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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5352 Introduced in House (IH)]

109th CONGRESS
  2d Session
                                H. R. 5352

  To reauthorize programs to assist small business concerns, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2006

 Mr. Manzullo introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL

 
  To reauthorize programs to assist small business concerns, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Reauthorization Act of 2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                        TITLE I--AUTHORIZATIONS

Sec. 101. Section 20 reauthorizations.
Sec. 102. Reauthorizations for certain Small Business Act programs.
Sec. 103. Reauthorizations for certain other programs.
                           TITLE II--FINANCE

           Subtitle A--Certified Development Company Program

Sec. 201. Short title; definition.
Sec. 202. Development Company Loan Programs.
Sec. 203. Loan liquidations.
Sec. 204. Additional equity injections.
Sec. 205. Businesses in low-income areas.
Sec. 206. Combinations of certain goals.
Sec. 207. Maximum 504 and 7(a) loan eligibility.
Sec. 208. Refinancing.
Sec. 209. Fees.
Sec. 210. Technical correction.
Sec. 211. Small Business Investment Act definition.
Sec. 212. Repeal of sunset on reserve requirements for premier 
                            certified lenders.
Sec. 213. Eligibility of development companies to be designated as 
                            certified development companies and 
                            authority to issue debentures; and 
                            providing an area of operational authority, 
                            funding restrictions, and ethical 
                            requirements.
Sec. 214. Conforming amendments.
Sec. 215. Closing costs.
Sec. 216. Definition of rural.
Sec. 217. Regulations and effective date.
             Subtitle B--Small Business Lending Improvement

Sec. 221. Short title.
Sec. 222. National preferred lenders program.
Sec. 223. Maximum loan amount.
Sec. 224. Alternative size standard.
Sec. 225. Timely payment of 7(a) secondary market fee.
                 Subtitle C--Small Business Investment

Sec. 241. Participating Security Small Business Investment Companies.
                      TITLE III--ENTREPRENEURSHIP

       Subtitle A--National Small Business Regulatory Assistance

Sec. 301. Short title.
Sec. 302. Purpose.
Sec. 303. Definitions.
Sec. 304. Small business regulatory assistance program.
Sec. 305. Promulgation of regulations.
   Subtitle B--Vocational and Technical Entrepreneurship Development

Sec. 311. Short title.
Sec. 312. Vocational and technical entrepreneurship development 
                            program.
         Subtitle C--Native American Small Business Development

Sec. 321. Findings and purposes.
Sec. 322. Small Business Development Center assistance to Indian tribe 
                            members, Alaska Natives, and Native 
                            Hawaiians.
Sec. 323. State consultation with tribal organizations.
          Subtitle D--Second-Stage Small Business Development

Sec. 331. Short title.
Sec. 332. Purpose.
Sec. 333. Pilot program.
Sec. 334. Regulations.
Sec. 335. Definitions.
Sec. 336. Authorization of appropriations.
                      Subtitle E--Trade Provisions

Sec. 341. Establishment of Associate Administrator for International 
                            Trade in Small Business Administration.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Small business disaster loans.
Sec. 402. Disaster loans for incidents of national significance.
Sec. 403. Small Business Development Center Portability Grants.
Sec. 404. Assistance to out-of-state businesses.
Sec. 405. Elimination of unnecessary programs.
Sec. 406. Technical correction.
Sec. 407. Combating waste, fraud, and abuse.
Sec. 408. Relief available against Administrator.
Sec. 409. Economic injury disaster loans to nonprofits.
Sec. 410. Extension of co-sponsorship authority.
Sec. 411. Regulations on size standards of franchisees.
Sec. 412. District Directors prohibited from being involved in 
                            selection of SBDC directors.

                        TITLE I--AUTHORIZATIONS

SEC. 101. SECTION 20 REAUTHORIZATIONS.

    Section 20 of the Small Business Act (15 U.S.C. 647) is amended by 
inserting after subsection (e) the following new subsections:
    ``(f) Fiscal Year 2007.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2007:
                    ``(A) For the programs authorized by this Act, the 
                Administrator is authorized to make--
                            ``(i) $80,000,000 in technical assistance 
                        grants, as provided in section 7(m); and
                            ``(ii) $110,000,000 in direct loans, as 
                        provided in section 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administrator is authorized to make $27,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administrator is authorized to make--
                            ``(i) $18,000,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $8,500,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) and as provided in section 504 
                        of the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administrator is authorized to make--
                            ``(i) $300,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $4,000,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administrator is authorized to enter into 
                guarantees not to exceed $6,500,000,000, of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administrator is authorized to make 
                grants or enter into cooperative agreements for a total 
                amount of $7,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to 
                the Administrator for fiscal year 2007 such sums as may 
                be necessary to carry out the provisions of this Act 
                not elsewhere provided for, including administrative 
                expenses and necessary loan capital for disaster loans 
                pursuant to section 7(b), and to carry out the Small 
                Business Investment Act of 1958, including salaries and 
                expenses of the Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2007--
                            ``(i) no funds are authorized to be used as 
                        loan capital for the loan program authorized by 
                        section 7(a)(21) except by transfer from 
                        another Federal department or agency to the 
                        Administration, unless the program level 
                        authorized for general business loans under 
                        paragraph (1)(B)(i) is fully funded; and
                            ``(ii) the Administration may not approve 
                        loans on its own behalf or on behalf of any 
                        other Federal department or agency, by contract 
                        or otherwise, under terms and conditions other 
                        than those specifically authorized under this 
                        Act or the Small Business Investment Act of 
                        1958, except that it may approve loans under 
                        section 7(a)(21) of this Act in gross amounts 
                        of not more than $2,000,000.
    ``(g) Fiscal Year 2008.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2008:
                    ``(A) For the programs authorized by this Act, the 
                Administrator is authorized to make--
                            ``(i) $80,000,000 in technical assistance 
                        grants, as provided in section 7(m); and
                            ``(ii) $110,000,000 in direct loans, as 
                        provided in section 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administrator is authorized to make $29,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administrator is authorized to make--
                            ``(i) $19,000,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $9,500,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) and as provided in section 504 
                        of the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administrator is authorized to make--
                            ``(i) $300,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $4,000,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administrator is authorized to enter into 
                guarantees not to exceed $7,000,000,000, of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administrator is authorized to make 
                grants or enter into cooperative agreements for a total 
                amount of $8,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to 
                the Administrator for fiscal year 2008 such sums as may 
                be necessary to carry out the provisions of this Act 
                not elsewhere provided for, including administrative 
                expenses and necessary loan capital for disaster loans 
                pursuant to section 7(b), and to carry out the Small 
                Business Investment Act of 1958, including salaries and 
                expenses of the Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2008--
                            ``(i) no funds are authorized to be used as 
                        loan capital for the loan program authorized by 
                        section 7(a)(21) except by transfer from 
                        another Federal department or agency to the 
                        Administration, unless the program level 
                        authorized for general business loans under 
                        paragraph (1)(B)(i) is fully funded; and
                            ``(ii) the Administrator may not approve 
                        loans on its own behalf or on behalf of any 
                        other Federal department or agency, by contract 
                        or otherwise, under terms and conditions other 
                        than those specifically authorized under this 
                        Act or the Small Business Investment Act of 
                        1958, except that it may approve loans under 
                        section 7(a)(21) of this Act in gross amounts 
                        of not more than $2,000,000.
    ``(h) Fiscal Year 2009.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2009:
                    ``(A) For the programs authorized by this Act, the 
                Administrator is authorized to make--
                            ``(i) $80,000,000 in technical assistance 
                        grants, as provided in section 7(m); and
                            ``(ii) $110,000,000 in direct loans, as 
                        provided in section 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administrator is authorized to make $31,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administrator is authorized to make--
                            ``(i) $20,000,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $10,500,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) and as provided in section 504 
                        of the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administrator is authorized to make--
                            ``(i) $300,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $4,000,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administrator is authorized to enter into 
                guarantees not to exceed $7,500,000,000, of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administrator is authorized to make 
                grants or enter into cooperative agreements for a total 
                amount of $9,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to 
                the Administrator for fiscal year 2009 such sums as may 
                be necessary to carry out the provisions of this Act 
                not elsewhere provided for, including administrative 
                expenses and necessary loan capital for disaster loans 
                pursuant to section 7(b), and to carry out the Small 
                Business Investment Act of 1958, including salaries and 
                expenses of the Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2009--
                            ``(i) no funds are authorized to be used as 
                        loan capital for the loan program authorized by 
                        section 7(a)(21) except by transfer from 
                        another Federal department or agency to the 
                        Administration, unless the program level 
                        authorized for general business loans under 
                        paragraph (1)(B)(i) is fully funded; and
                            ``(ii) the Administrator may not approve 
                        loans on its own behalf or on behalf of any 
                        other Federal department or agency, by contract 
                        or otherwise, under terms and conditions other 
                        than those specifically authorized under this 
                        Act or the Small Business Investment Act of 
                        1958, except that it may approve loans under 
                        section 7(a)(21) of this Act in gross amounts 
                        of not more than $2,000,000.
    ``(i) Fiscal Year 2010.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2010:
                    ``(A) For the programs authorized by this Act, the 
                Administrator is authorized to make--
                            ``(i) $80,000,000 in technical assistance 
                        grants, as provided in section 7(m); and
                            ``(ii) $110,000,000 in direct loans, as 
                        provided in section 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administrator is authorized to make $33,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                            ``(i) $21,000,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $11,500,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) and as provided in section 504 
                        of the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administrator is authorized to make--
                            ``(i) $300,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $4,000,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administrator is authorized to enter into 
                guarantees not to exceed $8,000,000,000, of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administrator is authorized to make 
                grants or enter into cooperative agreements for a total 
                amount of $10,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to 
                the Administrator for fiscal year 2010 such sums as may 
                be necessary to carry out the provisions of this Act 
                not elsewhere provided for, including administrative 
                expenses and necessary loan capital for disaster loans 
                pursuant to section 7(b), and to carry out the Small 
                Business Investment Act of 1958, including salaries and 
                expenses of the Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2010--
                            ``(i) no funds are authorized to be used as 
                        loan capital for the loan program authorized by 
                        section 7(a)(21) except by transfer from 
                        another Federal department or agency to the 
                        Administration, unless the program level 
                        authorized for general business loans under 
                        paragraph (1)(B)(i) is fully funded; and
                            ``(ii) the Administrator may not approve 
                        loans on its own behalf or on behalf of any 
                        other Federal department or agency, by contract 
                        or otherwise, under terms and conditions other 
                        than those specifically authorized under this 
                        Act or the Small Business Investment Act of 
                        1958, except that it may approve loans under 
                        section 7(a)(21) of this Act in gross amounts 
                        of not more than $2,000,000.''.

SEC. 102. REAUTHORIZATIONS FOR CERTAIN SMALL BUSINESS ACT PROGRAMS.

    (a) Small Business Development Center Program.--Section 21 of the 
Small Business Act (15 U.S.C. 648) is amended in subsection 
(a)(4)(C)(vii)--
            (1) in subclause (I) by striking ``and'' at the end;
            (2) in subclause (II) by striking the period at the end; 
        and
            (3) by adding at the end the following:
                                    ``(III) $135,000,000 for fiscal 
                                year 2007; and
                                    ``(IV) $114,000,000 for each of 
                                fiscal years 2008 through 2010.''.
    (b) Disaster Mitigation Pilot Program.--
            (1) In general.--Section 7 of the Small Business Act (15 
        U.S.C. 636) is amended in subsection (b)(1)(C) by striking 
        ``2000 through 2004'' and inserting ``2007 through 2010''.
            (2) Authorization levels.--Section 20 of the Small Business 
        Act (15 U.S.C. 631 note) is amended in subsection (c) by 
        striking the colon and all that follows through the period at 
        the end and inserting ``: $15,000,000 for each of fiscal years 
        2007 through 2010.''.
    (c) Microloan Program Supplemental Grants.--Section 7 of the Small 
Business Act (15 U.S.C. 636) is amended in subsection (m)(4)(F)(ii) by 
striking ``not more than 20'' and all that follows through the period 
at the end and inserting ``not more than 30 grantees in each of fiscal 
years 2007 through 2010, each of whom may receive a grant under this 
subparagraph in an amount not to exceed $150,000 per year.''.
    (d) Microloan Program Deferred Participation Loan Pilot.--Section 7 
of the Small Business Act (15 U.S.C. 636) is amended in subsection 
(m)(12) by striking ``1998 through 2000'' and inserting ``2007 through 
2010''.
    (e) Business Grants and Cooperative Agreements.--Section 8 of the 
Small Business Act (15 U.S.C. 637) is amended in subsection (n)(3) by 
striking ``2006'' and inserting ``2010''.
    (f) Paul D. Coverdell Drug-Free Workplace Program.--Section 27 of 
the Small Business Act (15 U.S.C. 654) is amended in subsection (g), in 
each of paragraphs (1), (2), and (3), by striking ``2006'' and 
inserting ``2010''.
    (g) Women's Business Center Program.--Section 29 of the Small 
Business Act (15 U.S.C. 656) is amended--
            (1) in subsection (k)(1) by striking subparagraphs (A) 
        through (D) and inserting the following:
                    ``(A) $16,500,000 for fiscal year 2007;
                    ``(B) $16,750,000 for fiscal year 2008;
                    ``(C) $17,000,000 fiscal year 2009; and
                    ``(D) $17,250,000 for fiscal year 2010.'';
            (2) in subsection (k)(2)(B) by striking ``oversight'' and 
        all that follows through the period at the end and inserting 
        ``oversight: 1.4 percent for each of fiscal years 2007 through 
        2010.''; and
            (3) in subsection (k)(4)(A) by striking clauses (i) through 
        (iv) and inserting the following:
                            ``(i) For fiscal year 2007, 48 percent.
                            ``(ii) For fiscal year 2008, 42 percent.
                            ``(iii) For fiscal year 2009, 36 percent.
                            ``(iv) For fiscal year 2010, 30 percent.''.
    (h) Hubzone Program.--Section 31 of the Small Business Act (15 
U.S.C. 657a) is amended in subsection (d) by striking ``2006'' and 
inserting ``2010''.
    (i) Veterans Programs.--Section 32 of the Small Business Act (15 
U.S.C. 657b) is amended in subsection (c) by striking ``to carry out 
this section'' and all that follows through the period at the end and 
inserting ``to carry out this section $2,000,000 for each of fiscal 
years 2006 through 2010.''.
    (j) National Veterans Business Development Corporation.--Section 33 
of the Small Business Act (15 U.S.C. 657c) is amended--
            (1) in subsection (k)(1), by striking subparagraphs (A) 
        through (D) and inserting the following:
                    ``(A) $1,500,000 for fiscal year 2007;
                    ``(B) $1,000,000 for fiscal year 2008; and
                    ``(C) $500,000 for fiscal year 2009.''; and
            (2) in subsection (k)(2)(B) by striking ``fiscal year 2003 
        or 2004'' and inserting ``any fiscal year after 2002''.
    (k) Federal and State Technology Partnership (FAST) Program.--
Section 34 of the Small Business Act (15 U.S.C. 657d) is amended--
            (1) in subsection (h)(1) by striking ``2001 through 2005'' 
        and inserting ``2007 through 2010''; and
            (2) in subsection (i) by striking ``September 30, 2005'' 
        and inserting ``September 30, 2010''.

