I

103D CONGRESS

2D SESSION H. R. 4801

To amend the Small Business Act, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 20, 1994

Mr. LAFALCE (for himself, Mr. SMITH of Iowa, Mr. SKELTON, Mr. MAZZOLI,

Mr. WYDEN, Mr. BILBRAY, Mr. MFUME, Mr. KLINK, Ms. ROYBALALLARD, Mr. HILLIARD, and Mr. THOMPSON of Mississippi) introduced

the following bill; which was referred to the Committee on Small Business

A BILL

To amend the Small Business Act, 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 That this Act may be cited as the ‘‘Small Business Reau4 thorization and Amendment Act of 1994’’.

5 TITLE I—AUTHORIZATIONS

6 SEC. 101. AUTHORIZATIONS.

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

8 note) is amended by striking all of such section after sub9 section (k), as added by section 115(a) of the Small Busi10 ness Credit and Business Opportunity Enhancement Act

11 of 1992, and by inserting in lieu thereof the following:
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1 ‘‘(l) The following program levels are authorized for

2 fiscal year 1995:

3 ‘‘(1) For the programs authorized by this Act,

4 the Administration is authorized to make

5 $142,000,000 in direct and immediate participation

6 loans; and of such sum, the Administration is au7 thorized to make $12,000,000 in loans as provided

8 in section 7(a)(10) and $130,000,000 in loans as

9 provided in section 7(m).

10 ‘‘(2) For the programs authorized by this Act,

11 the Administration is authorized to make

12 $12,320,000,000 in deferred participation loans and

13 other financings. Of such sum, the Administration is

14 authorized to make—

15 ‘‘(A) $9,315,000,000 in general business

16 loans as provided in section 7(a);

17 ‘‘(B) $2,200,000,000 in financings as pro18 vided in section 7(a)(13) and section 504 of the

19 Small Business Investment Act of 1958; and

20 ‘‘(C) $20,000,000 in loans as provided in

21 section 7(m).

22 ‘‘(3) For the programs authorized by title III of

23 the Small Business Investment Act of 1958, the Ad24 ministration is authorized to make—
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1 ‘‘(A) $33,000,000 in purchases of pre2 ferred securities;

3 ‘‘(B) $285,000,000 in guarantees of de4 bentures, of which $55,000,000 is authorized in

5 guarantees of debentures from companies oper6 ating pursuant to section 301(d) of such Act;

7 and

8 ‘‘(C) $500,000,000 in guarantees of par9 ticipating securities.

10 ‘‘(4) For the programs authorized by part B of

11 title IV of the Small Business Investment Act of

12 1958, the Administration is authorized to enter into

13 guarantees not to exceed $1,800,000,000, of which

14 not more than $600,000,000 may be in bonds ap15 proved pursuant to the provisions of section

16 411(a)(3) of such Act.

17 ‘‘(5) For the Service Corps of Retired Execu18 tives program authorized by section 8(b)(1) of this

19 Act, the Administration is authorized to make

20 grants or enter cooperative agreements not to exceed

21 $3,500,000, and for the small business institute pro22 gram authorized by section 8(b)(1) of this Act, the

23 Administration is authorized to make grants or

24 enter cooperative agreements not to exceed

25 $3,000,000.
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1 ‘‘(m) There are authorized to be appropriated to the

2 Administration for fiscal year 1995 such sums as may be

3 necessary to carry out the provisions of this Act, including

4 administrative expenses and necessary loan capital for dis5 aster loans pursuant to section 7(b), and to carry out the

6 provisions of the Small Business Investment Act of 1958,

7 including salaries and expenses of the Administration.

8 ‘‘(n) The following program levels are authorized for

9 fiscal year 1996:

10 ‘‘(1) For the programs authorized by this Act,

11 the Administration is authorized to make

12 $208,000,000 in direct and immediate participation

13 loans; and of such sum the Administration is author14 ized to make $13,000,000 in loans as provided in

15 section 7(a)(10) and $195,000,000 in loans as pro16 vided in section 7(m).

17 ‘‘(2) For the programs authorized by this Act,

18 the Administration is authorized to make

19 $14,610,000,000 in deferred participation loans and

20 other financings. Of such sum, the Administration is

21 authorized to make—

22 ‘‘(A) $10,935,000,000 in general business

23 loans as provided in section 7(a);
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1 ‘‘(B) $2,500,000,000 in financings as pro2 vided in section 7(a)(13) and section 504 of the

3 Small Business Investment Act of 1958; and

4 ‘‘(C) $20,000,000 in loans as provided in

5 section 7(m).

6 ‘‘(3) For the programs authorized by title III of

7 the Small Business Investment Act of 1958, the Ad8 ministration is authorized to make—

9 ‘‘(A) $39,000,000 in purchases of pre10 ferred securities;

11 ‘‘(B) $405,000,000 in guarantees of de12 bentures, of which $55,000,000 is authorized in

13 guarantees of debentures from companies oper14 ating pursuant to section 301(d) of such Act;

15 and

16 ‘‘(C) $750,000,000 in guarantees of par17 ticipating securities.

18 ‘‘(4) For the programs authorized by part B of

19 title IV of the Small Business Investment Act of

20 1958, the Administration is authorized to enter into

21 guarantees not to exceed $1,800,000,000, of which

22 not more than $600,000,000 may be in bonds ap23 proved pursuant to the provisions of section

24 411(a)(3) of such Act.
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1 ‘‘(5) For the Service Corps of Retired Execu2 tives program authorized by section 8(b)(1) of this

3 Act, the Administration is authorized to make

4 grants or enter cooperative agreements not to exceed

5 $3,675,000, and for the small business institute pro6 gram authorized by section 8(b)(1) of this Act, the

7 Administration is authorized to make grants or

8 enter cooperative agreements not to exceed

9 $3,150,000.

10 ‘‘(o) There are authorized to be appropriated to the

11 Administration for fiscal year 1996 such sums as may be

12 necessary to carry out the provisions of this Act, including

13 administrative expenses and necessary loan capital for dis14 aster loans pursuant to section 7(b), and to carry out the

15 provisions of the Small Business Investment Act of 1958,

16 including salaries and expenses of the Administration.

17 ‘‘(p) The following program levels are authorized for

18 fiscal year 1997:

19 ‘‘(1) For the programs authorized by this Act,

20 the Administration is authorized to make

21 $284,000,000 in direct and immediate participation

22 loans; and of such sum the Administration is author23 ized to make $14,000,000 in loans as provided in

24 section 7(a)(10) and $270,000,000 in loans as pro25 vided in section 7(m).
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1 ‘‘(2) For the programs authorized by this Act,

2 the Administration is authorized to make

3 $18,875,000,000 in deferred participation loans and

4 other financings. Of such sum, the Administration is

5 authorized to make—

6 ‘‘(A) $14,175,000,000 in general business

7 loans as provided in section 7(a);

8 ‘‘(B) $3,000,000,000 in financings as pro9 vided in section 7(a)(13) and section 504 of the

10 Small Business Investment Act of 1958; and

11 ‘‘(C) $20,000,000 in loans as provided in

12 section 7(m).

13 ‘‘(3) For the programs authorized by title III of

14 the Small Business Investment Act of 1958, the Ad15 ministration is authorized to make—

16 ‘‘(A) $45,000,000 in purchases of pre17 ferred securities;

18 ‘‘(B) $555,000,000 in guarantees of de19 bentures, of which $55,000,000 is authorized in

20 guarantees of debentures from companies oper21 ating pursuant to section 301(d) of such Act;

22 and

23 ‘‘(C) $1,125,000,000 in guarantees of par24 ticipating securities.
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1 ‘‘(4) For the programs authorized by part B of

2 title IV of the Small Business Investment Act of

3 1958, the Administration is authorized to enter into

4 guarantees not to exceed $1,800,000,000, of which

5 not more than $600,000,000 may be in bonds ap6 proved pursuant to the provisions of section

7 411(a)(3) of such Act.

