IV

106TH CONGRESS

2D SESSION H. RES. 590

Providing for the concurrence by the House with an amendment in the

amendment of the Senate to H.R. 2392.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 25, 2000

Mr. TALENT submitted the following resolution; which was considered and

agreed to

RESOLUTION

Providing for the concurrence by the House with an

amendment in the amendment of the Senate to H.R. 2392.

1 Resolved, That upon the adoption of this resolution

2 the House shall be considered to have taken from the

3 Speaker’s table the bill H.R. 2392, with the amendment

4 of the Senate thereto, and to have concurred in the

5 amendment of the Senate with an amendment as follows:

6 In lieu of the matter proposed to be inserted by the

7 amendment of the Senate, insert the following:

8 SECTION 1. TABLE OF CONTENTS.

9 The table of contents for this Act is as follows:

Sec. 1. Table of contents.
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TITLE I—SMALL BUSINESS INNOVATION RESEARCH PROGRAM

Sec. 101. Short title.

Sec. 102. Findings.

Sec. 103. Extension of SBIR program.

Sec. 104. Annual report.

Sec. 105. Third phase assistance.

Sec. 106. Report on programs for annual performance plan.

Sec. 107. Output and outcome data.

Sec. 108. National Research Council reports.

Sec. 109. Federal agency expenditures for the SBIR program.

Sec. 110. Policy directive modifications.

Sec. 111. Federal and State technology partnership program.

Sec. 112. Mentoring networks.

Sec. 113. Simplified reporting requirements.

Sec. 114. Rural outreach program extension.

TITLE II—GENERAL BUSINESS LOAN PROGRAM

Sec. 201. Short title.

Sec. 202. Levels of participation.

Sec. 203. Loan amounts.

Sec. 204. Interest on defaulted loans.

Sec. 205. Prepayment of loans.

Sec. 206. Guarantee fees.

Sec. 207. Lease terms.

TITLE III—CERTIFIED DEVELOPMENT COMPANY PROGRAM

Sec. 301. Short title.

Sec. 302. Women-owned businesses.

Sec. 303. Maximum debenture size.

Sec. 304. Fees.

Sec. 305. Premier certified lenders program.

Sec. 306. Sale of certain defaulted loans.

Sec. 307. Loan liquidation.

TITLE IV—CORRECTIONS TO THE SMALL BUSINESS INVESTMENT

ACT OF 1958

Sec. 401. Short title.

Sec. 402. Definitions.

Sec. 403. Investment in small business investment companies.

Sec. 404. Subsidy fees.

Sec. 405. Distributions.

Sec. 406. Conforming amendment.

TITLE V—REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

Sec. 501. Short title.

Sec. 502. Reauthorization of small business programs.

Sec. 503. Additional reauthorizations.

TITLE VI—MISCELLANEOUS PROVISIONS

Sec. 601. Loan application processing.

Sec. 602. Application of ownership requirements.

Sec. 603. Eligibility for HUBZone program.
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Sec. 604. Subcontracting preference for veterans.

Sec. 605. Small business development center program funding.

Sec. 606. Surety bonds.

1 TITLE I—SMALL BUSINESS INNO2 VATION RESEARCH PROGRAM

3 SECTION 101. SHORT TITLE.

4 (a) SHORT TITLE.—This title may be cited as the

5 ‘‘Small Business Innovation Research Program Reauthor6 ization Act of 2000’’.

7 SEC. 102. FINDINGS.

8 Congress finds that—

9 (1) the small business innovation research pro10 gram established under the Small Business Innova11 tion Development Act of 1982, and reauthorized by

12 the Small Business Research and Development En13 hancement Act of 1992 (in this Act referred to as

14 the ‘‘SBIR program’’) is highly successful in involv15 ing small businesses in federally funded research

16 and development;

17 (2) the SBIR program made the cost-effective

18 and unique research and development capabilities

19 possessed by the small businesses of the Nation

20 available to Federal agencies and departments;

21 (3) the innovative goods and services developed

22 by small businesses that participated in the SBIR

23 program have produced innovations of critical impor-
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1 tance in a wide variety of high-technology fields, in2 cluding biology, medicine, education, and defense;

3 (4) the SBIR program is a catalyst in the pro4 motion of research and development, the commer5 cialization of innovative technology, the development

6 of new products and services, and the continued ex7 cellence of this Nation’s high-technology industries;

8 and

9 (5) the continuation of the SBIR program will

10 provide expanded opportunities for one of the Na11 tion’s vital resources, its small businesses, will foster

12 invention, research, and technology, will create jobs,

13 and will increase this Nation’s competitiveness in

14 international markets.

15 SEC. 103. EXTENSION OF SBIR PROGRAM.

16 Section 9(m) of the Small Business Act (15 U.S.C.

17 638(m)) is amended to read as follows:

18 ‘‘(m) TERMINATION.—The authorization to carry out

19 the Small Business Innovation Research Program estab20 lished under this section shall terminate on September 30,

21 2008.’’.

22 SEC. 104. ANNUAL REPORT.

23 Section 9(b)(7) of the Small Business Act (15 U.S.C.

24 638(b)(7)) is amended by striking ‘‘and the Committee on

25 Small Business of the House of Representatives’’ and in-
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1 serting ‘‘, and to the Committee on Science and the Com2 mittee on Small Business of the House of Representa3 tives,’’.

4 SEC. 105. THIRD PHASE ASSISTANCE.

5 Section 9(e)(4)(C)(i) of the Small Business Act (15

6 U.S.C. 638(e)(4)(C)(i)) is amended by striking ‘‘; and’’

7 and inserting ‘‘; or’’.

8 SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORM9 ANCE PLAN.

10 Section 9(g) of the Small Business Act (15 U.S.C.

11 638(g)) is amended—

12 (1) in paragraph (7), by striking ‘‘and’’ at the

13 end;

14 (2) in paragraph (8), by striking the period at

15 the end and inserting a semicolon; and

16 (3) by adding at the end the following new

17 paragraph:

18 ‘‘(9) include, as part of its annual performance

19 plan as required by subsections (a) and (b) of sec20 tion 1115 of title 31, United States Code, a section

21 on its SBIR program, and shall submit such section

22 to the Committee on Small Business of the Senate,

23 and the Committee on Science and the Committee

24 on Small Business of the House of Representatives;

25 and’’.
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1 SEC. 107. OUTPUT AND OUTCOME DATA.

2 (a) COLLECTION.—Section 9(g) of the Small Busi3 ness Act (15 U.S.C. 638(g)), as amended by section 106

4 of this Act, is further amended by adding at the end the

5 following new paragraph:

6 ‘‘(10) collect, and maintain in a common format

7 in accordance with subsection (v), such information

8 from awardees as is necessary to assess the SBIR

9 program, including information necessary to main10 tain the database described in subsection (k).’’.

11 (b) REPORT TO CONGRESS.—Section 9(b)(7) of the

12 Small Business Act (15 U.S.C. 638(b)(7)), as amended

13 by section 104 of this Act, is further amended by inserting

14 before the period at the end ‘‘, including the data on out15 put and outcomes collected pursuant to subsections

16 (g)(10) and (o)(9), and a description of the extent to

17 which Federal agencies are providing in a timely manner

18 information needed to maintain the database described in

19 subsection (k)’’.

20 (c) DATABASE.—Section 9(k) of the Small Business

21 Act (15 U.S.C. 638(k)) is amended to read as follows:

22 ‘‘(k) DATABASE.—

23 ‘‘(1) PUBLIC DATABASE.—Not later than 180

24 days after the date of enactment of the Small Busi25 ness Innovation Research Program Reauthorization

26 Act of 2000, the Administrator shall develop, main-
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1 tain, and make available to the public a searchable,

2 up-to-date, electronic database that includes—

3 ‘‘(A) the name, size, location, and an iden4 tifying number assigned by the Administrator,

5 of each small business concern that has received

6 a first phase or second phase SBIR award from

7 a Federal agency;

8 ‘‘(B) a description of each first phase or

9 second phase SBIR award received by that

10 small business concern, including—

11 ‘‘(i) an abstract of the project funded

12 by the award, excluding any proprietary in13 formation so identified by the small busi14 ness concern;

15 ‘‘(ii) the Federal agency making the

16 award; and

17 ‘‘(iii) the date and amount of the

18 award;

19 ‘‘(C) an identification of any business con20 cern or subsidiary established for the commer21 cial application of a product or service for

22 which an SBIR award is made; and

23 ‘‘(D) information regarding mentors and

24 Mentoring Networks, as required by section

25 35(d).
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1 ‘‘(2) GOVERNMENT DATABASE.—Not later than

2 180 days after the date of enactment of the Small

3 Business Innovation Research Program Reauthoriza4 tion Act of 2000, the Administrator, in consultation

5 with Federal agencies required to have an SBIR

6 program pursuant to subsection (f)(1), shall develop

7 and maintain a database to be used solely for SBIR

8 program evaluation that—

9 ‘‘(A) contains for each second phase award

10 made by a Federal agency—

11 ‘‘(i) information collected in accord12 ance with paragraph (3) on revenue from

13 the sale of new products or services result14 ing from the research conducted under the

15 award;

16 ‘‘(ii) information collected in accord17 ance with paragraph (3) on additional in18 vestment from any source, other than first

19 phase or second phase SBIR or STTR

20 awards, to further the research and devel21 opment conducted under the award; and

22 ‘‘(iii) any other information received

23 in connection with the award that the Ad24 ministrator, in conjunction with the SBIR
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1 program managers of Federal agencies,

2 considers relevant and appropriate;

3 ‘‘(B) includes any narrative information

4 that a small business concern receiving a second

5 phase award voluntarily submits to further de6 scribe the outputs and outcomes of its awards;

7 ‘‘(C) includes for each applicant for a first

8 phase or second phase award that does not re9 ceive such an award—

10 ‘‘(i) the name, size, and location, and

11 an identifying number assigned by the Ad12 ministration;

13 ‘‘(ii) an abstract of the project; and

14 ‘‘(iii) the Federal agency to which the

15 application was made;

16 ‘‘(D) includes any other data collected by

17 or available to any Federal agency that such

18 agency considers may be useful for SBIR pro19 gram evaluation; and

20 ‘‘(E) is available for use solely for program

21 evaluation purposes by the Federal Government

22 or, in accordance with policy directives issued

23 by the Administration, by other authorized per24 sons who are subject to a use and nondisclosure
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1 agreement with the Federal Government cov2 ering the use of the database.

3 ‘‘(3) UPDATING INFORMATION FOR DATA4 BASE.—

5 ‘‘(A) IN GENERAL.—A small business con6 cern applying for a second phase award under

7 this section shall be required to update informa8 tion in the database established under this sub9 section for any prior second phase award re10 ceived by that small business concern. In com11 plying with this paragraph, a small business

12 concern may apportion sales or additional in13 vestment information relating to more than one

14 second phase award among those awards, if it

15 notes the apportionment for each award.

