Union Calendar No. 337

103D CONGRESS

2D SESSION H. R. 4801

[Report No. 103–616]

A BILL

To amend the Small Business Act, and for other

purposes.

JULY 21, 1994

Reported with amendments, committed to the Committee

dered to be printedof the Whole House on the State of the Union, and or-
IB

Union Calendar No. 337

103D CONGRESS

2D SESSION H. R. 4801

[Report No. 103–616]

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

JULY 21, 1994

Reported with amendments, committed to the Committee of the Whole House

on the State of the Union, and ordered to be printed

[Omit the part struck through and insert the part printed in italic]

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’’.
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1 TITLE I—AUTHORIZATIONS

2 SEC. 101. AUTHORIZATIONS.

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

4 note) is amended by striking all of such section after sub5 section (k), as added by section 115(a) of the Small Busi6 ness Credit and Business Opportunity Enhancement Act

7 of 1992, and by inserting in lieu thereof the following:

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

9 fiscal year 1995:

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

11 the Administration is authorized to make

12 $142,000,000 in direct and immediate participation

13 loans; and of such sum, the Administration is au14 thorized to make $12,000,000 in loans as provided

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

16 provided in section 7(m).

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

18 the Administration is authorized to make

19 $12,320,000,000 in deferred participation loans and

20 other financings. Of such sum, the Administration is

21 authorized to make—

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

23 loans as provided in section 7(a);
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1 ‘‘(B) $2,200,000,000 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) $33,000,000 in purchases of pre10 ferred securities;

11 ‘‘(B) $285,000,000 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) $500,000,000 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 $3,500,000, 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 $3,000,000.

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

11 Administration for fiscal year 1995 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 ‘‘(n) The following program levels are authorized for

18 fiscal year 1996:

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

20 the Administration is authorized to make

21 $208,000,000 in direct and immediate participation

22 loans; and of such sum the Administration is author23 ized to make $13,000,000 in loans as provided in

24 section 7(a)(10) and $195,000,000 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 $14,610,000,000 in deferred participation loans and

4 other financings. Of such sum, the Administration is

5 authorized to make—

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

7 loans as provided in section 7(a);

8 ‘‘(B) $2,500,000,000 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) $39,000,000 in purchases of pre17 ferred securities;

18 ‘‘(B) $405,000,000 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) $750,000,000 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 $3,675,000, 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 $3,150,000.

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

18 Administration for fiscal year 1996 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.

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

25 fiscal year 1997:
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1 ‘‘(1) For the programs authorized by this Act,

2 the Administration is authorized to make

3 $284,000,000 in direct and immediate participation

4 loans; and of such sum the Administration is author5 ized to make $14,000,000 in loans as provided in

6 section 7(a)(10) and $270,000,000 in loans as pro7 vided in section 7(m).

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

9 the Administration is authorized to make

10 $18,875,000,000 in deferred participation loans and

11 other financings. Of such sum, the Administration is

12 authorized to make—

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

14 loans as provided in section 7(a);

15 ‘‘(B) $3,000,000,000 in financings as pro16 vided in section 7(a)(13) and section 504 of the

17 Small Business Investment Act of 1958; and

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

19 section 7(m).

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

21 the Small Business Investment Act of 1958, the Ad22 ministration is authorized to make—

23 ‘‘(A) $45,000,000 in purchases of pre24 ferred securities;
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1 ‘‘(B) $555,000,000 in guarantees of de2 bentures, of which $55,000,000 is authorized in

3 guarantees of debentures from companies oper4 ating pursuant to section 301(d) of such Act;

5 and

6 ‘‘(C) $1,125,000,000 in guarantees of par7 ticipating securities.

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

9 title IV of the Small Business Investment Act of

10 1958, the Administration is authorized to enter into

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

12 not more than $600,000,000 may be in bonds ap13 proved pursuant to the provisions of section

14 411(a)(3) of such Act.

15 ‘‘(5) For the Service Corps of Retired Execu16 tives program authorized by section 8(b)(1) of this

17 Act, the Administration is authorized to make

18 grants or enter cooperative agreements not to exceed

19 $3,860,000, and for the small business institute pro20 gram authorized by section 8(b)(1) of this Act, the

21 Administration is authorized to make grants or

22 enter cooperative agreements not to exceed

23 $3,310,000.

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

25 Administration for fiscal year 1997 such sums as may be
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1 necessary to carry out the provisions of this Act, including

2 administrative expenses and necessary loan capital for dis3 aster loans pursuant to section 7(b), and to carry out the

4 provisions of the Small Business Investment Act of 1958,

5 including salaries and expenses of the Administration.’’.

6 TITLE II—FINANCIAL

7 ASSISTANCE PROGRAMS

8 SEC. 201. MICROLOAN FINANCING PILOT.

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

10 636(m)) is amended by adding the following new para11 graph at the end:

12 ‘‘(12) DEFERRED PARTICIPATION LOAN

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

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

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

16 the Administration may participate on a deferred

17 basis of up to 100 percent on loans made to

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

19 by alliances of such entities subject to the following

20 conditions:

21 ‘‘(A) NUMBER OF LOANS.—The Adminis22 tration shall not participate in providing financ23 ing on a deferred basis to more than ten

24 intermediaries in urban areas per year and to
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1 more than ten intermediaries in rural areas per

2 year.

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

4 loans shall be ten years. During the first five

5 years of the loan, the intermediary shall be re6 quired to pay interest only; and during the sec7 ond five years of the loan, the intermediary

8 shall be required to fully amortize principal and

9 interest payments.

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

11 on such loans shall be the rate specified by

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

13 SEC. 202. MICROLOAN STATE LIMITATION.

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

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

16 SEC. 203. LIMIT ON PARTICIPATION.

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

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

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

20 this demonstration program, the Administration

21 is authorized to fund, on a competitive basis,

22 not more than 240 microloan programs.’’.