8 ‘‘(5) For the Service Corps of Retired Execu9 tives program authorized by section 8(b)(1) of this

10 Act, the Administration is authorized to make

11 grants or enter cooperative agreements not to exceed

12 $3,860,000, and for the small business institute pro13 gram authorized by section 8(b)(1) of this Act, the

14 Administration is authorized to make grants or

15 enter cooperative agreements not to exceed

16 $3,310,000.

17 ‘‘(q) There are authorized to be appropriated to the

18 Administration for fiscal year 1997 such sums as may be

19 necessary to carry out the provisions of this Act, including

20 administrative expenses and necessary loan capital for dis21 aster loans pursuant to section 7(b), and to carry out the

22 provisions of the Small Business Investment Act of 1958,

23 including salaries and expenses of the Administration.’’.
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1 TITLE II—FINANCIAL

2 ASSISTANCE PROGRAMS

3 SEC. 201. MICROLOAN FINANCING PILOT.

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

5 636(m)) is amended by adding the following new para6 graph at the end:

7 ‘‘(12) DEFERRED PARTICIPATION LOAN

8 PILOT.—During fiscal years 1995 through 1997, on

9 a pilot basis, in lieu of making direct loans to

10 intermediaries as authorized in paragraph (1)(B),

11 the Administration may participate on a deferred

12 basis of up to 100 percent on loans made to

13 intermediaries by a for-profit or non-profit entity or

14 by alliances of such entities subject to the following

15 conditions:

16 ‘‘(A) NUMBER OF LOANS.—The Adminis17 tration shall not participate in providing financ18 ing on a deferred basis to more than ten

19 intermediaries in urban areas per year and to

20 more than ten intermediaries in rural areas per

21 year.

22 ‘‘(B) TERM OF LOANS.—The term of such

23 loans shall be ten years. During the first five

24 years of the loan, the intermediary shall be re25 quired to pay interest only; and during the sec-
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1 ond five years of the loan, the intermediary

2 shall be required to fully amortize principal and

3 interest payments.

4 ‘‘(C) INTEREST RATE.—The interest rate

5 on such loans shall be the rate specified by

6 paragraph (3)(F) for direct loans.’’.

7 SEC. 202. MICROLOAN STATE LIMITATION.

8 Section 7(m)(7)(C) of the Small Business Act (15

9 U.S.C. 636(m)(7)(C)) is repealed.

10 SEC. 203. LIMIT ON PARTICIPATION.

11 Section 7(m)(7)(A) of the Small Business Act (15

12 U.S.C. 636(m)(7)(A)) is amended to read as follows:

13 ‘‘(A) NUMBER OF PARTICIPANTS.—During

14 this demonstration program, the Administration

15 is authorized to fund, on a competitive basis,

16 not more than 240 microloan programs.’’.

17 SEC. 204. EQUITABLE DISTRIBUTION.

18 Section 7(m)(8) of the Small Business Act (15

19 U.S.C. 636(m)(8)) is amended to read as follows:

20 ‘‘(8) EQUITABLE DISTRIBUTION OF

21 INTERMEDIARIES.—In approving microloan program

22 applicants, the Administration shall select participa23 tion by such intermediaries as will ensure appro24 priate availability of loans to small businesses lo25 cated in urban areas and in rural areas.’’.
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1 SEC. 205. AMOUNT OF LOANS TO INTERMEDIARIES.

2 Section 7(m)(3)(C) of the Small Business Act (15

3 U.S.C. 636(m)(3)(C)) is amended to read as follows:

4 ‘‘(C) LOAN LIMITS.—In determining the

5 amount of funding which the Administration

6 may provide to one intermediary, it shall take

7 into consideration the small business population

8 in the area served by the intermediary.’’.

9 SEC. 206. LOANS TO EXPORTERS.

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

11 U.S.C. 636(a)(14)(A)) is amended to read as follows:

12 ‘‘(A) The Administration may provide ex13 tensions, standby letters of credit, revolving

14 lines of credit for export purposes, and other fi15 nancing to enable small business concerns, in16 cluding small business export trading companies

17 and small business export management compa18 nies, to develop foreign markets. A bank or par19 ticipating lending institution may establish the

20 rate of interest on such financings as may be

21 legal and reasonable.’’.

22 SEC. 207. WORKING CAPITAL INTERNATIONAL TRADE

23 LOANS.

24 Section 7(a)(3)(B) of the Small Business Act (15

25 U.S.C. 636(a)(3)(B)) is amended to read as follows:
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1 ‘‘(B) if the total amount outstanding and

2 committed (on a deferred basis) solely for the

3 purposes provided in paragraph (16) to the bor4 rower from the business loan and investment

5 fund established by this Act would exceed

6 $1,250,000, of which not more than $750,000

7 may be used for working capital, supplies, or

8 financings under section 7(a)(14) for export

9 purposes; and’’.

10 SEC. 208. GUARANTEES ON INTERNATIONAL TRADE LOANS.

11 Section 7(a)(2)(B)(iv) of the Small Business Act (15

12 U.S.C. 636(a)(2)(B)(iv)) is amended to read as follows:

13 ‘‘(iv) not less than 85 percent nor more

14 than 90 percent of the financing outstanding at

15 the time of disbursement if such financing is a

16 loan under paragraph (14) or under paragraph

17 (16).’’.

18 SEC. 209. ACCREDITED LENDERS PROGRAM.

19 (a) Title V of the Small Business Investment Act of

20 1958 (15 U.S.C. 695 et seq.) is amended by adding at

21 the end the following new section:

22 ‘‘SEC. 507. ACCREDITED LENDERS PROGRAM.

23 ‘‘(a) The Administration is authorized to establish an

24 Accredited Lenders Program for qualified State and local
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1 development companies which meet the requirements of

2 subsection (b).

3 ‘‘(b) The Administration may designate a qualified

4 State or local development company as an accredited lend5 er if such company—

6 ‘‘(1) has been an active participant in the devel7 opment company program for at least the last 12

8 months;

9 ‘‘(2) has well-trained, qualified personnel who

10 are knowledgeable in the Administration’s lending

11 policies and procedures for the development company

12 program;

13 ‘‘(3) has the ability to process, close, and serv14 ice financing for plant and equipment under section

15 502 of this Act;

16 ‘‘(4) has a loss rate on its debentures that is

17 acceptable to the Administration;

18 ‘‘(5) has a history of submitting to the Admin19 istration complete and accurate debenture guaranty

20 application packages; and

21 ‘‘(6) has demonstrated the ability to serve small

22 business credit needs for financing plant and equip23 ment as provided in section 502 of this Act.

24 ‘‘(c) The Administration shall expedite the processing

25 of a loan application or servicing action submitted by a
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1 qualified State or local development company that has

2 been designated as an accredited lender in accordance with

3 subsection (b).

4 ‘‘(d) The designation of a qualified State or local de5 velopment company as an accredited lender may be sus6 pended or revoked if the Administration determines that

7 the development company has not continued to meet the

8 criteria for eligibility under subsection (b) or that the de9 velopment company has failed to adhere to the Adminis10 tration’s rules and regulations or is violating any other

11 applicable provision of law. Suspension or revocation shall

12 not affect any outstanding debenture guarantee.

13 ‘‘(e) For purposes of this section, the term ‘qualified

14 State or local development company’ has the same mean15 ing as in section 503(e).’’.

16 (b) The Administration shall promulgate regulations

17 to carry out this section within 90 days of the date of

18 the enactment of this Act.

