the acquisition of equipment, facilities, machinery, sup-
plies, or materials to enable such concern to design architecturally or 
engineer, manufacture, distribute, market, install, or service any of the 
following energy measures: 
"(A) Solar thermal energy equipment which is either of the 
active type based upon mechanically forced energy transfer or 
of the passive type based on convective, conductive, or radiant 
energy transfer or some combination of these types. 
"(B) Photovoltaic cells and related equipment. 
" (C) A product or service the primary purpose of which is con-
servation of energy through devices or techniques which increases 
the energy efficiency of existing equipment, methods of operation, 
or systems which use fossil fuels, and which is on the Energy Con-
servation Measures List of the Secretary of Energy or which the 
Administrator determines to be consistent with the intent of this 
subsection. 
"(D) Equipment the primary purpose of which is production 
of energy from wood, biological waste, grain, or other biomass 
source of energy. 
"(E) Equipment the primary purpose of which is industrial 
cogeneration of energy, district heating, or production of energy 
from industrial waste. 
"(F) Hydroelectric power ec[uipment. 
"(G) Wind energy conversion equipment. 
"(H) Engineering, architectural, consulting, or other profes-
sional services which are necessary or appropriate to aid citizens 
in using any of the ineasures described in subparagraphs (A) 
through (G)- 
. 
. 
Proceeds of loans under this subsection shall not be used primarily 
for research and development. 
" (2) No loan shall be made under this subsection if the total amount 
outstanding and committed (by participation or otherwise) to the 
borrower from the business loan and investment fund established by 
this Act would exceed $500,000. No loan made or effected under this 
subsection directly or in cooperation with banks or other lending 
institutions through agreements to participate on an immediate basis 
shall exceed $350,000. 
July 4. 1978 
[H.R. 11713] 
Small Business 
Energy Loan Act. 
15 use 631 note. 
15 use 636. 
92 STAT. 378 
PUBLIC LAW 95-315—JULY 4, 1978 
Regulations. 
Publication in 
Federal Register. 
15 u s e 636. 
Grants. 
"(3) No financial assistance shall be extended pursuant to this sub-
section unless the financial assistance applied for is not otherwise avail-
able on reasonable terms from non-Federal sources. 
"(4) No immediate participation may be purchased unless it is 
shown that a deferred participation is not available; and no loan may 
be made unless it is shown that a participation is not available. 
" (5) In agreements to participate in loans on a deferred basis under 
this subsection, the Administration's participation shall not be in 
excess of 90 per centum of the balance of the loan outstanding at the 
time of disbursement. 
"(6) The Administration's share of any loan made under this sub-
section shall bear interest at the same rate as loans made under sub-
section (a) of this section. The maximum terms of any such loan, 
including extensions and renewals, may not exceed fifteen years. 
"(7) AH loans made under this subsection shall be of such sound 
value as reasonably to assure repayment, recognizing that greater risk 
may be associated with loans made to business concerns in this field: 
Provided^ That factors in determining 'sound value' shall include, but 
not be limited to, quality of the product or service; technical qualifi-
cations of the applicant or his employees; sales projections; and the 
financial status of the business concern: Provided further^ That such 
status need not be as sound as that required for loans under subsection 
(a) of this section. 
"(8) (A) The Administration, after consultation with the Depart-
ment of Energy and other Federal departments and agencies as the 
Administrator deems appropriate, shall publish in the Federal Regis-
ter for public comment not later than sixty days after the date of 
enactment of this subsection proposed regulations to carry out the 
provisions of this subsection. The Administration shall make all rea-
sonable efforts to solicit comments from small businesses and shall take 
into consideration comments submitted regarding such proposed 
regulations. 
"(B) The administration shall publish final regulations under this 
subsection not later than one hundred and eighty days after the date 
of enactment of this subsection. 
"(9) It is the intent of Congress that the paperwork burden and 
re^latory impact on applicant under this subsection shall be mini-
mized, and that to the maximum extent practicable, the Administrator 
may rely upon consultation with the Department of Energy and other 
agencies, upon paid consultants, and upon voluntary public submis-
sions of information to obtain market data, industry sales projections, 
energy savings, and other economic information needed to carry out 
the provisions of section 7(1) (1) (D) and ^E). Nothing in this sub-
section shall be construed as precluding the Administrator from using 
any of his lawful powers to obtain information from applicants.". 
SEC. 3. Section 7(d) of the Small Business Act is amended by insert-
ing "(1)" after "(d)" and by adding at the end of such subsection 
the following paragraph: 
" (2) The Administration is authorized to hold seminars throughout 
the Nation to make potential applicants aware of the opportunities 
available under this subsection and related government energy pro-
grams, and to make grants to qualified organizations to provide train-
ing seminars for small business concerns regarding practical and easily 
implemented methods for design, manufacture, installation, and serv-
icing of equipment and for providing services listed in paragraph 
(1) of this subsection, except that recipients of loans made pursuant 
to this subsection shall not subsequently be eligible for such grants.". 
PUBLIC LAW 95-315—JULY 4, 1978 
92 STAT. 379 
SEC. 4. Section 4(c) of the Small Business Act is amended— 
(1) in subparagraph (B) of paragraph (l),by inserting "7(1)," 
after "7(i),"; and 
(2) in subparagraph (B) of paragraph (2), by inserting "7 
(1) "after"7(i) ". 
SEC. 5. Section 20(e) of the Small Business Act (15 U.S.C. 649(e)) 
is amended by adding at the end thereof a new paragraph as follows: 
"(10) For the programs authorized by section 7(1) of this Act, 
the Administration is authorized to make $30,000,000 in direct and 
immediate participation loans and $45,000,000 in guaranteed loans.". 
SEC. 6. Section 10(b) of the Small Business Act (15 U.S.C. 639(b)) 
is amended by adding the following: "Such report shall contain the 
number and amount of loans, the number of applications, the total 
amount applied for, and the number and amount of defaults for each 
type of equipment or service for which loans are authorized by this 
subsection, and on the projected and actual energy savings and num-
bers of jobs created by firms through loans made under section 7(1) 
of the Small Business Act. The Department of Energy shall assist the 
Administration in obtaining information and compiling this report.". 
SEC. 7. Section 20(f) of the Small Business Act (15 U.S.C. 649(f)) 
is amended by striking the first sentence and inserting in lieu thereof: 
"There are authorized to be appropriated to the Administration for • 
fiscal year 1979 $1,601,750,000 to carry out the programs referred to 
in subsection (e), paragraphs (1) through (10).". 
Approved July 4, 1978. 
15 u s e 633. 
15 u s e 631 note. 
15 u s e 636. 
Reports to 
President, 
eongress, and 
congressional 
committees. 
15 u s e 636. 
15 u s e 631 note. 
Appropriation 
authorization. 
v i ; 
uj"'}"-'i 
i/'jiL 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-1071 (Gomm. on Small Business). 
' 
SENATE REPORT No. 95-828 (Select eomm. on Small Business). 
eONGRESSIONAL RECORD, Vol. 124 (1978): 
May 2, considered and passed House. 
May 24, considered and passed Senate, amended. 
June 16, House concurred in Senate amendment with amendments. 
June 19, Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 27: 
July 4, Presidential statement. 
-pt. 1 
28 : QL3