SEC. 103. REAUTHORIZATIONS FOR CERTAIN OTHER PROGRAMS.

    (a) New Markets Venture Capital Program.--Section 368 of the Small 
Business Investment Act of 1958 (15 U.S.C. 689q) is amended in 
subsection (a) by striking ``2001 through 2006'' and inserting ``2007 
through 2010''.
    (b) Pilot Program for Very Small Business Concerns.--Section 304 of 
the Small Business Administration Reauthorization and Amendments Act of 
1994 (15 U.S.C. 644 note) is amended in subsection (i) by striking 
``2003'' and inserting ``2010''.

                           TITLE II--FINANCE

           Subtitle A--Certified Development Company Program

SEC. 201. SHORT TITLE; DEFINITION.

    (a) Short Title.--This subtitle may be cited as the ``Certified 
Development Company Program Act''.
    (b) Definition.--In this subtitle, the term ``Administrator'' means 
the Administrator of the Small Business Administration.

SEC. 202. DEVELOPMENT COMPANY LOAN PROGRAMS.

    Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 
et seq.) is amended by inserting before section 501 the following:

``SEC. 500. PROGRAM TITLE.

    ``The programs authorized by this title shall be known as the 
`Certified Development Company Program'.''.

SEC. 203. LOAN LIQUIDATIONS.

    Section 510 of the Small Business Investment Act of 1958 (15 U.S.C. 
697g) is amended--
            (1) by redesignating subsection (e) as subsection (g); and
            (2) by inserting after subsection (d) the following:
    ``(e) Participation.--
            ``(1) In general.--Any certified development company which 
        elects not to apply for authority to foreclose and liquidate 
        defaulted loans under this section, or which the Administrator 
        determines to be ineligible for such authority, shall contract 
        with a qualified third party to perform foreclosure and 
        liquidation of defaulted loans in its portfolio. The contract 
        shall be contingent upon approval by the Administrator with 
        respect to the qualifications of the contractor and the terms 
        and conditions of liquidation activities.
            ``(2) Commencement.--The provisions of this subsection 
        shall not require any certified development company to 
        liquidate defaulted loans until the Administrator has adopted 
        and implemented a program to compensate and reimburse certified 
        development companies, as provided under subsection (f).
    ``(f) Compensation and Reimbursement.--
            ``(1) Reimbursement of expenses.--
                    ``(A) In general.--The Administrator shall 
                reimburse each certified development company for all 
                expenses paid by such company as part of the 
                foreclosure and liquidation activities, if the 
                expenses--
                            ``(i) were specifically approved in advance 
                        by the Administrator, in which case the 
                        reimbursement shall be made within 30 days 
                        after reimbursement is requested;
                            ``(ii) were derived from a contract 
                        described in subsection (e)(1) that was 
                        approved in advance by the Administrator under 
                        subsection (e)(1), in which case the 
                        reimbursement shall be made within 30 days 
                        after reimbursement is requested; or
                            ``(iii) were incurred by the certified 
                        development company on an emergency basis and 
                        the expenses were reasonable and appropriate, 
                        in which case the reimbursement shall be made 
                        within 30 days after the expenses are 
                        determined to be reasonable and appropriate.
                    ``(B) Determination.--A determination whether 
                expenses are reasonable and appropriate shall be made 
                by the Administrator within 30 days after reimbursement 
                is requested for those expenses.
            ``(2) Compensation for results.--The Administrator shall 
        develop a schedule to compensate and provide an incentive to 
        certified development companies that foreclose and liquidate 
        defaulted loans. The schedule shall be based on a percentage of 
        the net amount recovered, but shall not exceed a maximum 
        amount. The schedule shall not apply to any foreclosure which 
        is conducted pursuant to a contract between a certified 
        development company and a qualified third party to perform the 
        foreclosure and liquidation.''.

SEC. 204. ADDITIONAL EQUITY INJECTIONS.

    Section 502(3)(B)(ii) of the Small Business Investment Act of 1958 
(15 U.S.C. 696(3)(B)(ii)) is amended to read as follows:
                            ``(ii) Funding from institutions.--If a 
                        small business concern--
                                    ``(I) provides the minimum 
                                contribution required under 
                                subparagraph (C), not less than 50 
                                percent of the cost of the project 
                                shall be provided by institutions 
                                described in subclauses (I), (II), and 
                                (III) of clause (i); and
                                    ``(II) provides more than the 
                                minimum contribution required under 
                                subparagraph (C), any excess 
                                contribution may be used to reduce the 
                                amount required from the institutions 
                                described in subclauses (I), (II), and 
                                (III) of clause (i), except that the 
                                amount from such institutions may not 
                                be reduced to an amount that is less 
                                than the amount of the loan made by the 
                                Administrator.''.

SEC. 205. BUSINESSES IN LOW-INCOME AREAS.

    Section 501(d)(3)(A) of the Small Business Investment Act of 1958 
(15 U.S.C. 695(d)(3)(A)) is amended by inserting after ``business 
district revitalization,'' the following: ``or expansion of businesses 
in low-income communities as described in section 45D(e) of the 
Internal Revenue Code of 1986, or implementing regulations issued 
thereunder,''.

SEC. 206. COMBINATIONS OF CERTAIN GOALS.

    Section 501(e) of the Small Business Investment Act of 1958 (15 
U.S.C. 695(e)) is amended by adding at the end the following:
            ``(7) A small business concern that is unconditionally 
        owned by more than 1 individual, or a corporation, the stock of 
        which is owned by more than 1 individual, shall be deemed to 
        have achieved a public policy goal required under subsection 
        (d)(3) if a combined ownership share of not less than 51 
        percent is held by individuals who are in 1 of the groups 
        described in subparagraph (C) or (E) of subsection (d)(3).''.

SEC. 207. MAXIMUM 504 AND 7(A) LOAN ELIGIBILITY.

    Section 502(2) of the Small Business Investment Act of 1958 (15 
U.S.C. 696(2)) is amended by adding at the end the following:
                    ``(C) Combination financing.--Notwithstanding any 
                other provision of law, financing under this title may 
                be provided to a borrower in the maximum amount 
                provided in this subsection, and a loan guarantee under 
                section 7(a) of the Small Business Act may be provided 
                to the same borrower in the maximum amount provided in 
                section 7(a)(3)(A) of such Act, to the extent that the 
                borrower otherwise qualifies for such assistance.''.

SEC. 208. REFINANCING.

    Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 
696) is amended by adding at the end the following:
            ``(7) Permissible debt refinancing.--
                    ``(A) In general.--Any financing approved under 
                this title may include a limited amount of debt 
                refinancing.
                    ``(B) Expansions.--If the project involves 
                expansion of a small business concern which has 
                existing indebtedness collateralized by fixed assets, 
                any amount of existing indebtedness that does not 
                exceed one-half of the project cost of the expansion 
                may be refinanced and added to the expansion cost, 
                providing that--
                            ``(i) the proceeds of the indebtedness were 
                        used to acquire land, including a building 
                        situated thereon, to construct a building 
                        thereon, or to purchase equipment;
                            ``(ii) the borrower has been current on all 
                        payments due on the existing debt for at least 
                        the preceding year;
                            ``(iii) the financing under section 504 
                        will provide better terms or rate of interest 
                        than exists on the debt at the time of 
                        refinancing; and
                            ``(iv) the existing indebtedness was not 
                        financed under the Small Business Act or this 
                        Act.''.

SEC. 209. FEES.

    (a) In General.--Section 503(d) of the Small Business Investment 
Act of l958 (15 U.S.C. 697(d)) is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraph (3) as paragraph (2); and
            (3) in paragraph (2), as so redesignated, by striking 
        ``0.125 percent'' and inserting ``0.155 percent''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect and apply to loans under section 503(d) of the Small 
Business Investment Act of l958 (15 U.S.C. 697(d)) approved on or after 
30 days after the date of enactment of this Act.
    (c) Recomputation.--Notwithstanding any other provision of law, the 
Administrator shall recalculate the amount of the fee paid by the 
borrower under section 503(b)(7) of the Small Business Investment Act 
of 1958 in order that the cost of making guarantees under Title V of 
the Small Business Investment Act of 1958 remains at zero for each 
fiscal year after the effective date of the amendments to the Small 
Business Investment Act of 1958 made by this Act.

SEC. 210. TECHNICAL CORRECTION.

    Section 501(e)(2) of the Small Business Investment Act of 1958 (15 
U.S.C. 695(e)(2)) is amended by striking ``outstanding''.

SEC. 211. SMALL BUSINESS INVESTMENT ACT DEFINITION.

    Section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 
662) is amended by striking paragraph (6) and inserting the following:
            ``(6) the term `certified development company' means an 
        entity that--
                    ``(A) the Administrator has certified meets the 
                criteria of section 506; or
                    ``(B) as of January 1, 1987, was providing loans 
                under this title and was a for-profit enterprise, and 
                otherwise meets the criteria of section 506;''.

SEC. 212. REPEAL OF SUNSET ON RESERVE REQUIREMENTS FOR PREMIER 
              CERTIFIED LENDERS.

    Section 508(c)(6)(B) of the Small Business Investment Act of 1958 
(15 U.S.C. 697e(c)(6)(B)) is amended--
            (1) in the heading, by striking ``Temporary reduction'' and 
        inserting ``Reduction''; and
            (2) by striking ``Notwithstanding subparagraph (A), during 
        the 2-year period beginning on the date that is 90 days after 
        the date of enactment of this subparagraph, the'' and inserting 
        ``The''.

SEC. 213. ELIGIBILITY OF DEVELOPMENT COMPANIES TO BE DESIGNATED AS 
              CERTIFIED DEVELOPMENT COMPANIES AND AUTHORITY TO ISSUE 
              DEBENTURES; AND PROVIDING AN AREA OF OPERATIONAL 
              AUTHORITY, FUNDING RESTRICTIONS, AND ETHICAL 
              REQUIREMENTS.

