H. Res. 590

In the House of Representatives, U.S.,

September 25, 2000.

Resolved, That upon the adoption of this resolution the

House shall be considered to have taken from the Speaker’s

table the bill H.R. 2392, with the amendment of the Senate

thereto, and to have concurred in the amendment of the Senate with an amendment as follows:

In lieu of the matter proposed to be inserted by the

amendment of the Senate, insert the following:

1 SECTION 1. TABLE OF CONTENTS.

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

Sec. 1. Table of contents.

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
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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.

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’’.
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1 SEC. 102. FINDINGS.

2 Congress finds that—

3 (1) the small business innovation research pro4 gram established under the Small Business Innova5 tion Development Act of 1982, and reauthorized by

6 the Small Business Research and Development En7 hancement Act of 1992 (in this Act referred to as

8 the ‘‘SBIR program’’) is highly successful in involv9 ing small businesses in federally funded research

10 and development;

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

12 and unique research and development capabilities

13 possessed by the small businesses of the Nation

14 available to Federal agencies and departments;

15 (3) the innovative goods and services developed

16 by small businesses that participated in the SBIR

17 program have produced innovations of critical impor18 tance in a wide variety of high-technology fields, in19 cluding biology, medicine, education, and defense;

20 (4) the SBIR program is a catalyst in the pro21 motion of research and development, the commer22 cialization of innovative technology, the development

23 of new products and services, and the continued ex24 cellence of this Nation’s high-technology industries;

25 and
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1 (5) the continuation of the SBIR program will

2 provide expanded opportunities for one of the Na3 tion’s vital resources, its small businesses, will foster

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

5 and will increase this Nation’s competitiveness in

6 international markets.

7 SEC. 103. EXTENSION OF SBIR PROGRAM.

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

9 638(m)) is amended to read as follows:

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

11 the Small Business Innovation Research Program estab12 lished under this section shall terminate on September 30,

13 2008.’’.

14 SEC. 104. ANNUAL REPORT.

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

16 638(b)(7)) is amended by striking ‘‘and the Committee on

17 Small Business of the House of Representatives’’ and in18 serting ‘‘, and to the Committee on Science and the Com19 mittee on Small Business of the House of Representa20 tives,’’.

21 SEC. 105. THIRD PHASE ASSISTANCE.

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

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

24 and inserting ‘‘; or’’.
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1 SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORM2 ANCE PLAN.

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

4 638(g)) is amended—

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

6 end;

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

8 the end and inserting a semicolon; and

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

10 paragraph:

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

12 plan as required by subsections (a) and (b) of sec13 tion 1115 of title 31, United States Code, a section

14 on its SBIR program, and shall submit such section

15 to the Committee on Small Business of the Senate,

16 and the Committee on Science and the Committee

17 on Small Business of the House of Representatives;

18 and’’.

19 SEC. 107. OUTPUT AND OUTCOME DATA.

20 (a) COLLECTION.—Section 9(g) of the Small Busi21 ness Act (15 U.S.C. 638(g)), as amended by section 106

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

23 following new paragraph:

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

25 in accordance with subsection (v), such information

26 from awardees as is necessary to assess the SBIR
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1 program, including information necessary to main2 tain the database described in subsection (k).’’.

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

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

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

6 before the period at the end ‘‘, including the data on out7 put and outcomes collected pursuant to subsections

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

9 which Federal agencies are providing in a timely manner

10 information needed to maintain the database described in

11 subsection (k)’’.

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

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

14 ‘‘(k) DATABASE.—

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

16 days after the date of enactment of the Small Busi17 ness Innovation Research Program Reauthorization

18 Act of 2000, the Administrator shall develop, main19 tain, and make available to the public a searchable,

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

21 ‘‘(A) the name, size, location, and an iden22 tifying number assigned by the Administrator,

23 of each small business concern that has received

24 a first phase or second phase SBIR award from

25 a Federal agency;
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1 ‘‘(B) a description of each first phase or

2 second phase SBIR award received by that

3 small business concern, including—

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

5 by the award, excluding any proprietary in6 formation so identified by the small busi7 ness concern;

8 ‘‘(ii) the Federal agency making the

9 award; and

10 ‘‘(iii) the date and amount of the

11 award;

12 ‘‘(C) an identification of any business con13 cern or subsidiary established for the commer14 cial application of a product or service for

15 which an SBIR award is made; and

16 ‘‘(D) information regarding mentors and

17 Mentoring Networks, as required by section

18 35(d).

19 ‘‘(2) GOVERNMENT DATABASE.—Not later than

20 180 days after the date of enactment of the Small

21 Business Innovation Research Program Reauthoriza22 tion Act of 2000, the Administrator, in consultation

23 with Federal agencies required to have an SBIR

24 program pursuant to subsection (f)(1), shall develop
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1 and maintain a database to be used solely for SBIR

2 program evaluation that—

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

4 made by a Federal agency—

5 ‘‘(i) information collected in accord6 ance with paragraph (3) on revenue from

7 the sale of new products or services result8 ing from the research conducted under the

9 award;

10 ‘‘(ii) information collected in accord11 ance with paragraph (3) on additional in12 vestment from any source, other than first

13 phase or second phase SBIR or STTR

14 awards, to further the research and devel15 opment conducted under the award; and

16 ‘‘(iii) any other information received

17 in connection with the award that the Ad18 ministrator, in conjunction with the SBIR

19 program managers of Federal agencies,

20 considers relevant and appropriate;

21 ‘‘(B) includes any narrative information

22 that a small business concern receiving a second

23 phase award voluntarily submits to further de24 scribe the outputs and outcomes of its awards;
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1 ‘‘(C) includes for each applicant for a first

2 phase or second phase award that does not re3 ceive such an award—

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

5 an identifying number assigned by the Ad6 ministration;

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

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

9 application was made;

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

11 or available to any Federal agency that such

12 agency considers may be useful for SBIR pro13 gram evaluation; and

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

15 evaluation purposes by the Federal Government

16 or, in accordance with policy directives issued

17 by the Administration, by other authorized per18 sons who are subject to a use and nondisclosure

19 agreement with the Federal Government cov20 ering the use of the database.

21 ‘‘(3) UPDATING INFORMATION FOR DATA22 BASE.—

23 ‘‘(A) IN GENERAL.—A small business con24 cern applying for a second phase award under

25 this section shall be required to update informa-
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1 tion in the database established under this sub2 section for any prior second phase award re3 ceived by that small business concern. In com4 plying with this paragraph, a small business

5 concern may apportion sales or additional in6 vestment information relating to more than one

7 second phase award among those awards, if it

8 notes the apportionment for each award.

