105TH CONGRESS

1ST SESSION S. 1139

AMENDMENT
In the House of Representatives, U. S.,

September 29, 1997.

Resolved, That the bill from the Senate (S. 1139) entitled ‘‘An Act to reauthorize the programs of the Small Business Administration, and for other purposes.’’, do pass with

the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘Small Business Programs Reauthorization and Amend4 ments Acts of 1997’’.

5 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

TITLE I—AUTHORIZATIONS

Sec. 101. Authorizations.

TITLE II—FINANCIAL PROGRAMS

Subtitle A—General Business Loans

Sec. 201. Securitization regulations.

Sec. 202. Background check of loan applicants.

Sec. 203. Report on increased lender approval, servicing, foreclosure, liquidation,

and litigation of 7(a) loans.

Sec. 204. Completion of planning for loan monitoring system.

Subtitle B—Certified Development Company Program

Sec. 221. Reauthorization of fees.

Sec. 222. PCLP participation.

Sec. 223. PCLP eligibility.

Sec. 224. Loss reserves.
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Sec. 225. Goals.

Sec. 226. Technical amendments.

Sec. 227. Promulgation of regulations.

Sec. 228. Technical amendment.

Sec. 229. Repeal.

Sec. 230. Loan servicing and liquidation.

Sec. 231. Use of proceeds.

Sec. 232. Lease of property.

Sec. 233. Seller financing.

Sec. 234. Preexisting conditions.

Subtitle C—Small Business Investment Company Program

Sec. 241. 5-year commitments.

Sec. 242. Program reform.

Sec. 243. Fees.

Sec. 244. Examination fees.

Subtitle D—Microloan Program

Sec. 251. Microloan program extension.

Sec. 252. Supplemental microloan grants.

TITLE III—WOMEN’S BUSINESS ENTERPRISES

Sec. 301. Reports.

Sec. 302. Council duties.

Sec. 303. Council membership.

Sec. 304. Authorization of appropriations.

Sec. 305. Women’s business centers.

Sec. 306. Office of Women’s Business Ownership.

TITLE IV—COMPETITIVENESS PROGRAM

Sec. 401. Program term.

Sec. 402. Monitoring agency performance.

Sec. 403. Reports to Congress.

Sec. 404. Small business participation in dredging.

Sec. 405. Technical amendment.

TITLE V—MISCELLANEOUS PROVISIONS

Sec. 501. Small business development centers.

Sec. 502. Small business export promotion.

Sec. 503. Pilot preferred surety bond guarantee program extension.

Sec. 504. Very small business concerns.

Sec. 505. Extension of cosponsorship authority.

Sec. 506. Trade assistance program for small business concerns harmed by

NAFTA.

TITLE VI—SERVICE DISABLED VETERANS

Sec. 601. Purposes.

Sec. 602. Definitions.

Sec. 603. Report by Small Business Administration.

Sec. 604. Information collection.

Sec. 605. State of small business report.

Sec. 606. Loans to veterans.
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Sec. 607. Entrepreneurial training, counseling, and management assistance.

Sec. 608. Grants for eligible veterans outreach programs.

Sec. 609. Outreach for eligible veterans.

TITLE VII—SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM

Sec. 701. Amendments.

1 TITLE I—AUTHORIZATIONS

2 SEC. 101. AUTHORIZATIONS.

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

4 note) is amended by striking subsections (l) through (q) and

5 inserting the following:

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

7 fiscal year 1998:

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

9 the Administration is authorized to make—

10 ‘‘(A) $40,000,000 in technical assistance

11 grants, as provided in section 7(m); and

12 ‘‘(B) $60,000,000 in loans, as provided in

13 section 7(m).

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

15 the Administration is authorized to make

16 $15,040,000,000 in deferred participation loans and

17 other financings. Of such sum, the Administration is

18 authorized to make—

19 ‘‘(A) $11,000,000,000 in general business

20 loans as provided in section 7(a);

21 ‘‘(B) $3,000,000,000 in financings as pro22 vided in section 7(a)(13) of this Act and section
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1 504 of the Small Business Investment Act of

2 1958;

3 ‘‘(C) $1,000,000,000 in loans as provided in

4 section 7(a)(21); and

5 ‘‘(D) $40,000,000 in loans as provided in

6 section 7(m).

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

8 the Small Business Investment Act of 1958, the Ad9 ministration is authorized to make—

10 ‘‘(A) $600,000,000 in purchases of partici11 pating securities; and

12 ‘‘(B) $500,000,000 in guarantees of deben13 tures.

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

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

16 the Administration is authorized to enter into guar17 antees not to exceed $2,000,000,000, of which not

18 more than $650,000,000 may be in bonds approved

19 pursuant to section 411(a)(3) of that Act.

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

21 grants or enter into cooperative agreements—

22 ‘‘(A) for the Service Corps of Retired Execu23 tives program authorized by section 8(b)(1),

24 $4,000,000; and
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1 ‘‘(B) for activities of small business develop2 ment centers pursuant to section 21(c)(3)(G),

3 $15,000,000, to remain available until expended.

4 ‘‘(m)(1) There are authorized to be appropriated to the

5 Administration for fiscal year 1998 such sums as may be

6 necessary to carry out this Act, including administrative

7 expenses and necessary loan capital for disaster loans pur8 suant to section 7(b), and to carry out the Small Business

9 Investment Act of 1958, including salaries and expenses of

10 the Administration.

11 ‘‘(2) Notwithstanding paragraph (1), for fiscal year

12 1998—

13 ‘‘(A) no funds are authorized to be provided to

14 carry out the loan program authorized by section

15 7(a)(21) except by transfer from another Federal de16 partment or agency to the Administration, unless the

17 program level authorized for general business loans

18 under subsection (l)(2)(A) is fully funded; and

19 ‘‘(B) the Administration may not approve loans

20 on behalf of the Administration or on behalf of any

21 other department or agency, by contract or otherwise,

22 under terms and conditions other than those specifi23 cally authorized under this Act or the Small Business

24 Investment Act of 1958, except that it may approve
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1 loans under section 7(a)(21) of this Act in gross

2 amounts of not more than $1,250,000.

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

4 fiscal year 1999:

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

6 the Administration is authorized to make—

7 ‘‘(A) $60,000,000 in technical assistance

8 grants as provided in section 7(m); and

9 ‘‘(B) $60,000,000 in loans, as provided in

10 section 7(m).

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

12 the Administration is authorized to make

13 $16,540,000,000 in deferred participation loans and

14 other financings. Of such sum, the Administration is

15 authorized to make—

16 ‘‘(A) $12,000,000,000 in general business

17 loans as provided in section 7(a);

18 ‘‘(B) $3,500,000,000 in financings as pro19 vided in section 7(a)(13) of this Act and section

20 504 of the Small Business Investment Act of

21 1958;

22 ‘‘(C) $1,000,000,000 in loans as provided in

23 section 7(a)(21); and

24 ‘‘(D) $40,000,000 in loans as provided in

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

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

4 ‘‘(A) $700,000,000 in purchases of partici5 pating securities; and

6 ‘‘(B) $650,000,000 in guarantees of deben7 tures.

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

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

10 the Administration is authorized to enter into guar11 antees not to exceed $2,000,000,000, of which not

12 more than $650,000,000 may be in bonds approved

13 pursuant to section 411(a)(3) of that Act.

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

15 grants or enter cooperative agreements—

16 ‘‘(A) for the Service Corps of Retired Execu17 tives program authorized by section 8(b)(1),

18 $4,500,000; and

19 ‘‘(B) for activities of small business develop20 ment centers pursuant to section 21(c)(3)(G), not

21 to exceed $15,000,000, to remain available until

22 expended.

23 ‘‘(o)(1) There are authorized to be appropriated to the

24 Administration for fiscal year 1999 such sums as may be

25 necessary to carry out this Act, including administrative
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1 expenses and necessary loan capital for disaster loans pur2 suant to section 7(b), and to carry out the Small Business

3 Investment Act of 1958, including salaries and expenses of

4 the Administration.

5 ‘‘(2) Notwithstanding paragraph (1), for fiscal year

6 1999—

7 ‘‘(A) no funds are authorized to be provided to

8 carry out the loan program authorized by section

9 7(a)(21) except by transfer from another Federal de10 partment or agency to the Administration, unless the

11 program level authorized for general business loans

12 under subsection (n)(2)(A) is fully funded; and

13 ‘‘(B) the Administration may not approve loans

14 on behalf of the Administration or on behalf of any

15 other department or agency, by contract or otherwise,

16 under terms and conditions other than those specifi17 cally authorized under this Act or the Small Business

18 Investment Act of 1958, except that it may approve

19 loans under section 7(a)(21) of this Act in gross

20 amounts of not more than $1,250,000.