    (a) In General.--Section 506 of the Small Business Investment Act 
of 1958 (15 U.S.C. 697c) is amended--
            (1) in the heading, by striking ``Restrictions on 
        development company assistance'' and inserting ``Certified 
        development companies''; and
            (2) by amending such section to read as follows:
    ``(a) Authority to Issue Debentures.--A certified development 
company (as defined in section 103(6)) may issue debentures under this 
title.
    ``(b) Criteria to Be Treated as Certified Development Company.--
            ``(1) In general.--The Administrator shall establish 
        procedures under which an entity, incorporated under State law 
        with the authority to promote and assist the growth and 
        development of small business concerns in the areas in which it 
        is authorized to operate by the Administrator, may apply to be 
        treated as a certified development company. Upon application of 
        such an entity, the Administrator shall determine whether the 
        entity meets each of the criteria specified in paragraph (2). 
        If the Administrator determines that the entity does meet each 
        of the criteria, the Administrator shall so certify, and the 
        entity shall thereby be treated as a certified development 
        company as provided by section 103(6)(A).
            ``(2) Specific criteria.--The criteria referred to in 
        paragraph (1) are as follows:
                    ``(A) Size.--The entity is a small concern (as 
                defined by the Administrator) with fewer than 500 
                employees and is not under the control of an entity 
                that is not a small business concern (as defined by the 
                Administrator). Any company that was certified by the 
                Administrator on or before the date of enactment of the 
                Small Business Reauthorization Act of 2006 shall 
                continue to be treated as a certified development 
                company without regard to any affiliation that existed 
                on such date.
                    ``(B) Purpose.--The entity has as a primary purpose 
                to benefit the community by fostering economic 
                development to create and preserve jobs and stimulate 
                private investment.
                    ``(C) Primary function.--The entity has as a 
                primary function to accomplish that primary purpose by 
                providing long term financing to small business 
                concerns under the Certified Development Company 
                Program. The entity may also provide or support other 
                local economic development activities to assist the 
                community.
                    ``(D) Nonprofit status.--The entity is nonprofit.
                    ``(E) Good standing.--The entity--
                            ``(i) is in good standing in the State in 
                        which it is incorporated and in every other 
                        State in which it conducts business; and
                            ``(ii) is in compliance with all laws, 
                        including taxation requirements, in the State 
                        in which it is incorporated and in every other 
                        State in which it conducts business.
                    ``(F) Membership.--The entity has--
                            ``(i) not fewer than 25 members (or 
                        stockholders, if the company is a for-profit 
                        entity), none of whom own or control more than 
                        10 percent of the voting membership (or stock, 
                        for those companies that are for-profit 
                        entities), and each of whom--
                                    ``(I) have knowledge of the 
                                economic development needs of the small 
                                businesses served by the company; and
                                    ``(II) is a resident of the State 
                                in which the company is incorporated or 
                                otherwise has sufficient contacts with 
                                the State in which the company 
                                operates; and
                            ``(ii) at least 1 member, who is not in a 
                        position to control the entity, from each of 
                        the following:
                                    ``(I) Government organizations that 
                                are responsible for economic 
                                development.
                                    ``(II) Financial institutions that 
                                provide commercial long term fixed 
                                asset financing.
                                    ``(III) Community organizations 
                                that are dedicated to economic 
                                development.
                                    ``(IV) Businesses.
                    ``(G) Board of directors.--
                            ``(i) In general.--The entity has a board 
                        of directors.
                            ``(ii) Members of board.--Each director 
                        is--
                                    ``(I) a member of the entity; and
                                    ``(II) elected a director by the 
                                members of the entity (or for those 
                                companies which are for-profit by the 
                                stockholders according to the bylaws of 
                                those companies).
                            ``(iii) Representation of organizations and 
                        institutions.--
                                    ``(I) In general.--The entity has 
                                at least 1 director, who is not in a 
                                position to control the entity, from at 
                                least 3 of the categories described in 
                                subparagraph (F)(ii).
                                    ``(II) Maximum percentage.--For 
                                each category described in subparagraph 
                                (F)(ii), not more than 50 percent of 
                                the directors are from that category.
                            ``(iv) Meetings.--The board of directors 
                        meets on a regular basis to make policy 
                        decisions for the entity.
                    ``(H) Professional management and staff.--The 
                entity has full-time professional management, including 
                a chief executive officer to manage daily operations, 
                and a professional staff that is qualified to market 
                the Certified Development Company Program and handle 
                all aspects of loan approval and servicing, including 
                liquidation, as described in section 510, which work 
                for the entity--
                            ``(i) as employees;
                            ``(ii) as contractors, through contracting 
                        with an entity with which the development 
                        company is affiliated if such entity is--
                                    ``(I) a local nonprofit service 
                                corporation;
                                    ``(II) a for-profit corporation, 
                                but only if the contracting was in 
                                effect, and the entity was certified by 
                                the Administrator, on or before 
                                December 31, 2005;
                                    ``(III) a nonprofit affiliate of a 
                                local nonprofit service corporation;
                                    ``(IV) an entity wholly or 
                                partially operated by a government 
                                agency; or
                                    ``(V) another entity approved by 
                                the Administrator, so long as the other 
                                entity also supports local economic 
                                development; or
                            ``(iii) if the entity is in a rural area, 
                        as contractors, through contracting with 
                        another certified development company that is 
                        located in the State in which the entity is 
                        located or in a State contiguous to that State.
                    ``(I) Independent management and operation.--The 
                entity employs directly the chief executive officer, 
                and is managed and operated to pursue the primary 
                purpose referred to in subparagraph (B), and--
                            ``(i) is independent; or
                            ``(ii) is an affiliate of another local 
                        nonprofit service corporation, so long as the 
                        board of directors of the entity has at least 1 
                        director not on the board of directors of the 
                        service corporation, and the board of the 
                        directors of the service corporation has at 
                        least 1 director not on the board of directors 
                        of the entity.
            ``(3) Definition.--In this subsection, the term `local 
        nonprofit service corporation' means a local nonprofit service 
        corporation (other than a certified development company), a 
        purpose of which is to support economic development in the area 
        in which the entity operates.
    ``(c) Use of Excess Funds.--
            ``(1) In general.--Any funds generated by a certified 
        development company from making loans under section 503 or 504 
        that remain unexpended after payment of staff, operating, and 
        overhead expenses shall be retained by the certified 
        development company as a reserve for--
                    ``(A) future operations;
                    ``(B) expanding the area in which the certified 
                development company operates through the methods 
                authorized by this title; or
                    ``(C) investment in other community or local 
                economic development activity in the State or 
                associated local economic area from which such funds 
                were generated.
            ``(2) Definition.--For purposes of this subsection, the 
        term `local economic area' means an area that is part of a 
        local trading area that is in a State other than the State of 
        incorporation of a certified development company but which is 
        contiguous to a part of the company's State of incorporation.
    ``(d) Ethical Requirements.--
            ``(1) In general.--A certified development company and the 
        officers, employees, and other staff of the company shall at 
        all times act ethically and avoid activities which constitute a 
        conflict of interest or appear to constitute a conflict of 
        interest.
            ``(2) Prohibited conflict in project loans.--
                    ``(A) In general.--A certified development company 
                may not--
                            ``(i) recommend or approve a guarantee of a 
                        debenture by the Administrator under the 
                        Certified Development Company Program that is 
                        collateralized by a second lien position on the 
                        property being constructed or acquired; and
                            ``(ii) provide, or be affiliated with a 
                        corporation or other entity which provides, 
                        financing collateralized by a first lien on the 
                        same property.
                    ``(B) Exception.--A certified development company 
                that was participating as a first mortgage lender, 
                either directly or through an affiliate, for the 
                Certified Development Company Program in either of 
                fiscal years 2004 or 2005 may continue to do so.
            ``(3) Other economic development activities.--It shall not 
        be a conflict of interest for a certified development company 
        to operate multiple programs to assist small business concerns 
        as part of carrying out its economic development purpose.
            ``(4) Acceptance of funding subject to restrictions.--
                    ``(A) In general.--A certified development company 
                may not accept funding that is subject to a restriction 
                described in subparagraph (B) from a source (including 
                a source that is a department or agency of the Federal 
                Government) unless the source also provides all of the 
                financial assistance to be delivered by the certified 
                development company under this title and the 
                restriction is limited solely to the financial 
                assistance so provided.
                    ``(B) Restrictions covered.--A restriction referred 
                to in subparagraph (A) is--
                            ``(i) a condition, priority, or restriction 
                        upon the types of small businesses to which the 
                        certified development company may deliver 
                        financial assistance under this title; or
                            ``(ii) a condition or requirement, directly 
                        or indirectly, upon the small business to which 
                        financial assistance is to be delivered under 
                        this title.
    ``(e) Multistate Operations.--
            ``(1) Authorization.--Notwithstanding any other provision 
        of law, the Administrator shall permit a certified development 
        company to make loans in any State that is contiguous to the 
        State of incorporation of that certified development company, 
        only if such company--
                    ``(A) is--
                            ``(i) an accredited lender under section 
                        507; or
                            ``(ii) a premier certified lender under 
                        section 508;
                    ``(B) meets or exceeds performance standards 
                established by the Administrator;
                    ``(C) has a membership that contains not fewer than 
                25 members from each State in which the company makes 
                loans and meets the requirements of paragraph (6)(B) 
                for membership in each State;
                    ``(D) has a board of directors that contains not 
                fewer than 1 member from each State in which the 
                company makes loans;
                    ``(E) has not fewer than 1 loan committee--
                            ``(i) that considers loan applications from 
                        small businesses in States other than the State 
                        of incorporation of the certified development 
                        company;
                            ``(ii) that has at least one member with 
                        commercial lending experience; and
                            ``(iii) that does not have any staff of the 
                        certified development company serving on the 
                        loan committee; and
                    ``(F) submits to the Administrator, in writing--
                            ``(i) a notice of the intention of the 
                        company to make loans in multiple States;
                            ``(ii) the names of the States in which the 
                        company intends to make loans;
                            ``(iii) a detailed statement of how the 
                        company will comply with this paragraph, 
                        including a list of the members described in 
                        subparagraph (C).
            ``(2) Review.--The Administrator shall verify whether a 
        certified development company satisfies the requirements of 
        paragraph (1) on an expedited basis and, not later than 30 days 
        after the date on which the Administrator receives the 
        statement described in paragraph (1)(E)(iii), the Administrator 
        shall determine whether such company satisfies such criteria 
        and provide notice to such company.
            ``(3) Loan committee operation.--
                    ``(A) Approval required.--Any loan made by a 
                certified development company in a State other than its 
                State of incorporation shall be approved by a loan 
                committee established pursuant to subsection (e)(1)(E) 
                of this section. No such loan shall be approved if the 
                loan committee does not have at least one member from 
                the State in which the loan is made and such member 
                participates in the review of the loan.
                    ``(B) Ratification by board.--Any loan made in a 
                State other than the State of incorporation must be 
                ratified by the Board of Directors of the certified 
                development company.
            ``(4) Aggregate accounting.--A company described in 
        paragraph (1) may maintain an aggregate accounting of all 
        revenue and expenses of the company for purposes of this title.
            ``(5) Local job creation requirements.--
                    ``(A) In general.--Any certified development 
                company making loans in multiple States shall satisfy 
                any applicable job creation or retention requirements 
                separately for each such State. Such a company shall 
                not count jobs created or retained in 1 State towards 
                any applicable job creation or retention requirement in 
                another State.
                    ``(B) Transition period.--The requirement of 
                subparagraph (A) does not apply during the 2-year 
                period beginning with the date on which the 
                Administrator authorizes multi-State operations.
            ``(6) Control of multiple companies.--
                    ``(A) In general.--No one either directly or 
                indirectly may exercise a position of control on more 
                than one certified development company.
                    ``(B) Close relatives.--No close relative of an 
                individual who holds a position of control in a 
                certified development company may hold a position of 
                control on a certified development company other than 
                the company on which the individual serves.
                    ``(C) Definitions.--In this paragraph--
                            ``(i) the term `close relative' means a 
                        spouse, parent, child, or sibling, or the 
                        spouse of a parent, child, or sibling; and
                            ``(ii) the term `position of control' means 
                        a certified development company's officer, 
                        member of the board of directors, manager, 
                        chief executive officer, agent involved in the 
                        loan process, key employee or similar 
                        management position, or, if the certified 
                        development company is a for-profit entity, a 
                        holder of 20 percent or more of the value of 
                        the certified development company's stock.
            ``(7) Contiguous states.--For the purposes of this 
        subsection, the States of Alaska and Hawaii and the territories 
        of American Samoa and Guam shall be deemed to be contiguous to 
        California, Oregon, and Washington.
            ``(8) Local economic area operation.--A certified 
        development company that is operating or applies for authority 
        to operate in a local economic area (as defined in subsection 
        (c)(2)) shall not be deemed to be conducting a multistate 
        operation and shall not be subject to the eligibility criteria 
        or operating requirements in this subsection.''.
    (b) Temporary Grandfather Clause.--An entity that, as of December 
31, 2005, was certified by the Administrator for purposes of title V of 
the Small Business Investment Act of 1958 shall continue to be treated 
as a certified development company for purposes of that Act until the 
1-year period beginning with the date of the enactment of this Act 
expires.

SEC. 214. CONFORMING AMENDMENTS.

    (a) Title Heading.--The title heading for title V of the Small 
Business Investment Act of 1958 is amended by striking ``State and 
Local Development Companies'' and inserting ``Certified Development 
Companies''.
    (b) Section 501.--Section 501 of such Act is amended--
            (1) in the section heading by striking ``state development 
        companies'' and inserting ``certified development companies'';
            (2) in subsection (b) by striking ``State development 
        companies'' and inserting ``certified development companies''; 
        and
            (3) in subsection (c) by striking ``State development 
        company'' both places such term appears and inserting 
        ``certified development company''.
    (c) Section 502.--Section 502 of such Act is amended in the first 
sentence by striking ``State and local development companies'' and 
inserting ``certified development companies''.
    (d) Section 503.--Section 503 of such Act is amended--
            (1) in subsection (a)(1), by striking ``qualified State or 
        local development company'' and inserting ``certified 
        development company''; and
            (2) by striking subsection (e) and inserting the following:
    ``(e) Section 7(a) Loans.--The Administrator shall not prevent or 
in any manner impede a certified development company from providing 
assistance to a business with respect to preparing applications for 
loans under section 7(a) of the Small Business Act, or for servicing 
such loans so long as the fee that the certified development company 
charges the business for providing that assistance or servicing is no 
more than reasonable. Nothing in this provision shall authorize a 
certified development company to issue loans pursuant to section 7(a) 
of the Small Business Act.''.
    (e) Section 505.--Section 505 of such Act is amended in subsection 
(a) by striking ``State or local development companies'' and inserting 
``certified development companies''.
    (f) Section 507.--Section 507 of such Act is amended--
            (1) in subsection (a) by striking ``State and local 
        development companies'' and inserting ``certified development 
        companies'';
            (2) in subsection (b) by striking ``qualified State or 
        local development company'' and inserting ``certified 
        development company'';
            (3) in subsection (c) by striking ``qualified State or 
        local development company'' and inserting ``certified 
        development company'';
            (4) in subsection (d)(1) by striking ``qualified State or 
        local development company'' and inserting ``certified 
        development company''; and
            (5) by striking subsection (e).
    (g) Section 509.--Section 509 of such Act is amended in subsection 
(e)(1)(A) by striking ``qualified State or local development company'' 
and inserting ``certified development company''.
    (h) Section 510.--Section 510 of such Act is amended--
            (1) in subsection (a) by striking ``qualified State or 
        local development company (as defined in section 503(e))'' and 
        inserting ``certified development company'';
            (2) in subsection (b)(1) by striking ``qualified State or 
        local development company'' and inserting ``certified 
        development company'';
            (3) in subsection (b)(1)(B)(i)(II) by striking ``qualified 
        State and local development companies'' and inserting 
        ``certified development companies'';
            (4) in subsection (c)(1) in the matter preceding 
        subparagraph (A) by striking ``qualified State or local 
        development company'' and inserting ``certified development 
        company'';
            (5) in subsection (c)(1)(B)(i)(II) by striking ``qualified 
        State or local development company'' both places such term 
        appears and inserting ``certified development company'';
            (6) in subsection (c)(2)(A)(i), by striking ``qualified 
        State or local development company'' and inserting ``certified 
        development company'';
            (7) in subsection (c)(2)(A)(iii), by striking ``qualified 
        State or local development company'' and inserting ``certified 
        development company'';
            (8) in subsection (c)(2)(B)(i), by striking ``qualified 
        State or local development company'' and inserting ``certified 
        development company'';
            (9) in subsection (c)(2)(C)(i), by striking ``qualified 
        State or local development company'' and inserting ``certified 
        development company'';
            (10) in subsection (c)(2)(D), by striking ``qualified State 
        or local development company'' and inserting ``certified 
        development company'';
            (11) in subsection (c)(3), by striking ``qualified State or 
        local development company'' and inserting ``certified 
        development company'';
            (12) in subsection (d), by striking ``qualified State or 
        local development company'' and inserting ``certified 
        development company'';
            (13) in subsection (e)(1), by striking ``qualified State 
        and local development companies'' and inserting ``certified 
        development companies'';
            (14) in subsection (e)(2)(A), by striking ``qualified State 
        or local development company'' and inserting ``certified 
        development company''; and
            (15) in subsection (e)(2)(B), by striking ``qualified State 
        or local development company'' and inserting ``certified 
        development company''.

