In the House of Representatives, U. S.,

September 21, 1994.

Resolved, That the bill from the Senate (S. 2060) entitled ‘‘An Act to amend the Small Business Act and the Small

Business Act of 1958, and for other purposes’’, do pass with

the following

AMENDMENTS:

Strike out all after the enacting clause and insert:

1 That this Act may be cited as the ‘‘Small Business Reau2 thorization and Amendment Act of 1994’’.

3 TITLE I—AUTHORIZATIONS

4 SEC. 101. AUTHORIZATIONS.

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

6 note) is amended by striking all of such section after sub7 section (k), as added by section 115(a) of the Small Busi8 ness Credit and Business Opportunity Enhancement Act of

9 1992, and by inserting in lieu thereof the following:

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

11 fiscal year 1995:

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

13 the Administration is authorized to make

14 $142,000,000 in direct and immediate participation

15 loans; and of such sum, the Administration is author16 ized to make $12,000,000 in loans as provided in sec-
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1 tion 7(a)(10) and $130,000,000 in loans as provided

2 in section 7(m).

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

4 the Administration is authorized to make

5 $11,535,000,000 in deferred participation loans and

6 other financings. Of such sum, the Administration is

7 authorized to make—

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

9 loans as provided in section 7(a);

10 ‘‘(B) $2,200,000,000 in financings as pro11 vided in section 7(a)(13) and section 504 of the

12 Small Business Investment Act of 1958; and

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

14 section 7(m).

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

16 the Small Business Investment Act of 1958, the Ad17 ministration is authorized to make—

18 ‘‘(A) $23,000,000 in purchases of preferred

19 securities;

20 ‘‘(B) $244,000,000 in guarantees of deben21 tures, of which $44,000,000 is authorized in

22 guarantees of debentures from companies operat23 ing pursuant to section 301(d) of such Act; and

24 ‘‘(C) $400,000,000 in guarantees of partici25 pating securities.
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1 ‘‘(4) For the programs authorized by part B of

2 title IV of the Small Business Investment Act of 1958,

3 the Administration is authorized to enter into guar4 antees not to exceed $1,800,000,000, of which not

5 more than $600,000,000 may be in bonds approved

6 pursuant to the provisions of section 411(a)(3) of such

7 Act.

8 ‘‘(5) For the Service Corps of Retired Executives

9 program authorized by section 8(b)(1) of this Act, the

10 Administration is authorized to make grants or enter

11 cooperative agreements not to exceed $3,500,000, and

12 for the small business institute program authorized by

13 section 8(b)(1) of this Act, the Administration is au14 thorized to make grants or enter cooperative agree15 ments not to exceed $3,000,000.

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

17 Administration for fiscal year 1995 such sums as may be

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

19 administrative expenses and necessary loan capital for dis20 aster loans pursuant to section 7(b), and to carry out the

21 provisions of the Small Business Investment Act of 1958,

22 including salaries and expenses of the Administration.

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

24 fiscal year 1996:
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1 ‘‘(1) For the programs authorized by this Act,

2 the Administration is authorized to make

3 $198,000,000 in direct and immediate participation

4 loans; and of such sum the Administration is author5 ized to make $13,000,000 in loans as provided in sec6 tion 7(a)(10) and $185,000,000 in loans as provided

7 in section 7(m).

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

9 the Administration is authorized to make

10 $24,610,000,000 in deferred participation loans and

11 other financings. Of such sum, the Administration is

12 authorized to make—

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

14 loans as provided in section 7(a);

15 ‘‘(B) $2,500,000,000 in financings as pro16 vided in section 7(a)(13) and section 504 of the

17 Small Business Investment Act of 1958; and

18 ‘‘(C) $80,000,000 in loans as provided in

19 section 7(m).

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

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

23 ‘‘(A) $24,000,000 in purchases of preferred

24 securities;
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1 ‘‘(B) $256,000,000 in guarantees of deben2 tures, of which $46,000,000 is authorized in

3 guarantees of debentures from companies operat4 ing pursuant to section 301(d) of such Act; and

5 ‘‘(C) $650,000,000 in guarantees of partici6 pating securities.

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

8 title IV of the Small Business Investment Act of 1958,

9 the Administration is authorized to enter into guar10 antees not to exceed $1,800,000,000, of which not

11 more than $600,000,000 may be in bonds approved

12 pursuant to the provisions of section 411(a)(3) of such

13 Act.

14 ‘‘(5) For the Service Corps of Retired Executives

15 program authorized by section 8(b)(1) of this Act, the

16 Administration is authorized to make grants or enter

17 cooperative agreements not to exceed $3,675,000, and

18 for the small business institute program authorized by

19 section 8(b)(1) of this Act, the Administration is au20 thorized to make grants or enter cooperative agree21 ments not to exceed $3,150,000.

22 ‘‘(o) There are authorized to be appropriated to the Ad23 ministration for fiscal year 1996 such sums as may be nec24 essary to carry out the provisions of this Act, including ad25 ministrative expenses and necessary loan capital for disas-
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1 ter loans pursuant to section 7(b), and to carry out the pro2 visions of the Small Business Investment Act of 1958, in3 cluding salaries and expenses of the Administration.

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

5 fiscal year 1997:

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

7 the Administration is authorized to make

8 $264,000,000 in direct and immediate participation

9 loans; and of such sum the Administration is author10 ized to make $14,000,000 in loans as provided in sec11 tion 7(a)(10) and $250,000,000 in loans as provided

12 in section 7(m).

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

14 the Administration is authorized to make

15 $17,215,000,000 in deferred participation loans and

16 other financings. Of such sum, the Administration is

17 authorized to make—

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

19 loans as provided in section 7(a);

20 ‘‘(B) $3,000,000,000 in financings as pro21 vided in section 7(a)(13) and section 504 of the

22 Small Business Investment Act of 1958; and

23 ‘‘(C) $40,000,000 in loans as provided in

24 section 7(m).
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1 ‘‘(3) For the programs authorized by title III of

2 the Small Business Investment Act of 1958, the Ad3 ministration is authorized to make—

4 ‘‘(A) $25,000,000 in purchases of preferred

5 securities;

6 ‘‘(B) $268,000,000 in guarantees of deben7 tures, of which $48,000,000 is authorized in

8 guarantees of debentures from companies operat9 ing pursuant to section 301(d) of such Act; and

10 ‘‘(C) $900,000,000 in guarantees of partici11 pating securities.