23 SEC. 204. EQUITABLE DISTRIBUTION.

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

25 U.S.C. 636(m)(8)) is amended to read as follows:
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1 ‘‘(8) EQUITABLE DISTRIBUTION OF

2 INTERMEDIARIES.—In approving microloan program

3 applicants, the Administration shall select participa4 tion by such intermediaries as will ensure appro5 priate availability of loans to small businesses lo6 cated in urban areas and in rural areas.’’.

7 SEC. 205. AMOUNT OF LOANS TO INTERMEDIARIES.

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

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

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

11 amount of funding which the Administration

12 may provide to one intermediary, it shall take

13 into consideration the small business population

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

15 SEC. 206. LOANS TO EXPORTERS.

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

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

18 ‘‘(A) The Administration may provide ex19 tensions, standby letters of credit, revolving

20 lines of credit for export purposes, and other fi21 nancing to enable small business concerns, in22 cluding small business export trading companies

23 and small business export management compa24 nies, to develop foreign markets. A bank or par25 ticipating lending institution may establish the
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1 rate of interest on such financings as may be

2 legal and reasonable.’’.

3 SEC. 207. WORKING CAPITAL INTERNATIONAL TRADE

4 LOANS.

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

6 U.S.C. 636(a)(3)(B)) is amended to read as follows:

7 ‘‘(B) if the total amount outstanding and

8 committed (on a deferred basis) solely for the

9 purposes provided in paragraph (16) to the bor10 rower from the business loan and investment

11 fund established by this Act would exceed

12 $1,250,000, of which not more than $750,000

13 may be used for working capital, supplies, or

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

15 purposes; and’’.

16 SEC. 208. GUARANTEES ON INTERNATIONAL TRADE LOANS.

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

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

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

20 than 90 percent of the financing outstanding at

21 the time of disbursement if such financing is a

22 loan under paragraph (14) or under paragraph

23 (16).’’.
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1 SEC. 209. ACCREDITED LENDERS PROGRAM.

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

3 1958 (15 U.S.C. 695 et seq.) is amended by adding at

4 the end the following new section:

5 ‘‘SEC. 507. ACCREDITED LENDERS PROGRAM.

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

7 Accredited Lenders Program for qualified State and local

8 development companies which meet the requirements of

9 subsection (b).

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

11 State or local development company as an accredited lend12 er if such company—

13 ‘‘(1) has been an active participant in the devel14 opment company program for at least the last 12

15 months;

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

17 are knowledgeable in the Administration’s lending

18 policies and procedures for the development company

19 program;

20 ‘‘(3) has the ability to process, close, and serv21 ice financing for plant and equipment under section

22 502 of this Act;

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

24 acceptable to the Administration;
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1 ‘‘(5) has a history of submitting to the Admin2 istration complete and accurate debenture guaranty

3 application packages; and

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

5 business credit needs for financing plant and equip6 ment as provided in section 502 of this Act.

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

8 of a loan application or servicing action submitted by a

9 qualified State or local development company that has

10 been designated as an accredited lender in accordance with

11 subsection (b).

12 ‘‘(d) The designation of a qualified State or local de13 velopment company as an accredited lender may be sus14 pended or revoked if the Administration determines that

15 the development company has not continued to meet the

16 criteria for eligibility under subsection (b) or that the de17 velopment company has failed to adhere to the Adminis18 tration’s rules and regulations or is violating any other

19 applicable provision of law. Suspension or revocation shall

20 not affect any outstanding debenture guarantee.

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

22 State or local development company’ has the same mean23 ing as in section 503(e).’’.
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1 (b) The Administration shall promulgate regulations

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

3 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 accredited lenders, their debenture guaran11 tee volume, their loss rates, and the average processing

12 time on their guarantee applications, along with such

13 other information as the Administration deems appro14 priate.

15 SEC. 210. PREMIER LENDERS PROGRAM.

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

17 1958 (15 U.S.C. 695 et seq.) is further amended by add18 ing at the end the following new section:

19 ‘‘SEC. 508. PREMIER LENDERS PROGRAM.

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

21 Premier Lenders Program for certified development com22 panies which meet the requirements of subsection (b).

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

24 in the accredited lenders program as a premier lender if

25 such company—
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1 ‘‘(1) has been an active participant in the ac2 credited lenders program for at least the last 12

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

4 the Administration may waive this provision if the

5 applicant is qualified to participate in the accredited

6 lenders program;

7 ‘‘(2) has a history of submitting to the Admin8 istration adequately analyzed debenture guarantee

9 application packages; and

10 ‘‘(3) agrees to assume and to reimburse the Ad11 ministration for 5 percent of any loss sustained by

12 the Administration on account of default by the cer13 tified development company in the payment of prin14 cipal or interest on a debenture issued by such com15 pany and guaranteed by the Administration under

16 this section.

17 ‘‘(c) Upon approval of an applicant as a premier lend18 er, the certified development company shall establish a loss

19 reserve in an amount equal to the anticipated losses to

20 the certified development company pursuant to subsection

21 (b)(3) based upon the historic loss rate on debentures is22 sued by such company, or 3 percent of the aggregate prin23 cipal amount of debentures issued by such company and

24 guaranteed by the Administration under this section,

25 whichever is greater. The loss reserve shall be comprised
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1 of segregated assets of the development company which

2 shall be securitized in favor of the Administration or of

3 such unqualified letters of credit or indemnity agreements

4 from a third party as the Administration deems appro5 priate.

6 ‘‘(d) Upon designation and qualification of a com7 pany as a premier lender, and subject to such terms and

8 conditions as the Administration may determine, and not9 withstanding the provisions of section 503(b)(6), the Ad10 ministration may permit a premier lender to approve loans

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

12 guarantee of a debenture issued by such company. The

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

14 approval as to eligibility of any such guarantee by the Ad15 ministration pursuant to subsection 503(a) of this Act,

16 but such final approval shall not include decisions by the

17 company involving creditworthiness, loan closing, or com18 pliance with legal requirements imposed by law or regula19 tion.