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

22 fiscal year 2000:

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

24 the Administration is authorized to make—
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1 ‘‘(A) $75,000,000 in technical assistance

2 grants as provided in section 7(m); and

3 ‘‘(B) $60,000,000 in direct loans, as pro4 vided in section 7(m).

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

6 the Administration is authorized to make

7 $19,040,000,000 in deferred participation loans and

8 other financings. Of such sum, the Administration is

9 authorized to make—

10 ‘‘(A) $13,500,000,000 in general business

11 loans as provided in section 7(a);

12 ‘‘(B) $4,500,000,000 in financings as pro13 vided in section 7(a)(13) of this Act and section

14 504 of the Small Business Investment Act of

15 1958;

16 ‘‘(C) $1,000,000,000 in loans as provided in

17 section 7(a)(21); and

18 ‘‘(D) $40,000,000 in loans as provided in

19 section 7(m).

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

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

23 ‘‘(A) $850,000,000 in purchases of partici24 pating securities; and
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1 ‘‘(B) $700,000,000 in guarantees of deben2 tures.

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

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

5 the Administration is authorized to enter into guar6 antees not to exceed $2,000,000,000, of which not

7 more than $650,000,000 may be in bonds approved

8 pursuant to the provisions of section 411(a)(3) of that

9 Act.

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

11 grants or enter cooperative agreements—

12 ‘‘(A) for the Service Corps of Retired Execu13 tives program authorized by section 8(b)(1),

14 $5,000,000; and

15 ‘‘(B) for activities of small business develop16 ment centers pursuant to section 21(c)(3)(G), not

17 to exceed $15,000,000, to remain available until

18 expended.

19 ‘‘(q)(1) There are authorized to be appropriated to the

20 Administration for fiscal year 2000 such sums as may be

21 necessary to carry out this Act, including administrative

22 expenses and necessary loan capital for disaster loans pur23 suant to section 7(b), and to carry out the provisions of

24 the Small Business Investment Act of 1958, including sala25 ries and expenses of the Administration.
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1 ‘‘(2) Notwithstanding paragraph (1), for fiscal year

2 2000—

3 ‘‘(A) no funds are authorized to be provided to

4 carry out the loan program authorized by section

5 7(a)(21) except by transfer from another Federal de6 partment or agency to the Administration, unless the

7 program level authorized for general business loans

8 under subsection (p)(2)(A) is fully funded; and

9 ‘‘(B) the Administration may not approve loans

10 on behalf of the Administration or on behalf of any

11 other department or agency, by contract or otherwise,

12 under terms and conditions other than those specifi13 cally authorized under this Act or the Small Business

14 Investment Act of 1958, except that it may approve

15 loans under section 7(a)(21) of this Act in gross

16 amounts of not more than $1,250,000.’’.

17 TITLE II—FINANCIAL PROGRAMS

18 Subtitle A—General Business Loans

19 SEC. 201. SECURITIZATION REGULATIONS.

20 The Administrator shall promulgate final regulations

21 permitting bank and non-bank lenders to sell or securitize

22 the non-guaranteed portion of loans made under section

23 7(a) of the Small Business Act (15 U.S.C. 636(a)). Such

24 regulations shall be issued within 90 days of the date of

25 enactment of this Act, and shall allow securitizations to
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1 proceed as regularly as is possible within the bounds of pru2 dent and sound financial management practice.

3 SEC. 202. BACKGROUND CHECK OF LOAN APPLICANTS.

4 Section 7(a)(1) of the Small Business Act (15 U.S.C.

5 636(a)(1)) is amended by striking ‘‘(1)’’ and inserting the

6 following:

7 ‘‘(1)(A) CREDIT ELSEWHERE.—’’, and by adding

8 the following new paragraph at the end:

9 ‘‘(B) BACKGROUND CHECKS.—Prior to the ap10 proval of any loan made pursuant to this subsection,

11 or section 503 of the Small Business Investment Act,

12 the Administrator shall verify the applicant’s crimi13 nal background, or lack thereof, through the best

14 available means, including, if possible, use of the Na15 tional Crime Information Center computer system at

16 the Federal Bureau of Investigation.’’.

17 SEC. 203. REPORT ON INCREASED LENDER APPROVAL,

18 SERVICING, FORECLOSURE, LIQUIDATION,

19 AND LITIGATION OF 7(a) LOANS.

20 (a) Within six months of the date of enactment of this

21 act the Administrator shall report on action taken and

22 planned for future reliance on private sector lender re23 sources to originate, approve, close, service, liquidate, fore24 close, and litigate loans made under Section 7(a) of the

25 Small Business Act. The report should address administra-
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1 tive and other steps necessary to achieve these results, in2 cluding—

3 (1) streamlining the process for approving lend4 ers and standardizing requirements;

5 (2) establishing uniform reporting requirements

6 using on-line automated capabilities to the maximum

7 extent feasible;

8 (3) reducing paperwork through automation,

9 simplified forms or incorporation of lender’s forms;

10 (4) providing uniform standards for approval,

11 closing, servicing, foreclosure, and liquidation;

12 (5) promulgating new regulations or amending

13 existing ones;

14 (6) establishing a timetable for implementing the

15 plan for reliance on private sector lenders;

16 (7) implementing organizational changes at

17 SBA; and

18 (8) estimating the annual savings that would

19 occur as a result of implementation.

20 (b) In preparing the report the Administrator shall

21 seek the views and consult with, among others, 7(a) borrow22 ers and lenders, small businesses who are potential program

23 participants, financial institutions who are potential pro24 gram lenders, and representative industry associations,

25 such as the U. S. Chamber of Commerce, the American
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1 Bankers Association, the National Association of Govern2 ment Guaranteed Lenders and the Independent Bankers As3 sociation of America.

4 SEC. 204. COMPLETION OF PLANNING FOR LOAN MONITOR5 ING SYSTEM.

6 (a) The Administrator shall perform and complete the

7 planning needed to serve as the basis for funding the devel8 opment and implementation of computerized loan monitor9 ing system, including—

10 (1) fully defining the system requirement using

11 on-line, automated capabilities to the extent feasible;

12 (2) identifying all data inputs and outputs nec13 essary for timely report generation;

14 (3) benchmark loan monitoring business proc15 esses and systems against comparable industry proc16 esses and, if appropriate, simplify or redefine work

17 processes based on these benchmarks;

18 (4) determine data quality standards and control

19 systems for ensuring information accuracy;

20 (5) identify an acquisition strategy and work in21 crements to completion;

22 (6) analyze the benefits and costs of alternatives

23 and use to demonstrate the advantage of the final

24 project;
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1 (7) ensure that the proposed information system

2 is consistent with the agency’s information architec3 ture; and

4 (8) estimate the cost to system completion, iden5 tifying the essential cost element.

6 (b) Six months from the date of enactment of this Act,

7 the Administrator shall report to the House and Senate

8 Committees on Small Business pursuant to the require9 ments of subsection (a), and shall also submit a copy of

10 the report to the General Accounting Office, which shall

11 evaluate the report for compliance with subsection (a) and

12 shall submit such evaluation to both Committees no later

13 than 28 days after receipt of the report from the Small

14 Business Administration. None of the funds provided for

15 the purchase of the loan monitoring system may be ex16 pended until the requirements of this section have been sat17 isfied.

18 Subtitle B—Certified Development

19 Company Program

20 SEC. 221. REAUTHORIZATION OF FEES.

21 Section 503 of the Small Business Investment Act of

22 1958 (15 U.S.C. 697) is amended—

23 (1) by striking subsection (b)(7)(A) and inserting

24 the following:
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1 ‘‘(A) assesses and collects a fee, which shall

2 be payable by the borrower, in an amount equal

3 to 0.9375 percent per year of the outstanding

4 balance of the loan; and’’;

5 (2) by striking from subsection (d)(2) ‘‘equal to

6 50 basis points’’ and inserting ‘‘equal to not more

7 than 50 basis points,’’;

8 (3) by adding the following at the end of sub9 section (d)(2): ‘‘The amount of the fee authorized here10 in shall be established annually by the Administra11 tion in the minimal amount necessary to reduce the

12 cost (as that term is defined in section 502 of the Fed13 eral Credit Reform Act of 1990) to the Administra14 tion of purchasing and guaranteeing debentures under

15 this Act to zero.’’; and

16 (4) by striking from subsection (f) ‘‘1997’’ and

17 inserting ‘‘2000’’.