9 ‘‘(B) ANNUAL UPDATES UPON TERMI10 NATION.—A small business concern receiving a

11 second phase award under this section shall—

12 ‘‘(i) update information in the data13 base concerning that award at the termi14 nation of the award period; and

15 ‘‘(ii) be requested to voluntarily up16 date such information annually thereafter

17 for a period of 5 years.

18 ‘‘(4) PROTECTION OF INFORMATION.—Informa19 tion provided under paragraph (2) shall be consid20 ered privileged and confidential and not subject to

21 disclosure pursuant to section 552 of title 5, United

22 States Code.

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

24 information in the database under this subsection

25 shall not be considered to be publication for pur-
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1 poses of subsection (a) or (b) of section 102 of title

2 35, United States Code.’’.

3 SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.

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

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

6 its SBIR program for fiscal year 1999, in consultation

7 with the Small Business Administration, shall, not later

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

9 cooperatively enter into an agreement with the National

10 Academy of Sciences for the National Research Council

11 to—

12 (1) conduct a comprehensive study of how the

13 SBIR program has stimulated technological innova14 tion and used small businesses to meet Federal re15 search and development needs, including—

16 (A) a review of the value to the Federal re17 search agencies of the research projects being

18 conducted under the SBIR program, and of the

19 quality of research being conducted by small

20 businesses participating under the program, in21 cluding a comparison of the value of projects

22 conducted under the SBIR program to those

23 funded by other Federal research and develop24 ment expenditures;
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1 (B) to the extent practicable, an evaluation

2 of the economic benefits achieved by the SBIR

3 program, including the economic rate of return,

4 and a comparison of the economic benefits, in5 cluding the economic rate of return, achieved by

6 the SBIR program with the economic benefits,

7 including the economic rate of return, of other

8 Federal research and development expenditures;

9 (C) an evaluation of the noneconomic bene10 fits achieved by the SBIR program over the life

11 of the program;

12 (D) a comparison of the allocation for fis13 cal year 2000 of Federal research and develop14 ment funds to small businesses with such allo15 cation for fiscal year 1983, and an analysis of

16 the factors that have contributed to such alloca17 tion; and

18 (E) an analysis of whether Federal agen19 cies, in fulfilling their procurement needs, are

20 making sufficient effort to use small businesses

21 that have completed a second phase award

22 under the SBIR program; and

23 (2) make recommendations with respect to—

24 (A) measures of outcomes for strategic

25 plans submitted under section 306 of title 5,
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1 United States Code, and performance plans

2 submitted under section 1115 of title 31,

3 United States Code, of each Federal agency

4 participating in the SBIR program;

5 (B) whether companies who can dem6 onstrate project feasibility, but who have not re7 ceived a first phase award, should be eligible for

8 second phase awards, and the potential impact

9 of such awards on the competitive selection

10 process of the program;

11 (C) whether the Federal Government

12 should be permitted to recoup some or all of its

13 expenses if a controlling interest in a company

14 receiving an SBIR award is sold to a foreign

15 company or to a company that is not a small

16 business concern;

17 (D) how to increase the use by the Federal

18 Government in its programs and procurements

19 of technology-oriented small businesses; and

20 (E) improvements to the SBIR program, if

21 any are considered appropriate.

22 (b) PARTICIPATION BY SMALL BUSINESS.—

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

24 law and with National Research Council study

25 guidelines and procedures, knowledgeable individuals
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1 from the small business community with experience

2 in the SBIR program shall be included—

3 (A) in any panel established by the Na4 tional Research Council for the purpose of per5 forming the study conducted under this section;

6 and

7 (B) among those who are asked by the Na8 tional Research Council to peer review the

9 study.

10 (2) CONSULTATION.—To ensure that the con11 cerns of small business are appropriately considered

12 under this subsection, the National Research Council

13 shall consult with and consider the views of the Of14 fice of Technology and the Office of Advocacy of the

15 Small Business Administration and other interested

16 parties, including entities, organizations, and indi17 viduals actively engaged in enhancing or developing

18 the technological capabilities of small business con19 cerns.

20 (c) PROGRESS REPORTS.—The National Research

21 Council shall provide semiannual progress reports on the

22 study conducted under this section to the Committee on

23 Science and the Committee on Small Business of the

24 House of Representatives, and to the Committee on Small

25 Business of the Senate.
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1 (d) REPORT.—The National Research Council shall

2 transmit to the heads of agencies entering into an agree3 ment under this section and to the Committee on Science

4 and the Committee on Small Business of the House of

5 Representatives, and to the Committee on Small Business

6 of the Senate—

7 (1) not later than 3 years after the date of en8 actment of this Act, a report including the results of

9 the study conducted under subsection (a)(1) and rec10 ommendations made under subsection (a)(2); and

11 (2) not later than 6 years after that date of en12 actment, an update of such report.

13 SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR

14 PROGRAM.

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

16 638(i)) is amended—

17 (1) by striking ‘‘(i) Each Federal’’ and insert18 ing the following:

19 ‘‘(i) ANNUAL REPORTING.—

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

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

22 ‘‘(2) CALCULATION OF EXTRAMURAL BUDG23 ET.—

24 ‘‘(A) METHODOLOGY.—Not later than 4

25 months after the date of enactment of each ap-
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1 propriations Act for a Federal agency required

2 by this section to have an SBIR program, the

3 Federal agency shall submit to the Adminis4 trator a report, which shall include a descrip5 tion of the methodology used for calculating the

6 amount of the extramural budget of that Fed7 eral agency.

8 ‘‘(B) ADMINISTRATOR’S ANALYSIS.—The

9 Administrator shall include an analysis of the

10 methodology received from each Federal agency

11 referred to in subparagraph (A) in the report

12 required by subsection (b)(7).’’.