SEC. 215. CLOSING COSTS.

    Section 503(b) of the Small Business Investment Act of 1958 (15 
U.S.C. 697(b)) is amended by striking paragraph (4) and inserting the 
following:
            ``(4) the aggregate amount of such debenture does not 
        exceed the amount of the loans to be made from the proceeds of 
        such debenture plus, at the election of the borrower, other 
        amounts attributable to the administrative and closing costs of 
        such loans, except for the attorney fees of the borrower;''.

SEC. 216. DEFINITION OF RURAL.

    Section 501 of the Small Business Investment Act of 1958 (15 U.S.C. 
695) is amended by adding at the end the following:
    ``(f) As used in this title, the terms `rural' and `rural area' 
have the meaning given such terms in section 343(a)(13) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)).''.

SEC. 217. REGULATIONS AND EFFECTIVE DATE.

    (a) In General.--The Administrator shall, after notice and comment, 
publish rules to implement this subtitle and the amendments made by 
this subtitle in final form.
    (b) Consequence of Delay.--If the Administrator has not complied 
with subsection (a) as of the date that is 180 days after the enactment 
of this Act, any entity, then, from that date until the date on which 
the Administrator has complied with subsection (a), any entity that 
applies to be treated as a certified development company shall be 
treated as a certified development company.

             Subtitle B--Small Business Lending Improvement

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the ``Small Business Lending 
Improvement Act''.

SEC. 222. NATIONAL PREFERRED LENDERS PROGRAM.

    Section 7(a)(2) of the Small Business Act (15 U.S.C. 636(a)(2)) is 
amended by adding at the end the following:
                    ``(E) National preferred lenders program.--The 
                Administrator shall establish a National Preferred 
                Lenders Program by regulation or procedural notice. Any 
                preferred lender authorized by the Administrator to 
                operate as a preferred lender on a national basis prior 
                to the date of the enactment of the Small Business 
                Reauthorization Act of 2006 shall continue that status 
                to the extent that the lender continues to meet the 
                qualifications for preferred lender status under this 
                section. ''.

SEC. 223. MAXIMUM LOAN AMOUNT.

    Section 7(a)(3) of the Small Business Act (15 U.S.C. 636(a)(3)(A)) 
is amended--
            (1) in subparagraph (A), by striking ``$1,500,000 (or if 
        the gross loan amount would exceed $2,000,000)'' and inserting 
        ``$2,250,000 (or if the gross loan amount would exceed 
        $3,000,000)''; and
            (2) in subparagraph (B), by striking ``$1,750,000, of which 
        not more than $1,250,000'' and inserting ``$2,500,000, of which 
        not more than $2,000,000''.

SEC. 224. ALTERNATIVE SIZE STANDARD.

    Section 3(a)(3) of the Small Business Act (15 U.S.C. 632(a)(3)) is 
amended--
            (1) by striking ``When establishing'' and inserting the 
        following:
 ``Establishment of size standards.--
            ``(A) In general.--When establishing''; and
            (2) by adding at the end the following:
            ``(B) Alternative size standard.--
                    ``(i) In general.--Not later than 180 days after 
                the date of enactment of this subparagraph, the 
                Administrator shall establish an alternative size 
                standard under paragraph (2), that shall be applicable 
                to loan applicants under section 7(a) or under title V 
                of the Small Business Investment Act of 1958 (15 U.S.C. 
                695 et seq.).
                    ``(ii) Criteria.--The alternative size standard 
                established under clause (i) shall utilize the maximum 
                net worth and maximum net income of the prospective 
                borrower as an alternative to the use of industry 
                standards.
                    ``(iii) Affiliation.--In developing the size 
                standard, the Administrator shall not take into account 
                any affiliation between the prospective borrower and 
                any other entity if the prospective borrower has no 
                legal recourse to an affiliate to repay the loan made 
                pursuant to section 7(a).
                    ``(iv) Interim rule.--Until the Administrator 
                establishes an alternative size standard under clause 
                (i), the Administrator shall use the alternative size 
                standard in section 121.301(b) of title 13, Code of 
                Federal Regulations, for loan applicants under section 
                7(a) or under title V of the Small Business Investment 
                Act of 1958 (15 U.S.C. 695 et seq.).''.

SEC. 225. TIMELY PAYMENT OF 7(A) SECONDARY MARKET FEE.

    Section 5(g)(2) of the Small Business Act is amended--
            (1) by inserting ``(A)'' before ``The Administration''; and
            (2) by adding at the end the following:
    ``(B)(i) With respect to the Administration's guaranty of the 
timely payment of the principal and interest on trust certificates 
issued under this subsection on or after October 1, 2007, the 
Administration may assess, collect, and retain a fee in the amount and 
frequency, as established annually by the Administration, as necessary 
to reduce to zero the cost (as defined in section 502 of the Federal 
Credit Reform Act of 1990) to the Administration of making this 
guaranty. The Administration may contract with an agent to carry out, 
on behalf of the Administration, the assessment and collection of such 
fee.
    ``(ii) The fee specified in clause (i) shall be--
            ``(I) payable by the holders of such trust certificates; 
        and
            ``(II) deducted from the amounts otherwise payable to the 
        holders of such trust certificates, until the fee is paid in 
        full.
    ``(iii) The fee specified in clause (i) shall not be charged to any 
borrower whose loan is represented in the secondary market by a trust 
certificate authorized under subparagraph (A).''.

                 Subtitle C--Small Business Investment

SEC. 241. PARTICIPATING SECURITY SMALL BUSINESS INVESTMENT COMPANIES.

    Part A of title III of the Small Business Investment Act of 1958 
(15 U.S.C. 681 et seq.) is amended by adding at the end the following:

``SEC. 321. PARTICIPATING SECURITY SMALL BUSINESS INVESTMENT COMPANIES.

    ``(a) Application.--This section applies to companies licensed to 
use participating securities pursuant to this title after September 30, 
2004. Except as provided in this section, all other provisions of this 
title apply to companies licensed to use participating securities after 
September 30, 2004.
    ``(b) Authority to Guarantee.--
            ``(1) In general.--
                    ``(A) In order to encourage small business 
                investment companies to provide equity capital to small 
                businesses, the Administrator is authorized to 
                guarantee the payment of the redemption price and 
                prioritized payments on participating securities issued 
                by such companies which are licensed pursuant to 
                section 301(c) of this Act, and a trust or a pool 
                acting on behalf of the Administrator is authorized to 
                purchase such securities.
                    ``(B) Participating securities guaranteed under 
                this section may not exceed 100 percent of the 
                regulatory capital of the company as defined by the 
                Administrator.
            ``(2) Terms and conditions of the guarantee.--Such 
        guarantees and purchases shall be made on such terms and 
        conditions as the Administrator shall establish by regulation.
    ``(c) Restrictions on Participating Securities.--In addition to any 
limitations imposed by the Administrator that are not inconsistent with 
this section, participating securities guaranteed under this section 
shall be subject to the following restrictions and limitations:
            ``(1) Obligations of with respect to participating 
        securities and prioritized payments.--
                    ``(A) In general.--Participating securities shall 
                be redeemed not later than 10 years after their date of 
                issuance for an amount equal to 100 percent of the 
                original issue price plus the amount of any accrued 
                prioritized payment.
                    ``(B) Obligation to make prioritized payments and 
                redeem participating securities.--
                            ``(i) In general.--A company licensed under 
                        this section shall be obligated to pay accrued 
                        and unpaid prioritized payments and redeem its 
                        participating securities irrespective of the 
                        profitability of the company.
                            ``(ii) Limitation on in-kind 
                        distributions.--A company may not make any in-
                        kind distributions unless all accrued 
                        prioritized payments and leverage outstanding 
                        as of the date of distribution have been paid 
                        in full by cash payment by the company.
            ``(2) Prioritized payments.--
                    ``(A) In general.--Prioritized payments on 
                participating securities shall be preferred and 
                cumulative and payable out of any gross receipts of the 
                issuing company.
                    ``(B) Interest rate of priority payments.--
                Prioritized payments shall accrue at a rate determined 
                by the Secretary of the Treasury taking into 
                consideration the current average market yield on 
                outstanding marketable obligations of the United States 
                with remaining periods to maturity comparable to the 
                average maturities on such securities, adjusted to the 
                nearest one-eighth of 1 percent, plus an additional 
                charge, in an amount established annually by the 
                Administrator, as necessary to reduce to zero the cost 
                (as defined in section 502 of the Federal Credit Reform 
                Act of 1990 (2 U.S.C. 661a)) to the Administrator of 
                purchasing and guaranteeing participating securities 
                under this section, which amount may not exceed 1.5 
                percent per year, and which shall be paid to and 
                retained by the Administrator.
                    ``(C) Payment of accrued prioritized payments.--Any 
                accrued but unpaid prioritized payments shall be due 
                and payable on the seventh anniversary of the date of 
                issuance of the participating security to which they 
                apply. Prioritized payments accruing after the seventh 
                anniversary shall be paid semiannually thereafter until 
                the participating security to which they apply has been 
                redeemed.
            ``(3) Seniority of participating security.--In the event of 
        liquidation of the company, participating securities and 
        accrued but unpaid prioritized payments shall be senior in 
        priority for all purposes to all other equity interests in the 
        issuing company, whenever created.
            ``(4) Investment in equity capital.--Any company issuing a 
        participating security under this section shall commit to 
        invest or shall invest an amount equal to the outstanding face 
        value of such security solely in equity capital.
            ``(5) Limitations on outside debt.--The only debt other 
        than leverage obtained in accordance with this title which any 
        company issuing a participating security under this section may 
        have outstanding shall be temporary debt in amounts limited to 
        not more than 50 percent of private capital.
    ``(d) Distributions by Licensee.--
            ``(1) Order and types of distributions.--
                    ``(A) Payment of prioritized payments.--Accrued but 
                unpaid prioritized payments shall be paid whenever a 
                company has gross receipts on payment dates prescribed 
                by the Administrator. If not previously paid in full, 
                accrued but unpaid prioritized payments shall be paid 
                upon the seventh anniversary of the issuance of the 
                participating security to which they apply and 
                semiannually thereafter until the participating 
                security is redeemed in full.
                    ``(B) Tax distributions.--
                            ``(i) In general.--If a company is 
                        operating as a limited partnership or as a 
                        subchapter S corporation or an equivalent pass-
                        through entity for tax purposes and if there 
                        are no accumulated and unpaid prioritized 
                        payments, the company may make annual 
                        distributions to the partners, shareholders, or 
                        members in amounts not greater than each 
                        partner's, shareholder's, or member's maximum 
                        tax liability attributable to the operations of 
                        the company; provided, however, that such 
                        distributions shall not be permitted in any 
                        period in which distributions characterized as 
                        either return of capital or profit are 
                        sufficient to pay the liability calculated in 
                        accordance with this paragraph.
                            ``(ii) Interim tax distributions.--A 
                        company may also elect to make a distribution 
                        under this paragraph at any time during any 
                        calendar quarter based on an estimate of the 
                        maximum tax liability. If a company makes one 
                        or more interim distributions for a calendar 
                        year, and the aggregate amount of those 
                        distributions exceeds the maximum amount that 
                        the company could have distributed based on a 
                        single annual computation, any subsequent 
                        distribution by the company under this 
                        paragraph shall be reduced by an amount equal 
                        to the excess amount distributed.
                    ``(C) Payment of outstanding leverage and return of 
                capital.--After making any distributions pursuant to 
                subparagraphs (A) and (B), whenever a company with 
                participating securities outstanding has gross receipts 
                it shall return capital to its investors, specifically 
                including the Administrator. Any distributions made 
                under this subparagraph shall be made to private 
                investors and to the Administrator in the ratio of 
                private capital to leverage as of the date of the 
                distribution until leverage outstanding as of the date 
                of distribution has been redeemed in full.
                    ``(D) Distribution of profits.--After making 
                distributions pursuant to subparagraphs (A), (B), and 
                (C), a company shall distribute any profits in excess 
                reserves for reasonably anticipated expenses and other 
                liabilities for the following 12 months to its 
                investors and to the Administrator in accordance with 
                the following:
                            ``(i) To the Administrator, 50 percent of 
                        the leverage percent reduced by the weighted 
                        average of all prioritized payment rates paid 
                        by the company with respect to participating 
                        securities issued by the company to the date of 
                        distribution.
                            ``(ii) The balance to the company's private 
                        investors in accordance with the company's 
                        controlling documents.
                            ``(iii) A company operating under this 
                        section shall be entitled to subtract from any 
                        calculation of profit management expenses not 
                        more than 2.5 percent of the combined capital 
                        of the company plus an additional $125,000 if 
                        the combined capital of the company is less 
                        than $20,000,000.
                    ``(E) In-kind profit distributions.--
                            ``(i) A licensee may elect to may make all 
                        or part of distribution under subparagraph (C), 
                        including any distribution to the 
                        Administrator, as an in-kind distribution only 
                        to the extent that such securities are publicly 
                        traded and marketable.
                            ``(ii) In-kind distributions to the 
                        Administrator shall be deposited with a trustee 
                        designated by the Administrator that has 
                        substantial expertise and experience in the 
                        sale of thinly traded securities. Designation 
                        of the trustee must occur not later than 180 
                        days after the effective date of this section.
                            ``(iii) If the Administrator receives in-
                        kind distributions and upon sale of such 
                        securities realizes less than the value of such 
                        securities at the date of the distribution, the 
                        Administrator shall not be permitted to seek 
                        from the licensee the difference between the 
                        value of such securities on the date of the in-
                        kind distribution and the value on the date of 
                        sale by the Administrator.
                            ``(iv) If the Administrator receives in-
                        kind distributions and upon sale of such 
                        securities realizes more than the value of such 
                        securities at the date of distribution, the 
                        Administrator shall be entitled to retain the 
                        difference between the value of such securities 
                        on the date of the in-kind distribution and the 
                        value on the date of sale by the Administrator. 
                        Any excess value received by the Administrator 
                        shall not reduce any liability of the company 
                        with respect to prioritized payments or 
                        redemption of participating securities.
    ``(e) Leverage Fees.--
            ``(1) In general.--The Administrator shall collect a fee of 
        three percent of the face amount of any leverage granted to a 
        licensee pursuant to this section.
            ``(2) Timing of fee payment.--
                    ``(A) One-third of such fee is payable upon the 
                date at which the Administrator and licensee enter into 
                a commitment for such leverage.
                    ``(B) Two-thirds of such fee is payable upon the 
                date such leverage is drawn.
                    ``(C) If there is no commitment between the 
                Administrator and the licensee under subparagraph (A), 
                all of such fee is due on the date on which the 
                leverage is drawn by the licensee.
    ``(f) Calculation of Subsidy Rate.--All fees, interest, and profits 
received and retained by the Administrator under this section shall be 
included in the calculations made by the Director of the Office of 
Management and Budget to offset the cost (as that term is defined in 
section 502 of the Federal Credit Reform Act of 1990) to the 
Administrator of purchasing and guaranteeing debentures and 
participating securities under this Act.
    ``(g) Definitions.--In this section:
            ``(1) The term `participating security' means a 
        participating debt security issued to the Administrator that 
        obligates the issuing company to pay prioritized payments and 
        principal when due and a percentage of the profits, if any, of 
        the company to the Administrator as provided in this section.
            ``(2) The term `prioritized payments' means interest 
        payable on such participating securities in accordance with 
        this section.
            ``(3) The term `gross receipts' means any cash received by 
        a small business investment company, including investment 
        proceeds (both return of capital and profit), interest, 
        dividends, and fees, other than capital contributed by a 
        partner, the proceeds of the issuance of participating 
        securities, and other money (if any) borrowed by the small 
        business investment company.
            ``(4) The term `equity capital' means common or preferred 
        stock or a similar instrument, including subordinated debt with 
        equity features which is not amortized and which provides for 
        interest payments from appropriate sources, as determined by 
        the Administrator.
            ``(5) The term `combined capital' means the aggregate 
        amount of private capital, outstanding leverage, and 
        commitments of the Administrator held by the company.
            ``(6) The term `management expenses' includes salaries, 
        office expenses, travel, business development, office and 
        equipment rental, bookkeeping and the development, 
        investigation and monitoring of investments, but does not 
        include the cost of services provided by specialized outside 
        consultants, outside lawyers, and outside auditors, who perform 
        services not generally expected of a venture capital company, 
        nor does such term include the cost of services provided by any 
        affiliate of the company that are not part of the normal 
        process of making and monitoring venture capital investments.
            ``(7) The term `leverage percent' means the percent 
        calculated by dividing the aggregate amount of participating 
        security leverage previously drawn by the company (including 
        leverage previously repaid) by that same amount plus the 
        aggregate amount of capital previously contributed to the 
        company by its private investors (including capital previously 
        returned to those investors).
            ``(8) The term `maximum tax liability' means the amount of 
        income allocated to each partner, shareholder, or member 
        (including an allocation to the Administration as if it were a 
        taxpayer) for Federal income tax purposes in the income tax 
        return filed or to be filed by the company with respect to the 
        fiscal year of the company immediately preceding such 
        distribution, multiplied by the highest combined marginal 
        Federal and State income tax rates for corporations or 
        individuals, whichever is higher, on each type of income 
        included in such return.
            ``(9) The term `State income tax' means the income tax of 
        the State where the company's principal place of business is 
        located.''.