19 (c) The Administration shall report to the Small

20 Business Committee of the United States Senate and to

21 the Small Business Committee of the United States House

22 of Representatives within one year, and annually there23 after, on the implementation of this section, specifically

24 including data on the number of development companies

25 designated as accredited lenders, their debenture guaran-
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1 tee volume, their loss rates, and the average processing

2 time on their guarantee applications, along with such

3 other information as the Administration deems appro4 priate.

5 SEC. 210. PREMIER LENDERS PROGRAM.

6 (a) Title V of the Small Business Investment Act of

7 1958 (15 U.S.C. 695 et seq.) is further amended by add8 ing at the end the following new section:

9 ‘‘SEC. 508. PREMIER LENDERS PROGRAM.

10 ‘‘(a) The Administration is authorized to establish a

11 Premier Lenders Program for certified development com12 panies which meet the requirements of subsection (b).

13 ‘‘(b) The Administration may designate a participant

14 in the accredited lenders program as a premier lender if

15 such company—

16 ‘‘(1) has been an active participant in the ac17 credited lenders program for at least the last 12

18 months: Provided, That prior to January 1, 1996,

19 the Administration may waive this provision if the

20 applicant is qualified to participate in the accredited

21 lenders program;

22 ‘‘(2) has a history of submitting to the Admin23 istration adequately analyzed debenture guarantee

24 application packages; and
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1 ‘‘(3) agrees to assume and to reimburse the Ad2 ministration for 5 percent of any loss sustained by

3 the Administration on account of default by the cer4 tified development company in the payment of prin5 cipal or interest on a debenture issued by such com6 pany and guaranteed by the Administration under

7 this section.

8 ‘‘(c) Upon approval of an applicant as a premier lend9 er, the certified development company shall establish a loss

10 reserve in an amount equal to the anticipated losses to

11 the certified development company pursuant to subsection

12 (b)(3) based upon the historic loss rate on debentures is13 sued by such company, or 3 percent of the aggregate prin14 cipal amount of debentures issued by such company and

15 guaranteed by the Administration under this section,

16 whichever is greater. The loss reserve shall be comprised

17 of segregated assets of the development company which

18 shall be securitized in favor of the Administration or of

19 such unqualified letters of credit or indemnity agreements

20 from a third party as the Administration deems appro21 priate.

22 ‘‘(d) Upon designation and qualification of a com23 pany as a premier lender, and subject to such terms and

24 conditions as the Administration may determine, and not25 withstanding the provisions of section 503(b)(6), the Ad-
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1 ministration may permit a premier lender to approve loans

2 to be funded with the proceeds of and to authorize the

3 guarantee of a debenture issued by such company. The

4 approval by the premier lender shall be subject to the final

5 approval as to eligibility of any such guarantee by the Ad6 ministration pursuant to subsection 503(a) of this Act,

7 but such final approval shall not include decisions by the

8 company involving creditworthiness, loan closing, or com9 pliance with legal requirements imposed by law or regula10 tion.

11 ‘‘(e) The designation of a qualified State or local de12 velopment company as a premier lender may be suspended

13 or revoked if the Administration determines that the com14 pany—

15 ‘‘(1) has not continued to meet the criteria for

16 eligibility under subsection (b);

17 ‘‘(2) has not established or maintained the loss

18 reserve required under subsection (c); or

19 ‘‘(3) is failing to adhere to the Administration’s

20 rules and regulations or is violating any other appli21 cable provision of law.

22 ‘‘(f) Suspension or revocation shall not affect any out23 standing debenture guarantee.’’.
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1 (b) The Administration shall promulgate such regula2 tions to carry out this section within 180 days of the date

3 of the enactment of this Act.

4 (c) The Administration shall report to the Small

5 Business Committee of the United States Senate and to

6 the Small Business Committee of the United States House

7 of Representatives within one year, and annually there8 after, on the implementation of this section, specifically

9 including data on the number of development companies

10 designated as premier lenders, their debenture guarantee

11 volume, and the loss rate for premier lenders as compared

12 to accredited and other lenders, along with such other in13 formation as the Administration deems appropriate.

14 (d) Section 508 of the Small Business Investment Act

15 of 1958 is repealed on October 1, 1999.

16 (e) The table of contents contained in section 101 of

17 the Small Business Investment Act of 1958 is amended

18 by adding at the end of the matter relating to title V the

19 following:

‘‘Sec. 507. Accredited lenders program.

‘‘Sec. 508. Premier lenders program.’’.

20 SEC. 211. SSBIC ADVISORY COUNCIL.

21 (a) COUNCIL ESTABLISHED.—Not later than 90 days

22 after the date of the enactment of this Act, the Adminis23 trator of the Small Business Administration shall appoint

24 an Investment Advisory Council for the Specialized Small
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1 Business Investment Company Program. The Council

2 shall consist of not less than 12 individuals from the pri3 vate sector, including individuals—

4 (1) who have experience in providing venture

5 capital to small business, particularly minority small

6 business;

7 (2) who are current participants in the Special8 ized Small Business Investment Company Program;

9 (3) who are former participants in the Special10 ized Small Business Investment Company Program;

11 or

12 (4) who are or who represent small business

13 concerns.

14 (b) CHAIRMAN AND STAFF.—The Administrator

15 shall designate one of the members of the Council as chair16 person. The Investment Division of the Small Business

17 Administration shall provide such staff, technical support,

18 and information as shall be deemed appropriate. Council

19 members shall be deemed to be an advisory board pursu20 ant to section 8(b)(13) of the Small Business Act for pur21 poses of reimbursement of expenses.

22 (C) REPORT.—Within six months of the date of ap23 pointment, the Council shall make a written report with

24 findings and recommendations on the venture capital

25 needs, including debt and equity, of socially or economi-
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1 cally disadvantaged small business concerns and any need2 ed Federal incentives to assist the private sector to meet

3 such needs. The report shall specifically address—

4 (1) the history of the Specialized Small Busi5 ness Investment Company program in providing as6 sistance to such concerns and the impact of such as7 sistance on the economy;

8 (2) the appropriateness and ability of the Spe9 cialized Small Business Investment Company Pro10 gram to meet these needs;

11 (3) the problems affecting the Specialized Small

12 Business Investment Company Program; and

13 (4) the effectiveness of the Specialized Small

14 Business Investment Company Program and its ad15 ministration by the Small Business Administration.

16 SEC. 212. PARTICIPATING SECURITIES FOR SMALLER

17 SBICS.

18 Section 303(g) of the Small Business Investment Act

19 of 1958 (15 U.S.C. 683(g)) is amended by adding the fol20 lowing new paragraph at the end:

21 ‘‘(13) Of the amount of the annual program

22 level of participating securities approved in Appro23 priations Acts, 50 percent shall be reserved for fund24 ing Small Business Investment Companies with pri25 vate capital of less than $20,000,000; except that
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1 during the last quarter of each fiscal year, the Ad2 ministrator may, if he determines that there is a

3 lack of qualified applicants with private capital

4 under such amount, utilize all or any part of the se5 curities so reserved.’’.

6 SEC. 213. REPORT ON SBIC PROGRAM.

7 The Small Business Administration shall provide the

8 Committee on Small Business of the House of Representa9 tives and Senate with a comprehensive report on the sta10 tus and disposition of all Small Business Investment Com11 panies, active or in liquidation, and a complete accounting

12 of the assets in and the basis of their portfolios, the pro13 jected and actual loss rates for all portfolios in liquidation

14 or active, and a detailed accounting of valuation of the

15 SBIC program’s investments. This report shall be deliv16 ered to the respective Committees on Small Business no

17 later than April 15, 1995.

