II

106TH CONGRESS

2D SESSION S. 3236

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

and for other purposes.

IN THE SENATE OF THE UNITED STATES

OCTOBER 25 (legislative day, SEPTEMBER 22), 2000

Mr. BOND introduced the following bill; which was read twice and referred to

the Committee on Small Business

A BILL

To provide for reauthorization of small business loan and

other programs, and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

7 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—SMALL BUSINESS INNOVATION RESEARCH PROGRAM

Sec. 101. Short title.

Sec. 102. Findings.

Sec. 103. Extension of SBIR program.
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Sec. 104. Annual report.

Sec. 105. Third phase assistance.

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

Sec. 107. Output and outcome data.

Sec. 108. National Research Council reports.

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

Sec. 110. Policy directive modifications.

Sec. 111. Federal and State technology partnership program.

Sec. 112. Mentoring networks.

Sec. 113. Simplified reporting requirements.

Sec. 114. Rural outreach program extension.

TITLE II—BUSINESS LOAN PROGRAMS

Sec. 201. Short title.

Sec. 202. Levels of participation.

Sec. 203. Loan amounts.

Sec. 204. Interest on defaulted loans.

Sec. 205. Prepayment of loans.

Sec. 206. Guarantee fees.

Sec. 207. Lease terms.

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

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

Sec. 210. Microloan program.

TITLE III—CERTIFIED DEVELOPMENT COMPANY PROGRAM

Sec. 301. Short title.

Sec. 302. Women-owned businesses.

Sec. 303. Maximum debenture size.

Sec. 304. Fees.

Sec. 305. Premier certified lenders program.

Sec. 306. Sale of certain defaulted loans.

Sec. 307. Loan liquidation.

TITLE IV—CORRECTIONS TO THE SMALL BUSINESS INVESTMENT

ACT OF 1958

Sec. 401. Short title.

Sec. 402. Definitions.

Sec. 403. Investment in small business investment companies.

Sec. 404. Subsidy fees.

Sec. 405. Distributions.

Sec. 406. Conforming amendment.

TITLE V—REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

Sec. 501. Short title.

Sec. 502. Reauthorization of small business programs.

Sec. 503. Additional reauthorizations.

Sec. 504. Cosponsorship.

TITLE VI—HUBZONE PROGRAM

Subtitle A—HUBZones in Native America

Sec. 601. Short title.

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

Sec. 604. Other definitions.

Subtitle B—Other HUBZone Provisions

Sec. 611. Definitions.

Sec. 612. Eligible contracts.

Sec. 613. HUBZone redesignated areas.

Sec. 614. Community development.

Sec. 615. Reference corrections.

TITLE VII—NATIONAL WOMEN’S BUSINESS COUNCIL

REAUTHORIZATION

Sec. 701. Short title.

Sec. 702. Membership of the Council.

Sec. 703. Repeal of procurement project.

Sec. 704. Studies and other research.

Sec. 705. Authorization of appropriations.

TITLE VIII—MISCELLANEOUS PROVISIONS

Sec. 801. Loan application processing.

Sec. 802. Application of ownership requirements.

Sec. 803. Subcontracting preference for veterans.

Sec. 804. Small Business Development Center Program funding.

Sec. 805. Surety bonds.

Sec. 806. Size standards.

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

Sec. 808. National Veterans Business Development Corporation correction.

Sec. 809. Private sector resources for SCORE.

Sec. 810. Contract data collection.

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

Sec. 812. Participation in government contracts by certain small businesses.

1 TITLE I—SMALL BUSINESS INNO2 VATION RESEARCH PROGRAM

3 SECTION 101. SHORT TITLE.

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

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

7 SEC. 102. FINDINGS.

8 Congress finds that—

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

2 the Small Business Research and Development En3 hancement Act of 1992 (in this title referred to as

4 the ‘‘SBIR program’’) is highly successful in involv5 ing small businesses in federally funded research

6 and development;

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

8 and unique research and development capabilities

9 possessed by the small businesses of the Nation

10 available to Federal agencies and departments;

11 (3) the innovative goods and services developed

12 by small businesses that participated in the SBIR

13 program have produced innovations of critical impor14 tance in a wide variety of high-technology fields, in15 cluding biology, medicine, education, and defense;

16 (4) the SBIR program is a catalyst in the pro17 motion of research and development, the commer18 cialization of innovative technology, the development

19 of new products and services, and the continued ex20 cellence of this Nation’s high-technology industries;

21 and

22 (5) the continuation of the SBIR program will

23 provide expanded opportunities for one of the Na24 tion’s vital resources, its small businesses, will foster

25 invention, research, and technology, will create jobs,
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1 and will increase this Nation’s competitiveness in

2 international markets.

3 SEC. 103. EXTENSION OF SBIR PROGRAM.

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

5 638(m)) is amended to read as follows:

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

7 the Small Business Innovation Research Program estab8 lished under this section shall terminate on September 30,

9 2008.’’.

10 SEC. 104. ANNUAL REPORT.

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

12 638(b)(7)) is amended by striking ‘‘and the Committee on

13 Small Business of the House of Representatives’’ and in14 serting ‘‘, and to the Committee on Science and the Com15 mittee on Small Business of the House of Representa16 tives,’’.

17 SEC. 105. THIRD PHASE ASSISTANCE.

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

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

20 and inserting ‘‘; or’’.

21 SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORM22 ANCE PLAN.

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

24 638(g)) is amended—
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1 (1) in paragraph (7), by striking ‘‘and’’ at the

2 end;

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

4 the end and inserting a semicolon; and

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

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

7 plan as required by subsections (a) and (b) of sec8 tion 1115 of title 31, United States Code, a section

9 on its SBIR program, and shall submit such section

10 to the Committee on Small Business of the Senate,

11 and the Committee on Science and the Committee

12 on Small Business of the House of Representatives;

13 and’’.

14 SEC. 107. OUTPUT AND OUTCOME DATA.

15 (a) COLLECTION.—Section 9(g) of the Small Busi16 ness Act (15 U.S.C. 638(g)), as amended by section 106

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

18 following:

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

20 in accordance with subsection (v), such information

21 from awardees as is necessary to assess the SBIR

22 program, including information necessary to main23 tain the database described in subsection (k).’’.

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

25 Small Business Act (15 U.S.C. 638(b)(7)), as amended
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1 by section 104 of this Act, is further amended by inserting

2 before the period at the end ‘‘, including the data on out3 put and outcomes collected pursuant to subsections

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

5 which Federal agencies are providing in a timely manner

6 information needed to maintain the database described in

7 subsection (k)’’.

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

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

10 ‘‘(k) DATABASE.—

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

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

14 Act of 2000, the Administrator shall develop, main15 tain, and make available to the public a searchable,

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

17 ‘‘(A) the name, size, location, and an iden18 tifying number assigned by the Administrator,

19 of each small business concern that has received

20 a first phase or second phase SBIR award from

21 a Federal agency;

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

23 second phase SBIR award received by that

24 small business concern, including—
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1 ‘‘(i) an abstract of the project funded

2 by the award, excluding any proprietary in3 formation so identified by the small busi4 ness concern;

5 ‘‘(ii) the Federal agency making the

6 award; and

7 ‘‘(iii) the date and amount of the

8 award;

9 ‘‘(C) an identification of any business con10 cern or subsidiary established for the commer11 cial application of a product or service for

12 which an SBIR award is made; and

13 ‘‘(D) information regarding mentors and

14 Mentoring Networks, as required by section

15 35(d).

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

17 180 days after the date of enactment of the Small

18 Business Innovation Research Program Reauthoriza19 tion Act of 2000, the Administrator, in consultation

20 with Federal agencies required to have an SBIR

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

22 and maintain a database to be used solely for SBIR

23 program evaluation that—

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

25 made by a Federal agency—
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1 ‘‘(i) information collected in accord2 ance with paragraph (3) on revenue from

3 the sale of new products or services result4 ing from the research conducted under the

5 award;

6 ‘‘(ii) information collected in accord7 ance with paragraph (3) on additional in8 vestment from any source, other than first

9 phase or second phase SBIR or STTR

10 awards, to further the research and devel11 opment conducted under the award; and

12 ‘‘(iii) any other information received

13 in connection with the award that the Ad14 ministrator, in conjunction with the SBIR

15 program managers of Federal agencies,

16 considers relevant and appropriate;

17 ‘‘(B) includes any narrative information

18 that a small business concern receiving a second

19 phase award voluntarily submits to further de20 scribe the outputs and outcomes of its awards;

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

22 phase or second phase award that does not re23 ceive such an award—
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1 ‘‘(i) the name, size, and location, and

2 an identifying number assigned by the Ad3 ministration;

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

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

6 application was made;

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

8 or available to any Federal agency that such

9 agency considers may be useful for SBIR pro10 gram evaluation; and

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

12 evaluation purposes by the Federal Government

13 or, in accordance with policy directives issued

14 by the Administration, by other authorized per15 sons who are subject to a use and nondisclosure

16 agreement with the Federal Government cov17 ering the use of the database.

18 ‘‘(3) UPDATING INFORMATION FOR DATA19 BASE.—

20 ‘‘(A) IN GENERAL.—A small business con21 cern applying for a second phase award under

22 this section shall be required to update informa23 tion in the database established under this sub24 section for any prior second phase award re25 ceived by that small business concern. In com-
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1 plying with this paragraph, a small business

2 concern may apportion sales or additional in3 vestment information relating to more than one

4 second phase award among those awards, if it

5 notes the apportionment for each award.

6 ‘‘(B) ANNUAL UPDATES UPON TERMI7 NATION.—A small business concern receiving a

8 second phase award under this section shall—

9 ‘‘(i) update information in the data10 base concerning that award at the termi11 nation of the award period; and

12 ‘‘(ii) be requested to voluntarily up13 date such information annually thereafter

14 for a period of 5 years.

15 ‘‘(4) PROTECTION OF INFORMATION.—Informa16 tion provided under paragraph (2) shall be consid17 ered privileged and confidential and not subject to

18 disclosure pursuant to section 552 of title 5, United

19 States Code.

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

21 information in the database under this subsection

22 shall not be considered to be publication for pur23 poses of subsection (a) or (b) of section 102 of title

24 35, United States Code.’’.
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1 SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.

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

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

4 its SBIR program for fiscal year 1999, in consultation

5 with the Small Business Administration, shall, not later

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

7 cooperatively enter into an agreement with the National

8 Academy of Sciences for the National Research Council

9 to—

10 (1) conduct a comprehensive study of how the

11 SBIR program has stimulated technological innova12 tion and used small businesses to meet Federal re13 search and development needs, including—

14 (A) a review of the value to the Federal re15 search agencies of the research projects being

16 conducted under the SBIR program, and of the

17 quality of research being conducted by small

18 businesses participating under the program, in19 cluding a comparison of the value of projects

20 conducted under the SBIR program to those

21 funded by other Federal research and develop22 ment expenditures;

23 (B) to the extent practicable, an evaluation

24 of the economic benefits achieved by the SBIR

25 program, including the economic rate of return,

26 and a comparison of the economic benefits, in-
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1 cluding the economic rate of return, achieved by

2 the SBIR program with the economic benefits,

3 including the economic rate of return, of other

4 Federal research and development expenditures;

5 (C) an evaluation of the noneconomic bene6 fits achieved by the SBIR program over the life

7 of the program;

8 (D) a comparison of the allocation for fis9 cal year 2000 of Federal research and develop10 ment funds to small businesses with such allo11 cation for fiscal year 1983, and an analysis of

12 the factors that have contributed to such alloca13 tion; and

14 (E) an analysis of whether Federal agen15 cies, in fulfilling their procurement needs, are

16 making sufficient effort to use small businesses

17 that have completed a second phase award

18 under the SBIR program; and

19 (2) make recommendations with respect to—

20 (A) measures of outcomes for strategic

21 plans submitted under section 306 of title 5,

22 United States Code, and performance plans

23 submitted under section 1115 of title 31,

24 United States Code, of each Federal agency

25 participating in the SBIR program;
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1 (B) whether companies who can dem2 onstrate project feasibility, but who have not re3 ceived a first phase award, should be eligible for

4 second phase awards, and the potential impact

5 of such awards on the competitive selection

6 process of the program;

7 (C) whether the Federal Government

8 should be permitted to recoup some or all of its

9 expenses if a controlling interest in a company

10 receiving an SBIR award is sold to a foreign

11 company or to a company that is not a small

12 business concern;

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

14 Government in its programs and procurements

15 of technology-oriented small businesses; and

16 (E) improvements to the SBIR program, if

17 any are considered appropriate.

18 (b) PARTICIPATION BY SMALL BUSINESS.—

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

20 law and with National Research Council study

21 guidelines and procedures, knowledgeable individuals

22 from the small business community with experience

23 in the SBIR program shall be included—

24 (A) in any panel established by the Na25 tional Research Council for the purpose of per-
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1 forming the study conducted under this section;

2 and

3 (B) among those who are asked by the Na4 tional Research Council to peer review the

5 study.

