Small Business Loan Reform Act of 1979

[AI summary unavailable — showing source text] Small Business Loan Reform Act of 1979 - Amends the Small Business Act to empower the Small Business Administration (SBA) to guarantee or insure loans to small business concerns directly through banks and other private financial institutions. Requires the SBA to certify a financial institution according to published criteria developed in cooperation with appropriate regulatory agencies. Allows a financial institution to be certified to participate in the loan program if its respective regulator verifies that the institution has the necessary expertise to make small business loans. Stipulates that qualified financial institutions shall be responsible for all loan administration functions, including size determination of the small business concern, credit analysis, loan monitoring, and loan collection and liquidation. Stipulates that such SBA loans shall not: (1) be extended if financial assistance is otherwise available on comparable terms from non-Federal sources; (2) be insured in excess of 90 percent of the balance of the loan outstanding at the time of disbursement; (3) be made for a period exceeding ten years, except that portion of a loan made for the purpose of acquiring real…