I

106TH CONGRESS

2D SESSION H. R. 5667

To provide for reauthorization of small business loan and other programs,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

DECEMBER 15, 2000

Mr. TALENT (for himself and Ms. VELA ́

ZQUEZ) introduced the following bill;

which was referred to the Committee on Small Business

A BILL

To provide for reauthorization of small business loan and

other programs, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

5 ‘‘Small Business Reauthorization Act of 2000’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—SMALL BUSINESS INNOVATION RESEARCH PROGRAM

Sec. 101. Short title.

Sec. 102. Findings.

Sec. 103. Extension of SBIR program.
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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—BUSINESS LOAN PROGRAMS

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.

Sec. 208. Appraisals for loans secured by real property.

Sec. 209. Sale of guaranteed loans made for export purposes.

Sec. 210. Microloan program.

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.

Sec. 504. Cosponsorship.

TITLE VI—HUBZONE PROGRAM

Subtitle A—HUBZones in Native America

Sec. 601. Short title.

Sec. 602. HUBZone small business concern.
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Sec. 603. Qualified HUBZone small business concern.

Sec. 604. Other definitions.

Subtitle B—Other HUBZone Provisions

Sec. 611. Definitions.

Sec. 612. Eligible contracts.

Sec. 613. HUBZone redesignated areas.

Sec. 614. Community development.

Sec. 615. Reference corrections.

TITLE VII—NATIONAL WOMEN’S BUSINESS COUNCIL

REAUTHORIZATION

Sec. 701. Short title.

Sec. 702. Membership of the Council.

Sec. 703. Repeal of procurement project.

Sec. 704. Studies and other research.

Sec. 705. Authorization of appropriations.

TITLE VIII—MISCELLANEOUS PROVISIONS

Sec. 801. Loan application processing.

Sec. 802. Application of ownership requirements.

Sec. 803. Subcontracting preference for veterans.

Sec. 804. Small Business Development Center Program funding.

Sec. 805. Surety bonds.

Sec. 806. Size standards.

Sec. 807. Native Hawaiian organizations under section 8(a).

Sec. 808. National Veterans Business Development Corporation correction.

Sec. 809. Private sector resources for SCORE.

Sec. 810. Contract data collection.

Sec. 811. Procurement program for women-owned small business concerns.

1 TITLE I—SMALL BUSINESS INNO2 VATION RESEARCH PROGRAM

3 SEC. 101. SHORT TITLE.

4 This title may be cited as the ‘‘Small Business Inno5 vation Research Program Reauthorization Act of 2000’’.

6 SEC. 102. FINDINGS.

7 Congress finds that—

8 (1) the small business innovation research pro9 gram established under the Small Business Innova10 tion Development Act of 1982, and reauthorized by

11 the Small Business Research and Development En-
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1 hancement Act of 1992 (in this title referred to as

2 the ‘‘SBIR program’’) is highly successful in involv3 ing small businesses in federally funded research

4 and development;

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

6 and unique research and development capabilities

7 possessed by the small businesses of the Nation

8 available to Federal agencies and departments;

9 (3) the innovative goods and services developed

10 by small businesses that participated in the SBIR

11 program have produced innovations of critical impor12 tance in a wide variety of high-technology fields, in13 cluding biology, medicine, education, and defense;

14 (4) the SBIR program is a catalyst in the pro15 motion of research and development, the commer16 cialization of innovative technology, the development

17 of new products and services, and the continued ex18 cellence of this Nation’s high-technology industries;

19 and

20 (5) the continuation of the SBIR program will

21 provide expanded opportunities for one of the Na22 tion’s vital resources, its small businesses, will foster

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

24 and will increase this Nation’s competitiveness in

25 international markets.
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1 SEC. 103. EXTENSION OF SBIR PROGRAM.

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

3 638(m)) is amended to read as follows:

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

5 the Small Business Innovation Research Program estab6 lished under this section shall terminate on September 30,

7 2008.’’.

8 SEC. 104. ANNUAL REPORT.

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

10 638(b)(7)) is amended by striking ‘‘and the Committee on

11 Small Business of the House of Representatives’’ and in12 serting ‘‘, and to the Committee on Science and the Com13 mittee on Small Business of the House of Representa14 tives,’’.

15 SEC. 105. THIRD PHASE ASSISTANCE.

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

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

18 and inserting ‘‘; or’’.

19 SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORM20 ANCE PLAN.

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

22 638(g)) is amended—

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

24 end;

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

26 the end and inserting a semicolon; and
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1 (3) by adding at the end the following:

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

3 plan as required by subsections (a) and (b) of sec4 tion 1115 of title 31, United States Code, a section

5 on its SBIR program, and shall submit such section

6 to the Committee on Small Business of the Senate,

7 and the Committee on Science and the Committee

8 on Small Business of the House of Representatives;

9 and’’.

10 SEC. 107. OUTPUT AND OUTCOME DATA.

11 (a) COLLECTION.—Section 9(g) of the Small Busi12 ness Act (15 U.S.C. 638(g)), as amended by section 106

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

14 following:

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

16 in accordance with subsection (v), such information

17 from awardees as is necessary to assess the SBIR

18 program, including information necessary to main19 tain the database described in subsection (k).’’.

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

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

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

23 before the period at the end ‘‘, including the data on out24 put and outcomes collected pursuant to subsections

25 (g)(10) and (o)(9), and a description of the extent to
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1 which Federal agencies are providing in a timely manner

2 information needed to maintain the database described in

3 subsection (k)’’.

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

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

6 ‘‘(k) DATABASE.—

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

8 days after the date of the enactment of the Small

9 Business Innovation Research Program Reauthoriza10 tion Act of 2000, the Administrator shall develop,

11 maintain, and make available to the public a search12 able, up-to-date, electronic database that includes—

13 ‘‘(A) the name, size, location, and an iden14 tifying number assigned by the Administrator,

15 of each small business concern that has received

16 a first phase or second phase SBIR award from

17 a Federal agency;

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

19 second phase SBIR award received by that

20 small business concern, including—

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

22 by the award, excluding any proprietary in23 formation so identified by the small busi24 ness concern;
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1 ‘‘(ii) the Federal agency making the

2 award; and

3 ‘‘(iii) the date and amount of the

4 award;

5 ‘‘(C) an identification of any business con6 cern or subsidiary established for the commer7 cial application of a product or service for

8 which an SBIR award is made; and

9 ‘‘(D) information regarding mentors and

10 Mentoring Networks, as required by section

11 35(d).

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

13 180 days after the date of the enactment of the

14 Small Business Innovation Research Program Reau15 thorization Act of 2000, the Administrator, in con16 sultation with Federal agencies required to have an

17 SBIR program pursuant to subsection (f )(1), shall

18 develop and maintain a database to be used solely

19 for SBIR program evaluation that—

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

21 made by a Federal agency—

22 ‘‘(i) information collected in accord23 ance with paragraph (3) on revenue from

24 the sale of new products or services result-
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1 ing from the research conducted under the

2 award;

3 ‘‘(ii) information collected in accord4 ance with paragraph (3) on additional in5 vestment from any source, other than first

6 phase or second phase SBIR or STTR

7 awards, to further the research and devel8 opment conducted under the award; and

9 ‘‘(iii) any other information received

10 in connection with the award that the Ad11 ministrator, in conjunction with the SBIR

12 program managers of Federal agencies,

13 considers relevant and appropriate;

14 ‘‘(B) includes any narrative information

15 that a small business concern receiving a second

16 phase award voluntarily submits to further de17 scribe the outputs and outcomes of its awards;

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

19 phase or second phase award that does not re20 ceive such an award—

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

22 an identifying number assigned by the Ad23 ministration;

24 ‘‘(ii) an abstract of the project; and
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1 ‘‘(iii) the Federal agency to which the

2 application was made;

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

4 or available to any Federal agency that such

5 agency considers may be useful for SBIR pro6 gram evaluation; and

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

8 evaluation purposes by the Federal Government

9 or, in accordance with policy directives issued

10 by the Administration, by other authorized per11 sons who are subject to a use and nondisclosure

12 agreement with the Federal Government cov13 ering the use of the database.

14 ‘‘(3) UPDATING INFORMATION FOR DATA15 BASE.—

16 ‘‘(A) IN GENERAL.—A small business con17 cern applying for a second phase award under

18 this section shall be required to update informa19 tion in the database established under this sub20 section for any prior second phase award re21 ceived by that small business concern. In com22 plying with this paragraph, a small business

23 concern may apportion sales or additional in24 vestment information relating to more than one
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1 second phase award among those awards, if it

2 notes the apportionment for each award.

3 ‘‘(B) ANNUAL UPDATES UPON TERMI4 NATION.—A small business concern receiving a

5 second phase award under this section shall—

6 ‘‘(i) update information in the data7 base concerning that award at the termi8 nation of the award period; and

9 ‘‘(ii) be requested to voluntarily up10 date such information annually thereafter

11 for a period of 5 years.

12 ‘‘(4) PROTECTION OF INFORMATION.—Informa13 tion provided under paragraph (2) shall be consid14 ered privileged and confidential and not subject to

15 disclosure pursuant to section 552 of title 5, United

16 States Code.

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

18 information in the database under this subsection

19 shall not be considered to be publication for pur20 poses of subsection (a) or (b) of section 102 of title

21 35, United States Code.’’.

22 SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.

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

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

25 its SBIR program for fiscal year 1999, in consultation
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1 with the Small Business Administration, shall, not later

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

3 cooperatively enter into an agreement with the National

4 Academy of Sciences for the National Research Council

5 to—

6 (1) conduct a comprehensive study of how the

7 SBIR program has stimulated technological innova8 tion and used small businesses to meet Federal re9 search and development needs, including—

10 (A) a review of the value to the Federal re11 search agencies of the research projects being

12 conducted under the SBIR program, and of the

13 quality of research being conducted by small

14 businesses participating under the program, in15 cluding a comparison of the value of projects

16 conducted under the SBIR program to those

17 funded by other Federal research and develop18 ment expenditures;

19 (B) to the extent practicable, an evaluation

20 of the economic benefits achieved by the SBIR

21 program, including the economic rate of return,

22 and a comparison of the economic benefits, in23 cluding the economic rate of return, achieved by

24 the SBIR program with the economic benefits,
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1 including the economic rate of return, of other

2 Federal research and development expenditures;

3 (C) an evaluation of the noneconomic bene4 fits achieved by the SBIR program over the life

5 of the program;

6 (D) a comparison of the allocation for fis7 cal year 2000 of Federal research and develop8 ment funds to small businesses with such allo9 cation for fiscal year 1983, and an analysis of

10 the factors that have contributed to such alloca11 tion; and

12 (E) an analysis of whether Federal agen13 cies, in fulfilling their procurement needs, are

14 making sufficient effort to use small businesses

15 that have completed a second phase award

16 under the SBIR program; and

17 (2) make recommendations with respect to—

18 (A) measures of outcomes for strategic

19 plans submitted under section 306 of title 5,

20 United States Code, and performance plans

21 submitted under section 1115 of title 31,

22 United States Code, of each Federal agency

23 participating in the SBIR program;

24 (B) whether companies who can dem25 onstrate project feasibility, but who have not re-
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1 ceived a first phase award, should be eligible for

2 second phase awards, and the potential impact

3 of such awards on the competitive selection

4 process of the program;

5 (C) whether the Federal Government

6 should be permitted to recoup some or all of its

7 expenses if a controlling interest in a company

8 receiving an SBIR award is sold to a foreign

9 company or to a company that is not a small

10 business concern;

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

12 Government in its programs and procurements

13 of technology-oriented small businesses; and

14 (E) improvements to the SBIR program, if

15 any are considered appropriate.