20 ‘‘(e) The designation of a qualified State or local de21 velopment company as a premier lender may be suspended

22 or revoked if the Administration determines that the com23 pany—

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

25 eligibility under subsection (b);
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1 ‘‘(2) has not established or maintained the loss

2 reserve required under subsection (c); or

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

4 rules and regulations or is violating any other appli5 cable provision of law.

6 ‘‘(f) Suspension or revocation shall not affect any out7 standing debenture guarantee.’’.

8 (b) The Administration shall promulgate such regula9 tions to carry out this section within 180 days of the date

10 of the enactment of this Act.

11 (c) The Administration shall report to the Small

12 Business Committee of the United States Senate and to

13 the Small Business Committee of the United States House

14 of Representatives within one year, and annually there15 after, on the implementation of this section, specifically

16 including data on the number of development companies

17 designated as premier lenders, their debenture guarantee

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

19 to accredited and other lenders, along with such other in20 formation as the Administration deems appropriate.

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

22 of 1958 is repealed on October 1, 1999.

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

24 the Small Business Investment Act of 1958 is amended
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1 by adding at the end of the matter relating to title V the

2 following:

‘‘Sec. 507. Accredited lenders program.

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

3 SEC. 211. SSBIC ADVISORY COUNCIL.

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

5 after the date of the enactment of this Act, the Adminis6 trator of the Small Business Administration shall appoint

7 an Investment Advisory Council for the Specialized Small

8 Business Investment Company Program. The Council

9 shall consist of not less than 12 individuals from the pri10 vate sector, including individuals—

11 (1) who have experience in providing venture

12 capital to small business, particularly minority small

13 business;

14 (2) who are current participants in the Special15 ized Small Business Investment Company Program;

16 (3) who are former participants in the Special17 ized Small Business Investment Company Program;

18 or

19 (4) who are or who represent small business

20 concerns.

21 (b) CHAIRMAN AND STAFF.—The Administrator

22 shall designate one of the members of the Council as chair23 person. The Investment Division of the Small Business

24 Administration shall provide such staff, technical support,
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1 and information as shall be deemed appropriate. Council

2 members shall be deemed to be an advisory board pursu3 ant to section 8(b)(13) of the Small Business Act for pur4 poses of reimbursement of expenses.

5 (C) REPORT.—Within six months of the date of ap6 pointment, the Council shall make a written report with

7 findings and recommendations on the venture capital

8 needs, including debt and equity, of socially or economi9 cally disadvantaged small business concerns and any need10 ed Federal incentives to assist the private sector to meet

11 such needs. The report shall specifically address—

12 (1) the history of the Specialized Small Busi13 ness Investment Company program in providing as14 sistance to such concerns and the impact of such as15 sistance on the economy;

16 (2) the appropriateness and ability of the Spe17 cialized Small Business Investment Company Pro18 gram to meet these needs;

19 (3) the problems affecting the Specialized Small

20 Business Investment Company Program; and

21 (4) the effectiveness of the Specialized Small

22 Business Investment Company Program and its ad23 ministration by the Small Business Administration.
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1 SEC. 212. PARTICIPATING SECURITIES FOR SMALLER

2 SBICS.

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

4 of 1958 (15 U.S.C. 683(g)) is amended by adding the fol5 lowing new paragraph at the end:

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

7 level of participating securities approved in Appro8 priations Acts, 50 percent shall be reserved for fund9 ing Small Business Investment Companies with pri10 vate capital of less than $20,000,000; except that

11 during the last quarter of each fiscal year, the Ad12 ministrator may, if he determines that there is a

13 lack of qualified applicants with private capital

14 under such amount, utilize all or any part of the se15 curities so reserved.’’.

16 SEC. 213. REPORT ON SBIC PROGRAM.

17 The Small Business Administration shall provide the

18 Committee on Small Business of the House of Representa19 tives and Senate with a comprehensive report on the sta20 tus and disposition of all Small Business Investment Com21 panies, active or in liquidation, and a complete accounting

22 of the assets in and the basis of their portfolios, the pro23 jected and actual loss rates for all portfolios in liquidation

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

25 SBIC program’s investments. This report shall be deliv-
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1 ered to the respective Committees on Small Business no

2 later than April 15, 1995.

3 TITLE III—SIZE STANDARDS AND

4 BOND GUARANTEES

5 SEC. 301. COMPETITIVE DEMONSTRATION PROJECT SIZE

6 STANDARDS.

7 Section 732 of the Business Opportunity Develop8 ment Reform Act of 1988 (Public Law 100–656) is

9 amended by repealing the second sentence of such section.

10 SEC. 302. SIZE STANDARD CRITERIA.

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

12 632(a)(2)) is amended to read as follows:

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

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

15 standards by which a business concern may be determined

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

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

18 of employees, dollar volume of business, net worth, net in19 come, or a combination thereof. Unless specifically author20 ized by statute, no Federal department or agency may pre21 scribe a size standard for categorizing a business concern

22 as a small business concern, unless such proposed size

23 standard—

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

25 public notice and comment;
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1 ‘‘(B) provides for determining—

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

3 measured by its average employment based

4 upon employment during each of the concern’s

5 pay periods for the preceding twelve calendar

6 months;

7 ‘‘(ii) the size of a concern providing serv8 ices on the basis of the annual average gross re9 ceipts of the concern over a period of not less

10 than 3 years; and

11 ‘‘(iii) the size of other concerns on the

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

13 years; and

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

15 not being proposed by the Small Business Adminis16 tration.’’.