                      TITLE III--ENTREPRENEURSHIP

       Subtitle A--National Small Business Regulatory Assistance

SEC. 301. SHORT TITLE.

    This subtitle may be cited as the ``National Small Business 
Regulatory Assistance Act''.

SEC. 302. PURPOSE.

    The purpose of this subtitle is to establish a program to--
            (1) provide confidential assistance to small business 
        concerns;
            (2) provide small business concerns with the information 
        necessary to improve their rate of compliance with Federal and 
        State regulations;
            (3) create a partnership among Federal agencies to increase 
        outreach efforts to small business concerns with respect to 
        regulatory compliance;
            (4) provide a mechanism for unbiased feedback to Federal 
        agencies on the regulatory environment for small business 
        concerns; and
            (5) utilize the service delivery network of Small Business 
        Development Centers to improve access of small business 
        concerns to programs to assist them with regulatory compliance.

SEC. 303. DEFINITIONS.

    In this subtitle, the definitions set forth in section 37(a) of the 
Small Business Act (as added by section 304 of this subtitle) shall 
apply.

SEC. 304. SMALL BUSINESS REGULATORY ASSISTANCE PROGRAM.

    The Small Business Act (15 U.S.C. 637 et seq.) is amended--
            (1) by redesignating section 37 as section 99; and
            (2) by inserting after section 36 the following new 
        section:

``SEC. 37. SMALL BUSINESS REGULATORY ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Association.--The term `Association' means the 
        association recognized by the Administrator of the Small 
        Business Administration under section 21(a)(3)(A).
            ``(2) Participating small business development center.--The 
        term `participating Small Business Development Center' means a 
        Small Business Development Center participating in the program.
            ``(3) Program.--The term `program' means the regulatory 
        assistance program established under this section.
            ``(4) Regulatory compliance assistance.--The term 
        `regulatory compliance assistance' means assistance provided by 
        a Small Business Development Center to a small business concern 
        to enable the concern to comply with Federal regulatory 
        requirements.
            ``(5) Small business development center.--The term `Small 
        Business Development Center' means a Small Business Development 
        Center described in section 21.
            ``(6) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, and American Samoa.
    ``(b) Authority.--In accordance with this section, the 
Administrator shall establish a program to provide regulatory 
compliance assistance to small business concerns through selected Small 
Business Development Centers, the Association of Small Business 
Development Centers, and Federal compliance partnership programs.
    ``(c) Small Business Development Centers.--
            ``(1) In general.--In carrying out the program, the 
        Administrator shall enter into arrangements with selected Small 
        Business Development Centers under which such Centers shall 
        provide--
                    ``(A) access to information and resources, 
                including current Federal and State nonpunitive 
                compliance and technical assistance programs similar to 
                those established under section 507 of the Clean Air 
                Act (42 U.S.C. 7661f);
                    ``(B) training and educational activities;
                    ``(C) confidential, free-of-charge, one-on-one, in-
                depth counseling to the owners and operators of small 
                business concerns regarding compliance with Federal and 
                State regulations, as long as such counseling is not 
                considered to be the practice of law in a State in 
                which a Small Business Development Center is located or 
                in which such counseling is conducted;
                    ``(D) technical assistance;
                    ``(E) referrals to experts and other providers of 
                compliance assistance who meet such standards for 
                educational, technical, and professional competency as 
                are established by the Administrator; and
                    ``(F) access to the Internet and training on 
                Internet use, including the use of the Internet website 
                established by the Administrator under subsection 
                (d)(1)(C).
            ``(2) Reports.--
                    ``(A) In general.--Each selected Small Business 
                Development Center shall transmit to the Administrator 
                a quarterly report that includes--
                            ``(i) a summary of the regulatory 
                        compliance assistance provided by the center 
                        under the program; and
                            ``(ii) any data and information obtained by 
                        the center from a Federal agency regarding 
                        regulatory compliance that the agency intends 
                        to be disseminated to small business concerns.
                    ``(B) Electronic form.--Each report required under 
                subparagraph (A) shall be transmitted in electronic 
                form.
                    ``(C) Interim reports.--A participating Small 
                Business Development Center may transmit to the 
                Administrator such interim reports as the Center 
                considers appropriate.
    ``(d) Data Repository and Clearinghouse.--
            ``(1) In general.--In carrying out the program, the 
        Administrator shall--
                    ``(A) act as the repository of and clearinghouse 
                for data and information submitted by Small Business 
                Development Centers;
                    ``(B) submit to the President, the Committee on 
                Small Business and Entrepreneurship of the Senate, and 
                the Committee on Small Business of the House of 
                Representatives an annual report that includes--
                            ``(i) a description of the types of 
                        assistance provided by participating Small 
                        Business Development Centers under the program;
                            ``(ii) data regarding the number of small 
                        business concerns that contacted participating 
                        Small Business Development Centers regarding 
                        assistance under the program;
                            ``(iii) data regarding the number of small 
                        business concerns assisted by participating 
                        Small Business Development Centers under the 
                        program;
                            ``(iv) data and information regarding 
                        outreach activities conducted by participating 
                        Small Business Development Centers under the 
                        program, including any activities conducted in 
                        partnership with Federal agencies;
                            ``(v) data and information regarding each 
                        case known to the Administrator in which one or 
                        more Small Business Development Centers offered 
                        conflicting advice or information regarding 
                        compliance with a Federal or State regulation 
                        to one or more small business concerns; and
                            ``(vi) any recommendations for improvements 
                        in the regulation of small business concerns;
                    ``(C) establish an Internet website that--
                            ``(i) provides access to Federal, State, 
                        academic, and industry association Internet 
                        websites containing industry-specific 
                        regulatory compliance information that the 
                        Administrator deems potentially useful to small 
                        businesses attempting to comply with Federal 
                        regulations; and
                            ``(ii) arranges such Internet websites in 
                        industry-specific categories.
    ``(e) Eligibility.--
            ``(1) In general.--A Small Business Development Center 
        shall be eligible to receive assistance under the program only 
        if the center is certified under section 21(k)(2).
            ``(2) Waiver.--With respect to a Small Business Development 
        Center seeking assistance under the program, the administrator 
        may waive the certification requirement set forth in paragraph 
        (1) if the Administrator determines that the center is making a 
        good faith effort to obtain such certification.
            ``(3) Effective date.--The restriction described in 
        paragraph (1) shall not apply to any Small Business Development 
        Center before October 1, 2005.
    ``(f) Selection of Participating State Programs.--
            ``(1) Establishment of program.--In consultation with the 
        Association and giving substantial weight to the Association's 
        recommendations, the Administrator shall select the Small 
        Business Development Center programs of 2 States from each of 
        the following groups of States to participate in the program:
                    ``(A) Group 1: Maine, Massachusetts, New Hampshire, 
                Connecticut, Vermont, and Rhode Island.
                    ``(B) Group 2: New York, New Jersey, Puerto Rico, 
                and the Virgin Islands.
                    ``(C) Group 3: Pennsylvania, Maryland, West 
                Virginia, Virginia, the District of Columbia, and 
                Delaware.
                    ``(D) Group 4: Georgia, Alabama, North Carolina, 
                South Carolina, Mississippi, Florida, Kentucky, and 
                Tennessee.
                    ``(E) Group 5: Illinois, Ohio, Michigan, Indiana, 
                Wisconsin, and Minnesota.
                    ``(F) Group 6: Texas, New Mexico, Arkansas, 
                Oklahoma, and Louisiana.
                    ``(G) Group 7: Missouri, Iowa, Nebraska, and 
                Kansas.
                    ``(H) Group 8: Colorado, Wyoming, North Dakota, 
                South Dakota, Montana, and Utah.
                    ``(I) Group 9: California, Guam, Hawaii, Nevada, 
                and Arizona.
                    ``(J) Group 10: Washington, Alaska, Idaho, and 
                Oregon.
            ``(2) Deadline for initial selections.--The Administrator 
        shall make selections under paragraph (1) not later than 60 
        days after promulgation of regulations under section 305 of the 
        National Small Business Regulatory Assistance Act.
            ``(3) Additional selections.--Not earlier than the date 3 
        years after the date of the enactment of this paragraph, the 
        Administrator may select Small Business Development Center 
        programs of States in addition to those selected under 
        paragraph (1). The Administrator shall consider the effect on 
        the programs selected under paragraph (1) before selecting 
        additional programs under this paragraph.
            ``(4) Coordination to avoid duplication with other 
        programs.--In selecting programs under this subsection, the 
        Administrator shall give a preference to Small Business 
        Development Center programs that have a plan for consulting 
        with Federal and State agencies to ensure that any assistance 
        provided under this section is not duplicated by an existing 
        Federal or State program.
    ``(g) Matching Not Required.--Subparagraphs (A) and (B) of section 
21(a)(4) shall not apply to assistance made available under the 
program.
    ``(h) Distribution of Grants.--
            ``(1) In general.--Except as provided in paragraph (2), 
        each State program selected to receive a grant under subsection 
        (f) in a fiscal year shall be eligible to receive a grant in an 
        amount not to exceed the product obtained by multiplying--
                    ``(A) the amount made available for grants under 
                this section for the fiscal year; and
                    ``(B) the ratio that the population of the State 
                bears to the population of all the States with programs 
                selected to receive grants under subsection (f) for the 
                fiscal year.
            ``(2) Minimum amount.--The minimum amount that a State 
        program selected to receive a grant under subsection (f) shall 
        be eligible to receive under this section for any fiscal year 
        shall be $200,000. The Administrator shall reduce the amount 
        described in paragraph (1) as appropriate to carry out the 
        purposes of this paragraph and subsection (i)(2).
    ``(i) Evaluation and Report.--Not later than 3 years after the 
establishment of the program, the Comptroller General of the United 
States shall conduct an evaluation of the program and shall transmit to 
the Administrator, the Committee on Small Business and Entrepreneurship 
of the Senate, and the Committee on Small Business of the House of 
Representatives a report containing the results of the evaluation along 
with any recommendations as to whether the program, with or without 
modification, should be extended to include the participation of all 
Small Business Development Centers.
    ``(j) Authorization of Appropriations.--
            ``(1) In general.--Subject to paragraph (2), there is 
        authorized to be appropriated to carry out this section 
        $5,000,000 for fiscal year 2008 and each subsequent fiscal 
        year.
            ``(2) Amounts authorized only if section 21 fully funded.--
        No funds are authorized to be appropriated to carry out this 
        section for a fiscal year unless the program level authorized 
        to be appropriated to carry out section 21 is fully funded for 
        that fiscal year.
            ``(3) Limitation on use of other funds.--The Administrator 
        shall carry out the program only with amounts appropriated in 
        advance specifically to carry out this section.''.