16 ‘‘(B) ANNUAL UPDATES UPON TERMI17 NATION.—A small business concern receiving a

18 second phase award under this section shall—

19 ‘‘(i) update information in the data20 base concerning that award at the termi21 nation of the award period; and

22 ‘‘(ii) be requested to voluntarily up23 date such information annually thereafter

24 for a period of 5 years.
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1 ‘‘(4) PROTECTION OF INFORMATION.—Informa2 tion provided under paragraph (2) shall be consid3 ered privileged and confidential and not subject to

4 disclosure pursuant to section 552 of title 5, United

5 States Code.

6 ‘‘(5) RULE OF CONSTRUCTION.—Inclusion of

7 information in the database under this subsection

8 shall not be considered to be publication for pur9 poses of subsection (a) or (b) of section 102 of title

10 35, United States Code.’’.

11 SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.

12 (a) STUDY AND RECOMMENDATIONS.—The head of

13 each agency with a budget of more than $50,000,000 for

14 its SBIR program for fiscal year 1999, in consultation

15 with the Small Business Administration, shall, not later

16 than 6 months after the date of enactment of this Act,

17 cooperatively enter into an agreement with the National

18 Academy of Sciences for the National Research Council

19 to—

20 (1) conduct a comprehensive study of how the

21 SBIR program has stimulated technological innova22 tion and used small businesses to meet Federal re23 search and development needs, including—

24 (A) a review of the value to the Federal re25 search agencies of the research projects being
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1 conducted under the SBIR program, and of the

2 quality of research being conducted by small

3 businesses participating under the program, in4 cluding a comparison of the value of projects

5 conducted under the SBIR program to those

6 funded by other Federal research and develop7 ment expenditures;

8 (B) to the extent practicable, an evaluation

9 of the economic benefits achieved by the SBIR

10 program, including the economic rate of return,

11 and a comparison of the economic benefits, in12 cluding the economic rate of return, achieved by

13 the SBIR program with the economic benefits,

14 including the economic rate of return, of other

15 Federal research and development expenditures;

16 (C) an evaluation of the noneconomic bene17 fits achieved by the SBIR program over the life

18 of the program;

19 (D) a comparison of the allocation for fis20 cal year 2000 of Federal research and develop21 ment funds to small businesses with such allo22 cation for fiscal year 1983, and an analysis of

23 the factors that have contributed to such alloca24 tion; and
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1 (E) an analysis of whether Federal agen2 cies, in fulfilling their procurement needs, are

3 making sufficient effort to use small businesses

4 that have completed a second phase award

5 under the SBIR program; and

6 (2) make recommendations with respect to—

7 (A) measures of outcomes for strategic

8 plans submitted under section 306 of title 5,

9 United States Code, and performance plans

10 submitted under section 1115 of title 31,

11 United States Code, of each Federal agency

12 participating in the SBIR program;

13 (B) whether companies who can dem14 onstrate project feasibility, but who have not re15 ceived a first phase award, should be eligible for

16 second phase awards, and the potential impact

17 of such awards on the competitive selection

18 process of the program;

19 (C) whether the Federal Government

20 should be permitted to recoup some or all of its

21 expenses if a controlling interest in a company

22 receiving an SBIR award is sold to a foreign

23 company or to a company that is not a small

24 business concern;
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1 (D) how to increase the use by the Federal

2 Government in its programs and procurements

3 of technology-oriented small businesses; and

4 (E) improvements to the SBIR program, if

5 any are considered appropriate.

6 (b) PARTICIPATION BY SMALL BUSINESS.—

7 (1) IN GENERAL.—In a manner consistent with

8 law and with National Research Council study

9 guidelines and procedures, knowledgeable individuals

10 from the small business community with experience

11 in the SBIR program shall be included—

12 (A) in any panel established by the Na13 tional Research Council for the purpose of per14 forming the study conducted under this section;

15 and

16 (B) among those who are asked by the Na17 tional Research Council to peer review the

18 study.

19 (2) CONSULTATION.—To ensure that the con20 cerns of small business are appropriately considered

21 under this subsection, the National Research Council

22 shall consult with and consider the views of the Of23 fice of Technology and the Office of Advocacy of the

24 Small Business Administration and other interested

25 parties, including entities, organizations, and indi-
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1 viduals actively engaged in enhancing or developing

2 the technological capabilities of small business con3 cerns.

4 (c) PROGRESS REPORTS.—The National Research

5 Council shall provide semiannual progress reports on the

6 study conducted under this section to the Committee on

7 Science and the Committee on Small Business of the

8 House of Representatives, and to the Committee on Small

9 Business of the Senate.

10 (d) REPORT.—The National Research Council shall

11 transmit to the heads of agencies entering into an agree12 ment under this section and to the Committee on Science

13 and the Committee on Small Business of the House of

14 Representatives, and to the Committee on Small Business

15 of the Senate—

16 (1) not later than 3 years after the date of en17 actment of this Act, a report including the results of

18 the study conducted under subsection (a)(1) and rec19 ommendations made under subsection (a)(2); and

20 (2) not later than 6 years after that date of en21 actment, an update of such report.

22 SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR

23 PROGRAM.

24 Section 9(i) of the Small Business Act (15 U.S.C.

25 638(i)) is amended—
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1 (1) by striking ‘‘(i) Each Federal’’ and insert2 ing the following:

3 ‘‘(i) ANNUAL REPORTING.—

4 ‘‘(1) IN GENERAL.—Each Federal’’; and

5 (2) by adding at the end the following:

6 ‘‘(2) CALCULATION OF EXTRAMURAL BUDG7 ET.—

8 ‘‘(A) METHODOLOGY.—Not later than 4

9 months after the date of enactment of each ap10 propriations Act for a Federal agency required

11 by this section to have an SBIR program, the

12 Federal agency shall submit to the Adminis13 trator a report, which shall include a descrip14 tion of the methodology used for calculating the

15 amount of the extramural budget of that Fed16 eral agency.

17 ‘‘(B) ADMINISTRATOR’S ANALYSIS.—The

18 Administrator shall include an analysis of the

19 methodology received from each Federal agency

20 referred to in subparagraph (A) in the report

21 required by subsection (b)(7).’’.

22 SEC. 110. POLICY DIRECTIVE MODIFICATIONS.

23 Section 9(j) of the Small Business Act (15 U.S.C.

24 638(j)) is amended by adding at the end the following:
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1 ‘‘(3) ADDITIONAL MODIFICATIONS.—Not later

2 than 120 days after the date of enactment of the

3 Small Business Innovation Research Program Reau4 thorization Act of 2000, the Administrator shall

5 modify the policy directives issued pursuant to this

6 subsection—

7 ‘‘(A) to clarify that the rights provided for

8 under paragraph (2)(A) apply to all Federal

9 funding awards under this section, including

10 the first phase (as described in subsection

11 (e)(4)(A)), the second phase (as described in

12 subsection (e)(4)(B)), and the third phase (as

13 described in subsection (e)(4)(C));

14 ‘‘(B) to provide for the requirement of a

15 succinct commercialization plan with each appli16 cation for a second phase award that is moving

17 toward commercialization;

18 ‘‘(C) to require agencies to report to the

19 Administration, not less frequently than annu20 ally, all instances in which an agency pursued

21 research, development, or production of a tech22 nology developed by a small business concern

23 using an award made under the SBIR program

24 of that agency, and determined that it was not

25 practicable to enter into a follow-on non-SBIR
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1 program funding agreement with the small

2 business concern, which report shall include, at

3 a minimum—

4 ‘‘(i) the reasons why the follow-on

5 funding agreement with the small business

6 concern was not practicable;

7 ‘‘(ii) the identity of the entity with

8 which the agency contracted to perform

9 the research, development, or production;

10 and

11 ‘‘(iii) a description of the type of

12 funding agreement under which the re13 search, development, or production was ob14 tained; and

15 ‘‘(D) to implement subsection (v), includ16 ing establishing standardized procedures for the

17 provision of information pursuant to subsection

18 (k)(3).’’.

19 SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNER20 SHIP PROGRAM.

21 (a) FINDINGS.—Congress finds that—

22 (1) programs to foster economic development

23 among small high-technology firms vary widely

24 among the States;
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1 (2) States that do not aggressively support the

2 development of small high-technology firms, includ3 ing participation by small business concerns in the

4 SBIR program, are at a competitive disadvantage in

5 establishing a business climate that is conducive to

6 technology development; and

7 (3) building stronger national, State, and local

8 support for science and technology research in these

9 disadvantaged States will expand economic opportu10 nities in the United States, create jobs, and increase

11 the competitiveness of the United States in the

12 world market.

13 (b) FEDERAL AND STATE TECHNOLOGY PARTNER14 SHIP PROGRAM.—The Small Business Act (15 U.S.C. 631

15 et seq.) is amended—

16 (1) by redesignating section 34 as section 36;

17 and

18 (2) by inserting after section 33 the following

19 new section:

20 ‘‘SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNER21 SHIP PROGRAM.

22 ‘‘(a) DEFINITIONS.—In this section and section 35,

23 the following definitions apply:

24 ‘‘(1) APPLICANT.—The term ‘applicant’ means

25 an entity, organization, or individual that submits a
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1 proposal for an award or a cooperative agreement

2 under this section.

3 ‘‘(2) BUSINESS ADVICE AND COUNSELING.—

4 The term ‘business advice and counseling’ means

5 providing advice and assistance on matters described

6 in section 35(c)(2)(B) to small business concerns to

7 guide them through the SBIR and STTR program

8 process, from application to award and successful

9 completion of each phase of the program.

10 ‘‘(3) FAST PROGRAM.—The term ‘FAST pro11 gram’ means the Federal and State Technology

12 Partnership Program established under this section.

13 ‘‘(4) MENTOR.—The term ‘mentor’ means an

14 individual described in section 35(c)(2).

15 ‘‘(5) MENTORING NETWORK.—The term ‘Men16 toring Network’ means an association, organization,

17 coalition, or other entity (including an individual)

18 that meets the requirements of section 35(c).

19 ‘‘(6) RECIPIENT.—The term ‘recipient’ means a

20 person that receives an award or becomes party to

21 a cooperative agreement under this section.

22 ‘‘(7) SBIR PROGRAM.—The term ‘SBIR pro23 gram’ has the same meaning as in section 9(e)(4).

24 ‘‘(8) STATE.—The term ‘State’ means each of

25 the several States, the District of Columbia, the
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1 Commonwealth of Puerto Rico, the Virgin Islands,

2 Guam, and American Samoa.

3 ‘‘(9) STTR PROGRAM.—The term ‘STTR pro4 gram’ has the same meaning as in section 9(e)(6).

5 ‘‘(b) ESTABLISHMENT OF PROGRAM.—The Adminis6 trator shall establish a program to be known as the Fed7 eral and State Technology Partnership Program, the pur8 pose of which shall be to strengthen the technological com9 petitiveness of small business concerns in the States.