17 SEC. 303. SUNSET ON PREFERRED SURETY BOND GUARAN18 TEE PROGRAM.

19 Section 207 of the Small Business Administration

20 Reauthorization and Amendment Act of 1988 (Public Law

21 100–590) is amended by striking ‘‘September 30, 1994’’

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

23 SEC. 304. VERY SMALL BUSINESS CONCERNS.

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

25 amended by redesignating section 30 as section 41 and
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1 by inserting after section 29, as redesignated by section

2 606 of this Act, the following:

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

4 CONCERNS.

5 ‘‘(a) ESTABLISHMENT.—The Administration shall es6 tablish and carry out a pilot program in accordance with

7 the requirements of this section to provide procurement

8 opportunities to very small business concerns.

9 ‘‘(b) SUBCONTRACTING OF PROCUREMENT CON10 TRACTS.—

11 ‘‘(1) IN GENERAL.—In carrying out the pro12 gram, the Administration is authorized to enter into

13 procurement contracts with the United States Gov14 ernment and to arrange for the performance of such

15 contracts through the award of subcontracts to very

16 small business concerns.

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

18 of the Administration under paragraph (1) shall be

19 subject to the same terms and conditions as apply

20 to the authority of the Administration under section

21 8(a), except that—

22 ‘‘(A) the Administration may make such

23 modifications to such terms and conditions as

24 the Administration determines necessary; and
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1 ‘‘(B) all contract opportunities offered for

2 award under the program shall be awarded on

3 the basis of competition restricted to eligible

4 program participants.

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

6 concerns participating in the program shall be subject to

7 the same terms and conditions for program participation

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

9 8(a); except that—

10 ‘‘(1) the Administration may make such modi11 fications to such terms and conditions as the Admin12 istration determines necessary; and

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

14 of qualifying as a very small business concern as de15 fined in subsection (g), in lieu of the requirements

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

17 8(a).

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

19 order to assist very small business concerns participating

20 in the program, the Administration is authorized—

21 ‘‘(1) to provide technical assistance to such con22 cerns in the same manner and to the same extent

23 as technical assistance is provided to small business

24 concerns pursuant to section 7(j); and
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1 ‘‘(2) to provide pre-authorization to such con2 cerns for the purpose of receiving financial assist3 ance under section 7(a).

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

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

6 and 1997.

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

8 31, 1996, the Administration shall transmit to Congress

9 a report containing an analysis of the results of the pro10 gram, together with recommendations for appropriate leg11 islative and administrative actions.

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

13 the following definitions apply:

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

15 the program established pursuant to subsection (a).

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

17 term ‘very small business concern’ means a small

18 business concern that—

19 ‘‘(A) has 10 employees or less; or

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

21 $1,000,000 or less.’’.
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1 TITLE IV—MANAGEMENT

2 ASSISTANCE

3 SEC. 401. SUNSET ON COSPONSORED TRAINING.

4 (a) The authority of the Small Business Administra5 tion to cosponsor training as authorized by section 5(a)

6 of the Small Business Computer Security and Education

7 Act of 1984 (15 U.S.C. 633 note) is hereby repealed Sep8 tember 30, 1997.

9 (b) Section 7(b) of the Small Business Computer Se10 curity and Education Act of 1984 (15 U.S.C. 633 note)

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

12 amendments made to section 8(b)(1)(A) of the Small

13 Business Act by section 5(a)(2) of this Act are’’ and by

14 inserting in lieu thereof ‘‘is’’.

15 (b) Section 7(b) of the Small Business Computer Secu16 rity and Education Act of 1984 (15 U.S.C. 633 note) is

17 amended by striking the second sentence.

18 SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PRO19 GRAM LEVEL.

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

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

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

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

24 to an applicant under this section, that a matching

25 amount (excluding any fees collected from recipients of
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1 such assistance) equal to the amount of such grant be pro2 vided from sources other than the Federal Government,

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

4 not more than 50 per centum of indirect costs and in5 kind contributions: Provided, That this matching amount

6 shall not include any indirect costs or in-kind contribu7 tions derived from any Federal program: Provided further,

8 That no recipient of funds under this section shall receive

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

10 program based upon the population to be served by the

11 Small Business Development Center as compared to the

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

13 $200,000, whichever is greater, per year. The amount of

14 the national program shall be—

15 ‘‘(A) $70,000,000 through September 30, 1995;

16 ‘‘(B) $77,500,000 from October 1, 1995

17 through September 30, 1996; and

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

19 The amount of eligibility of each Small Business Develop20 ment Center shall be based upon the amount of the na21 tional program in effect as of the date for commencement

22 of performance of the Center’s grant.’’.
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1 SEC. 403. FEDERAL CONTRACTS WITH SMALL BUSINESS DE2 VELOPMENT CENTERS.

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

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

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

6 enter a contract with a Federal department or agency to

7 provide specific assistance to small business concerns if

8 the contract is approved in advance by the Deputy Associ9 ate Administrator of the Small Business Development

10 Center program. Approval shall be based upon a deter11 mination that the contract will provide assistance to small

12 business concerns and that its performance will not hinder

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

14 the Administration. The amount of any such contract shall

15 not be subject to the matching funds requirements of

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

17 such paragraph: Provided, That notwithstanding any

18 other provision of law, such contracts for assistance to

19 small business concerns shall not be counted toward any

20 Federal department or agency’s small business, women21 owned business, or socially and economically disadvan22 taged business contracting goal as established by section

23 15(g) of the Small Business Act (15 U.S.C. 644(g)).’’.

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

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

26 and (5)’’ and by inserting in lieu thereof ‘‘paragraph (4)’’.
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1 SEC. 404. CENTRAL EUROPEAN SMALL BUSINESS DEVELOP2 MENT.

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

4 652(i)) is amended by striking ‘‘and $2,000,000 for each

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

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

7 1994, and $1,000,000 for fiscal year 1995’’.