16 (b) PARTICIPATION BY SMALL BUSINESS.—

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

18 law and with National Research Council study

19 guidelines and procedures, knowledgeable individuals

20 from the small business community with experience

21 in the SBIR program shall be included—

22 (A) in any panel established by the Na23 tional Research Council for the purpose of per24 forming the study conducted under this section;

25 and
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1 (B) among those who are asked by the Na2 tional Research Council to peer review the

3 study.

4 (2) CONSULTATION.—To ensure that the con5 cerns of small business are appropriately considered

6 under this subsection, the National Research Council

7 shall consult with and consider the views of the Of8 fice of Technology and the Office of Advocacy of the

9 Small Business Administration and other interested

10 parties, including entities, organizations, and indi11 viduals actively engaged in enhancing or developing

12 the technological capabilities of small business con13 cerns.

14 (c) PROGRESS REPORTS.—The National Research

15 Council shall provide semiannual progress reports on the

16 study conducted under this section to the Committee on

17 Science and the Committee on Small Business of the

18 House of Representatives, and to the Committee on Small

19 Business of the Senate.

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

21 transmit to the heads of agencies entering into an agree22 ment under this section and to the Committee on Science

23 and the Committee on Small Business of the House of

24 Representatives, and to the Committee on Small Business

25 of the Senate—
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1 (1) not later than 3 years after the date of the

2 enactment of this Act, a report including the results

3 of the study conducted under subsection (a)(1) and

4 recommendations made under subsection (a)(2); and

5 (2) not later than 6 years after that date of the

6 enactment, an update of such report.

7 SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR

8 PROGRAM.

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

10 638(i)) is amended—

11 (1) by striking ‘‘(i) Each Federal’’ and insert12 ing the following:

13 ‘‘(i) ANNUAL REPORTING.—

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

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

16 ‘‘(2) CALCULATION OF EXTRAMURAL BUDG17 ET.—

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

19 months after the date of the enactment of each

20 appropriations Act for a Federal agency re21 quired by this section to have an SBIR pro22 gram, the Federal agency shall submit to the

23 Administrator a report, which shall include a

24 description of the methodology used for calcu-
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1 lating the amount of the extramural budget of

2 that Federal agency.

3 ‘‘(B) ADMINISTRATOR’S ANALYSIS.—The

4 Administrator shall include an analysis of the

5 methodology received from each Federal agency

6 referred to in subparagraph (A) in the report

7 required by subsection (b)(7).’’.

8 SEC. 110. POLICY DIRECTIVE MODIFICATIONS.

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

10 638( j)) is amended by adding at the end the following:

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

12 than 120 days after the date of the enactment of the

13 Small Business Innovation Research Program Reau14 thorization Act of 2000, the Administrator shall

15 modify the policy directives issued pursuant to this

16 subsection—

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

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

19 funding awards under this section, including

20 the first phase (as described in subsection

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

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

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

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

25 succinct commercialization plan with each appli-
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1 cation for a second phase award that is moving

2 toward commercialization;

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

4 Administration, not less frequently than annu5 ally, all instances in which an agency pursued

6 research, development, or production of a tech7 nology developed by a small business concern

8 using an award made under the SBIR program

9 of that agency, and determined that it was not

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

11 program funding agreement with the small

12 business concern, which report shall include, at

13 a minimum—

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

15 funding agreement with the small business

16 concern was not practicable;

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

18 which the agency contracted to perform

19 the research, development, or production;

20 and

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

22 funding agreement under which the re23 search, development, or production was ob24 tained; and
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1 ‘‘(D) to implement subsection (v), includ2 ing establishing standardized procedures for the

3 provision of information pursuant to subsection

4 (k)(3).’’.

5 SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNER6 SHIP PROGRAM.

7 (a) FINDINGS.—Congress finds that—

8 (1) programs to foster economic development

9 among small high-technology firms vary widely

10 among the States;

11 (2) States that do not aggressively support the

12 development of small high-technology firms, includ13 ing participation by small business concerns in the

14 SBIR program, are at a competitive disadvantage in

15 establishing a business climate that is conducive to

16 technology development; and

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

18 support for science and technology research in these

19 disadvantaged States will expand economic opportu20 nities in the United States, create jobs, and increase

21 the competitiveness of the United States in the

22 world market.

23 (b) FEDERAL AND STATE TECHNOLOGY PARTNER24 SHIP PROGRAM.—The Small Business Act (15 U.S.C. 631

25 et seq.) is amended—
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1 (1) by redesignating section 34 as section 36;

2 and

3 (2) by inserting after section 33 the following:

4 ‘‘SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNER5 SHIP PROGRAM.

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

7 the following definitions apply:

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

9 an entity, organization, or individual that submits a

10 proposal for an award or a cooperative agreement

11 under this section.

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

13 The term ‘business advice and counseling’ means

14 providing advice and assistance on matters described

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

16 guide them through the SBIR and STTR program

17 process, from application to award and successful

18 completion of each phase of the program.

19 ‘‘(3) FAST PROGRAM.—The term ‘FAST pro20 gram’ means the Federal and State Technology

21 Partnership Program established under this section.

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

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

24 ‘‘(5) MENTORING NETWORK.—The term ‘Men25 toring Network’ means an association, organization,
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1 coalition, or other entity (including an individual)

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

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

4 person that receives an award or becomes party to

5 a cooperative agreement under this section.

6 ‘‘(7) SBIR PROGRAM.—The term ‘SBIR pro7 gram’ has the same meaning as in section 9(e)(4).

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

9 the several States, the District of Columbia, the

10 Commonwealth of Puerto Rico, the Virgin Islands,

11 Guam, and American Samoa.

12 ‘‘(9) STTR PROGRAM.—The term ‘STTR pro13 gram’ has the same meaning as in section 9(e)(6).

14 ‘‘(b) ESTABLISHMENT OF PROGRAM.—The Adminis15 trator shall establish a program to be known as the Fed16 eral and State Technology Partnership Program, the pur17 pose of which shall be to strengthen the technological com18 petitiveness of small business concerns in the States.

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

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

21 FAST program under this section, the Adminis22 trator and the SBIR program managers at the Na23 tional Science Foundation and the Department of

24 Defense shall jointly review proposals submitted by

25 applicants and may make awards or enter into coop-
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1 erative agreements under this section based on the

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

3 in order to enhance or develop in a State—

4 ‘‘(A) technology research and development

5 by small business concerns;

6 ‘‘(B) technology transfer from university

7 research to technology-based small business

8 concerns;

9 ‘‘(C) technology deployment and diffusion

10 benefiting small business concerns;

11 ‘‘(D) the technological capabilities of small

12 business concerns through the establishment or

13 operation of consortia comprised of entities, or14 ganizations, or individuals, including—

15 ‘‘(i) State and local development agen16 cies and entities;

17 ‘‘(ii) representatives of technology18 based small business concerns;

19 ‘‘(iii) industries and emerging compa20 nies;

21 ‘‘(iv) universities; and

22 ‘‘(v) small business development cen23 ters; and

24 ‘‘(E) outreach, financial support, and tech25 nical assistance to technology-based small busi-
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1 ness concerns participating in or interested in

2 participating in an SBIR program, including

3 initiatives—

4 ‘‘(i) to make grants or loans to com5 panies to pay a portion or all of the cost

6 of developing SBIR proposals;

7 ‘‘(ii) to establish or operate a Men8 toring Network within the FAST program

9 to provide business advice and counseling

10 that will assist small business concerns

11 that have been identified by FAST pro12 gram participants, program managers of

13 participating SBIR agencies, the Adminis14 tration, or other entities that are knowl15 edgeable about the SBIR and STTR pro16 grams as good candidates for the SBIR

17 and STTR programs, and that would ben18 efit from mentoring, in accordance with

19 section 35;

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

21 training program for individuals providing

22 SBIR outreach and assistance at the State

23 and local levels; and
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1 ‘‘(iv) to encourage the commercializa2 tion of technology developed through SBIR

3 program funding.

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

5 awards or entering into cooperative agreements

6 under this section, the Administrator and the SBIR

7 program managers referred to in paragraph (1)—

8 ‘‘(A) may only consider proposals by appli9 cants that intend to use a portion of the Fed10 eral assistance provided under this section to

11 provide outreach, financial support, or technical

12 assistance to technology-based small business

13 concerns participating in or interested in par14 ticipating in the SBIR program; and

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

16 ‘‘(i) whether the applicant has dem17 onstrated that the assistance to be pro18 vided would address unmet needs of small

19 business concerns in the community, and

20 whether it is important to use Federal

21 funding for the proposed activities;

22 ‘‘(ii) whether the applicant has dem23 onstrated that a need exists to increase the

24 number or success of small high-technology

25 businesses in the State, as measured by
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1 the number of first phase and second

2 phase SBIR awards that have historically

3 been received by small business concerns in

4 the State;

5 ‘‘(iii) whether the projected costs of

6 the proposed activities are reasonable;

7 ‘‘(iv) whether the proposal integrates

8 and coordinates the proposed activities

9 with other State and local programs assist10 ing small high-technology firms in the

11 State; and

12 ‘‘(v) the manner in which the appli13 cant will measure the results of the activi14 ties to be conducted.

15 ‘‘(3) PROPOSAL LIMIT.—Not more than one

16 proposal may be submitted for inclusion in the

17 FAST program under this section to provide services

18 in any one State in any 1 fiscal year.

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

20 assistance under this section shall be in such form

21 and subject to such procedures as the Administrator

22 shall establish.

23 ‘‘(d) COOPERATION AND COORDINATION.—In car24 rying out the FAST program under this section, the Ad25 ministrator shall cooperate and coordinate with—
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1 ‘‘(1) Federal agencies required by section 9 to

2 have an SBIR program; and

3 ‘‘(2) entities, organizations, and individuals ac4 tively engaged in enhancing or developing the tech5 nological capabilities of small business concerns,

6 including—

7 ‘‘(A) State and local development agencies

8 and entities;

9 ‘‘(B) State committees established under

10 the Experimental Program to Stimulate Com11 petitive Research of the National Science Foun12 dation (as established under section 113 of the

13 National Science Foundation Authorization Act

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

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

16 and

17 ‘‘(D) representatives of technology-based

18 small business concerns.

19 ‘‘(e) ADMINISTRATIVE REQUIREMENTS.—

20 ‘‘(1) COMPETITIVE BASIS.—Awards and cooper21 ative agreements under this section shall be made or

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

23 ‘‘(2) MATCHING REQUIREMENTS.—

24 ‘‘(A) IN GENERAL.—The non-Federal

25 share of the cost of an activity (other than a
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1 planning activity) carried out using an award or

2 under a cooperative agreement under this sec3 tion shall be—

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

5 in the case of a recipient that will serve

6 small business concerns located in one of

7 the 18 States receiving the fewest SBIR

8 first phase awards (as described in section

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

10 ‘‘(ii) except as provided in subpara11 graph (B), 1 dollar for each Federal dollar,

12 in the case of a recipient that will serve

13 small business concerns located in one of

14 the 16 States receiving the greatest num15 ber of such SBIR first phase awards; and

16 ‘‘(iii) except as provided in subpara17 graph (B), 75 cents for each Federal dol18 lar, in the case of a recipient that will

19 serve small business concerns located in a

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

21 (ii) that is receiving such SBIR first phase

22 awards.