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

13 title IV of the Small Business Investment Act of 1958,

14 the Administration is authorized to enter into guar15 antees not to exceed $1,800,000,000, of which not

16 more than $600,000,000 may be in bonds approved

17 pursuant to the provisions of section 411(a)(3) of such

18 Act.

19 ‘‘(5) For the Service Corps of Retired Executives

20 program authorized by section 8(b)(1) of this Act, the

21 Administration is authorized to make grants or enter

22 cooperative agreements not to exceed $3,860,000, and

23 for the small business institute program authorized by

24 section 8(b)(1) of this Act, the Administration is au-
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1 thorized to make grants or enter cooperative agree2 ments not to exceed $3,310,000.

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

4 Administration for fiscal year 1997 such sums as may be

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

6 administrative expenses and necessary loan capital for dis7 aster loans pursuant to section 7(b), and to carry out the

8 provisions of the Small Business Investment Act of 1958,

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

10 TITLE II—FINANCIAL

11 ASSISTANCE PROGRAMS

12 SEC. 201. MICROLOAN FINANCING PILOT.

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

14 636(m)) is amended by adding the following new paragraph

15 at the end:

16 ‘‘(12) DEFERRED PARTICIPATION LOAN PILOT.—

17 During fiscal years 1995 through 1997, on a pilot

18 basis, in lieu of making direct loans to intermediaries

19 as authorized in paragraph (1)(B), the Administra20 tion may participate on a deferred basis of up to 100

21 percent on loans made to intermediaries by a for22 profit or non-profit entity or by alliances of such en23 tities subject to the following conditions:

24 ‘‘(A) NUMBER OF LOANS.—The Administra25 tion shall not participate in providing financing
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1 on a deferred basis to more than ten

2 intermediaries in urban areas per year and to

3 more than ten intermediaries in rural areas per

4 year.

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

6 loans shall be ten years. During the first five

7 years of the loan, the intermediary shall be re8 quired to pay interest only; and during the sec9 ond five years of the loan, the intermediary shall

10 be required to fully amortize principal and in11 terest payments.

12 ‘‘(C) INTEREST RATE.—The interest rate on

13 such loans shall be the rate specified by para14 graph (3)(F) for direct loans.’’.

15 SEC. 202. MICROLOAN STATE LIMITATION.

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

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

18 SEC. 203. LIMIT ON PARTICIPATION.

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

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

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

22 this demonstration program, the Administration

23 is authorized to fund, on a competitive basis, not

24 more than 240 microloan programs.’’.
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1 SEC. 204. EQUITABLE DISTRIBUTION.

2 Section 7(m)(8) of the Small Business Act (15 U.S.C.

3 636(m)(8)) is amended to read as follows:

4 ‘‘(8) EQUITABLE DISTRIBUTION OF

5 INTERMEDIARIES.—In approving microloan program

6 applicants, the Administration shall select participa7 tion by such intermediaries as will ensure appro8 priate availability of loans to small businesses located

9 in urban areas and in rural areas.’’.

10 SEC. 205. AMOUNT OF LOANS TO INTERMEDIARIES.

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

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

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

14 amount of funding which the Administration

15 may provide to one intermediary, it shall take

16 into consideration the small business population

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

18 SEC. 206. LOANS TO EXPORTERS.

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

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

21 ‘‘(A) The Administration may provide ex22 tensions, standby letters of credit, revolving lines

23 of credit for export purposes, and other financing

24 to enable small business concerns, including

25 small business export trading companies and

26 small business export management companies, to
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1 develop foreign markets. A bank or participating

2 lending institution may establish the rate of in3 terest on such financings as may be legal and

4 reasonable.’’.

5 SEC. 207. WORKING CAPITAL INTERNATIONAL TRADE

6 LOANS.

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

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

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

10 committed (on a deferred basis) solely for the

11 purposes provided in paragraph (16) to the bor12 rower from the business loan and investment

13 fund established by this Act would exceed

14 $1,250,000, of which not more than $750,000

15 may be used for working capital, supplies, or

16 financings under section 7(a)(14) for export pur17 poses; and’’.

18 SEC. 208. GUARANTEES ON INTERNATIONAL TRADE LOANS.

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

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

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

22 than 90 percent of the financing outstanding at

23 the time of disbursement if such financing is a

24 loan under paragraph (14) or under paragraph

25 (16).’’.
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1 SEC. 209. ACCREDITED LENDERS PROGRAM.

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

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

4 end the following new section:

5 ‘‘SEC. 507. ACCREDITED LENDERS PROGRAM.

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

7 Accredited Lenders Program for qualified State and local

8 development companies which meet the requirements of sub9 section (b).

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

11 State or local development company as an accredited lender

12 if such company—

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

15 months;

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

17 are knowledgeable in the Administration’s lending

18 policies and procedures for the development company

19 program;

20 ‘‘(3) has the ability to process, close, and service

21 financing for plant and equipment under section 502

22 of this Act;

23 ‘‘(4) has a loss rate on its debentures that is ac24 ceptable to the Administration;
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1 ‘‘(5) has a history of submitting to the Adminis2 tration complete and accurate debenture guaranty ap3 plication packages; and

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

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

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

8 of a loan application or servicing action submitted by a

9 qualified State or local development company that has been

10 designated as an accredited lender in accordance with sub11 section (b).

12 ‘‘(d) The designation of a qualified State or local devel13 opment company as an accredited lender may be suspended

14 or revoked if the Administration determines that the devel15 opment company has not continued to meet the criteria for

16 eligibility under subsection (b) or that the development com17 pany has failed to adhere to the Administration’s rules and

18 regulations or is violating any other applicable provision

19 of law. Suspension or revocation shall not affect any out20 standing debenture guarantee.

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

22 State or local development company’ has the same meaning

23 as in section 503(e).’’.
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1 (b) The Administration shall promulgate regulations

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

3 enactment of this Act.

4 (c) The Administration shall report to the Small Busi5 ness Committee of the United States Senate and to the

6 Small Business Committee of the United States House of

7 Representatives within one year, and annually thereafter,

8 on the implementation of this section, specifically including

9 data on the number of development companies designated

10 as accredited lenders, their debenture guarantee volume,

11 their loss rates, and the average processing time on their

12 guarantee applications, along with such other information

13 as the Administration deems appropriate.

14 SEC. 210. PREMIER LENDERS PROGRAM.

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

16 1958 (15 U.S.C. 695 et seq.) is further amended by adding

17 at the end the following new section:

18 ‘‘SEC. 508. PREMIER LENDERS PROGRAM.