6 (2) CONSULTATION.—To ensure that the con7 cerns of small business are appropriately considered

8 under this subsection, the National Research Council

9 shall consult with and consider the views of the Of10 fice of Technology and the Office of Advocacy of the

11 Small Business Administration and other interested

12 parties, including entities, organizations, and indi13 viduals actively engaged in enhancing or developing

14 the technological capabilities of small business con15 cerns.

16 (c) PROGRESS REPORTS.—The National Research

17 Council shall provide semiannual progress reports on the

18 study conducted under this section to the Committee on

19 Science and the Committee on Small Business of the

20 House of Representatives, and to the Committee on Small

21 Business of the Senate.

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

23 transmit to the heads of agencies entering into an agree24 ment under this section and to the Committee on Science

25 and the Committee on Small Business of the House of
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1 Representatives, and to the Committee on Small Business

2 of the Senate—

3 (1) not later than 3 years after the date of en4 actment of this Act, a report including the results of

5 the study conducted under subsection (a)(1) and rec6 ommendations made under subsection (a)(2); and

7 (2) not later than 6 years after that date of en8 actment, an update of such report.

9 SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR

10 PROGRAM.

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

12 638(i)) is amended—

13 (1) by striking ‘‘(i) Each Federal’’ and insert14 ing the following:

15 ‘‘(i) ANNUAL REPORTING.—

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

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

18 ‘‘(2) CALCULATION OF EXTRAMURAL BUDG19 ET.—

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

21 months after the date of enactment of each ap22 propriations Act for a Federal agency required

23 by this section to have an SBIR program, the

24 Federal agency shall submit to the Adminis25 trator a report, which shall include a descrip-
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1 tion of the methodology used for calculating the

2 amount of the extramural budget of that Fed3 eral agency.

4 ‘‘(B) ADMINISTRATOR’S ANALYSIS.—The

5 Administrator shall include an analysis of the

6 methodology received from each Federal agency

7 referred to in subparagraph (A) in the report

8 required by subsection (b)(7).’’.

9 SEC. 110. POLICY DIRECTIVE MODIFICATIONS.

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

11 638(j)) is amended by adding at the end the following:

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

13 than 120 days after the date of enactment of the

14 Small Business Innovation Research Program Reau15 thorization Act of 2000, the Administrator shall

16 modify the policy directives issued pursuant to this

17 subsection—

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

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

20 funding awards under this section, including

21 the first phase (as described in subsection

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

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

24 described in subsection (e)(4)(C));
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1 ‘‘(B) to provide for the requirement of a

2 succinct commercialization plan with each appli3 cation for a second phase award that is moving

4 toward commercialization;

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

6 Administration, not less frequently than annu7 ally, all instances in which an agency pursued

8 research, development, or production of a tech9 nology developed by a small business concern

10 using an award made under the SBIR program

11 of that agency, and determined that it was not

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

13 program funding agreement with the small

14 business concern, which report shall include, at

15 a minimum—

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

17 funding agreement with the small business

18 concern was not practicable;

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

20 which the agency contracted to perform

21 the research, development, or production;

22 and

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

24 funding agreement under which the re-
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1 search, development, or production was ob2 tained; and

3 ‘‘(D) to implement subsection (v), includ4 ing establishing standardized procedures for the

5 provision of information pursuant to subsection

6 (k)(3).’’.

7 SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNER8 SHIP PROGRAM.

9 (a) FINDINGS.—Congress finds that—

10 (1) programs to foster economic development

11 among small high-technology firms vary widely

12 among the States;

13 (2) States that do not aggressively support the

14 development of small high-technology firms, includ15 ing participation by small business concerns in the

16 SBIR program, are at a competitive disadvantage in

17 establishing a business climate that is conducive to

18 technology development; and

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

20 support for science and technology research in these

21 disadvantaged States will expand economic opportu22 nities in the United States, create jobs, and increase

23 the competitiveness of the United States in the

24 world market.
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1 (b) FEDERAL AND STATE TECHNOLOGY PARTNER2 SHIP PROGRAM.—The Small Business Act (15 U.S.C. 631

3 et seq.) is amended—

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

5 and

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

7 ‘‘SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNER8 SHIP PROGRAM.

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

10 the following definitions apply:

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

12 an entity, organization, or individual that submits a

13 proposal for an award or a cooperative agreement

14 under this section.

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

16 The term ‘business advice and counseling’ means

17 providing advice and assistance on matters described

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

19 guide them through the SBIR and STTR program

20 process, from application to award and successful

21 completion of each phase of the program.

22 ‘‘(3) FAST PROGRAM.—The term ‘FAST pro23 gram’ means the Federal and State Technology

24 Partnership Program established under this section.
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1 ‘‘(4) MENTOR.—The term ‘mentor’ means an

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

3 ‘‘(5) MENTORING NETWORK.—The term ‘Men4 toring Network’ means an association, organization,

5 coalition, or other entity (including an individual)

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

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

8 person that receives an award or becomes party to

9 a cooperative agreement under this section.

10 ‘‘(7) SBIR PROGRAM.—The term ‘SBIR pro11 gram’ has the same meaning as in section 9(e)(4).

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

13 the several States, the District of Columbia, the

14 Commonwealth of Puerto Rico, the Virgin Islands,

15 Guam, and American Samoa.

16 ‘‘(9) STTR PROGRAM.—The term ‘STTR pro17 gram’ has the same meaning as in section 9(e)(6).

18 ‘‘(b) ESTABLISHMENT OF PROGRAM.—The Adminis19 trator shall establish a program to be known as the Fed20 eral and State Technology Partnership Program, the pur21 pose of which shall be to strengthen the technological com22 petitiveness of small business concerns in the States.

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

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

25 FAST program under this section, the Adminis-
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1 trator and the SBIR program managers at the Na2 tional Science Foundation and the Department of

3 Defense shall jointly review proposals submitted by

4 applicants and may make awards or enter into coop5 erative agreements under this section based on the

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

7 in order to enhance or develop in a State—

8 ‘‘(A) technology research and development

9 by small business concerns;

10 ‘‘(B) technology transfer from university

11 research to technology-based small business

12 concerns;

13 ‘‘(C) technology deployment and diffusion

14 benefiting small business concerns;

15 ‘‘(D) the technological capabilities of small

16 business concerns through the establishment or

17 operation of consortia comprised of entities, or18 ganizations, or individuals, including—

19 ‘‘(i) State and local development agen20 cies and entities;

21 ‘‘(ii) representatives of technology22 based small business concerns;

23 ‘‘(iii) industries and emerging compa24 nies;

25 ‘‘(iv) universities; and
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1 ‘‘(v) small business development cen2 ters; and

3 ‘‘(E) outreach, financial support, and tech4 nical assistance to technology-based small busi5 ness concerns participating in or interested in

6 participating in an SBIR program, including

7 initiatives—

8 ‘‘(i) to make grants or loans to com9 panies to pay a portion or all of the cost

10 of developing SBIR proposals;

11 ‘‘(ii) to establish or operate a Men12 toring Network within the FAST program

13 to provide business advice and counseling

14 that will assist small business concerns

15 that have been identified by FAST pro16 gram participants, program managers of

17 participating SBIR agencies, the Adminis18 tration, or other entities that are knowl19 edgeable about the SBIR and STTR pro20 grams as good candidates for the SBIR

21 and STTR programs, and that would ben22 efit from mentoring, in accordance with

23 section 35;

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

25 training program for individuals providing
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1 SBIR outreach and assistance at the State

2 and local levels; and

3 ‘‘(iv) to encourage the commercializa4 tion of technology developed through SBIR

5 program funding.

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

7 awards or entering into cooperative agreements

8 under this section, the Administrator and the SBIR

9 program managers referred to in paragraph (1)—

10 ‘‘(A) may only consider proposals by appli11 cants that intend to use a portion of the Fed12 eral assistance provided under this section to

13 provide outreach, financial support, or technical

14 assistance to technology-based small business

15 concerns participating in or interested in par16 ticipating in the SBIR program; and

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

18 ‘‘(i) whether the applicant has dem19 onstrated that the assistance to be pro20 vided would address unmet needs of small

21 business concerns in the community, and

22 whether it is important to use Federal

23 funding for the proposed activities;

24 ‘‘(ii) whether the applicant has dem25 onstrated that a need exists to increase the
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1 number or success of small high-technology

2 businesses in the State, as measured by

3 the number of first phase and second

4 phase SBIR awards that have historically

5 been received by small business concerns in

6 the State;

7 ‘‘(iii) whether the projected costs of

8 the proposed activities are reasonable;

9 ‘‘(iv) whether the proposal integrates

10 and coordinates the proposed activities

11 with other State and local programs assist12 ing small high-technology firms in the

13 State; and

14 ‘‘(v) the manner in which the appli15 cant will measure the results of the activi16 ties to be conducted.

17 ‘‘(3) PROPOSAL LIMIT.—Not more than 1 pro18 posal may be submitted for inclusion in the FAST

19 program under this section to provide services in any

20 one State in any 1 fiscal year.

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

22 assistance under this section shall be in such form

23 and subject to such procedures as the Administrator

24 shall establish.
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1 ‘‘(d) COOPERATION AND COORDINATION.—In car2 rying out the FAST program under this section, the Ad3 ministrator shall cooperate and coordinate with—

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

5 have an SBIR program; and

6 ‘‘(2) entities, organizations, and individuals ac7 tively engaged in enhancing or developing the tech8 nological capabilities of small business concerns,

9 including—

10 ‘‘(A) State and local development agencies

11 and entities;

12 ‘‘(B) State committees established under

13 the Experimental Program to Stimulate Com14 petitive Research of the National Science Foun15 dation (as established under section 113 of the

16 National Science Foundation Authorization Act

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

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

19 and

20 ‘‘(D) representatives of technology-based

21 small business concerns.

22 ‘‘(e) ADMINISTRATIVE REQUIREMENTS.—

23 ‘‘(1) COMPETITIVE BASIS.—Awards and cooper24 ative agreements under this section shall be made or

25 entered into, as applicable, on a competitive basis.
27

•S 3236 IS

1 ‘‘(2) MATCHING REQUIREMENTS.—

2 ‘‘(A) IN GENERAL.—The non-Federal

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

4 planning activity) carried out using an award or

5 under a cooperative agreement under this sec6 tion shall be—

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

8 in the case of a recipient that will serve

9 small business concerns located in one of

10 the 18 States receiving the fewest SBIR

11 first phase awards (as described in section

12 9(e)(4)(A));

13 ‘‘(ii) except as provided in subpara14 graph (B), 1 dollar for each Federal dollar,

15 in the case of a recipient that will serve

16 small business concerns located in one of

17 the 16 States receiving the greatest num18 ber of such SBIR first phase awards; and

19 ‘‘(iii) except as provided in subpara20 graph (B), 75 cents for each Federal dol21 lar, in the case of a recipient that will

22 serve small business concerns located in a

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

24 (ii) that is receiving such SBIR first phase

25 awards.
28

•S 3236 IS

1 ‘‘(B) LOW-INCOME AREAS.—The non-Fed2 eral share of the cost of the activity carried out

3 using an award or under a cooperative agree4 ment under this section shall be 50 cents for

5 each Federal dollar that will be directly allo6 cated by a recipient described in subparagraph

7 (A) to serve small business concerns located in

8 a qualified census tract, as that term is defined

9 in section 42(d)(5)(C)(ii) of the Internal Rev10 enue Code of 1986. Federal dollars not so allo11 cated by that recipient shall be subject to the

12 matching requirements of subparagraph (A).

13 ‘‘(C) TYPES OF FUNDING.—The non-Fed14 eral share of the cost of an activity carried out

15 by a recipient shall be comprised of not less

16 than 50 percent cash and not more than 50

17 percent of indirect costs and in-kind contribu18 tions, except that no such costs or contributions

19 may be derived from funds from any other Fed20 eral program.

21 ‘‘(D) RANKINGS.—For purposes of sub22 paragraph (A), the Administrator shall reevalu23 ate the ranking of a State once every 2 fiscal

24 years, beginning with fiscal year 2001, based on
29

•S 3236 IS

1 the most recent statistics compiled by the Ad2 ministrator.

3 ‘‘(3) DURATION.—Awards may be made or co4 operative agreements entered into under this section

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

6 ‘‘(f) REPORTS.—

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

8 days after the date of enactment of the Small Busi9 ness Innovation Research Program Reauthorization

10 Act of 2000, the Administrator shall prepare and

11 submit to the Committee on Small Business of the

12 Senate and the Committee on Science and the Com13 mittee on Small Business of the House of Rep14 resentatives a report, which shall include, with re15 spect to the FAST program, including Mentoring

16 Networks—

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

18 procedures of the program;

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

20 and

21 ‘‘(C) a description of the merit-based re22 view process to be used in the program.