18 SEC. 222. PCLP PARTICIPATION.

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

20 of 1958 (15 U.S.C. 697e(a)) is amended by striking ‘‘not

21 more than 15’’.

22 SEC. 223. PCLP ELIGIBILITY.

23 Section 508(b)(2) of the Small Business Investment

24 Act of 1958 (15 U.S.C. 697e(b)(2)) is amended by striking

25 paragraphs (A) and (B) and inserting:
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1 ‘‘(A) is an active certified development com2 pany in good standing and has been an active

3 participant in the accredited lenders program

4 during the entire 12-month period preceding the

5 date on which the company submits an applica6 tion under paragraph (1), except that the Ad7 ministration may waive this requirement if the

8 company is qualified to participate in the ac9 credited lenders program;

10 ‘‘(B) has a history (i) of submitting to the

11 Administration adequately analyzed debenture

12 guarantee application packages and (ii) of prop13 erly closing section 504 loans and servicing its

14 loan portfolio; and’’.

15 SEC. 224. LOSS RESERVES.

16 Section 508(c) of the Small Business Investment Act

17 of 1958 (15 U.S.C. 697e(c)) is amended to read as follows:

18 ‘‘(c) LOSS RESERVE.—

19 ‘‘(1) ESTABLISHMENT.—A company designated

20 as a premier certified lender shall establish a loss re21 serve for financing approved pursuant to this section.

22 ‘‘(2) AMOUNT.—The amount of the loss reserve

23 shall be equal to 10 percent of the amount of the com24 pany’s exposure as determined under subsection

25 (b)(2)(C).
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1 ‘‘(3) ASSETS.—The loss reserve shall be com2 prised of any combination of the following types of

3 assets:

4 ‘‘(A) segregated funds on deposit in an ac5 count or accounts with a federally insured depos6 itory institution or institutions selected by the

7 company, subject to a collateral assignment in

8 favor of, and in a format acceptable to, the Ad9 ministration; or

10 ‘‘(B) irrevocable letter or letters of credit,

11 with a collateral assignment in favor of, and a

12 commercially reasonable format acceptable to,

13 the Administration.

14 ‘‘(4) CONTRIBUTIONS.—The company shall make

15 contributions to the loss reserve, either cash or letters

16 of credit as provided above, in the following amounts

17 and at the following intervals:

18 ‘‘(A) 50 percent when a debenture is closed;

19 ‘‘(B) 25 percent additional not later than 1

20 year after a debenture is closed; and

21 ‘‘(C) 25 percent additional not later than 2

22 years after a debenture is closed.

23 ‘‘(5) REPLENISHMENT.—If a loss has been sus24 tained by the Administration, any portion of the loss

25 reserve, and other funds provided by the premier com-
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1 pany as necessary, may be used to reimburse the Ad2 ministration for the company’s 10 percent share of

3 the loss as provided in subsection (b)(2)(C). If the

4 company utilizes the reserve, within 30 days it shall

5 replace an equivalent amount of funds.

6 ‘‘(6) DISBURSEMENTS.—The Administration

7 shall allow the certified development company to

8 withdraw from the loss reserve amounts attributable

9 to any debenture which has been repaid.’’.

10 SEC. 225. GOALS.

11 Section 508 of the Small Business Investment Act of

12 1958 (15 U.S.C. 697e) is amended by inserting the follow13 ing after subsection (d) and by redesignating subsections

14 (e) through (i) as (f) through (j):

15 ‘‘(e) PROGRAM GOALS.—Certified development compa16 nies participating in this program shall establish a goal

17 of processing 50 percent of their loan applications for sec18 tion 504 assistance pursuant to the premier certified lender

19 program authorized in this section.’’.

20 SEC. 226. TECHNICAL AMENDMENTS.

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

22 of 1958 (15 U.S.C. 697(g)) is amended—

23 (1) in subsection (g), as redesignated herein, is

24 amended by striking ‘‘State or local’’ and inserting

25 ‘‘certified’’;
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1 (2) in subsection (h), as redesignated herein—

2 (A) by striking ‘‘EFFECT OF SUSPEN3 SION OR DESIGNATION’’ and inserting ‘‘EF4 FECT OF SUSPENSION OR REVOCATION’’;

5 and

6 (B) by striking ‘‘under subsection (f)’’ and

7 inserting ‘‘under subsection (g)’’.

8 SEC. 227. PROMULGATION OF REGULATIONS.

9 Section 508(i) of the Small Business Investment Act

10 of 1958 (15 U.S.C. 697e(i)), as redesignated herein, is

11 amended to read as follows:

12 ‘‘(i) REGULATIONS.—Not later than 90 days after the

13 date of enactment of this section, the Administration shall

14 promulgate regulations to carry out this section. Not later

15 than 120 days after the date of enactment, the Administra16 tion shall issue program guidelines and implement the

17 changes made herein.’’.

18 SEC. 228. TECHNICAL AMENDMENT.

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

20 of 1958 (15 U.S.C. 697e(j)), as redesignated herein, is

21 amended by striking ‘‘other lenders’’ and inserting ‘‘other

22 lenders, specifically comparing default rates and recovery

23 rates on liquidations’’.
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1 SEC. 229. REPEAL.

2 Section 217(b) of Public Law 103–403 (108 Stat.

3 4185) is repealed.

4 SEC. 230. LOAN SERVICING AND LIQUIDATION.

5 Section 508(d)(1) of the Small Business Investment

6 Act of 1958 (15 U.S.C. 697e(d)) is amended by striking ‘‘to

7 approve loans’’ and inserting ‘‘to approve, authorize, close,

8 service, foreclose, litigate, and liquidate loans’’.

9 SEC. 231. USE OF PROCEEDS.

10 Section 502(1) of the Small Business Investment Act

11 of 1958 (15 U.S.C. 696(1)) is amended to read as follows:

12 ‘‘(1) The proceeds of any such loan shall be used

13 solely by such borrower or borrowers to assist an

14 identifiable small-business or businesses and for a

15 sound business purpose approved by the Administra16 tion.’’.

17 SEC. 232. LEASE OF PROPERTY.

18 Section 502 of the Small Business Investment Act of

19 1958 (15 U.S.C. 696) is amended by adding the following

20 new subsection:

21 ‘‘(5) Not to exceed 25 percent of any project may

22 be permanently leased by the assisted small business:

23 Provided, That the assisted small business shall be re24 quired to occupy and use not less than 55 percent of

25 the space in the project after the execution of any

26 leases authorized in this section.’’.
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1 SEC. 233. SELLER FINANCING AND COLLATERALIZATION.

2 Section 502(3) of the Small Business Investment Act

3 of 1958 (15 U.S.C. 696(3)) is amended by inserting the fol4 lowing new subparagraphs:

5 ‘‘(D) SELLER FINANCING.—Seller provided

6 financing may be used to meet the requirements

7 of—

8 ‘‘(i) paragraph (B), if the seller subor9 dinates his interest in the property to the

10 debenture guaranteed by the Administra11 tion; and

12 ‘‘(ii) not to exceed 50 percent of the

13 amounts required by paragraph (C).

14 ‘‘(E) COLLATERALIZATION.—The collateral

15 provided by the small business concern generally

16 shall include a subordinate lien position on the

17 property being financed under this title, and is

18 only one of the factors to be evaluated in the

19 credit determination. Additional collateral shall

20 be required only if the Administration deter21 mines, on a case by case basis, that additional

22 security is necessary to protect the interest of the

23 Government.’’.
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1 SEC. 234. PREEXISTING CONDITIONS.

2 Section 502 of the Small Business Investment Act of

3 1958 (15 U.S.C. 696) is amended by adding the following

4 new paragraph:

5 ‘‘(6) Any loan authorized under this section shall

6 not be denied or delayed for approval by the Adminis7 tration due to concerns over preexisting environ8 mental conditions: Provided, That the development

9 company provides the Administration a letter issued

10 by the appropriate State or Federal environmental

11 protection agency specifically stating that the envi12 ronmental agency will not institute any legal proceed13 ings against the borrower or, in the event of a default,

14 the development company or the Administration

15 based on the preexisting environmental conditions:

16 Provided further, That the borrower shall agree to

17 provide environmental agencies access to the property

18 for any reasonable and necessary remediation efforts

19 or inspections.’’.

