II

Calendar No. 462

103D CONGRESS

2D SESSION S. 1830

To authorize funding for the small business defense conversion program

of the Small Business Administration, and for other purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 4 (legislative day, JANUARY 25), 1994

Mrs. FEINSTEIN (for herself, Mr. INOUYE, Mr. BUMPERS, Mrs. BOXER, Mr.

MOYNIHAN, Mr. PELL, Mr. KERRY, Mr. LEVIN, Mr. CAMPBELL, Mr.

STEVENS, Mr. COHEN, Mr. LIEBERMAN, Mr. WOFFORD, and Mr. LAUTENBERG) introduced the following bill; which was read twice and referred to the Committee on Small Business

JUNE 14 (legislative day, JUNE 7), 1994

Reported by Mr. BUMPERS, with an amendment and an amendment to the

title

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To authorize funding for the small business defense conversion program of the Small Business Administration, 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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Small Business

3 Defense Conversion Guaranteed Loan Act of 1994’’.

4 SEC. 2. AUTHORIZATIONS.

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

6 note) is amended—

7 (1) in subsection (l), as added by section 405(3)

8 of the Small Business Credit and Business Oppor9 tunity Enhancement Act of 1992—

10 (A) by striking ‘‘(l) There’’ and inserting

11 ‘‘(3) There’’ and indenting appropriately; and

12 (B) by striking ‘‘subsection (k)’’, and in13 serting ‘‘paragraphs (1) and (2)’’;

14 (2) by redesignating subsection (k), as added by

15 section 405(3) of the Small Business Credit and

16 Business Opportunity Act of 1992, as subsection (l);

17 (3) in subsection (l), as so redesignated, by in18 serting after paragraph (1), the following new para19 graph:

20 ‘‘(2) The Administration is authorized to make

21 not more than $4,000,000,000 in loans on a guaran22 teed basis, in accordance with section 7(a)(21), such

23 amount to remain available until expended.’’;

24 (4) in subsection (n)—

25 (A) by striking ‘‘(n) There’’ and inserting

26 ‘‘(3) There’’ and indenting appropriately; and
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1 (B) by striking ‘‘subsection (m)’’ and in2 serting ‘‘paragraphs (1) and (2)’’;

3 (5) in subsection (m), by inserting after para4 graph (1), the following new paragraph:

5 ‘‘(2) The Administration is authorized to make

6 not more than $4,000,000,000 in loans on a guaran7 teed basis, in accordance with section 7(a)(21), such

8 amount to remain available until expended.’’;

9 (6) by redesignating subsection (o) as sub10 section (n); and

11 (7) in subsection (p)—

12 (A) by striking ‘‘(p) There’’ and inserting

13 ‘‘(2) There’’, and indenting appropriately; and

14 (B) by striking ‘‘subsection (o)’’ and in15 serting ‘‘paragraph (1)’’.

16 SEC. 3. TECHNICAL CLARIFICATION.

17 Section 7(a)(21)(A) of the Small Business Act (15

18 U.S.C. 636(a)(21)(A)) is amended by striking ‘‘under the’’

19 and inserting ‘‘on a guaranteed basis under the’’.

20 SEC. 4. REACHING ADDITIONAL SMALL BUSINESS CON21 CERNS.

22 Section 7(a)(21)(A)(i) of the Small Business Act (15

23 U.S.C. 636(a)(21)(A)(i)) is amended—

24 (1) in subclause (I), by striking ‘‘or’’ at the

25 end; and
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1 (2) by adding after subclause (II), the following

2 new subclause:

3 ‘‘(III) a substantial reduction in the reve4 nues of the small business concern due to an

5 overall reduction in economic activity within the

6 community from which such small business con7 cern derives revenues, if such reduction in eco8 nomic activity is a direct result of the factors

9 described in subclause (I) or (II); or’’.

10 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

12 ‘‘Small Business Defense Conversion Assistance Act of

13 1994’’.

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

15 this Act is as follows:

Sec. 1. Short title and table of contents.

TITLE I—SMALL BUSINESS DEFENSE CONVERSION LOAN

GUARANTEE PROGRAM

Sec. 101. Defense conversion loan guarantee authorizations.

Sec. 102. Technical clarification.

Sec. 103. Reaching additional small business concerns.

Sec. 104. Separate appropriations requirement.