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

24 shall submit an annual report to the Committee on

25 Small Business of the Senate and the Committee on
30

•S 3236 IS

1 Science and the Committee on Small Business of the

2 House of Representatives regarding—

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

4 provided and cooperative agreements entered

5 into under the FAST program during the pre6 ceding year;

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

8 including their location and the activities being

9 performed with the awards made or under the

10 cooperative agreements entered into; and

11 ‘‘(C) the Mentoring Networks and the

12 mentoring database, as provided for under sec13 tion 35, including—

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

15 mentoring information in the database re16 quired by section 9(k); and

17 ‘‘(ii) the status of the implementation

18 and description of the usage of the Men19 toring Networks.

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

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

22 the Administration shall conduct a review of—

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

24 the FAST program are measuring the perform-
31

•S 3236 IS

1 ance of the activities being conducted and the

2 results of such measurements; and

3 ‘‘(B) the overall management and effective4 ness of the FAST program.

5 ‘‘(2) REPORT.—During the first quarter of fis6 cal year 2004, the Inspector General of the Adminis7 tration shall submit a report to the Committee on

8 Small Business of the Senate and the Committee on

9 Science and the Committee on Small Business of the

10 House of Representatives on the review conducted

11 under paragraph (1).

12 ‘‘(h) PROGRAM LEVELS.—

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

14 appropriated to carry out the FAST program, in15 cluding Mentoring Networks, under this section and

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

17 2001 through 2005.

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

19 amount made available under paragraph (1) for fis20 cal years 2001 through 2005, a reasonable amount,

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

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

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

24 FAST program under this section shall terminate on Sep25 tember 30, 2005.’’.
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•S 3236 IS

1 (c) COORDINATION OF TECHNOLOGY DEVELOPMENT

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

3 U.S.C. 638) is amended by adding at the end the fol4 lowing:

5 ‘‘(u) COORDINATION OF TECHNOLOGY DEVELOP6 MENT PROGRAMS.—

7 ‘‘(1) DEFINITION OF TECHNOLOGY DEVELOP8 MENT PROGRAM.—In this subsection, the term ‘tech9 nology development program’ means—

10 ‘‘(A) the Experimental Program to Stimu11 late Competitive Research of the National

12 Science Foundation, as established under sec13 tion 113 of the National Science Foundation

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

15 ‘‘(B) the Defense Experimental Program

16 to Stimulate Competitive Research of the De17 partment of Defense;

18 ‘‘(C) the Experimental Program to Stimu19 late Competitive Research of the Department of

20 Energy;

21 ‘‘(D) the Experimental Program to Stimu22 late Competitive Research of the Environmental

23 Protection Agency;
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•S 3236 IS

1 ‘‘(E) the Experimental Program to Stimu2 late Competitive Research of the National Aero3 nautics and Space Administration;

4 ‘‘(F) the Institutional Development Award

5 Program of the National Institutes of Health;

6 and

7 ‘‘(G) the National Research Initiative

8 Competitive Grants Program of the Department

9 of Agriculture.

10 ‘‘(2) COORDINATION REQUIREMENTS.—Each

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

12 that has established a technology development pro13 gram may, in each fiscal year, review for funding

14 under that technology development program—

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

16 assistance to 1 or more small business concerns

17 interested in participating in the SBIR pro18 gram, including any proposal to make a grant

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

20 the cost of developing an SBIR proposal, from

21 an entity, organization, or individual located

22 in—

23 ‘‘(i) a State that is eligible to partici24 pate in that program; or
34

•S 3236 IS

1 ‘‘(ii) a State described in paragraph

2 (3); or

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

4 the SBIR program, if the proposal, though mer5 itorious, is not funded through the SBIR pro6 gram for that fiscal year due to funding re7 straints, from a small business concern located

8 in—

9 ‘‘(i) a State that is eligible to partici10 pate in a technology development program;

11 or

12 ‘‘(ii) a State described in paragraph

13 (3).

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

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

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

17 contracts awarded to small business concerns under

18 all SBIR programs is less than the total value of

19 contracts awarded to small business concerns in a

20 majority of other States, as determined by the Ad21 ministrator in biennial fiscal years, beginning with

22 fiscal year 2000, based on the most recent statistics

23 compiled by the Administrator.’’.
35

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1 SEC. 112. MENTORING NETWORKS.

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

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

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

5 ‘‘SEC. 35. MENTORING NETWORKS.

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

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

8 jobs, increase capacity for technological innovation,

9 and boost international competitiveness;

10 ‘‘(2) increasing the quantity of applications

11 from all States to the SBIR and STTR programs

12 would enhance competition for such awards and the

13 quality of the completed projects; and

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

15 FAST program of reaching out to new companies

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

18 that such companies will succeed in such programs

19 in developing and commercializing their research.

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

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

24 a Mentoring Network under this section.
36

•S 3236 IS

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

2 Mentoring Network established using assistance under

3 section 34 shall—

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

5 high technology small business concerns located in

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

8 potential candidates for the SBIR or STTR pro9 grams;

10 ‘‘(2) identify volunteer mentors who—

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

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

14 agreements; and

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

16 concerns through all stages of the SBIR or

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

19 ‘‘(i) proposal writing;

20 ‘‘(ii) marketing;

21 ‘‘(iii) Government accounting;

22 ‘‘(iv) Government audits;

23 ‘‘(v) project facilities and equipment;

24 ‘‘(vi) human resources;

25 ‘‘(vii) third phase partners;
37

•S 3236 IS

1 ‘‘(viii) commercialization;

2 ‘‘(ix) venture capital networking; and

3 ‘‘(x) other matters relevant to the

4 SBIR and STTR programs;

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

7 programs;

8 ‘‘(4) contribute information to the national

9 database referred to in subsection (d); and

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

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

12 under this section.

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

14 shall—

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

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

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

19 including a description of their areas of expertise;

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

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

23 aggressively promote Mentoring Networks under this

24 section; and
38

•S 3236 IS

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

2 either directly or by contract.’’.

3 SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.

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

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

6 at the end the following:

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

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

11 from SBIR applicants and awardees, including data for

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

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

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

17 businesses.’’.

18 SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.

19 (a) EXTENSION OF TERMINATION DATE.—Section

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

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

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

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

25 U.S.C. 638(s)(2)) is amended by striking ‘‘for fiscal year
39

•S 3236 IS

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

2 the fiscal years 2000 through 2005,’’.

3 TITLE II—BUSINESS LOAN

4 PROGRAMS

5 SEC. 201. SHORT TITLE.

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

7 Improvement Act of 2000’’.

8 SEC. 202. LEVELS OF PARTICIPATION.

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

10 U.S.C. 636(a)(2)(A)) is amended—

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

12 and inserting ‘‘$150,000’’; and

13 (2) in paragraph (ii)—

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

15 ‘‘85 percent’’; and

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

17 ‘‘$150,000’’.

18 SEC. 203. LOAN AMOUNTS.

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

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

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

22 would exceed $2,000,000),’’.
40

•S 3236 IS

1 SEC. 204. INTEREST ON DEFAULTED LOANS.

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

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

4 the following:

5 ‘‘(iii) APPLICABILITY.—Clauses (i)

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

7 or after October 1, 2000.’’.

8 SEC. 205. PREPAYMENT OF LOANS.

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

10 636(a)(4)) is further amended—

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

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

13 PREPAYMENT CHARGES.—’’; and

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

15 ‘‘(C) PREPAYMENT CHARGES.—

16 ‘‘(i) IN GENERAL.—A borrower who

17 prepays any loan guaranteed under this

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

20 accordance with clause (ii) if—

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

22 less than 15 years;

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

25 ‘‘(III) the amount of prepayment

26 in any calendar year is more than 25
41

•S 3236 IS

1 percent of the outstanding balance of

2 the loan; and

3 ‘‘(IV) the prepayment is made

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

6 ‘‘(ii) SUBSIDY RECOUPMENT FEE.—

7 The subsidy recoupment fee charged under

8 clause (i) shall be—

9 ‘‘(I) 5 percent of the amount of

10 prepayment, if the borrower prepays

11 during the first year after disburse12 ment;

13 ‘‘(II) 3 percent of the amount of

14 prepayment, if the borrower prepays

15 during the second year after disburse16 ment; and

17 ‘‘(III) 1 percent of the amount of

18 prepayment, if the borrower prepays

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

21 SEC. 206. GUARANTEE FEES.

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

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

24 ‘‘(18) GUARANTEE FEES.—
42

•S 3236 IS

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

2 loan guaranteed under this subsection (other

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

4 the Administration shall collect a guarantee fee,

5 which shall be payable by the participating

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

7 follows:

8 ‘‘(i) A guarantee fee equal to 2 per9 cent of the deferred participation share of

10 a total loan amount that is not more than

11 $150,000.

12 ‘‘(ii) A guarantee fee equal to 3 per13 cent of the deferred participation share of

14 a total loan amount that is more than

15 $150,000, but not more than $700,000.

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

17 percent of the deferred participation share

18 of a total loan amount that is more than

19 $700,000.

20 ‘‘(B) RETENTION OF CERTAIN FEES.—

21 Lenders participating in the programs estab22 lished under this subsection may retain not

23 more than 25 percent of a fee collected under

24 subparagraph (A)(i).’’.
43

•S 3236 IS

1 SEC. 207. LEASE TERMS.

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

3 636(a)) is further amended by adding at the end the fol4 lowing:

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

6 lease arrangements as may be authorized by the Ad7 ministration, a borrower may permanently lease to

8 one or more tenants not more than 20 percent of

9 any property constructed with the proceeds of a loan

10 guaranteed under this subsection, if the borrower

11 permanently occupies and uses not less than 60 per12 cent of the total business space in the property.’’.

13 SEC. 208. APPRAISALS FOR LOANS SECURED BY REAL

14 PROPERTY.

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

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

17 adding at the end the following:

18 ‘‘(29) REAL ESTATE APPRAISALS.—With re19 spect to a loan under this subsection that is secured

20 by commercial real property, an appraisal of such

21 property by a State licensed or certified appraiser—

22 ‘‘(A) shall be required by the Administra23 tion in connection with any such loan for more

24 than $250,000; or

25 ‘‘(B) may be required by the Administra26 tion or the lender in connection with any such
44

•S 3236 IS

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

2 necessary for appropriate evaluation of credit3 worthiness.’’.

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

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

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

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

8 the following:

9 ‘‘(i) IN GENERAL.—The collateral’’;

10 and

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

12 ‘‘(ii) APPRAISALS.—With respect to

13 commercial real property provided by the

14 small business concern as collateral, an ap15 praisal of the property by a State licensed

16 or certified appraiser—

17 ‘‘(I) shall be required by the Ad18 ministration before disbursement of

19 the loan if the estimated value of that

20 property is more than $250,000; or

21 ‘‘(II) may be required by the Ad22 ministration or the lender before dis23 bursement of the loan if the estimated

24 value of that property is $250,000 or

25 less, and such appraisal is necessary
45

•S 3236 IS

1 for appropriate evaluation of credit2 worthiness.’’.

3 SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EX4 PORT PURPOSES.

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

6 U.S.C. 634(f)(1)(C)) is amended to read as follows:

7 ‘‘(C) each loan, except each loan made under

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

9 the borrower prior to any sale.’’.

10 SEC. 210. MICROLOAN PROGRAM.

11 (a) IN GENERAL.—Section 7(m) of the Small Busi12 ness Act (15 U.S.C. 636(m)) is amended—

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

14 striking ‘‘$25,000’’ each place it appears and insert15 ing ‘‘$35,000’’;

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

17 (4)(C)(i)(II), by striking ‘‘$7,500’’ each place it ap18 pears and inserting ‘‘$10,000’’;

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

20 and inserting ‘‘$20,000’’;

21 (4) in paragraph (5)(A)—

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

23 ‘‘55 grants’’; and

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

25 ‘‘$200,000’’;
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•S 3236 IS

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

2 and inserting ‘‘$15,000’’; and

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

4 (A) and inserting the following:

5 ‘‘(A) NUMBER OF PARTICIPANTS.—Under

6 the program authorized by this subsection, the

7 Administration may fund, on a competitive

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

9 (b) CONFORMING AMENDMENTS.—Section

10 7(m)(11)(B) of the Small Business Act (15 U.S.C.

11 636(m)(11)(B)) is amended by striking ‘‘$25,000’’ and in12 serting ‘‘$35,000’’.

13 TITLE III—CERTIFIED DEVELOP14 MENT COMPANY PROGRAM

15 SEC. 301. SHORT TITLE.

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

17 Company Program Improvements Act of 2000’’.

18 SEC. 302. WOMEN-OWNED BUSINESSES.

19 Section 501(d)(3)(C) of the Small Business Invest20 ment Act of 1958 (15 U.S.C. 695(d)(3)(C)) is amended

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

22 development’’.

23 SEC. 303. MAXIMUM DEBENTURE SIZE.

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

25 of 1958 (15 U.S.C. 696(2)) is amended to read as follows:
47

•S 3236 IS

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

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

3 such identifiable small business concern, except

4 loans meeting the criteria specified in section

5 501(d)(3), which shall be limited to $1,300,000 for

6 each such identifiable small business concern.’’.