10 ‘‘(c) GRANTS AND COOPERATIVE AGREEMENTS.—

11 ‘‘(1) JOINT REVIEW.—In carrying out the

12 FAST program under this section, the Adminis13 trator and the SBIR program managers at the Na14 tional Science Foundation and the Department of

15 Defense shall jointly review proposals submitted by

16 applicants and may make awards or enter into coop17 erative agreements under this section based on the

18 factors for consideration set forth in paragraph (2),

19 in order to enhance or develop in a State—

20 ‘‘(A) technology research and development

21 by small business concerns;

22 ‘‘(B) technology transfer from university

23 research to technology-based small business

24 concerns;
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1 ‘‘(C) technology deployment and diffusion

2 benefiting small business concerns;

3 ‘‘(D) the technological capabilities of small

4 business concerns through the establishment or

5 operation of consortia comprised of entities, or6 ganizations, or individuals, including—

7 ‘‘(i) State and local development agen8 cies and entities;

9 ‘‘(ii) representatives of technology10 based small business concerns;

11 ‘‘(iii) industries and emerging compa12 nies;

13 ‘‘(iv) universities; and

14 ‘‘(v) small business development cen15 ters; and

16 ‘‘(E) outreach, financial support, and tech17 nical assistance to technology-based small busi18 ness concerns participating in or interested in

19 participating in an SBIR program, including

20 initiatives—

21 ‘‘(i) to make grants or loans to com22 panies to pay a portion or all of the cost

23 of developing SBIR proposals;

24 ‘‘(ii) to establish or operate a Men25 toring Network within the FAST program
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1 to provide business advice and counseling

2 that will assist small business concerns

3 that have been identified by FAST pro4 gram participants, program managers of

5 participating SBIR agencies, the Adminis6 tration, or other entities that are knowl7 edgeable about the SBIR and STTR pro8 grams as good candidates for the SBIR

9 and STTR programs, and that would ben10 efit from mentoring, in accordance with

11 section 35;

12 ‘‘(iii) to create or participate in a

13 training program for individuals providing

14 SBIR outreach and assistance at the State

15 and local levels; and

16 ‘‘(iv) to encourage the commercializa17 tion of technology developed through SBIR

18 program funding.

19 ‘‘(2) SELECTION CONSIDERATIONS.—In making

20 awards or entering into cooperative agreements

21 under this section, the Administrator and the SBIR

22 program managers referred to in paragraph (1)—

23 ‘‘(A) may only consider proposals by appli24 cants that intend to use a portion of the Fed25 eral assistance provided under this section to
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1 provide outreach, financial support, or technical

2 assistance to technology-based small business

3 concerns participating in or interested in par4 ticipating in the SBIR program; and

5 ‘‘(B) shall consider, at a minimum—

6 ‘‘(i) whether the applicant has dem7 onstrated that the assistance to be pro8 vided would address unmet needs of small

9 business concerns in the community, and

10 whether it is important to use Federal

11 funding for the proposed activities;

12 ‘‘(ii) whether the applicant has dem13 onstrated that a need exists to increase the

14 number or success of small high-technology

15 businesses in the State, as measured by

16 the number of first phase and second

17 phase SBIR awards that have historically

18 been received by small business concerns in

19 the State;

20 ‘‘(iii) whether the projected costs of

21 the proposed activities are reasonable;

22 ‘‘(iv) whether the proposal integrates

23 and coordinates the proposed activities

24 with other State and local programs assist-
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1 ing small high-technology firms in the

2 State; and

3 ‘‘(v) the manner in which the appli4 cant will measure the results of the activi5 ties to be conducted.

6 ‘‘(3) PROPOSAL LIMIT.—Not more than 1 pro7 posal may be submitted for inclusion in the FAST

8 program under this section to provide services in any

9 one State in any 1 fiscal year.

10 ‘‘(4) PROCESS.—Proposals and applications for

11 assistance under this section shall be in such form

12 and subject to such procedures as the Administrator

13 shall establish.

14 ‘‘(d) COOPERATION AND COORDINATION.—In car15 rying out the FAST program under this section, the Ad16 ministrator shall cooperate and coordinate with—

17 ‘‘(1) Federal agencies required by section 9 to

18 have an SBIR program; and

19 ‘‘(2) entities, organizations, and individuals ac20 tively engaged in enhancing or developing the tech21 nological capabilities of small business concerns,

22 including—

23 ‘‘(A) State and local development agencies

24 and entities;
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1 ‘‘(B) State committees established under

2 the Experimental Program to Stimulate Com3 petitive Research of the National Science Foun4 dation (as established under section 113 of the

5 National Science Foundation Authorization Act

6 of 1988 (42 U.S.C. 1862g));

7 ‘‘(C) State science and technology councils;

8 and

9 ‘‘(D) representatives of technology-based

10 small business concerns.

11 ‘‘(e) ADMINISTRATIVE REQUIREMENTS.—

12 ‘‘(1) COMPETITIVE BASIS.—Awards and cooper13 ative agreements under this section shall be made or

14 entered into, as applicable, on a competitive basis.

15 ‘‘(2) MATCHING REQUIREMENTS.—

16 ‘‘(A) IN GENERAL.—The non-Federal

17 share of the cost of an activity (other than a

18 planning activity) carried out using an award or

19 under a cooperative agreement under this sec20 tion shall be—

21 ‘‘(i) 50 cents for each Federal dollar,

22 in the case of a recipient that will serve

23 small business concerns located in one of

24 the 18 States receiving the fewest SBIR
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1 first phase awards (as described in section

2 9(e)(4)(A));

3 ‘‘(ii) except as provided in subpara4 graph (B), 1 dollar for each Federal dollar,

5 in the case of a recipient that will serve

6 small business concerns located in one of

7 the 16 States receiving the greatest num8 ber of such SBIR first phase awards; and

9 ‘‘(iii) except as provided in subpara10 graph (B), 75 cents for each Federal dol11 lar, in the case of a recipient that will

12 serve small business concerns located in a

13 State that is not described in clause (i) or

14 (ii) that is receiving such SBIR first phase

15 awards.

16 ‘‘(B) LOW-INCOME AREAS.—The non-Fed17 eral share of the cost of the activity carried out

18 using an award or under a cooperative agree19 ment under this section shall be 50 cents for

20 each Federal dollar that will be directly allo21 cated by a recipient described in subparagraph

22 (A) to serve small business concerns located in

23 a qualified census tract, as that term is defined

24 in section 42(d)(5)(C)(ii) of the Internal Rev25 enue Code of 1986. Federal dollars not so allo-
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1 cated by that recipient shall be subject to the

2 matching requirements of subparagraph (A).

3 ‘‘(C) TYPES OF FUNDING.—The non-Fed4 eral share of the cost of an activity carried out

5 by a recipient shall be comprised of not less

6 than 50 percent cash and not more than 50

7 percent of indirect costs and in-kind contribu8 tions, except that no such costs or contributions

9 may be derived from funds from any other Fed10 eral program.

11 ‘‘(D) RANKINGS.—For purposes of sub12 paragraph (A), the Administrator shall reevalu13 ate the ranking of a State once every 2 fiscal

14 years, beginning with fiscal year 2001, based on

15 the most recent statistics compiled by the Ad16 ministrator.

17 ‘‘(3) DURATION.—Awards may be made or co18 operative agreements entered into under this section

19 for multiple years, not to exceed 5 years in total.

20 ‘‘(f) REPORTS.—

21 ‘‘(1) INITIAL REPORT.—Not later than 120

22 days after the date of enactment of the Small Busi23 ness Innovation Research Program Reauthorization

24 Act of 2000, the Administrator shall prepare and

25 submit to the Committee on Small Business of the
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1 Senate and the Committee on Science and the Com2 mittee on Small Business of the House of Rep3 resentatives a report, which shall include, with re4 spect to the FAST program, including Mentoring

5 Networks—

6 ‘‘(A) a description of the structure and

7 procedures of the program;

8 ‘‘(B) a management plan for the program;

9 and

10 ‘‘(C) a description of the merit-based re11 view process to be used in the program.

12 ‘‘(2) ANNUAL REPORTS.—The Administrator

13 shall submit an annual report to the Committee on

14 Small Business of the Senate and the Committee on

15 Science and the Committee on Small Business of the

16 House of Representatives regarding—st

17 ‘‘(A) the number and amount of awards

18 provided and cooperative agreements entered

19 into under the FAST program during the pre20 ceding year;

21 ‘‘(B) a list of recipients under this section,

22 including their location and the activities being

23 performed with the awards made or under the

24 cooperative agreements entered into; and
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1 ‘‘(C) the Mentoring Networks and the

2 mentoring database, as provided for under sec3 tion 35, including—

4 ‘‘(i) the status of the inclusion of

5 mentoring information in the database re6 quired by section 9(k); and

7 ‘‘(ii) the status of the implementation

8 and description of the usage of the Men9 toring Networks.

10 ‘‘(g) REVIEWS BY INSPECTOR GENERAL.—

11 ‘‘(1) IN GENERAL.—The Inspector General of

12 the Administration shall conduct a review of—

13 ‘‘(A) the extent to which recipients under

14 the FAST program are measuring the perform15 ance of the activities being conducted and the

16 results of such measurements; and

17 ‘‘(B) the overall management and effective18 ness of the FAST program.

19 ‘‘(2) REPORT.—During the first quarter of fis20 cal year 2004, the Inspector General of the Adminis21 tration shall submit a report to the Committee on

22 Small Business of the Senate and the Committee on

23 Science and the Committee on Small Business of the

24 House of Representatives on the review conducted

25 under paragraph (1).
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1 ‘‘(h) PROGRAM LEVELS.—

2 ‘‘(1) IN GENERAL.—There is authorized to be

3 appropriated to carry out the FAST program, in4 cluding Mentoring Networks, under this section and

5 section 35, $10,000,000 for each of fiscal years

6 2001 through 2005.

7 ‘‘(2) MENTORING DATABASE.—Of the total

8 amount made available under paragraph (1) for fis9 cal years 2001 through 2005, a reasonable amount,

10 not to exceed a total of $500,000, may be used by

11 the Administration to carry out section 35(d).

12 ‘‘(i) TERMINATION.—The authority to carry out the

13 FAST program under this section shall terminate on Sep14 tember 30, 2005.’’.

15 (c) COORDINATION OF TECHNOLOGY DEVELOPMENT

16 PROGRAMS.—Section 9 of the Small Business Act (15

17 U.S.C. 638) is amended by adding at the end the fol18 lowing:

19 ‘‘(u) COORDINATION OF TECHNOLOGY DEVELOP20 MENT PROGRAMS.—

21 ‘‘(1) DEFINITION OF TECHNOLOGY DEVELOP22 MENT PROGRAM.—In this subsection, the term ‘tech23 nology development program’ means—

24 ‘‘(A) the Experimental Program to Stimu25 late Competitive Research of the National
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1 Science Foundation, as established under sec2 tion 113 of the National Science Foundation

3 Authorization Act of 1988 (42 U.S.C. 1862g);

4 ‘‘(B) the Defense Experimental Program

5 to Stimulate Competitive Research of the De6 partment of Defense;

7 ‘‘(C) the Experimental Program to Stimu8 late Competitive Research of the Department of

9 Energy;

10 ‘‘(D) the Experimental Program to Stimu11 late Competitive Research of the Environmental

12 Protection Agency;

13 ‘‘(E) the Experimental Program to Stimu14 late Competitive Research of the National Aero15 nautics and Space Administration;

16 ‘‘(F) the Institutional Development Award

17 Program of the National Institutes of Health;

18 and

19 ‘‘(G) the National Research Initiative

20 Competitive Grants Program of the Department

21 of Agriculture.