23 ‘‘(B) LOW-INCOME AREAS.—The non-Fed24 eral share of the cost of the activity carried out

25 using an award or under a cooperative agree-
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1 ment under this section shall be 50 cents for

2 each Federal dollar that will be directly allo3 cated by a recipient described in subparagraph

4 (A) to serve small business concerns located in

5 a qualified census tract, as that term is defined

6 in section 42(d)(5)(C)(ii) of the Internal Rev7 enue Code of 1986. Federal dollars not so allo8 cated by that recipient shall be subject to the

9 matching requirements of subparagraph (A).

10 ‘‘(C) TYPES OF FUNDING.—The non-Fed11 eral share of the cost of an activity carried out

12 by a recipient shall be comprised of not less

13 than 50 percent cash and not more than 50

14 percent of indirect costs and in-kind contribu15 tions, except that no such costs or contributions

16 may be derived from funds from any other Fed17 eral program.

18 ‘‘(D) RANKINGS.—For purposes of sub19 paragraph (A), the Administrator shall reevalu20 ate the ranking of a State once every 2 fiscal

21 years, beginning with fiscal year 2001, based on

22 the most recent statistics compiled by the Ad23 ministrator.
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1 ‘‘(3) DURATION.—Awards may be made or co2 operative agreements entered into under this section

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

4 ‘‘(f ) REPORTS.—

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

6 days after the date of the enactment of the Small

7 Business Innovation Research Program Reauthoriza8 tion Act of 2000, the Administrator shall prepare

9 and submit to the Committee on Small Business of

10 the Senate and the Committee on Science and the

11 Committee on Small Business of the House of Rep12 resentatives a report, which shall include, with re13 spect to the FAST program, including Mentoring

14 Networks—

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

16 procedures of the program;

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

18 and

19 ‘‘(C) a description of the merit-based re20 view process to be used in the program.

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

22 shall submit an annual report to the Committee on

23 Small Business of the Senate and the Committee on

24 Science and the Committee on Small Business of the

25 House of Representatives regarding—
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1 ‘‘(A) the number and amount of awards

2 provided and cooperative agreements entered

3 into under the FAST program during the pre4 ceding year;

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

6 including their location and the activities being

7 performed with the awards made or under the

8 cooperative agreements entered into; and

9 ‘‘(C) the Mentoring Networks and the

10 mentoring database, as provided for under sec11 tion 35, including—

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

13 mentoring information in the database re14 quired by section 9(k); and

15 ‘‘(ii) the status of the implementation

16 and description of the usage of the Men17 toring Networks.

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

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

20 the Administration shall conduct a review of—

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

22 the FAST program are measuring the perform23 ance of the activities being conducted and the

24 results of such measurements; and
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1 ‘‘(B) the overall management and effective2 ness of the FAST program.

3 ‘‘(2) REPORT.—During the first quarter of fis4 cal year 2004, the Inspector General of the Adminis5 tration shall submit a report to the Committee on

6 Small Business of the Senate and the Committee on

7 Science and the Committee on Small Business of the

8 House of Representatives on the review conducted

9 under paragraph (1).

10 ‘‘(h) PROGRAM LEVELS.—

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

12 appropriated to carry out the FAST program, in13 cluding Mentoring Networks, under this section and

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

15 2001 through 2005.

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

17 amount made available under paragraph (1) for fis18 cal years 2001 through 2005, a reasonable amount,

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

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

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

22 FAST program under this section shall terminate on Sep23 tember 30, 2005.’’.

24 (c) COORDINATION OF TECHNOLOGY DEVELOPMENT

25 PROGRAMS.—Section 9 of the Small Business Act (15
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1 U.S.C. 638) is amended by adding at the end the fol2 lowing:

3 ‘‘(u) COORDINATION OF TECHNOLOGY DEVELOP4 MENT PROGRAMS.—

5 ‘‘(1) DEFINITION OF TECHNOLOGY DEVELOP6 MENT PROGRAM.—In this subsection, the term ‘tech7 nology development program’ means—

8 ‘‘(A) the Experimental Program to Stimu9 late Competitive Research of the National

10 Science Foundation, as established under sec11 tion 113 of the National Science Foundation

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

13 ‘‘(B) the Defense Experimental Program

14 to Stimulate Competitive Research of the De15 partment of Defense;

16 ‘‘(C) the Experimental Program to Stimu17 late Competitive Research of the Department of

18 Energy;

19 ‘‘(D) the Experimental Program to Stimu20 late Competitive Research of the Environmental

21 Protection Agency;

22 ‘‘(E) the Experimental Program to Stimu23 late Competitive Research of the National Aero24 nautics and Space Administration;
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1 ‘‘(F) the Institutional Development Award

2 Program of the National Institutes of Health;

3 and

4 ‘‘(G) the National Research Initiative

5 Competitive Grants Program of the Department

6 of Agriculture.

7 ‘‘(2) COORDINATION REQUIREMENTS.—Each

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

9 that has established a technology development pro10 gram may, in each fiscal year, review for funding

11 under that technology development program—

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

13 assistance to one or more small business con14 cerns interested in participating in the SBIR

15 program, including any proposal to make a

16 grant or loan to a company to pay a portion or

17 all of the cost of developing an SBIR proposal,

18 from an entity, organization, or individual lo19 cated in—

20 ‘‘(i) a State that is eligible to partici21 pate in that program; or

22 ‘‘(ii) a State described in paragraph

23 (3); or

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

25 the SBIR program, if the proposal, though mer-
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1 itorious, is not funded through the SBIR pro2 gram for that fiscal year due to funding re3 straints, from a small business concern located

4 in—

5 ‘‘(i) a State that is eligible to partici6 pate in a technology development program;

7 or

8 ‘‘(ii) a State described in paragraph

9 (3).

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

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

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

13 contracts awarded to small business concerns under

14 all SBIR programs is less than the total value of

15 contracts awarded to small business concerns in a

16 majority of other States, as determined by the Ad17 ministrator in biennial fiscal years, beginning with

18 fiscal year 2000, based on the most recent statistics

19 compiled by the Administrator.’’.

20 SEC. 112. MENTORING NETWORKS.

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

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

23 111(b)(2) of this Act, the following:

24 ‘‘SEC. 35. MENTORING NETWORKS.

25 ‘‘(a) FINDINGS.—Congress finds that—
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1 ‘‘(1) the SBIR and STTR programs create

2 jobs, increase capacity for technological innovation,

3 and boost international competitiveness;

4 ‘‘(2) increasing the quantity of applications

5 from all States to the SBIR and STTR programs

6 would enhance competition for such awards and the

7 quality of the completed projects; and

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

9 FAST program of reaching out to new companies

10 regarding the SBIR and STTR programs as an ef11 fective and low-cost way to improve the likelihood

12 that such companies will succeed in such programs

13 in developing and commercializing their research.

14 ‘‘(b) AUTHORIZATION FOR MENTORING NET15 WORKS.—The recipient of an award or participant in a

16 cooperative agreement under section 34 may use a reason17 able amount of such assistance for the establishment of

18 a Mentoring Network under this section.

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

20 Mentoring Network established using assistance under

21 section 34 shall—

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

23 high technology small business concerns located in

24 the State or region served by the Mentoring Net25 work and identified under section 34(c)(1)(E)(ii) as
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1 potential candidates for the SBIR or STTR pro2 grams;

3 ‘‘(2) identify volunteer mentors who—

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

5 business concern that has successfully com6 pleted one or more SBIR or STTR funding

7 agreements; and

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

9 concerns through all stages of the SBIR or

10 STTR program process, including providing as11 sistance relating to—

12 ‘‘(i) proposal writing;

13 ‘‘(ii) marketing;

14 ‘‘(iii) Government accounting;

15 ‘‘(iv) Government audits;

16 ‘‘(v) project facilities and equipment;

17 ‘‘(vi) human resources;

18 ‘‘(vii) third phase partners;

19 ‘‘(viii) commercialization;

20 ‘‘(ix) venture capital networking; and

21 ‘‘(x) other matters relevant to the

22 SBIR and STTR programs;

23 ‘‘(3) have experience working with small busi24 ness concerns participating in the SBIR and STTR

25 programs;
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1 ‘‘(4) contribute information to the national

2 database referred to in subsection (d); and

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

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

5 under this section.

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

7 shall—

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

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

10 FAST programs, information on Mentoring Net11 works and mentors participating under this section,

12 including a description of their areas of expertise;

13 ‘‘(2) work cooperatively with Mentoring Net14 works to maintain and update the database;

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

16 aggressively promote Mentoring Networks under this

17 section; and

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

19 either directly or by contract.’’.

20 SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.

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

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

23 at the end the following:

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

25 Administrator shall work with the Federal agencies re-
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1 quired by this section to have an SBIR program to stand2 ardize reporting requirements for the collection of data

3 from SBIR applicants and awardees, including data for

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

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

6 extent possible, permitting the updating of previously re7 ported information by electronic means. Such require8 ments shall be designed to minimize the burden on small

9 businesses.’’.

10 SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.

11 (a) EXTENSION OF TERMINATION DATE.—Section

12 501(b)(2) of the Small Business Reauthorization Act of

13 1997 (15 U.S.C. 638 note; 111 Stat. 2622) is amended

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

15 (b) EXTENSION OF AUTHORIZATION OF APPROPRIA16 TIONS.—Section 9(s)(2) of the Small Business Act (15

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

18 1998, 1999, 2000, or 2001’’ and inserting ‘‘for each of

19 the fiscal years 2000 through 2005,’’.

20 TITLE II—BUSINESS LOAN

21 PROGRAMS

22 SEC. 201. SHORT TITLE.

23 This title may be cited as the ‘‘Small Business Loan

24 Improvement Act of 2000’’.
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1 SEC. 202. LEVELS OF PARTICIPATION.

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

3 U.S.C. 636(a)(2)(A)) is amended—

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

5 and inserting ‘‘$150,000’’; and

6 (2) in paragraph (ii)—

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

8 ‘‘85 percent’’; and

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

10 ‘‘$150,000’’.

11 SEC. 203. LOAN AMOUNTS.

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

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

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

15 would exceed $2,000,000),’’.

16 SEC. 204. INTEREST ON DEFAULTED LOANS.

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

18 U.S.C. 636(a)(4)(B)) is amended by adding at the end

19 the following:

20 ‘‘(iii) APPLICABILITY.—Clauses (i)

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

22 or after October 1, 2000.’’.

23 SEC. 205. PREPAYMENT OF LOANS.

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

25 636(a)(4)) is further amended—
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1 (1) by striking ‘‘(4) INTEREST RATES AND

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

3 PREPAYMENT CHARGES.—’’; and

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

5 ‘‘(C) PREPAYMENT CHARGES.—

6 ‘‘(i) IN GENERAL.—A borrower who

7 prepays any loan guaranteed under this

8 subsection shall remit to the Administra9 tion a subsidy recoupment fee calculated in

10 accordance with clause (ii) if—

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

12 less than 15 years;

13 ‘‘(II) the prepayment is vol14 untary;

15 ‘‘(III) the amount of prepayment

16 in any calendar year is more than 25

17 percent of the outstanding balance of

18 the loan; and

19 ‘‘(IV) the prepayment is made

20 within the first 3 years after disburse21 ment of the loan proceeds.