7 SEC. 304. FEES.

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

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

10 ‘‘(f) EFFECTIVE DATE.—The fees authorized by sub11 sections (b) and (d) shall apply to financings approved by

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

13 not apply to financings approved by the Administration

14 on or after October 1, 2003.’’.

15 SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.

16 Section 217(b) of the Small Business Administration

17 Reauthorization and Amendments Act of 1994 (Public

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

19 508 of the Small Business Investment Act of 1958) is re20 pealed.

21 SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.

22 Section 508 of the Small Business Investment Act

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

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

25 program basis, the’’ and inserting ‘‘The’’;
48

•S 3236 IS

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

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

3 (3) in subsection (f) (as redesignated by para4 graph (2)), by striking ‘‘subsection (f)’’ and insert5 ing ‘‘subsection (g)’’;

6 (4) in subsection (h) (as redesignated by para7 graph (2)), by striking ‘‘subsection (f)’’ and insert8 ing ‘‘subsection (g)’’; and

9 (5) by inserting after subsection (c) the fol10 lowing:

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

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

13 the Administration acquires a loan guaranteed under

14 this section and identifies such loan for inclusion in

15 a bulk asset sale of defaulted or repurchased loans

16 or other financings, it shall give prior notice thereof

17 to any certified development company which has a

18 contingent liability under this section. The notice

19 shall be given to the company as soon as possible

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

21 days before the date the Administration first makes

22 any records on such financing available for examina23 tion by prospective purchasers prior to its offering in

24 a package of loans for bulk sale.
49

•S 3236 IS

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

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

3 part of a bulk sale unless it—

4 ‘‘(A) provides prospective purchasers with

5 the opportunity to examine the Administration’s

6 records with respect to such loan; and

7 ‘‘(B) provides the notice required by para8 graph (1).’’.

9 SEC. 307. LOAN LIQUIDATION.

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

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

12 695 et seq.) is amended by adding at the end the fol13 lowing:

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

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

16 with this section, the Administration shall delegate to any

17 qualified State or local development company (as defined

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

19 of subsection (b)(1) the authority to foreclose and liq20 uidate, or to otherwise treat in accordance with this sec21 tion, defaulted loans in its portfolio that are funded with

22 the proceeds of debentures guaranteed by the Administra23 tion under section 503.

24 ‘‘(b) ELIGIBILITY FOR DELEGATION.—
50

•S 3236 IS

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

2 local development company shall be eligible for a del3 egation of authority under subsection (a) if—

4 ‘‘(A) the company—

5 ‘‘(i) has participated in the loan liq6 uidation pilot program established by the

7 Small Business Programs Improvement

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

9 effect on the day before promulgation of

10 final regulations by the Administration im11 plementing this section;

12 ‘‘(ii) is participating in the Premier

13 Certified Lenders Program under section

14 508; or

15 ‘‘(iii) during the 3 fiscal years imme16 diately prior to seeking such a delegation,

17 has made an average of not less than 10

18 loans per year that are funded with the

19 proceeds of debentures guaranteed under

20 section 503; and

21 ‘‘(B) the company—

22 ‘‘(i) has one or more employees—

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

24 substantive, decision-making experi25 ence in administering the liquidation
51

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1 and workout of problem loans secured

2 in a manner substantially similar to

3 loans funded with the proceeds of de4 bentures guaranteed under section

5 503; and

6 ‘‘(II) who have completed a train7 ing program on loan liquidation devel8 oped by the Administration in con9 junction with qualified State and local

10 development companies that meet the

11 requirements of this paragraph; or

12 ‘‘(ii) submits to the Administration

13 documentation demonstrating that the

14 company has contracted with a qualified

15 third-party to perform any liquidation ac16 tivities and secures the approval of the

17 contract by the Administration with re18 spect to the qualifications of the contractor

19 and the terms and conditions of liquidation

20 activities.

21 ‘‘(2) CONFIRMATION.—On request the Adminis22 tration shall examine the qualifications of any com23 pany described in subsection (a) to determine if such

24 company is eligible for the delegation of authority

25 under this section. If the Administration determines
52

•S 3236 IS

1 that a company is not eligible, the Administration

2 shall provide the company with the reasons for such

3 ineligibility.

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

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

6 local development company to which the Administra7 tion delegates authority under section (a) may with

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

9 ‘‘(A) perform all liquidation and fore10 closure functions, including the purchase in ac11 cordance with this subsection of any other in12 debtedness secured by the property securing the

13 loan, in a reasonable and sound manner accord14 ing to commercially accepted practices, pursu15 ant to a liquidation plan approved in advance

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

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

18 performance of the functions described in sub19 paragraph (A), except that the Administration

20 may—

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

22 ‘‘(I) the outcome of the litigation

23 may adversely affect the Administra24 tion’s management of the loan pro-
53

•S 3236 IS

1 gram established under section 502;

2 or

3 ‘‘(II) the Administration is enti4 tled to legal remedies not available to

5 a qualified State or local development

6 company and such remedies will ben7 efit either the Administration or the

8 qualified State or local development

9 company; or

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

11 litigation; and

12 ‘‘(C) take other appropriate actions to

13 mitigate loan losses in lieu of total liquidation

14 or foreclosures, including the restructuring of a

15 loan in accordance with prudent loan servicing

16 practices and pursuant to a workout plan ap17 proved in advance by the Administration under

18 paragraph (2)(C).

19 ‘‘(2) ADMINISTRATION APPROVAL.—

20 ‘‘(A) LIQUIDATION PLAN.—

21 ‘‘(i) IN GENERAL.—Before carrying

22 out functions described in paragraph

23 (1)(A), a qualified State or local develop24 ment company shall submit to the Admin25 istration a proposed liquidation plan.
54

•S 3236 IS

1 ‘‘(ii) ADMINISTRATION ACTION ON

2 PLAN.—

3 ‘‘(I) TIMING.—Not later than 15

4 business days after a liquidation plan

5 is received by the Administration

6 under clause (i), the Administration

7 shall approve or reject the plan.

8 ‘‘(II) NOTICE OF NO DECISION.—

9 With respect to any plan that cannot

10 be approved or denied within the 15-

11 day period required by subclause (I),

12 the Administration shall within such

13 period provide in accordance with sub14 paragraph (E) notice to the company

15 that submitted the plan.

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

17 out functions described in paragraph

18 (1)(A), a qualified State or local develop19 ment company may undertake routine ac20 tions not addressed in a liquidation plan

21 without obtaining additional approval from

22 the Administration.

23 ‘‘(B) PURCHASE OF INDEBTEDNESS.—

24 ‘‘(i) IN GENERAL.—In carrying out

25 functions described in paragraph (1)(A), a
55

•S 3236 IS

1 qualified State or local development com2 pany shall submit to the Administration a

3 request for written approval before com4 mitting the Administration to the purchase

5 of any other indebtedness secured by the

6 property securing a defaulted loan.

7 ‘‘(ii) ADMINISTRATION ACTION ON RE8 QUEST.—

9 ‘‘(I) TIMING.—Not later than 15

10 business days after receiving a request

11 under clause (i), the Administration

12 shall approve or deny the request.

13 ‘‘(II) NOTICE OF NO DECISION.—

14 With respect to any request that can15 not be approved or denied within the

16 15-day period required by subclause

17 (I), the Administration shall within

18 such period provide in accordance

19 with subparagraph (E) notice to the

20 company that submitted the request.

21 ‘‘(C) WORKOUT PLAN.—

22 ‘‘(i) IN GENERAL.—In carrying out

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

24 qualified State or local development com-
56

•S 3236 IS

1 pany shall submit to the Administration a

2 proposed workout plan.

3 ‘‘(ii) ADMINISTRATION ACTION ON

4 PLAN.—

5 ‘‘(I) TIMING.—Not later than 15

6 business days after a workout plan is

7 received by the Administration under

8 clause (i), the Administration shall

9 approve or reject the plan.

10 ‘‘(II) NOTICE OF NO DECISION.—

11 With respect to any workout plan that

12 cannot be approved or denied within

13 the 15-day period required by sub14 clause (I), the Administration shall

15 within such period provide in accord16 ance with subparagraph (E) notice to

17 the company that submitted the plan.

18 ‘‘(D) COMPROMISE OF INDEBTEDNESS.—

19 In carrying out functions described in para20 graph (1)(A), a qualified State or local develop21 ment company may—

22 ‘‘(i) consider an offer made by an obli23 gor to compromise the debt for less than

24 the full amount owing; and
57

•S 3236 IS

1 ‘‘(ii) pursuant to such an offer, re2 lease any obligor or other party contin3 gently liable, if the company secures the

4 written approval of the Administration.

5 ‘‘(E) CONTENTS OF NOTICE OF NO DECI6 SION.—Any notice provided by the Administra7 tion under subparagraph (A)(ii)(II), (B)(ii)(II),

8 or (C)(ii)(II)—

9 ‘‘(i) shall be in writing;

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

11 the Administration’s inability to act on a

12 plan or request;

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

14 additional time required by the Adminis15 tration to act on the plan or request; and

16 ‘‘(iv) if the Administration cannot act

17 because insufficient information or docu18 mentation was provided by the company

19 submitting the plan or request, shall speci20 fy the nature of such additional informa21 tion or documentation.

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

23 functions described in paragraph (1), a qualified

24 State or local development company shall take no ac25 tion that would result in an actual or apparent con-
58

•S 3236 IS

1 flict of interest between the company (or any em2 ployee of the company) and any third party lender,

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

4 participating in a liquidation, foreclosure, or loss

5 mitigation action.

6 ‘‘(d) SUSPENSION OR REVOCATION OF AUTHOR7 ITY.—The Administration may revoke or suspend a dele8 gation of authority under this section to any qualified

9 State or local development company, if the Administration

10 determines that the company—

11 ‘‘(1) does not meet the requirements of sub12 section (b)(1);

13 ‘‘(2) has violated any applicable rule or regula14 tion of the Administration or any other applicable

15 law; or

16 ‘‘(3) fails to comply with any reporting require17 ment that may be established by the Administration

18 relating to carrying out of functions described in

19 paragraph (1).

20 ‘‘(e) REPORT.—

21 ‘‘(1) IN GENERAL.—Based on information pro22 vided by qualified State and local development com23 panies and the Administration, the Administration

24 shall annually submit to the Committees on Small

25 Business of the House of Representatives and of the
59

•S 3236 IS

1 Senate a report on the results of delegation of au2 thority under this section.

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

4 paragraph (1) shall include the following informa5 tion:

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

7 or liquidated by a qualified State or local devel8 opment company under this section, or for

9 which losses were otherwise mitigated by the

10 company pursuant to a workout plan under this

11 section—

12 ‘‘(i) the total cost of the project fi13 nanced with the loan;

14 ‘‘(ii) the total original dollar amount

15 guaranteed by the Administration;

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

17 loan at the time of liquidation, foreclosure,

18 or mitigation of loss;

19 ‘‘(iv) the total dollar losses resulting

20 from the liquidation, foreclosure, or mitiga21 tion of loss; and

22 ‘‘(v) the total recoveries resulting

23 from the liquidation, foreclosure, or mitiga24 tion of loss, both as a percentage of the
60

•S 3236 IS

1 amount guaranteed and the total cost of

2 the project financed.

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

4 or local development company to which author5 ity is delegated under this section, the totals of

6 each of the amounts described in clauses (i)

7 through (v) of subparagraph (A).

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

9 foreclosure, liquidation, or mitigation under this

10 section, the totals of each of the amounts de11 scribed in clauses (i) through (v) of subpara12 graph (A).

13 ‘‘(D) A comparison between—

14 ‘‘(i) the information provided under

15 subparagraph (C) with respect to the 12-

16 month period preceding the date on which

17 the report is submitted; and

18 ‘‘(ii) the same information with re19 spect to loans foreclosed and liquidated, or

20 otherwise treated, by the Administration

21 during the same period.

22 ‘‘(E) The number of times that the Admin23 istration has failed to approve or reject a liq24 uidation plan in accordance with subparagraph

25 (A)(i), a workout plan in accordance with sub-
61

•S 3236 IS

1 paragraph (C)(i), or to approve or deny a re2 quest for purchase of indebtedness under sub3 paragraph (B)(i), including specific information

4 regarding the reasons for the Administration’s

5 failure and any delays that resulted.’’.

6 (b) REGULATIONS.—

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

8 after the date of enactment of this Act, the Adminis9 trator shall issue such regulations as may be nec10 essary to carry out section 510 of the Small Busi11 ness Investment Act of 1958, as added by subsection

12 (a) of this section.

13 (2) TERMINATION OF PILOT PROGRAM.—Begin14 ning on the date on which final regulations are

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

16 Small Business Programs Improvement Act of 1996

17 (15 U.S.C. 695 note) shall cease to have effect.

