To establish a pilot program under which the Administrator of the Small Business Administration, in consultation with regional technology consultants, may make direct loans to technology-related small business concerns.

Summary: Small Business High Technology Entrepreneurship Act of 2001 - Authorizes the Administrator of the Small Business Administration (SBA) to make direct loans under the Small Business Act to technology-related small businesses located in a technology region. Allows such a loan if the total amount of SBA loans to such business does not exceed $5 million. Requires the Administrator, in evaluating each loan applicant, to consult with and give considerable weight to the assessments, recommendations, and conclusions of the regional technology consultant regarding the technological feasibility and commercial viability of the applicant's business plan for the use of such funds, including any technological research or development involved. Requires the Administrator to select one nonprofit organization in each technology region to serve as such consultant.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business High Technology 
Entrepreneurship Act of 2001''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The United States is uniquely positioned to benefit 
        from the development and commercialization of technology 
        resulting from the development of biosciences, information 
        technology, and electronic technology.
            (2) Advances in biosciences, information technology, and 
        electronic technology will create new products, services, and 
        businesses, leading to high paying jobs and economic growth.
            (3) Technology networks are becoming necessary tools for 
        businesses in the United States because of their ability to 
        efficiently transfer information.
            (4) The development of biotechnology has produced processes 
        such as 3-dimensional volume visualization and advanced signal 
        processing which will help revolutionize both medical 
        diagnostics and surgery.
            (5) The ability of the electronic industry to rapidly 
        develop and manufacture measuring devices, sensors, 
        semiconductors, and other electronic components is an essential 
        component to providing for the national security of the United 
        States.
            (6) The bioscience, information technology, and electronic 
        technology sectors of the economy have all produced important 
        products, services, and businesses.
            (7) Building on past gains in these sectors is vital to 
        growing the United States economy, promoting health, and 
        increasing educational opportunities.
    (b) Purpose.--The purpose of this Act is to enable small business 
concerns engaged in biotechnology, computer technology, and electronics 
to produce essential new products, businesses, employment 
opportunities, and economic growth through technological innovation.

SEC. 3. TECHNOLOGY DIRECT LOAN PILOT PROGRAM.

    (a) In General.--The Administrator of the Small Business 
Administration may make direct loans under section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)) to technology-related small business 
concerns located in a technology region.
    (b) Special Rules.--Notwithstanding the requirements of section 
7(a) of the Small Business Act (15 U.S.C. 636(a)), the following 
special rules apply to loans described in subsection (a):
            (1) Amount of loans.--The Administrator may make such a 
        loan to a small business concern if the total amount 
        outstanding and committed to such concern under subsection (a) 
        of this section and section 7(a) of the Small Business Act (15 
        U.S.C. 636(a)) would not exceed $5,000,000.
            (2) Technological consultation.--
                    (A) In general.--In evaluating each application for 
                such a loan, the Administrator shall consult with, and 
                give considerable weight to the assessments, 
                recommendations, and conclusions of, the regional 
                technology consultant regarding the technological 
                feasibility and commercial viability of the applicant's 
                business plan, including any technological research or 
                development involved in such plan.
                    (B) Selection of regional technology consultants.--
                The Administrator shall select 1 non-profit 
                organization located in each technology region to serve 
                as the technology consultant for such region. In 
                selecting each regional technology consultant, the 
                Administrator shall ensure that such consultant has 
                knowledge and experience in evaluating the 
                technological feasibility and commercial viability of 
                business plans of technology-related small business 
                concerns.
            (3) Rule for resolving reasonable doubts.--Recognizing that 
        greater risk may be associated with such loans, any reasonable 
        doubt regarding the soundness of the applicant's business plan 
        (including the feasibility and viability of any technological 
        research or development involved in such plan) or the soundness 
        of the loan for purposes of section 7(a)(6) of the Small 
        Business Act (15 U.S.C. 536(a)(6)) shall be resolved in favor 
        the applicant.
    (c) Termination.--The Administrator may not make a loan pursuant to 
the special rules of this section after the end of the 2-year period 
beginning on the date of the enactment of this Act.
    (d) Annual Reports.--In any year during which the Administrator is 
authorized to make loans under this section, the Administrator shall 
submit to Congress a report regarding the technology direct loan pilot 
project conducted under this section. Such report shall include--
            (1) a list of the technology-related small business 
        concerns approved for loans under this section during such year 
        and the amounts of such loans;
            (2) recommendations for legislation that would improve the 
        pilot project; and
            (3) recommendations regarding the expansion of the pilot 
        project to additional technology regions or for an additional 
        period of time.
    (e) Definitions.--For purposes of this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) Regional technology consultant.--The term ``regional 
        technology consultant'' means the technology consultant 
        selected by the Administrator under subsection (b)(2)(B) for a 
        technology region.
            (3) Small business concern.--The term ``small business 
        concern'' has the meaning given such term in section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).
            (4) Technology region.--The term ``technology region'' 
        describes each of the following regions:
                    (A) Nassau and Suffolk Counties in New York.
                    (B) Santa Clara and Santa Cruz Counties in 
                California.
            (5) Technology-related small business concern.--The term 
        ``technology-related small business concern'' means any small 
        business concern primarily engaged in one or any combination of 
        the following:
                    (A) Developing, producing, assembling, or 
                manufacturing electronic components, computer hardware, 
                or computer software; or
                    (B) The biotechnology industry.