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

20 Premier Lenders Program for certified development compa21 nies which meet the requirements of subsection (b).

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

23 in the accredited lenders program as a premier lender if

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

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

4 Administration may waive this provision if the ap5 plicant is qualified to participate in the accredited

6 lenders program;

7 ‘‘(2) has a history of submitting to the Adminis8 tration adequately analyzed debenture guarantee ap9 plication packages; and

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

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

16 this section.

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

19 reserve in an amount equal to the anticipated losses to the

20 certified development company pursuant to subsection

21 (b)(3) based upon the historic loss rate on debentures issued

22 by such company, or 3 percent of the aggregate principal

23 amount of debentures issued by such company and guaran24 teed by the Administration under this section, whichever

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

2 securitized in favor of the Administration or of such un3 qualified letters of credit or indemnity agreements from a

4 third party as the Administration deems appropriate.

5 ‘‘(d) Upon designation and qualification of a company

6 as a premier lender, and subject to such terms and condi7 tions as the Administration may determine, and notwith8 standing the provisions of section 503(b)(6), the Adminis9 tration may permit a premier lender to approve loans to

10 be funded with the proceeds of and to authorize the guaran11 tee of a debenture issued by such company. The approval

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

13 as to eligibility of any such guarantee by the Administra14 tion pursuant to subsection 503(a) of this Act, but such

15 final approval shall not include decisions by the company

16 involving creditworthiness, loan closing, or compliance with

17 legal requirements imposed by law or regulation.

18 ‘‘(e) The designation of a qualified State or local devel19 opment company as a premier lender may be suspended

20 or revoked if the Administration determines that the com21 pany—

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

23 eligibility under subsection (b);

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

25 reserve required under subsection (c); or
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1 ‘‘(3) is failing to adhere to the Administration’s

2 rules and regulations or is violating any other appli3 cable provision of law.

4 ‘‘(f) Suspension or revocation shall not affect any out5 standing debenture guarantee.’’.

6 (b) The Administration shall promulgate such regula7 tions to carry out this section within 180 days of the date

8 of the enactment of this Act.

9 (c) The Administration shall report to the Small Busi10 ness Committee of the United States Senate and to the

11 Small Business Committee of the United States House of

12 Representatives within one year, and annually thereafter,

13 on the implementation of this section, specifically including

14 data on the number of development companies designated

15 as premier lenders, their debenture guarantee volume, and

16 the loss rate for premier lenders as compared to accredited

17 and other lenders, along with such other information as the

18 Administration deems appropriate.

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

20 of 1958 is repealed on October 1, 1999.

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

22 the Small Business Investment Act of 1958 is amended by

23 adding at the end of the matter relating to title V the follow24 ing:

‘‘Sec. 507. Accredited lenders program.

‘‘Sec. 508. Premier lenders program.’’.
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1 SEC. 211. SSBIC ADVISORY COUNCIL.

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

3 after the date of the enactment of this Act, the Adminis4 trator of the Small Business Administration shall appoint

5 an Investment Advisory Council for the Specialized Small

6 Business Investment Company Program. The Council shall

7 consist of not less than 12 individuals from the private sec8 tor, including individuals—

9 (1) who have experience in providing venture

10 capital to small business, particularly minority small

11 business;

12 (2) who are current participants in the Special13 ized Small Business Investment Company Program;

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

16 or

17 (4) who are or who represent small business con18 cerns.

19 (b) CHAIRMAN AND STAFF.—The Administrator shall

20 designate one of the members of the Council as chairperson.

21 The Investment Division of the Small Business Administra22 tion shall provide such staff, technical support, and infor23 mation as shall be deemed appropriate. Council members

24 shall be deemed to be an advisory board pursuant to section

25 8(b)(13) of the Small Business Act for purposes of reim26 bursement of expenses.
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1 (C) REPORT.—Within six months of the date of ap2 pointment, the Council shall make a written report with

3 findings and recommendations on the venture capital needs,

4 including debt and equity, of socially or economically dis5 advantaged small business concerns and any needed Federal

6 incentives to assist the private sector to meet such needs.

7 The report shall specifically address—

8 (1) the history of the Specialized Small Business

9 Investment Company program in providing assist10 ance to such concerns and the impact of such assist11 ance on the economy;

12 (2) the appropriateness and ability of the Spe13 cialized Small Business Investment Company Pro14 gram to meet these needs;

15 (3) the problems affecting the Specialized Small

16 Business Investment Company Program; and

17 (4) the effectiveness of the Specialized Small

18 Business Investment Company Program and its ad19 ministration by the Small Business Administration.

20 SEC. 212. PARTICIPATING SECURITIES FOR SMALLER SBICS.

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

22 of 1958 (15 U.S.C. 683(g)) is amended by adding the follow23 ing new paragraph at the end:

24 ‘‘(13) Of the amount of the annual program level

25 of participating securities approved in Appropria-
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1 tions Acts, 50 percent shall be reserved for funding

2 Small Business Investment Companies with private

3 capital of less than $20,000,000; except that during

4 the last quarter of each fiscal year, the Administrator

5 may, if he determines that there is a lack of qualified

6 applicants with private capital under such amount,

7 utilize all or any part of the securities so reserved.’’.

8 SEC. 213. REPORT ON SBIC PROGRAM.

9 The Small Business Administration shall provide the

10 Committee on Small Business of the House of Representa11 tives and Senate with a comprehensive report on the status

12 and disposition of all Small Business Investment Compa13 nies, active or in liquidation, and a complete accounting

14 of the assets in and the basis of their portfolios, the projected

15 and actual loss rates for all portfolios in liquidation or ac16 tive, and a detailed accounting of valuation of the SBIC

17 program’s investments. This report shall be delivered to the

18 respective Committees on Small Business no later than

19 April 15, 1995.
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1 TITLE III—SIZE STANDARDS AND

2 BOND GUARANTEES

3 SEC. 301. COMPETITIVE DEMONSTRATION PROJECT SIZE

4 STANDARDS.

5 Section 732 of the Business Opportunity Development

6 Reform Act of 1988 (Public Law 100–656) is amended by

7 repealing the second sentence of such section.