22 ‘‘(ii) SUBSIDY RECOUPMENT FEE.—

23 The subsidy recoupment fee charged under

24 clause (i) shall be—
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1 ‘‘(I) 5 percent of the amount of

2 prepayment, if the borrower prepays

3 during the first year after disburse4 ment;

5 ‘‘(II) 3 percent of the amount of

6 prepayment, if the borrower prepays

7 during the second year after disburse8 ment; and

9 ‘‘(III) 1 percent of the amount of

10 prepayment, if the borrower prepays

11 during the third year after disburse12 ment.’’.

13 SEC. 206. GUARANTEE FEES.

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

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

16 ‘‘(18) GUARANTEE FEES.—

17 ‘‘(A) IN GENERAL.—With respect to each

18 loan guaranteed under this subsection (other

19 than a loan that is repayable in 1 year or less),

20 the Administration shall collect a guarantee fee,

21 which shall be payable by the participating

22 lender, and may be charged to the borrower, as

23 follows:

24 ‘‘(i) A guarantee fee equal to 2 per25 cent of the deferred participation share of
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1 a total loan amount that is not more than

2 $150,000.

3 ‘‘(ii) A guarantee fee equal to 3 per4 cent of the deferred participation share of

5 a total loan amount that is more than

6 $150,000, but not more than $700,000.

7 ‘‘(iii) A guarantee fee equal to 3.5

8 percent of the deferred participation share

9 of a total loan amount that is more than

10 $700,000.

11 ‘‘(B) RETENTION OF CERTAIN FEES.—

12 Lenders participating in the programs estab13 lished under this subsection may retain not

14 more than 25 percent of a fee collected under

15 subparagraph (A)(i).’’.

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 SEC. 208. APPRAISALS FOR LOANS SECURED BY REAL

4 PROPERTY.

5 (a) SMALL BUSINESS ACT.—Section 7(a) of the

6 Small Business Act (15 U.S.C. 636(a)) is amended by

7 adding at the end the following:

8 ‘‘(29) REAL ESTATE APPRAISALS.—With re9 spect to a loan under this subsection that is secured

10 by commercial real property, an appraisal of such

11 property by a State licensed or certified appraiser—

12 ‘‘(A) shall be required by the Administra13 tion in connection with any such loan for more

14 than $250,000; or

15 ‘‘(B) may be required by the Administra16 tion or the lender in connection with any such

17 loan for $250,000 or less, if such appraisal is

18 necessary for appropriate evaluation of credit19 worthiness.’’.

20 (b) SMALL BUSINESS INVESTMENT ACT OF 1958.—

21 Section 502(3)(E) of the Small Business Investment Act

22 of 1958 (15 U.S.C. 696(3)(E)) is amended—

23 (1) by striking ‘‘The collateral’’ and inserting

24 the following:
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1 ‘‘(i) IN GENERAL.—The collateral’’;

2 and

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

4 ‘‘(ii) APPRAISALS.—With respect to

5 commercial real property provided by the

6 small business concern as collateral, an ap7 praisal of the property by a State licensed

8 or certified appraiser—

9 ‘‘(I) shall be required by the Ad10 ministration before disbursement of

11 the loan if the estimated value of that

12 property is more than $250,000; or

13 ‘‘(II) may be required by the Ad14 ministration or the lender before dis15 bursement of the loan if the estimated

16 value of that property is $250,000 or

17 less, and such appraisal is necessary

18 for appropriate evaluation of credit19 worthiness.’’.

20 SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EX21 PORT PURPOSES.

22 Section 5(f )(1)(C) of the Small Business Act (15

23 U.S.C. 634(f )(1)(C)) is amended to read as follows:
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1 ‘‘(C) each loan, except each loan made under

2 section 7(a)(14), shall have been fully disbursed to

3 the borrower prior to any sale.’’.

4 SEC. 210. MICROLOAN PROGRAM.

5 (a) IN GENERAL.—Section 7(m) of the Small Busi6 ness Act (15 U.S.C. 636(m)) is amended—

7 (1) in paragraphs (1)(B)(iii) and (3)(E), by

8 striking ‘‘$25,000’’ each place it appears and insert9 ing ‘‘$35,000’’;

10 (2) in paragraphs (1)(A)(iii)(I), (3)(A)(ii), and

11 (4)(C)(i)(II), by striking ‘‘$7,500’’ each place it ap12 pears and inserting ‘‘$10,000’’;

13 (3) in paragraph (3)(E), by striking ‘‘$15,000’’

14 and inserting ‘‘$20,000’’;

15 (4) in paragraph (5)(A)—

16 (A) by striking ‘‘25 grants’’ and inserting

17 ‘‘55 grants’’; and

18 (B) by striking ‘‘$125,000’’ and inserting

19 ‘‘$200,000’’;

20 (5) in paragraph (6)(B), by striking ‘‘$10,000’’

21 and inserting ‘‘$15,000’’; and

22 (6) in paragraph (7), by striking subparagraph

23 (A) and inserting the following:

24 ‘‘(A) NUMBER OF PARTICIPANTS.—Under

25 the program authorized by this subsection, the
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1 Administration may fund, on a competitive

2 basis, not more than 300 intermediaries.’’.

3 (b) CONFORMING AMENDMENTS.—Section

4 7(m)(11)(B) of the Small Business Act (15 U.S.C.

5 636(m)(11)(B)) is amended by striking ‘‘$25,000’’ and in6 serting ‘‘$35,000’’.

7 TITLE III—CERTIFIED DEVELOP8 MENT COMPANY PROGRAM

9 SEC. 301. SHORT TITLE.

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

11 Company Program Improvements Act of 2000’’.

12 SEC. 302. WOMEN-OWNED BUSINESSES.

13 Section 501(d)(3)(C) of the Small Business Invest14 ment Act of 1958 (15 U.S.C. 695(d)(3)(C)) is amended

15 by inserting before the comma ‘‘or women-owned business

16 development’’.

17 SEC. 303. MAXIMUM DEBENTURE SIZE.

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

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

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

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

22 such identifiable small business concern, except

23 loans meeting the criteria specified in section

24 501(d)(3), which shall be limited to $1,300,000 for

25 each such identifiable small business concern.’’.
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1 SEC. 304. FEES.

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

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

4 ‘‘(f ) EFFECTIVE DATE.—The fees authorized by sub5 sections (b) and (d) shall apply to financings approved by

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

7 not apply to financings approved by the Administration

8 on or after October 1, 2003.’’.

9 SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.

10 Section 217(b) of the Small Business Administration

11 Reauthorization and Amendments Act of 1994 (Public

12 Law 103–403, 15 U.S.C. 697 note) (relating to section

13 508 of the Small Business Investment Act of 1958) is re14 pealed.

15 SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.

16 Section 508 of the Small Business Investment Act

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

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

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

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

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

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

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

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

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

8 the Administration acquires a loan guaranteed under

9 this section and identifies such loan for inclusion in

10 a bulk asset sale of defaulted or repurchased loans

11 or other financings, it shall give prior notice thereof

12 to any certified development company which has a

13 contingent liability under this section. The notice

14 shall be given to the company as soon as possible

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

16 days before the date the Administration first makes

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

19 a package of loans for bulk sale.

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

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

22 part of a bulk sale unless it—

23 ‘‘(A) provides prospective purchasers with

24 the opportunity to examine the Administration’s

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

3 SEC. 307. LOAN LIQUIDATION.

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

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

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

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

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

10 with this section, the Administration shall delegate to any

11 qualified State or local development company (as defined

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

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

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

18 ‘‘(b) ELIGIBILITY FOR DELEGATION.—

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

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

22 ‘‘(A) the company—

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

25 Small Business Programs Improvement
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1 Act of 1996 (15 U.S.C. 695 note), as in

2 effect on the day before promulgation of

3 final regulations by the Administration im4 plementing this section;

5 ‘‘(ii) is participating in the Premier

6 Certified Lenders Program under section

7 508; or

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

10 has made an average of not less than 10

11 loans per year that are funded with the

12 proceeds of debentures guaranteed under

13 section 503; and

14 ‘‘(B) the company—

15 ‘‘(i) has one or more employees—

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

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

19 and workout of problem loans secured

20 in a manner substantially similar to

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

23 503; and

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

3 development companies that meet the

4 requirements of this paragraph; or

5 ‘‘(ii) submits to the Administration

6 documentation demonstrating that the

7 company has contracted with a qualified

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

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

12 and the terms and conditions of liquidation

13 activities.

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

17 company is eligible for the delegation of authority

18 under this section. If the Administration determines

19 that a company is not eligible, the Administration

20 shall provide the company with the reasons for such

21 ineligibility.

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

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

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

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

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

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

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

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

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

14 may—

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

16 ‘‘(I) the outcome of the litigation

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

20 or

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

23 a qualified State or local development

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

2 company; or

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

4 litigation; and

5 ‘‘(C) take other appropriate actions to

6 mitigate loan losses in lieu of total liquidation

7 or foreclosures, including the restructuring of a

8 loan in accordance with prudent loan servicing

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

11 paragraph (2)(C).

12 ‘‘(2) ADMINISTRATION APPROVAL.—

13 ‘‘(A) LIQUIDATION PLAN.—

14 ‘‘(i) IN GENERAL.—Before carrying

15 out functions described in paragraph

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

19 ‘‘(ii) ADMINISTRATION ACTION ON

20 PLAN.—

21 ‘‘(I) TIMING.—Not later than 15

22 business days after a liquidation plan

23 is received by the Administration

24 under clause (i), the Administration

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

2 With respect to any plan that cannot

3 be approved or denied within the 15-

4 day period required by subclause (I),

5 the Administration shall within such

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

8 that submitted the plan.

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

10 out functions described in paragraph

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

14 without obtaining additional approval from

15 the Administration.

16 ‘‘(B) PURCHASE OF INDEBTEDNESS.—

17 ‘‘(i) IN GENERAL.—In carrying out

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

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

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

23 of any other indebtedness secured by the

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

3 ‘‘(I) TIMING.—Not later than 15

4 business days after receiving a request

5 under clause (i), the Administration

6 shall approve or deny the request.

7 ‘‘(II) NOTICE OF NO DECISION.—

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

10 15-day period required by subclause

11 (I), the Administration shall within

12 such period provide in accordance

13 with subparagraph (E) notice to the

14 company that submitted the request.

15 ‘‘(C) WORKOUT PLAN.—

16 ‘‘(i) IN GENERAL.—In carrying out

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

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

20 proposed workout plan.

21 ‘‘(ii) ADMINISTRATION ACTION ON

22 PLAN.—

23 ‘‘(I) TIMING.—Not later than 15

24 business days after a workout plan is

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

2 approve or reject the plan.

3 ‘‘(II) NOTICE OF NO DECISION.—

4 With respect to any workout plan that

5 cannot be approved or denied within

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

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

10 the company that submitted the plan.

11 ‘‘(D) COMPROMISE OF INDEBTEDNESS.—

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

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

17 the full amount owing; and

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

21 written approval of the Administration.