18 TITLE III—SIZE STANDARDS AND

19 BOND GUARANTEES

20 SEC. 301. COMPETITIVE DEMONSTRATION PROJECT SIZE

21 STANDARDS.

22 Section 732 of the Business Opportunity Develop23 ment Reform Act of 1988 (Public Law 100–656) is

24 amended by repealing the second sentence of such section.
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1 SEC. 302. SIZE STANDARD CRITERIA.

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

3 632(a)(2)) is amended to read as follows:

4 ‘‘(2) In addition to the criteria specified in paragraph

5 (1), the Administrator may specify detailed definitions or

6 standards by which a business concern may be determined

7 to be a small business concern for the purposes of this

8 Act or any other Act. Such standards may utilize number

9 of employees, dollar volume of business, net worth, net in10 come, or a combination thereof. Unless specifically author11 ized by statute, no Federal department or agency may pre12 scribe a size standard for categorizing a business concern

13 as a small business concern, unless such proposed size

14 standard—

15 ‘‘(A) is being proposed after an opportunity for

16 public notice and comment;

17 ‘‘(B) provides for determining—

18 ‘‘(i) the size of a manufacturing concern as

19 measured by its average employment based

20 upon employment during each of the concern’s

21 pay periods for the preceding twelve calendar

22 months;

23 ‘‘(ii) the size of a concern providing serv24 ices on the basis of the annual average gross re25 ceipts of the concern over a period of not less

26 than 3 years; and
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1 ‘‘(iii) the size of other concerns on the

2 basis of data over a period of not less than 3

3 years; and

4 ‘‘(C) is approved by the Administrator if it is

5 not being proposed by the Small Business Adminis6 tration.’’.

7 SEC. 303. SUNSET ON PREFERRED SURETY BOND GUARAN8 TEE PROGRAM.

9 Section 207 of the Small Business Administration

10 Reauthorization and Amendment Act of 1988 (Public Law

11 100–590) is amended by striking ‘‘September 30, 1994’’

12 and by inserting in lieu thereof ‘‘September 30, 1997’’.

13 SEC. 304. VERY SMALL BUSINESS CONCERNS.

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

15 amended by redesignating section 30 as section 41 and

16 by inserting after section 29, as redesignated by section

17 606 of this Act, the following:

18 ‘‘SEC. 30. PILOT PROGRAM FOR VERY SMALL BUSINESS

19 CONCERNS.

20 ‘‘(a) ESTABLISHMENT.—The Administration shall es21 tablish and carry out a pilot program in accordance with

22 the requirements of this section to provide procurement

23 opportunities to very small business concerns.

24 ‘‘(b) SUBCONTRACTING OF PROCUREMENT CON25 TRACTS.—
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1 ‘‘(1) IN GENERAL.—In carrying out the pro2 gram, the Administration is authorized to enter into

3 procurement contracts with the United States Gov4 ernment and to arrange for the performance of such

5 contracts through the award of subcontracts to very

6 small business concerns.

7 ‘‘(2) TERMS AND CONDITIONS.—The authority

8 of the Administration under paragraph (1) shall be

9 subject to the same terms and conditions as apply

10 to the authority of the Administration under section

11 8(a), except that—

12 ‘‘(A) the Administration may make such

13 modifications to such terms and conditions as

14 the Administration determines necessary; and

15 ‘‘(B) all contract opportunities offered for

16 award under the program shall be awarded on

17 the basis of competition restricted to eligible

18 program participants.

19 ‘‘(c) PROGRAM PARTICIPATION.—Very small business

20 concerns participating in the program shall be subject to

21 the same terms and conditions for program participation

22 as apply to program participants under sections 7(j) and

23 8(a); except that—
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1 ‘‘(1) the Administration may make such modi2 fications to such terms and conditions as the Admin3 istration determines necessary; and

4 ‘‘(2) eligibility shall be determined on the basis

5 of qualifying as a very small business concern as de6 fined in subsection (g), in lieu of the requirements

7 contained in paragraphs (4), (5), and (6) of section

8 8(a).

9 ‘‘(d) TECHNICAL AND FINANCIAL ASSISTANCE.—In

10 order to assist very small business concerns participating

11 in the program, the Administration is authorized—

12 ‘‘(1) to provide technical assistance to such con13 cerns in the same manner and to the same extent

14 as technical assistance is provided to small business

15 concerns pursuant to section 7(j); and

16 ‘‘(2) to provide pre-authorization to such con17 cerns for the purpose of receiving financial assist18 ance under section 7(a).

19 ‘‘(e) PROGRAM TERM.—The Administration shall

20 carry out the program in each of fiscal years 1995, 1996,

21 and 1997.

22 ‘‘(f) REPORT TO CONGRESS.—On or before December

23 31, 1996, the Administration shall transmit to Congress

24 a report containing an analysis of the results of the pro-
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1 gram, together with recommendations for appropriate leg2 islative and administrative actions.

3 ‘‘(g) DEFINITIONS.—For the purposes of this section,

4 the following definitions apply:

5 ‘‘(1) PROGRAM.—The term ‘program’ means

6 the program established pursuant to subsection (a).

7 ‘‘(2) VERY SMALL BUSINESS CONCERN.—The

8 term ‘very small business concern’ means a small

9 business concern that—

10 ‘‘(A) has 10 employees or less; or

11 ‘‘(B) has average annual receipts that total

12 $1,000,000 or less.’’.

13 TITLE IV—MANAGEMENT

14 ASSISTANCE

15 SEC. 401. SUNSET ON COSPONSORED TRAINING.

16 (a) The authority of the Small Business Administra17 tion to cosponsor training as authorized by section 5(a)

18 of the Small Business Computer Security and Education

19 Act of 1984 (15 U.S.C. 633 note) is hereby repealed Sep20 tember 30, 1997.

21 (b) Section 7(b) of the Small Business Computer Se22 curity and Education Act of 1984 (15 U.S.C. 633 note)

23 is amended by striking from the second sentence ‘‘and the

24 amendments made to section 8(b)(1)(A) of the Small
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1 Business Act by section 5(a)(2) of this Act are’’ and by

2 inserting in lieu thereof ‘‘is’’.

3 SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PRO4 GRAM LEVEL.

5 Section 21(a)(4) of the Small Business Act (15

6 U.S.C. 648(a)(4)) is amended to read as follows:

7 ‘‘(4) The Administration shall require as a condition

8 of any grant (or amendment or modification thereof) made

9 to an applicant under this section, that a matching

10 amount (excluding any fees collected from recipients of

11 such assistance) equal to the amount of such grant be pro12 vided from sources other than the Federal Government,

13 to be comprised of not less than 50 per centum cash and

14 not more than 50 per centum of indirect costs and in15 kind contributions: Provided, That this matching amount

16 shall not include any indirect costs or in-kind contribu17 tions derived from any Federal program: Provided further,

18 That no recipient of funds under this section shall receive

19 a grant which would exceed its pro rata share of a national

20 program based upon the population to be served by the

21 Small Business Development Center as compared to the

22 total population in the United States, plus $125,000, or

23 $200,000, whichever is greater, per year. The amount of

24 the national program shall be—

25 ‘‘(A) $70,000,000 through September 30, 1995;
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1 ‘‘(B) $77,500,000 from October 1, 1995

2 through September 30, 1996; and

3 ‘‘(C) $85,000,000 beginning October 1, 1996.

4 The amount of eligibility of each Small Business Develop5 ment Center shall be based upon the amount of the na6 tional program in effect as of the date for commencement

7 of performance of the Center’s grant.’’.