8 SEC. 302. SIZE STANDARD CRITERIA.

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

10 632(a)(2)) is amended to read as follows:

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

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

13 standards by which a business concern may be determined

14 to be a small business concern for the purposes of this Act

15 or any other Act. Such standards may utilize number of

16 employees, dollar volume of business, net worth, net income,

17 or a combination thereof. Unless specifically authorized by

18 statute, no Federal department or agency may prescribe a

19 size standard for categorizing a business concern as a small

20 business concern, unless such proposed size standard—

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

22 public notice and comment;

23 ‘‘(B) provides for determining—

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

25 measured by its average employment based upon
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1 employment during each of the concern’s pay pe2 riods for the preceding twelve calendar months;

3 ‘‘(ii) the size of a concern providing services

4 on the basis of the annual average gross receipts

5 of the concern over a period of not less than 3

6 years; and

7 ‘‘(iii) the size of other concerns on the basis

8 of data over a period of not less than 3 years;

9 and

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

11 not being proposed by the Small Business Adminis12 tration.’’.

13 SEC. 303. SUNSET ON PREFERRED SURETY BOND GUARAN14 TEE PROGRAM.

15 Section 207 of the Small Business Administration Re16 authorization and Amendment Act of 1988 (Public Law

17 100–590) is amended by striking ‘‘September 30, 1994’’ and

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

19 SEC. 304. VERY SMALL BUSINESS CONCERNS.

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

21 amended by redesignating section 30 as section 41 and by

22 inserting after section 29, as redesignated by section 606

23 of this Act, the following:
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1 ‘‘SEC. 30. PILOT PROGRAM FOR VERY SMALL BUSINESS

2 CONCERNS.

3 ‘‘(a) ESTABLISHMENT.—The Administration shall es4 tablish and carry out a pilot program in accordance with

5 the requirements of this section to provide procurement op6 portunities to very small business concerns.

7 ‘‘(b) SUBCONTRACTING OF PROCUREMENT CON8 TRACTS.—

9 ‘‘(1) IN GENERAL.—In carrying out the pro10 gram, the Administration is authorized to enter into

11 procurement contracts with the United States Govern12 ment and to arrange for the performance of such con13 tracts through the award of subcontracts to very small

14 business concerns.

15 ‘‘(2) TERMS AND CONDITIONS.—The authority of

16 the Administration under paragraph (1) shall be sub17 ject to the same terms and conditions as apply to the

18 authority of the Administration under section 8(a),

19 except that—

20 ‘‘(A) the Administration may make such

21 modifications to such terms and conditions as

22 the Administration determines necessary; and

23 ‘‘(B) all contract opportunities offered for

24 award under the program shall be awarded on

25 the basis of competition restricted to eligible pro26 gram participants.
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1 ‘‘(c) PROGRAM PARTICIPATION.—Very small business

2 concerns participating in the program shall be subject to

3 the same terms and conditions for program participation

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

5 8(a); except that—

6 ‘‘(1) the Administration may make such modi7 fications to such terms and conditions as the Admin8 istration determines necessary; and

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

10 of qualifying as a very small business concern as de11 fined in subsection (g), in lieu of the requirements

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

13 8(a).

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

15 order to assist very small business concerns participating

16 in the program, the Administration is authorized—

17 ‘‘(1) to provide technical assistance to such con18 cerns in the same manner and to the same extent as

19 technical assistance is provided to small business con20 cerns pursuant to section 7(j); and

21 ‘‘(2) to provide pre-authorization to such con22 cerns for the purpose of receiving financial assistance

23 under section 7(a).
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1 ‘‘(e) PROGRAM TERM.—The Administration shall

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

3 and 1997.

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

5 31, 1996, the Administration shall transmit to Congress a

6 report containing an analysis of the results of the program,

7 together with recommendations for appropriate legislative

8 and administrative actions.

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

10 the following definitions apply:

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

12 program established pursuant to subsection (a).

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

14 term ‘very small business concern’ means a small

15 business concern that—

16 ‘‘(A) has 10 employees or less; or

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

18 $1,000,000 or less.’’.

19 TITLE IV—MANAGEMENT

20 ASSISTANCE

21 SEC. 401. SUNSET ON COSPONSORED TRAINING.

22 (a) The authority of the Small Business Administra23 tion to cosponsor training as authorized by section 5(a) of

24 the Small Business Computer Security and Education Act
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1 of 1984 (15 U.S.C. 633 note) is hereby repealed September

2 30, 1997.

3 (b) Section 7(b) of the Small Business Computer Secu4 rity and Education Act of 1984 (15 U.S.C. 633 note) is

5 amended by striking the second sentence.

6 SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PRO7 GRAM LEVEL.

8 Section 21(a)(4) of the Small Business Act (15 U.S.C.

9 648(a)(4)) is amended to read as follows:

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

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

12 to an applicant under this section, that a matching amount

13 (excluding any fees collected from recipients of such assist14 ance) equal to the amount of such grant be provided from

15 sources other than the Federal Government, to be comprised

16 of not less than 50 per centum cash and not more than

17 50 per centum of indirect costs and in-kind contributions:

18 Provided, That this matching amount shall not include any

19 indirect costs or in-kind contributions derived from any

20 Federal program: Provided further, That no recipient of

21 funds under this section shall receive a grant which would

22 exceed its pro rata share of a national program based upon

23 the population to be served by the Small Business Develop24 ment Center as compared to the total population in the

25 United States, plus $125,000, or $200,000, whichever is
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1 greater, per year. The amount of the national program shall

2 be—

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

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

5 September 30, 1996; and

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

7 The amount of eligibility of each Small Business Develop8 ment Center shall be based upon the amount of the national

9 program in effect as of the date for commencement of per10 formance of the Center’s grant.’’.

11 SEC. 403. FEDERAL CONTRACTS WITH SMALL BUSINESS DE12 VELOPMENT CENTERS.

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

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

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

16 a contract with a Federal department or agency to provide

17 specific assistance to small business concerns if the contract

18 is approved in advance by the Deputy Associate Adminis19 trator of the Small Business Development Center program.

20 Approval shall be based upon a determination that the con21 tract will provide assistance to small business concerns and

22 that its performance will not hinder the Center in carrying

23 out the terms of its grant from the Administration. The

24 amount of any such contract shall not be subject to the

25 matching funds requirements of paragraph (4) nor shall the
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1 amount of eligibility under such paragraph: Provided, That

2 notwithstanding any other provision of law, such contracts

3 for assistance to small business concerns shall not be count4 ed toward any Federal department or agency’s small busi5 ness, women-owned business, or socially and economically

6 disadvantaged business contracting goal as established by

7 section 15(g) of the Small Business Act (15 U.S.C.

