(a) The Director is authorized, subject to the provisions of section 1256 of this chapter and subject to the prior approval of the Loan Policy Board, to make, participate (on an immediate basis) in, or guarantee loans, repayable in not more than 15 years, to any small business concern (as defined in section 1252 and regulations issued thereunder), or to any eligible person as defined in section 1252 of this chapter seeking to establish such a concern, when he determines that such loans will assist in carrying out the purposes of this chapter: provided, however, that no loan shall be made from the Small Business Development and Loan Fund to a single borrower if the total of all loans from such Fund to such borrower outstanding at any one time would exceed $100,000; and provided, further, that no such loans shall be made, participated in, or guaranteed if the total of such assistance under the provisions of this chapter to a single borrower outstanding at any one time would exceed $300,000; and provided, further, that when the Economic Development Agency of the United States Department of Commerce is participating with the local government in financing a particular project, the maximum time for repayment of the loan shall be the same as for loans made, participated in or guaranteed by the Economic Development Agency of the United States Department of Commerce. The Director may defer payments on the principal of such loans for a grace period and use such other methods as he deems necessary and appropriate to assure the successful establishment and operation of such small business concern. The Director shall, unless it is clearly indicated to be unnecessary, as a condition of such financial assistance, require that the borrower take steps to improve his management skills by participating in a management training program approved by the Director; provided, however, that any management training program so approved must be of sufficient scope and duration to provide reasonable opportunity for the individuals served to develop entrepreneurial and managerial self-sufficiency. The Director shall encourage, as far as possible, the participation of the private business community in the programs of assistance to such small business concerns, and seek to stimulate new private lending activities to such concerns through the use of the loan guaranties and participations in loans.
(b) The Director shall provide for continuing evaluation of programs under this section, including information on the location, income characteristics, and types of businesses and individuals assisted and new private lending activity stimulated. The results of such evaluation together with recommendations shall be included in the report required by section 1263 of this chapter.