13 SEC. 110. POLICY DIRECTIVE MODIFICATIONS.

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

15 638(j)) is amended by adding at the end the following:

16 ‘‘(3) ADDITIONAL MODIFICATIONS.—Not later

17 than 120 days after the date of enactment of the

18 Small Business Innovation Research Program Reau19 thorization Act of 2000, the Administrator shall

20 modify the policy directives issued pursuant to this

21 subsection—

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

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

24 funding awards under this section, including

25 the first phase (as described in subsection
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1 (e)(4)(A)), the second phase (as described in

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

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

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

5 succinct commercialization plan with each appli6 cation for a second phase award that is moving

7 toward commercialization;

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

9 Administration, not less frequently than annu10 ally, all instances in which an agency pursued

11 research, development, or production of a tech12 nology developed by a small business concern

13 using an award made under the SBIR program

14 of that agency, and determined that it was not

15 practicable to enter into a follow-on non-SBIR

16 program funding agreement with the small

17 business concern, which report shall include, at

18 a minimum—

19 ‘‘(i) the reasons why the follow-on

20 funding agreement with the small business

21 concern was not practicable;

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

23 which the agency contracted to perform

24 the research, development, or production;

25 and
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1 ‘‘(iii) a description of the type of

2 funding agreement under which the re3 search, development, or production was ob4 tained; and

5 ‘‘(D) to implement subsection (v), includ6 ing establishing standardized procedures for the

7 provision of information pursuant to subsection

8 (k)(3).’’.

9 SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNER10 SHIP PROGRAM.

11 (a) FINDINGS.—Congress finds that—

12 (1) programs to foster economic development

13 among small high-technology firms vary widely

14 among the States;

15 (2) States that do not aggressively support the

16 development of small high-technology firms, includ17 ing participation by small business concerns in the

18 SBIR program, are at a competitive disadvantage in

19 establishing a business climate that is conducive to

20 technology development; and

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

22 support for science and technology research in these

23 disadvantaged States will expand economic opportu24 nities in the United States, create jobs, and increase
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1 the competitiveness of the United States in the

2 world market.

3 (b) FEDERAL AND STATE TECHNOLOGY PARTNER4 SHIP PROGRAM.—The Small Business Act (15 U.S.C. 631

5 et seq.) is amended—

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

7 and

8 (2) by inserting after section 33 the following

9 new section:

10 ‘‘SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNER11 SHIP PROGRAM.

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

13 the following definitions apply:

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

15 an entity, organization, or individual that submits a

16 proposal for an award or a cooperative agreement

17 under this section.

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

19 The term ‘business advice and counseling’ means

20 providing advice and assistance on matters described

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

22 guide them through the SBIR and STTR program

23 process, from application to award and successful

24 completion of each phase of the program.
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1 ‘‘(3) FAST PROGRAM.—The term ‘FAST pro2 gram’ means the Federal and State Technology

3 Partnership Program established under this section.

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

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

6 ‘‘(5) MENTORING NETWORK.—The term ‘Men7 toring Network’ means an association, organization,

8 coalition, or other entity (including an individual)

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

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

11 person that receives an award or becomes party to

12 a cooperative agreement under this section.

13 ‘‘(7) SBIR PROGRAM.—The term ‘SBIR pro14 gram’ has the same meaning as in section 9(e)(4).

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

16 the several States, the District of Columbia, the

17 Commonwealth of Puerto Rico, the Virgin Islands,

18 Guam, and American Samoa.

19 ‘‘(9) STTR PROGRAM.—The term ‘STTR pro20 gram’ has the same meaning as in section 9(e)(6).

21 ‘‘(b) ESTABLISHMENT OF PROGRAM.—The Adminis22 trator shall establish a program to be known as the Fed23 eral and State Technology Partnership Program, the pur24 pose of which shall be to strengthen the technological com25 petitiveness of small business concerns in the States.
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1 ‘‘(c) GRANTS AND COOPERATIVE AGREEMENTS.—

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

3 FAST program under this section, the Adminis4 trator and the SBIR program managers at the Na5 tional Science Foundation and the Department of

6 Defense shall jointly review proposals submitted by

7 applicants and may make awards or enter into coop8 erative agreements under this section based on the

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

10 in order to enhance or develop in a State—

11 ‘‘(A) technology research and development

12 by small business concerns;

13 ‘‘(B) technology transfer from university

14 research to technology-based small business

15 concerns;

16 ‘‘(C) technology deployment and diffusion

17 benefiting small business concerns;

18 ‘‘(D) the technological capabilities of small

19 business concerns through the establishment or

20 operation of consortia comprised of entities, or21 ganizations, or individuals, including—

22 ‘‘(i) State and local development agen23 cies and entities;

24 ‘‘(ii) representatives of technology25 based small business concerns;
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1 ‘‘(iii) industries and emerging compa2 nies;

3 ‘‘(iv) universities; and

4 ‘‘(v) small business development cen5 ters; and

6 ‘‘(E) outreach, financial support, and tech7 nical assistance to technology-based small busi8 ness concerns participating in or interested in

9 participating in an SBIR program, including

10 initiatives—

11 ‘‘(i) to make grants or loans to com12 panies to pay a portion or all of the cost

13 of developing SBIR proposals;

14 ‘‘(ii) to establish or operate a Men15 toring Network within the FAST program

16 to provide business advice and counseling

17 that will assist small business concerns

18 that have been identified by FAST pro19 gram participants, program managers of

20 participating SBIR agencies, the Adminis21 tration, or other entities that are knowl22 edgeable about the SBIR and STTR pro23 grams as good candidates for the SBIR

24 and STTR programs, and that would ben-
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1 efit from mentoring, in accordance with

2 section 35;

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

4 training program for individuals providing

5 SBIR outreach and assistance at the State

6 and local levels; and

7 ‘‘(iv) to encourage the commercializa8 tion of technology developed through SBIR

9 program funding.

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

11 awards or entering into cooperative agreements

12 under this section, the Administrator and the SBIR

13 program managers referred to in paragraph (1)—

14 ‘‘(A) may only consider proposals by appli15 cants that intend to use a portion of the Fed16 eral assistance provided under this section to

17 provide outreach, financial support, or technical

18 assistance to technology-based small business

19 concerns participating in or interested in par20 ticipating in the SBIR program; and

21 ‘‘(B) shall consider, at a minimum—

22 ‘‘(i) whether the applicant has dem23 onstrated that the assistance to be pro24 vided would address unmet needs of small

25 business concerns in the community, and
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1 whether it is important to use Federal

2 funding for the proposed activities;

3 ‘‘(ii) whether the applicant has dem4 onstrated that a need exists to increase the

5 number or success of small high-technology

6 businesses in the State, as measured by

7 the number of first phase and second

8 phase SBIR awards that have historically

9 been received by small business concerns in

10 the State;

11 ‘‘(iii) whether the projected costs of

12 the proposed activities are reasonable;

13 ‘‘(iv) whether the proposal integrates

14 and coordinates the proposed activities

15 with other State and local programs assist16 ing small high-technology firms in the

17 State; and

18 ‘‘(v) the manner in which the appli19 cant will measure the results of the activi20 ties to be conducted.