SEC. 305. PROMULGATION OF REGULATIONS.

    After providing notice and an opportunity for comment and after 
consulting with the Association (but not later than 180 days after the 
date of the enactment of this Act), the Administrator shall promulgate 
final regulations to carry out this subtitle, including regulations 
that establish--
            (1) priorities for the types of assistance to be provided 
        under the program;
            (2) standards relating to educational, technical, and 
        support services to be provided by participating Small Business 
        Development Centers;
            (3) standards relating to any national service delivery and 
        support function to be provided by the Association under the 
        program;
            (4) standards relating to any work plan that the 
        Administrator may require a participating Small Business 
        Development Center to develop; and
            (5) standards relating to the educational, technical, and 
        professional competency of any expert or other assistance 
        provider to whom a small business concern may be referred for 
        compliance assistance under the program.

   Subtitle B--Vocational and Technical Entrepreneurship Development

SEC. 311. SHORT TITLE.

    This subtitle may be cited as the ``Vocational and Technical 
Entrepreneurship Development Act''.

SEC. 312. VOCATIONAL AND TECHNICAL ENTREPRENEURSHIP DEVELOPMENT 
              PROGRAM.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended by inserting after section 37 (as added by section 304) the 
following new section:

``SEC. 38. VOCATIONAL AND TECHNICAL ENTREPRENEURSHIP DEVELOPMENT 
              PROGRAM.

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Association.--The term `Association' means the 
        association of small business development centers recognized 
        under section 21(a)(3)(A).
            ``(2) Program.--The term `program' means the program 
        established under subsection (b).
            ``(3) Small business development center.--The term `small 
        business development center' means a small business development 
        center described in section 21.
            ``(4) State small business development center.--The term 
        `State small business development center' means a small 
        business development center from each State selected by the 
        Administrator, in consultation with the Association and giving 
        substantial weight to the Association's recommendations, to 
        carry out the program on a statewide basis in such State.
    ``(b) Establishment.--In accordance with this section, the 
Administrator shall establish a program under which the Administrator 
shall make grants to State small business development centers to enable 
such centers to provide, on a statewide basis, technical assistance to 
secondary schools, postsecondary vocational schools, or technical 
schools, for the development and implementation of curricula designed 
to promote vocational and technical entrepreneurship.
    ``(c) Grant Amount.--
            ``(1) Minimum grant.--Each grant awarded by the 
        Administrator under the program shall be in an amount not less 
        than $200,000.
            ``(2) No matching requirement.--The Administrator shall not 
        require, as a condition of receiving a grant under this 
        section, that the applicant provide a matching amount, either 
        in cash or as in-kind contributions.
    ``(d) Application.--Each State small business development center 
seeking a grant under the program shall submit to the Administrator an 
application in such form as the Administrator may require. The 
application shall include information regarding the applicant's goals 
and objectives for the educational programs to be assisted.
    ``(e) Report to Administrator.--As a condition of each grant 
awarded under the program, the Administrator shall require the 
recipient to transmit to the Administrator, not later than 18 months 
after the date of receipt of the grant, a report describing how the 
grant funds were used.
    ``(f) Cooperative Agreements and Contracts.--The Administrator may 
enter into a cooperative agreement or contract with any State small 
business development center receiving a grant under this section to 
provide additional assistance that furthers the purposes of this 
section.
    ``(g) Evaluation of Program.--Not later than March 31, 2010, the 
Administrator shall transmit to Congress a report containing an 
evaluation of the program.
    ``(h) Clearinghouse.--The Association shall act as a clearinghouse 
of information and expertise regarding vocational and technical 
entrepreneurship education programs. In each fiscal year in which 
grants are made under the program, the Administrator shall provide 
additional assistance to the Association to carry out the functions 
described in this subsection.
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $7,000,000 for each of fiscal 
years 2008 through 2010. Such sums shall remain available until 
expended.
    ``(j) Funding Limitations.--
            ``(1) Nonapplicability of certain limitations.--Subject to 
        paragraph (2), amounts made available under this section are in 
        addition to any amounts available under section 21(a)(4).
            ``(2) Amounts authorized only if section 21 fully funded.--
        No funds are authorized to be appropriated to carry out this 
        section for a fiscal year unless the program level authorized 
        to be appropriated to carry out section 21 is fully funded for 
        that fiscal year.
            ``(3) Limitation on use of funds.--The Administrator shall 
        carry out this section using only amounts appropriated in 
        advance specifically for the purpose of carrying out this 
        section.''.

         Subtitle C--Native American Small Business Development

SEC. 321. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) Approximately 60 percent of Indian tribe members and 
        Alaska Natives live on or adjacent to Indian lands, which 
        suffer from an average unemployment rate of 45 percent.
            (2) Indian tribe members and Alaska Natives own more than 
        197,000 businesses and generate more than $34,000,000,000 in 
        revenues. The service industry accounted for 17 percent of 
        these businesses (of which 40 percent were engaged in business 
        and personal services) and 15.1 percent of their total 
        receipts. The next largest was the construction industry (13.9 
        percent and 15.7 percent, respectively). The third largest was 
        the retail trade industry (7.5 percent and 13.4 percent, 
        respectively).
            (3) The number of businesses owned by Indian tribe members 
        and Alaska Natives grew by 84 percent from 1992 to 1997, and 
        their gross receipts grew by 179 percent in that period. This 
        is compared to all businesses which grew by 7 percent, and 
        their total gross receipts grew by 40 percent, in that period.
            (4) The Small Business Development Center program is cost 
        effective. Clients receiving long-term counseling under the 
        program in 1998 generated additional tax revenues of 
        $468,000,000, roughly 6 times the cost of the program to the 
        Federal Government.
            (5) Using the existing infrastructure of the Small Business 
        Development Center program, small businesses owned by Indian 
        tribe members, Alaska Natives, and Native Hawaiians receiving 
        services under the program will have a higher survival rate 
        than the average small business not receiving such services.
            (6) Business counseling and technical assistance is 
        critical on Indian lands where similar services are scarce and 
        expensive.
            (7) Increased assistance through counseling under the Small 
        Business Development Center program has been shown to reduce 
        the default rate associated with lending programs of the Small 
        Business Administration.
    (b) Purposes.--The purposes of this subtitle are as follows:
            (1) To stimulate economies on Indian lands.
            (2) To foster economic development on Indian lands.
            (3) To assist in the creation of new small businesses owned 
        by Indian tribe members, Alaska Natives, and Native Hawaiians 
        and expand existing ones.
            (4) To provide management, technical, and research 
        assistance to small businesses owned by Indian tribe members, 
        Alaska Natives, and Native Hawaiians.
            (5) To seek the advice of local Tribal Councils on where 
        small business development assistance is most needed.
            (6) To ensure that Indian tribe members, Alaska Natives, 
        and Native Hawaiians have full access to existing business 
        counseling and technical assistance available through the Small 
        Business Development Center program.

SEC. 322. SMALL BUSINESS DEVELOPMENT CENTER ASSISTANCE TO INDIAN TRIBE 
              MEMBERS, ALASKA NATIVES, AND NATIVE HAWAIIANS.

    (a) In General.--Section 21(a) of the Small Business Act (15 U.S.C. 
648(a)) is amended by adding at the end the following:
            ``(8) Additional grant to assist indian tribe members, 
        alaska natives, and native hawaiians.--
                    ``(A) In general.--Any applicant in an eligible 
                State that is funded by the Administration as a Small 
                Business Development Center may apply for an additional 
                grant to be used solely to provide services described 
                in subsection (c)(3) to assist with outreach, 
                development, and enhancement on Indian lands of small 
                business startups and expansions owned by Indian tribe 
                members, Alaska Natives, and Native Hawaiians.
                    ``(B) Eligible states.--For purposes of 
                subparagraph (A), an eligible State is a State that has 
                a combined population of Indian tribe members, Alaska 
                Natives, and Native Hawaiians that comprises at least 1 
                percent of the State's total population, as shown by 
                the latest available census.
                    ``(C) Grant applications.--An applicant for a grant 
                under subparagraph (A) shall submit to the 
                Administration an application that is in such form as 
                the Administration may require. The application shall 
                include information regarding the applicant's goals and 
                objectives for the services to be provided using the 
                grant, including--
                            ``(i) the capability of the applicant to 
                        provide training and services to a 
                        representative number of Indian tribe members, 
                        Alaska Natives, and Native Hawaiians;
                            ``(ii) the location of the Small Business 
                        Development Center site proposed by the 
                        applicant;
                            ``(iii) the required amount of grant 
                        funding needed by the applicant to implement 
                        the program; and
                            ``(iv) the extent to which the applicant 
                        has consulted with local Tribal Councils.
                    ``(D) Applicability of grant requirements.--An 
                applicant for a grant under subparagraph (A) shall 
                comply with all of the requirements of this section, 
                except that the matching funds requirements under 
                paragraph (4)(A) shall not apply.
                    ``(E) Maximum amount of grants.--No applicant may 
                receive more than $300,000 in grants under this 
                paragraph for one fiscal year.
                    ``(F) Regulations.--After providing notice and an 
                opportunity for comment and after consulting with the 
                Association recognized by the Administration pursuant 
                to paragraph (3)(A) (but not later than 180 days after 
                the date of enactment of this paragraph), the 
                Administration shall issue final regulations to carry 
                out this paragraph, including regulations that 
                establish--
                            ``(i) standards relating to educational, 
                        technical, and support services to be provided 
                        by Small Business Development Centers receiving 
                        assistance under this paragraph; and
                            ``(ii) standards relating to any work plan 
                        that the Administration may require a Small 
                        Business Development Center receiving 
                        assistance under this paragraph to develop.
                    ``(G) Definitions.--In this section, the following 
                definitions apply:
                            ``(i) Indian lands.--The term `Indian 
                        lands' has the meaning given the term `Indian 
                        country' in section 1151 of title 18, United 
                        States Code, the meaning given the term `Indian 
                        reservation' in section 151.2 of title 25, Code 
                        of Federal Regulations (as in effect on the 
                        date of enactment of this paragraph), and the 
                        meaning given the term `reservation' in section 
                        4 of the Indian Child Welfare Act of 1978 (25 
                        U.S.C. 1903).
                            ``(ii) Indian tribe.--The term `Indian 
                        tribe' means any band, nation, or organized 
                        group or community of Indians located in the 
                        contiguous United States, and the Metlakatla 
                        Indian Community, whose members are recognized 
                        as eligible for the services provided to 
                        Indians by the Secretary of the Interior 
                        because of their status as Indians.
                            ``(iii) Indian tribe member.--The term 
                        `Indian tribe member' means a member of an 
                        Indian tribe (other than a Alaska Native).
                            ``(iv) Alaska native.--The term `Alaska 
                        Native' has the meaning given the term `Native' 
                        in section 3(b) of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1602(b)).
                            ``(v) Native hawaiian.--The term `Native 
                        Hawaiian' means any individual who is--
                                    ``(I) a citizen of the United 
                                States; and
                                    ``(II) a descendant of the 
                                aboriginal people, who prior to 1778, 
                                occupied and exercised sovereignty in 
                                the area that now constitutes the State 
                                of Hawaii.
                            ``(vi) Tribal organization.--The term 
                        `tribal organization' has the meaning given 
                        that term in section 4(l) of the Indian Self-
                        Determination and Education Assistance Act (25 
                        U.S.C. 450b(l)).
                    ``(H) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $7,000,000 for each of fiscal years 2008 
                through 2010.
                    ``(I) Funding limitations.--
                            ``(i) Nonapplicability of certain 
                        limitations.--Subject to clause (ii), funding 
                        under this paragraph shall be in addition to 
                        the dollar program limitations specified in 
                        paragraph (4).
                            ``(ii) Amounts authorized only if rest of 
                        section 21 fully funded.--No funds are 
                        authorized to be appropriated to carry out this 
                        paragraph for a fiscal year unless the program 
                        level authorized to be appropriated to carry 
                        out the other activities under this section is 
                        fully funded for that fiscal year.
                            ``(iii) Limitation on use of funds.--The 
                        Administration may carry out this paragraph 
                        only with amounts appropriated in advance 
                        specifically to carry out this paragraph.''.