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

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

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

3 the Administration’s inability to act on a

4 plan or request;

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

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

8 ‘‘(iv) if the Administration cannot act

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

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

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

15 functions described in paragraph (1), a qualified

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

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

21 participating in a liquidation, foreclosure, or loss

22 mitigation action.

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

2 determines that the company—

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

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

7 law; or

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

10 relating to carrying out of functions described in

11 paragraph (1).

12 ‘‘(e) REPORT.—

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

16 shall annually submit to the Committees on Small

17 Business of the House of Representatives and of the

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

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

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

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

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

2 company pursuant to a workout plan under this

3 section—

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

6 ‘‘(ii) the total original dollar amount

7 guaranteed by the Administration;

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

9 loan at the time of liquidation, foreclosure,

10 or mitigation of loss;

11 ‘‘(iv) the total dollar losses resulting

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

14 ‘‘(v) the total recoveries resulting

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

17 amount guaranteed and the total cost of

18 the project financed.

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

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

22 each of the amounts described in clauses (i)

23 through (v) of subparagraph (A).

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

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

4 ‘‘(D) A comparison between—

5 ‘‘(i) the information provided under

6 subparagraph (C) with respect to the 12-

7 month period preceding the date on which

8 the report is submitted; and

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

11 otherwise treated, by the Administration

12 during the same period.

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

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

20 regarding the reasons for the Administration’s

21 failure and any delays that resulted.’’.

22 (b) REGULATIONS.—

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

24 after the date of the enactment of this Act, the Ad25 ministrator shall issue such regulations as may be
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1 necessary to carry out section 510 of the Small

2 Business Investment Act of 1958, as added by sub3 section (a) of this section.

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

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

7 Small Business Programs Improvement Act of 1996

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

9 TITLE IV—CORRECTIONS TO

10 THE SMALL BUSINESS IN11 VESTMENT ACT OF 1958

12 SEC. 401. SHORT TITLE.

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

15 SEC. 402. DEFINITIONS.

16 (a) SMALL BUSINESS CONCERN.—Section

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

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

19 before the semicolon at the end the following: ‘‘regardless

20 of the allocation of control during the investment period

21 under any investment agreement between the business

22 concern and the entity making the investment’’.

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

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

2 end;

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

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

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

6 ‘‘(17) the term ‘long term’, when used in con7 nection with equity capital or loan funds invested in

8 any small business concern or smaller enterprise,

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

10 SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT

11 COMPANIES.

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

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

14 (1) by striking ‘‘(b) Notwithstanding’’ and in15 serting the following:

16 ‘‘(b) FINANCIAL INSTITUTION INVESTMENTS.—

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

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

19 ‘‘(2) CERTAIN SAVINGS ASSOCIATIONS.—Not20 withstanding any other provision of law, any Federal

21 savings association may invest in any one or more

22 small business investment companies, or in any enti23 ty established to invest solely in small business in24 vestment companies, except that in no event may the

25 total amount of such investments by any such Fed-
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1 eral savings association exceed 5 percent of the cap2 ital and surplus of the Federal savings association.’’.

3 SEC. 404. SUBSIDY FEES.

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

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

6 amended by striking ‘‘plus an additional charge of 1 per7 cent per annum which shall be paid to and retained by

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

9 obligated after September 30, 2000, an additional charge,

10 in an amount established annually by the Administration,

11 of not more than 1 percent per year as necessary to reduce

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

13 Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Ad14 ministration of purchasing and guaranteeing debentures

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

16 the Administration’’.

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

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

19 683(g)(2)) is amended by striking ‘‘plus an additional

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

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

22 participating securities obligated after September 30,

23 2000, an additional charge, in an amount established an24 nually by the Administration, of not more than 1 percent

25 per year as necessary to reduce to zero the cost (as defined
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1 in section 502 of the Federal Credit Reform Act of 1990

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

3 guaranteeing participating securities under this Act, which

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

5 SEC. 405. DISTRIBUTIONS.

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

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

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

9 inserting ‘‘subchapter S corporation’’;

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

11 based on a quarterly’’ and inserting ‘‘any time dur12 ing any calendar quarter based on an’’; and

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

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

15 for a calendar year,’’.

16 SEC. 406. CONFORMING AMENDMENT.

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

18 Act of 1958 (15 U.S.C. 687b(c)(4)) is amended by strik19 ing ‘‘five years’’ and inserting ‘‘1 year’’.

20 TITLE V—REAUTHORIZATION OF

21 SMALL BUSINESS PROGRAMS

22 SEC. 501. SHORT TITLE.

23 This title may be cited as the ‘‘Small Business Pro24 grams Reauthorization 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) DRUG-FREE WORKPLACE PROGRAM.—Section 27

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

16 (1) in the section heading, by striking ‘‘drug17 free workplace demonstration program’’ and insert18 ing ‘‘paul d. coverdell drug-free workplace program’’;

19 and

20 (2) in subsection (g)(1), by striking

21 ‘‘$10,000,000 for fiscal years 1999 and 2000’’ and

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

23 through 2003’’.
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1 (b) HUBZONE PROGRAM.—Section 31 of the Small

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

3 the end the following:

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

5 is authorized to be appropriated to carry out the program

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

7 years 2001 through 2003.’’.

8 (c) VERY SMALL BUSINESS CONCERNS PROGRAM.—

9 Section 304(i) of the Small Business Administration Re10 authorization and Amendments Act of 1994 (Public Law

11 103–403; 15 U.S.C. 644 note) is amended by striking

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

13 2003’’.

14 (d) SOCIALLY AND ECONOMICALLY DISADVANTAGED

15 BUSINESSES PROGRAM.—Section 7102(c) of the Federal

16 Acquisition Streamlining Act of 1994 (Public Law 103–

17 355; 15 U.S.C. 644 note) is amended by striking ‘‘Sep18 tember 30, 2000’’ and inserting ‘‘September 30, 2003’’.

19 (e) SBDC SERVICES.—Section 21(c)(3)(T) of the

20 Small Business Act (15 U.S.C. 648(c)(3)(T)) is amended

21 by striking ‘‘2000’’ and inserting ‘‘2003’’.

22 SEC. 504. COSPONSORSHIP.

23 (a) IN GENERAL.—Section 8(b)(1)(A) of the Small

24 Business Act (15 U.S.C. 637(b)(1)(A)) is amended to read

25 as follows:
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1 ‘‘(1)(A) to provide—

2 ‘‘(i) technical, managerial, and informa3 tional aids to small business concerns—

4 ‘‘(I) by advising and counseling on

5 matters in connection with Government

6 procurement and policies, principles, and

7 practices of good management;

8 ‘‘(II) by cooperating and advising

9 with—

10 ‘‘(aa) voluntary business, profes11 sional, educational, and other non12 profit organizations, associations, and

13 institutions (except that the Adminis14 tration shall take such actions as it

15 determines necessary to ensure that

16 such cooperation does not constitute

17 or imply an endorsement by the Ad18 ministration of the organization or its

19 products or services, and shall ensure

20 that it receives appropriate recogni21 tion in all printed materials); and

22 ‘‘(bb) other Federal and State

23 agencies;

24 ‘‘(III) by maintaining a clearinghouse

25 for information on managing, financing,
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1 and operating small business enterprises;

2 and

3 ‘‘(IV) by disseminating such informa4 tion, including through recognition events,

5 and by other activities that the Adminis6 tration determines to be appropriate; and

7 ‘‘(ii) through cooperation with a profit8 making concern (referred to in this paragraph

9 as a ‘cosponsor’), training, information, and

10 education to small business concerns, except

11 that the Administration shall—

12 ‘‘(I) take such actions as it deter13 mines to be appropriate to ensure that—

14 ‘‘(aa) the Administration receives

15 appropriate recognition and publicity;

16 ‘‘(bb) the cooperation does not

17 constitute or imply an endorsement by

18 the Administration of any product or

19 service of the cosponsor;

20 ‘‘(cc) unnecessary promotion of

21 the products or services of the cospon22 sor is avoided; and

23 ‘‘(dd) utilization of any one co24 sponsor in a marketing area is mini25 mized; and
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1 ‘‘(II) develop an agreement, executed

2 on behalf of the Administration by an em3 ployee of the Administration in Wash4 ington, the District of Columbia, that pro5 vides, at a minimum, that—

6 ‘‘(aa) any printed material to an7 nounce the cosponsorship or to be dis8 tributed at the cosponsored activity,

9 shall be approved in advance by the

10 Administration;

11 ‘‘(bb) the terms and conditions of

12 the cooperation shall be specified;

13 ‘‘(cc) only minimal charges may

14 be imposed on any small business con15 cern to cover the direct costs of pro16 viding the assistance;

17 ‘‘(dd) the Administration may

18 provide to the cosponsorship mailing

19 labels, but not lists of names and ad20 dresses of small business concerns

21 compiled by the Administration;

22 ‘‘(ee) all printed materials con23 taining the names of both the Admin24 istration and the cosponsor shall in25 clude a prominent disclaimer that the
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1 cooperation does not constitute or

2 imply an endorsement by the Adminis3 tration of any product or service of

4 the cosponsor; and

5 ‘‘(ff) the Administration shall en6 sure that it receives appropriate rec7 ognition in all cosponsorship printed

8 materials.’’.

9 (b) EXTENSION OF COSPONSORSHIP AUTHORITY.—

10 Section 401(a)(2) of the Small Business Administration

11 Reauthorization and Amendments Act of 1994 (15 U.S.C.

12 637 note) is amended by striking ‘‘September 30, 2000’’

13 and inserting ‘‘September 30, 2003’’.

14 TITLE VI—HUBZONE PROGRAM

15 Subtitle A—HUBZones in Native

16 America

17 SEC. 601. SHORT TITLE.

18 This subtitle may be cited as the ‘‘HUBZones in Na19 tive America Act of 2000’’.

20 SEC. 602. HUBZONE SMALL BUSINESS CONCERN.

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

22 632(p)(3)) is amended to read as follows:

23 ‘‘(3) HUBZONE SMALL BUSINESS CONCERN.—

24 The term ‘HUBZone small business concern’

25 means—
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1 ‘‘(A) a small business concern that is

2 owned and controlled by one or more persons,

3 each of whom is a United States citizen;

4 ‘‘(B) a small business concern that is—

5 ‘‘(i) an Alaska Native Corporation

6 owned and controlled by Natives (as deter7 mined pursuant to section 29(e)(1) of the

8 Alaska Native Claims Settlement Act (43

9 U.S.C. 1626(e)(1))); or

10 ‘‘(ii) a direct or indirect subsidiary

11 corporation, joint venture, or partnership

12 of an Alaska Native Corporation qualifying

13 pursuant to section 29(e)(1) of the Alaska

14 Native Claims Settlement Act (43 U.S.C.

15 1626(e)(1)), if that subsidiary, joint ven16 ture, or partnership is owned and con17 trolled by Natives (as determined pursuant

18 to section 29(e)(2)) of the Alaska Native

19 Claims Settlement Act (43 U.S.C.

20 1626(e)(2))); or

21 ‘‘(C) a small business concern—

22 ‘‘(i) that is wholly owned by one or

23 more Indian tribal governments, or by a

24 corporation that is wholly owned by one or

25 more Indian tribal governments; or
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1 ‘‘(ii) that is owned in part by one or

2 more Indian tribal governments, or by a

3 corporation that is wholly owned by one or

4 more Indian tribal governments, if all

5 other owners are either United States citi6 zens or small business concerns.’’.