8 SEC. 405. MOBILE RESOURCE CENTER PILOT PROGRAM.

9 (a) ESTABLISHMENT.—The Administrator of the

10 Small Business Administration may establish and carry

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

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

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

14 section.

15 (b) MOBILE RESOURCE CENTER VEHICLES.—Under

16 the program, the Administration may use mobile resource

17 center vehicles to provide technical assistance, informa18 tion, and other services available from the Small Business

19 Administration to traditionally underserved populations.

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

21 2 of such vehicles should be utilized in urban areas.

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

23 conducts the program authorized in this section, not later

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

25 a report containing the results of such program, together
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1 with recommendations for appropriate legislative and ad2 ministrative actions.

3 (d) AUTHORIZATION OF APPROPRIATIONS.—There is

4 authorized to be appropriated for fiscal year 1995

5 $900,000 to carry out this section. Of such sums—

6 (1) $800,000 may be made available for the

7 purchase or lease of mobile resource center vehicles;

8 and

9 (2) $100,000 may be made available for stud10 ies, startup expenses, and other administrative ex11 penses.

12 Such sums shall remain available until expended.

13 TITLE V—RELIEF FROM FFB DE14 BENTURE PREPAYMENT PEN15 ALTIES

16 SEC. 501. CITATION.

17 This title may be cited as the ‘‘Small Business Pre18 payment Penalty Relief Act of 1994.’’.

19 SEC. 502. MODIFICATION OF DEVELOPMENT COMPANY DE20 BENTURE INTEREST RATES.

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

22 and the concurrence of the borrower, the Small Business

23 Administration is authorized to transfer to the Federal Fi24 nancing Bank such sums as may be necessary to carry

25 out the provisions of this section in order to reduce the
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1 interest rate on a debenture issued by a certified develop2 ment company. The reduction shall be effective January

3 2, 1995 and shall apply for the remainder of the term

4 of the debenture.

5 (b) INTEREST RATE MODIFICATION.—Upon receipt

6 of such payment, the Federal Financing Bank shall mod7 ify the interest rate of each debenture for which the pay8 ment is made. No other change shall be made in the terms

9 and conditions of the debenture, and the modification in

10 the interest rate shall not be construed as new budget au11 thority nor require any additional appropriation for credit

12 subsidy on account of the modification.

13 (c) DEFINITIONS.—For the purposes of this sec14 tion—

15 (1) the term ‘‘issuer’’ means the issuer of a de16 benture pursuant to section 503 of the Small Busi17 ness Investment Act of 1958 which has been pur18 chased by the Federal Financing Bank if the deben19 ture is outstanding on the date of enactment of this

20 Act, and neither the loan that secures the debenture

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

22 (2) the term ‘‘borrower’’ means the small busi23 ness concern whose loan secures a debenture issued

24 pursuant to such section.
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1 (d) OTHER RIGHTS.—A modification of the interest

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

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

4 are otherwise authorized by contract or by law.

5 (e) REFINANCING.—Debentures authorized by sec6 tions 504 and 505 of the Small Business Investment Act

7 of 1958 may be used to refinance debentures issued under

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

9 is limited to such amounts as are needed to repay the ex10 isting debenture, including any prepayment penalty im11 posed by the Federal Financing Bank. Any such refinanc12 ing shall be subject to all of the other provisions of sec13 tions 504 and 505 of such Act and the rules and regula14 tions of the Administration promulgated thereunder, in15 cluding, but not limited to, rules and regulations govern16 ing payment of authorized expenses and commissions, fees

17 and discounts to brokers and dealers in trust certificates

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

19 no applicant for refinancing under section 504 of this Act

20 need demonstrate that the requisite number of jobs will

21 be created or preserved with the proceeds of such refinanc22 ing: Provided further, That a development company which

23 provides refinancing under this subsection shall be limited

24 to a loan processing fee not to exceed one-half of one per-
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1 cent to cover the cost of packaging, processing and other

2 nonlegal staff functions.

3 SEC. 503. MODIFICATION OF SMALL BUSINESS INVEST4 MENT COMPANY DEBENTURE INTEREST

5 RATES.

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

7 the Small Business Administration is authorized to trans8 fer to the Federal Financing Bank such sums as may be

9 necessary to carry out the provisions of this section in

10 order to reduce the interest rate on a debenture issued

11 by a Small Business Investment Company under the provi12 sions of title III of the Small Business Investment Act

13 of 1958. The reduction shall be effective January 2, 1995

14 and shall apply for the remainder of the term of the deben15 ture.

16 (b) INTEREST RATE MODIFICATION.—Upon receipt

17 of such payment, the Federal Financing Bank shall mod18 ify the interest rate of each debenture for which the pay19 ment is made. No other change shall be made in the terms

20 and conditions of the debenture, and the modification in

21 the interest rate shall not be construed as new budget au22 thority nor require any additional appropriation for credit

23 subsidy on account of the modification.

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

25 the term ‘‘issuer’’ means the issuer of a debenture pursu-
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1 ant to section 303 of the Small Business Investment Act

2 of 1958 which has been purchased by the Federal Financ3 ing Bank if the debenture is outstanding on the date of

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

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

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

7 affect any rights or options of the issuer which are other8 wise authorized by contract or by law.

9 SEC. 504. MODIFICATION OF SPECIALIZED SMALL BUSI10 NESS INVESTMENT COMPANY DEBENTURE

11 INTEREST RATES.

12 (a) INTEREST RATE MODIFICATION.—Upon the re13 quest of the issuer, the Small Business Administration is

14 authorized to modify the interest rate on a debenture is15 sued by a Small Business Investment Company licensed

16 under the provisions of section 301(d) of the Small Busi17 ness Investment Act of 1958 and which is held by the Ad18 ministration. No debenture which has been sold to a third

19 party shall be eligible for modification under this section.