TITLE II—MISCELLANEOUS SMALL BUSINESS ADMINISTRATION

AUTHORITIES

Sec. 201. Small business development center defense conversion assistance program.

Sec. 202. Job creation and community benefit.

Sec. 203. Development company loan program reauthorization.

Sec. 204. Disaster loan temporary personnel.
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1 TITLE I—SMALL BUSINESS DE2 FENSE CONVERSION LOAN

3 GUARANTEE PROGRAM

4 SEC. 101. DEFENSE CONVERSION LOAN GUARANTEE AU5 THORIZATIONS.

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

7 note) is amended—

8 (1) in subsection (l), as added by section 405(3)

9 of the Small Business Credit and Business Oppor10 tunity Enhancement Act of 1992—

11 (A) by striking ‘‘(l) There’’ and inserting

12 the following:

13 ‘‘(3) There’’; and

14 (B) by striking ‘‘subsection (k)’’, and insert15 ing ‘‘paragraphs (1) and (2)’’;

16 (2) by redesignating subsection (k), as added by

17 section 405(3) of the Small Business Credit and Busi18 ness Opportunity Act of 1992, as subsection (l);

19 (3) in subsection (l), as redesignated, by insert20 ing after paragraph (1) the following new paragraph:

21 ‘‘(2) The Administration is authorized to make

22 not more than $4,000,000,000 in loans on a guaran23 teed basis, in accordance with section 7(a)(21), such

24 amount to remain available without fiscal year limi25 tation.’’;
6

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1 (4) in subsection (n)—

2 (A) by striking ‘‘(n) There’’ and inserting

3 the following:

4 ‘‘(3) There’’; and

5 (B) by striking ‘‘subsection (m)’’ and insert6 ing ‘‘paragraphs (1) and (2)’’;

7 (5) in subsection (m), by inserting after para8 graph (1) the following new paragraph:

9 ‘‘(2) The Administration is authorized to make

10 not more than $4,000,000,000 in loans on a guaran11 teed basis, in accordance with section 7(a)(21), such

12 amount to remain available without fiscal year limi13 tation.’’;

14 (6) by redesignating subsection (o) as subsection

15 (n);

16 (7) in subsection (n), as redesignated, by insert17 ing after paragraph (1) the following new paragraph:

18 ‘‘(2) The Administration is authorized to make

19 not more than $4,000,000,000 in loans on a guaran20 teed basis, in accordance with section 7(a)(21), such

21 amount to remain available without fiscal year limi22 tation.’’; and

23 (8) in subsection (p)—

24 (A) by striking ‘‘(p) There’’ and inserting

25 the following:
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1 ‘‘(3) There’’; and

2 (B) by striking ‘‘subsection (o)’’ and insert3 ing ‘‘paragraphs (1) and (2)’’.

4 SEC. 102. TECHNICAL CLARIFICATION.

5 Section 7(a)(21)(A) of the Small Business Act (15

6 U.S.C. 636(a)(21)(A)) is amended by striking ‘‘under the’’

7 and inserting ‘‘on a guaranteed basis under the’’.

8 SEC. 103. REACHING ADDITIONAL SMALL BUSINESS CON9 CERNS.

10 Section 7(a)(21)(A)(i) of the Small Business Act (15

11 U.S.C. 636(a)(21)(A)(i)) is amended—

12 (1) in subclause (I), by striking ‘‘or’’ at the end;

13 and

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

15 subclause:

16 ‘‘(III) a substantial reduction in the reve17 nues of the small business concern due to an

18 overall reduction in economic activity within the

19 community from which such small business con20 cern derives revenues, if such reduction in eco21 nomic activity is a direct result of the factors de22 scribed in subclause (I) or (II); or’’.

23 SEC. 104. SEPARATE APPROPRIATIONS REQUIREMENT.

24 Section 7(a)(21)(C) of the Small Business Act (15

25 U.S.C. 636(a)(21)(C)) is amended by adding at the end the
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1 following: ‘‘Loans authorized under this paragraph shall be

2 funded through appropriations that are separate and dis3 tinct from the appropriations account that funds general

4 guaranteed business loans authorized under this section.’’.