18 TITLE IV—CORRECTIONS TO

19 THE SMALL BUSINESS IN20 VESTMENT ACT OF 1958

21 SEC. 401. SHORT TITLE.

22 This title may be cited as the ‘‘Small Business Invest23 ment Corrections Act of 2000’’.
62

•S 3236 IS

1 SEC. 402. DEFINITIONS.

2 (a) SMALL BUSINESS CONCERN.—Section

3 103(5)(A)(i) of the Small Business Investment Act of

4 1958 (15 U.S.C. 662(5)(A)(i)) is amended by inserting

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

6 of the allocation of control during the investment period

7 under any investment agreement between the business

8 concern and the entity making the investment’’.

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

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

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

12 end;

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

14 the end and inserting ‘‘; and’’; and

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

16 ‘‘(17) the term ‘long term’, when used in con17 nection with equity capital or loan funds invested in

18 any small business concern or smaller enterprise,

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

20 SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT

21 COMPANIES.

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

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

24 (1) by striking ‘‘(b) Notwithstanding’’ and in25 serting the following:

26 ‘‘(b) FINANCIAL INSTITUTION INVESTMENTS.—
63

•S 3236 IS

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

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

3 ‘‘(2) CERTAIN SAVINGS ASSOCIATIONS.—Not4 withstanding any other provision of law, any Federal

5 savings association may invest in any 1 or more

6 small business investment companies, or in any enti7 ty established to invest solely in small business in8 vestment companies, except that in no event may the

9 total amount of such investments by any such Fed10 eral savings association exceed 5 percent of the cap11 ital and surplus of the Federal savings association.’’.

12 SEC. 404. SUBSIDY FEES.

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

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

15 amended by striking ‘‘plus an additional charge of 1 per16 cent per annum which shall be paid to and retained by

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

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

19 in an amount established annually by the Administration,

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

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

22 Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Ad23 ministration of purchasing and guaranteeing debentures

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

25 the Administration’’.
64

•S 3236 IS

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

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

3 683(g)(2)) is amended by striking ‘‘plus an additional

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

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

6 participating securities obligated after September 30,

7 2000, an additional charge, in an amount established an8 nually by the Administration, of not more than 1 percent

9 per year as necessary to reduce to zero the cost (as defined

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

11 (2 U.S.C. 661a)) to the Administration of purchasing and

12 guaranteeing participating securities under this Act, which

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

14 SEC. 405. DISTRIBUTIONS.

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

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

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

18 inserting ‘‘subchapter S corporation’’;

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

20 based on a quarterly’’ and inserting ‘‘any time dur21 ing any calendar quarter based on an’’; and

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

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

24 for a calendar year,’’.
65

•S 3236 IS

1 SEC. 406. CONFORMING AMENDMENT.

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

3 Act of 1958 (15 U.S.C. 687b(c)(4)) is amended by strik4 ing ‘‘five years’’ and inserting ‘‘1 year’’.

5 TITLE V—REAUTHORIZATION OF

6 SMALL BUSINESS PROGRAMS

7 SEC. 501. SHORT TITLE.

8 This title may be cited as the ‘‘Small Business Pro9 grams Reauthorization Act of 2000’’.

10 SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PRO11 GRAMS.

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

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

14 ‘‘(g) FISCAL YEAR 2001.—

15 ‘‘(1) PROGRAM LEVELS.—The following pro16 gram levels are authorized for fiscal year 2001:

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

18 Act, the Administration is authorized to

19 make—

20 ‘‘(i) $45,000,000 in technical assist21 ance grants as provided in section 7(m);

22 and

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

24 provided in 7(m).

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

26 Act, the Administration is authorized to make
66

•S 3236 IS

1 $19,050,000,000 in deferred participation loans

2 and other financings. Of such sum, the Admin3 istration is authorized to make—

4 ‘‘(i) $14,500,000,000 in general busi5 ness loans as provided in section 7(a);

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

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

8 and section 504 of the Small Business In9 vestment Act of 1958;

10 ‘‘(iii) $500,000,000 in loans as pro11 vided in section 7(a)(21); and

12 ‘‘(iv) $50,000,000 in loans as pro13 vided in section 7(m).

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

15 III of the Small Business Investment Act of

16 1958, the Administration is authorized to

17 make—

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

19 participating securities; and

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

21 debentures.

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

23 B of title IV of the Small Business Investment

24 Act of 1958, the Administration is authorized

25 to enter into guarantees not to exceed
67

•S 3236 IS

1 $4,000,000,000 of which not more than 50 per2 cent may be in bonds approved pursuant to sec3 tion 411(a)(3) of that Act.

4 ‘‘(E) The Administration is authorized to

5 make grants or enter cooperative agreements

6 for a total amount of $5,000,000 for the Serv7 ice Corps of Retired Executives program au8 thorized by section 8(b)(1).

9 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

10 ‘‘(A) There are authorized to be appro11 priated to the Administration for fiscal year

12 2001 such sums as may be necessary to carry

13 out the provisions of this Act not elsewhere pro14 vided for, including administrative expenses and

15 necessary loan capital for disaster loans pursu16 ant to section 7(b), and to carry out title IV of

17 the Small Business Investment Act of 1958, in18 cluding salaries and expenses of the Adminis19 tration.

20 ‘‘(B) Notwithstanding any other provision

21 of this paragraph, for fiscal year 2001—

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

23 used as loan capital for the loan program

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

25 transfer from another Federal department
68

•S 3236 IS

1 or agency to the Administration, unless the

2 program level authorized for general busi3 ness loans under paragraph (1)(B)(i) is

4 fully funded; and

5 ‘‘(ii) the Administration may not ap6 prove loans on its own behalf or on behalf

7 of any other Federal department or agen8 cy, by contract or otherwise, under terms

9 and conditions other than those specifically

10 authorized under this Act or the Small

11 Business Investment Act of 1958, except

12 that it may approve loans under section

13 7(a)(21) of this Act in gross amounts of

14 not more than $1,250,000.

15 ‘‘(h) FISCAL YEAR 2002.—

16 ‘‘(1) PROGRAM LEVELS.—The following pro17 gram levels are authorized for fiscal year 2002:

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

19 Act, the Administration is authorized to

20 make—

21 ‘‘(i) $60,000,000 in technical assist22 ance grants as provided in section 7(m);

23 and

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

25 provided in 7(m).
69

•S 3236 IS

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

2 Act, the Administration is authorized to make

3 $20,050,000,000 in deferred participation loans

4 and other financings. Of such sum, the Admin5 istration is authorized to make—

6 ‘‘(i) $15,000,000,000 in general busi7 ness loans as provided in section 7(a);

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

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

10 and section 504 of the Small Business In11 vestment Act of 1958;

12 ‘‘(iii) $500,000,000 in loans as pro13 vided in section 7(a)(21); and

14 ‘‘(iv) $50,000,000 in loans as pro15 vided in section 7(m).

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

17 III of the Small Business Investment Act of

18 1958, the Administration is authorized to

19 make—

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

21 participating securities; and

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

23 debentures.

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

25 B of title IV of the Small Business Investment
70

•S 3236 IS

1 Act of 1958, the Administration is authorized

2 to enter into guarantees not to exceed

3 $5,000,000,000 of which not more than 50 per4 cent may be in bonds approved pursuant to sec5 tion 411(a)(3) of that Act.

6 ‘‘(E) The Administration is authorized to

7 make grants or enter cooperative agreements

8 for a total amount of $6,000,000 for the Serv9 ice Corps of Retired Executives program au10 thorized by section 8(b)(1).

11 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

12 ‘‘(A) There are authorized to be appro13 priated to the Administration for fiscal year

14 2002 such sums as may be necessary to carry

15 out the provisions of this Act not elsewhere pro16 vided for, including administrative expenses and

17 necessary loan capital for disaster loans pursu18 ant to section 7(b), and to carry out title IV of

19 the Small Business Investment Act of 1958, in20 cluding salaries and expenses of the Adminis21 tration.

22 ‘‘(B) Notwithstanding any other provision

23 of this paragraph, for fiscal year 2002—

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

25 used as loan capital for the loan program
71

•S 3236 IS

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

2 transfer from another Federal department

3 or agency to the Administration, unless the

4 program level authorized for general busi5 ness loans under paragraph (1)(B)(i) is

6 fully funded; and

7 ‘‘(ii) the Administration may not ap8 prove loans on its own behalf or on behalf

9 of any other Federal department or agen10 cy, by contract or otherwise, under terms

11 and conditions other than those specifically

12 authorized under this Act or the Small

13 Business Investment Act of 1958, except

14 that it may approve loans under section

15 7(a)(21) of this Act in gross amounts of

16 not more than $1,250,000.

17 ‘‘(i) FISCAL YEAR 2003.—

18 ‘‘(1) PROGRAM LEVELS.—The following pro19 gram levels are authorized for fiscal year 2003:

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

21 Act, the Administration is authorized to

22 make—

23 ‘‘(i) $70,000,000 in technical assist24 ance grants as provided in section 7(m);

25 and
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•S 3236 IS

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

2 provided in 7(m).

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

4 Act, the Administration is authorized to make

5 $21,550,000,000 in deferred participation loans

6 and other financings. Of such sum, the Admin7 istration is authorized to make—

8 ‘‘(i) $16,000,000,000 in general busi9 ness loans as provided in section 7(a);

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

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

12 and section 504 of the Small Business In13 vestment Act of 1958;

14 ‘‘(iii) $500,000,000 in loans as pro15 vided in section 7(a)(21); and

16 ‘‘(iv) $50,000,000 in loans as pro17 vided in section 7(m).

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

19 III of the Small Business Investment Act of

20 1958, the Administration is authorized to

21 make—

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

23 participating securities; and

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

25 debentures.
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•S 3236 IS

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

2 B of title IV of the Small Business Investment

3 Act of 1958, the Administration is authorized

4 to enter into guarantees not to exceed

5 $6,000,000,000 of which not more than 50 per6 cent may be in bonds approved pursuant to sec7 tion 411(a)(3) of that Act.

8 ‘‘(E) The Administration is authorized to

9 make grants or enter into cooperative agree10 ments for a total amount of $7,000,000 for the

11 Service Corps of Retired Executives program

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

13 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

14 ‘‘(A) There are authorized to be appro15 priated to the Administration for fiscal year

16 2003 such sums as may be necessary to carry

17 out the provisions of this Act not elsewhere pro18 vided for, including administrative expenses and

19 necessary loan capital for disaster loans pursu20 ant to section 7(b), and to carry out title IV of

21 the Small Business Investment Act of 1958, in22 cluding salaries and expenses of the Adminis23 tration.

24 ‘‘(B) Notwithstanding any other provision

25 of this paragraph, for fiscal year 2003—
74

•S 3236 IS

1 ‘‘(i) no funds are authorized to be

2 used as loan capital for the loan program

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

4 transfer from another Federal department

5 or agency to the Administration, unless the

6 program level authorized for general busi7 ness loans under paragraph (1)(B)(i) is

8 fully funded; and

9 ‘‘(ii) the Administration may not ap10 prove loans on its own behalf or on behalf

11 of any other Federal department or agen12 cy, by contract or otherwise, under terms

13 and conditions other than those specifically

14 authorized under this Act or the Small

15 Business Investment Act of 1958, except

16 that it may approve loans under section

17 7(a)(21) of this Act in gross amounts of

18 not more than $1,250,000.’’.

19 SEC. 503. ADDITIONAL REAUTHORIZATIONS.

20 (a) DRUG-FREE WORKPLACE PROGRAM.—Section 27

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

22 (1) in the section heading, by striking ‘‘DRUG23 FREE WORKPLACE DEMONSTRATION PRO24 GRAM’’ and inserting ‘‘PAUL D. COVERDELL

25 DRUG-FREE WORKPLACE PROGRAM’’; and
75

•S 3236 IS

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

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

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

4 through 2003’’.

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

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

7 the end the following:

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

9 is authorized to be appropriated to carry out the program

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

11 years 2001 through 2003.’’.

12 (c) VERY SMALL BUSINESS CONCERNS PROGRAM.—

13 Section 304(i) of the Small Business Administration Re14 authorization and Amendments Act of 1994 (Public Law

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

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

17 2003’’.

18 (d) SOCIALLY AND ECONOMICALLY DISADVANTAGED

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

20 Acquisition Streamlining Act of 1994 (Public Law 103–

21 355; 15 U.S.C. 644 note) is amended by striking ‘‘Sep22 tember 30, 2000’’ and inserting ‘‘September 30, 2003’’.

