The issue of how to keep an adequate supply of money flowing to start-up companies will be examined Tuesday on Capitol Hill.
The House Small Business Committee will begin hearings on a bill to create a quasigovernmental corporation that would raise money in the private sector and funnel it through venture capitalists to fledgling companies.
Under the plan, the government-sponsored company would be created out of a 30-year-old federal program now run by the Small Business Administration to raise money for small businesses.
Venture capitalists licensed by the SBA can borrow up to $3 for every $1 of their own they invest in start-up firms.
Other developments this week: Committee on proposals to reform the nation's banking laws, particularly the 54-year-old law that separates commercial banking from securities underwriting.
Friday is the deadline for Congress to decide where to cut $23 billion from the nation's budget for fiscal 1988, which began Oct 1. If lawmakers cannot agree by then on where to make the trims, the Gramm-Rudman-Hollings Deficit Reduction Act will automatically make across-the-board spending cuts of $23 billion -- with some major exceptions such as Social Security.
Several economic indicators are due.
On Monday the Federal Reserve will release a report on the nation's industrial production during October. The Commerce Department is scheduled to release a report on business inventories and sales during September. And on Friday the Labor Department will release the consumer price index for October.