22 ‘‘(2) COORDINATION REQUIREMENTS.—Each

23 Federal agency that is subject to subsection (f) and

24 that has established a technology development pro-
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1 gram may, in each fiscal year, review for funding

2 under that technology development program—

3 ‘‘(A) any proposal to provide outreach and

4 assistance to 1 or more small business concerns

5 interested in participating in the SBIR pro6 gram, including any proposal to make a grant

7 or loan to a company to pay a portion or all of

8 the cost of developing an SBIR proposal, from

9 an entity, organization, or individual located

10 in—

11 ‘‘(i) a State that is eligible to partici12 pate in that program; or

13 ‘‘(ii) a State described in paragraph

14 (3); or

15 ‘‘(B) any proposal for the first phase of

16 the SBIR program, if the proposal, though mer17 itorious, is not funded through the SBIR pro18 gram for that fiscal year due to funding re19 straints, from a small business concern located

20 in—

21 ‘‘(i) a State that is eligible to partici22 pate in a technology development program;

23 or

24 ‘‘(ii) a State described in paragraph

25 (3).
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1 ‘‘(3) ADDITIONALLY ELIGIBLE STATE.—A State

2 referred to in subparagraph (A)(ii) or (B)(ii) of

3 paragraph (2) is a State in which the total value of

4 contracts awarded to small business concerns under

5 all SBIR programs is less than the total value of

6 contracts awarded to small business concerns in a

7 majority of other States, as determined by the Ad8 ministrator in biennial fiscal years, beginning with

9 fiscal year 2000, based on the most recent statistics

10 compiled by the Administrator.’’.

11 SEC. 112. MENTORING NETWORKS.

12 The Small Business Act (15 U.S.C. 631 et seq.) is

13 amended by inserting after section 34, as added by section

14 111(b)(2) of this Act, the following new section:

15 ‘‘SEC. 35. MENTORING NETWORKS.

16 ‘‘(a) FINDINGS.—Congress finds that—

17 ‘‘(1) the SBIR and STTR programs create

18 jobs, increase capacity for technological innovation,

19 and boost international competitiveness;

20 ‘‘(2) increasing the quantity of applications

21 from all States to the SBIR and STTR programs

22 would enhance competition for such awards and the

23 quality of the completed projects; and

24 ‘‘(3) mentoring is a natural complement to the

25 FAST program of reaching out to new companies
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1 regarding the SBIR and STTR programs as an ef2 fective and low-cost way to improve the likelihood

3 that such companies will succeed in such programs

4 in developing and commercializing their research.

5 ‘‘(b) AUTHORIZATION FOR MENTORING NET6 WORKS.—The recipient of an award or participant in a

7 cooperative agreement under section 34 may use a reason8 able amount of such assistance for the establishment of

9 a Mentoring Network under this section.

10 ‘‘(c) CRITERIA FOR MENTORING NETWORKS.—A

11 Mentoring Network established using assistance under

12 section 34 shall—

13 ‘‘(1) provide business advice and counseling to

14 high technology small business concerns located in

15 the State or region served by the Mentoring Net16 work and identified under section 34(c)(1)(E)(ii) as

17 potential candidates for the SBIR or STTR pro18 grams;

19 ‘‘(2) identify volunteer mentors who—

20 ‘‘(A) are persons associated with a small

21 business concern that has successfully com22 pleted one or more SBIR or STTR funding

23 agreements; and

24 ‘‘(B) have agreed to guide small business

25 concerns through all stages of the SBIR or
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1 STTR program process, including providing as2 sistance relating to—

3 ‘‘(i) proposal writing;

4 ‘‘(ii) marketing;

5 ‘‘(iii) Government accounting;

6 ‘‘(iv) Government audits;

7 ‘‘(v) project facilities and equipment;

8 ‘‘(vi) human resources;

9 ‘‘(vii) third phase partners;

10 ‘‘(viii) commercialization;

11 ‘‘(ix) venture capital networking; and

12 ‘‘(x) other matters relevant to the

13 SBIR and STTR programs;

14 ‘‘(3) have experience working with small busi15 ness concerns participating in the SBIR and STTR

16 programs;

17 ‘‘(4) contribute information to the national

18 database referred to in subsection (d); and

19 ‘‘(5) agree to reimburse volunteer mentors for

20 out-of-pocket expenses related to service as a mentor

21 under this section.

22 ‘‘(d) MENTORING DATABASE.—The Administrator

23 shall—

24 ‘‘(1) include in the database required by section

25 9(k)(1), in cooperation with the SBIR, STTR, and
37

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1 FAST programs, information on Mentoring Net2 works and mentors participating under this section,

3 including a description of their areas of expertise;

4 ‘‘(2) work cooperatively with Mentoring Net5 works to maintain and update the database;

6 ‘‘(3) take such action as may be necessary to

7 aggressively promote Mentoring Networks under this

8 section; and

9 ‘‘(4) fulfill the requirements of this subsection

10 either directly or by contract.’’.

11 SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.

12 Section 9 of the Small Business Act (15 U.S.C. 638),

13 as amended by this Act, is further amended by adding

14 at the end the following new subsection:

15 ‘‘(v) SIMPLIFIED REPORTING REQUIREMENTS.—The

16 Administrator shall work with the Federal agencies re17 quired by this section to have an SBIR program to stand18 ardize reporting requirements for the collection of data

19 from SBIR applicants and awardees, including data for

20 inclusion in the database under subsection (k), taking into

21 consideration the unique needs of each agency, and to the

22 extent possible, permitting the updating of previously re23 ported information by electronic means. Such require24 ments shall be designed to minimize the burden on small

25 businesses.’’.
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1 SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.

2 (a) EXTENSION OF TERMINATION DATE.—Section

3 501(b)(2) of the Small Business Reauthorization Act of

4 1997 (15 U.S.C. 638 note; 111 Stat. 2622) is amended

5 by striking ‘‘2001’’ and inserting ‘‘2005’’.

6 (b) EXTENSION OF AUTHORIZATION OF APPROPRIA7 TIONS.—Section 9(s)(2) of the Small Business Act (15

8 U.S.C. 638(s)(2)) is amended by striking ‘‘for fiscal year

9 1998, 1999, 2000, or 2001’’ and inserting ‘‘for each of

10 the fiscal years 2000 through 2005,’’.

11 TITLE II—GENERAL BUSINESS

12 LOAN PROGRAM

13 SEC. 201. SHORT TITLE.

14 This title may be cited as the ‘‘Small Business Gen15 eral Business Loan Improvement Act of 2000’’.

16 SEC. 202. LEVELS OF PARTICIPATION.

17 Section 7(a)(2)(A) of the Small Business Act (15

18 U.S.C. 636(a)(2)(A)) is amended—

19 (1) in paragraph (i) by striking ‘‘$100,000’’

20 and inserting ‘‘$150,000’’; and

21 (2) in paragraph (ii)—

22 (A) by striking ‘‘80 percent’’ and inserting

23 ‘‘85 percent’’; and

24 (B) by striking ‘‘$100,000’’ and inserting

25 ‘‘$150,000’’.
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1 SEC. 203. LOAN AMOUNTS.

2 Section 7(a)(3)(A) of the Small Business Act (15

3 U.S.C. 636(a)(3)(A)) is amended by striking ‘‘$750,000,’’

4 and inserting, ‘‘$1,000,000 (or if the gross loan amount

5 would exceed $2,000,000),’’.

6 SEC. 204. INTEREST ON DEFAULTED LOANS.

7 Subparagraph (B) of section 7(a)(4) of the Small

8 Business Act (15 U.S.C. 636(a)(4)) is amended by adding

9 at the end the following:

10 ‘‘(iii) APPLICABILITY.—Clauses (i)

11 and (ii) shall not apply to loans made on

12 or after October 1, 2000.’’.

13 SEC. 205. PREPAYMENT OF LOANS.

14 Section 7(a)(4) of the Small Business Act (15 U.S.C.

15 636(a)(4)) is further amended—

16 (1) by striking ‘‘(4) INTEREST RATES AND

17 FEES.—’’ and inserting ‘‘(4) INTEREST RATES AND

18 PREPAYMENT CHARGES.—’’; and

19 (2) by adding at the end the following:

20 ‘‘(C) PREPAYMENT CHARGES.—

21 ‘‘(i) IN GENERAL.—A borrower who

22 prepays any loan guaranteed under this

23 subsection shall remit to the Administra24 tion a subsidy recoupment fee calculated in

25 accordance with clause (ii) if—
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1 ‘‘(I) the loan is for a term of not

2 less than 15 years;

3 ‘‘(II) the prepayment is vol4 untary;

5 ‘‘(III) the amount of prepayment

6 in any calendar year is more than 25

7 percent of the outstanding balance of

8 the loan; and

9 ‘‘(IV) the prepayment is made

10 within the first 3 years after disburse11 ment of the loan proceeds.

12 ‘‘(ii) SUBSIDY RECOUPMENT FEE.—

13 The subsidy recoupment fee charged under

14 clause (i) shall be—

15 ‘‘(I) 5 percent of the amount of

16 prepayment, if the borrower prepays

17 during the first year after disburse18 ment;

19 ‘‘(II) 3 percent of the amount of

20 prepayment, if the borrower prepays

21 during the second year after disburse22 ment; and

23 ‘‘(III) 1 percent of the amount of

24 prepayment, if the borrower prepays
41

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1 during the third year after disburse2 ment.’’.

3 SEC. 206. GUARANTEE FEES.

4 Section 7(a)(18)(B) of the Small Business Act (15

5 U.S.C. 636(a)(18)(B)) is amended to read as follows:

6 ‘‘(B) EXCEPTION FOR CERTAIN LOANS.—

7 ‘‘(i) IN GENERAL.—Notwithstanding

8 subparagraph (A), if the total deferred

9 participation share of a loan guaranteed

10 under this subsection is less than or equal

11 to $150,000, the guarantee fee collected

12 under subparagraph (A) shall be in an

13 amount equal to 2 percent of the total de14 ferred participation share of the loan.

15 ‘‘(ii) RETENTION OF FEES.—Lenders

16 participating in the programs established

17 under this subsection may retain not more

18 than 25 percent of the fee collected in ac19 cordance with this subparagraph with re20 spect to any loan not exceeding $150,000

21 in gross loan amount.’’.

22 SEC. 207. LEASE TERMS.

23 Section 7(a) of the Small Business Act (15 U.S.C.

24 636(a)) is further amended by adding at the end the fol25 lowing:
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1 ‘‘(28) LEASING.—In addition to such other

2 lease arrangements as may be authorized by the Ad3 ministration, a borrower may permanently lease to

4 one or more tenants not more than 20 percent of

5 any property constructed with the proceeds of a loan

6 guaranteed under this subsection, if the borrower

7 permanently occupies and uses not less than 60 per8 cent of the total business space in the property.’’.

