To amend the Small Business Act and the Small Business Investment Act of 1958 to authorize grants and other assistance to promote the redevelopment of certain remediated sites.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Brownfields Use Invigoration Land 
Development Act''.

SEC. 2. GRANT PROGRAM TO PROMOTE THE REDEVELOPMENT OF REMEDIATED SITES.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 36 as section 37; and
            (2) by inserting after section 35 the following new 
        section:

``SEC. 36. GRANT PROGRAM TO PROMOTE THE REDEVELOPMENT OF REMEDIATED 
              SITES.

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Remediated site.--The term `remediated site' means 
        any real property with respect to which requirements under 
        Federal or State law for remediation of hazardous substances, 
        pollutants, and contaminants have been completed.
            ``(2) Low-income geographic area.--The term ``low-income 
        geographic area'' means--
                    ``(A) any population census tract (or in the case 
                of an area that is not tracted for population census 
                tracts, the equivalent county division, as defined by 
                the Bureau of the Census of the Department of Commerce 
                for purposes of defining poverty areas), if--
                            ``(i) the poverty rate for that census 
                        tract is not less than 20 percent;
                            ``(ii) in the case of a tract--
                                    ``(I) that is located within a 
                                metropolitan area, 50 percent or more 
                                of the households in that census tract 
                                have an income equal to less than 60 
                                percent of the area median gross 
                                income; or
                                    ``(II) that is not located within a 
                                metropolitan area, the median household 
                                income for such tract does not exceed 
                                80 percent of the statewide median 
                                household income; or
                            ``(iii) as determined by the Administrator 
                        based on objective criteria, a substantial 
                        population of low-income individuals reside, an 
                        inadequate access to investment capital exists, 
                        or other indications of economic distress exist 
                        in that census tract; or
                    ``(B) any area located within--
                            ``(i) a HUBZone (as defined in section 3(p) 
                        of the Small Business Act and the implementing 
                        regulations issued under that section);
                            ``(ii) an urban empowerment zone or urban 
                        enterprise community (as designated by the 
                        Secretary of Housing and Urban Development); or
                            ``(iii) a rural empowerment zone or rural 
                        enterprise community (as designated by the 
                        Secretary of Agriculture).
    ``(b) Establishment.--In accordance with this section, the 
Administrator may make grants to eligible entities to enable such 
entities to participate in the redevelopment of remediated sites.
    ``(c) Eligibility.--Each of the following entities is eligible to 
receive assistance under this section:
            ``(1) A small business concern.
            ``(2) A locally based organization that represents small 
        business concerns.
            ``(3) A local redevelopment agency that is chartered, 
        established, or otherwise sanctioned by a State or by a local 
        government.
    ``(d) Use of Funds.--Assistance made available under this section 
may be used only--
            ``(1) for the development of plans for the reuse of a 
        remediated site; or
            ``(2) to perform marketing analyses with respect to a 
        remediated site.
    ``(e) Application.--An eligible entity seeking assistance made 
available under this section shall submit to the Administrator an 
application in such form as the Administrator may require.
    ``(f) Selection Criteria.--In selecting entities to receive 
assistance under this section, the Administrator shall consider each of 
the following:
            ``(1) The ability of the entity to develop plans for the 
        reuse of the remediated site and to perform marketing analyses 
        with respect to the remediated site.
            ``(2) The extent to which the redevelopment of the 
        remediated site proposed to be redeveloped by the entity would 
        create jobs and other social and economic benefits to the local 
        community and business opportunities for small business 
        concerns.
            ``(3) The extent to which the entity's use of assistance 
        will maximize the leveraging of private sector funds.
            ``(4) The extent to which the entity will use assistance to 
        redevelop a remediated site located in a low-income geographic 
        area.
    ``(g) Grant Amount.--Each grant award made under this section shall 
be of sufficient size to carry out the goals of this section, but shall 
not exceed $200,000.
    ``(h) Loss of Eligibility and Repayment.--If the Administrator 
determines that an entity receiving assistance made available under 
this section violates any condition placed on the receipt of such 
assistance, the Administrator--
            ``(1) may make no additional assistance available to such 
        entity under this section; and
            ``(2) may require the entity to repay, in whole or in part, 
        the assistance made available to the entity under this section.
    ``(i) Report to Administrator.--Not later than 2 years after 
receiving assistance made available under this section, each eligible 
entity receiving such assistance shall transmit to the Administrator a 
report describing how the assistance was used.
    ``(j) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        the sum of $4,000,000 for each of fiscal years 2003 through 
        2005.
            ``(2) Availability.--Funds appropriated under paragraph (1) 
        shall remain available until expended.''.

SEC. 3. INCREASED PARTICIPATION LEVEL FOR LOANS TO SMALL BUSINESSES 
              LOCATED ON REMEDIATED SITES.

    Clause (i) of section 7(a)(2)(A) of the Small Business Act (15 
U.S.C. 636(a)(2)(A)) shall be applied by substituting ``90 percent'' 
for ``75 percent'' and clause (ii) of such section shall be applied by 
substituting ``90 percent'' for ``85 percent'' in the case of any loan 
made--
            (1) to a small business concern located or locating on a 
        remediated site (as such term is defined in section 36(a)(1) of 
        the Small Business Act (as amended by this Act)) with respect 
        to which a grant has been made under such section; and
            (2) during the 5-year period beginning on the date that 
        such grant is made.

SEC. 4. FUNDING FROM DEVELOPMENT COMPANIES TO REDEVELOP REMEDIATED 
              SITES.

    Section 501(d)(3) of the Small Business Investment Act of 1958 (15 
U.S.C. 695(d)(3)) is amended--
            (1) in subparagraph (G), by striking ``or'';
            (2) in subparagraph (H), by striking the period and 
        inserting ``, or''; and
            (3) by inserting after subparagraph (H) the following new 
        subparagraph:
                    ``(I) redevelopment of remediated sites (as defined 
                in section 36(a)(1) of the Small Business Act).''.

SEC. 5. EXEMPTION FROM OUTSTANDING LEVERAGE LIMITS FOR SBIC INVESTMENTS 
              IN REMEDIATED SITES.

    Paragraphs (2)(C) and (4)(D) of section 303(b) of the Small 
Business Investment Act of 1958 (15 U.S.C. 683(b)) are amended by--
            (1) inserting ``or on a remediated site (as defined in 
        section 36(a)(1) of the Small Business Act)'' after ``located 
        in a low-income geographic area (as defined in section 351)''; 
        and
            (2) by striking ``low-income'' in the headings of such 
        paragraphs and inserting ``certain''.

Summary: Brownfields Use Invigoration Land Development Act - Amends the Small Business Act to authorize the Administrator of the Small Business Administration (SBA) to make grants to a small business, a local organization that represents small businesses, or a local redevelopment agency chartered, established, or otherwise sanctioned by a State or local government to participate in the redevelopment of remediated sites . Sets a maximum per-grant limit of $200,000. Increases to 90 percent of the amount of the outstanding financing the level of SBA participation in guaranteed loans made to small businesses on a deferred basis for small businesses located or locating on a remedial site. Amends the Small Business Investment Act of 1958 to: (1) authorize the SBA to provide assistance to State development companies for projects for the redevelopment of remediated sites. And (2) exempt from current outstanding leverage limits small business investment company investments in remediated sites.