20 Subtitle C—Small Business

21 Investment Company Program

22 SEC. 241. 5-YEAR COMMITMENTS.

23 Section 20(a)(2) of the Small Business Act (15 U.S.C.

24 631 note) is amended in the last sentence by striking ‘‘the

25 following fiscal year’’ and inserting ‘‘any one or more of

26 the 4 subsequent fiscal years’’.
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1 SEC. 242. PROGRAM REFORM.

2 (a) TAX DISTRIBUTIONS.—Section 303(g)(8) of the

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

4 683(g)(8)) is amended in the first sentence—

5 (1) by inserting ‘‘, for each calendar quarter or

6 once annually, as the company may elect,’’ after ‘‘the

7 company may’’; and

8 (2) by inserting ‘‘for the preceding quarter or

9 year’’ before the period.

10 (b) LEVERAGE FEE.—Section 303(i) of the Small

11 Business Investment Act of 1958 (15 U.S.C. 683(i)) is

12 amended by striking ‘‘, payable upon’’ and all that follows

13 before the period and inserting the following: ‘‘in the follow14 ing manner: 1 percent upon the date on which the Adminis15 tration enters into any commitment for such leverage with

16 the licensee, and the balance of 2 percent (or 3 percent in

17 which case in which no commitment has been entered into

18 by the Administration) on the date on which the leverage

19 is drawn by the licensee’’.

20 (c) PERIODIC ISSUANCE OF GUARANTEES AND TRUST

21 CERTIFICATES.—Section 320 of the Small Business Invest22 ment Act of 1958 (15 U.S.C. 687m) is amended by striking

23 ‘‘three months’’ and inserting ‘‘6 months’’.

24 (d) INDEXING FOR LEVERAGE.—Section 303 of the

25 Small Business Investment Act of 1958 (15 U.S.C. 683) is

26 amended—
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1 (1) in subsection (b)—

2 (A) in paragraph (2), by adding at the end

3 the following:

4 ‘‘(D)(i) The dollar amounts in subpara5 graphs (A), (B), and (C) shall be adjusted annu6 ally to reflect increases in the Consumer Price

7 Index established by the Bureau of Labor Statis8 tics of the Department of Labor.

9 ‘‘(ii) The initial adjustments made under

10 this subparagraph after the date of enactment of

11 the Small Business Reauthorization Act of 1997

12 shall reflect only increases from March 31,

13 1993.’’; and

14 (B) by striking paragraph (4) and inserting

15 the following:

16 ‘‘(4) MAXIMUM AGGREGATE AMOUNT OF LEVER17 AGE.—

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

19 subparagraph (B), the aggregate amount of out20 standing leverage issued to any company or com21 panies that are commonly controlled (as deter22 mined by the Administrator) may not exceed

23 $90,000,000, as adjusted annually for increases

24 in the Consumer Price Index.
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1 ‘‘(B) EXCEPTIONS.—The Administrator

2 may, on a case-by-case basis—

3 ‘‘(i) approve an amount of leverage

4 that exceeds the amount described in sub5 paragraph (A) for companies under com6 mon control; and

7 ‘‘(ii) impose such additional terms and

8 conditions as the Administrator determines

9 to be appropriate to minimize the risk of

10 loss to the Administration in the event of

11 default.

12 ‘‘(C) APPLICABILITY OF OTHER PROVI13 SIONS.—Any leverage that is issued to a com14 pany or companies commonly controlled in an

15 amount that exceeds $90,000,000, whether as a

16 result of an increase in the Consumer Price

17 Index or a decision of the Administrator, is sub18 ject to subsection (d).’’; and

19 (2) by striking subsection (d) and inserting the

20 following:

21 ‘‘(d) REQUIRED CERTIFICATIONS.—

22 ‘‘(1) IN GENERAL.—The Administrator shall re23 quire each licensee, as a condition of approval of an

24 application for leverage, to certify in writing—
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1 ‘‘(A) for licensees with leverage less than or

2 equal to $90,000,000, that not less than 20 per3 cent of the licensee’s aggregate dollar amount of

4 financings will be provided to smaller enter5 prises; and

6 ‘‘(B) for licensees with leverage in excess of

7 $90,000,000, that, in addition to satisfying the

8 requirements of subparagraph (A), 100 percent

9 of the licensee’s aggregate dollar amount of

10 financings made in whole or in part with lever11 age in excess of $90,000,000 will be provided to

12 smaller enterprises as defined in section 103(12).

13 ‘‘(2) MULTIPLE LICENSEES.—Multiple licensees

14 under common control (as determined by the Admin15 istrator) shall be considered to be a single licensee for

16 purposes of determining both the applicability of and

17 compliance with the investment percentage require18 ments of this subsection.’’.

19 SEC. 243. FEES.

20 Section 301 of the Small Business Investment Act of

21 1958 (15 U.S.C. 681) is amended by adding the following:

22 ‘‘(d) FEES.—

23 ‘‘(1) IN GENERAL.—The Administration may

24 prescribe fees to be paid by each applicant for a li-
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1 cense to operate as a small business investment com2 pany under this Act.

3 ‘‘(2) USE OF AMOUNTS.—Amounts collected pur4 suant to this subsection shall be—

5 ‘‘(A) deposited in the account for salaries

6 and expenses of the Administration; and

7 ‘‘(B) available without further appropria8 tion solely to cover contracting and other admin9 istrative costs related to licensing.’’.

10 SEC. 244. EXAMINATION FEES.

11 Section 310(b) of the Small Business Investment Act

12 of 1958 (15 U.S.C. 687b(b)) is amended by inserting after

13 the first sentence the following: ‘‘Fees collected under this

14 subsection shall be deposited in the account for salaries and

15 expenses of the Administration, and are authorized to be

16 appropriated solely to cover the costs of examinations and

17 other program oversight activities.’’.

18 Subtitle D—Microloan Program

19 SEC. 251. MICROLOAN PROGRAM EXTENSION.

20 (a) LOAN LIMITS.—Section 7(m)(3)(C) of the Small

21 Business Act (15 U.S.C. 636(m)(3)(C)) is amended by strik22 ing ‘‘$2,500,000’’ and inserting ‘‘$3,500,000’’.

23 (b) LOAN LOSS RESERVE FUND.—Section 7(m)(3)(D)

24 of the Small Business Act (15 U.S.C. 636(m)(3)(D)) is
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1 amended by striking clauses (i) and (ii), and inserting the

2 following:

3 ‘‘(i) during the initial 5 years of the

4 intermediary’s participation in the pro5 gram under this subsection, at a level equal

6 to not more than 15 percent of the outstand7 ing balance of the notes receivable owed to

8 the intermediary; and

9 ‘‘(ii) in each year of participation

10 thereafter, at a level equal to not more than

11 the greater of—

12 ‘‘(I) 2 times an amount reflecting

13 the total losses of the intermediary as

14 a result of participation in the pro15 gram under this subsection, as deter16 mined by the Administrator on a case17 by-case basis; or

18 ‘‘(II) 10 percent of the outstand19 ing balance of the notes receivable owed

20 to the intermediary.’’.

21 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

22 7(m) of the Small Business Act (15 U.S.C. 636(m)) is

23 amended—

24 (1) in the subsection heading, by striking ‘‘DEM25 ONSTRATION’’;
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1 (2) by striking ‘‘Demonstration’’ each place that

2 term appears;

3 (3) by striking ‘‘demonstration’’ each place that

4 term appears; and

5 (4) in paragraph (12), by striking ‘‘during fiscal

6 years 1995 through 1997’’ and inserting ‘‘during fis7 cal years 1998 through 2000’’.

8 SEC. 252. SUPPLEMENTAL MICROLOAN GRANTS.

9 Section 7(m)(4) of the Small Business Act (15 USC

10 636 (m)(4)) is amended by adding the following:

11 ‘‘(F)(i) The Administration may accept and

12 disburse funds received from another Federal de13 partment or agency to provide additional assist14 ance to individuals who are receiving assistance

15 under the State program funded under part A of

16 title IV of the Social Security Act (42 USC 601

17 et seq.), or under any comparable State-funded

18 means-tested program of assistance for low-in19 come individuals.

20 ‘‘(ii) Grant proceeds are in addition to

21 other grants provided by this subsection and

22 shall not require the contribution of matching

23 amounts to be eligible. The grants may be used

24 to pay or reimburse a portion of child care and

25 transportation costs of individuals described in
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1 clause (i) and for marketing, management and

2 technical assistance.