8 SEC. 403. FEDERAL CONTRACTS WITH SMALL BUSINESS DE9 VELOPMENT CENTERS.

10 (a) Section 21(a)(5) of the Small Business Act (15

11 U.S.C. 648(a)(5)) is amended to read as follows:

12 ‘‘(5) A Small Business Development Center may

13 enter a contract with a Federal department or agency to

14 provide specific assistance to small business concerns if

15 the contract is approved in advance by the Deputy Associ16 ate Administrator of the Small Business Development

17 Center program. Approval shall be based upon a deter18 mination that the contract will provide assistance to small

19 business concerns and that its performance will not hinder

20 the Center in carrying out the terms of its grant from

21 the Administration. The amount of any such contract shall

22 not be subject to the matching funds requirements of

23 paragraph (4) nor shall the amount of eligibility under

24 such paragraph: Provided, That notwithstanding any

25 other provision of law, such contracts for assistance to
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1 small business concerns shall not be counted toward any

2 Federal department or agency’s small business, women3 owned business, or socially and economically disadvan4 taged business contracting goal as established by section

5 15(g) of the Small Business Act (15 U.S.C. 644(g)).’’.

6 (b) Section 21(a)(6) of the Small Business Act (15

7 U.S.C. 648(a)(6)) is amended by striking ‘‘paragraphs (4)

8 and (5)’’ and by inserting in lieu thereof ‘‘paragraph (4)’’.

9 SEC. 404. CENTRAL EUROPEAN SMALL BUSINESS DEVELOP10 MENT.

11 Section 25(i) of the Small Business Act (15 U.S.C.

12 652(i)) is amended by striking ‘‘and $2,000,000 for each

13 of fiscal years 1993 and 1994’’ and by inserting in lieu

14 thereof ‘‘, $2,000,000 for each of fiscal years 1993 and

15 1994, and $1,000,000 for fiscal year 1995’’.

16 SEC. 405. MOBILE RESOURCE CENTER PILOT PROGRAM.

17 (a) ESTABLISHMENT.—The Administrator of the

18 Small Business Administration may establish and carry

19 out in each of fiscal years 1995, 1996, and 1997 a mobile

20 resource pilot program (in this section referred to as the

21 ‘‘program’’ in accordance with the requirements of this

22 section.

23 (b) MOBILE RESOURCE CENTER VEHICLES.—Under

24 the program, the Administration may use mobile resource

25 center vehicles to provide technical assistance, informa-
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1 tion, and other services available from the Small Business

2 Administration to traditionally underserved populations.

3 Two of such vehicles should be utilized in rural areas and

4 2 of such vehicles should be utilized in urban areas.

5 (c) REPORT TO CONGRESS.—If the Administrator

6 conducts the program authorized in this section, not later

7 than December 31, 1996, he shall transmit to Congress

8 a report containing the results of such program, together

9 with recommendations for appropriate legislative and ad10 ministrative actions.

11 (d) AUTHORIZATION OF APPROPRIATIONS.—There is

12 authorized to be appropriated for fiscal year 1995

13 $900,000 to carry out this section. Of such sums—

14 (1) $800,000 may be made available for the

15 purchase or lease of mobile resource center vehicles;

16 and

17 (2) $100,000 may be made available for stud18 ies, startup expenses, and other administrative ex19 penses.

20 Such sums shall remain available until expended.
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1 TITLE V—RELIEF FROM FFB DE2 BENTURE PREPAYMENT PEN3 ALTIES

4 SEC. 501. CITATION.

5 This title may be cited as the ‘‘Small Business Pre6 payment Penalty Relief Act of 1994.’’.

7 SEC. 502. MODIFICATION OF DEVELOPMENT COMPANY DE8 BENTURE INTEREST RATES.

9 (a) IN GENERAL.—Upon the request of the issuer

10 and the concurrence of the borrower, the Small Business

11 Administration is authorized to transfer to the Federal Fi12 nancing Bank such sums as may be necessary to carry

13 out the provisions of this section in order to reduce the

14 interest rate on a debenture issued by a certified develop15 ment company. The reduction shall be effective January

16 2, 1995 and shall apply for the remainder of the term

17 of the debenture.

18 (b) INTEREST RATE MODIFICATION.—Upon receipt

19 of such payment, the Federal Financing Bank shall mod20 ify the interest rate of each debenture for which the pay21 ment is made. No other change shall be made in the terms

22 and conditions of the debenture, and the modification in

23 the interest rate shall not be construed as new budget au24 thority nor require any additional appropriation for credit

25 subsidy on account of the modification.
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1 (c) DEFINITIONS.—For the purposes of this sec2 tion—

3 (1) the term ‘‘issuer’’ means the issuer of a de4 benture pursuant to section 503 of the Small Busi5 ness Investment Act of 1958 which has been pur6 chased by the Federal Financing Bank if the deben7 ture is outstanding on the date of enactment of this

8 Act, and neither the loan that secures the debenture

9 nor the debenture is in default on such date; and

10 (2) the term ‘‘borrower’’ means the small busi11 ness concern whose loan secures a debenture issued

12 pursuant to such section.

13 (d) OTHER RIGHTS.—A modification of the interest

14 rate on a debenture as authorized in this section shall not

15 affect any rights or options of the issuer or borrower which

16 are otherwise authorized by contract or by law.

17 (e) REFINANCING.—Debentures authorized by sec18 tions 504 and 505 of the Small Business Investment Act

19 of 1958 may be used to refinance debentures issued under

20 section 503 of such Act if the amount of the new financing

21 is limited to such amounts as are needed to repay the ex22 isting debenture, including any prepayment penalty im23 posed by the Federal Financing Bank. Any such refinanc24 ing shall be subject to all of the other provisions of sec25 tions 504 and 505 of such Act and the rules and regula-
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1 tions of the Administration promulgated thereunder, in2 cluding, but not limited to, rules and regulations govern3 ing payment of authorized expenses and commissions, fees

4 and discounts to brokers and dealers in trust certificates

5 issued pursuant to section 505: Provided, however, That

6 no applicant for refinancing under section 504 of this Act

7 need demonstrate that the requisite number of jobs will

8 be created or preserved with the proceeds of such refinanc9 ing: Provided further, That a development company which

10 provides refinancing under this subsection shall be limited

11 to a loan processing fee not to exceed one-half of one per12 cent to cover the cost of packaging, processing and other

13 nonlegal staff functions.

14 SEC. 503. MODIFICATION OF SMALL BUSINESS INVEST15 MENT COMPANY DEBENTURE INTEREST

16 RATES.

17 (a) IN GENERAL.—Upon the request of the issuer,

18 the Small Business Administration is authorized to trans19 fer to the Federal Financing Bank such sums as may be

20 necessary to carry out the provisions of this section in

21 order to reduce the interest rate on a debenture issued

22 by a Small Business Investment Company under the provi23 sions of title III of the Small Business Investment Act

24 of 1958. The reduction shall be effective January 2, 1995
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1 and shall apply for the remainder of the term of the deben2 ture.

3 (b) INTEREST RATE MODIFICATION.—Upon receipt

4 of such payment, the Federal Financing Bank shall mod5 ify the interest rate of each debenture for which the pay6 ment is made. No other change shall be made in the terms

7 and conditions of the debenture, and the modification in

8 the interest rate shall not be construed as new budget au9 thority nor require any additional appropriation for credit

10 subsidy on account of the modification.

11 (c) DEFINITIONS.—For the purposes of this section,

12 the term ‘‘issuer’’ means the issuer of a debenture pursu13 ant to section 303 of the Small Business Investment Act

14 of 1958 which has been purchased by the Federal Financ15 ing Bank if the debenture is outstanding on the date of

16 enactment of this Act, and is not in default on such date.