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

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

22 other change shall be made in the terms and conditions

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

24 shall not be construed as new budget authority nor require
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1 any additional appropriation for credit subsidy on account

2 of the modification.

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

4 the term ‘‘issuer’’ means a Specialized Small Business In5 vestment Company licensed under the provisions of section

6 301(d) of the Small Business Investment Act of 1958

7 which has issued a debenture which has been funded by

8 the Small Business Administration, providing the deben9 ture is outstanding on the date of enactment of this Act

10 and is not in default on such date.

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

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

13 affect any rights or options of the issuer which are other14 wise authorized by contract or by law.

15 SEC. 505. INTEREST RATE REDUCTIONS.

16 (a) IN GENERAL.—Upon enactment of an Appropria17 tions Act providing funds to carry out the provisions of

18 this Act and limited to amounts specifically provided in

19 advance in Appropriations Acts, the Small Business Ad20 ministration shall evaluate the outstanding portfolio of de21 bentures which are eligible for interest rate relief under

22 this Act. The Administration shall apply the funds appro23 priated to carry out this Act in order to reduce the highest

24 interest rate on all eligible debentures to a uniform rate.
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1 (b) AUTHORIZATION.—There are authorized to be ap2 propriated $30 million to carry out the provisions of this

3 Act in fiscal year 1995.

4 TITLE VI—DEVELOPMENT OF

5 WOMEN-OWNED BUSINESSES

6 SEC. 601. STATUS OF COUNCIL.

7 Section 401 of the Women’s Business Ownership Act

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

9 405 of such Act and, as redesignated, is amended—

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

11 COUNCIL’’ after ‘‘ESTABLISHMENT’’; and

12 (2) by striking the period at the end and insert13 ing the following: ‘‘which shall serve as an independ14 ent advisory council to the Interagency Committee

15 on Women’s Business Enterprise, to the Adminis16 trator of the Small Business Administration, and to

17 the Congress of the United States. The Council, in

18 order to carry out its function as an independent ad19 visory council to the Congress, is authorized and di20 rected to report independently of the Interagency

21 Committee directly to the Congress at such times

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

23 appropriate.’’.
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1 SEC. 602. DUTIES OF NATIONAL WOMEN’S BUSINESS COUN2 CIL.

3 Section 402 of the Women’s Business Ownership Act

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

5 406 of such Act and, as redesignated, is amended to read

6 as follows:

7 ‘‘SEC. 406. DUTIES OF THE COUNCIL.

8 ‘‘The Council shall meet at such times as it deter9 mines necessary in order to advise and consult with the

10 Interagency Committee on Women’s Business Enterprise

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

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

13 shall make annual recommendations for consideration by

14 the Committee. The Council also shall provide reports and

15 make such other recommendations as it deems appropriate

16 to the Committee, to the Administrator of the Small Busi17 ness Administration, and to the Small Business Commit18 tee of the United States Senate and to the Small Business

19 Committee of the United States House of Representa20 tives.’’.

21 SEC. 603. MEMBERSHIP OF THE COUNCIL.

22 Section 403 of the Women’s Business Ownership Act

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

24 407 of such Act, and, as redesignated, is amended to read

25 as follows:
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1 ‘‘SEC. 407. MEMBERSHIP OF THE COUNCIL.

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

3 who shall be appointed by the Administrator of the Small

4 Business Administration and who shall serve at the Ad5 ministrator’s discretion. In making the appointments, the

6 Administrator shall include racial, geographic and eco7 nomic diversity, and representation from diverse sectors

8 of the economy, including manufacturing, high technology,

9 services and credit institutions, and shall give priority to

10 include representation of major women’s business organi11 zations.

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

13 woman-owned business shall be eligible for appointment,

14 and not more than eight appointees shall be members of

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

16 subsequently becomes an officer or employee of the Fed17 eral Government or of the Congress, such individual may

18 continue as a member of the Council for not longer than

19 the thirty-day period beginning on the date such individual

20 becomes such an officer or employee.

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

22 to serve as its Chairperson. The Chairperson of the Coun23 cil, or her designee, shall be the representative of the

24 Council to all meetings of the Interagency Committee on

25 Women’s Business Enterprise.
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1 ‘‘(d) The Council shall meet not less than four times

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

3 at such times as she deems appropriate.

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

5 for such membership, except they shall be entitled to reim6 bursement for travel, subsistence, and other necessary ex7 penses incurred by them in carrying out the functions of

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

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

10 Business Act.’’.

11 SEC. 604. INTERAGENCY COMMITTEE.

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

13 1988 (15 U.S.C. 631 note) is amended by striking section

14 404 and by inserting the following new sections prior to

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

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

17 ‘‘There is established an Interagency Committee to

18 be known as the ‘Interagency Committee on Women’s

19 Business Enterprise’ (hereinafter in this title referred to

20 as the Committee).

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

22 ‘‘The Committee shall—

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

24 plans, programs and operations of the departments

25 and agencies of the Federal Government which may
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1 contribute to the establishment, preservation and

2 strengthening of women’s business enterprise. It

3 may, as appropriate, develop comprehensive inter4 agency plans and specific program goals for women’s

5 business enterprise with the cooperation of Federal

6 departments and agencies;

7 ‘‘(2) promote the better utilization of the activi8 ties and resources of State and local governments,

9 business and trade associations, private industry,

10 colleges and universities, foundations, professional

11 organizations, and volunteer and women’s business

12 enterprise, and facilitate the coordination of the ef13 forts of these groups with those of Federal depart14 ments and agencies;

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

16 promote new initiatives designed to foster women’s

17 business enterprise, and to develop policies, pro18 grams, and plans intended to promote such develop19 ment;

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

21 and public and private sector studies of the problems

22 of women entrepreneurs, and promote further re23 search into such problems; and

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

25 public-private sector effort to facilitate the develop-
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1 ment and growth of women-owned businesses. The

2 Committee should submit the plan to the President

3 for review within six months of the effective date of

4 this Act.