21 ‘‘(3) PROPOSAL LIMIT.—Not more than 1 pro22 posal may be submitted for inclusion in the FAST

23 program under this section to provide services in any

24 one State in any 1 fiscal year.
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1 ‘‘(4) PROCESS.—Proposals and applications for

2 assistance under this section shall be in such form

3 and subject to such procedures as the Administrator

4 shall establish.

5 ‘‘(d) COOPERATION AND COORDINATION.—In car6 rying out the FAST program under this section, the Ad7 ministrator shall cooperate and coordinate with—

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

9 have an SBIR program; and

10 ‘‘(2) entities, organizations, and individuals ac11 tively engaged in enhancing or developing the tech12 nological capabilities of small business concerns,

13 including—

14 ‘‘(A) State and local development agencies

15 and entities;

16 ‘‘(B) State committees established under

17 the Experimental Program to Stimulate Com18 petitive Research of the National Science Foun19 dation (as established under section 113 of the

20 National Science Foundation Authorization Act

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

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

23 and

24 ‘‘(D) representatives of technology-based

25 small business concerns.
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1 ‘‘(e) ADMINISTRATIVE REQUIREMENTS.—

2 ‘‘(1) COMPETITIVE BASIS.—Awards and cooper3 ative agreements under this section shall be made or

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

5 ‘‘(2) MATCHING REQUIREMENTS.—

6 ‘‘(A) IN GENERAL.—The non-Federal

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

8 planning activity) carried out using an award or

9 under a cooperative agreement under this sec10 tion shall be—

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

12 in the case of a recipient that will serve

13 small business concerns located in one of

14 the 18 States receiving the fewest SBIR

15 first phase awards (as described in section

16 9(e)(4)(A));

17 ‘‘(ii) except as provided in subpara18 graph (B), 1 dollar for each Federal dollar,

19 in the case of a recipient that will serve

20 small business concerns located in one of

21 the 16 States receiving the greatest num22 ber of such SBIR first phase awards; and

23 ‘‘(iii) except as provided in subpara24 graph (B), 75 cents for each Federal dol25 lar, in the case of a recipient that will
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1 serve small business concerns located in a

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

3 (ii) that is receiving such SBIR first phase

4 awards.

5 ‘‘(B) LOW-INCOME AREAS.—The non-Fed6 eral share of the cost of the activity carried out

7 using an award or under a cooperative agree8 ment under this section shall be 50 cents for

9 each Federal dollar that will be directly allo10 cated by a recipient described in subparagraph

11 (A) to serve small business concerns located in

12 a qualified census tract, as that term is defined

13 in section 42(d)(5)(C)(ii) of the Internal Rev14 enue Code of 1986. Federal dollars not so allo15 cated by that recipient shall be subject to the

16 matching requirements of subparagraph (A).

17 ‘‘(C) TYPES OF FUNDING.—The non-Fed18 eral share of the cost of an activity carried out

19 by a recipient shall be comprised of not less

20 than 50 percent cash and not more than 50

21 percent of indirect costs and in-kind contribu22 tions, except that no such costs or contributions

23 may be derived from funds from any other Fed24 eral program.
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1 ‘‘(D) RANKINGS.—For purposes of sub2 paragraph (A), the Administrator shall reevalu3 ate the ranking of a State once every 2 fiscal

4 years, beginning with fiscal year 2001, based on

5 the most recent statistics compiled by the Ad6 ministrator.

7 ‘‘(3) DURATION.—Awards may be made or co8 operative agreements entered into under this section

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

10 ‘‘(f) REPORTS.—

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

12 days after the date of enactment of the Small Busi13 ness Innovation Research Program Reauthorization

14 Act of 2000, the Administrator shall prepare and

15 submit to the Committee on Small Business of the

16 Senate and the Committee on Science and the Com17 mittee on Small Business of the House of Rep18 resentatives a report, which shall include, with re19 spect to the FAST program, including Mentoring

20 Networks—

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

22 procedures of the program;

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

24 and
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1 ‘‘(C) a description of the merit-based re2 view process to be used in the program.

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

4 shall submit an annual report to the Committee on

5 Small Business of the Senate and the Committee on

6 Science and the Committee on Small Business of the

7 House of Representatives regarding—

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

9 provided and cooperative agreements entered

10 into under the FAST program during the pre11 ceding year;

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

13 including their location and the activities being

14 performed with the awards made or under the

15 cooperative agreements entered into; and

16 ‘‘(C) the Mentoring Networks and the

17 mentoring database, as provided for under sec18 tion 35, including—

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

20 mentoring information in the database re21 quired by section 9(k); and

22 ‘‘(ii) the status of the implementation

23 and description of the usage of the Men24 toring Networks.

25 ‘‘(g) REVIEWS BY INSPECTOR GENERAL.—
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1 ‘‘(1) IN GENERAL.—The Inspector General of

2 the Administration shall conduct a review of—

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

4 the FAST program are measuring the perform5 ance of the activities being conducted and the

6 results of such measurements; and

7 ‘‘(B) the overall management and effective8 ness of the FAST program.

9 ‘‘(2) REPORT.—During the first quarter of fis10 cal year 2004, the Inspector General of the Adminis11 tration shall submit a report to the Committee on

12 Small Business of the Senate and the Committee on

13 Science and the Committee on Small Business of the

14 House of Representatives on the review conducted

15 under paragraph (1).

16 ‘‘(h) PROGRAM LEVELS.—

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

18 appropriated to carry out the FAST program, in19 cluding Mentoring Networks, under this section and

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

21 2001 through 2005.

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

23 amount made available under paragraph (1) for fis24 cal years 2001 through 2005, a reasonable amount,
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•HRES 590 EH

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

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

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

4 FAST program under this section shall terminate on Sep5 tember 30, 2005.’’.

6 (c) COORDINATION OF TECHNOLOGY DEVELOPMENT

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

8 U.S.C. 638) is amended by adding at the end the fol9 lowing:

10 ‘‘(u) COORDINATION OF TECHNOLOGY DEVELOP11 MENT PROGRAMS.—

12 ‘‘(1) DEFINITION OF TECHNOLOGY DEVELOP13 MENT PROGRAM.—In this subsection, the term ‘tech14 nology development program’ means—

15 ‘‘(A) the Experimental Program to Stimu16 late Competitive Research of the National

17 Science Foundation, as established under sec18 tion 113 of the National Science Foundation

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

20 ‘‘(B) the Defense Experimental Program

21 to Stimulate Competitive Research of the De22 partment of Defense;

23 ‘‘(C) the Experimental Program to Stimu24 late Competitive Research of the Department of

25 Energy;
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1 ‘‘(D) the Experimental Program to Stimu2 late Competitive Research of the Environmental

3 Protection Agency;

4 ‘‘(E) the Experimental Program to Stimu5 late Competitive Research of the National Aero6 nautics and Space Administration;

7 ‘‘(F) the Institutional Development Award

8 Program of the National Institutes of Health;

9 and

10 ‘‘(G) the National Research Initiative

11 Competitive Grants Program of the Department

12 of Agriculture.