7 SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CON8 CERN.

9 (a) IN GENERAL.—Section 3(p)(5)(A)(i) of the Small

10 Business Act (15 U.S.C. 632(p)(5)(A)(i)) is amended by

11 striking subclauses (I) and (II) and inserting the fol12 lowing:

13 ‘‘(I) it is a HUBZone small busi14 ness concern—

15 ‘‘(aa) pursuant to subpara16 graph (A) or (B) of paragraph

17 (3), and that its principal office

18 is located in a HUBZone and not

19 fewer than 35 percent of its em20 ployees reside in a HUBZone; or

21 ‘‘(bb) pursuant to paragraph

22 (3)(C), and not fewer than 35

23 percent of its employees engaged

24 in performing a contract awarded

25 to the small business concern on
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1 the basis of a preference provided

2 under section 31(b) reside within

3 any Indian reservation governed

4 by one or more of the tribal gov5 ernment owners, or reside within

6 any HUBZone adjoining any

7 such Indian reservation;

8 ‘‘(II) the small business concern

9 will attempt to maintain the applica10 ble employment percentage under sub11 clause (I) during the performance of

12 any contract awarded to the small

13 business concern on the basis of a

14 preference provided under section

15 31(b); and’’.

16 (b) CLARIFYING AMENDMENT.—Section

17 3(p)(5)(D)(i) of the Small Business Act (15 U.S.C.

18 632(p)(5)(D)(i)) is amended by inserting ‘‘once the Ad19 ministrator has made the certification required by sub20 paragraph (A)(i) regarding a qualified HUBZone small

21 business concern and has determined that subparagraph

22 (A)(ii) does not apply to that concern,’’ before ‘‘include’’.

23 SEC. 604. OTHER DEFINITIONS.

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

25 632(p)) is amended by adding at the end the following:
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1 ‘‘(6) NATIVE AMERICAN SMALL BUSINESS CON2 CERNS.—

3 ‘‘(A) ALASKA NATIVE CORPORATION.—The

4 term ‘Alaska Native Corporation’ has the same

5 meaning as the term ‘Native Corporation’ in

6 section 3 of the Alaska Native Claims Settle7 ment Act (43 U.S.C. 1602).

8 ‘‘(B) ALASKA NATIVE VILLAGE.—The term

9 ‘Alaska Native Village’ has the same meaning

10 as the term ‘Native village’ in section 3 of the

11 Alaska Native Claims Settlement Act (43

12 U.S.C. 1602).

13 ‘‘(C) INDIAN RESERVATION.—The term

14 ‘Indian reservation’—

15 ‘‘(i) has the same meaning as the

16 term ‘Indian country’ in section 1151 of

17 title 18, United States Code, except that

18 such term does not include—

19 ‘‘(I) any lands that are located

20 within a State in which a tribe did not

21 exercise governmental jurisdiction on

22 the date of the enactment of this

23 paragraph, unless that tribe is recog24 nized after that date of the enactment

25 by either an Act of Congress or pur-
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1 suant to regulations of the Secretary

2 of the Interior for the administrative

3 recognition that an Indian group ex4 ists as an Indian tribe (part 83 of

5 title 25, Code of Federal Regulations);

6 and

7 ‘‘(II) lands taken into trust or

8 acquired by an Indian tribe after the

9 date of the enactment of this para10 graph if such lands are not located

11 within the external boundaries of an

12 Indian reservation or former reserva13 tion or are not contiguous to the lands

14 held in trust or restricted status on

15 that date of the enactment; and

16 ‘‘(ii) in the State of Oklahoma, means

17 lands that—

18 ‘‘(I) are within the jurisdictional

19 areas of an Oklahoma Indian tribe (as

20 determined by the Secretary of the In21 terior); and

22 ‘‘(II) are recognized by the Sec23 retary of the Interior as eligible for

24 trust land status under part 151 of

25 title 25, Code of Federal Regulations
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1 (as in effect on the date of the enact2 ment of this paragraph).’’.

3 Subtitle B—Other HUBZone

4 Provisions

5 SEC. 611. DEFINITIONS.

6 (a) QUALIFIED CENSUS TRACT.—Section 3(p)(4)(A)

7 of the Small Business Act (15 U.S.C. 632(p)(4)(A)) is

8 amended by striking ‘‘(I)’’.

9 (b) QUALIFIED NONMETROPOLITAN COUNTY.—Sec10 tion 3(p)(4) of the Small Business Act (15 U.S.C.

11 632(p)(4)) is amended by striking subparagraph (B) and

12 inserting the following:

13 ‘‘(B) QUALIFIED NONMETROPOLITAN

14 COUNTY.—The term ‘qualified nonmetropolitan

15 county’ means any county—

16 ‘‘(i) that was not located in a metro17 politan statistical area (as defined in sec18 tion 143(k)(2)(B) of the Internal Revenue

19 Code of 1986) at the time of the most re20 cent census taken for purposes of selecting

21 qualified census tracts under section

22 42(d)(5)(C)(ii) of the Internal Revenue

23 Code of 1986; and

24 ‘‘(ii) in which—
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1 ‘‘(I) the median household in2 come is less than 80 percent of the

3 nonmetropolitan State median house4 hold income, based on the most recent

5 data available from the Bureau of the

6 Census of the Department of Com7 merce; or

8 ‘‘(II) the unemployment rate is

9 not less than 140 percent of the

10 Statewide average unemployment rate

11 for the State in which the county is

12 located, based on the most recent data

13 available from the Secretary of

14 Labor.’’.

15 SEC. 612. ELIGIBLE CONTRACTS.

16 (a) COMMODITIES CONTRACTS.—Section 31(b)(3) of

17 the Small Business Act (15 U.S.C. 657a(b)(3)) is

18 amended—

19 (1) by striking ‘‘In any’’ and inserting the fol20 lowing:

21 ‘‘(A) IN GENERAL.—Subject to subpara22 graph (B), in any’’; and

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

24 ‘‘(B) PROCUREMENT OF COMMODITIES.—

25 For purchases by the Secretary of Agriculture
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1 of agricultural commodities, the price evaluation

2 preference shall be—

3 ‘‘(i) 10 percent, for the portion of a

4 contract to be awarded that is not greater

5 than 25 percent of the total volume being

6 procured for each commodity in a single

7 invitation;

8 ‘‘(ii) 5 percent, for the portion of a

9 contract to be awarded that is greater than

10 25 percent, but not greater than 40 per11 cent, of the total volume being procured

12 for each commodity in a single invitation;

13 and

14 ‘‘(iii) zero, for the portion of a con15 tract to be awarded that is greater than 40

16 percent of the total volume being procured

17 for each commodity in a single invitation.

18 ‘‘(C) TREATMENT OF PREFERENCE.—A

19 contract awarded to a HUBZone small business

20 concern under a preference described in sub21 paragraph (B) shall not be counted toward the

22 fulfillment of any requirement partially set

23 aside for competition restricted to small busi24 ness concerns.’’.
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1 (b) DEFINITIONS.—Section 3(p) of the Small Busi2 ness Act (15 U.S.C. 632(p)), as amended by this Act, is

3 amended—

4 (1) in paragraph (5)(A)(i)(III)—

5 (A) in item (aa), by striking ‘‘and’’ at the

6 end; and

7 (B) by adding at the end the following:

8 ‘‘(cc) in the case of a con9 tract for the procurement by the

10 Secretary of Agriculture of agri11 cultural commodities, none of the

12 commodity being procured will be

13 obtained by the prime contractor

14 through a subcontract for the

15 purchase of the commodity in

16 substantially the final form in

17 which it is to be supplied to the

18 Government; and’’; and

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

20 ‘‘(7) AGRICULTURAL COMMODITY.—The term

21 ‘agricultural commodity’ has the same meaning as in

22 section 102 of the Agricultural Trade Act of 1978

23 (7 U.S.C. 5602).’’.
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1 SEC. 613. HUBZONE REDESIGNATED AREAS.

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

3 632(p)) is amended—

4 (1) in paragraph (1)—

5 (A) in subparagraph (B), by striking ‘‘or’’

6 at the end;

7 (B) in subparagraph (C), by striking the

8 period at the end and inserting ‘‘; or’’; and

9 (C) by adding at the end the following:

10 ‘‘(D) redesignated areas.’’; and

11 (2) in paragraph (4), by adding at the end the

12 following:

13 ‘‘(C) REDESIGNATED AREA.—The term

14 ‘redesignated area’ means any census tract that

15 ceases to be qualified under subparagraph (A)

16 and any nonmetropolitan county that ceases to

17 be qualified under subparagraph (B), except

18 that a census tract or a nonmetropolitan county

19 may be a ‘redesignated area’ only for the 3-year

20 period following the date on which the census

21 tract or nonmetropolitan county ceased to be so

22 qualified.’’.

23 SEC. 614. COMMUNITY DEVELOPMENT.

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

25 632(p)), as amended by this Act, is amended—

26 (1) in paragraph (3)—
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1 (A) in subparagraph (B), by striking ‘‘or’’

2 at the end;

3 (B) in subparagraph (C), by striking the

4 period at the end and inserting ‘‘; or’’; and

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

6 ‘‘(D) a small business concern that is—

7 ‘‘(i) wholly owned by a community de8 velopment corporation that has received fi9 nancial assistance under part 1 of sub10 chapter A of the Community Economic De11 velopment Act of 1981 (42 U.S.C. 9805 et

12 seq.); or

13 ‘‘(ii) owned in part by one or more

14 community development corporations, if all

15 other owners are either United States citi16 zens or small business concerns.’’; and

17 (2) in paragraph (5)(A)(i)(I)(aa), by striking

18 ‘‘subparagraph (A) or (B)’’ and inserting ‘‘subpara19 graph (A), (B), or (D)’’.

20 SEC. 615. REFERENCE CORRECTIONS.

21 (a) SECTION 3.—Section 3(p)(5)(C) of the Small

22 Business Act (15 U.S.C. 632(p)(5)(C)) is amended by

23 striking ‘‘subclause (IV) and (V) of subparagraph (A)(i)’’

24 and inserting ‘‘items (aa) and (bb) of subparagraph

25 (A)(i)(III)’’.
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1 (b) SECTION 8.—Section 8(d)(4)(D) of the Small

2 Business Act (15 U.S.C. 637(d)(4)(D)) is amended by in3 serting ‘‘qualified HUBZone small business concerns,’’

4 after ‘‘small business concerns,’’.

5 TITLE VII—NATIONAL WOMEN’S

6 BUSINESS COUNCIL REAU7 THORIZATION

8 SEC. 701. SHORT TITLE.

9 This title may be cited as the ‘‘National Women’s

10 Business Council Reauthorization Act of 2000’’.

11 SEC. 702. MEMBERSHIP OF THE COUNCIL.

12 Section 407 of the Women’s Business Ownership Act

13 of 1988 (15 U.S.C. 631 note) is amended—

14 (1) in subsection (a), by striking ‘‘Not later’’

15 and all that follows through ‘‘the President’’ and in16 serting ‘‘The President’’;

17 (2) in subsection (b)—

18 (A) by striking ‘‘Not later’’ and all that

19 follows through ‘‘the Administrator’’ and insert20 ing ‘‘The Administrator’’; and

21 (B) by striking ‘‘the Assistant Adminis22 trator of the Office of Women’s Business Own23 ership and’’;
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1 (3) in subsection (d), by striking ‘‘, except

2 that’’ and all that follows through the end of the

3 subsection and inserting a period; and

4 (4) in subsection (h), by striking ‘‘Not later’’

5 and all that follows through ‘‘the Administrator’’

6 and inserting ‘‘The Administrator’’.