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

6 ‘‘(a) The Committee shall be composed of representa7 tives of the following departments and agencies: The De8 partments of Agriculture, Commerce, Defense, Energy,

9 Health and Human Services, Education, Housing and

10 Urban Development, Interior, Justice, Labor, Transpor11 tation, Treasury, the Federal Trade Commission, General

12 Services Administration, National Science Foundation,

13 Office of Federal Procurement Policy, and the Director

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

15 Business Administration, who shall serve as Vice Chair16 person of the Committee. The head of each such depart17 ment and agency shall designate a representative who

18 shall be a policy making official within the department or

19 agency.

20 ‘‘(b) The Committee shall have a Chairperson ap21 pointed by the President, after consultation with the Ad22 ministrator of the Small Business Administration and the

23 Chief Counsel for Advocacy of the Small Business Admin24 istration. The Chairperson shall be the head of a Federal

25 department or agency. If the Chairperson is the head of
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1 one of the departments or agencies enumerated in sub2 section (a), he or she shall also serve as the representative

3 of such department or agency.

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

5 times per year. Meetings shall be at the call of the Chair6 person at such times as he or she deems appropriate.

7 ‘‘(d) The members of the Committee shall serve with8 out additional pay for such membership.

9 ‘‘(e) The Chairperson of the Committee may des10 ignate a Director of the Committee, after consultation

11 with the Administrator of the Small Business Administra12 tion and the Chief Counsel for Advocacy of the Small

13 Business Administration.

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

15 appoint to his staff under the provisions of section 204

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

17 designated under subsection (e). He or she is also author18 ized to provide additional staff and administrative support

19 for the Committee.

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

21 Ownership of the Small Business Administration is au22 thorized to provide additional staff and administrative

23 support for the Committee.
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1 ‘‘SEC. 404. REPORTS FROM THE COMMITTEE.

2 ‘‘The Committee shall transmit to the President and

3 to the Small Business Committee of the United States

4 Senate and to the Small Business Committee of the Unit5 ed States House of Representatives a report no less than

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

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

8 reports shall contain any recommendations from the

9 Council and any comments of the Committee thereon, a

10 detailed statement on the activities of the Committee, the

11 findings and conclusions of the Committee, together with

12 its recommendations for such legislation and administra13 tive actions as it considers appropriate to promote the de14 velopment of small business concerns owned and con15 trolled by women.’’.

16 SEC. 605. REPEALER.

17 Sections 404 through 407 of the Women’s Business

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

19 date of the enactment of this Act, are repealed and the

20 following new section is added at the end of title IV of

21 such Act:

22 ‘‘SEC. 408. DEFINITIONS.

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

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

25 small business which is at least 51 percent owned by

26 a woman or women who also control and operate it;
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1 ‘‘(2) ‘control’ shall mean exercising the power

2 to make policy decisions;

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

4 in the day-to-day management; and

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

6 woman-owned business or businesses or the efforts

7 of a woman or women to establish, maintain, or de8 velop such a business or businesses.’’.

9 SEC. 606. EXTENSION OF AUTHORITY FOR DEMONSTRA10 TION PROJECTS.

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

12 section 2 of Public Law 102–191, is redesignated as sec13 tion 29 and, as so redesignated, is amended by striking

14 from subsection (g) ‘‘1995’’ and by inserting ‘‘1997’’.

15 SEC. 607. ESTABLISHMENT OF OFFICE OF WOMEN’S BUSI16 NESS OWNERSHIP.

17 Section 29 of the Small Business Act, as redesignated

18 by section 606 of this Act, is amended by adding the fol19 lowing new subsection at the end:

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

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

22 responsible for the administration of the Administration’s

23 programs for the development of women’s business enter24 prises as defined in section 408 of the Women’s Business
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1 Ownership Act of 1988. The Office shall be headed by a

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

3 SEC. 608. TECHNICAL AND CONFORMING AMENDMENTS.

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

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

6 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.’’.

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

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

9 to read as follows:

10 ‘‘TITLE IV—DEVELOPMENT OF WOMEN’S

11 BUSINESS ENTERPRISES’’.

12 SEC. 609. AUTHORIZATION.

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

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

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

16 Act of 1988 (15 U.S.C. 631 note).
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1 TITLE VII—MISCELLANEOUS

2 AMENDMENTS

3 SEC. 701. HANDICAPPED PARTICIPATION IN SMALL BUSI4 NESS SET ASIDE CONTRACTS.

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

6 644(c)) is amended—

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

8 follows:

9 ‘‘(2)(A) During each fiscal year, public or private or10 ganizations for the handicapped shall be eligible to partici11 pate in programs authorized under this section in an ag12 gregate amount not to exceed $50,000,000.’’; and

13 (2) by adding the following new paragraph at

14 the end thereof:

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

16 pursuant to the provisions of this subsection may be ex17 tended for up to two additional years.’’.

18 SEC. 702. SBA INTEREST PAYMENTS TO TREASURY.

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

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

21 ‘‘(ii) The Administration shall pay into the mis22 cellaneous receipts of the Treasury following the close of

23 each fiscal year the actual interest it collects during that

24 fiscal year on all financings made under the authority of

25 this Act.’’.
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1 SEC. 703. IMPOSITION OF FEES.