3 ‘‘(iii) Prior to accepting and distributing

4 any such grants, the Administration shall enter

5 a Memorandum of Understanding with the de6 partment or agency specifying the terms and

7 conditions of the grants and providing appro8 priate monitoring of expenditures by the

9 intermediary and ultimate grant recipient to in10 sure compliance with the purpose of the grant.

11 ‘‘(iv) On January 31, 1999, and annually

12 thereafter, the Administration shall submit to the

13 Committees on Small Business of the House of

14 Representatives and the Senate a report on any

15 monies distributed pursuant to the provisions of

16 this paragraph.

17 ‘‘(v) No funds are authorized to be provided

18 to carry out the grant program authorized by

19 this paragraph (F) except by transfer from an20 other Federal department or agency to the Ad21 ministration.’’.
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1 TITLE III—WOMEN’S BUSINESS

2 ENTERPRISES

3 SEC. 301. REPORTS.

4 Section 404 of the Women’s Business Ownership Act

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

6 (1) by inserting ‘‘, through the Small Business

7 Administration,’’ after ‘‘transmit’’;

8 (2) by striking paragraph (1) and redesignating

9 paragraphs (2) through (4) as paragraphs (1)

10 through (3), respectively; and

11 (3) in paragraph (1), as redesignated, by insert12 ing before the semicolon the following: ‘‘, including a

13 status report on the progress of the Interagency Com14 mittee in meeting its responsibilities and duties under

15 section 402(a)’’.

16 SEC. 302. COUNCIL DUTIES.

17 Section 406 of the Women’s Business Ownership Act

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

19 (1) in subsection (c), by inserting after ‘‘Admin20 istrator’’ the following: ‘‘(through the Assistant Ad21 ministrator for the Office of Women’s Business Own22 ership)’’; and

23 (2) in subsection (d)—

24 (A) in paragraph (4), by striking ‘‘and’’ at

25 the end;
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1 (B) in paragraph (5), by striking the period

2 at the end and inserting ‘‘; and’’; and

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

4 ‘‘(6) submit to the President and to the Commit5 tee on Small Business of the Senate and the Commit6 tee on Small Business of the House of Representatives,

7 an annual report containing—

8 ‘‘(A) a detailed description of the activities

9 of the council, including a status report on the

10 Council’s progress toward meeting its duties out11 lined in subsections (a) and (d) of section 406;

12 ‘‘(B) the findings, conclusions, and rec13 ommendations of the Council; and

14 ‘‘(C) the Council’s recommendations for

15 such legislation and administrative actions as

16 the Council considers appropriate to promote the

17 development of small business concerns owned

18 and controlled by women.

19 ‘‘(e) SUBMISSION OF REPORTS.—The annual report

20 required by subsection (d) shall be submitted not later than

21 90 days after the end of each fiscal year.’’.

22 SEC. 303. COUNCIL MEMBERSHIP.

23 Section 407 of the Women’s Business Ownership Act

24 of 1988 (15 U.S.C. 631 note) is amended—
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1 (1) in subsection (a), by striking ‘‘and Amend2 ments Act of 1994’’ and inserting ‘‘Act of 1997’’;

3 (2) in subsection (b)—

4 (A) by striking ‘‘and Amendments Act of

5 1994’’ and inserting ‘‘Act of 1997’’;

6 (B) by inserting after ‘‘the Administrator

7 shall’’ the following: ‘‘, after receiving the rec8 ommendations of the Chair and the Ranking

9 Member of the Minority of the Committees on

10 Small Business of the House of Representatives

11 and the Senate,’’;

12 (C) by striking ‘‘9’’ and inserting ‘‘14’’;

13 (D) in paragraph (1), by striking ‘‘2’’ and

14 inserting ‘‘4’’;

15 (E) in paragraph (2)—

16 (i) by striking ‘‘2’’ and inserting ‘‘4’’;

17 and

18 (ii) by striking ‘‘and’’ at the end;

19 (F) in paragraph (3)—

20 (i) by striking ‘‘5’’ and inserting ‘‘6’’;

21 and

22 (ii) by striking ‘‘national’’.

23 SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

24 Section 409 of the Women’s Business Ownership Act

25 of 1988 (15 U.S.C. 631 note) is amended—
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1 (1) by striking ‘‘1995 through 1997’’ and insert2 ing ‘‘1998 through 2000’’; and

3 (2) by striking ‘‘$350,000’’ and inserting

4 ‘‘$600,000, of which $200,000 shall be for grants for

5 research of women’s procurement or finance issues.’’.

6 SEC. 305. WOMEN’S BUSINESS CENTERS.

7 (a) IN GENERAL.—Section 29 of the Small Business

8 Act (15 U.S.C. 656) is amended to read as follows:

9 ‘‘SEC. 29. WOMEN’S BUSINESS CENTERS.

10 ‘‘(a) DEFINITION.—For the purposes of this section the

11 term ‘small business concern owned and controlled by

12 women’, either startup or existing, includes any small busi13 ness concern—

14 ‘‘(1) that is not less than 51 percent owned by

15 one or more women; and

16 ‘‘(2) the management and daily business oper17 ations of which are controlled by one or more women.

18 ‘‘(b) AUTHORITY.—The Administration may provide

19 financial assistance to private organizations to conduct 5-

20 year projects for the benefit of small business concerns

21 owned and controlled by women. The projects shall pro22 vide—

23 ‘‘(1) financial assistance, including training and

24 counseling in how to apply for and secure business

25 credit and investment capital, preparing and present-
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1 ing financial statements, and managing cash flow

2 and other financial operations of a business concern;

3 ‘‘(2) management assistance, including training

4 and counseling in how to plan, organize, staff, direct,

5 and control each major activity and function of a

6 small business concern; and

7 ‘‘(3) marketing assistance, including training

8 and counseling in identifying and segmenting domes9 tic and international market opportunities, preparing

10 and executing marketing plans, developing pricing

11 strategies, locating contract opportunities, negotiating

12 contracts, and utilizing varying public relations and

13 advertising techniques.

14 ‘‘(c) CONDITIONS OF PARTICIPATION.—

15 ‘‘(1) NON-FEDERAL CONTRIBUTIONS.—As a con16 dition of receiving financial assistance authorized by

17 this section, the recipient organization shall agree to

18 obtain, after its application has been approved and

19 notice of award has been issued, cash contributions

20 from non-Federal sources as follows:

21 ‘‘(A) In the first and second years, 1 non22 Federal dollar for each 2 Federal dollars.

23 ‘‘(B) In the third year, 1 non-Federal dollar

24 for each Federal dollar.
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1 ‘‘(C) In the fourth and fifth years, 2 non2 Federal dollars for each Federal dollar.

3 ‘‘(2) FORM OF NON-FEDERAL CONTRIBUTIONS.—

4 Not more than one-half of the non-Federal sector

5 matching assistance may be in the form of in-kind

6 contributions which are budget line items only, in7 cluding but not limited to office equipment and office

8 space.

9 ‘‘(3) FORM OF FEDERAL CONTRIBUTIONS.—The

10 financial assistance authorized pursuant to this sec11 tion may be made by grant, contract, or cooperative

12 agreement and may contain such provision, as nec13 essary, to provide for payments in lump sum or in14 stallments, and in advance or by way of reimburse15 ment. The Administration may disburse up to 25 per16 cent of each year’s Federal share awarded to a recipi17 ent organization after notice of the award has been is18 sued and before the non-Federal sector matching funds

19 are obtained.

20 ‘‘(4) FAILURE TO OBTAIN PRIVATE FUNDING.—If

21 any recipient of assistance fails to obtain the required

22 non-Federal contribution during any project, it shall

23 not be eligible thereafter for advance disbursements

24 pursuant to paragraph (3) during the remainder of

25 that project, or for any other project for which it is
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1 or may be funded by the Administration, and prior

2 to approving assistance to such organization for any

3 other projects, the Administration shall specifically

4 determine whether the Administration believes that

5 the recipient will be able to obtain the requisite non6 Federal funding and enter a written finding setting

7 forth the reasons for making such determination.

8 ‘‘(d) CONTRACT AUTHORITY.—A women’s business

9 center may enter into a contract with a Federal department

10 or agency to provide specific assistance to women and other

11 underserved small business concerns. Performance of such

12 contract should not hinder the women’s business centers in

13 carrying out the terms of the grant received by the women’s

14 business centers from the Administration.

15 ‘‘(e) SUBMISSION OF 5-YEAR PLAN.—Each applicant

16 organization initially shall submit a 5-year plan to the Ad17 ministration on proposed fundraising and training activi18 ties, and a recipient organization may receive financial as19 sistance under this program for a maximum of 5 years per

20 women’s business center.