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

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

25 by striking ‘‘2000’’ and inserting ‘‘2003’’.
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•S 3236 IS

1 SEC. 504. COSPONSORSHIP.

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

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

4 as follows:

5 ‘‘(1)(A) to provide—

6 ‘‘(i) technical, managerial, and informa7 tional aids to small business concerns—

8 ‘‘(I) by advising and counseling on

9 matters in connection with Government

10 procurement and policies, principles, and

11 practices of good management;

12 ‘‘(II) by cooperating and advising

13 with—

14 ‘‘(aa) voluntary business, profes15 sional, educational, and other non16 profit organizations, associations, and

17 institutions (except that the Adminis18 tration shall take such actions as it

19 determines necessary to ensure that

20 such cooperation does not constitute

21 or imply an endorsement by the Ad22 ministration of the organization or its

23 products or services, and shall ensure

24 that it receives appropriate recogni25 tion in all printed materials); and
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•S 3236 IS

1 ‘‘(bb) other Federal and State

2 agencies;

3 ‘‘(III) by maintaining a clearinghouse

4 for information on managing, financing,

5 and operating small business enterprises;

6 and

7 ‘‘(IV) by disseminating such informa8 tion, including through recognition events,

9 and by other activities that the Adminis10 tration determines to be appropriate; and

11 ‘‘(ii) through cooperation with a profit12 making concern (referred to in this paragraph

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

14 education to small business concerns, except

15 that the Administration shall—

16 ‘‘(I) take such actions as it deter17 mines to be appropriate to ensure that—

18 ‘‘(aa) the Administration receives

19 appropriate recognition and publicity;

20 ‘‘(bb) the cooperation does not

21 constitute or imply an endorsement by

22 the Administration of any product or

23 service of the cosponsor;
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1 ‘‘(cc) unnecessary promotion of

2 the products or services of the cospon3 sor is avoided; and

4 ‘‘(dd) utilization of any 1 cospon5 sor in a marketing area is minimized;

6 and

7 ‘‘(II) develop an agreement, executed

8 on behalf of the Administration by an em9 ployee of the Administration in Wash10 ington, the District of Columbia, that pro11 vides, at a minimum, that—

12 ‘‘(aa) any printed material to an13 nounce the cosponsorship or to be dis14 tributed at the cosponsored activity,

15 shall be approved in advance by the

16 Administration;

17 ‘‘(bb) the terms and conditions of

18 the cooperation shall be specified;

19 ‘‘(cc) only minimal charges may

20 be imposed on any small business con21 cern to cover the direct costs of pro22 viding the assistance;

23 ‘‘(dd) the Administration may

24 provide to the cosponsorship mailing

25 labels, but not lists of names and ad-
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1 dresses of small business concerns

2 compiled by the Administration;

3 ‘‘(ee) all printed materials con4 taining the names of both the Admin5 istration and the cosponsor shall in6 clude a prominent disclaimer that the

7 cooperation does not constitute or

8 imply an endorsement by the Adminis9 tration of any product or service of

10 the cosponsor; and

11 ‘‘(ff) the Administration shall en12 sure that it receives appropriate rec13 ognition in all cosponsorship printed

14 materials.’’.

15 (b) EXTENSION OF COSPONSORSHIP AUTHORITY.—

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

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

18 637 note) is amended by striking ‘‘September 30, 2000’’

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

20 TITLE VI—HUBZONE PROGRAM

21 Subtitle A—HUBZones in Native

22 America

23 SEC. 601. SHORT TITLE.

24 This subtitle may be cited as the ‘‘HUBZones in Na25 tive America Act of 2000’’.
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1 SEC. 602. HUBZONE SMALL BUSINESS CONCERN.

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

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

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

5 The term ‘HUBZone small business concern’

6 means—

7 ‘‘(A) a small business concern that is

8 owned and controlled by 1 or more persons,

9 each of whom is a United States citizen;

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

11 ‘‘(i) an Alaska Native Corporation

12 owned and controlled by Natives (as deter13 mined pursuant to section 29(e)(1) of the

14 Alaska Native Claims Settlement Act (43

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

16 ‘‘(ii) a direct or indirect subsidiary

17 corporation, joint venture, or partnership

18 of an Alaska Native Corporation qualifying

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

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

21 1626(e)(1)), if that subsidiary, joint ven22 ture, or partnership is owned and con23 trolled by Natives (as determined pursuant

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

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

26 1626(e)(2))); or
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1 ‘‘(C) a small business concern—

2 ‘‘(i) that is wholly owned by 1 or more

3 Indian tribal governments, or by a corpora4 tion that is wholly owned by 1 or more In5 dian tribal governments; or

6 ‘‘(ii) that is owned in part by 1 or

7 more Indian tribal governments, or by a

8 corporation that is wholly owned by 1 or

9 more Indian tribal governments, if all

10 other owners are either United States citi11 zens or small business concerns.’’.

12 SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CON13 CERN.

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

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

16 striking subclauses (I) and (II) and inserting the fol17 lowing:

18 ‘‘(I) it is a HUBZone small busi19 ness concern—

20 ‘‘(aa) pursuant to subpara21 graph (A) or (B) of paragraph

22 (3), and that its principal office

23 is located in a HUBZone and not

24 fewer than 35 percent of its em25 ployees reside in a HUBZone; or
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1 ‘‘(bb) pursuant to paragraph

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

3 percent of its employees engaged

4 in performing a contract awarded

5 to the small business concern on

6 the basis of a preference provided

7 under section 31(b) reside within

8 any Indian reservation governed

9 by 1 or more of the tribal govern10 ment owners, or reside within

11 any HUBZone adjoining any

12 such Indian reservation;

13 ‘‘(II) the small business concern

14 will attempt to maintain the applica15 ble employment percentage under sub16 clause (I) during the performance of

17 any contract awarded to the small

18 business concern on the basis of a

19 preference provided under section

20 31(b); and’’.

21 (b) CLARIFYING AMENDMENT.—Section

22 3(p)(5)(D)(i) of the Small Business Act (15 U.S.C.

23 632(p)(5)(D)(i)) is amended by inserting ‘‘once the Ad24 ministrator has made the certification required by sub25 paragraph (A)(i) regarding a qualified HUBZone small
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1 business concern and has determined that subparagraph

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

3 SEC. 604. OTHER DEFINITIONS.

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

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

6 ‘‘(6) NATIVE AMERICAN SMALL BUSINESS CON7 CERNS.—

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

9 term ‘Alaska Native Corporation’ has the same

10 meaning as the term ‘Native Corporation’ in

11 section 3 of the Alaska Native Claims Settle12 ment Act (43 U.S.C. 1602).

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

14 ‘Alaska Native Village’ has the same meaning

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

16 Alaska Native Claims Settlement Act (43

17 U.S.C. 1602).

18 ‘‘(C) INDIAN RESERVATION.—The term

19 ‘Indian reservation’—

20 ‘‘(i) has the same meaning as the

21 term ‘Indian country’ in section 1151 of

22 title 18, United States Code, except that

23 such term does not include—

24 ‘‘(I) any lands that are located

25 within a State in which a tribe did not
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1 exercise governmental jurisdiction on

2 the date of enactment of this para3 graph, unless that tribe is recognized

4 after that date of enactment by either

5 an Act of Congress or pursuant to

6 regulations of the Secretary of the In7 terior for the administrative recogni8 tion that an Indian group exists as an

9 Indian tribe (part 83 of title 25, Code

10 of Federal Regulations); and

11 ‘‘(II) lands taken into trust or

12 acquired by an Indian tribe after the

13 date of enactment of this paragraph if

14 such lands are not located within the

15 external boundaries of an Indian res16 ervation or former reservation or are

17 not contiguous to the lands held in

18 trust or restricted status on that date

19 of enactment; and

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

21 lands that—

22 ‘‘(I) are within the jurisdictional

23 areas of an Oklahoma Indian tribe (as

24 determined by the Secretary of the In25 terior); and
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1 ‘‘(II) are recognized by the Sec2 retary of the Interior as eligible for

3 trust land status under part 151 of

4 title 25, Code of Federal Regulations

5 (as in effect on the date of enactment

6 of this paragraph).’’.

7 Subtitle B—Other HUBZone

8 Provisions

9 SEC. 611. DEFINITIONS.

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

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

12 amended by striking ‘‘(I)’’.

13 (b) QUALIFIED NONMETROPOLITAN COUNTY.—Sec14 tion 3(p)(4) of the Small Business Act (15 U.S.C.

15 632(p)(4)) is amended by striking subparagraph (B) and

16 inserting the following:

17 ‘‘(B) QUALIFIED NONMETROPOLITAN

18 COUNTY.—The term ‘qualified nonmetropolitan

19 county’ means any county—

20 ‘‘(i) that was not located in a metro21 politan statistical area (as defined in sec22 tion 143(k)(2)(B) of the Internal Revenue

23 Code of 1986) at the time of the most re24 cent census taken for purposes of selecting

25 qualified census tracts under section
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1 42(d)(5)(C)(ii) of the Internal Revenue

2 Code of 1986; and

3 ‘‘(ii) in which—

4 ‘‘(I) the median household in5 come is less than 80 percent of the

6 nonmetropolitan State median house7 hold income, based on the most recent

8 data available from the Bureau of the

9 Census of the Department of Com10 merce; or

11 ‘‘(II) the unemployment rate is

12 not less than 140 percent of the

13 Statewide average unemployment rate

14 for the State in which the county is

15 located, based on the most recent data

16 available from the Secretary of

17 Labor.’’.

18 SEC. 612. ELIGIBLE CONTRACTS.

19 (a) COMMODITIES CONTRACTS.—Section 31(b) of the

20 Small Business Act (15 U.S.C. 657a(b)) is amended—

21 (1) in paragraph (3)—

22 (A) by striking ‘‘In any’’ and inserting the

23 following:

24 ‘‘(A) IN GENERAL.—Subject to subpara25 graph (B), in any’’; and
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1 (B) by adding at the end the following:

2 ‘‘(B) PROCUREMENT OF COMMODITIES.—

3 For purchases by the Secretary of Agriculture

4 of agricultural commodities, the price evaluation

5 preference shall be—

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

7 contract to be awarded that is not greater

8 than 25 percent of the total volume being

9 procured for each commodity in a single

10 invitation;

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

12 contract to be awarded that is greater than

13 25 percent, but not greater than 40 per14 cent, of the total volume being procured

15 for each commodity in a single invitation;

16 and

17 ‘‘(iii) zero, for the portion of a con18 tract to be awarded that is greater than 40

19 percent of the total volume being procured

20 for each commodity in a single invitation.

21 ‘‘(C) TREATMENT OF PREFERENCE.—A

22 contract awarded to a HUBZone small business

23 concern under a preference described in sub24 paragraph (B) shall not be counted toward the

25 fulfillment of any requirement partially set
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1 aside for competition restricted to small busi2 ness concerns.’’;

3 (2) in paragraph (4), by striking ‘‘paragraph

4 (2) or (3)’’ and inserting ‘‘this subsection’’; and

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

6 ‘‘(5) PREFERENCE FOR CERTAIN SMALL BUSI7 NESSES.—

8 ‘‘(A) IN GENERAL.—Except as provided in

9 paragraph (4), a contracting officer shall give

10 preference in awarding contracts under sub11 paragraph (A) or (B) of paragraph (2) to quali12 fied HUBZone small business concerns that are

13 also eligible to be awarded contracts under sec14 tion 8(a).

15 ‘‘(B) REGULATORY LIMITATION.—No rule,

16 regulation, or order of the Administration or

17 the Federal Acquisition Regulatory Council may

18 require a contracting officer, in awarding

19 contracts—

20 ‘‘(i) to give preferential treatment to a

21 qualified HUBZone small business concern

22 relative to a small business concern that is

23 eligible to be awarded a contract under

24 section 8(a); or
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1 ‘‘(ii) to give preferential treatment to

2 a small business concern that is eligible to

3 be awarded a contract under section 8(a)

4 relative to a qualified HUBZone small

5 business concern.’’.

6 (b) DEFINITIONS.—Section 3(p) of the Small Busi7 ness Act (15 U.S.C. 632(p)), as amended by this Act, is

8 amended—

9 (1) in paragraph (5)(A)(i)(III)—

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

11 end; and

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

13 ‘‘(cc) in the case of a con14 tract for the procurement by the

15 Secretary of Agriculture of agri16 cultural commodities, none of the

17 commodity being procured will be

18 obtained by the prime contractor

19 through a subcontract for the

20 purchase of the commodity in

21 substantially the final form in

22 which it is to be supplied to the

23 Government; and’’; and

24 (2) by adding at the end the following:
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1 ‘‘(7) AGRICULTURAL COMMODITY.—The term

2 ‘agricultural commodity’ has the same meaning as in

3 section 102 of the Agricultural Trade Act of 1978

4 (7 U.S.C. 5602).’’.

5 SEC. 613. HUBZONE REDESIGNATED AREAS.

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

7 632(p)) is amended—

8 (1) in paragraph (1)—

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

10 at the end;

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

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

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

14 ‘‘(D) redesignated areas.’’; and

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

16 following:

17 ‘‘(C) REDESIGNATED AREA.—The term

18 ‘redesignated area’ means any census tract that

19 ceases to be qualified under subparagraph (A)

20 and any nonmetropolitan county that ceases to

21 be qualified under subparagraph (B), except

22 that a census tract or a nonmetropolitan county

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

24 period following the date on which the census
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1 tract or nonmetropolitan county ceased to be so

2 qualified.’’.