9 TITLE III—CERTIFIED DEVELOP10 MENT COMPANY PROGRAM

11 SEC. 301. SHORT TITLE.

12 This title may be cited as the ‘‘Certified Development

13 Company Program Improvements Act of 2000’’.

14 SEC. 302. WOMEN-OWNED BUSINESSES.

15 Section 501(d)(3)(C) of the Small Business Invest16 ment Act (15 U.S.C. 695(d)(3)(C)) is amended by insert17 ing before the comma ‘‘or women-owned business develop18 ment’’.

19 SEC. 303. MAXIMUM DEBENTURE SIZE.

20 Section 502(2) of the Small Business Investment Act

21 of 1958 (15 U.S.C. 696(2)) is amended to read as follows:

22 ‘‘(2) Loans made by the Administration under

23 this section shall be limited to $1,000,000 for each

24 such identifiable small business concern, except

25 loans meeting the criteria specified in section
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1 501(d)(3), which shall be limited to $1,300,000 for

2 each such identifiable small business concern.’’.

3 SEC. 304. FEES.

4 Section 503(f) of the Small Business Investment Act

5 of 1958 (15 U.S.C. 697(f)) is amended to read as follows:

6 ‘‘(f) EFFECTIVE DATE.—The fees authorized by sub7 sections (b) and (d) shall apply to financings approved by

8 the Administration on or after October 1, 1996, but shall

9 not apply to financings approved by the Administration

10 on or after October 1, 2003.’’.

11 SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.

12 Section 217(b) of the Small Business Reauthoriza13 tion and Amendments Act of 1994 (relating to section 508

14 of the Small Business Investment Act) is repealed.

15 SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.

16 Section 508 of the Small Business Investment Act

17 of 1958 (15 U.S.C. 697e) is amended—

18 (1) in subsection (a), by striking ‘‘On a pilot

19 program basis, the’’ and inserting ‘‘The’’;

20 (2) by redesignating subsections (d) though (i)

21 as subsections (e) though (j), respectively;

22 (3) in subsection (f) (as redesignated by para23 graph (2)), by striking ‘‘subsection (f)’’ and insert24 ing ‘‘subsection (g)’’;
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1 (4) in subsection (h) (as redesignated by para2 graph (2)), by striking ‘‘subsection (f)’’ and insert3 ing ‘‘subsection (g)’’; and

4 (5) by inserting after subsection (c) the fol5 lowing:

6 ‘‘(d) SALE OF CERTAIN DEFAULTED LOANS.—

7 ‘‘(1) NOTICE.—If, upon default in repayment,

8 the Administration acquires a loan guaranteed under

9 this section and identifies such loan for inclusion in

10 a bulk asset sale of defaulted or repurchased loans

11 or other financings, it shall give prior notice thereof

12 to any certified development company which has a

13 contingent liability under this section. The notice

14 shall be given to the company as soon as possible

15 after the financing is identified, but not less than 90

16 days before the date the Administration first makes

17 any records on such financing available for examina18 tion by prospective purchasers prior to its offering

19 in a package of loans for bulk sale.

20 ‘‘(2) LIMITATIONS.—The Administration shall

21 not offer any loan described in paragraph (1) as

22 part of a bulk sale unless it—

23 ‘‘(A) provides prospective purchasers with

24 the opportunity to examine the Administration’s

25 records with respect to such loan; and
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1 ‘‘(B) provides the notice required by para2 graph (1).’’.

3 SEC. 307. LOAN LIQUIDATION.

4 (a) LIQUIDATION AND FORECLOSURE.—Title V of

5 the Small Business Investment Act of 1958 (15 U.S.C.

6 695 et seq.) is amended by adding at the end the fol7 lowing:

8 ‘‘SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.

9 ‘‘(a) DELEGATION OF AUTHORITY.—In accordance

10 with this section, the Administration shall delegate to any

11 qualified State or local development company (as defined

12 in section 503(e)) that meets the eligibility requirements

13 of subsection (b)(1) the authority to foreclose and liq14 uidate, or to otherwise treat in accordance with this sec15 tion, defaulted loans in its portfolio that are funded with

16 the proceeds of debentures guaranteed by the Administra17 tion under section 503.

18 ‘‘(b) ELIGIBILITY FOR DELEGATION.—

19 ‘‘(1) REQUIREMENTS.—A qualified State or

20 local development company shall be eligible for a del21 egation of authority under subsection (a) if—

22 ‘‘(A) the company—

23 ‘‘(i) has participated in the loan liq24 uidation pilot program established by the

25 Small Business Programs Improvement
46

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1 Act of 1996 (15 U.S.C. 695 note), as in

2 effect on the day before promulgation of

3 final regulations by the Administration im4 plementing this section;

5 ‘‘(ii) is participating in the Premier

6 Certified Lenders Program under section

7 508; or

8 ‘‘(iii) during the 3 fiscal years imme9 diately prior to seeking such a delegation,

10 has made an average of not less than 10

11 loans per year that are funded with the

12 proceeds of debentures guaranteed under

13 section 503; and

14 ‘‘(B) the company—

15 ‘‘(i) has one or more employees—

16 ‘‘(I) with not less than 2 years of

17 substantive, decision-making experi18 ence in administering the liquidation

19 and workout of problem loans secured

20 in a manner substantially similar to

21 loans funded with the proceeds of de22 bentures guaranteed under section

23 503; and

24 ‘‘(II) who have completed a train25 ing program on loan liquidation devel-
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1 oped by the Administration in con2 junction with qualified State and local

3 development companies that meet the

4 requirements of this paragraph; or

5 ‘‘(ii) submits to the Administration

6 documentation demonstrating that the

7 company has contracted with a qualified

8 third-party to perform any liquidation ac9 tivities and secures the approval of the

10 contract by the Administration with re11 spect to the qualifications of the contractor

12 and the terms and conditions of liquidation

13 activities.

14 ‘‘(2) CONFIRMATION.—On request the Adminis15 tration shall examine the qualifications of any com16 pany described in subsection (a) to determine if such

17 company is eligible for the delegation of authority

18 under this section. If the Administration determines

19 that a company is not eligible, the Administration

20 shall provide the company with the reasons for such

21 ineligibility.

22 ‘‘(c) SCOPE OF DELEGATED AUTHORITY.—

23 ‘‘(1) IN GENERAL.—Each qualified State or

24 local development company to which the Administra-
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1 tion delegates authority under section (a) may with

2 respect to any loan described in subsection (a)—

3 ‘‘(A) perform all liquidation and fore4 closure functions, including the purchase in ac5 cordance with this subsection of any other in6 debtedness secured by the property securing the

7 loan, in a reasonable and sound manner accord8 ing to commercially accepted practices, pursu9 ant to a liquidation plan approved in advance

10 by the Administration under paragraph (2)(A);

11 ‘‘(B) litigate any matter relating to the

12 performance of the functions described in sub13 paragraph (A), except that the Administration

14 may—

15 ‘‘(i) defend or bring any claim if—

16 ‘‘(I) the outcome of the litigation

17 may adversely affect the Administra18 tion’s management of the loan pro19 gram established under section 502;

20 or

21 ‘‘(II) the Administration is enti22 tled to legal remedies not available to

23 a qualified State or local development

24 company and such remedies will ben25 efit either the Administration or the
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1 qualified State or local development

2 company; or

3 ‘‘(ii) oversee the conduct of any such

4 litigation; and

5 ‘‘(C) take other appropriate actions to

6 mitigate loan losses in lieu of total liquidation

7 or foreclosures, including the restructuring of a

8 loan in accordance with prudent loan servicing

9 practices and pursuant to a workout plan ap10 proved in advance by the Administration under

11 paragraph (2)(C).

12 ‘‘(2) ADMINISTRATION APPROVAL.—

13 ‘‘(A) LIQUIDATION PLAN.—

14 ‘‘(i) IN GENERAL.—Before carrying

15 out functions described in paragraph

16 (1)(A), a qualified State or local develop17 ment company shall submit to the Admin18 istration a proposed liquidation plan.

19 ‘‘(ii) ADMINISTRATION ACTION ON

20 PLAN.—

21 ‘‘(I) TIMING.—Not later than 15

22 business days after a liquidation plan

23 is received by the Administration

24 under clause (i), the Administration

25 shall approve or reject the plan.
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1 ‘‘(II) NOTICE OF NO DECISION.—

2 With respect to any plan that cannot

3 be approved or denied within the 15-

4 day period required by subclause (I),

5 the Administration shall within such

6 period provide in accordance with sub7 paragraph (E) notice to the company

8 that submitted the plan.

9 ‘‘(iii) ROUTINE ACTIONS.—In carrying

10 out functions described in paragraph

11 (1)(A), a qualified State or local develop12 ment company may undertake routine ac13 tions not addressed in a liquidation plan

14 without obtaining additional approval from

15 the Administration.

16 ‘‘(B) PURCHASE OF INDEBTEDNESS.—

17 ‘‘(i) IN GENERAL.—In carrying out

18 functions described in paragraph (1)(A), a

19 qualified State or local development com20 pany shall submit to the Administration a

21 request for written approval before com22 mitting the Administration to the purchase

23 of any other indebtedness secured by the

24 property securing a defaulted loan.
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1 ‘‘(ii) ADMINISTRATION ACTION ON RE2 QUEST.—

3 ‘‘(I) TIMING.—Not later than 15

4 business days after receiving a request

5 under clause (i), the Administration

6 shall approve or deny the request.

7 ‘‘(II) NOTICE OF NO DECISION.—

8 With respect to any request that can9 not be approved or denied within the

10 15-day period required by subclause

11 (I), the Administration shall within

12 such period provide in accordance

13 with subparagraph (E) notice to the

14 company that submitted the request.

15 ‘‘(C) WORKOUT PLAN.—

16 ‘‘(i) IN GENERAL.—In carrying out

17 functions described in paragraph (1)(C), a

18 qualified State or local development com19 pany shall submit to the Administration a

20 proposed workout plan.

21 ‘‘(ii) ADMINISTRATION ACTION ON

22 PLAN.—

23 ‘‘(I) TIMING.—Not later than 15

24 business days after a workout plan is

25 received by the Administration under
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1 clause (i), the Administration shall

2 approve or reject the plan.

3 ‘‘(II) NOTICE OF NO DECISION.—

4 With respect to any workout plan that

5 cannot be approved or denied within

6 the 15-day period required by sub7 clause (I), the Administration shall

8 within such period provide in accord9 ance with subparagraph (E) notice to

10 the company that submitted the plan.

11 ‘‘(D) COMPROMISE OF INDEBTEDNESS.—

12 In carrying out functions described in para13 graph (1)(A), a qualified State or local develop14 ment company may—

15 ‘‘(i) consider an offer made by an obli16 gor to compromise the debt for less than

17 the full amount owing; and

18 ‘‘(ii) pursuant to such an offer, re19 lease any obligor or other party contin20 gently liable, if the company secures the

21 written approval of the Administration.