21 ‘‘(f) CRITERIA.—The Administration shall evaluate

22 and rank applicants in accordance with predetermined se23 lection criteria that shall be stated in terms of relative im24 portance. Such criteria and their relative importance shall

25 be made publicly available and stated in each solicitation
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1 for applications made by the Administration. The criteria

2 shall include—

3 ‘‘(1) the experience of the applicant in conduct4 ing programs or ongoing efforts designed to impart or

5 upgrade the business skills of women business owners

6 or potential owners;

7 ‘‘(2) the present ability of the applicant to com8 mence a project within a minimum amount of time;

9 ‘‘(3) the ability of the applicant to provide train10 ing and services to a representative number of women

11 who are both socially and economically disadvan12 taged; and

13 ‘‘(4) the location for the women’s business center

14 site proposed by the applicant.

15 ‘‘(g) OFFICE OF WOMEN’S BUSINESS OWNERSHIP.—

16 There is established within the Administration an Office

17 of Women’s Business Ownership, which shall be responsible

18 for the administration of the Administration’s programs for

19 the development of women’s business enterprises (as that

20 term is defined in section 408 of the Women’s Business

21 Ownership Act of 1988). The Office of Women’s Business

22 Ownership shall be administered by an Assistant Adminis23 trator, who shall be appointed by the Administrator.

24 ‘‘(h) REPORT.—The Administrator shall prepare and

25 submit an annual report to the Committees on Small Busi-
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1 ness of the House of Representatives and the Senate on the

2 effectiveness of all projects conducted under the authority

3 of this section. Such report shall provide information con4 cerning—

5 ‘‘(1) the number of individuals receiving assist6 ance;

7 ‘‘(2) the number of startup business concerns

8 formed;

9 ‘‘(3) the gross receipts of assisted concerns;

10 ‘‘(4) increases or decreases in profits of assisted

11 concerns; and

12 ‘‘(5) the employment increases or decreases of as13 sisted concerns.

14 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are

15 authorized to be appropriated $8,000,000 per year to carry

16 out the projects authorized by this section of which for fiscal

17 year 1998 not more than 10 percent may be used for admin18 istrative expenses related to the program. Amounts appro19 priated pursuant to this subsection for fiscal year 1999 and

20 later are to be used exclusively for grant awards and not

21 for costs incurred by the Administration for the manage22 ment and administration of the program. Notwithstanding

23 any other provision of law, the Administration may use

24 such expedited acquisition methods as it deems appropriate,

25 through the Assistant Administrator of the Office of Wom-
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1 en’s Business Ownership, to achieve the purposes of this sec2 tion, except that the Administration shall ensure that all

3 small business sources are provided a reasonable oppor4 tunity to submit proposals.’’.

5 (b) APPLICABILITY.—Any organization conducting a

6 3-year project under section 29 of the Small Business Act

7 (15 U.S.C. 656) on the day before the date of enactment

8 of this Act, may extend the term of that project to a total

9 term of 5 years and receive financial assistance in accord10 ance with section 29(c) of the Small Business Act (as

11 amended by this title) subject to procedures established by

12 the Administrator in coordination with the Office of Wom13 en’s Business Ownership established under section 29 of the

14 Small Business Act (15 U.S.C. 656) (as amended by this

15 title).

16 SEC. 306. OFFICE OF WOMEN’S BUSINESS OWNERSHIP.

17 Section 29 of the Small Business Act (15 U.S.C. 656)

18 is amended by adding at the end the following:

19 ‘‘(j) ASSISTANT ADMINISTRATOR FOR THE OFFICE OF

20 WOMEN’S BUSINESS OWNERSHIP.—

21 ‘‘(1) ESTABLISHMENT.—There is established the

22 position of Assistant Administrator for the Office of

23 Women’s Business Ownership (hereafter in this sec24 tion referred to as the ‘Assistant Administrator’) who

25 shall serve without regard to the provisions of title 5,
42

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1 United States Code, governing appointments in the

2 competitive service.

3 ‘‘(2) RESPONSIBILITIES AND DUTIES.—

4 ‘‘(A) RESPONSIBILITIES.—The responsibil5 ities of the Assistant Administrator shall be to

6 administer the programs and services of the Of7 fice of Women’s Business Ownership established

8 to assist women entrepreneurs in the areas of—

9 ‘‘(i) starting and operating a small

10 business;

11 ‘‘(ii) development of management and

12 technical skills;

13 ‘‘(iii) seeking Federal procurement op14 portunities; and

15 ‘‘(iv) increasing the opportunity for

16 access to capital.

17 ‘‘(B) DUTIES.—Duties of the position of the

18 Assistant Administrator shall include—

19 ‘‘(i) administering and managing the

20 Women’s Business Centers program;

21 ‘‘(ii) recommending the annual admin22 istrative and program budgets for the Office

23 of Women’s Business Ownership (including

24 the budget for the Women’s Business Cen25 ters);
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1 ‘‘(iii) establishing appropriate funding

2 levels therefore;

3 ‘‘(iv) reviewing the annual budgets

4 submitted by each applicant for the Wom5 en’s Business Center program;

6 ‘‘(v) selecting applicants to participate

7 in this program;

8 ‘‘(vi) implementing this section;

9 ‘‘(vii) maintaining a clearinghouse to

10 provide for the dissemination and exchange

11 of information between Women’s Business

12 Centers;

13 ‘‘(viii) serving as the vice chairperson

14 of the Interagency Committee on Women’s

15 Business Enterprise;

16 ‘‘(ix) serving as liaison for the Na17 tional Women’s Business Council; and

18 ‘‘(x) advising the Administrator on ap19 pointments to the Women’s Business Coun20 cil.

21 ‘‘(3) CONSULTATION REQUIREMENTS.—In carry22 ing out the responsibilities and duties described in

23 this subsection, the Assistant Administrator shall con24 fer with and seek the advice of the Administration of-
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1 ficials in areas served by the Women’s Business Cen2 ters.

3 ‘‘(k) PROGRAM EXAMINATION.—

4 ‘‘(1) IN GENERAL.—Not later than 180 days

5 after the date of enactment of this subsection, the Ad6 ministration shall develop and implement an annual

7 programmatic and financial examination of each

8 Women’s Business Center established pursuant to this

9 section.

10 ‘‘(2) EXTENSION OF CONTRACTS.—In extending

11 or renewing a contract with a Women’s Business Cen12 ter, the Administration shall consider the results of

13 the examination conducted pursuant to paragraph

14 (1).

15 ‘‘(l) CONTRACT AUTHORITY.—The authority of the Ad16 ministration to enter into contracts shall be in effect for

17 each fiscal year only to the extent and in the amounts as

18 are provided in advance in appropriations Acts. After the

19 Administration has entered a contract, either as a grant

20 or a cooperative agreement, with any applicant under this

21 section, it shall not suspend, terminate, or fail to renew or

22 extend any such contract unless the Administration pro23 vides the applicant with written notification setting forth

24 the reasons therefore and affording the applicant an oppor-
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1 tunity for a hearing, appeal, or other administrative pro2 ceeding under chapter 5 of title 5, United States Code.’’.

3 TITLE IV—COMPETITIVENESS

4 PROGRAM

5 SEC. 401. PROGRAM TERM.

6 Section 711(c) of the Small Business Competitiveness

7 Demonstration Program Act of 1988 (15 U.S.C. 644 note)

8 is amended by striking ‘‘, and terminate on September 30,

9 1997’’.

10 SEC. 402. MONITORING AGENCY PERFORMANCE.

11 Section 712(d)(1) of the Small Business Competitive12 ness Demonstration Program Act of 1988 (15 U.S.C. 644

13 note) is amended to read as follows:

14 ‘‘(1) Participating agencies shall monitor the at15 tainment of their small business participation goals

16 on an annual basis. An annual review by each par17 ticipating agency shall be completed not later than

18 January 31 of each year, based on the data for the

19 preceding fiscal year, from October 1 through Septem20 ber 30.’’.

21 SEC. 403. SMALL BUSINESS PARTICIPATION IN DREDGING.

22 Section 722(a) of the Small Business Competitiveness

23 Demonstration Program Act of 1988 (15 U.S.C. 644 note)

24 is amended by striking ‘‘and terminating on September 30,

25 1997’’.
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1 SEC. 404. TECHNICAL AMENDMENT.