3 SEC. 614. COMMUNITY DEVELOPMENT.

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

5 632(p)), as amended by this Act, is amended—

6 (1) in paragraph (3)—

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

8 at the end;

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

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

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

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

13 ‘‘(i) wholly owned by a community de14 velopment corporation that has received fi15 nancial assistance under Part 1 of Sub16 chapter A of the Community Economic De17 velopment Act of 1981 (42 U.S.C. 9805 et

18 seq.); or

19 ‘‘(ii) owned in part by 1 or more com20 munity development corporations, if all

21 other owners are either United States citi22 zens or small business concerns.’’; and

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

24 ‘‘subparagraph (A) or (B)’’ and inserting ‘‘subpara25 graph (A), (B), or (D)’’.
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1 SEC. 615. REFERENCE CORRECTIONS.

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

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

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

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

6 (A)(i)(III)’’.

7 (b) SECTION 8.—Section 8(d)(4)(D) of the Small

8 Business Act (15 U.S.C. 637(d)(4)(D)) is amended by in9 serting ‘‘qualified HUBZone small business concerns,’’

10 after ‘‘small business concerns,’’.

11 TITLE VII—NATIONAL WOMEN’S

12 BUSINESS COUNCIL REAU13 THORIZATION

14 SEC. 701. SHORT TITLE.

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

16 Business Council Reauthorization Act of 2000’’.

17 SEC. 702. MEMBERSHIP OF THE COUNCIL.

18 Section 407 of the Women’s Business Ownership Act

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

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

21 and all that follows through ‘‘the President’’ and in22 serting ‘‘The President’’;

23 (2) in subsection (b)—

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

25 follows through ‘‘the Administrator’’ and insert26 ing ‘‘The Administrator’’; and
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1 (B) by striking ‘‘the Assistant Adminis2 trator of the Office of Women’s Business Own3 ership and’’;

4 (3) in subsection (d), by striking ‘‘, except

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

6 subsection and inserting a period; and

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

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

9 and inserting ‘‘The Administrator’’.

10 SEC. 703. REPEAL OF PROCUREMENT PROJECT.

11 Section 409 of the Women’s Business Ownership Act

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

13 SEC. 704. STUDIES AND OTHER RESEARCH.

14 Section 410 of the Women’s Business Ownership Act

15 of 1988 (15 U.S.C. 631 note) is amended to read as fol16 lows:

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

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

19 studies and other research relating to the award of Fed20 eral prime contracts and subcontracts to women-owned

21 businesses, to access to credit and investment capital by

22 women entrepreneurs, or to other issues relating to

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

24 appropriate.
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1 ‘‘(b) CONTRACT AUTHORITY.—In conducting any

2 study or other research under this section, the Council

3 may contract with 1 or more public or private entities.’’.

4 SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

5 Section 411 of the Women’s Business Ownership Act

6 of 1988 (15 U.S.C. 631 note) is amended to read as fol7 lows:

8 ‘‘SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘(a) IN GENERAL.—There is authorized to be appro10 priated to carry out this title $1,000,000, for each of fiscal

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

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

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

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

15 expended by the Council before the date on which the

16 Council reviews and approves the operating budget of the

17 Council to carry out the responsibilities of the Council for

18 that fiscal year.’’.

19 TITLE VIII—MISCELLANEOUS

20 PROVISIONS

21 SEC. 801. LOAN APPLICATION PROCESSING.

22 (a) STUDY.—The Administrator of the Small Busi23 ness Administration shall conduct a study to determine

24 the average time that the Administration requires to proc25 ess an application for each type of loan or loan guarantee
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1 made under the Small Business Act (15 U.S.C. 631 et

2 seq.).

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

4 date of enactment of this Act, the Administrator shall

5 transmit to Congress the results of the study conducted

6 under subsection (a).

7 SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS.

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

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

10 adding at the end the following:

11 ‘‘(30) OWNERSHIP REQUIREMENTS.—Owner12 ship requirements to determine the eligibility of a

13 small business concern that applies for assistance

14 under any credit program under this Act shall be de15 termined without regard to any ownership interest of

16 a spouse arising solely from the application of the

17 community property laws of a State for purposes of

18 determining marital interests.’’.

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

20 Section 502 of the Small Business Investment Act of 1958

21 (15 U.S.C. 696) is amended by adding at the end the fol22 lowing:

23 ‘‘(6) OWNERSHIP REQUIREMENTS.—Ownership

24 requirements to determine the eligibility of a small

25 business concern that applies for assistance under
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1 any credit program under this title shall be deter2 mined without regard to any ownership interest of a

3 spouse arising solely from the application of the

4 community property laws of a State for purposes of

5 determining marital interests.’’.

6 SEC. 803. SUBCONTRACTING PREFERENCE FOR VETERANS.

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

8 637(d)) is amended—

9 (1) in paragraph (1), by inserting ‘‘small busi10 ness concerns owned and controlled by veterans,’’

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

12 term appears in each of the first and second sen13 tences;

14 (2) in paragraph (3)—

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

16 ‘‘small business concerns owned and controlled

17 by service-disabled veterans,’’ after ‘‘small busi18 ness concerns owned and controlled by vet19 erans,’’ in each of the first and second sen20 tences; and

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

22 ‘‘small business concern owned and controlled

23 by service-disabled veterans,’’ after ‘‘small busi24 ness concern owned and controlled by vet25 erans,’’; and
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1 (3) in each of paragraphs (4)(D), (4)(E),

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

3 ‘‘small business concerns owned and controlled by

4 service-disabled veterans,’’ after ‘‘small business con5 cerns owned and controlled by veterans,’’.

6 SEC. 804. SMALL BUSINESS DEVELOPMENT CENTER PRO7 GRAM FUNDING.

8 (a) AUTHORIZATION.—

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

10 Small Business Act (15 U.S.C. 631 note) is amend11 ed by striking ‘‘For fiscal year 1985’’ and all that

12 follows through ‘‘expended.’’ and inserting the fol13 lowing: ‘‘For fiscal year 2000 and each fiscal year

14 thereafter, there are authorized to be appropriated

15 such sums as may be necessary and appropriate, to

16 remain available until expended, and to be available

17 solely—

18 ‘‘(A) to carry out the Small Business Develop19 ment Center Program under section 21, but not to

20 exceed the annual funding level, as specified in sec21 tion 21(a);

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

23 Business Development Center Advisory Board, as

24 provided in section 21(i);
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1 ‘‘(C) to pay the expenses of the information

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

3 ‘‘(D) to pay the expenses of the association re4 ferred to in section 21(a)(3)(A) for conducting the

5 certification program, as provided in section

6 21(k)(2); and

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

8 including salaries of examiners, for conducting ex9 aminations as part of the certification program con10 ducted by the association referred to in section

11 21(a)(3)(A).’’.

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

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

14 amended by moving the margins of paragraphs (3)

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

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

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

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

19 to read as follows:

20 ‘‘(C) FUNDING FORMULA.—

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

22 the amount of a formula grant received by a

23 State under this subparagraph shall be equal to

24 an amount determined in accordance with the

25 following formula:
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1 ‘‘(I) The annual amount made avail2 able under section 20(a) for the Small

3 Business Development Center Program,

4 less any reductions made for expenses au5 thorized by clause (v) of this subpara6 graph, shall be divided on a pro rata basis,

7 based on the percentage of the population

8 of each State, as compared to the popu9 lation of the United States.

10 ‘‘(II) If the pro rata amount cal11 culated under subclause (I) for any State

12 is less than the minimum funding level

13 under clause (iii), the Administration shall

14 determine the aggregate amount necessary

15 to achieve that minimum funding level for

16 each such State.

17 ‘‘(III) The aggregate amount cal18 culated under subclause (II) shall be de19 ducted from the amount calculated under

20 subclause (I) for States eligible to receive

21 more than the minimum funding level. The

22 deductions shall be made on a pro rata

23 basis, based on the population of each such

24 State, as compared to the total population

25 of all such States.
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1 ‘‘(IV) The aggregate amount deducted

2 under subclause (III) shall be added to the

3 grants of those States that are not eligible

4 to receive more than the minimum funding

5 level in order to achieve the minimum

6 funding level for each such State, except

7 that the eligible amount of a grant to any

8 State shall not be reduced to an amount

9 below the minimum funding level.

10 ‘‘(ii) GRANT DETERMINATION.—The

11 amount of a grant that a State is eligible to

12 apply for under this subparagraph shall be the

13 amount determined under clause (i), subject to

14 any modifications required under clause (iii),

15 and shall be based on the amount available for

16 the fiscal year in which performance of the

17 grant commences, but not including amounts

18 distributed in accordance with clause (iv). The

19 amount of a grant received by a State under

20 any provision of this subparagraph shall not ex21 ceed the amount of matching funds from

22 sources other than the Federal Government, as

23 required under subparagraph (A).

24 ‘‘(iii) MINIMUM FUNDING LEVEL.—The

25 amount of the minimum funding level for each
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1 State shall be determined for each fiscal year

2 based on the amount made available for that

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

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

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

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

7 level shall be $500,000.

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

9 less than $81,500,000, the minimum fund10 ing level shall be the remainder of

11 $500,000 minus a percentage of $500,000

12 equal to the percentage amount by which

13 the amount made available is less than

14 $81,500,000.

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

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

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

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

19 percentage amount by which the amount

20 made available exceeds $90,000,000.

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

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

23 full funding eligibility for a fiscal year, the Ad24 ministration shall distribute the remaining

25 funds as follows:
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1 ‘‘(I) If the grant to any State is less

2 than the amount received by that State in

3 fiscal year 2000, the Administration shall

4 distribute such remaining funds, on a pro

5 rata basis, based on the percentage of

6 shortage of each such State, as compared

7 to the total amount of such remaining

8 funds available, to the extent necessary in

9 order to increase the amount of the grant

10 to the amount received by that State in fis11 cal year 2000, or until such funds are ex12 hausted, whichever first occurs.

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

14 application of subclause (I), the remaining

15 amount may be distributed as supple16 mental grants to any State, as the Admin17 istration determines, in its discretion, to be

18 appropriate, after consultation with the as19 sociation referred to in subsection

20 (a)(3)(A).

21 ‘‘(v) USE OF AMOUNTS.—

22 ‘‘(I) IN GENERAL.—Of the amounts

23 made available in any fiscal year to carry

24 out this section—
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1 ‘‘(aa) not more than $500,000

2 may be used by the Administration to

3 pay expenses enumerated in subpara4 graphs (B) through (D) of section

5 20(a)(1); and

6 ‘‘(bb) not more than $500,000

7 may be used by the Administration to

8 pay the examination expenses enumer9 ated in section 20(a)(1)(E).

10 ‘‘(II) LIMITATION.—No funds de11 scribed in subclause (I) may be used for

12 examination expenses under section

13 20(a)(1)(E) if the usage would reduce the

14 amount of grants made available under

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

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

17 amounts provided in appropriations Acts

18 for specific institutions or for purposes

19 other than the general small business de20 velopment center program) or would fur21 ther reduce the amount of such grants

22 below such amount.

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

24 State by the Administration or another Federal

25 agency to carry out subsection (a)(6) or
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1 (c)(3)(G), or for supplemental grants set forth

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

3 be included in the calculation of maximum

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

5 subparagraph.

6 ‘‘(vii) AUTHORIZATION OF APPROPRIA7 TIONS.—There is authorized to be appropriated

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

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

10 ‘‘(viii) STATE DEFINED.—In this subpara11 graph, the term ‘State’ means each of the sev12 eral States, the District of Columbia, the Com13 monwealth of Puerto Rico, the Virgin Islands,

14 Guam, and American Samoa.’’.

15 SEC. 805. SURETY BONDS.

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

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

18 amended—

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

20 ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’; and

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

22 ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’.

23 (b) EXTENSION OF CERTAIN AUTHORITY.—Section

24 207 of the Small Business Administration Reauthorization
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1 and Amendment Act of 1988 (15 U.S.C. 694b note) is

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

3 SEC. 806. SIZE STANDARDS.

4 (a) INDUSTRY CLASSIFICATIONS.—Section 15(a) of

5 the Small Business Act (15 U.S.C. 644(a)) is amended

6 in the eighth sentence, by striking ‘‘four-digit standard’’

7 and all that follows through ‘‘published’’ and inserting

8 ‘‘definition of a ‘United States industry’ under the North

9 American Industry Classification System, as established’’.

10 (b) ANNUAL RECEIPTS.—Section 3(a)(1) of the

11 Small Business Act (15 U.S.C. 632(a)(1)) is amended by

12 striking ‘‘$500,000’’ and inserting ‘‘$750,000’’.

13 SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SEC14 TION 8(a).

15 Section 8(a)(15)(A) of the Small Business Act (15

16 U.S.C. 637(a)(15)(A)) is amended to read as follows:

17 ‘‘(A) is a nonprofit corporation that has filed

18 articles of incorporation with the director (or the

19 designee thereof) of the Hawaii Department of Com20 merce and Consumer Affairs, or any successor agen21 cy,’’.