17 (d) OTHER RIGHTS.—A modification of the interest

18 rate on a debenture as authorized in this section shall not

19 affect any rights or options of the issuer which are other20 wise authorized by contract or by law.

21 SEC. 504. MODIFICATION OF SPECIALIZED SMALL BUSI22 NESS INVESTMENT COMPANY DEBENTURE

23 INTEREST RATES.

24 (a) INTEREST RATE MODIFICATION.—Upon the re25 quest of the issuer, the Small Business Administration is
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1 authorized to modify the interest rate on a debenture is2 sued by a Small Business Investment Company licensed

3 under the provisions of section 301(d) of the Small Busi4 ness Investment Act of 1958 and which is held by the Ad5 ministration. No debenture which has been sold to a third

6 party shall be eligible for modification under this section.

7 The reduction shall be effective January 2, 1995 and shall

8 apply for the remainder of the term of the debenture. No

9 other change shall be made in the terms and conditions

10 of the debenture, and the modification in the interest rate

11 shall not be construed as new budget authority nor require

12 any additional appropriation for credit subsidy on account

13 of the modification.

14 (b) DEFINITIONS.—For the purposes of this section,

15 the term ‘‘issuer’’ means a Specialized Small Business In16 vestment Company licensed under the provisions of section

17 301(d) of the Small Business Investment Act of 1958

18 which has issued a debenture which has been funded by

19 the Small Business Administration, providing the deben20 ture is outstanding on the date of enactment of this Act

21 and is not in default on such date.

22 (c) OTHER RIGHTS.—A modification of the interest

23 rate on a debenture as authorized in this section shall not

24 affect any rights or options of the issuer which are other25 wise authorized by contract or by law.
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1 SEC. 505. INTEREST RATE REDUCTIONS.

2 (a) IN GENERAL.—Upon enactment of an Appropria3 tions Act providing funds to carry out the provisions of

4 this Act and limited to amounts specifically provided in

5 advance in Appropriations Acts, the Small Business Ad6 ministration shall evaluate the outstanding portfolio of de7 bentures which are eligible for interest rate relief under

8 this Act. The Administration shall apply the funds appro9 priated to carry out this Act in order to reduce the highest

10 interest rate on all eligible debentures to a uniform rate.

11 (b) AUTHORIZATION.—There are authorized to be ap12 propriated $30 million to carry out the provisions of this

13 Act in fiscal year 1995.

14 TITLE VI—DEVELOPMENT OF

15 WOMEN-OWNED BUSINESSES

16 SEC. 601. STATUS OF COUNCIL.

17 Section 401 of the Women’s Business Ownership Act

18 of 1988 (15 U.S.C. 631 note) is redesignated as section

19 405 of such Act and, as redesignated, is amended—

20 (1) in the heading by inserting ‘‘OF THE

21 COUNCIL’’ after ‘‘ESTABLISHMENT’’; and

22 (2) by striking the period at the end and insert23 ing the following: ‘‘which shall serve as an independ24 ent advisory council to the Interagency Committee

25 on Women’s Business Enterprise, to the Adminis26 trator of the Small Business Administration, and to
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1 the Congress of the United States. The Council, in

2 order to carry out its function as an independent ad3 visory council to the Congress, is authorized and di4 rected to report independently of the Interagency

5 Committee directly to the Congress at such times

6 and on such matters as it, in its discretion, deems

7 appropriate.’’.

8 SEC. 602. DUTIES OF NATIONAL WOMEN’S BUSINESS COUN9 CIL.

10 Section 402 of the Women’s Business Ownership Act

11 of 1988 (15 U.S.C. 631 note) is redesignated as section

12 406 of such Act and, as redesignated, is amended to read

13 as follows:

14 ‘‘SEC. 406. DUTIES OF THE COUNCIL.

15 ‘‘The Council shall meet at such times as it deter16 mines necessary in order to advise and consult with the

17 Interagency Committee on Women’s Business Enterprise

18 on matters relating to the activities, functions, and policies

19 of such Committee as provided in this title. The Council

20 shall make annual recommendations for consideration by

21 the Committee. The Council also shall provide reports and

22 make such other recommendations as it deems appropriate

23 to the Committee, to the Administrator of the Small Busi24 ness Administration, and to the Small Business Commit25 tee of the United States Senate and to the Small Business
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1 Committee of the United States House of Representa2 tives.’’.

3 SEC. 603. MEMBERSHIP OF THE COUNCIL.

4 Section 403 of the Women’s Business Ownership Act

5 of 1988 (15 U.S.C. 631 note) is redesignated as section

6 407 of such Act, and, as redesignated, is amended to read

7 as follows:

8 ‘‘SEC. 407. MEMBERSHIP OF THE COUNCIL.

9 ‘‘(a) The Council shall be composed of 15 members

10 who shall be appointed by the Administrator of the Small

11 Business Administration and who shall serve at the Ad12 ministrator’s discretion. In making the appointments, the

13 Administrator shall include racial, geographic and eco14 nomic diversity, and representation from diverse sectors

15 of the economy, including manufacturing, high technology,

16 services and credit institutions, and shall give priority to

17 include representation of major women’s business organi18 zations.

19 ‘‘(b) Only the owner, operator or employee of a

20 woman-owned business shall be eligible for appointment,

21 and not more than eight appointees shall be members of

22 the same political party. If any member of the Council

23 subsequently becomes an officer or employee of the Fed24 eral Government or of the Congress, such individual may

25 continue as a member of the Council for not longer than
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1 the thirty-day period beginning on the date such individual

2 becomes such an officer or employee.

3 ‘‘(c) The Council annually shall select one member

4 to serve as its Chairperson. The Chairperson of the Coun5 cil, or her designee, shall be the representative of the

6 Council to all meetings of the Interagency Committee on

7 Women’s Business Enterprise.

8 ‘‘(d) The Council shall meet not less than four times

9 per year. Meetings shall be at the call of the Chairperson

10 at such times as she deems appropriate.

11 ‘‘(e) Members of the Council shall serve without pay

12 for such membership, except they shall be entitled to reim13 bursement for travel, subsistence, and other necessary ex14 penses incurred by them in carrying out the functions of

15 the Council, in the same manner as persons serving on

16 advisory boards pursuant to section 8(b) of the Small

17 Business Act.’’.

18 SEC. 604. INTERAGENCY COMMITTEE.

19 Title IV of the Women’s Business Ownership Act of

20 1988 (15 U.S.C. 631 note) is amended by striking section

21 404 and by inserting the following new sections prior to

22 section 405 as redesignated by section 601 of this Act:

23 ‘‘SEC. 401. ESTABLISHMENT OF THE COMMITTEE.

24 ‘‘There is established an Interagency Committee to

25 be known as the ‘Interagency Committee on Women’s
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1 Business Enterprise’ (hereinafter in this title referred to

2 as the Committee).

3 ‘‘SEC. 402. DUTIES OF THE COMMITTEE.

4 ‘‘The Committee shall—

5 ‘‘(1) promote, coordinate and monitor the

6 plans, programs and operations of the departments

7 and agencies of the Federal Government which may

8 contribute to the establishment, preservation and

9 strengthening of women’s business enterprise. It

10 may, as appropriate, develop comprehensive inter11 agency plans and specific program goals for women’s

12 business enterprise with the cooperation of Federal

13 departments and agencies;

14 ‘‘(2) promote the better utilization of the activi15 ties and resources of State and local governments,

16 business and trade associations, private industry,

17 colleges and universities, foundations, professional

18 organizations, and volunteer and women’s business

19 enterprise, and facilitate the coordination of the ef20 forts of these groups with those of Federal depart21 ments and agencies;

22 ‘‘(3) consult with the Council to develop and

23 promote new initiatives designed to foster women’s

24 business enterprise, and to develop policies, pro-
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1 grams, and plans intended to promote such develop2 ment;

3 ‘‘(4) consider the Council’s recommendations

4 and public and private sector studies of the problems

5 of women entrepreneurs, and promote further re6 search into such problems; and

7 ‘‘(5) design a comprehensive plan for a joint

8 public-private sector effort to facilitate the develop9 ment and growth of women-owned businesses. The

10 Committee should submit the plan to the President

11 for review within six months of the effective date of

12 this Act.