2 Section 717 of the Small Business Competitiveness

3 Demonstration Program Act of 1988 (15 U.S.C. 644 note)

4 is amended—

5 (1) by striking ‘‘standard industrial classifica6 tion code’’ each time it appears and inserting in lieu

7 thereof ‘‘North American Industrial Classification

8 Code’’; and

9 (2) by striking ‘‘standard industrial classifica10 tion codes’’ each time it appears and inserting in lieu

11 thereof ‘‘North American Industrial Classification

12 Codes’’.

13 TITLE V—MISCELLANEOUS

14 PROVISIONS

15 SEC. 501. SMALL BUSINESS DEVELOPMENT CENTERS.

16 (a) IN GENERAL.—Section 21(a) of the Small Business

17 Act (15 U.S.C. 648(a)) is amended—

18 (1) in paragraph (1), by inserting ‘‘any women’s

19 business center operating pursuant to section 29,’’

20 after ‘‘credit or finance corporation,’’;

21 (2) in paragraph (3)—

22 (A) by striking ‘‘, but with’’ and all that

23 follows through ‘‘parties.’’ and inserting the fol24 lowing: ‘‘for the delivery of programs and serv25 ices to the Small Business community. Such pro26 grams and services shall be jointly developed, ne-
47

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1 gotiated, and agreed upon, with full participa2 tion of both parties, pursuant to an executed co3 operative agreement between the Small Business

4 Development Center applicant and the Adminis5 tration.’’; and

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

7 ‘‘(C) On an annual basis, the Small Business

8 Development Center shall review and coordinate pub9 lic and private partnerships and cosponsorships with

10 the Administration for the purpose of more efficiently

11 leveraging available resources on a National and a

12 State basis.’’;

13 (3) in paragraph (4)(C)—

14 (A) by striking clause (i) and inserting the

15 following:

16 ‘‘(i) IN GENERAL.—

17 ‘‘(I) MAXIMUM AMOUNT.—Except as

18 provided in clause (ii), and subject to sub19 clause (II) of this clause, the amount of a

20 grant received by a State under this section

21 shall not exceed greater of—

22 ‘‘(aa) $500,000; and

23 ‘‘(bb) the State’s pro rata share of

24 a national program, based upon the

25 population of the State as compared to
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1 the total population of the United

2 States.

3 ‘‘(II) EXCEPTION.—Subject to the

4 availability of amounts made available in

5 advance in an appropriations Act to carry

6 out this section for any fiscal year in excess

7 of amounts so provided for fiscal year 1997,

8 the amount of a grant received by a State

9 under this section shall not exceed the great10 er of $500,000, and the sum of—

11 ‘‘(aa) the State’s pro rata share of

12 a national program, based upon the

13 population of the State as compared to

14 the total population of the United

15 States; and

16 ‘‘(bb) and $300,000 in fiscal year

17 1998, $400,000 in fiscal year 1999,

18 and $500,000 in each fiscal year there19 after.’’; and

20 (B) in clause (iii), by striking ‘‘(iii)’’ and

21 all that follows through ‘‘1997.’’ and inserting

22 the following:

23 ‘‘(iii) NATIONAL PROGRAM.—The national

24 program under this section shall be—

25 ‘‘(I) $85,000,000 for fiscal year 1998;
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1 ‘‘(II) $90,000,000 for fiscal year 1999;

2 and

3 ‘‘(III) $95,000,000 for fiscal year 2000

4 and each fiscal year thereafter.’’; and

5 (4) in paragraph (6)—

6 (A) in subparagraph (A), by striking ‘‘and’’

7 at the end;

8 (B) in subparagraph (B), by striking the

9 comma at the end and inserting ‘‘; and’’; and

10 (C) inserting after subparagraph (B) the

11 following:

12 ‘‘(C) with outreach, development, and en13 hancement of minority-owned small business

14 startups or expansions, veteran-owned small

15 business startups or expansions, and women16 owned small business startups or expansions, in

17 communities impacted by base closings or mili18 tary or corporate downsizing, or in rural or un19 derserved communities;’’.

20 (b) SBDC SERVICES.—Section 21(c) of the Small

21 Business Act (15 U.S.C. 648(c)) is amended—

22 (1) in paragraph (3)—

23 (A) in subparagraph (A), by striking ‘‘busi24 nesses;’’ and inserting ‘‘businesses, including—
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1 ‘‘(i) working with individuals to increase

2 awareness of basic credit practices and credit re3 quirements;

4 ‘‘(ii) working with the Administration to

5 develop and provide informational tools for use

6 in working with individuals on pre-business

7 startup planning, existing business expansion,

8 business plans, financial packages, credit appli9 cations, contract proposals, and export planning;

10 and

11 ‘‘(iii) working with individuals referred by

12 the local offices of the Administration and Ad13 ministration participating lenders;’’;

14 (B) in each of subparagraphs (B), (C), (D),

15 (E), (F), (G), (M), (N), (O), (Q), and (R) by

16 moving each margin two ems to the left;

17 (C) in subparagraph (C), by inserting ‘‘and

18 the Administration’’ after ‘‘Center’’;

19 (D) in subparagraph (Q), by striking ‘‘and’’

20 at the end;

21 (E) in subparagraph (R), by striking the

22 period at the end and inserting ‘‘; and’’; and

23 (2) in paragraph (5)—

24 (A) by moving the margin 2 ems to the left;
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1 (B) by striking ‘‘paragraph (a)(1)’’ and in2 serting ‘‘subsection (a)(1)’’;

3 (C) by striking ‘‘which ever’’ and inserting

4 ‘‘whichever’’; and

5 (D) by striking ‘‘last,,’’ and inserting

6 ‘‘last,’’;

7 (3) by redesignating paragraphs (4) through (7)

8 as paragraphs (5) through (8), respectively; and

9 (4) in paragraph (3), in the undesignated mate10 rial following subparagraph (S) (as added by this

11 subsection), by striking ‘‘A small’’ and inserting the

12 following:

13 ‘‘(4) A small’’.

14 (c) COMPETITIVE AWARDS.—Section 21(l) of the Small

15 Business Act (15 U.S.C. 648(l)) is amended by adding at

16 the end the following: ‘‘If any contract under this section

17 is not renewed or extended, award of the succeeding contract

18 shall be made on a competitive basis.’’.

19 (d) PROHIBITION ON CERTAIN FEES.—Section 21 of

20 the Small Business Act (15 U.S.C. 648) is amended by add21 ing at the end the following:

22 ‘‘(m) PROHIBITION ON CERTAIN FEES.—A small busi23 ness development center shall not impose or otherwise collect

24 a fee or other compensation in connection with the provi25 sion of counseling services under this section.’’.
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1 SEC. 502. SMALL BUSINESS EXPORT PROMOTION.

2 (a) IN GENERAL.—Section 21(c)(3) of the Small Busi3 ness Act (15 U.S.C. 648(c)(3)) is amended by inserting after

4 subparagraph (R) the following:

5 ‘‘(S) providing small business owners with access

6 to a wide variety of export-related information by es7 tablishing on-line computer linkages between small

8 business development centers and an international

9 trade data information network with ties to the Ex10 port Assistance Center program.’’.

11 (b) AUTHORIZATION OF APPROPRIATIONS.—There are

12 authorized to be appropriated to carry out section

13 21(c)(3)(S) of the Small Business Act (15 U.S.C.

14 648(c)(3)(S)), as added by this section, $1,500,000 for each

15 of fiscal years 1998 and 1999.

16 SEC. 503. PILOT PREFERRED SURETY BOND GUARANTEE

17 PROGRAM EXTENSION.

18 Section 207 of the Small Business Administration Re19 authorization and Amendment Act of 1988 (15 U.S.C. 694b

20 note) is amended by striking ‘‘September 30, 1997’’ and in21 serting ‘‘September 30, 2000’’.

22 SEC. 504. VERY SMALL BUSINESS CONCERNS.

23 Section 304(i) of Public Law 103–403 (15 U.S.C. 644

24 note) is amended by striking ‘‘1998’’ and inserting ‘‘2000’’.
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1 SEC. 505. EXTENSION OF COSPONSORSHIP AUTHORITY.

2 Section 401(a)(2) of the Small Business Administra3 tion Reauthorization and Amendments Act of 1994 (15

4 U.S.C. 637 note) is amended by striking ‘‘September 30,

5 1997’’ and inserting ‘‘September 30, 2000’’.

6 SEC. 506. TRADE ASSISTANCE PROGRAM FOR SMALL BUSI7 NESS CONCERNS HARMED BY NAFTA.

8 The Small Business Administration shall coordinate

9 assistance programs currently administered by the Admin10 istration to counsel small business concerns harmed by the

11 North American Free Trade Agreement to aid such concerns

12 in reorienting their business purpose.

