John Danforth: “turning to the loan guarantee provision in this legislation, I will read from the committee report, and the Senator from…”

“turning to the loan guarantee provision in this legislation, I will read from the committee report, and the Senator from Missouri did not write the committee report. Let me just read the relevant portion from it: The bill would require that the subsidy rate for the loan program not exceed 15 percent. Therefore, CBO estimates that $50 million authorized for this program in 1995 would permit the Government to make or guarantee about $300 million in loans. In other words, $50 million is 15 percent of $300 million, and according to the way CBO scores this, a $50 million authorization permits $300 million in loans. And it follows, as day and night, that $50 million a year for 2 years, or a total of $100 million in authorization, would yield $600 million in loans. That is the exposure under this legislation. It is not $50 million or $100 million; it is $300 million, or $600 million in loans. To whom? I intend to pursue that in just a minute. Mr. President, reading from some excerpts and commenting on them from the section which my amendment would strike from the bill, this provision in the legislation provides that a pilot program, as it is called, shall be operated under the direction of the Department of Commerce-Small Business Administration Venture Capital Licensing Committee. That is the name of the new organization that is created-- the Department of Commerce Small Business Administration Venture Capital Licensing Committee.…”