To amend the FREEDOM Support Act to establish a program to provide loans for joint ventures between United States small businesses and small businesses or entrepreneurs in the independent states of the former Soviet Union.

Summary: Amends the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992 to direct the Secretary of State to support the establishment by U.S. small businesses and independent state small businesses or entrepreneurs of joint ventures to engage in business activity in the independent states of the former Soviet Union.   Authorizes the Secretary to make loans for joint ventures. Establishes loan preference criteria, limitations, and repayment terms. 
Prohibits:  (1) loans to a joint venture if, as a result of the joint venture, a U.S. small business would transfer any business activity that it has been carrying out to a location outside the United States; and (2) goods produced pursuant to a joint venture that receives a loan from being imported into the United States. 
Provides for a contract with a private entity for the establishment of a data base to facilitate joint ventures between U.S. and independent state small businesses. 
Authorizes appropriations.

SECTION 1. SMALL BUSINESS JOINT VENTURE LOAN PROGRAM FOR THE FORMER 
              SOVIET UNION.

    (a) Establishment of Program.--The Freedom for Russia and Emerging 
Eurasian Democracies and Open Markets Support Act of 1992 is amended by 
adding at the end the following new title:

         ``TITLE XI--SMALL BUSINESS JOINT VENTURE LOAN PROGRAM

``SEC. 1101. PURPOSE.

    ``It is the purpose of this title to assist United States small 
businesses expand into markets in the independent states of the former 
Soviet Union, thereby developing those markets to the benefit of United 
States small businesses and the United States economy.

``SEC. 1102. ESTABLISHMENT OF SMALL BUSINESS JOINT VENTURE PROGRAM.

    ``(a) In General.--The Secretary of State shall carry out a program 
in accordance with this title to support the establishment by United 
States small businesses and Independent States small businesses or 
entrepreneurs of joint ventures to engage in business activity in the 
independent states of the former Soviet Union.
    ``(b) Examples of Business Areas.--Joint ventures supported under 
this title may include joint ventures in areas such as manufacturing, 
telecommunications, energy production, environmental protection, 
agriculture, housing, aviation, and defense conversion.

``SEC. 1103. LOANS TO JOINT VENTURES.

    ``(a) Authorization.--The Secretary is authorized to make loans in 
accordance with this section for joint ventures described in section 
1102(a).
    ``(b) Criteria.--The Secretary shall use the following criteria in 
determining which joint ventures receive a loan under this section:
            ``(1) Preference shall be given to joint ventures involving 
        United States small businesses located in economically 
        depressed communities.
            ``(2) Preference shall be given to loans that will be most 
        cost-effective.
            ``(3) Preference shall be given to joint ventures that have 
        the greatest likelihood of success. A loan may not be made to a 
        joint venture if the Secretary determines that the joint 
        venture is unlikely to be successful.
            ``(4) Preference shall be given to joint ventures that are 
        most likely to benefit the participating United States small 
        businesses and the United States economy.
            ``(5) Preference shall be given to joint ventures in 
        which--
                    ``(A) the participating United States small 
                business will provide the management, accounting, 
                marketing, training, and other business expertise 
                needed by the joint venture; and
                    ``(B) the participating Independent States small 
                business or entrepreneur will provide entrepreneurship, 
                the understanding of local needs and conditions, and 
                the local resources needed by the joint venture.
            ``(6) Preference shall be given to joint ventures that will 
        produce goods that are to be used, or services that are to be 
        provided, within the independent states of the former Soviet 
        Union.
    ``(c) Limitations on Amount of Loan.--A loan under this section may 
not exceed $100,000. Not more than one loan may be made for any single 
joint venture.
    ``(d) Term and Repayment of Loans.--The following shall apply with 
respect to any loan under this section:
            ``(1) The Secretary shall determine the term of the loan.
            ``(2) Payments of principal shall not be required during 
        the 1st 3 years of the loan.
            ``(3) Interest shall not accrue during the 1st 5 years of 
        the loan. Thereafter, the rate of interest shall be based on 
        the average of the Consumer Price Index (all items--United 
        States city average), published monthly by the Bureau of Labor 
        Statistics in the Department of Labor, for such period prior to 
        the due date for each interest payment as the Secretary may 
        determine.
    ``(e) Prohibition on Transfer of Jobs From the United States.--A 
loan may not be made to a joint venture under this section if, as a 
result of that joint venture, the United States small business 
participating in the joint venture would transfer any business 
operation or activity that it has been carrying out in the United 
States to any location outside the United States.
    ``(f) Prohibition on Imports to the United States.--
            ``(1) In general.--Goods produced pursuant to any joint 
        venture that receives a loan under this section may not be 
        imported into the United States, including as parts or 
        components of other goods.
            ``(2) Enforcement.--The Secretary and the Secretary of the 
        Treasury shall take appropriate steps to implement and enforce 
        paragraph (1). Such steps shall include a requirement that any 
        joint venture that receives a loan under this section and 
        produces any goods for export submit to the Secretary such 
        information as the Secretary may require regarding the foreign 
        recipient of any such goods that are to be exported, the 
        identifying characteristics of such goods, and the amount of 
        goods to be exported. The Secretary shall provide such lists to 
        the Commissioner of Customs.

``SEC. 1104. OTHER ACTIVITIES TO FACILITATE THE ESTABLISHMENT OF JOINT 
              VENTURES.