13 TITLE VI—SERVICE DISABLED

14 VETERANS

15 SEC. 601. PURPOSES.

16 The purposes of this title are—

17 (1) to foster enhanced entrepreneurship among

18 eligible veterans by providing increased opportunities;

19 (2) to vigorously promote the legitimate interests

20 of small business concerns owned and controlled by el21 igible veterans; and

22 (3) to ensure that those concerns receive fair con23 sideration in purchases made by the Federal Govern24 ment.
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1 SEC. 602. DEFINITIONS.

2 For purposes of this title, the following definitions

3 apply:

4 (1) ADMINISTRATION.—The term ‘‘Administra5 tion’’ means the Small Business Administration.

6 (2) ADMINISTRATOR.—The term ‘‘Adminis7 trator’’ means the Administrator of the Small Busi8 ness Administration.

9 (3) ELIGIBLE VETERAN.—The term ‘‘eligible vet10 eran’’ means a disabled veteran, as defined in section

11 4211(3) of title 38, United States Code.

12 (4) SMALL BUSINESS CONCERN OWNED AND CON13 TROLLED BY ELIGIBLE VETERANS.—The term ‘‘small

14 business concern owned and controlled by eligible vet15 erans’’ means a small business concern (as defined in

16 section 3 of the Small Business Act)—

17 (A) which is at least 51 percent owned by

18 1 or more eligible veteran, or in the case of a

19 publicly owned business, at least 51 percent of

20 the stock of which is owned by 1 or more eligible

21 veteran; and

22 (B) whose management and daily business

23 operations are controlled by eligible veterans.

24 SEC. 603. REPORT BY SMALL BUSINESS ADMINISTRATION.

25 (a) STUDY AND REPORT.—Not later than 6 months

26 after the date of the enactment of this Act, the Adminis-
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1 trator shall conduct a comprehensive study and issue a

2 final report to the Committees on Small Business of the

3 House of Representatives and the Senate containing find4 ings and recommendations of the Administrator on—

5 (1) the needs of small business concerns owned

6 and controlled by eligible veterans;

7 (2) the availability and utilization of Adminis8 tration programs by small business concerns owned

9 and controlled by eligible veterans;

10 (3) the percentage, and dollar value, of Federal

11 contracts awarded to small business concerns owned

12 and controlled by eligible veterans in the preceding 5

13 fiscal years; and

14 (4) methods to improve Administration and

15 other programs to serve the needs of small business

16 concerns owned and controlled by eligible veterans.

17 The report also shall include recommendations to Congress

18 concerning the need for legislation and recommendations to

19 the Office of Management and Budget, relevant offices with20 in the Administration, and the Department of Veterans Af21 fairs.

22 (b) CONDUCT OF STUDY.—In carrying out subsection

23 (a), the Administrator—

24 (1) may conduct surveys of small business con25 cerns owned and controlled by eligible veterans and
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1 service disabled veterans, including those who have

2 sought financial assistance or other services from the

3 Administration;

4 (2) shall consult with the appropriate committees

5 of Congress, relevant groups and organizations in the

6 non-profit sector, and Federal or State government

7 agencies; and

8 (3) shall have access to any information within

9 other Federal agencies which pertains to such veterans

10 and their small businesses, unless such access is spe11 cifically prohibited by law.

12 SEC. 604. INFORMATION COLLECTION.

13 After the date of issuance of the report required by sec14 tion 603, the Secretary of Veterans Affairs shall, in con15 sultation with the Assistant Secretary for Veterans’ Em16 ployment and Training and the Administrator, engage in

17 efforts each fiscal year to identify small business concerns

18 owned and controlled by eligible veterans in the United

19 States. The Secretary shall inform each small business con20 cern identified under this section that information on Fed21 eral procurement is available from the Administrator.

22 SEC. 605. STATE OF SMALL BUSINESS REPORT.

23 Section 303(b) of the Small Business Economic Policy

24 Act of 1980 (15 U.S.C. 631b(b)) is amended by striking
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1 ‘‘and female-owned businesses’’ and inserting ‘‘, female2 owned, and veteran-owned businesses’’.

3 SEC. 606. LOANS TO VETERANS.

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

5 636(a)) is amended by inserting after paragraph (7) the

6 following:

7 ‘‘(8) The Administration is empowered to make

8 loans under this subsection to small business concerns

9 owned and controlled by disabled veterans. For pur10 poses of this paragraph, the term ‘disabled veteran’

11 shall have the meaning such term has in section

12 4211(3) of title 38, United States Code.’’.

13 SEC. 607. ENTREPRENEURIAL TRAINING, COUNSELING, AND

14 MANAGEMENT ASSISTANCE.

15 The Administrator shall take such actions as may be

16 necessary to ensure that small business concerns owned and

17 controlled by eligible veterans have access to programs es18 tablished under the Small Business Act which provide en19 trepreneurial training, business development assistance,

20 counseling, and management assistance to small business

21 concerns. Such programs include the Small Business Devel22 opment Center, Small Business Institute, Service Corps of

23 Retired Executives (SCORE), and Active Corps of Execu24 tives (ACE) programs.
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1 SEC. 608. GRANTS FOR ELIGIBLE VETERANS OUTREACH

2 PROGRAMS.

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

4 637(b)) is amended—

5 (1) by striking ‘‘and’’ at the end of paragraph

6 (15);

7 (2) by striking the period at the end of the first

8 paragraph (16) and inserting ‘‘; and’’;

9 (3) by striking the second paragraph (16); and

10 (4) by adding at the end the following new para11 graph:

12 ‘‘(17) to make grants to, and enter into contracts

13 and cooperative agreements with, educational institu14 tions, private businesses, veterans’ nonprofit commu15 nity-based organizations, and Federal, State, and

16 local departments and agencies for the establishment

17 and implementation of outreach programs for dis18 abled veterans, as defined in section 4211(3) of title

19 38, United States Code.’’.

20 SEC. 609. OUTREACH FOR ELIGIBLE VETERANS.

21 The Administrator, the Secretary of Veterans Affairs,

22 and the Assistant Secretary of Labor for Veterans’ Employ23 ment and Training shall develop and implement a program

24 of comprehensive outreach to assist eligible veterans. Such

25 outreach shall include business training and management

26 assistance, employment and relocation counseling, and dis-
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1 semination of information on veterans benefits and veterans

2 entitlements.

3 TITLE VII—SMALL BUSINESS

4 TECHNOLOGY TRANSFER

5 PROGRAM

6 SEC. 701. AMENDMENTS.

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

8 is amended—

9 (1) in subsection (b)(7), by inserting ‘‘, and the

10 Committee on Science’’ after ‘‘of the Senate’’;

11 (2) in subsection (e)(4)(A) by striking ‘‘(ii)’’;

12 (3) in subsection (e)(6)(B), by inserting ‘‘agen13 cy’’ after ‘‘to meet particular’’;

14 (4) in subsection (n)(1)(C), by striking ‘‘and

15 1997’’ and inserting in lieu thereof ‘‘through 2000’’;

16 (5) in subsection (o)—

17 (A) by redesignating paragraphs (8)

18 through (11) as paragraphs (10) through (13),

19 respectively; and

20 (B) by inserting after paragraph (7) the fol21 lowing new paragraphs:

22 ‘‘(8) include, as part of its annual performance

23 plan as required by section 1115(a) and (b) of title

24 31, United States Code, a section on its STTR pro25 gram, and shall submit such section to the Committee
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1 on Small Business of the Senate, and the Committee

2 on Science and the Committee on Small Business of

3 the House of Representatives;

4 ‘‘(9) collect such data from awardees as is nec5 essary to assess STTR program outputs and out6 comes;’’; and

7 (6) by adding at the end the following new sub8 sections:

9 ‘‘(s) OUTREACH PROGRAM.—Within 90 days after the

10 date of the enactment of this subsection, the Administrator

11 shall develop and begin implementation of an outreach pro12 gram to encourage increased participation in the STTR

13 program of small business concerns, universities, and other

14 research institutions located in States in which the total

15 number of STTR awards for the previous 2 fiscal years is

16 less than 20.

17 ‘‘(t) INCLUSION IN STRATEGIC PLANS.—Program in18 formation relating to the SBIR and STTR programs shall

19 be included by Federal agencies in any updates and revi20 sions required under section 306(b) of title 5, United States

21 Code.’’.

Attest:

Clerk.