13 ‘‘SEC. 403. MEMBERSHIP OF THE COMMITTEE.

14 ‘‘(a) The Committee shall be composed of representa15 tives of the following departments and agencies: The De16 partments of Agriculture, Commerce, Defense, Energy,

17 Health and Human Services, Education, Housing and

18 Urban Development, Interior, Justice, Labor, Transpor19 tation, Treasury, the Federal Trade Commission, General

20 Services Administration, National Science Foundation,

21 Office of Federal Procurement Policy, and the Director

22 of the Office of Women’s Business Ownership of the Small

23 Business Administration, who shall serve as Vice Chair24 person of the Committee. The head of each such depart25 ment and agency shall designate a representative who
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1 shall be a policy making official within the department or

2 agency.

3 ‘‘(b) The Committee shall have a Chairperson ap4 pointed by the President, after consultation with the Ad5 ministrator of the Small Business Administration and the

6 Chief Counsel for Advocacy of the Small Business Admin7 istration. The Chairperson shall be the head of a Federal

8 department or agency. If the Chairperson is the head of

9 one of the departments or agencies enumerated in sub10 section (a), he or she shall also serve as the representative

11 of such department or agency.

12 ‘‘(c) The Committee shall meet not less than four

13 times per year. Meetings shall be at the call of the Chair14 person at such times as he or she deems appropriate.

15 ‘‘(d) The members of the Committee shall serve with16 out additional pay for such membership.

17 ‘‘(e) The Chairperson of the Committee may des18 ignate a Director of the Committee, after consultation

19 with the Administrator of the Small Business Administra20 tion and the Chief Counsel for Advocacy of the Small

21 Business Administration.

22 ‘‘(f) The Chief Counsel for Advocacy is authorized to

23 appoint to his staff under the provisions of section 204

24 of Public Law 94–305 (15 U.S.C. 634(d)) the person so

25 designated under subsection (e). He or she is also author-
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1 ized to provide additional staff and administrative support

2 for the Committee.

3 ‘‘(g) The Director of the Office of Women’s Business

4 Ownership of the Small Business Administration is au5 thorized to provide additional staff and administrative

6 support for the Committee.

7 ‘‘SEC. 404. REPORTS FROM THE COMMITTEE.

8 ‘‘The Committee shall transmit to the President and

9 to the Small Business Committee of the United States

10 Senate and to the Small Business Committee of the Unit11 ed States House of Representatives a report no less than

12 once in every twelve-month period. The first such report

13 shall be submitted no later than March 31, 1995. Such

14 reports shall contain any recommendations from the

15 Council and any comments of the Committee thereon, a

16 detailed statement on the activities of the Committee, the

17 findings and conclusions of the Committee, together with

18 its recommendations for such legislation and administra19 tive actions as it considers appropriate to promote the de20 velopment of small business concerns owned and con21 trolled by women.’’.

22 SEC. 605. REPEALER.

23 Sections 404 through 407 of the Women’s Business

24 Ownership Act of 1988, as in effect on the day before the

25 date of the enactment of this Act, are repealed and the
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1 following new section is added at the end of title IV of

2 such Act:

3 ‘‘SEC. 408. DEFINITIONS.

4 ‘‘For the purposes of this Act, the term—

5 ‘‘(1) ‘woman-owned business’ shall mean a

6 small business which is at least 51 percent owned by

7 a woman or women who also control and operate it;

8 ‘‘(2) ‘control’ shall mean exercising the power

9 to make policy decisions;

10 ‘‘(3) ‘operate’ shall mean being actively involved

11 in the day-to-day management; and

12 ‘‘(4) ‘women’s business enterprise’ shall mean a

13 woman-owned business or businesses or the efforts

14 of a woman or women to establish, maintain, or de15 velop such a business or businesses.’’.

16 SEC. 606. EXTENSION OF AUTHORITY FOR DEMONSTRA17 TION PROJECTS.

18 Section 28 of the Small Business Act, as added by

19 section 2 of Public Law 102–191, is redesignated as sec20 tion 29 and, as so redesignated, is amended by striking

21 from subsection (g) ‘‘1995’’ and by inserting ‘‘1997’’.
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1 SEC. 607. ESTABLISHMENT OF OFFICE OF WOMEN’S BUSI2 NESS OWNERSHIP.

3 Section 29 of the Small Business Act, as redesignated

4 by section 606 of this Act, is amended by adding the fol5 lowing new subsection at the end:

6 ‘‘(h) There is established within the Administration

7 an Office of Women’s Business Ownership, which shall be

8 responsible for the administration of the Administration’s

9 programs for the development of women’s business enter10 prises as defined in section 408 of the Women’s Business

11 Ownership Act of 1988. The Office shall be headed by a

12 director who shall be appointed by the Administrator.’’.

13 SEC. 608. TECHNICAL AND CONFORMING AMENDMENTS.

14 (a) Title IV of the table of contents of the Women’s

15 Business Ownership Act of 1988 (15 U.S.C. 631 note) is

16 amended to read as follows:

‘‘TITLE IV—DEVELOPMENT OF WOMEN’S BUSINESS ENTERPRISE

‘‘Sec. 401. Establishment of the Committee.

‘‘Sec. 402. Duties of the Committee.

‘‘Sec. 403. Membership of the Committee.

‘‘Sec. 404. Reports from the Committee.

‘‘Sec. 405. Establishment of the Council.

‘‘Sec. 406. Duties of the Council.

‘‘Sec. 407. Membership of the Council.

‘‘Sec. 408. Definitions.’’.

17 (b) The heading to title IV of the Women’s Business

18 Ownership Act of 1988 (15 U.S.C. 631 note) is amended

19 to read as follows:
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1 ‘‘TITLE IV—DEVELOPMENT OF WOMEN’S

2 BUSINESS ENTERPRISES’’.

3 SEC. 609. AUTHORIZATION.

4 There is authorized to be appropriated $200,000 in

5 each of fiscal years 1995 through 1997 to carry out the

6 provisions of title IV of the Women’s Business Ownership

7 Act of 1988 (15 U.S.C. 631 note).

8 TITLE VII—MISCELLANEOUS

9 AMENDMENTS

10 SEC. 701. HANDICAPPED PARTICIPATION IN SMALL BUSI11 NESS SET ASIDE CONTRACTS.

12 Section 15(c) of the Small Business Act (15 U.S.C.

13 644(c)) is amended—

14 (1) by amending paragraph (2)(A) to read as

15 follows:

16 ‘‘(2)(A) During each fiscal year, public or private or17 ganizations for the handicapped shall be eligible to partici18 pate in programs authorized under this section in an ag19 gregate amount not to exceed $50,000,000.’’; and

20 (2) by adding the following new paragraph at

21 the end thereof:

22 ‘‘(7) Any contract awarded to such an organization

23 pursuant to the provisions of this subsection may be ex24 tended for up to two additional years.’’.
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1 SEC. 702. SBA INTEREST PAYMENTS TO TREASURY.

