A bill to amend the Small Business Act to authorize the Administrator of the Small Business Administration to reduce the amount of performance and payment bonds in connection with contracts let to the administration under section 8 (a) of such act.

Amends the Small Business Act to prohibit the Administrator of the Small Business Administration from requiring a small business concern to provide a performance or payment bond in connection with any subcontract made with such small business concern, if the Administrator determines it is inappropriate in performing such subcontract.