22 ‘‘(E) CONTENTS OF NOTICE OF NO DECI23 SION.—Any notice provided by the Administra24 tion under subparagraphs (A)(ii)(II),

25 (B)(ii)(II), or (C)(ii)(II)—
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1 ‘‘(i) shall be in writing;

2 ‘‘(ii) shall state the specific reason for

3 the Administration’s inability to act on a

4 plan or request;

5 ‘‘(iii) shall include an estimate of the

6 additional time required by the Adminis7 tration to act on the plan or request; and

8 ‘‘(iv) if the Administration cannot act

9 because insufficient information or docu10 mentation was provided by the company

11 submitting the plan or request, shall speci12 fy the nature of such additional informa13 tion or documentation.

14 ‘‘(3) CONFLICT OF INTEREST.—In carrying out

15 functions described in paragraph (1), a qualified

16 State or local development company shall take no ac17 tion that would result in an actual or apparent con18 flict of interest between the company (or any em19 ployee of the company) and any third party lender,

20 associate of a third party lender, or any other person

21 participating in a liquidation, foreclosure, or loss

22 mitigation action.

23 ‘‘(d) SUSPENSION OR REVOCATION OF AUTHOR24 ITY.—The Administration may revoke or suspend a dele25 gation of authority under this section to any qualified
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1 State or local development company, if the Administration

2 determines that the company—

3 ‘‘(1) does not meet the requirements of sub4 section (b)(1);

5 ‘‘(2) has violated any applicable rule or regula6 tion of the Administration or any other applicable

7 law; or

8 ‘‘(3) fails to comply with any reporting require9 ment that may be established by the Administration

10 relating to carrying out of functions described in

11 paragraph (1).

12 ‘‘(e) REPORT.—

13 ‘‘(1) IN GENERAL.—Based on information pro14 vided by qualified State and local development com15 panies and the Administration, the Administration

16 shall annually submit to the Committees on Small

17 Business of the House of Representatives and of the

18 Senate a report on the results of delegation of au19 thority under this section.

20 ‘‘(2) CONTENTS.—Each report submitted under

21 paragraph (1) shall include the following informa22 tion:

23 ‘‘(A) With respect to each loan foreclosed

24 or liquidated by a qualified State or local devel25 opment company under this section, or for
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1 which losses were otherwise mitigated by the

2 company pursuant to a workout plan under this

3 section—

4 ‘‘(i) the total cost of the project fi5 nanced with the loan;

6 ‘‘(ii) the total original dollar amount

7 guaranteed by the Administration;

8 ‘‘(iii) the total dollar amount of the

9 loan at the time of liquidation, foreclosure,

10 or mitigation of loss;

11 ‘‘(iv) the total dollar losses resulting

12 from the liquidation, foreclosure, or mitiga13 tion of loss; and

14 ‘‘(v) the total recoveries resulting

15 from the liquidation, foreclosure, or mitiga16 tion of loss, both as a percentage of the

17 amount guaranteed and the total cost of

18 the project financed.

19 ‘‘(B) With respect to each qualified State

20 or local development company to which author21 ity is delegated under this section, the totals of

22 each of the amounts described in clauses (i)

23 through (v) of subparagraph (A).

24 ‘‘(C) With respect to all loans subject to

25 foreclosure, liquidation, or mitigation under this
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1 section, the totals of each of the amounts de2 scribed in clauses (i) through (v) of subpara3 graph (A).

4 ‘‘(D) A comparison between—

5 ‘‘(i) the information provided under

6 subparagraph (C) with respect to the 12-

7 month period preceding the date on which

8 the report is submitted; and

9 ‘‘(ii) the same information with re10 spect to loans foreclosed and liquidated, or

11 otherwise treated, by the Administration

12 during the same period.

13 ‘‘(E) The number of times that the Admin14 istration has failed to approve or reject a liq15 uidation plan in accordance with subparagraph

16 (A)(i), a workout plan in accordance with sub17 paragraph (C)(i), or to approve or deny a re18 quest for purchase of indebtedness under sub19 paragraph (B)(i), including specific information

20 regarding the reasons for the Administration’s

21 failure and any delays that resulted.’’.

22 (b) REGULATIONS.—

23 (1) IN GENERAL.—Not later than 150 days

24 after the date of enactment of this Act, the Adminis25 trator shall issue such regulations as may be nec-
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1 essary to carry out section 510 of the Small Busi2 ness Investment Act of 1958, as added by subsection

3 (a) of this section.

4 (2) TERMINATION OF PILOT PROGRAM.—Begin5 ning on the date which the final regulations are

6 issued under paragraph (1), section 204 of the

7 Small Business Programs Improvement Act of 1996

8 (15 U.S.C. 695 note) shall cease to have effect.

9 TITLE IV—CORRECTIONS TO

10 THE SMALL BUSINESS IN11 VESTMENT ACT OF 1958

12 SEC. 401. SHORT TITLE.

13 This title may be cited as the ‘‘Small Business Invest14 ment Corrections Act of 2000’’.

15 SEC. 402. DEFINITIONS.

16 (a) SMALL BUSINESS CONCERN.—Section

17 103(5)(A)(i) of the Small Business Investment Act of

18 1958 (15 U.S.C. 662(5)(A)(i)) is amended by inserting

19 ‘‘regardless of the allocation of control during the invest20 ment period under any investment agreement between the

21 business concern and the entity making the investment’’

22 before the semicolon at the end.

23 (b) LONG TERM.—Section 103 of the Small Business

24 Investment Act of 1958 (15 U.S.C. 662) is amended—
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1 (1) in paragraph (15), by striking ‘‘and’’ at the

2 end;

3 (2) in paragraph (16), by striking the period at

4 the end and inserting ‘‘; and’’; and

5 (3) by adding at the end the following new

6 paragraph:

7 ‘‘(17) the term ‘long term’, when used in con8 nection with equity capital or loan funds invested in

9 any small business concern or smaller enterprise,

10 means any period of time not less than 1 year.’’.

11 SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT

12 COMPANIES.

13 Section 302(b) of the Small Business Investment Act

14 of 1958 (15 U.S.C. 682(b)) is amended—

15 (1) by striking ‘‘(b) Notwithstanding’’ and in16 serting the following:

17 ‘‘(b) FINANCIAL INSTITUTION INVESTMENTS.—

18 ‘‘(1) CERTAIN BANKS.—Notwithstanding’’; and

19 (2) by adding at the end the following:

20 ‘‘(2) CERTAIN SAVINGS ASSOCIATIONS.—Not21 withstanding any other provision of law, any Federal

22 savings association may invest in any 1 or more

23 small business investment companies, or in any enti24 ty established to invest solely in small business in25 vestment companies, except that in no event may the
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1 total amount of such investments by any such Fed2 eral savings association exceed 5 percent of the cap3 ital and surplus of the Federal savings association.’’.

4 SEC. 404. SUBSIDY FEES.

5 (a) DEBENTURES.—Section 303(b) of the Small

6 Business Investment Act of 1958 (15 U.S.C. 683(b)) is

7 amended by striking ‘‘plus an additional charge of 1 per8 cent per annum which shall be paid to and retained by

9 the Administration’’ and inserting ‘‘plus, for debentures

10 issued after September 30, 2000, an additional charge, in

11 an amount established annually by the Administration, of

12 not more than 1 percent per year as necessary to reduce

13 to zero the cost (as defined in section 502 of the Federal

14 Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Ad15 ministration of purchasing and guaranteeing debentures

16 under this Act, which shall be paid to and retained by

17 the Administration’’.

18 (b) PARTICIPATING SECURITIES.—Section 303(g)(2)

19 of the Small Business Investment Act of 1958 (15 U.S.C.

20 683(g)(2)) is amended by striking ‘‘plus an additional

21 charge of 1 percent per annum which shall be paid to and

22 retained by the Administration’’ and inserting ‘‘plus, for

23 participating securities issued after September 30, 2000,

24 an additional charge, in an amount established annually

25 by the Administration, of not more than 1 percent per
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1 year as necessary to reduce to zero the cost (as defined

2 in section 502 of the Federal Credit Reform Act of 1990

3 (2 U.S.C. 661a)) to the Administration of purchasing and

4 guaranteeing participating securities under this Act, which

5 shall be paid to and retained by the Administration’’.

6 SEC. 405. DISTRIBUTIONS.

7 Section 303(g)(8) of the Small Business Investment

8 Act of 1958 (15 U.S.C. 683(g)(8)) is amended—

9 (1) by striking ‘‘subchapter s corporation’’ and

10 inserting ‘‘subchapter S corporation’’;

11 (2) by striking ‘‘the end of any calendar quarter

12 based on a quarterly’’ and inserting ‘‘any time dur13 ing any calendar quarter based on an’’; and

14 (3) by striking ‘‘quarterly distributions for a

15 calendar year,’’ and inserting ‘‘interim distributions

16 for a calendar year,’’.

17 SEC. 406. CONFORMING AMENDMENT.

18 Section 310(c)(4) of the Small Business Investment

19 Act of 1958 (15 U.S.C. 687b(c)(4)) is amended by strik20 ing ‘‘five years’’ and inserting ‘‘1 year’’.

21 TITLE V—REAUTHORIZATION OF

22 SMALL BUSINESS PROGRAMS

23 SEC. 501. SHORT TITLE.

24 This title may be cited as the ‘‘Small Business Reau25 thorization Act of 2000’’.
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1 SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PRO2 GRAMS.

3 Section 20 of the Small Business Act (15 U.S.C. 631

4 note) is amended by adding at the end the following:

5 ‘‘(g) FISCAL YEAR 2001.—

6 ‘‘(1) PROGRAM LEVELS.—The following pro7 gram levels are authorized for fiscal year 2001:

8 ‘‘(A) For the programs authorized by this

9 Act, the Administration is authorized to

10 make—

11 ‘‘(i) $45,000,000 in technical assist12 ance grants as provided in section 7(m);

13 and

14 ‘‘(ii) $60,000,000 in direct loans, as

15 provided in 7(m).

16 ‘‘(B) For the programs authorized by this

17 Act, the Administration is authorized to make

18 $19,050,000,000 in deferred participation loans

19 and other financings. Of such sum, the Admin20 istration is authorized to make—

21 ‘‘(i) $14,500,000,000 in general busi22 ness loans as provided in section 7(a);

23 ‘‘(ii) $4,000,000,000 in financings as

24 provided in section 7(a)(13) of this Act

25 and section 504 of the Small Business In26 vestment Act of 1958;
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1 ‘‘(iii) $500,000,000 in loans as pro2 vided in section 7(a)(21); and

3 ‘‘(iv) $50,000,000 in loans as pro4 vided in section 7(m).

5 ‘‘(C) For the programs authorized by title

6 III of the Small Business Investment Act of

7 1958, the Administration is authorized to

8 make—

9 ‘‘(i) $2,500,000,000 in purchases of

10 participating securities; and

11 ‘‘(ii) $1,500,000,000 in guarantees of

12 debentures.