2 Section 4(c)(5)(B)(ii) of the Small Business Act (15

3 U.S.C. 633(c)(5)(B)(ii)) is amended to read as follows:

4 ‘‘(ii) The Administration shall pay into the mis5 cellaneous receipts of the Treasury following the close of

6 each fiscal year the actual interest it collects during that

7 fiscal year on all financings made under the authority of

8 this Act.’’.

9 SEC. 703. IMPOSITION OF FEES.

10 Section 5(b) of the Small Business Act (15 U.S.C.

11 634(b)) is amended—

12 (1) in paragraph (10) by striking ‘‘and’’ at the

13 end;

14 (2) in paragraph (11) by striking the period at

15 the end and inserting a semicolon; and

16 (3) by adding the following new paragraphs at

17 the end:

18 ‘‘(12) impose, retain and use only those fees

19 which are specifically authorized by law or which are

20 in effect on September 30, 1994, and in the

21 amounts and at the rates in effect on such date. The

22 administrator is authorized to impose, retain and

23 utilize, subject to approval in appropriations Acts,

24 the following additional fees—

25 ‘‘(A) not to exceed $100 for each loan

26 servicing action requested after disbursement of
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1 the loan, including substitution of collateral,

2 loan assumptions, release or substitution of

3 guarantors, reamortizations or similar actions;

4 ‘‘(B) to recover the direct, incremental cost

5 involved in the production and dissemination of

6 compilations of information produced by the

7 Administration under the authority of the Small

8 Business Act and the Small Business Invest9 ment Act of 1958; and

10 ‘‘(13) to collect, retain and utilize, subject to

11 approval in appropriations Acts, any amounts col12 lected by fiscal transfer agents and not used by such

13 agent as payment of the cost of loan pooling or de14 benture servicing operations: Provided, That any

15 monies so collected shall be utilized solely to facili16 tate the administration of the program which gen17 erated the excess monies.’’.

18 SEC. 704. SBIR VENDORS.

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

20 638(q)(2)) is amended to read as follows:

21 ‘‘(2) VENDOR SELECTION.—Each agency may

22 select a vendor to assist small business concerns to

23 meet the goals listed in paragraph (1). Such selec24 tion shall be competitive using merit-based criteria,

25 for a term not to exceed 3 years.’’.
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1 SEC. 705. MANUFACTURING CONTRACTS.

2 (a) ESTABLISHMENT OF PILOT PROGRAM.—Section

3 15 of the Small Business Act (15 U.S.C. 644) is amended

4 by adding at the end the following:

5 ‘‘(p) MANUFACTURING MODERNIZATION PILOT PRO6 GRAM.—

7 ‘‘(1) ESTABLISHMENT.—The Administrator

8 may establish and carry out a manufacturing mod9 ernization pilot program (hereinafter in this section

10 referred to as the ‘program’) for the purpose of pro11 moting the award of Federal procurement contracts

12 to small business concerns that participate in manu13 facturing application and education centers that are

14 established or certified pursuant to paragraph (2).

15 ‘‘(2) MANUFACTURING APPLICATION AND EDU16 CATION CENTERS.—The Administrator may estab17 lish manufacturing application and education centers

18 which will provide training to small business con19 cerns on new and innovative manufacturing prac20 tices in a shared-use production environment and

21 which will assist such concerns in carrying out Fed22 eral procurement contracts for the manufacture of

23 components and subsystems. The Administrator may

24 also certify existing manufacturing application and

25 education centers for participation in the program.
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1 ‘‘(3) USE OF PRIVATE CENTERS AS EXAM2 PLES.—In establishing any manufacturing applica3 tion and education centers pursuant to paragraph

4 (2), the Administrator may use as examples manu5 facturing application and education centers in the

6 private sector that provide the following services:

7 technology demonstration, technology education,

8 technology application support, technology advance9 ment support, and technology awareness.

10 ‘‘(4) IDENTIFICATION OF CONTRACTS.—The

11 Administrator and the head of a contracting agency

12 may identify for additional small business set-asides

13 pursuant to subsection (a) any procurement, and in

14 particular any procurement which is being foreign15 sourced or is considered critical, which is susceptible

16 to performance by a small business concern if the

17 concern is assisted by a manufacturing application

18 and education center under the program. Any such

19 procurement shall be subject to the requirements of

20 subsection (a), including requirements relating to

21 any failure of the Administrator and the head of the

22 contracting agency to agree on procurement meth23 ods.

24 ‘‘(5) NONAPPLICABILITY OF PERFORMANCE RE25 QUIREMENT.—The requirement of subsection
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1 (o)(1)(B) shall not apply with respect to any con2 tract carried out by a small business concern under

3 the program with the assistance of a manufacturing

4 application and education center.

5 ‘‘(6) REGULATIONS.—Not later than 6 months

6 after the date of the enactment of this subsection,

7 the Administrator shall issue regulations to carry

8 out this subsection if he determines it appropriate to

9 carry out the program authorized by this subsection.

10 ‘‘(7) REPORTS.—

11 ‘‘(A) PROGRESS REPORT.—Not later than

12 3 months after the last day of the fiscal year

13 in which final regulations are issued pursuant

14 to paragraph (6), the Administrator shall trans15 mit to the Committees on Small Business of the

16 House of Representatives and the Senate a re17 port on the progress of the program.

18 ‘‘(B) FINAL REPORT.—If the Adminis19 trator establishes the program authorized here20 in, not later than March 31, 1999, he shall

21 transmit to the Committees on Small Business

22 of the House of Representatives and the Senate

23 a report on the success of the program in—
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1 ‘‘(i) enabling deployment of tech2 nology to small business concerns partici3 pating in the program, and

4 ‘‘(ii) assisting manufacturing applica5 tion and education centers in achieving

6 self-sufficiency,

7 together with recommendations concerning con8 tinuation, modification, or discontinuance of the

9 program.

10 ‘‘(8) PROGRAM TERM.—The Administrator may

11 carry out the program during the period beginning

12 on the date of issuance of final regulations under

13 paragraph (5) and ending on September 30, 1999.

14 ‘‘(9) AUTHORIZATION OF APPROPRIATIONS.—

15 There are authorized to be appropriated such sums

16 as may be necessary to carry out this subsection.’’.

17 SEC. 706. DENIAL OF USE OF FUNDS FOR INDIVIDUALS NOT

18 LAWFULLY WITHIN THE UNITED STATES.

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

20 amended by inserting after section 30, as added by section

21 304 of this Act, the following:

22 ‘‘SEC. 31. DENIAL OF USE OF FUNDS FOR INDIVIDUALS NOT

23 LAWFULLY WITHIN THE UNITED STATES.

24 ‘‘None of the funds made available pursuant to this

25 Act may be used to provide any direct benefit or assistance
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1 to any individual in the United States when it is made

2 known to the Administrator of the Small Business Admin3 istration or the official to which the funds are made avail4 able that the individual is not lawfully within the United

5 States.’’.

6 SEC. 707. OFFICE OF ADVOCACY EMPLOYEES.

7 Section 204 of Public Law 94–305 (15 U.S.C. 634d)

8 is amended as follows—

9 (1) by striking ‘‘after consultation with and

10 subject to the approval of the Administrator,’’; and

11 (2) by striking from paragraph (1) ‘‘ten’’ and

12 by inserting ‘‘14’’.

13 SEC. 708. ADVOCACY STUDY OF PAPERWORK AND TAX IM14 PACT.

15 The Chief Counsel for Advocacy of the Small Busi16 ness Administration shall conduct a study of the impact

17 of all Federal regulatory paperwork and tax requirements

18 upon small business and report its findings to the Con19 gress within 1 year of the date of the enactment of this

20 Act.

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