    ``(a) Database Contractor.--
            ``(1) In general.--In order to facilitate the establishment 
        of joint ventures that would be eligible to receive a loan 
        under section 1103(a), the Secretary shall enter into a 
        contract with an eligible private business entity (hereinafter 
        in this section referred to as the `contractor') for the 
        development and maintanence by the contractor of the database 
        described in subsection (b).
            ``(2) Selection of contractor.--The Secretary shall use 
        competitive procedures in selecting the contractor and shall 
        award the contract required by paragraph (1) within 60 days 
        after the date of enactment of this section.
            ``(3) Limitation on contract amount; budget act 
        requirements.--(A) Subject to subparagraphs (B) and (C), the 
        Secretary shall determine the amount of the contract awarded 
        pursuant to this subsection.
            ``(B) The contract awarded pursuant to this subsection may 
        not require the United States Government to make payments to 
        the contractor that in the aggregate exceed $3,000,000 for any 
        fiscal year.
            ``(C) The United States Government shall be obligated to 
        make outlays under the contract required by this subsection 
        only to the extent that the budget authority for such outlays 
        is provided in advance by appropriation Acts.
    ``(b) Database.--The database provided for in subsection (a) shall 
list--
            ``(1) United States small businesses that are interested in 
        participating in a joint venture that would be eligible to 
        receive a loan under section 1103(a); and
            ``(2) Independent States small businesses or entrepreneurs 
        that have submitted a proposal for the establishment of a joint 
        venture that would be eligible to receive a loan under section 
        1103(a).
The database shall include information regarding the types of business 
activity in which each such business is involved.
    ``(c) Submission and Distribution of Proposals for Joint 
Ventures.--
            ``(1) Submission to the secretary.--The Secretary shall 
        accept proposals for joint ventures submitted by Independent 
        States small businesses or entrepreneurs and shall forward them 
        to the contractor.
            ``(2) Distribution by the contractor.--The contractor shall 
        provide information about each such proposal to United States 
        small businesses listed in the database established pursuant to 
        subsection (a) that would be qualified to participate in the 
        proposed joint venture.
    ``(d) Review of Proposed Joint Ventures by the Contractor.--Each 
application for a loan under section 1103(a) shall be submitted to the 
contractor. The contractor--
            ``(1) shall determine whether the Independent States small 
        business or entrepreneur that would be participating in the 
        proposed joint venture has the resources it claims it will 
        contribute to the joint venture; and
            ``(2) shall make a recommendation to the Secretary with 
        respect to whether a loan should be made for the proposed joint 
        venture based on the criteria set forth in section 1103(b).
    ``(e) Publicizing Program.--
            ``(1) United states small businesses.--The Secretary shall 
        take appropriate steps to make United States small businesses 
        aware of the database established pursuant to subsection (a) 
        and the loan program established pursuant to section 1103. Such 
        steps shall include publication of information about the 
        database and the program in the Federal Register.
            ``(2) Independent states small businesses or 
        entrepreneurs.--The Secretary shall also take appropriate steps 
        to make Independent States small businesses or entrepreneurs 
        aware of the database and the loan program.

``SEC. 1105. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Loan Program.--There are authorized to be appropriated 
$100,000,000 to carry out section 1103, including for the cost (as 
defined in section 502 of the Federal Credit Reform Act of 1990) of 
loans.
    ``(b) Database Costs.--There are authorized to be appropriated 
$3,000,000 for each fiscal year for payments pursuant to the contract 
provided for in section 1104(a).

``SEC. 1106. DEFINITIONS.

    ``(a) Economically Depressed Community.--For purposes of this 
title, the term `economically depressed community' means a rural or 
urban community which, relative to other communities in the United 
States, is depressed in terms of age of housing, the extent of poverty, 
the growth rate of per capita income, the extent of unemployment, job 
lag, or the extent of surplus labor.
    ``(b) Eligible Private Business Entity.--For purposes of this 
title, the term `eligible private business entity' means a United 
States small business that--
            ``(1) has experience in business activity in at least one 
        independent state of the former Soviet Union; and
            ``(2) has its main business office within the metropolitian 
        Washington, D.C., area.
    ``(c) Independent States Small Business or Entrepreneur.--For 
purposes of this title, the term `Independent States small business or 
entrepreneur' means--
            ``(1) a small business that is organized under the laws of 
        an independent state of the former Soviet Union and that is 
        more than 50 percent owned by citizens of the independent 
        states (as determined under regulations of the Secretary); or
            ``(2) an entrepreneur who is a citizen of an independent 
        state and is a resident of an independent state.
    ``(d) Secretary.--For purposes of this title, the term `Secretary' 
means the Secretary of State.
    ``(e) Small Business.--For purposes of this title, the term `small 
business'--
            ``(1) in the case of United States small businesses, means 
        an organization that is a small business concern for purposes 
        of the Small Business Act; and
            ``(2) in the case of Independent States small businesses, 
        means an organization that is determined to be a small business 
        by the Secretary using criteria comparable to those used for 
        identifying small business concerns for purposes of the Small 
        Business Act.
    ``(f) United States Small Business.--For purposes of this title, 
the term `United States small business' means a small business--
            ``(1) that is organized under the laws of the United States 
        (including any State, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Commonwealth of the Northern 
        Mariana Islands, American Samoa, Guam, the Virgin Islands, or 
        any other territory or possession of the United States); and
            ``(2) that is more than 50 percent owned by United States 
        citizens (as determined under regulations of the Secretary).''.
    (b) Conforming Amendment.--The table of contents in section 2 of 
the Freedom for Russia and Emerging Eurasian Democracies and Open 
Markets Support Act of 1992 is amended by adding at the end the 
following:

         ``TITLE XI--SMALL BUSINESS JOINT VENTURE LOAN PROGRAM

``Sec. 1101. Purpose.
``Sec. 1102. Establishment of small business joint venture program.
``Sec. 1103. Loans to joint ventures.
``Sec. 1104. Other activities to facilitate the establishment of joint 
                            ventures.
``Sec. 1105. Authorization of appropriations.
``Sec. 1106. Definitions.''.