5 TITLE II—MISCELLANEOUS

6 SMALL BUSINESS

7 ADMINISTRATION AUTHORITIES

8 SEC. 201. SMALL BUSINESS DEVELOPMENT CENTER DE9 FENSE CONVERSION ASSISTANCE PROGRAM.

10 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

11 21(a) of the Small Business Act (15 U.S.C. 648(a)) is

12 amended by adding at the end the following new paragraph:

13 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS FOR

14 DEFENSE CONVERSION ASSISTANCE PROGRAM.—

15 ‘‘(A) IN GENERAL.—

16 ‘‘(i) AUTHORIZATION.—There are au17 thorized to be appropriated, either directly

18 or through transfer from another Federal

19 department or agency, $15,000,000 for each

20 of fiscal years 1995, 1996, and 1997 to

21 carry out subsection (c)(3)(G).

22 ‘‘(ii) SEPARATE FUNDING.—Activities

23 carried out under subsection (c)(3)(G) shall

24 be funded through appropriations that are

25 separate and distinct from the appropria-
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1 tions account that funds Small Business

2 Development Centers authorized under this

3 section.

4 ‘‘(B) MATCHING REQUIREMENT.—Notwith5 standing paragraph (5), the Administration

6 shall require, as a condition of any grant (or

7 amendment or modification thereof) made under

8 subsection (c)(3)(G), that an additional amount

9 equal to 50 percent of such grant be provided

10 from sources other than the Federal Government.

11 Such amount may be provided in cash or by in12 direct or in-kind contribution.’’.

13 (b) FUNDS TO SMALL BUSINESS DEVELOPMENT CEN14 TERS.—Section 21(a) of the Small Business Act (15 U.S.C.

15 648(a)), as amended by subsection (a), is amended by add16 ing at the end the following new paragraph:

17 ‘‘(8) FUNDS TO SMALL BUSINESS DEVELOPMENT

18 CENTERS.—Notwithstanding any other provision of

19 law, amounts made available to a Small Business De20 velopment Center to carry out this section, either di21 rectly or through transfer from another Federal de22 partment or agency, shall not be included in the cal23 culation of the amount of Administration assistance

24 made available to the Small Business Development

25 Center for purposes of paragraph (4) or (5).’’.
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1 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

2 Section 21(a) of the Small Business Act (15 U.S.C. 648(a))

3 is amended—

4 (1) in paragraph (4), by striking ‘‘Except as

5 provided in paragraph (4)’’ and inserting ‘‘Except as

6 provided in paragraphs (5) and (7)’’; and

7 (2) in paragraph (5), by striking ‘‘required in

8 paragraph (3)’’ and inserting ‘‘required by paragraph

9 (4)’’.

10 SEC. 202. JOB CREATION AND COMMUNITY BENEFIT.

11 Section 7(a)(21) of the Small Business Act (15 U.S.C.

12 636(a)(21)) is amended by adding at the end the following

13 new subparagraph:

14 ‘‘(E) JOB CREATION AND COMMUNITY BENE15 FIT.—In providing assistance under this para16 graph, the Administration shall develop proce17 dures to ensure, to the maximum extent prac18 ticable, that such assistance is used for projects

19 that—

20 ‘‘(i) have the greatest potential for—

21 ‘‘(I) creating new jobs for individ22 uals whose employment is involuntar23 ily terminated due to reductions in

24 Federal defense expenditures; or
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1 ‘‘(II) preventing the loss of jobs by

2 employees of small business concerns

3 described in subparagraph (A)(i); and

4 ‘‘(ii) have substantial potential for

5 stimulating new economic activity in com6 munities most impacted by reductions in

7 Federal defense expenditures.’’.

8 SEC. 203. DEVELOPMENT COMPANY LOAN PROGRAM REAU9 THORIZATION.

10 Section 20(i)(2)(C) of the Small Business Act (15

11 U.S.C. 631 note) is amended by striking ‘‘$1,200,000,000’’

12 and inserting ‘‘$1,500,000,000’’.

13 SEC. 204. DISASTER LOAN TEMPORARY PERSONNEL.

14 Section 5(b)(8) of the Small Business Act (15 U.S.C.

15 634(b)(8)) is amended by striking ‘‘six months’’ and insert16 ing ‘‘12 months’’.

Amend the title so as to read: ‘‘A bill to authorize

funding for the small business defense conversion programs and the Development Company Loan Program of

the Small Business Administration, and for other purposes.’’.

Calendar No. 462

103D CONGRESS

2D SESSION S. 1830

A BILL

To authorize funding for the small business defense

ministration, and for other purposes.conversion program of the Small Business AdJUNE 14 (legislative day, JUNE 7), 1994

Reported with an amendment and an amendment to the

title