13 ‘‘(2) COORDINATION REQUIREMENTS.—Each

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

15 that has established a technology development pro16 gram may, in each fiscal year, review for funding

17 under that technology development program—

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

19 assistance to 1 or more small business concerns

20 interested in participating in the SBIR pro21 gram, including any proposal to make a grant

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

23 the cost of developing an SBIR proposal, from

24 an entity, organization, or individual located

25 in—
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1 ‘‘(i) a State that is eligible to partici2 pate in that program; or

3 ‘‘(ii) a State described in paragraph

4 (3); or

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

6 the SBIR program, if the proposal, though mer7 itorious, is not funded through the SBIR pro8 gram for that fiscal year due to funding re9 straints, from a small business concern located

10 in—

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

13 or

14 ‘‘(ii) a State described in paragraph

15 (3).

16 ‘‘(3) ADDITIONALLY ELIGIBLE STATE.—A State

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

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

19 contracts awarded to small business concerns under

20 all SBIR programs is less than the total value of

21 contracts awarded to small business concerns in a

22 majority of other States, as determined by the Ad23 ministrator in biennial fiscal years, beginning with

24 fiscal year 2000, based on the most recent statistics

25 compiled by the Administrator.’’.
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1 SEC. 112. MENTORING NETWORKS.

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

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

4 111(b)(2) of this Act, the following new section:

5 ‘‘SEC. 35. MENTORING NETWORKS.

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

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

8 jobs, increase capacity for technological innovation,

9 and boost international competitiveness;

10 ‘‘(2) increasing the quantity of applications

11 from all States to the SBIR and STTR programs

12 would enhance competition for such awards and the

13 quality of the completed projects; and

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

15 FAST program of reaching out to new companies

16 regarding the SBIR and STTR programs as an ef17 fective and low-cost way to improve the likelihood

18 that such companies will succeed in such programs

19 in developing and commercializing their research.

20 ‘‘(b) AUTHORIZATION FOR MENTORING NET21 WORKS.—The recipient of an award or participant in a

22 cooperative agreement under section 34 may use a reason23 able amount of such assistance for the establishment of

24 a Mentoring Network under this section.
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1 ‘‘(c) CRITERIA FOR MENTORING NETWORKS.—A

2 Mentoring Network established using assistance under

3 section 34 shall—

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

5 high technology small business concerns located in

6 the State or region served by the Mentoring Net7 work and identified under section 34(c)(1)(E)(ii) as

8 potential candidates for the SBIR or STTR pro9 grams;

10 ‘‘(2) identify volunteer mentors who—

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

12 business concern that has successfully com13 pleted one or more SBIR or STTR funding

14 agreements; and

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

16 concerns through all stages of the SBIR or

17 STTR program process, including providing as18 sistance relating to—

19 ‘‘(i) proposal writing;

20 ‘‘(ii) marketing;

21 ‘‘(iii) Government accounting;

22 ‘‘(iv) Government audits;

23 ‘‘(v) project facilities and equipment;

24 ‘‘(vi) human resources;

25 ‘‘(vii) third phase partners;
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•HRES 590 EH

1 ‘‘(viii) commercialization;

2 ‘‘(ix) venture capital networking; and

3 ‘‘(x) other matters relevant to the

4 SBIR and STTR programs;

5 ‘‘(3) have experience working with small busi6 ness concerns participating in the SBIR and STTR

7 programs;

8 ‘‘(4) contribute information to the national

9 database referred to in subsection (d); and

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

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

12 under this section.

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

14 shall—

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

16 9(k)(1), in cooperation with the SBIR, STTR, and

17 FAST programs, information on Mentoring Net18 works and mentors participating under this section,

19 including a description of their areas of expertise;

20 ‘‘(2) work cooperatively with Mentoring Net21 works to maintain and update the database;

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

23 aggressively promote Mentoring Networks under this

24 section; and
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•HRES 590 EH

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

2 either directly or by contract.’’.

3 SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.

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

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

6 at the end the following new subsection:

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

8 Administrator shall work with the Federal agencies re9 quired by this section to have an SBIR program to stand10 ardize reporting requirements for the collection of data

11 from SBIR applicants and awardees, including data for

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

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

14 extent possible, permitting the updating of previously re15 ported information by electronic means. Such require16 ments shall be designed to minimize the burden on small

17 businesses.’’.

18 SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.

19 (a) EXTENSION OF TERMINATION DATE.—Section

20 501(b)(2) of the Small Business Reauthorization Act of

21 1997 (15 U.S.C. 638 note; 111 Stat. 2622) is amended

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

23 (b) EXTENSION OF AUTHORIZATION OF APPROPRIA24 TIONS.—Section 9(s)(2) of the Small Business Act (15

25 U.S.C. 638(s)(2)) is amended by striking ‘‘for fiscal year
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•HRES 590 EH

1 1998, 1999, 2000, or 2001’’ and inserting ‘‘for each of

2 the fiscal years 2000 through 2005,’’.

3 TITLE II—GENERAL BUSINESS

4 LOAN PROGRAM

5 SEC. 201. SHORT TITLE.

6 This title may be cited as the ‘‘Small Business Gen7 eral Business Loan Improvement Act of 2000’’.

8 SEC. 202. LEVELS OF PARTICIPATION.

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

10 U.S.C. 636(a)(2)(A)) is amended—

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

12 and inserting ‘‘$150,000’’; and

13 (2) in paragraph (ii)—

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

15 ‘‘85 percent’’; and

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

17 ‘‘$150,000’’.

18 SEC. 203. LOAN AMOUNTS.

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

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

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

22 would exceed $2,000,000),’’.
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1 SEC. 204. INTEREST ON DEFAULTED LOANS.

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

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

4 at the end the following:

5 ‘‘(iii) APPLICABILITY.—Clauses (i)

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

7 or after October 1, 2000.’’.