8 644(g)).’’.

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

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

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

12 SEC. 404. CENTRAL EUROPEAN SMALL BUSINESS DEVELOP13 MENT.

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

15 652(i)) is amended by striking ‘‘and $2,000,000 for each

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

17 thereof ‘‘, $2,000,000 for each of fiscal years 1993 and 1994,

18 and $1,000,000 for fiscal year 1995’’.

19 SEC. 405. MOBILE RESOURCE CENTER PILOT PROGRAM.

20 (a) ESTABLISHMENT.—The Administrator of the

21 Small Business Administration may establish and carry

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

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

24 ‘‘program’’ in accordance with the requirements of this sec25 tion.
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1 (b) MOBILE RESOURCE CENTER VEHICLES.—Under

2 the program, the Administration may use mobile resource

3 center vehicles to provide technical assistance, information,

4 and other services available from the Small Business Ad5 ministration to traditionally underserved populations. Two

6 of such vehicles should be utilized in rural areas and 2 of

7 such vehicles should be utilized in urban areas.

8 (c) REPORT TO CONGRESS.—If the Administrator con9 ducts the program authorized in this section, not later than

10 December 31, 1996, he shall transmit to Congress a report

11 containing the results of such program, together with rec12 ommendations for appropriate legislative and administra13 tive actions.

14 (d) AUTHORIZATION OF APPROPRIATIONS.—There is

15 authorized to be appropriated for fiscal year 1995 $900,000

16 to carry out this section. Of such sums—

17 (1) $800,000 may be made available for the pur18 chase or lease of mobile resource center vehicles; and

19 (2) $100,000 may be made available for studies,

20 startup expenses, and other administrative expenses.

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

4 SEC. 501. CITATION.

5 This title may be cited as the ‘‘Small Business Prepay6 ment Penalty Relief Act of 1994.’’.

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

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

10 the concurrence of the borrower, the Small Business Admin11 istration is authorized to transfer to the Federal Financing

12 Bank such sums as may be necessary to carry out the provi13 sions of this section in order to reduce the interest rate on

14 a debenture issued by a certified development company. The

15 reduction shall be effective January 2, 1995 and shall apply

16 for the remainder of the term of the debenture.

17 (b) INTEREST RATE MODIFICATION.—Upon receipt of

18 such payment, the Federal Financing Bank shall modify

19 the interest rate of each debenture for which the payment

20 is made. No other change shall be made in the terms and

21 conditions of the debenture, and the modification in the in22 terest rate shall not be construed as a new direct loan or

23 a new loan guarantee.

24 (c) DEFINITIONS.—For the purposes of this section—
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1 (1) the term ‘‘issuer’’ means the issuer of a de2 benture pursuant to section 503 of the Small Business

3 Investment Act of 1958 which has been purchased by

4 the Federal Financing Bank if the debenture is out5 standing on the date of enactment of this Act, and

6 neither the loan that secures the debenture nor the de7 benture is in default on such date; and

8 (2) the term ‘‘borrower’’ means the small busi9 ness concern whose loan secures a debenture issued

10 pursuant to such section.

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

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

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

14 are otherwise authorized by contract or by law.

15 (e) REFINANCING.—Debentures authorized by sections

16 504 and 505 of the Small Business Investment Act of 1958

17 may be used to refinance debentures issued under section

18 503 of such Act if the amount of the new financing is lim19 ited to such amounts as are needed to repay the existing

20 debenture, including any prepayment penalty imposed by

21 the Federal Financing Bank. Any such refinancing shall

22 be subject to all of the other provisions of sections 504 and

23 505 of such Act and the rules and regulations of the Admin24 istration promulgated thereunder, including, but not lim25 ited to, rules and regulations governing payment of author-
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1 ized expenses and commissions, fees and discounts to brokers

2 and dealers in trust certificates issued pursuant to section

3 505: Provided, however, That no applicant for refinancing

4 under section 504 of this Act need demonstrate that the req5 uisite number of jobs will be created or preserved with the

6 proceeds of such refinancing: Provided further, That a de7 velopment company which provides refinancing under this

8 subsection shall be limited to a loan processing fee not to

9 exceed one-half of one percent to cover the cost of packaging,

10 processing and other nonlegal staff functions.

11 SEC. 503. MODIFICATION OF SMALL BUSINESS INVESTMENT

12 COMPANY DEBENTURE INTEREST RATES.

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

14 Small Business Administration is authorized to transfer to

15 the Federal Financing Bank such sums as may be necessary

16 to carry out the provisions of this section in order to reduce

17 the interest rate on a debenture issued by a Small Business

18 Investment Company under the provisions of title III of the

19 Small Business Investment Act of 1958. The reduction shall

20 be effective January 2, 1995 and shall apply for the remain21 der of the term of the debenture.

22 (b) INTEREST RATE MODIFICATION.—Upon receipt of

23 such payment, the Federal Financing Bank shall modify

24 the interest rate of each debenture for which the payment

25 is made. No other change shall be made in the terms and
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1 conditions of the debenture, and the modification in the in2 terest rate shall not be construed as a new direct loan or

3 a new loan guarantee.

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

5 term ‘‘issuer’’ means the issuer of a debenture pursuant to

6 section 303 of the Small Business Investment Act of 1958

7 which has been purchased by the Federal Financing Bank

8 if the debenture is outstanding on the date of enactment

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

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

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

12 affect any rights or options of the issuer which are otherwise

13 authorized by contract or by law.

14 SEC. 504. MODIFICATION OF SPECIALIZED SMALL BUSINESS

15 INVESTMENT COMPANY DEBENTURE INTER16 EST RATES.

17 (a) INTEREST RATE MODIFICATION.—Upon the re18 quest of the issuer, the Small Business Administration is

19 authorized to modify the interest rate on a debenture issued

20 by a Small Business Investment Company licensed under

21 the provisions of section 301(d) of the Small Business In22 vestment Act of 1958 and which is held by the Administra23 tion. No debenture which has been sold to a third party

24 shall be eligible for modification under this section. The re25 duction shall be effective January 2, 1995 and shall apply
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1 for the remainder of the term of the debenture. No other

2 change shall be made in the terms and conditions of the

3 debenture, and the modification in the interest rate shall

4 not be construed as a new direct loan or a new loan guaran5 tee.