SEC. 323. STATE CONSULTATION WITH TRIBAL ORGANIZATIONS.

    Section 21(c) of the Small Business Act (15 U.S.C. 648(c)) is 
amended by adding at the end the following:
            ``(9) Advice of local tribal organizations.--A Small 
        Business Development Center receiving a grant under this 
        section shall request the advice of tribal organization on how 
        best to provide assistance to Indian tribe members, Alaska 
        Natives, and Native Hawaiians and where to locate satellite 
        centers to provide such assistance.''.

          Subtitle D--Second-Stage Small Business Development

SEC. 331. SHORT TITLE.

    This subtitle may be cited as the ``Second-Stage Small Business 
Development Act''.

SEC. 332. PURPOSE.

    The purpose of this subtitle is to establish a four-year pilot 
program to--
            (1) identify second-stage small business concerns that have 
        the capacity for significant business growth and job creation;
            (2) facilitate business growth and job creation by second-
        stage small business concerns through the development of peer 
        learning opportunities; and
            (3) utilize the network of small business development 
        centers to expand access to peer learning opportunities for 
        second-stage small business concerns.

SEC. 333. PILOT PROGRAM.

    (a) Establishment.--The Administrator shall establish and carry out 
a pilot program (referred to in this subtitle as the ``pilot program'') 
to make grants to eligible entities for the development of peer 
learning opportunities for second-stage small business concerns in 
accordance with this subtitle.
    (b) Selection of Grant Recipients.--
            (1) In general.--From the eligible entities located in the 
        States in each of the 10 regions under paragraph (3), the 
        Administrator shall select 2 eligible entities to receive 
        grants.
            (2) Eligible entities.--In this subtitle, the term 
        ``eligible entity'' means an entity that--
                    (A) is eligible to receive funding under section 21 
                of the Small Business Act (15 U.S.C. 648); and
                    (B) submits to the Secretary an application that 
                includes--
                            (i) a plan to--
                                    (I) offer peer learning 
                                opportunities to second-stage small 
                                business concerns; and
                                    (II) transition to providing such 
                                opportunities using non-governmental 
                                funding; and
                            (ii) any other information and assurances 
                        that the Secretary may require.
            (3) Criteria for selection.--The Administrator shall 
        evaluate the plans submitted by the eligible entities under 
        paragraph (2) and select eligible entities to receive grants on 
        the basis of the merit of such plans.
            (4) Regions described.--The regions referred to in 
        paragraph (1) are as follows:
                    (A) Region 1.--Maine, Massachusetts, New Hampshire, 
                Connecticut, Vermont, and Rhode Island.
                    (B) Region 2.--New York, New Jersey, Puerto Rico, 
                and the Virgin Islands.
                    (C) Region 3.--Pennsylvania, Maryland, West 
                Virginia, Virginia, the District of Columbia, and 
                Delaware.
                    (D) Region 4.--Georgia, Alabama, North Carolina, 
                South Carolina, Mississippi, Florida, Kentucky, and 
                Tennessee.
                    (E) Region 5.--Illinois, Ohio, Michigan, Indiana, 
                Wisconsin, and Minnesota.
                    (F) Region 6.--Texas, New Mexico, Arkansas, 
                Oklahoma, and Louisiana.
                    (G) Region 7.--Missouri, Iowa, Nebraska, and 
                Kansas.
                    (H) Region 8.--Colorado, Wyoming, North Dakota, 
                South Dakota, Montana, and Utah.
                    (I) Region 9.--California, Guam, Hawaii, Nevada, 
                Arizona, and American Samoa.
                    (J) Region 10.--Washington, Alaska, Idaho, and 
                Oregon.
            (5) Consultation.--If small business development centers 
        have formed an association to pursue matters of common concern 
        as authorized under section 21(a)(3)(A) of the Small Business 
        Act (15 U.S.C. 648(a)(3)(A)), the Administrator shall consult 
        with such association and give substantial weight to the 
        recommendations of such association in selecting the grant 
        recipients.
            (6) Deadline for initial selections.--The Administrator 
        shall make selections under paragraph (1) not later than 60 
        days after the promulgation of regulations under section 334.
    (c) Use of Funds.--An eligible entity that receives a grant under 
the pilot program shall use the grant to--
            (1) identify second-stage small business concerns in the 
        service delivery areas of the eligible entity; and
            (2) establish and conduct peer learning opportunities for 
        such second-stage small business concerns.
    (d) Amount of Grant.--
            (1) In general.--Except as provided in paragraph (2), a 
        grant under the pilot program shall be in an amount that does 
        not exceed the product obtained by multiplying--
                    (A) the amount made available for grants under the 
                pilot program for the fiscal year for which the grant 
                is made; and
                    (B) the ratio that the population of the State in 
                which the eligible entity is located bears to the 
                aggregate population the States in which eligible 
                entities receiving grants for that fiscal year are 
                located.
            (2) Minimum amount of grant.--A grant under the pilot 
        program shall be in an amount not less than $50,000.
    (e) Matching Requirement.--As a condition of a grant under the 
pilot program, the Administrator shall require that a matching amount 
be provided from sources other than the Federal Government that--
            (1) is equal to the amount of the grant, or in the case of 
        an eligible entity that is a community college, historically 
        Black college, Hispanic-serving institution, or other minority 
        institution, is equal to 50 percent of the amount of the grant;
            (2) is not less than 50 percent cash;
            (3) is not more than 50 percent comprised of indirect costs 
        and in-kind contributions; and
            (4) does not include any indirect cost or in-kind 
        contribution derived from any Federal program.
    (f) Quarterly Report to Administrator.--
            (1) In general.--Each eligible entity that receives a grant 
        under the pilot program shall submit to the Administrator a 
        quarterly report that includes--
                    (A) a summary of the peer learning opportunities 
                established by the eligible entity using grant funds;
                    (B) the number of second-stage small business 
                concerns assisted using grant funds; and
                    (C) in the case of an eligible entity that receives 
                a grant for a second fiscal year or any subsequent 
                fiscal year--
                            (i) any measurable economic impact data 
                        resulting from the peer learning opportunities 
                        established using grant funds; and
                            (ii) the number of peer learning 
                        opportunities established by the eligible 
                        entity that have transitioned from operating 
                        using Government funds to operating without 
                        using Government funds.
            (2) Form of report.--The report required under paragraph 
        (1) shall be transmitted in electronic form.
    (g) Data Repository and Clearinghouse.--In carrying out the pilot 
program, the Administrator shall act as the repository of and 
clearinghouse for data and information submitted by the eligible 
entities.
    (h) Annual Report on Pilot Program.--Not later than November 1 of 
each year, the Administrator shall submit to the President and to 
Congress, a report evaluating the success of the pilot program during 
the preceding fiscal year, which shall include the following:
            (1) A description of the types of peer learning 
        opportunities provided with grant funds.
            (2) The number of second-stage small business concerns 
        assisted with grant funds.
            (3) For fiscal year 2009 and each subsequent fiscal year of 
        the pilot program--
                    (A) data regarding the economic impact of the peer 
                learning opportunities provided with grant funds; and
                    (B) the number of peer learning opportunities 
                established by grant recipients that have transitioned 
                from operating using Government funds to operating 
                without using Government funds.
    (i) Privacy Requirement.--The privacy requirements that apply under 
subparagraphs (A) and (B) of section 21(a)(7) of the Small Business Act 
to financial assistance under section 21 of that Act also apply to 
financial assistance under this section.
    (j) Evaluation and Report.--Not later than 3 years after the 
establishment of the pilot program, the Comptroller General of the 
United States shall--
            (1) conduct an evaluation of the pilot program; and
            (2) transmit to Congress and the Administrator a report 
        containing the results of such evaluation along with any 
        recommendations as to whether the pilot program, with or 
        without modification, should be extended to include the 
        participation of all small business development centers.
    (k) Termination.--The pilot program shall terminate on September 
30, 2011.

SEC. 334. REGULATIONS.

    After providing notice and an opportunity for comment and after 
consulting with the association described in section 333(b)(5) (if any 
such association has been formed), the Administrator shall promulgate 
final regulations to carry out this subtitle, including regulations 
that establish--
            (1) standards relating to the establishment and conduct of 
        peer learning opportunities to be provided by grant recipients, 
        including the number of individuals that may participate in a 
        peer group that is part of a peer learning opportunity;
            (2) standards relating to the educational, technical, and 
        professional competency of any facilitator who delivers peer 
        learning opportunities under the pilot program; and
            (3) requirements for transitioning peer learning 
        opportunities funded under the pilot program to non-
        governmental funding.

SEC. 335. DEFINITIONS.

    In this subtitle:
            (1) The term ``Administrator'' means the Administrator of 
        the Small Business Administration.
            (2) The term ``peer learning opportunities'' means formally 
        organized peer groups of owners, presidents and chief executive 
        officers in non-competing second-stage business concerns, 
        meeting regularly with a professionally trained facilitator.
            (3) The term ``second-stage small business concern'' means 
        a small business concern that--
                    (A) has experienced high growth demonstrated by--
                            (i) an average annual revenue or employee 
                        growth rate of at least 15 percent during the 
                        preceding 3 years; or
                            (ii) any 3 of--
                                    (I) owning proprietary intellectual 
                                property;
                                    (II) addressing an underserved or 
                                growing market;
                                    (III) having a sustainable 
                                competitive advantage;
                                    (IV) exporting goods or services 
                                outside of its community; and
                                    (V) having a product or service 
                                that is scalable to a large market; and
                    (B) does not exceed the size standard for the North 
                American Industrial Classification System code of such 
                concern, as established pursuant to section 3(a) of the 
                Small Business Act (15 U.S.C. 632(a)).
            (4) The term ``small business concern'' has the meaning 
        given that term under section 3 of the Small Business Act (15 
        U.S.C. 632).
            (5) The term ``State'' means each of the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, and American Samoa.
            (6) The term ``community college'' has the meaning given 
        that term in section 3301(3) of the Higher Education Act of 
        1965 (20 U.S.C. 7011(3)).
            (7) The term ``historically Black college'' means a part B 
        institution, as defined in section 322(2) of the Higher 
        Education Act of 1965 (20 U.S.C. 1061(2)).
            (8) The term ``Hispanic-serving institution'' has the 
        meaning given that term in section 502(a)(5) of the Higher 
        Education Act of 1965 (20 U.S.C. 1101a(a)(5)).
            (9) The term ``minority institution'' has the meaning given 
        that term in section 365(3) of the Higher Education Act of 1965 
        (20 U.S.C. 1067k(3)).

SEC. 336. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Subject to subsection (b), there is authorized to 
be appropriated to carry out this subtitle $1,500,000 for each of 
fiscal years 2008 through 2011.
    (b) Amounts Authorized Only if Section 21 Fully Funded.--No funds 
are authorized to be appropriated to carry out this section for a 
fiscal year unless the program level authorized to be appropriated to 
carry out section 21 is fully funded for that fiscal year.
    (c) Limitation on Use of Other Funds.--The Administrator shall 
carry out this subtitle using only amounts appropriated in advance 
specifically for the purpose of carrying out this subtitle.

                      Subtitle E--Trade Provisions

SEC. 341. ESTABLISHMENT OF ASSOCIATE ADMINISTRATOR FOR INTERNATIONAL 
              TRADE IN SMALL BUSINESS ADMINISTRATION.

    (a) Establishment.--Section 22(a) of the Small Business Act (15 
U.S.C. 649(a)) is amended by adding at the end the following: ``The 
head of the Office shall be the Associate Administrator for 
International Trade, who shall be responsible to the Administrator.''.
    (b) Authority for Additional Associate Administrator.--Section 
4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended--
            (1) in the fifth sentence, by striking ``five Associate 
        Administrators'' and inserting ``Associate Administrators''; 
        and
            (2) by adding at the end the following: ``One of the 
        Associate Administrators shall be the Associate Administrator 
        for International Trade, who shall be the head of the Office of 
        International Trade established under section 22.''.
    (c) Discharge of Administration International Trade 
Responsibilities.--Section 22 of the Small Business Act, as amended by 
subsection (a), is further amended by adding at the end the following 
new subsection:
    ``(h) The Administrator shall ensure that--
            ``(1) the responsibilities of the Administration regarding 
        international trade are carried out through the Associate 
        Administrator for International Trade;
            ``(2) the Associate Administrator for International Trade 
        has sufficient resources to carry out such responsibilities; 
        and
            ``(3) the Associate Administrator for International Trade 
        has direct supervision and control over the staff of the Office 
        of International Trade, and over any employee of the 
        Administration whose principal duty station is a United States 
        Export Assistance Center or any successor entity.''.
    (d) Role of Associate Administrator in Carrying Out International 
Trade Policy.--Section 2(b)(1) of such Act (15 U.S.C. 631(b)(1)) is 
amended in the matter preceding subparagraph (A)--
            (1) by inserting ``the Administrator of'' before ``the 
        Small Business Administration''; and
            (2) by inserting ``through the Associate Administrator for 
        International Trade'' before ``in cooperation with''.
    (e) Conforming Amendments.--Section 22 of the Small Business Act 
(15 U.S.C. 649), as amended by subsections (a) and (c) is further 
amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``The Office'' and inserting ``The Associate 
                Administrator''; and
                    (B) in paragraph (3), by striking ``the director of 
                the Office'' and inserting ``the Associate 
                Administrator'';
            (2) in subsection (c) in the matter preceding paragraph 
        (1), by striking ``The Office'' and inserting ``The Associate 
        Administrator'';
            (3) in subsection (d), by striking ``Office'' both places 
        it appears and inserting ``Associate Administrator'';
            (4) in subsection (e), in the matter preceding paragraph 
        (1), by striking ``The Office'' and inserting ``The Associate 
        Administrator''; and
            (5) in subsections (f) and (g), by striking ``The Office'' 
        and inserting ``The Associate Administrator''.
    (f) Technical Amendment.--Section 22 of the Small Business Act (15 
U.S.C. 649), as amended by subsections (a), (c), and (e), is further 
amended by striking the period at the end of subsection (c)(5) and 
inserting a semicolon.
    (g) Effective Date.--The Administrator shall appoint an Associate 
Administrator for International Trade pursuant to sections 4 and 22 of 
the Small Business Act (15 U.S.C. 648) (as amended by this section) not 
later than 90 days after the date of the enactment of this Act.