8 SEC. 205. PREPAYMENT OF LOANS.

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

10 636(a)(4)) is further amended—

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

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

13 PREPAYMENT CHARGES.—’’; and

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

15 ‘‘(C) PREPAYMENT CHARGES.—

16 ‘‘(i) IN GENERAL.—A borrower who

17 prepays any loan guaranteed under this

18 subsection shall remit to the Administra19 tion a subsidy recoupment fee calculated in

20 accordance with clause (ii) if—

21 ‘‘(I) the loan is for a term of not

22 less than 15 years;

23 ‘‘(II) the prepayment is vol24 untary;

25 ‘‘(III) the amount of prepayment

26 in any calendar year is more than 25
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•HRES 590 EH

1 percent of the outstanding balance of

2 the loan; and

3 ‘‘(IV) the prepayment is made

4 within the first 3 years after disburse5 ment of the loan proceeds.

6 ‘‘(ii) SUBSIDY RECOUPMENT FEE.—

7 The subsidy recoupment fee charged under

8 clause (i) shall be—

9 ‘‘(I) 5 percent of the amount of

10 prepayment, if the borrower prepays

11 during the first year after disburse12 ment;

13 ‘‘(II) 3 percent of the amount of

14 prepayment, if the borrower prepays

15 during the second year after disburse16 ment; and

17 ‘‘(III) 1 percent of the amount of

18 prepayment, if the borrower prepays

19 during the third year after disburse20 ment.’’.

21 SEC. 206. GUARANTEE FEES.

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

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

24 ‘‘(B) EXCEPTION FOR CERTAIN LOANS.—
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1 ‘‘(i) IN GENERAL.—Notwithstanding

2 subparagraph (A), if the total deferred

3 participation share of a loan guaranteed

4 under this subsection is less than or equal

5 to $150,000, the guarantee fee collected

6 under subparagraph (A) shall be in an

7 amount equal to 2 percent of the total de8 ferred participation share of the loan.

9 ‘‘(ii) RETENTION OF FEES.—Lenders

10 participating in the programs established

11 under this subsection may retain not more

12 than 25 percent of the fee collected in ac13 cordance with this subparagraph with re14 spect to any loan not exceeding $150,000

15 in gross loan amount.’’.

16 SEC. 207. LEASE TERMS.

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

18 636(a)) is further amended by adding at the end the fol19 lowing:

20 ‘‘(28) LEASING.—In addition to such other

21 lease arrangements as may be authorized by the Ad22 ministration, a borrower may permanently lease to

23 one or more tenants not more than 20 percent of

24 any property constructed with the proceeds of a loan

25 guaranteed under this subsection, if the borrower
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1 permanently occupies and uses not less than 60 per2 cent of the total business space in the property.’’.

3 TITLE III—CERTIFIED DEVELOP4 MENT COMPANY PROGRAM

5 SEC. 301. SHORT TITLE.

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

7 Company Program Improvements Act of 2000’’.

8 SEC. 302. WOMEN-OWNED BUSINESSES.

9 Section 501(d)(3)(C) of the Small Business Invest10 ment Act (15 U.S.C. 695(d)(3)(C)) is amended by insert11 ing before the comma ‘‘or women-owned business develop12 ment’’.

13 SEC. 303. MAXIMUM DEBENTURE SIZE.

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

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

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

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

18 such identifiable small business concern, except

19 loans meeting the criteria specified in section

20 501(d)(3), which shall be limited to $1,300,000 for

21 each such identifiable small business concern.’’.

22 SEC. 304. FEES.

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

24 of 1958 (15 U.S.C. 697(f)) is amended to read as follows:
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1 ‘‘(f) EFFECTIVE DATE.—The fees authorized by sub2 sections (b) and (d) shall apply to financings approved by

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

4 not apply to financings approved by the Administration

5 on or after October 1, 2003.’’.

6 SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.

7 Section 217(b) of the Small Business Reauthoriza8 tion and Amendments Act of 1994 (relating to section 508

9 of the Small Business Investment Act) is repealed.

10 SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.

11 Section 508 of the Small Business Investment Act

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

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

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

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

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

17 (3) in subsection (f) (as redesignated by para18 graph (2)), by striking ‘‘subsection (f)’’ and insert19 ing ‘‘subsection (g)’’;

20 (4) in subsection (h) (as redesignated by para21 graph (2)), by striking ‘‘subsection (f)’’ and insert22 ing ‘‘subsection (g)’’; and

23 (5) by inserting after subsection (c) the fol24 lowing:

25 ‘‘(d) SALE OF CERTAIN DEFAULTED LOANS.—
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•HRES 590 EH

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

2 the Administration acquires a loan guaranteed under

3 this section and identifies such loan for inclusion in

4 a bulk asset sale of defaulted or repurchased loans

5 or other financings, it shall give prior notice thereof

6 to any certified development company which has a

7 contingent liability under this section. The notice

8 shall be given to the company as soon as possible

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

10 days before the date the Administration first makes

11 any records on such financing available for examina12 tion by prospective purchasers prior to its offering in

13 a package of loans for bulk sale.

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

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

16 part of a bulk sale unless it—

17 ‘‘(A) provides prospective purchasers with

18 the opportunity to examine the Administration’s

19 records with respect to such loan; and

20 ‘‘(B) provides the notice required by para21 graph (1).’’.

22 SEC. 307. LOAN LIQUIDATION.

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

24 the Small Business Investment Act of 1958 (15 U.S.C.
45

•HRES 590 EH

1 695 et seq.) is amended by adding at the end the fol2 lowing:

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

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

5 with this section, the Administration shall delegate to any

6 qualified State or local development company (as defined

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

8 of subsection (b)(1) the authority to foreclose and liq9 uidate, or to otherwise treat in accordance with this sec10 tion, defaulted loans in its portfolio that are funded with

11 the proceeds of debentures guaranteed by the Administra12 tion under section 503.