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

7 term ‘‘issuer’’ means a Specialized Small Business Invest8 ment Company licensed under the provisions of section

9 301(d) of the Small Business Investment Act of 1958 which

10 has issued a debenture which has been funded by the Small

11 Business Administration, providing the debenture is out12 standing on the date of enactment of this Act and is not

13 in default on such date.

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

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

16 affect any rights or options of the issuer which are otherwise

17 authorized by contract or by law.

18 SEC. 505. INTEREST RATE REDUCTIONS.

19 (a) IN GENERAL.—Upon enactment of an Appropria20 tions Act providing funds to carry out the provisions of this

21 Act and limited to amounts specifically provided in ad22 vance in Appropriations Acts, the Small Business Adminis23 tration shall evaluate the outstanding portfolio of deben24 tures which are eligible for interest rate relief under this

25 Act. The Administration shall apply the funds appro-
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1 priated to carry out this Act in order to reduce the highest

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

3 (b) AUTHORIZATION.—There are authorized to be ap4 propriated $30 million to carry out the provisions of this

5 Act in fiscal year 1995.

6 TITLE VI—DEVELOPMENT OF

7 WOMEN-OWNED BUSINESSES

8 SEC. 601. STATUS OF COUNCIL.

9 Section 401 of the Women’s Business Ownership Act

10 of 1988 (15 U.S.C. 631 note) is redesignated as section 405

11 of such Act and, as redesignated, is amended—

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

13 COUNCIL’’ after ‘‘ESTABLISHMENT’’; and

14 (2) by striking the period at the end and insert15 ing the following: ‘‘which shall serve as an independ16 ent advisory council to the Interagency Committee on

17 Women’s Business Enterprise, to the Administrator of

18 the Small Business Administration, and to the Con19 gress of the United States. The Council, in order to

20 carry out its function as an independent advisory

21 council to the Congress, is authorized and directed to

22 report independently of the Interagency Committee

23 directly to the Congress at such times and on such

24 matters as it, in its discretion, deems appropriate.’’.
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1 SEC. 602. DUTIES OF NATIONAL WOMEN’S BUSINESS COUN2 CIL.

3 Section 402 of the Women’s Business Ownership Act

4 of 1988 (15 U.S.C. 631 note) is redesignated as section 406

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

6 follows:

7 ‘‘SEC. 406. DUTIES OF THE COUNCIL.

8 ‘‘The Council shall meet at such times as it determines

9 necessary in order to advise and consult with the Inter10 agency Committee on Women’s Business Enterprise on mat11 ters relating to the activities, functions, and policies of such

12 Committee as provided in this title. The Council shall make

13 annual recommendations for consideration by the Commit14 tee. The Council also shall provide reports and make such

15 other recommendations as it deems appropriate to the Com16 mittee, to the Administrator of the Small Business Admin17 istration, and to the Small Business Committee of the Unit18 ed States Senate and to the Small Business Committee of

19 the United States House of Representatives.’’.

20 SEC. 603. MEMBERSHIP OF THE COUNCIL.

21 Section 403 of the Women’s Business Ownership Act

22 of 1988 (15 U.S.C. 631 note) is redesignated as section 407

23 of such Act, and, as redesignated, is amended to read as

24 follows:
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1 ‘‘SEC. 407. MEMBERSHIP OF THE COUNCIL.

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

3 shall be appointed by the Administrator of the Small Busi4 ness Administration and who shall serve at the Administra5 tor’s discretion. In making the appointments, the Adminis6 trator shall include racial, geographic and economic diver7 sity, and representation from diverse sectors of the economy,

8 including manufacturing, high technology, services and

9 credit institutions, and shall give priority to include rep10 resentation of major women’s business organizations.

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

12 woman-owned business shall be eligible for appointment,

13 and not more than eight appointees shall be members of

14 the same political party. If any member of the Council sub15 sequently becomes an officer or employee of the Federal Gov16 ernment or of the Congress, such individual may continue

17 as a member of the Council for not longer than the thirty18 day period beginning on the date such individual becomes

19 such an officer or employee.

20 ‘‘(c) The Council annually shall select one member to

21 serve as its Chairperson. The Chairperson of the Council,

22 or her designee, shall be the representative of the Council

23 to all meetings of the Interagency Committee on Women’s

24 Business Enterprise.
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1 ‘‘(d) The Council shall meet not less than four times

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

3 at such times as she deems appropriate.

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

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

8 the Council, in the same manner as persons serving on ad9 visory boards pursuant to section 8(b) of the Small Business

10 Act.’’.

11 SEC. 604. INTERAGENCY COMMITTEE.

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

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

14 404 and by inserting the following new sections prior to

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

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

17 ‘‘There is established an Interagency Committee to be

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

19 Enterprise’ (hereinafter in this title referred to as the Com20 mittee).

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

22 ‘‘The Committee shall—

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

24 programs and operations of the departments and

25 agencies of the Federal Government which may con-
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1 tribute to the establishment, preservation and

2 strengthening of women’s business enterprise. It may,

3 as appropriate, develop comprehensive interagency

4 plans and specific program goals for women’s busi5 ness enterprise with the cooperation of Federal de6 partments and agencies;

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

9 business and trade associations, private industry, col10 leges and universities, foundations, professional orga11 nizations, and volunteer and women’s business enter12 prise, and facilitate the coordination of the efforts of

13 these groups with those of Federal departments and

14 agencies;

15 ‘‘(3) consult with the Council to develop and pro16 mote new initiatives designed to foster women’s busi17 ness enterprise, and to develop policies, programs,

18 and plans intended to promote such development;

19 ‘‘(4) consider the Council’s recommendations and

20 public and private sector studies of the problems of

21 women entrepreneurs, and promote further research

22 into such problems; and

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

24 public-private sector effort to facilitate the develop25 ment and growth of women-owned businesses. The
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1 Committee should submit the plan to the President for

2 review within six months of the effective date of this

3 Act.

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

5 ‘‘(a) The Committee shall be composed of representa6 tives of the following departments and agencies: The De7 partments of Agriculture, Commerce, Defense, Energy,

8 Health and Human Services, Education, Housing and

9 Urban Development, Interior, Justice, Labor, Transpor10 tation, Treasury, the Federal Trade Commission, General

11 Services Administration, National Science Foundation, Of12 fice of Federal Procurement Policy, and the Director of the

13 Office of Women’s Business Ownership of the Small Busi14 ness Administration, who shall serve as Vice Chairperson

15 of the Committee. The head of each such department and

16 agency shall designate a representative who shall be a policy

17 making official within the department or agency.

