Business Opportunity Development Reform Act of 1988

Amends the Small Business Act to limit participation in the Small Business Administration's (SBA) small business and capital ownership development program. (Participation shall be conditioned upon the business concern meeting specified criteria of competitiveness.)

Provides additional assistance (including special contracts and training grants) for business concerns deemed to be in the "developmental stage" of program participation. Allows the SBA to purchase developmental investments in business concerns deemed to be in the "transitional stage" of program participation. (Business concerns in the "transitional stage" may also receive the assistance provided business concerns in the "developmental stage.")

Establishes within the Treasury a revolving fund to be used by the SBA to purchase such developmental investments. Authorizes appropriations for the fund.

Allows the Administrator of the SBA to approve joint venture agreements between program participants and other businesses if such a venture will enhance the participant's progress toward competitive viability and strengthen the free enterprise system.

Allows the SBA to award Government procurement contracts under the small business set-aside program based upon a competition between eligible program participants.

Provides mainstreaming assistance for business concerns which have graduated from the program.

Establishes time limitations for program participation.

Sets forth procedures for determining the "fair market price" with respect to the awarding of a Government procurement contract under such Act. Entitles a small business selected by the SBA to perform or negotiate such a contract to receive a written statement detailing the method used to estimate the current fair market price and to protest the use of such method to the Administrator.

States that gross receipts and employment attributable to the small business set-aside program shall not be included in determining the size of the business concern for any program or activity conducted under such Act or the Small Business Investment Act of 1958.

Sets forth criteria for SBA designation of a small business concern to negotiate a contract requirement under such Act.

Prohibits any SBA employee from owning stock, during his or her term of employment and for a period of five years after such employment, in a firm that was certified to receive contracts pursuant to such Act during such person's term of employment. Sets forth other restrictions on the activities of SBA employees.

Increases from $50,000 to $300,000 the fine for misrepresenting the status of any concern or person as a "small business concern" or "minority concern."

Allows the Committee on Small Business of either House of the Congress to direct the SBA Inspector General to investigate specified SBA programs and activities.

Directs the SBA to: (1) conduct meetings with program participants to ascertain the extent of regulations needed to implement this Act; and (2) publish such implementing rules and regulations in the Federal Register.

Prohibits any SBA employee from performing any of the principal functions of a Business Opportunity Specialist, a loan officer, or a Business Development Specialist as those functions relate to this Act unless such employee receives specialized training. Describes such training.