7 SEC. 703. REPEAL OF PROCUREMENT PROJECT.

8 Section 409 of the Women’s Business Ownership Act

9 of 1988 (15 U.S.C. 631 note) is repealed.

10 SEC. 704. STUDIES AND OTHER RESEARCH.

11 Section 410 of the Women’s Business Ownership Act

12 of 1988 (15 U.S.C. 631 note) is amended to read as fol13 lows:

14 ‘‘SEC. 409. STUDIES AND OTHER RESEARCH.

15 ‘‘(a) IN GENERAL.—The Council may conduct such

16 studies and other research relating to the award of Fed17 eral prime contracts and subcontracts to women-owned

18 businesses, to access to credit and investment capital by

19 women entrepreneurs, or to other issues relating to

20 women-owned businesses, as the Council determines to be

21 appropriate.

22 ‘‘(b) CONTRACT AUTHORITY.—In conducting any

23 study or other research under this section, the Council

24 may contract with one or more public or private entities.’’.
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1 SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

2 Section 411 of the Women’s Business Ownership Act

3 of 1988 (15 U.S.C. 631 note) is amended to read as fol4 lows:

5 ‘‘SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

6 ‘‘(a) IN GENERAL.—There is authorized to be appro7 priated to carry out this title $1,000,000, for each of fiscal

8 years 2001 through 2003, of which $550,000 shall be

9 available in each such fiscal year to carry out section 409.

10 ‘‘(b) BUDGET REVIEW.—No amount made available

11 under this section for any fiscal year may be obligated or

12 expended by the Council before the date on which the

13 Council reviews and approves the operating budget of the

14 Council to carry out the responsibilities of the Council for

15 that fiscal year.’’.

16 TITLE VIII—MISCELLANEOUS

17 PROVISIONS

18 SEC. 801. LOAN APPLICATION PROCESSING.

19 (a) STUDY.—The Administrator of the Small Busi20 ness Administration shall conduct a study to determine

21 the average time that the Administration requires to proc22 ess an application for each type of loan or loan guarantee

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

24 seq.).

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

26 date of the enactment of this Act, the Administrator shall
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1 transmit to Congress the results of the study conducted

2 under subsection (a).

3 SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS.

4 (a) SMALL BUSINESS ACT.—Section 7(a) of the

5 Small Business Act (15 U.S.C. 636(a)) is amended by

6 adding at the end the following:

7 ‘‘(30) OWNERSHIP REQUIREMENTS.—Owner8 ship requirements to determine the eligibility of a

9 small business concern that applies for assistance

10 under any credit program under this Act shall be de11 termined without regard to any ownership interest of

12 a spouse arising solely from the application of the

13 community property laws of a State for purposes of

14 determining marital interests.’’.

15 (b) SMALL BUSINESS INVESTMENT ACT OF 1958.—

16 Section 502 of the Small Business Investment Act of 1958

17 (15 U.S.C. 696) is amended by adding at the end the fol18 lowing:

19 ‘‘(6) OWNERSHIP REQUIREMENTS.—Ownership

20 requirements to determine the eligibility of a small

21 business concern that applies for assistance under

22 any credit program under this title shall be deter23 mined without regard to any ownership interest of a

24 spouse arising solely from the application of the
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1 community property laws of a State for purposes of

2 determining marital interests.’’.

3 SEC. 803. SUBCONTRACTING PREFERENCE FOR VETERANS.

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

5 637(d)) is amended—

6 (1) in paragraph (1), by inserting ‘‘small busi7 ness concerns owned and controlled by veterans,’’

8 after ‘‘small business concerns,’’ the first place that

9 term appears in each of the first and second sen10 tences;

11 (2) in paragraph (3)—

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

13 ‘‘small business concerns owned and controlled

14 by service-disabled veterans,’’ after ‘‘small busi15 ness concerns owned and controlled by vet16 erans,’’ in each of the first and second sen17 tences; and

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

19 ‘‘small business concern owned and controlled

20 by service-disabled veterans,’’ after ‘‘small busi21 ness concern owned and controlled by vet22 erans,’’; and

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

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

25 ‘‘small business concerns owned and controlled by
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1 service-disabled veterans,’’ after ‘‘small business con2 cerns owned and controlled by veterans,’’.

3 SEC. 804. SMALL BUSINESS DEVELOPMENT CENTER PRO4 GRAM FUNDING.

5 (a) AUTHORIZATION.—

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

7 Small Business Act (15 U.S.C. 631 note) is amend8 ed by striking ‘‘For fiscal year 1985’’ and all that

9 follows through ‘‘expended.’’ and inserting the fol10 lowing: ‘‘For fiscal year 2000 and each fiscal year

11 thereafter, there are authorized to be appropriated

12 such sums as may be necessary and appropriate, to

13 remain available until expended, and to be available

14 solely—

15 ‘‘(A) to carry out the Small Business Develop16 ment Center Program under section 21, but not to

17 exceed the annual funding level, as specified in sec18 tion 21(a);

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

20 Business Development Center Advisory Board, as

21 provided in section 21(i);

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

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

24 ‘‘(D) to pay the expenses of the association re25 ferred to in section 21(a)(3)(A) for conducting the
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1 certification program, as provided in section

2 21(k)(2); and

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

4 including salaries of examiners, for conducting ex5 aminations as part of the certification program con6 ducted by the association referred to in section

7 21(a)(3)(A).’’.

8 (2) TECHNICAL AMENDMENT.—Section 20(a) of

9 the Small Business Act (15 U.S.C. 631 note) is

10 amended by moving the margins of paragraphs (3)

11 and (4), including subparagraphs (A) and (B) of

12 paragraph (4), 2 ems to the left.

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

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

15 to read as follows:

16 ‘‘(C) FUNDING FORMULA.—

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

18 the amount of a formula grant received by a

19 State under this subparagraph shall be equal to

20 an amount determined in accordance with the

21 following formula:

22 ‘‘(I) The annual amount made avail23 able under section 20(a) for the Small

24 Business Development Center Program,

25 less any reductions made for expenses au-
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1 thorized by clause (v) of this subpara2 graph, shall be divided on a pro rata basis,

3 based on the percentage of the population

4 of each State, as compared to the popu5 lation of the United States.

6 ‘‘(II) If the pro rata amount cal7 culated under subclause (I) for any State

8 is less than the minimum funding level

9 under clause (iii), the Administration shall

10 determine the aggregate amount necessary

11 to achieve that minimum funding level for

12 each such State.

13 ‘‘(III) The aggregate amount cal14 culated under subclause (II) shall be de15 ducted from the amount calculated under

16 subclause (I) for States eligible to receive

17 more than the minimum funding level. The

18 deductions shall be made on a pro rata

19 basis, based on the population of each such

20 State, as compared to the total population

21 of all such States.

22 ‘‘(IV) The aggregate amount deducted

23 under subclause (III) shall be added to the

24 grants of those States that are not eligible

25 to receive more than the minimum funding
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1 level in order to achieve the minimum

2 funding level for each such State, except

3 that the eligible amount of a grant to any

4 State shall not be reduced to an amount

5 below the minimum funding level.

6 ‘‘(ii) GRANT DETERMINATION.—The

7 amount of a grant that a State is eligible to

8 apply for under this subparagraph shall be the

9 amount determined under clause (i), subject to

10 any modifications required under clause (iii),

11 and shall be based on the amount available for

12 the fiscal year in which performance of the

13 grant commences, but not including amounts

14 distributed in accordance with clause (iv). The

15 amount of a grant received by a State under

16 any provision of this subparagraph shall not ex17 ceed the amount of matching funds from

18 sources other than the Federal Government, as

19 required under subparagraph (A).

20 ‘‘(iii) MINIMUM FUNDING LEVEL.—The

21 amount of the minimum funding level for each

22 State shall be determined for each fiscal year

23 based on the amount made available for that

24 fiscal year to carry out this section, as follows:
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1 ‘‘(I) If the amount made available is

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

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

4 level shall be $500,000.

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

6 less than $81,500,000, the minimum fund7 ing level shall be the remainder of

8 $500,000 minus a percentage of $500,000

9 equal to the percentage amount by which

10 the amount made available is less than

11 $81,500,000.

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

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

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

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

16 percentage amount by which the amount

17 made available exceeds $90,000,000.

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

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

20 full funding eligibility for a fiscal year, the Ad21 ministration shall distribute the remaining

22 funds as follows:

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

24 than the amount received by that State in

25 fiscal year 2000, the Administration shall
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1 distribute such remaining funds, on a pro

2 rata basis, based on the percentage of

3 shortage of each such State, as compared

4 to the total amount of such remaining

5 funds available, to the extent necessary in

6 order to increase the amount of the grant

7 to the amount received by that State in fis8 cal year 2000, or until such funds are ex9 hausted, whichever first occurs.

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

11 application of subclause (I), the remaining

12 amount may be distributed as supple13 mental grants to any State, as the Admin14 istration determines, in its discretion, to be

15 appropriate, after consultation with the as16 sociation referred to in subsection

17 (a)(3)(A).

18 ‘‘(v) USE OF AMOUNTS.—

19 ‘‘(I) IN GENERAL.—Of the amounts

20 made available in any fiscal year to carry

21 out this section—

22 ‘‘(aa) not more than $500,000

23 may be used by the Administration to

24 pay expenses enumerated in subpara-
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1 graphs (B) through (D) of section

2 20(a)(1); and

3 ‘‘(bb) not more than $500,000

4 may be used by the Administration to

5 pay the examination expenses enumer6 ated in section 20(a)(1)(E).

7 ‘‘(II) LIMITATION.—No funds de8 scribed in subclause (I) may be used for

9 examination expenses under section

10 20(a)(1)(E) if the usage would reduce the

11 amount of grants made available under

12 clause (i)(I) of this subparagraph to less

13 than $85,000,000 (after excluding any

14 amounts provided in appropriations Acts

15 for specific institutions or for purposes

16 other than the general small business de17 velopment center program) or would fur18 ther reduce the amount of such grants

19 below such amount.

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

21 State by the Administration or another Federal

22 agency to carry out subsection (a)(6) or

23 (c)(3)(G), or for supplemental grants set forth

24 in clause (iv)(II) of this subparagraph, shall not

25 be included in the calculation of maximum
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1 funding for a State under clause (ii) of this

2 subparagraph.

3 ‘‘(vii) AUTHORIZATION OF APPROPRIA4 TIONS.—There is authorized to be appropriated

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

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

7 ‘‘(viii) STATE DEFINED.—In this subpara8 graph, the term ‘State’ means each of the sev9 eral States, the District of Columbia, the Com10 monwealth of Puerto Rico, the Virgin Islands,

11 Guam, and American Samoa.’’.

12 SEC. 805. SURETY BONDS.

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

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

15 amended—

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

17 ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’; and

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

19 ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’.