18 ‘‘(b) The Committee shall have a Chairperson ap19 pointed by the President, after consultation with the Ad20 ministrator of the Small Business Administration and the

21 Chief Counsel for Advocacy of the Small Business Adminis22 tration. The Chairperson shall be the head of a Federal de23 partment or agency. If the Chairperson is the head of one

24 of the departments or agencies enumerated in subsection
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1 (a), he or she shall also serve as the representative of such

2 department or agency.

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

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

5 at such times as he or she deems appropriate.

6 ‘‘(d) The members of the Committee shall serve without

7 additional pay for such membership.

8 ‘‘(e) The Chairperson of the Committee may designate

9 a Director of the Committee, after consultation with the Ad10 ministrator of the Small Business Administration and the

11 Chief Counsel for Advocacy of the Small Business Adminis12 tration.

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

14 appoint to his staff under the provisions of section 204 of

15 Public Law 94–305 (15 U.S.C. 634(d)) the person so des16 ignated under subsection (e). He or she is also authorized

17 to provide additional staff and administrative support for

18 the Committee.

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

20 Ownership of the Small Business Administration is author21 ized to provide additional staff and administrative support

22 for the Committee.

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

24 ‘‘The Committee shall transmit to the President and

25 to the Small Business Committee of the United States Sen-
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1 ate and to the Small Business Committee of the United

2 States House of Representatives a report no less than once

3 in every twelve-month period. The first such report shall

4 be submitted no later than March 31, 1995. Such reports

5 shall contain any recommendations from the Council and

6 any comments of the Committee thereon, a detailed state7 ment on the activities of the Committee, the findings and

8 conclusions of the Committee, together with its rec9 ommendations for such legislation and administrative ac10 tions as it considers appropriate to promote the develop11 ment of small business concerns owned and controlled by

12 women.’’.

13 SEC. 605. REPEALER.

14 Sections 404 through 407 of the Women’s Business

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

16 date of the enactment of this Act, are repealed and the fol17 lowing new section is added at the end of title IV of such

18 Act:

19 ‘‘SEC. 408. DEFINITIONS.

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

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

22 business which is at least 51 percent owned by a

23 woman or women who also control and operate it;

24 ‘‘(2) ‘control’ shall mean exercising the power to

25 make policy decisions;
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1 ‘‘(3) ‘operate’ shall mean being actively involved

2 in the day-to-day management; and

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

4 woman-owned business or businesses or the efforts of

5 a woman or women to establish, maintain, or develop

6 such a business or businesses.’’.

7 SEC. 606. EXTENSION OF AUTHORITY FOR DEMONSTRATION

8 PROJECTS.

9 Section 28 of the Small Business Act, as added by sec10 tion 2 of Public Law 102–191, is redesignated as section

11 29 and, as so redesignated, is amended by striking from

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

13 SEC. 607. ESTABLISHMENT OF OFFICE OF WOMEN’S BUSI14 NESS OWNERSHIP.

15 Section 29 of the Small Business Act, as redesignated

16 by section 606 of this Act, is amended by adding the follow17 ing new subsection at the end:

18 ‘‘(h) There is established within the Administration an

19 Office of Women’s Business Ownership, which shall be re20 sponsible for the administration of the Administration’s

21 programs for the development of women’s business enter22 prises as defined in section 408 of the Women’s Business

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

24 director who shall be appointed by the Administrator.’’.
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1 SEC. 608. TECHNICAL AND CONFORMING AMENDMENTS.

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

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

4 amended to read as follows:

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

‘‘Sec. 401. Establishment of the Committee.

‘‘Sec. 402. Duties of the Committee.

‘‘Sec. 403. Membership of the Committee.

‘‘Sec. 404. Reports from the Committee.

‘‘Sec. 405. Establishment of the Council.

‘‘Sec. 406. Duties of the Council.

‘‘Sec. 407. Membership of the Council.

‘‘Sec. 408. Definitions.’’.

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

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

7 to read as follows:

8 ‘‘TITLE IV—DEVELOPMENT OF WOMEN’S

9 BUSINESS ENTERPRISES’’.

10 SEC. 609. AUTHORIZATION.

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

12 each of fiscal years 1995 through 1997 to carry out the pro13 visions of title IV of the Women’s Business Ownership Act

14 of 1988 (15 U.S.C. 631 note).

15 TITLE VII—MISCELLANEOUS

16 AMENDMENTS

17 SEC. 701. HANDICAPPED PARTICIPATION IN SMALL BUSI18 NESS SET ASIDE CONTRACTS.

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

20 644(c)) is amended—
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1 (1) by amending paragraph (2)(A) to read as

2 follows:

3 ‘‘(2)(A) During each fiscal year, public or private or4 ganizations for the handicapped shall be eligible to partici5 pate in programs authorized under this section in an aggre6 gate amount not to exceed $50,000,000.’’; and

7 (2) by adding the following new paragraph at

8 the end thereof:

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

10 pursuant to the provisions of this subsection may be ex11 tended for up to two additional years.’’.

12 SEC. 702. SBA INTEREST PAYMENTS TO TREASURY.

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

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

15 ‘‘(ii) The Administration shall pay into the mis16 cellaneous receipts of the Treasury following the close of

17 each fiscal year the actual interest it collects during that

18 fiscal year on all financings made under the authority of

19 this Act.’’.

20 SEC. 703. IMPOSITION OF FEES.

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

22 634(b)) is amended—

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

24 end;
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1 (2) in paragraph (11) by striking the period at

2 the end and inserting a semicolon; and

3 (3) by adding the following new paragraphs at

4 the end:

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

6 which are specifically authorized by law or which are

7 in effect on September 30, 1994, and in the amounts

8 and at the rates in effect on such date. The adminis9 trator is authorized to impose, retain and utilize, sub10 ject to approval in appropriations Acts, the following

11 additional fees—

12 ‘‘(A) not to exceed $100 for each loan servic13 ing action requested after disbursement of the

14 loan, including substitution of collateral, loan

15 assumptions, release or substitution of guaran16 tors, reamortizations or similar actions;

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

18 involved in the production and dissemination of

19 compilations of information produced by the Ad20 ministration under the authority of the Small

21 Business Act and the Small Business Investment

22 Act of 1958; and

23 ‘‘(13) to collect, retain and utilize, subject to ap24 proval in appropriations Acts, any amounts collected

25 by fiscal transfer agents and not used by such agent
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1 as payment of the cost of loan pooling or debenture

2 servicing operations: Provided, That any monies so

3 collected shall be utilized solely to facilitate the ad4 ministration of the program which generated the ex5 cess monies.’’.