                        TITLE IV--MISCELLANEOUS

SEC. 401. SMALL BUSINESS DISASTER LOANS.

    (a) Increase in Certain Economic Injury Disaster Loan Amounts.--
Section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) is 
amended--
            (1) by redesignating subparagraphs (A), (B), (C), and (D) 
        as clauses (i), (ii), (iii), and (v), respectively;
            (2) by striking ``(2) to make sure loans'' and inserting 
        the following: ``(2)(A) to make such loans'';
            (3) by striking ``or'' at the end of each of clauses (i), 
        (ii), and (iii), as redesignated by paragraph (1);
            (4) by inserting after clause (iii) the following new 
        clause (iv):
                    ``(iv) an incident of national significance as 
                declared by the Secretary of Homeland Security that is 
                an actual or potential high-impact event that requires 
                a coordinated and effective response by an appropriate 
                combination of Federal, State, local, tribal, 
                nongovernmental, or private-sector entities in order to 
                save lives and minimize damage and provide the basis 
                for long-term community recovery and mitigation 
                activities.'';
            (5) by adding at the end the following new subparagraphs:
            ``(B) In the case of an incident of national significance 
        described in subparagraph (A)(iv), a loan or guarantee under 
        this paragraph may be made to a small business concern or small 
        agricultural cooperative located inside or outside the declared 
        disaster area, if the small business concern or small 
        agricultural cooperative suffered substantial economic injury 
        as a direct result of the incident of national significance.
            ``(C) The aggregate amount of the following shall not 
        exceed $10,000,000:
                    ``(i) Any loan or guarantee made to a small 
                business concern or small agricultural cooperative 
                pursuant to a determination of substantial economic 
                injury as a result of an incident of national 
                significance described in subparagraph (A)(iv).
                    ``(ii) Any loan or guarantee made to such small 
                business concern or small agricultural cooperative 
                under paragraph (1)(D).''; and
            (6) by striking ``: Provided That no loan'' and all that 
        follows and inserting the following new subparagraph:
            ``(D) No loan or guarantee shall be made to a small 
        business concern or small agricultural cooperative under this 
        paragraph pursuant to a determination of substantial economic 
        injury as a result of a disaster described in subparagraph (A) 
        if the Administrator finds such concern or cooperative is able 
        to obtain credit elsewhere.''.
    (b) Technical Amendments.--Section 7(b) of such Act is further 
amended--
            (1) by striking ``the, Administration'' and inserting ``the 
        Administration''; and
            (2) in paragraph (2)(A)(i), as redesignated by subsection 
        (a), by striking ``Disaster Relief and Emergency Assistance 
        Act'' and inserting ``Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5121 et seq.)''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to a loan or guarantee made on or after the 
date of the enactment of this Act.

SEC. 402. DISASTER LOANS FOR INCIDENTS OF NATIONAL SIGNIFICANCE.

    (a) Disaster Loans for Private Nonprofit Organizations.--The 
Administrator of the Small Business Administration may make or 
guarantee an economic injury disaster loan under section 7(b)(2) of the 
Small Business Act (15 U.S.C. 636(b)(2)) to a private nonprofit 
organization (as that term is defined in section 29(a)(2) of such Act 
(15 U.S.C. 656(a)(2))) that is located in an area affected by an 
incident of national significance (as declared by the Secretary of 
Homeland Security).
    (b) Disaster Mitigation Loans for Small Businesses.--
            (1) Authority.--The Administrator of the Small Business 
        Administration may make or guarantee a mitigation loan to a 
        small business concern (as defined in section 3 of the Small 
        Business Act (15 U.S.C. 632)) that receives a loan under 
        section 7(b)(1)(A) of that Act (15 U.S.C. 636(b)(1)(A)) for the 
        damage or destruction, by reason of an incident of national 
        significance (as declared by the Secretary of Homeland 
        Security), of property owned by the small business concern.
            (2) Amount of loan.--The amount of a loan under paragraph 
        (1) shall not exceed 20 percent of the total amount of the cost 
        of the damage or destruction referred to in paragraph (1). The 
        total amount shall be calculated without regard for any costs 
        for which the small business concern is reimbursed under any 
        insurance policy or otherwise.
    (c) Applicability for Fiscal Year 2006 to Hurricanes Katrina and 
Rita.--
            (1) In general.--For fiscal year 2006, the Administrator--
                    (A) may carry out subsection (a) with respect to a 
                private nonprofit organization that was located, as of 
                August 28, 2005, in a hurricane-affected area; and
                    (B) may carry out subsection (b) with respect to a 
                small business concern that was located, as of August 
                28, 2005, in a hurricane-affected area, for damage or 
                destruction by reason of Hurricane Katrina or Hurricane 
                Rita.
            (2) Hurricane-affected area defined.--The term ``hurricane-
        affected area'' means a county or parish in the State of 
        Alabama, Mississippi, Louisiana, or Texas, that has been 
        designated by the Administrator of the Small Business 
        Administration as a disaster area by reason of Hurricane 
        Katrina or Hurricane Rita under disaster declaration 10176, 
        10177, 10178, 10179, 10180, 10181, 10203, 10204, 10205, or 
        10206.

SEC. 403. SMALL BUSINESS DEVELOPMENT CENTER PORTABILITY GRANTS.

    Section 21 of the Small Business Act (15 U.S.C.648) is amended in 
subsection (a)(4)(C)(viii)--
            (1) by striking ``as a result of a business or government 
        facility down sizing or closing, which has resulted in the loss 
        of jobs or small business instability'' and inserting ``as a 
        result of events that have resulted, or will result, in 
        business or government facility downsizing or closing''; and
            (2) by adding at the end the following: ``At the discretion 
        of the Administrator, awards in excess of the $100,000 limit 
        imposed by the preceding sentence may be made to recipients to 
        accommodate extraordinary occurrences having catastrophic 
        impact on the communities' small businesses.''.

SEC. 404. ASSISTANCE TO OUT-OF-STATE BUSINESSES.

    Section 21 of the Small Business Act (15 U.S.C. 648(b)(3)) is 
amended in subsection (b)(3) by adding at the end the following: ``The 
Administrator may also, in the Administrator's discretion, authorize a 
small business development center to provide such assistance to small 
businesses located outside the State without regard to geographic 
proximity where the small businesses are located in a disaster area 
declared under section 7(b)(2)(A).''

SEC. 405. ELIMINATION OF UNNECESSARY PROGRAMS.

    The following provisions of the Small Business Act are repealed:
            (1) Subsection (h) and (i) of section 7 (15 U.S.C. 636).
            (2) Section 24 (15 U.S.C. 651).
            (3) Section 25 (15 U.S.C. 652).

SEC. 406. TECHNICAL CORRECTION.

    Section 3 of the Small Business Act (15 U.S.C. 632) is amended in 
subsection (p)(4)(D)(iv) by striking ``base closures of redevelopment'' 
and inserting ``base closures or redevelopment''.

SEC. 407. COMBATING WASTE, FRAUD, AND ABUSE.

    (a) In General.--Section 16 of the Small Business Act (15 U.S.C. 
645) is amended--
            (1) in subsection (a)--
                    (A) by inserting after ``false'' the following: 
                ``or knowingly causes another to make a false 
                statement'';
                    (B) by inserting after ``this Act'' the following: 
                ``or the Small Business Investment Act of 1958''; and
                    (C) by striking ``$5,000'' and inserting 
                ``$250,000'';
            (2) in subsection (b)--
                    (A) by inserting after ``being'' the following: 
                ``an officer, agent, or employee of the Administration 
                or''; and
                    (B) by striking ``$10,000'' and inserting 
                ``$250,000'';
            (3) in subsection (c), by striking ``the Administration,'' 
        and all that follows through the period at the end and 
        inserting ``the Administration, or any property mortgaged or 
        pledged as security for any promissory note, or other evidence 
        of indebtedness, which has been given in order to obtain a loan 
        under this Act or the Small Business Investment Act of 1958, 
        shall be fined not more than $250,000 or imprisoned not more 
        than five years, or both; but if the value of such property 
        does not exceed $5,000, he shall be fined not more than $10,000 
        or imprisoned not more than one year, or both.''; and
            (4) in subsection (d)(2)(C), by inserting after ``(or any 
        successor regulation)'' the following: ``, or as specified in 
        part 145 of title 13, Code of Federal Regulations (or any 
        successor regulation),''.
    (b) Authority of Administration to Require Identification of 
Referral Agents and Packagers.--Section 5 of the Small Business Act (15 
U.S.C. 634) is amended in subsection (b)--
            (1) in paragraph (13) by striking ``and'' at the end;
            (2) in paragraph (14) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding after paragraph (14) the following:
            ``(15) require an individual who is a referral agent or 
        packager (as those terms are defined by the Administrator) who 
        provides assistance to a small business concern that applies 
        for a loan under section 7 of this Act, or a loan made under 
        the authority of title V of the Small Business Investment Act 
        of 1958, to provide to the Administrator the individual's name, 
        date of birth, and Social Security number.''.

SEC. 408. RELIEF AVAILABLE AGAINST ADMINISTRATOR.

    Section 5 of the Small Business Act (15 U.S.C. 634) is amended in 
subsection (b)(1) by striking ``but no attachment'' and all that 
follows through the semicolon at the end.

SEC. 409. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS.

    (a) In General.--Section 7 of the Small Business Act (15 U.S.C. 
636) is amended in subsection (b)(2)--
            (1) in the matter preceding subparagraph (A)--
                    (A) by inserting after ``small business concern'' 
                the following: ``, private nonprofit organization,''; 
                and
                    (B) by inserting after ``the concern'' the 
                following: ``, organization,''; and
            (2) in subparagraph (D) by inserting after ``small business 
        concerns'' the following: ``, private nonprofit 
        organizations,''.
    (b) Conforming Amendment.--Such section is further amended in 
subsection (c)(5)(C) by inserting after ``business'' the following: ``, 
organization,''.

SEC. 410. EXTENSION OF CO-SPONSORSHIP AUTHORITY.

    Section 132 of the Small Business Reauthorization and Manufacturing 
Assistance Act of 2004 (division K of Public Law 108-447; 118 Stat. 
3453; 15 U.S.C. 633 note) is amended in subsection (c) by striking 
``2006'' and inserting ``2010''.

SEC. 411. REGULATIONS ON SIZE STANDARDS OF FRANCHISEES.

    (a) Promulgation.--Not later than 180 days after the date of the 
enactment of this Act, the Administrator of the Small Business 
Administration shall repeal section 121.103(i) of title 13, Code of 
Federal Regulations (as in effect on the date of the enactment of this 
Act), and promulgate a new regulation, after opportunity for notice and 
comment, taking into account whether the franchisee or licensee--
            (1) retains the majority of its profits but not less than 
        51 percent;
            (2) bears the burdens of its losses;
            (3) shares no common ownership or management personnel with 
        the franchisor or licensor;
            (4) maintains daily control of its operations including 
        determining who its customers will be; and
            (5) is subject to excessive restrictions on the sale of its 
        business given the interest of the franchisor or licensor in 
        protecting the goodwill of its trademarks, tradenames, or 
        service marks.
    (b) Failure to Promulgate New Standard.--If the Administrator fails 
to comply with subsection (a), any franchisee or licensee shall be 
treated as small for purposes of the Small Business Act until the 
Administrator has issued a final regulation as required under 
subsection (a).

SEC. 412. DISTRICT DIRECTORS PROHIBITED FROM BEING INVOLVED IN 
              SELECTION OF SBDC DIRECTORS.

    Section 21(c)(2) of the Small Business Act (15 U.S.C. 648(c)(2)) is 
amended by amending subparagraph (A) to read as follows:
                    ``(A) a full-time staff, including a full-time 
                director who--
                            ``(i) shall have the authority to make 
                        expenditures under the center's budget and 
                        shall manage the program activities; and
                            ``(ii) shall be selected only by the 
                        recipient of the grant funds allocated pursuant 
                        to subsection (a) of this section and approved 
                        by the Associate Administrator of the Office of 
                        Small Business Development Centers, through a 
                        process under which employees in district and 
                        regional offices of the Administration, 
                        including District Directors and Regional 
                        Administrators, may provide advice to the 
                        Associate Administrator but shall have no 
                        authority to select, approve, or disapprove of 
                        any person as full-time director;''.
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