13 ‘‘(b) ELIGIBILITY FOR DELEGATION.—

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

15 local development company shall be eligible for a del16 egation of authority under subsection (a) if—

17 ‘‘(A) the company—

18 ‘‘(i) has participated in the loan liq19 uidation pilot program established by the

20 Small Business Programs Improvement

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

22 effect on the day before promulgation of

23 final regulations by the Administration im24 plementing this section;
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1 ‘‘(ii) is participating in the Premier

2 Certified Lenders Program under section

3 508; or

4 ‘‘(iii) during the 3 fiscal years imme5 diately prior to seeking such a delegation,

6 has made an average of not less than 10

7 loans per year that are funded with the

8 proceeds of debentures guaranteed under

9 section 503; and

10 ‘‘(B) the company—

11 ‘‘(i) has one or more employees—

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

13 substantive, decision-making experi14 ence in administering the liquidation

15 and workout of problem loans secured

16 in a manner substantially similar to

17 loans funded with the proceeds of de18 bentures guaranteed under section

19 503; and

20 ‘‘(II) who have completed a train21 ing program on loan liquidation devel22 oped by the Administration in con23 junction with qualified State and local

24 development companies that meet the

25 requirements of this paragraph; or
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•HRES 590 EH

1 ‘‘(ii) submits to the Administration

2 documentation demonstrating that the

3 company has contracted with a qualified

4 third-party to perform any liquidation ac5 tivities and secures the approval of the

6 contract by the Administration with re7 spect to the qualifications of the contractor

8 and the terms and conditions of liquidation

9 activities.

10 ‘‘(2) CONFIRMATION.—On request the Adminis11 tration shall examine the qualifications of any com12 pany described in subsection (a) to determine if such

13 company is eligible for the delegation of authority

14 under this section. If the Administration determines

15 that a company is not eligible, the Administration

16 shall provide the company with the reasons for such

17 ineligibility.

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

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

20 local development company to which the Administra21 tion delegates authority under section (a) may with

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

23 ‘‘(A) perform all liquidation and fore24 closure functions, including the purchase in ac25 cordance with this subsection of any other in-
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1 debtedness secured by the property securing the

2 loan, in a reasonable and sound manner accord3 ing to commercially accepted practices, pursu4 ant to a liquidation plan approved in advance

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

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

7 performance of the functions described in sub8 paragraph (A), except that the Administration

9 may—

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

11 ‘‘(I) the outcome of the litigation

12 may adversely affect the Administra13 tion’s management of the loan pro14 gram established under section 502;

15 or

16 ‘‘(II) the Administration is enti17 tled to legal remedies not available to

18 a qualified State or local development

19 company and such remedies will ben20 efit either the Administration or the

21 qualified State or local development

22 company; or

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

24 litigation; and
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1 ‘‘(C) take other appropriate actions to

2 mitigate loan losses in lieu of total liquidation

3 or foreclosures, including the restructuring of a

4 loan in accordance with prudent loan servicing

5 practices and pursuant to a workout plan ap6 proved in advance by the Administration under

7 paragraph (2)(C).

8 ‘‘(2) ADMINISTRATION APPROVAL.—

9 ‘‘(A) LIQUIDATION PLAN.—

10 ‘‘(i) IN GENERAL.—Before carrying

11 out functions described in paragraph

12 (1)(A), a qualified State or local develop13 ment company shall submit to the Admin14 istration a proposed liquidation plan.

15 ‘‘(ii) ADMINISTRATION ACTION ON

16 PLAN.—

17 ‘‘(I) TIMING.—Not later than 15

18 business days after a liquidation plan

19 is received by the Administration

20 under clause (i), the Administration

21 shall approve or reject the plan.

22 ‘‘(II) NOTICE OF NO DECISION.—

23 With respect to any plan that cannot

24 be approved or denied within the 15-

25 day period required by subclause (I),
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1 the Administration shall within such

2 period provide in accordance with sub3 paragraph (E) notice to the company

4 that submitted the plan.

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

6 out functions described in paragraph

7 (1)(A), a qualified State or local develop8 ment company may undertake routine ac9 tions not addressed in a liquidation plan

10 without obtaining additional approval from

11 the Administration.

12 ‘‘(B) PURCHASE OF INDEBTEDNESS.—

13 ‘‘(i) IN GENERAL.—In carrying out

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

15 qualified State or local development com16 pany shall submit to the Administration a

17 request for written approval before com18 mitting the Administration to the purchase

19 of any other indebtedness secured by the

20 property securing a defaulted loan.

21 ‘‘(ii) ADMINISTRATION ACTION ON RE22 QUEST.—

23 ‘‘(I) TIMING.—Not later than 15

24 business days after receiving a request
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1 under clause (i), the Administration

2 shall approve or deny the request.

3 ‘‘(II) NOTICE OF NO DECISION.—

4 With respect to any request that can5 not be approved or denied within the

6 15-day period required by subclause

7 (I), the Administration shall within

8 such period provide in accordance

9 with subparagraph (E) notice to the

10 company that submitted the request.

11 ‘‘(C) WORKOUT PLAN.—

12 ‘‘(i) IN GENERAL.—In carrying out

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

14 qualified State or local development com15 pany shall submit to the Administration a

16 proposed workout plan.

17 ‘‘(ii) ADMINISTRATION ACTION ON

18 PLAN.—

19 ‘‘(I) TIMING.—Not later than 15

20 business days after a workout plan is

21 received by the Administration under

22 clause (i), the Administration shall

23 approve or reject the plan.

24 ‘‘(II) NOTICE OF NO DECISION.—

25 With respect to any workout plan that
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1 cannot be approved or denied within

2 the 15-day period required by sub3 clause (I), the Administration shall

4 within such period provide in accord5 ance with subparagraph (E) notice to

6 the company that submitted the plan.

7 ‘‘(D) COMPROMISE OF INDEBTEDNESS.—

8 In carrying out functions described in para9 graph (1)(A), a qualified State or local develop10 ment company may—

11 ‘‘(i) consider an offer made by an obli12 gor to compromise the debt for less than

13 the full amount owing; and

14 ‘‘(ii) pursuant to such an offer, re15 lease any obligor or other party contin16 gently liable, if the company secures the

17 written approval of the Administration.

18 ‘‘(E) CONTENTS OF NOTICE OF NO DECI19 SION.—Any notice provided by the Administra20 tion under subparagraphs (A)(ii)(II),

21 (B)(ii)(II), or (C)(ii)(II)—

22 ‘‘(i) shall be in writing;

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

24 the Administration’s inability to act on a

25 plan or request;
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1 ‘‘(iii) shall include an estimate of the

2 additional time required by the Adminis3 tration to act on the plan or request; and

4 ‘‘(iv) if the Administration cannot act

5 because insufficient information or docu6 mentation was provided by the company

7 submitting the plan or request, shall speci8 fy the nature of such additional informa9 tion or documentation.

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

11 functions described in paragraph (1), a qualified

12 State or local development company shall take no ac13 tion that would result in an actual or apparent con14 flict of interest between the company (or any em15 ployee of the company) and any third party lender,

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

17 participating in a liquidation, foreclosure, or loss

18 mitigation action.