20 (b) EXTENSION OF CERTAIN AUTHORITY.—Section

21 207 of the Small Business Administration Reauthorization

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

23 amended by striking ‘‘2000’’ and inserting ‘‘2003’’.
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1 SEC. 806. SIZE STANDARDS.

2 (a) INDUSTRY CLASSIFICATIONS.—Section 15(a) of

3 the Small Business Act (15 U.S.C. 644(a)) is amended

4 in the eighth sentence, by striking ‘‘four-digit standard’’

5 and all that follows through ‘‘published’’ and inserting

6 ‘‘definition of a ‘United States industry’ under the North

7 American Industry Classification System, as established’’.

8 (b) ANNUAL RECEIPTS.—Section 3(a)(1) of the

9 Small Business Act (15 U.S.C. 632(a)(1)) is amended by

10 striking ‘‘$500,000’’ and inserting ‘‘$750,000’’.

11 SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SEC12 TION 8(a).

13 Section 8(a)(15)(A) of the Small Business Act (15

14 U.S.C. 637(a)(15)(A)) is amended to read as follows:

15 ‘‘(A) is a nonprofit corporation that has filed

16 articles of incorporation with the director (or the

17 designee thereof) of the Hawaii Department of Com18 merce and Consumer Affairs, or any successor agen19 cy,’’.

20 SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT

21 CORPORATION CORRECTION.

22 Section 33(k) of the Small Business Act (15 U.S.C.

23 657c(k)) is amended—

24 (1) by striking paragraph (1) and inserting the

25 following:
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1 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

2 there are authorized to be appropriated to the Cor3 poration to carry out this section—

4 ‘‘(A) $4,000,000 for fiscal year 2001;

5 ‘‘(B) $4,000,000 for fiscal year 2002;

6 ‘‘(C) $2,000,000 for fiscal year 2003; and

7 ‘‘(D) $2,000,000 for fiscal year 2004.’’;

8 (2) in paragraph (2)(A), by striking ‘‘2001’’

9 each place it appears and inserting ‘‘2002’’; and

10 (3) in paragraph (2)(B), by striking ‘‘2002 or

11 2003’’ and inserting ‘‘2003 or 2004’’.

12 SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE.

13 Section 8(b)(1)(B) of the Small Business Act (15

14 U.S.C. 637(b)(1)(B)) is amended by adding at the end

15 the following: ‘‘Notwithstanding any other provision of

16 law, SCORE may solicit cash and in-kind contributions

17 from the private sector to be used to carry out its func18 tions under this Act, and may use payments made by the

19 Administration pursuant to this subparagraph for such so20 licitation.’’.

21 SEC. 810. CONTRACT DATA COLLECTION.

22 Section 15 of the Small Business Act (15 U.S.C. 644)

23 is amended by adding at the end the following new sub24 section:
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1 ‘‘(p) DATABASE, ANALYSIS, AND ANNUAL REPORT

2 WITH RESPECT TO BUNDLED CONTRACTS.—

3 ‘‘(1) BUNDLED CONTRACT DEFINED.—In this

4 subsection, the term ‘bundled contract’ has the

5 meaning given such term in section 3(o)(1).

6 ‘‘(2) DATABASE.—

7 ‘‘(A) IN GENERAL.—Not later than 180

8 days after the date of the enactment of this

9 subsection, the Administrator of the Small

10 Business Administration shall develop and shall

11 thereafter maintain a database containing data

12 and information regarding—

13 ‘‘(i) each bundled contract awarded by

14 a Federal agency; and

15 ‘‘(ii) each small business concern that

16 has been displaced as a prime contractor

17 as a result of the award of such a contract.

18 ‘‘(3) ANALYSIS.—For each bundled contract

19 that is to be recompeted as a bundled contract, the

20 Administrator shall determine—

21 ‘‘(A) the amount of savings and benefits

22 (in accordance with subsection (e)) achieved

23 under the bundling of contract requirements;

24 and
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1 ‘‘(B) whether such savings and benefits

2 will continue to be realized if the contract re3 mains bundled, and whether such savings and

4 benefits would be greater if the procurement re5 quirements were divided into separate solicita6 tions suitable for award to small business con7 cerns.

8 ‘‘(4) ANNUAL REPORT ON CONTRACT BUN9 DLING.—

10 ‘‘(A) IN GENERAL.—Not later than 1 year

11 after the date of the enactment of this para12 graph, and annually in March thereafter, the

13 Administration shall transmit a report on con14 tract bundling to the Committees on Small

15 Business of the House of Representatives and

16 the Senate.

17 ‘‘(B) CONTENTS.—Each report trans18 mitted under subparagraph (A) shall include—

19 ‘‘(i) data on the number, arranged by

20 industrial classification, of small business

21 concerns displaced as prime contractors as

22 a result of the award of bundled contracts

23 by Federal agencies; and

24 ‘‘(ii) a description of the activities

25 with respect to previously bundled con-
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1 tracts of each Federal agency during the

2 preceding year, including—

3 ‘‘(I) data on the number and

4 total dollar amount of all contract re5 quirements that were bundled; and

6 ‘‘(II) with respect to each bun7 dled contract, data or information

8 on—

9 ‘‘(aa) the justification for

10 the bundling of contract require11 ments;

12 ‘‘(bb) the cost savings real13 ized by bundling the contract re14 quirements over the life of the

15 contract;

16 ‘‘(cc) the extent to which

17 maintaining the bundled status

18 of contract requirements is pro19 jected to result in continued cost

20 savings;

21 ‘‘(dd) the extent to which

22 the bundling of contract require23 ments complied with the con24 tracting agency’s small business

25 subcontracting plan, including
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1 the total dollar value awarded to

2 small business concerns as sub3 contractors and the total dollar

4 value previously awarded to small

5 business concerns as prime con6 tractors; and

7 ‘‘(ee) the impact of the bun8 dling of contract requirements on

9 small business concerns unable to

10 compete as prime contractors for

11 the consolidated requirements

12 and on the industries of such

13 small business concerns, includ14 ing a description of any changes

15 to the proportion of any such in16 dustry that is composed of small

17 business concerns.

18 ‘‘(5) ACCESS TO DATA.—

19 ‘‘(A) FEDERAL PROCUREMENT DATA SYS20 TEM.—To assist in the implementation of this

21 section, the Administration shall have access to

22 information collected through the Federal Pro23 curement Data System.

24 ‘‘(B) AGENCY PROCUREMENT DATA

25 SOURCES.—To assist in the implementation of
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1 this section, the head of each contracting agen2 cy shall provide, upon request of the Adminis3 tration, procurement information collected

4 through existing agency data collection

5 sources.’’.

6 SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED

7 SMALL BUSINESS CONCERNS.

8 Section 8 of the Small Business Act (15 U.S.C. 637)

9 is amended by adding at the end the following:

10 ‘‘(m) PROCUREMENT PROGRAM FOR WOMEN-OWNED

11 SMALL BUSINESS CONCERNS.—

12 ‘‘(1) DEFINITIONS.—In this subsection, the fol13 lowing definitions apply:

14 ‘‘(A) CONTRACTING OFFICER.—The term

15 ‘contracting officer’ has the meaning given such

16 term in section 27(f )(5) of the Office of Fed17 eral Procurement Policy Act (41 U.S.C.

18 423(f )(5)).

19 ‘‘(B) SMALL BUSINESS CONCERN OWNED

20 AND CONTROLLED BY WOMEN.—The term

21 ‘small business concern owned and controlled by

22 women’ has the meaning given such term in

23 section 3(n), except that ownership shall be de24 termined without regard to any community

25 property law.
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1 ‘‘(2) AUTHORITY TO RESTRICT COMPETITION.—

2 In accordance with this subsection, a contracting of3 ficer may restrict competition for any contract for

4 the procurement of goods or services by the Federal

5 Government to small business concerns owned and

6 controlled by women, if—

7 ‘‘(A) each of the concerns is not less than

8 51 percent owned by one or more women who

9 are economically disadvantaged (and such own10 ership is determined without regard to any

11 community property law);

12 ‘‘(B) the contracting officer has a reason13 able expectation that two or more small busi14 ness concerns owned and controlled by women

15 will submit offers for the contract;

16 ‘‘(C) the contract is for the procurement of

17 goods or services with respect to an industry

18 identified by the Administrator pursuant to

19 paragraph (3);

20 ‘‘(D) the anticipated award price of the

21 contract (including options) does not exceed—

22 ‘‘(i) $5,000,000, in the case of a con23 tract assigned an industrial classification

24 code for manufacturing; or
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1 ‘‘(ii) $3,000,000, in the case of all

2 other contracts;

3 ‘‘(E) in the estimation of the contracting

4 officer, the contract award can be made at a

5 fair and reasonable price; and

6 ‘‘(F) each of the concerns—

7 ‘‘(i) is certified by a Federal agency,

8 a State government, or a national certi9 fying entity approved by the Adminis10 trator, as a small business concern owned

11 and controlled by women; or

12 ‘‘(ii) certifies to the contracting officer

13 that it is a small business concern owned

14 and controlled by women and provides ade15 quate documentation, in accordance with

16 standards established by the Administra17 tion, to support such certification.

18 ‘‘(3) WAIVER.—With respect to a small busi19 ness concern owned and controlled by women, the

20 Administrator may waive subparagraph (2)(A) if the

21 Administrator determines that the concern is in an

22 industry in which small business concerns owned

23 and controlled by women are substantially underrep24 resented.
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1 ‘‘(4) IDENTIFICATION OF INDUSTRIES.—The

2 Administrator shall conduct a study to identify in3 dustries in which small business concerns owned and

4 controlled by women are underrepresented with re5 spect to Federal procurement contracting.

6 ‘‘(5) ENFORCEMENT; PENALTIES.—

7 ‘‘(A) VERIFICATION OF ELIGIBILITY.—In

8 carrying out this subsection, the Administrator

9 shall establish procedures relating to—

10 ‘‘(i) the filing, investigation, and dis11 position by the Administration of any chal12 lenge to the eligibility of a small business

13 concern to receive assistance under this

14 subsection (including a challenge, filed by

15 an interested party, relating to the veracity

16 of a certification made or information pro17 vided to the Administration by a small

18 business concern under paragraph (2)(F));

19 and

20 ‘‘(ii) verification by the Administrator

21 of the accuracy of any certification made

22 or information provided to the Administra23 tion by a small business concern under

24 paragraph (2)(F).
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1 ‘‘(B) EXAMINATIONS.—The procedures es2 tablished under subparagraph (A) may provide

3 for program examinations (including random

4 program examinations) by the Administrator of

5 any small business concern making a certifi6 cation or providing information to the Adminis7 trator under paragraph (2)(F).

8 ‘‘(C) PENALTIES.—In addition to the pen9 alties described in section 16(d), any small busi10 ness concern that is determined by the Admin11 istrator to have misrepresented the status of

12 that concern as a small business concern owned

13 and controlled by women for purposes of this

14 subsection, shall be subject to—

15 ‘‘(i) section 1001 of title 18, United

16 States Code; and

17 ‘‘(ii) sections 3729 through 3733 of

18 title 31, United States Code.

19 ‘‘(6) PROVISION OF DATA.—Upon the request

20 of the Administrator, the head of any Federal de21 partment or agency shall promptly provide to the

22 Administrator such information as the Adminis23 trator determines to be necessary to carry out this

24 subsection.’’.

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