22 SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT

23 CORPORATION CORRECTION.

24 Section 33(k) of the Small Business Act (15 U.S.C.

25 657c(k)) is amended—
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1 (1) by striking paragraph (1) and inserting the

2 following:

3 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

4 there are authorized to be appropriated to the Cor5 poration to carry out this section—

6 ‘‘(A) $4,000,000 for fiscal year 2001;

7 ‘‘(B) $4,000,000 for fiscal year 2002;

8 ‘‘(C) $2,000,000 for fiscal year 2003; and

9 ‘‘(D) $2,000,000 for fiscal year 2004.’’;

10 (2) in paragraph (2)(A), by striking ‘‘2001’’

11 each place it appears and inserting ‘‘2002’’; and

12 (3) in paragraph (2)(B), by striking ‘‘2002 or

13 2003’’ and inserting ‘‘2003 or 2004’’.

14 SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE.

15 Section 8(b)(1)(B) of the Small Business Act (15

16 U.S.C. 637(b)(1)(B)) is amended by adding at the end

17 the following: ‘‘Notwithstanding any other provision of

18 law, SCORE may solicit cash and in-kind contributions

19 from the private sector to be used to carry out its func20 tions under this Act, and may use payments made by the

21 Administration pursuant to this subparagraph for such so22 licitation.’’.
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1 SEC. 810. CONTRACT DATA COLLECTION.

2 (a) REPORTING OF BUNDLED CONTRACT OPPORTU3 NITIES.—Section 3(o)(1) of the Small Business Act (15

4 U.S.C. 632(o)(1)) is amended to read as follows:

5 ‘‘(1) BUNDLED CONTRACT.—The term ‘bundled

6 contract’ means a contract, or a modification of an

7 existing contract, that is entered into to meet—

8 ‘‘(A) requirements that are consolidated in

9 a bundling of contract requirements regardless

10 of whether the contracting agency has con11 ducted a study of the effects of the solicitation

12 for the contract on civilian or military personnel

13 of the United States; or

14 ‘‘(B) any procurement requirement that

15 permits the consolidation of 2 or more procure16 ment requirements.’’.

17 (b) ANALYSIS REQUIRED WITH RESPECT TO BUN18 DLED CONTRACTS.—Section 15(e)(2)(A) of the Small

19 Business Act (15 U.S.C. 644(e)(2)(A)) is amended—

20 (1) by striking ‘‘(A) IN GENERAL.—’’ and in21 serting the following:

22 ‘‘(A) DETERMINATION OF NECESSITY.—

23 ‘‘(i) IN GENERAL.—’’; and

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

25 ‘‘(ii) IDENTIFICATION OF DISPLACED

26 PRIME CONTRACTORS.—The market re-
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1 search required by clause (i) shall also

2 identify each small business concern that

3 will be displaced as a prime contractor as

4 a result of the award of such contract, and

5 the Administrator shall maintain such data

6 for a period of not less than 10 years.

7 ‘‘(iii) NOTIFICATION TO ADMINIS8 TRATOR.—Before proceeding with an ac9 quisition strategy to recompete a pre10 viously bundled contract as a contract that

11 continues to contain the bundling of con12 tract requirements of the original bundled

13 contract, the head of the agency shall no14 tify the Administrator and shall conduct

15 market research, as set forth in this sub16 paragraph.

17 ‘‘(iv) REVIEW AND DETERMINA18 TION.—The Administrator shall, not later

19 than 30 days after notification under

20 clause (iii), review and determine—

21 ‘‘(I) the amount of savings and

22 benefits (in accordance with this sub23 section) achieved under the bundling

24 of contract requirements; and
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1 ‘‘(II) whether such savings and

2 benefits will continue to be realized if

3 the contract remains bundled and

4 whether such benefits would be great5 er if the procurement requirements

6 were divided into separate solicitations

7 suitable for award to small business

8 concerns.

9 ‘‘(v) APPEAL.—If the determination

10 of the Administrator under clause (iv)

11 reaches a different conclusion with respect

12 to the savings and benefits of the recom13 peted bundle than that found by the head

14 of the contracting agency, as required by

15 clause (iii), the Administrator shall appeal

16 the decision to the Office of Federal Pro17 curement Policy. The Administrator and

18 the head of the contracting agency shall

19 submit the reports required by this sub20 section to the Office of Federal Procure21 ment Policy, not later than 5 calendar

22 days after the Administrator’s report is

23 completed. Not later than 7 calendar days

24 after submission of such reports, the Ad25 ministrator of the Office of Federal Pro-
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1 curement Policy shall determine whether

2 the subject contract shall be recompeted as

3 bundled contract.’’.

4 (c) ANNUAL REPORT ON CONTRACT BUNDLING.—

5 Section 15 of the Small Business Act (15 U.S.C. 644) is

6 amended by adding at the end the following:

7 ‘‘(p) ANNUAL REPORT ON CONTRACT BUNDLING.—

8 ‘‘(1) IN GENERAL.—Not later than 1 year after

9 the date of enactment of this subsection, and annu10 ally in March thereafter, the Administration shall

11 transmit a report on contract bundling to the Com12 mittees on Small Business of the House of Rep13 resentatives and the Senate.

14 ‘‘(2) CONTENTS.—Each report transmitted

15 under paragraph (1) shall include—

16 ‘‘(A) data on the number, arranged by in17 dustrial classification, of small business con18 cerns displaced as prime contractors as a result

19 of the award of bundled contracts by Federal

20 agencies; and

21 ‘‘(B) a description of the activities with re22 spect to previously bundled contracts of each

23 Federal agency during the preceding year,

24 including—
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1 ‘‘(i) data on the number and total dol2 lar amount of all contract requirements

3 that were bundled; and

4 ‘‘(ii) with respect to each bundled con5 tract, data or information on—

6 ‘‘(I) the justification for the bun7 dling of contract requirements;

8 ‘‘(II) the cost savings realized by

9 bundling the contract requirements

10 over the life of the contract;

11 ‘‘(III) the extent to which main12 taining the bundled status of contract

13 requirements is projected to result in

14 continued cost savings;

15 ‘‘(IV) the extent to which the

16 bundling of contract requirements

17 complied with the contracting agen18 cy’s small business subcontracting

19 plan, including the total dollar value

20 awarded to small business concerns as

21 subcontractors and the total dollar

22 value previously awarded to small

23 business concerns as prime contrac24 tors; and
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1 ‘‘(V) the impact of the bundling

2 of contract requirements on small

3 business concerns unable to compete

4 as prime contractors for the consoli5 dated requirements and on the indus6 tries of such small business concerns,

7 including a description of any changes

8 to the proportion of any such industry

9 that is composed of small business

10 concerns.’’.

11 (d) REPORTING OF BUNDLED CONTRACT OPPORTU12 NITIES.—Section 414(a) of the Small Business Reauthor13 ization Act of 1997 (41 U.S.C. 405 note) is amended—

14 (1) by striking ‘‘$5,000,000’’ and inserting

15 ‘‘$25,000’’; and

16 (2) by striking ‘‘bundling of contract require17 ments’’ and inserting ‘‘bundled contract’’.

18 SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED

19 SMALL BUSINESS CONCERNS.

20 Section 8 of the Small Business Act (15 U.S.C. 637)

21 is amended by adding at the end the following new sub22 section:

23 ‘‘(m) PROCUREMENT PROGRAM FOR WOMEN-OWNED

24 SMALL BUSINESS CONCERNS.—
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1 ‘‘(1) DEFINITIONS.—In this subsection, the fol2 lowing definitions apply:

3 ‘‘(A) CONTRACTING OFFICER.—The term

4 ‘contracting officer’ has the meaning given such

5 term in section 27(f)(5) of the Office of Federal

6 Procurement Policy Act (41 U.S.C. 423(f)(5)).

7 ‘‘(B) SMALL BUSINESS CONCERN OWNED

8 AND CONTROLLED BY WOMEN.—The term

9 ‘small business concern owned and controlled by

10 women’ has the meaning given such term in

11 section 3(n), except that ownership shall be de12 termined without regard to any community

13 property law.

14 ‘‘(2) AUTHORITY TO RESTRICT COMPETITION.—

15 In accordance with this subsection, a contracting of16 ficer may restrict competition for any contract for

17 the procurement of goods or services by the Federal

18 Government to small business concerns owned and

19 controlled by women, if—

20 ‘‘(A) each of the concerns is not less than

21 51 percent owned by 1 or more women who are

22 economically disadvantaged (and such owner23 ship is determined without regard to any com24 munity property law);
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1 ‘‘(B) the contracting officer has a reason2 able expectation that 2 or more small business

3 concerns owned and controlled by women will

4 submit offers for the contract;

5 ‘‘(C) the contract is for the procurement of

6 goods or services with respect to an industry

7 identified by the Administrator pursuant to

8 paragraph (3);

9 ‘‘(D) the anticipated award price of the

10 contract (including options) does not exceed—

11 ‘‘(i) $5,000,000, in the case of a con12 tract assigned a standard industrial classi13 fication code for manufacturing; or

14 ‘‘(ii) $3,000,000, in the case of all

15 other contracts;

16 ‘‘(E) in the estimation of the contracting

17 officer, the contract award can be made at a

18 fair and reasonable price; and

19 ‘‘(F) each of the concerns—

20 ‘‘(i) is certified by a Federal agency,

21 a State government, or a national certi22 fying entity approved by the Adminis23 trator, as a small business concern owned

24 and controlled by women; or
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1 ‘‘(ii) certifies to the contracting officer

2 that it is a small business concern owned

3 and controlled by women and provides ade4 quate documentation, in accordance with

5 standards established by the Administra6 tion, to support such certification.

7 ‘‘(3) WAIVER.—With respect to a small busi8 ness concern owned and controlled by women, the

9 Administrator may waive subparagraph (2)(A) if the

10 Administrator determines that the concern is in an

11 industry in which small business concerns owned

12 and controlled by women are substantially underrep13 resented.

14 ‘‘(4) IDENTIFICATION OF INDUSTRIES.—The

15 Administrator shall conduct a study to identify in16 dustries in which small business concerns owned and

17 controlled by women are underrepresented with re18 spect to Federal procurement contracting.

19 ‘‘(5) ENFORCEMENT; PENALTIES.—

20 ‘‘(A) VERIFICATION OF ELIGIBILITY.—In

21 carrying out this subsection, the Administrator

22 shall establish procedures relating to—

23 ‘‘(i) the filing, investigation, and dis24 position by the Administration of any chal25 lenge to the eligibility of a small business
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1 concern to receive assistance under this

2 subsection (including a challenge, filed by

3 an interested party, relating to the veracity

4 of a certification made or information pro5 vided to the Administration by a small

6 business concern under paragraph (2)(F));

7 and

8 ‘‘(ii) verification by the Administrator

9 of the accuracy of any certification made

10 or information provided to the Administra11 tion by a small business concern under

12 paragraph (2)(F).

13 ‘‘(B) EXAMINATIONS.—The procedures es14 tablished under subparagraph (A) may provide

15 for program examinations (including random

16 program examinations) by the Administrator of

17 any small business concern making a certifi18 cation or providing information to the Adminis19 trator under paragraph (2)(F).

20 ‘‘(C) PENALTIES.—In addition to the pen21 alties described in section 16(d), any small busi22 ness concern that is determined by the Admin23 istrator to have misrepresented the status of

24 that concern as a small business concern owned
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1 and controlled by women for purposes of this

2 subsection, shall be subject to—

3 ‘‘(i) section 1001 of title 18, United

4 States Code; and

5 ‘‘(ii) sections 3729 through 3733 of

6 title 31, United States Code.

7 ‘‘(6) PROVISION OF DATA.—Upon the request

8 of the Administrator, the head of any executive

9 agency shall promptly provide to the Administrator

10 such information as the Administrator determines to

11 be necessary to carry out this subsection.’’.

12 SEC. 812. PARTICIPATION IN GOVERNMENT CONTRACTS BY

13 CERTAIN SMALL BUSINESSES.

14 (a) IN GENERAL.—Section 8(a)(1)(D)(i)(II) of the

15 Small Business Act (15 U.S.C. 637(a)(1)(D)(i)(II) is

16 amended to read as follows:

17 ‘‘(II) the anticipated award price of the

18 contract (including options) will exceed—

19 ‘‘(aa) $6,500,000, in the case of a

20 contract opportunity assigned a North

21 American Industrial Classification code for

22 manufacturing; and

23 ‘‘(bb) $4,000,000, in the case of all

24 other contract opportunities, except that

25 the Administration may increase these
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1 thresholds due to inflation, as deemed nec2 essary.’’.

3 (b) HUBZONE SMALL BUSINESS CONCERNS.—Sec4 tion 31(b)(2)(A)(ii) of the Small Business Act (15 U.S.C.

5 657a(b)(2)(A)(ii)) is amended to read as follows:

6 ‘‘(ii) the anticipated award price of

7 the contract (including options) will not

8 exceed—

9 ‘‘(I) $6,500,000, in the case of a

10 contract opportunity assigned a North

11 American Industrial Classification

12 code for manufacturing; or

13 ‘‘(II) $4,000,000, in the case of

14 all other contract opportunities; and’’.

Æ