19 ‘‘(d) SUSPENSION OR REVOCATION OF AUTHOR20 ITY.—The Administration may revoke or suspend a dele21 gation of authority under this section to any qualified

22 State or local development company, if the Administration

23 determines that the company—

24 ‘‘(1) does not meet the requirements of sub25 section (b)(1);
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1 ‘‘(2) has violated any applicable rule or regula2 tion of the Administration or any other applicable

3 law; or

4 ‘‘(3) fails to comply with any reporting require5 ment that may be established by the Administration

6 relating to carrying out of functions described in

7 paragraph (1).

8 ‘‘(e) REPORT.—

9 ‘‘(1) IN GENERAL.—Based on information pro10 vided by qualified State and local development com11 panies and the Administration, the Administration

12 shall annually submit to the Committees on Small

13 Business of the House of Representatives and of the

14 Senate a report on the results of delegation of au15 thority under this section.

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

17 paragraph (1) shall include the following informa18 tion:

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

20 or liquidated by a qualified State or local devel21 opment company under this section, or for

22 which losses were otherwise mitigated by the

23 company pursuant to a workout plan under this

24 section—
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1 ‘‘(i) the total cost of the project fi2 nanced with the loan;

3 ‘‘(ii) the total original dollar amount

4 guaranteed by the Administration;

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

6 loan at the time of liquidation, foreclosure,

7 or mitigation of loss;

8 ‘‘(iv) the total dollar losses resulting

9 from the liquidation, foreclosure, or mitiga10 tion of loss; and

11 ‘‘(v) the total recoveries resulting

12 from the liquidation, foreclosure, or mitiga13 tion of loss, both as a percentage of the

14 amount guaranteed and the total cost of

15 the project financed.

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

17 or local development company to which author18 ity is delegated under this section, the totals of

19 each of the amounts described in clauses (i)

20 through (v) of subparagraph (A).

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

22 foreclosure, liquidation, or mitigation under this

23 section, the totals of each of the amounts de24 scribed in clauses (i) through (v) of subpara25 graph (A).
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1 ‘‘(D) A comparison between—

2 ‘‘(i) the information provided under

3 subparagraph (C) with respect to the 12-

4 month period preceding the date on which

5 the report is submitted; and

6 ‘‘(ii) the same information with re7 spect to loans foreclosed and liquidated, or

8 otherwise treated, by the Administration

9 during the same period.

10 ‘‘(E) The number of times that the Admin11 istration has failed to approve or reject a liq12 uidation plan in accordance with subparagraph

13 (A)(i), a workout plan in accordance with sub14 paragraph (C)(i), or to approve or deny a re15 quest for purchase of indebtedness under sub16 paragraph (B)(i), including specific information

17 regarding the reasons for the Administration’s

18 failure and any delays that resulted.’’.

19 (b) REGULATIONS.—

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

21 after the date of enactment of this Act, the Adminis22 trator shall issue such regulations as may be nec23 essary to carry out section 510 of the Small Busi24 ness Investment Act of 1958, as added by subsection

25 (a) of this section.
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1 (2) TERMINATION OF PILOT PROGRAM.—Begin2 ning on the date which the final regulations are

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

4 Small Business Programs Improvement Act of 1996

5 (15 U.S.C. 695 note) shall cease to have effect.

6 TITLE IV—CORRECTIONS TO

7 THE SMALL BUSINESS IN8 VESTMENT ACT OF 1958

9 SEC. 401. SHORT TITLE.

10 This title may be cited as the ‘‘Small Business Invest11 ment Corrections Act of 2000’’.

12 SEC. 402. DEFINITIONS.

13 (a) SMALL BUSINESS CONCERN.—Section

14 103(5)(A)(i) of the Small Business Investment Act of

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

16 ‘‘regardless of the allocation of control during the invest17 ment period under any investment agreement between the

18 business concern and the entity making the investment’’

19 before the semicolon at the end.

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

21 Investment Act of 1958 (15 U.S.C. 662) is amended—

22 (1) in paragraph (15), by striking ‘‘and’’ at the

23 end;

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

25 the end and inserting ‘‘; and’’; and
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1 (3) by adding at the end the following new

2 paragraph:

3 ‘‘(17) the term ‘long term’, when used in con4 nection with equity capital or loan funds invested in

5 any small business concern or smaller enterprise,

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

7 SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT

8 COMPANIES.

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

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

11 (1) by striking ‘‘(b) Notwithstanding’’ and in12 serting the following:

13 ‘‘(b) FINANCIAL INSTITUTION INVESTMENTS.—

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

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

16 ‘‘(2) CERTAIN SAVINGS ASSOCIATIONS.—Not17 withstanding any other provision of law, any Federal

18 savings association may invest in any 1 or more

19 small business investment companies, or in any enti20 ty established to invest solely in small business in21 vestment companies, except that in no event may the

22 total amount of such investments by any such Fed23 eral savings association exceed 5 percent of the cap24 ital and surplus of the Federal savings association.’’.
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1 SEC. 404. SUBSIDY FEES.

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

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

4 amended by striking ‘‘plus an additional charge of 1 per5 cent per annum which shall be paid to and retained by

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

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

8 an amount established annually by the Administration, of

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

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

11 Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Ad12 ministration of purchasing and guaranteeing debentures

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

14 the Administration’’.

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

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

17 683(g)(2)) is amended by striking ‘‘plus an additional

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

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

20 participating securities issued after September 30, 2000,

21 an additional charge, in an amount established annually

22 by the Administration, of not more than 1 percent per

23 year as necessary to reduce to zero the cost (as defined

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

25 (2 U.S.C. 661a)) to the Administration of purchasing and
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1 guaranteeing participating securities under this Act, which

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

3 SEC. 405. DISTRIBUTIONS.

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

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

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

7 inserting ‘‘subchapter S corporation’’;

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

9 based on a quarterly’’ and inserting ‘‘any time dur10 ing any calendar quarter based on an’’; and

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

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

13 for a calendar year,’’.

14 SEC. 406. CONFORMING AMENDMENT.

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

16 Act of 1958 (15 U.S.C. 687b(c)(4)) is amended by strik17 ing ‘‘five years’’ and inserting ‘‘1 year’’.

18 TITLE V—REAUTHORIZATION OF

19 SMALL BUSINESS PROGRAMS

20 SEC. 501. SHORT TITLE.

21 This title may be cited as the ‘‘Small Business Reau22 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’’.

Attest:

Clerk.