13 ‘‘(D) For the programs authorized by part

14 B of title IV of the Small Business Investment

15 Act of 1958, the Administration is authorized

16 to enter into guarantees not to exceed

17 $4,000,000,000 of which not more than 50 per18 cent may be in bonds approved pursuant to sec19 tion 411(a)(3) of that Act.

20 ‘‘(E) The Administration is authorized to

21 make grants or enter cooperative agreements

22 for a total amount of $5,000,000 for the Serv23 ice Corps of Retired Executives program au24 thorized by section 8(b)(1).

25 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—
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1 ‘‘(A) There are authorized to be appro2 priated to the Administration for fiscal year

3 2001 such sums as may be necessary to carry

4 out the provisions of this Act not elsewhere pro5 vided for, including administrative expenses and

6 necessary loan capital for disaster loans pursu7 ant to section 7(b), and to carry out title IV of

8 the Small Business Investment Act of 1958, in9 cluding salaries and expenses of the Adminis10 tration.

11 ‘‘(B) Notwithstanding any other provision

12 of this paragraph, for fiscal year 2001—

13 ‘‘(i) no funds are authorized to be

14 used as loan capital for the loan program

15 authorized by section 7(a)(21) except by

16 transfer from another Federal department

17 or agency to the Administration, unless the

18 program level authorized for general busi19 ness loans under paragraph (1)(B)(i) is

20 fully funded; and

21 ‘‘(ii) the Administration may not ap22 prove loans on its own behalf or on behalf

23 of any other Federal department or agen24 cy, by contract or otherwise, under terms

25 and conditions other than those specifically
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1 authorized under this Act or the Small

2 Business Investment Act of 1958, except

3 that it may approve loans under section

4 7(a)(21) of this Act in gross amounts of

5 not more than $1,250,000.

6 ‘‘(h) FISCAL YEAR 2002.—

7 ‘‘(1) PROGRAM LEVELS.—The following pro8 gram levels are authorized for fiscal year 2002:

9 ‘‘(A) For the programs authorized by this

10 Act, the Administration is authorized to

11 make—

12 ‘‘(i) $60,000,000 in technical assist13 ance grants as provided in section 7(m);

14 and

15 ‘‘(ii) $80,000,000 in direct loans, as

16 provided in 7(m).

17 ‘‘(B) For the programs authorized by this

18 Act, the Administration is authorized to make

19 $20,050,000,000 in deferred participation loans

20 and other financings. Of such sum, the Admin21 istration is authorized to make—

22 ‘‘(i) $15,000,000,000 in general busi23 ness loans as provided in section 7(a);

24 ‘‘(ii) $4,500,000,000 in financings as

25 provided in section 7(a)(13) of this Act
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1 and section 504 of the Small Business In2 vestment Act of 1958;

3 ‘‘(iii) $500,000,000 in loans as pro4 vided in section 7(a)(21); and

5 ‘‘(iv) $50,000,000 in loans as pro6 vided in section 7(m).

7 ‘‘(C) For the programs authorized by title

8 III of the Small Business Investment Act of

9 1958, the Administration is authorized to

10 make—

11 ‘‘(i) $3,500,000,000 in purchases of

12 participating securities; and

13 ‘‘(ii) $2,500,000,000 in guarantees of

14 debentures.

15 ‘‘(D) For the programs authorized by part

16 B of title IV of the Small Business Investment

17 Act of 1958, the Administration is authorized

18 to enter into guarantees not to exceed

19 $5,000,000,000 of which not more than 50 per20 cent may be in bonds approved pursuant to sec21 tion 411(a)(3) of that Act.

22 ‘‘(E) The Administration is authorized to

23 make grants or enter cooperative agreements

24 for a total amount of $6,000,000 for the Serv-
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1 ice Corps of Retired Executives program au2 thorized by section 8(b)(1).

3 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

4 ‘‘(A) There are authorized to be appro5 priated to the Administration for fiscal year

6 2002 such sums as may be necessary to carry

7 out the provisions of this Act not elsewhere pro8 vided for, including administrative expenses and

9 necessary loan capital for disaster loans pursu10 ant to section 7(b), and to carry out title IV of

11 the Small Business Investment Act of 1958, in12 cluding salaries and expenses of the Adminis13 tration.

14 ‘‘(B) Notwithstanding any other provision

15 of this paragraph, for fiscal year 2002—

16 ‘‘(i) no funds are authorized to be

17 used as loan capital for the loan program

18 authorized by section 7(a)(21) except by

19 transfer from another Federal department

20 or agency to the Administration, unless the

21 program level authorized for general busi22 ness loans under paragraph (1)(B)(i) is

23 fully funded; and

24 ‘‘(ii) the Administration may not ap25 prove loans on its own behalf or on behalf
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1 of any other Federal department or agen2 cy, by contract or otherwise, under terms

3 and conditions other than those specifically

4 authorized under this Act or the Small

5 Business Investment Act of 1958, except

6 that it may approve loans under section

7 7(a)(21) of this Act in gross amounts of

8 not more than $1,250,000.

9 ‘‘(i) FISCAL YEAR 2003.—

10 ‘‘(1) PROGRAM LEVELS.—The following pro11 gram levels are authorized for fiscal year 2003:

12 ‘‘(A) For the programs authorized by this

13 Act, the Administration is authorized to

14 make—

15 ‘‘(i) $70,000,000 in technical assist16 ance grants as provided in section 7(m);

17 and

18 ‘‘(ii) $100,000,000 in direct loans, as

19 provided in 7(m).

20 ‘‘(B) For the programs authorized by this

21 Act, the Administration is authorized to make

22 $21,550,000,000 in deferred participation loans

23 and other financings. Of such sum, the Admin24 istration is authorized to make—
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1 ‘‘(i) $16,000,000,000 in general busi2 ness loans as provided in section 7(a);

3 ‘‘(ii) $5,000,000,000 in financings as

4 provided in section 7(a)(13) of this Act

5 and section 504 of the Small Business In6 vestment Act of 1958;

7 ‘‘(iii) $500,000,000 in loans as pro8 vided in section 7(a)(21); and

9 ‘‘(iv) $50,000,000 in loans as pro10 vided in section 7(m).

11 ‘‘(C) For the programs authorized by title

12 III of the Small Business Investment Act of

13 1958, the Administration is authorized to

14 make—

15 ‘‘(i) $4,000,000,000 in purchases of

16 participating securities; and

17 ‘‘(ii) $3,000,000,000 in guarantees of

18 debentures.

19 ‘‘(D) For the programs authorized by part

20 B of title IV of the Small Business Investment

21 Act of 1958, the Administration is authorized

22 to enter into guarantees not to exceed

23 $6,000,000,000 of which not more than 50 per24 cent may be in bonds approved pursuant to sec25 tion 411(a)(3) of that Act.
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1 ‘‘(E) The Administration is authorized to

2 make grants or enter into cooperative agree3 ments for a total amount of $7,000,000 for the

4 Service Corps of Retired Executives program

5 authorized by section 8(b)(1).

6 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

7 ‘‘(A) There are authorized to be appro8 priated to the Administration for fiscal year

9 2003 such sums as may be necessary to carry

10 out the provisions of this Act not elsewhere pro11 vided for, including administrative expenses and

12 necessary loan capital for disaster loans pursu13 ant to section 7(b), and to carry out title IV of

14 the Small Business Investment Act of 1958, in15 cluding salaries and expenses of the Adminis16 tration.

17 ‘‘(B) Notwithstanding any other provision

18 of this paragraph, for fiscal year 2003—

19 ‘‘(i) no funds are authorized to be

20 used as loan capital for the loan program

21 authorized by section 7(a)(21) except by

22 transfer from another Federal department

23 or agency to the Administration, unless the

24 program level authorized for general busi-
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1 ness loans under paragraph (1)(B)(i) is

2 fully funded; and

3 ‘‘(ii) the Administration may not ap4 prove loans on its own behalf or on behalf

5 of any other Federal department or agen6 cy, by contract or otherwise, under terms

7 and conditions other than those specifically

8 authorized under this Act or the Small

9 Business Investment Act of 1958, except

10 that it may approve loans under section

11 7(a)(21) of this Act in gross amounts of

12 not more than $1,250,000.’’.

13 SEC. 503. ADDITIONAL REAUTHORIZATIONS.

14 (a) SMALL BUSINESS DEVELOPMENT CENTERS PRO15 GRAM.—Section 21(a)(4)(C)(iii)(III) of the Small Busi16 ness Act (15 U.S.C. 648(a)(4)(C)(iii)(III)) is amended by

17 striking ‘‘$95,000,000’’ and inserting ‘‘$125,000,000’’.

18 (b) DRUG-FREE WORKPLACE PROGRAM.—Section 27

19 of the Small Business Act (15 U.S.C. 654) is amended—

20 (1) in the section heading, by striking

21 ‘‘DRUG-FREE WORKPLACE DEM22 ONSTRATION PROGRAM’’ and inserting

23 ‘‘PAUL D. COVERDELL DRUG-FREE

24 WORKPLACE PROGRAM’’; and
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1 (2) in subsection (g)(1), by striking

2 ‘‘$10,000,000 for fiscal years 1999 and 2000’’ and

3 inserting ‘‘$5,000,000 for each of fiscal years 2001

4 through 2003’’.

5 (c) HUBZONE PROGRAM.—Section 31 of the Small

6 Business Act (15 U.S.C. 657a) is amended by adding at

7 the end the following new subsection:

8 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

9 is authorized to be appropriated to carry out the program

10 established by this section $10,000,000 for each of fiscal

11 years 2001 through 2003.’’.

12 (d) WOMEN’S BUSINESS ENTERPRISE DEVELOP13 MENT PROGRAMS.—Section 411 of the Women’s Business

14 Ownership Act (Public Law 105–135; 15 U.S.C. 631 note)

15 is amended by striking ‘‘$600,000, for each of fiscal years

16 1998 through 2000,’’ and inserting ‘‘$1,000,000 for each

17 of fiscal years 2001 through 2003,’’.

18 (e) VERY SMALL BUSINESS CONCERNS PROGRAM.—

19 Section 304(i) of the Small Business Administration Re20 authorization and Amendments Act of 1994 (Public Law

21 103–403; 15 U.S.C. 644 note) is amended by striking

22 ‘‘September 30, 2000’’ and inserting ‘‘September 30,

23 2003’’.

24 (f) SOCIALLY AND ECONOMICALLY DISADVANTAGED

25 BUSINESSES PROGRAM.—Section 7102(c) of the Federal
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1 Acquisition Streamlining Act of 1994 (Public Law 103–

2 355; 15 U.S.C. 644 note) is amended by striking ‘‘Sep3 tember 30, 2000’’ and inserting ‘‘September 30, 2003’’.

4 TITLE VI—MISCELLANEOUS

5 PROVISIONS

6 SEC. 601. LOAN APPLICATION PROCESSING.

7 (a) STUDY.—The Administrator of the Small Busi8 ness Administration shall conduct a study to determine

9 the average time that the Administration requires to proc10 ess an application for each type of loan or loan guarantee

11 made under the Small Business Act (15 U.S.C. 631 et

12 seq.).