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

3 634(b)) is amended—

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

5 end;

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

7 the end and inserting a semicolon; and

8 (3) by adding the following new paragraphs at

9 the end:

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

11 which are specifically authorized by law or which are

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

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

14 administrator is authorized to impose, retain and

15 utilize, subject to approval in appropriations Acts,

16 the following additional fees—

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

18 servicing action requested after disbursement of

19 the loan, including substitution of collateral,

20 loan assumptions, release or substitution of

21 guarantors, reamortizations or similar actions;

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

23 involved in the production and dissemination of

24 compilations of information produced by the

25 Administration under the authority of the Small
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1 Business Act and the Small Business Invest2 ment Act of 1958; and

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

4 approval in appropriations Acts, any amounts col5 lected by fiscal transfer agents and not used by such

6 agent as payment of the cost of loan pooling or de7 benture servicing operations: Provided, That any

8 monies so collected shall be utilized solely to facili9 tate the administration of the program which gen10 erated the excess monies.’’.

11 SEC. 704. SBIR VENDORS.

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

13 638(q)(2)) is amended to read as follows:

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

15 select a vendor to assist small business concerns to

16 meet the goals listed in paragraph (1). Such selec17 tion shall be competitive using merit-based criteria,

18 for a term not to exceed 3 years.’’.

19 SEC. 705. MANUFACTURING CONTRACTS.

20 (a) ESTABLISHMENT OF PILOT PROGRAM.—Section

21 15 of the Small Business Act (15 U.S.C. 644) is amended

22 by adding at the end the following:

23 ‘‘(p) MANUFACTURING MODERNIZATION PILOT PRO24 GRAM.—
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1 ‘‘(1) ESTABLISHMENT.—The Administrator

2 may establish and carry out a manufacturing mod3 ernization pilot program (hereinafter in this section

4 referred to as the ‘program’) for the purpose of pro5 moting the award of Federal procurement contracts

6 to small business concerns that participate in manu7 facturing application and education centers that are

8 established or certified pursuant to paragraph (2).

9 ‘‘(2) MANUFACTURING APPLICATION AND EDU10 CATION CENTERS.—The Administrator may estab11 lish manufacturing application and education centers

12 which will provide training to small business con13 cerns on new and innovative manufacturing prac14 tices in a shared-use production environment and

15 which will assist such concerns in carrying out Fed16 eral procurement contracts for the manufacture of

17 components and subsystems. The Administrator may

18 also certify existing manufacturing application and

19 education centers for participation in the program.

20 ‘‘(3) USE OF PRIVATE CENTERS AS EXAM21 PLES.—In establishing any manufacturing applica22 tion and education centers pursuant to paragraph

23 (2), the Administrator may use as examples manu24 facturing application and education centers in the

25 private sector that provide the following services:
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1 technology demonstration, technology education,

2 technology application support, technology advance3 ment support, and technology awareness.

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

5 Administrator and the head of a contracting agency

6 may identify for additional small business set-asides

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

8 particular any procurement which is being foreign9 sourced or is considered critical, which is susceptible

10 to performance by a small business concern if the

11 concern is assisted by a manufacturing application

12 and education center under the program. Any such

13 procurement shall be subject to the requirements of

14 subsection (a), including requirements relating to

15 any failure of the Administrator and the head of the

16 contracting agency to agree on procurement meth17 ods.

18 ‘‘(5) NONAPPLICABILITY OF PERFORMANCE RE19 QUIREMENT.—The requirement of subsection

20 (o)(1)(B) shall not apply with respect to any con21 tract carried out by a small business concern under

22 the program with the assistance of a manufacturing

23 application and education center.

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

25 after the date of the enactment of this subsection,
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1 the Administrator shall issue regulations to carry

2 out this subsection if he determines it appropriate to

3 carry out the program authorized by this subsection.

4 ‘‘(7) REPORTS.—

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

6 3 months after the last day of the fiscal year

7 in which final regulations are issued pursuant

8 to paragraph (6), the Administrator shall trans9 mit to the Committees on Small Business of the

10 House of Representatives and the Senate a re11 port on the progress of the program.

12 ‘‘(B) FINAL REPORT.—If the Adminis13 trator establishes the program authorized here14 in, not later than March 31, 1999, he shall

15 transmit to the Committees on Small Business

16 of the House of Representatives and the Senate

17 a report on the success of the program in—

18 ‘‘(i) enabling deployment of tech19 nology to small business concerns partici20 pating in the program, and

21 ‘‘(ii) assisting manufacturing applica22 tion and education centers in achieving

23 self-sufficiency,
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1 together with recommendations concerning con2 tinuation, modification, or discontinuance of the

3 program.

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

5 carry out the program during the period beginning

6 on the date of issuance of final regulations under

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

8 ‘‘(9) AUTHORIZATION OF APPROPRIATIONS.—

9 There are authorized to be appropriated such sums

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

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

12 LAWFULLY WITHIN THE UNITED STATES.

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

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

15 304 of this Act, the following:

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

17 LAWFULLY WITHIN THE UNITED STATES.

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

19 Act may be used to provide any direct benefit or assistance

20 to any individual in the United States when it is made

21 known to the Administrator of the Small Business Admin22 istration or the official to which the funds are made avail23 able that the individual is not lawfully within the United

24 States.’’.
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1 SEC. 707. OFFICE OF ADVOCACY EMPLOYEES.

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

3 is amended as follows—

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

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

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

7 by inserting ‘‘14’’.

8 (2) in paragraph (1) by striking ‘‘GS–15 of the

9 General Schedule’’ and all that follows and inserting

10 ‘‘GS–15 of the General Schedule: Provided, however,

11 That not more than 14 staff personnel at any one

12 time may be employed and compensated at a rate in

13 excess of GS–15, step 10, of the General Schedule;’’.

14 SEC. 708. ADVOCACY STUDY OF PAPERWORK AND TAX IM15 PACT.

16 The Chief Counsel for Advocacy of the Small Busi17 ness Administration shall conduct a study of the impact

18 of all Federal regulatory paperwork and tax requirements

19 upon small business and report its findings to the Con20 gress within 1 year of the date of the enactment of this

21 Act.

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