6 SEC. 704. SBIR VENDORS.

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

8 638(q)(2)) is amended to read as follows:

9 ‘‘(2) VENDOR SELECTION.—Each agency may se10 lect a vendor to assist small business concerns to meet

11 the goals listed in paragraph (1). Such selection shall

12 be competitive using merit-based criteria, for a term

13 not to exceed 3 years.’’.

14 SEC. 705. MANUFACTURING CONTRACTS.

15 (a) ESTABLISHMENT OF PILOT PROGRAM.—Section 15

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

17 adding at the end the following:

18 ‘‘(p) MANUFACTURING MODERNIZATION PILOT PRO19 GRAM.—

20 ‘‘(1) ESTABLISHMENT.—The Administrator may

21 establish and carry out a manufacturing moderniza22 tion pilot program (hereinafter in this section referred

23 to as the ‘program’) for the purpose of promoting the

24 award of Federal procurement contracts to small

25 business concerns that participate in manufacturing
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1 application and education centers that are established

2 or certified pursuant to paragraph (2).

3 ‘‘(2) MANUFACTURING APPLICATION AND EDU4 CATION CENTERS.—The Administrator may establish

5 manufacturing application and education centers

6 which will provide training to small business con7 cerns on new and innovative manufacturing practices

8 in a shared-use production environment and which

9 will assist such concerns in carrying out Federal pro10 curement contracts for the manufacture of components

11 and subsystems. The Administrator may also certify

12 existing manufacturing application and education

13 centers for participation in the program.

14 ‘‘(3) USE OF PRIVATE CENTERS AS EXAMPLES.—

15 In establishing any manufacturing application and

16 education centers pursuant to paragraph (2), the Ad17 ministrator may use as examples manufacturing ap18 plication and education centers in the private sector

19 that provide the following services: technology dem20 onstration, technology education, technology applica21 tion support, technology advancement support, and

22 technology awareness.

23 ‘‘(4) IDENTIFICATION OF CONTRACTS.—The Ad24 ministrator and the head of a contracting agency

25 may identify for additional small business set-asides
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1 pursuant to subsection (a) any procurement, and in

2 particular any procurement which is being foreign3 sourced or is considered critical, which is susceptible

4 to performance by a small business concern if the con5 cern is assisted by a manufacturing application and

6 education center under the program. Any such pro7 curement shall be subject to the requirements of sub8 section (a), including requirements relating to any

9 failure of the Administrator and the head of the con10 tracting agency to agree on procurement methods.

11 ‘‘(5) NONAPPLICABILITY OF PERFORMANCE RE12 QUIREMENT.—The requirement of subsection (o)(1)(B)

13 shall not apply with respect to any contract carried

14 out by a small business concern under the program

15 with the assistance of a manufacturing application

16 and education center.

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

18 after the date of the enactment of this subsection, the

19 Administrator shall issue regulations to carry out this

20 subsection if he determines it appropriate to carry

21 out the program authorized by this subsection.

22 ‘‘(7) REPORTS.—

23 ‘‘(A) PROGRESS REPORT.—Not later than 3

24 months after the last day of the fiscal year in

25 which final regulations are issued pursuant to
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1 paragraph (6), the Administrator shall transmit

2 to the Committees on Small Business of the

3 House of Representatives and the Senate a report

4 on the progress of the program.

5 ‘‘(B) FINAL REPORT.—If the Administrator

6 establishes the program authorized herein, not

7 later than March 31, 1999, he shall transmit to

8 the Committees on Small Business of the House

9 of Representatives and the Senate a report on the

10 success of the program in—

11 ‘‘(i) enabling deployment of technology

12 to small business concerns participating in

13 the program, and

14 ‘‘(ii) assisting manufacturing applica15 tion and education centers in achieving self16 sufficiency,

17 together with recommendations concerning con18 tinuation, modification, or discontinuance of the

19 program.

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

21 carry out the program during the period beginning

22 on the date of issuance of final regulations under

23 paragraph (5) and ending on September 30, 1999.
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1 ‘‘(9) AUTHORIZATION OF APPROPRIATIONS.—

2 There are authorized to be appropriated such sums as

3 may be necessary to carry out this subsection.’’.

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

5 LAWFULLY WITHIN THE UNITED STATES.

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

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

8 304 of this Act, the following:

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

10 LAWFULLY WITHIN THE UNITED STATES.

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

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

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

14 known to the Administrator of the Small Business Adminis15 tration or the official to which the funds are made available

16 that the individual is not lawfully within the United

17 States.’’.

18 SEC. 707. OFFICE OF ADVOCACY EMPLOYEES.

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

20 is amended as follows—

21 (1) by striking ‘‘after consultation with and sub22 ject to the approval of the Administrator,’’; and

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

24 General Schedule’’ and all that follows and inserting

25 ‘‘GS–15 of the General Schedule: Provided, however,
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1 That not more than 14 staff personnel at any one

2 time may be employed and compensated at a rate in

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

4 SEC. 708. ADVOCACY STUDY OF PAPERWORK AND TAX IM5 PACT.

6 The Chief Counsel for Advocacy of the Small Business

7 Administration shall conduct a study of the impact of all

8 Federal regulatory paperwork and tax requirements upon

9 small business and report its findings to the Congress with10 in 1 year of the date of the enactment of this Act.

11 SEC. 709. CERTIFICATION OF COMPLIANCE WITH CHILD

12 SUPPORT OBLIGATIONS.

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

14 amended by inserting after section 31, as added by section

15 706 of this Act, the following:

16 ‘‘SEC. 32. CERTIFICATION OF COMPLIANCE WITH CHILD

17 SUPPORT OBLIGATIONS.

18 ‘‘Each applicant for financial assistance under this

19 Act, including applicants for direct loans and loan guaran20 tees, shall certify, as a condition for receiving such assist21 ance, that the applicant is not in violation of the terms

22 of any administrative order, court order, or repayment

23 agreement entered into between the applicant and the custo24 dial parent or the State agency providing child support en25 forcement services which requires the applicant to pay child
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1 support, as such term is defined by section 462(b) of the

2 Social Security Act.’’.

Amend the title so as to read: ‘‘An Act to amend the

Small Business Act, and for other purposes.’’.

Attest:

Clerk.
103D CONGRESS

2D SESSION S. 2060

AMENDMENTS