13 (b) TRANSMITTAL.—Not later than 1 year after the

14 date of the enactment of this title, the Administrator shall

15 transmit to Congress the results of the study conducted

16 under subsection (a).

17 SEC. 602. APPLICATION OF OWNERSHIP REQUIREMENTS.

18 Section 2 of the Small Business Act (15 U.S.C. 631)

19 is amended by adding at the end the following new sub20 section:

21 ‘‘(k) APPLICATION OF OWNERSHIP REQUIRE22 MENTS.—Each ownership requirement established under

23 this Act or the Small Business Investment Act of 1958

24 (15 U.S.C. 661 et seq.) shall be applied without regard

25 to any possible future ownership interest of a spouse aris-
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1 ing from the application of any State community property

2 law established for the purpose of determining marital in3 terest.’’.

4 SEC. 603. ELIGIBILITY FOR HUBZONE PROGRAM.

5 Section 3(p)(5) of the Small Business Act (15 U.S.C.

6 632(p)(5)) is amended by adding at the end the following

7 new subparagraph:

8 ‘‘(E) EXTENSION OF ELIGIBILITY.—If a

9 geographic area that qualified as a HUBZone

10 under this subsection ceases to qualify as a re11 sult of a change in official government data or

12 boundary designations, each small business con13 cern certified as HUBZone small business con14 cern in connection with such geographic area

15 shall remain certified as such for a period of 1

16 year after the effective date of the change in

17 HUBZone status, if the small business concern

18 continues to meet each of the other qualifica19 tions applicable to a HUBZone small business

20 concern.’’.

21 SEC. 604. SUBCONTRACTING PREFERENCE FOR VETERANS.

22 Section 8(d) of the Small Business Act (15 U.S.C.

23 637(d)) is amended—

24 (1) in paragraph (1), by inserting ‘‘small busi25 ness concerns owned and controlled by veterans,’’
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1 after ‘‘small business concerns,’’ the first place that

2 term appears in each of the first and second sen3 tences;

4 (2) in paragraph (3)—

5 (A) in subparagraph (A), by inserting

6 ‘‘small business concerns owned and controlled

7 by service-disabled veterans,’’ after ‘‘small busi8 ness concerns owned and controlled by vet9 erans,’’ in each of the first and second sen10 tences; and

11 (B) in subparagraph (F), by inserting

12 ‘‘small business concern owned and controlled

13 by service-disabled veterans,’’ after ‘‘small busi14 ness concern owned and controlled by vet15 erans,’’; and

16 (3) in each of paragraphs (4)(D), (4)(E),

17 (6)(A), (6)(C), (6)(F), and (10)(B), by inserting

18 ‘‘small business concern owned and controlled by

19 service-disabled veterans,’’ after ‘‘small business con20 cerns owned and controlled by veterans,’’.

21 SEC. 605. SMALL BUSINESS DEVELOPMENT CENTER PRO22 GRAM FUNDING.

23 (a) AUTHORIZATION.—

24 (1) IN GENERAL.—Section 20(a)(1) of the

25 Small Business Act (15 U.S.C. 631 note) is amend-
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1 ed by striking ‘‘For fiscal year 1985’’ and all that

2 follows through ‘‘expended.’’ and inserting the fol3 lowing: ‘‘For fiscal year 2000 and each fiscal year

4 thereafter, there are authorized to be appropriated

5 such sums as may be necessary and appropriate, to

6 remain available until expended, and to be available

7 solely—

8 ‘‘(A) to carry out the Small Business Develop9 ment Center Program under section 21, but not to

10 exceed the annual funding level, as specified in sec11 tion 21(a);

12 ‘‘(B) to pay the expenses of the National Small

13 Business Development Center Advisory Board, as

14 provided in section 21(i);

15 ‘‘(C) to pay the expenses of the information

16 sharing system, as provided in section 21(c)(8);

17 ‘‘(D) to pay the expenses of the association re18 ferred to in section 21(a)(3)(A) for conducting the

19 certification program, as provided in section

20 21(k)(2); and

21 ‘‘(E) to pay the expenses of the Administration,

22 including salaries of examiners, for conducting ex23 aminations as part of the certification program con24 ducted by the association referred to in section

25 21(a)(3)(A).’’.
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1 (2) TECHNICAL AMENDMENT.—Section 20(a) of

2 the Small Business Act (15 U.S.C. 631 note) is fur3 ther amended by moving paragraphs (3) and (4), in4 cluding subparagraphs (A) and (B) of paragraph

5 (4), 2 ems to the left.

6 (b) FUNDING FORMULA.—Section 21(a)(4)(C) of the

7 Small Business Act (15 U.S.C. 648(a)(4)(C)) is amended

8 to read as follows:

9 ‘‘(C) FUNDING FORMULA.—

10 ‘‘(i) IN GENERAL.—Subject to clause (iii),

11 the amount of a formula grant received by a

12 State under this subparagraph shall be equal to

13 an amount determined in accordance with the

14 following formula:

15 ‘‘(I) The annual amount made avail16 able under section 20(a) for the Small

17 Business Development Center Program,

18 less any reductions made for expenses au19 thorized by clause (v) of this subpara20 graph, shall be divided on a pro rata basis,

21 based on the percentage of the population

22 of each State, as compared to the popu23 lation of the United States.

24 ‘‘(II) If the pro rata amount cal25 culated under subclause (I) for any State
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1 is less than the minimum funding level

2 under clause (iii), the Administration shall

3 determine the aggregate amount necessary

4 to achieve that minimum funding level for

5 each such State.

6 ‘‘(III) The aggregate amount cal7 culated under subclause (II) shall be de8 ducted from the amount calculated under

9 subclause (I) for States eligible to receive

10 more than the minimum funding level. The

11 deductions shall be made on a pro rata

12 basis, based on the population of each such

13 State, as compared to the total population

14 of all such States.

15 ‘‘(IV) The aggregate amount deducted

16 under subclause (III) shall be added to the

17 grants of those States that are not eligible

18 to receive more than the minimum funding

19 level in order to achieve the minimum

20 funding level for each such State, except

21 that the eligible amount of a grant to any

22 State shall not be reduced to an amount

23 below the minimum funding level.

24 ‘‘(ii) GRANT DETERMINATION.—The

25 amount of a grant that a State is eligible to
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1 apply for under this subparagraph shall be the

2 amount determined under clause (i), subject to

3 any modifications required under clause (iii),

4 and shall be based on the amount available for

5 the fiscal year in which performance of the

6 grant commences, but not including amounts

7 distributed in accordance with clause (iv). The

8 amount of a grant received by a State under

9 any provision of this subparagraph shall not ex10 ceed the amount of matching funds from

11 sources other than the Federal Government, as

12 required under subparagraph (A).

13 ‘‘(iii) MINIMUM FUNDING LEVEL.—The

14 amount of the minimum funding level for each

15 State shall be determined for each fiscal year

16 based on the amount made available for that

17 fiscal year to carry out this section, as follows:

18 ‘‘(I) If the amount made available is

19 not less than $81,500,000 and not more

20 than $90,000,000, the minimum funding

21 level shall be $500,000.

22 ‘‘(II) If the amount made available is

23 less than $81,500,000, the minimum fund24 ing level shall be the remainder of

25 $500,000 minus a percentage of $500,000
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1 equal to the percentage amount by which

2 the amount made available is less than

3 $81,500,000.

4 ‘‘(III) If the amount made available is

5 more than $90,000,000, the minimum

6 funding level shall be the sum of $500,000

7 plus a percentage of $500,000 equal to the

8 percentage amount by which the amount

9 made available exceeds $90,000,000.

10 ‘‘(iv) DISTRIBUTIONS.—Subject to clause

11 (iii), if any State does not apply for, or use, its

12 full funding eligibility for a fiscal year, the Ad13 ministration shall distribute the remaining

14 funds as follows:

15 ‘‘(I) If the grant to any State is less

16 than the amount received by that State in

17 fiscal year 2000, the Administration shall

18 distribute such remaining funds, on a pro

19 rata basis, based on the percentage of

20 shortage of each such State, as compared

21 to the total amount of such remaining

22 funds available, to the extent necessary in

23 order to increase the amount of the grant

24 to the amount received by that State in
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1 2000, or until such funds are exhausted,

2 whichever first occurs.

3 ‘‘(II) If any funds remain after the

4 application of subclause (I), the remaining

5 amount may be distributed as supple6 mental grants to any State, as the Admin7 istration determines, in its discretion, to be

8 appropriate, after consultation with the as9 sociation referred to in subsection

10 (a)(3)(A).

11 ‘‘(v) USE OF AMOUNTS.—

12 ‘‘(I) IN GENERAL.—Of the amounts

13 made available in any fiscal year to carry

14 out this section—

15 ‘‘(aa) not more than $500,000

16 may be used by the Administration to

17 pay expenses enumerated in subpara18 graphs (B) through (D) of section

19 20(a)(1); and

20 ‘‘(bb) not more than $500,000

21 may be used by the Administration to

22 pay the examination expenses enumer23 ated in section 20(a)(1)(E).

24 ‘‘(II) LIMITATION.—No funds de25 scribed in subclause (I) may be used for
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1 examination expenses under section

2 20(a)(1)(E) if the usage would reduce the

3 amount of grants made available under

4 clause (i)(I) to less than $85,000,000

5 (after excluding any amounts provided in

6 appropriations Acts for specific institutions

7 or for purposes other than the general

8 small business development center pro9 gram) or would further reduce the amount

10 of such grants below such amount.

11 ‘‘(vi) EXCLUSIONS.—Grants provided to a

12 State by the Administration or another Federal

13 agency to carry out subsection (c)(3)(G) or

14 (a)(6) or supplemental grants set forth in

15 clause (iv)(II) of this subparagraph, shall not

16 be included in the calculation of maximum

17 funding for a State under clause (ii) of this

18 subparagraph.

19 ‘‘(vii) AUTHORIZATION OF APPROPRIA20 TIONS.—There is authorized to be appropriated

21 to carry out this subparagraph $125,000,000

22 for each of fiscal years 2001, 2002, and 2003.

23 ‘‘(viii) STATE DEFINED.—In this subpara24 graph, the term ‘State’ means each of the sev25 eral States, the District of Columbia, the Com-
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1 monwealth of Puerto Rico, the Virgin Islands,

2 Guam, American Samoa, the Commonwealth of

3 the Northern Mariana Islands, and any other

4 commonwealth, territory, or possession of the

5 United States.’’.

6 SEC. 606. SURETY BONDS.

7 (a) CONTRACT AMOUNTS.—Section 411 of the Small

8 Business Investment Act of 1958 (15 U.S.C. 694b) is

9 amended—

10 (1) in subsection (a)(1), by striking

11 ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’; and

12 (2) in subsection (e)(2), by striking

13 ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’.

14 (b) EXTENSION OF CERTAIN AUTHORITY.—Section

15 207 of the Small Business Administration Reauthorization

16 and Amendment Act of 1988 (15 U.S.C. 694b note) is

17 amended by striking ‘‘2000’’ and inserting ‘‘2003’’.

Æ