Union Calendar No. 120

106TH CONGRESS

1ST SESSION H. R. 1568

[Report No. 106–206, Part I]

A BILL

To provide technical, financial, and procurement asfor other purposes. sistance to veteran owned small businesses, and

JUNE 29, 1999

Reported from the Committee on Small Business with an

amendment

JUNE 29, 1999

Referral to the Committee on Veterans’ Affairs extended

for a period ending not later than June 29, 1999

JUNE 29, 1999

The Committee on Veterans’ Affairs discharged; comState of the Union and ordered to be printed mitted to the Committee of the Whole House on the
IB

Union Calendar No. 120

106TH CONGRESS

1ST SESSION H. R. 1568

[Report No. 106–206, Part I]

To provide technical, financial, and procurement assistance to veteran owned

small businesses, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 27, 1999

Mr. TALENT (for himself, Mr. STUMP, Mrs. MCCARTHY of New York, Mr.

EVANS, Mr. QUINN, Mr. PHELPS, Mr. MORAN of Kansas, Mr. FILNER,

Mr. BARTLETT of Maryland, Mrs. KELLY, and Mr. PASCRELL) introduced the following bill; which was referred to the Committee on Small

Business, and in addition to the Committee on Veterans’ Affairs, for a

period to be subsequently determined by the Speaker, in each case for

consideration of such provisions as fall within the jurisdiction of the committee concerned

JUNE 29, 1999

Additional sponsors: Ms. BROWN of Florida, Mr. ROMERO-BARCELO ́, Mrs.

CHRISTENSEN, Mr. LEACH, Mr. SHOWS, Ms. MILLENDER-MCDONALD,

Mr. SPENCE, Ms. WOOLSEY, Mr. EWING, Mrs. THURMAN, Mrs. EMERSON, Ms. CARSON, Mr. FROST, Ms. DANNER, Mr. ENGLISH, Mr. RAHALL, Mr. GUTIERREZ, Mr. STUPAK, Mr. LIPINSKI, Ms. BERKLEY, Mr.

COOK, Mrs. BONO, Mr. SWEENEY, Mr. LOBIONDO, Mr. SMITH of Washington, Mr. ENGEL, Mr. COOKSEY, Mr. BROWN of Ohio, Mr. BISHOP,

Mr. REYES, Mr. SANDERS, Mr. BUYER, Mr. BAKER, Mr. LAHOOD, Mr.

PETERSON of Minnesota, Mr. PASTOR, Mr. GREEN of Texas, Mr. COMBEST, Mr. CUMMINGS, Mrs. MYRICK, Mr. FORBES, Mr. HILL of Montana, Mr. DOOLEY of California, Mr. DEMINT, Mrs. NAPOLITANO, Mr.

SANDLIN, Mr. LEWIS of California, Mr. LAZIO, Mr. LAMPSON, Mrs.

MORELLA, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. HULSHOF, Ms.

KAPTUR, Mr. HAYWORTH, Ms. LEE, Mr. HUNTER, and Mr. UNDERWOOD

JUNE 29, 1999

Reported from the Committee on Small Business with an amendment
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[Strike out all after the enacting clause and insert the part printed in italic]

JUNE 29, 1999

Referral to the Committee on Veterans’ Affairs extended for a period ending

not later than June 29, 1999

JUNE 29, 1999

The Committee on Veterans’ Affairs discharged; committed to the Committee

of the Whole House on the State of the Union and ordered to be printed

[For text of introduced bill, see copy of bill as introduced on April 27, 1999]

A BILL

To provide technical, financial, and procurement assistance

to veteran owned small businesses, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Veterans Entrepreneur5 ship and Small Business Development Act of 1999’’.

6 SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—GENERAL PROVISIONS

Sec. 101. Findings.

Sec. 102. Purpose.

Sec. 103. Definitions.

TITLE II—VETERANS BUSINESS DEVELOPMENT

Sec. 201. Veterans business development in the Small Business Administration.

Sec. 202. National Veterans Business Development Corporation.

Sec. 203. Advisory Committee on Veterans Business Affairs.

TITLE III—TECHNICAL ASSISTANCE

Sec. 301. SCORE program.

Sec. 302. Entrepreneurial assistance.

Sec. 303. Business development and management assistance for military reservists’ small businesses.
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TITLE IV—FINANCIAL ASSISTANCE

Sec. 401. General business loan program.

Sec. 402. Assistance to active duty military reservists.

Sec. 403. Microloan program.

Sec. 404. Delta loan program.

Sec. 405. State development company program.

TITLE V—PROCUREMENT ASSISTANCE

Sec. 501. Subcontracting.

Sec. 502. Participation in Federal procurement.

TITLE VI—REPORTS AND DATA COLLECTION

Sec. 601. Reporting requirements.

Sec. 602. Report on small business and competition.

Sec. 603. Annual report of the Administrator.

Sec. 604. Data and information collection.

TITLE VII—MISCELLANEOUS PROVISIONS

Sec. 701. Administrator’s order.

Sec. 702. Small Business Administration Office of Advocacy.

Sec. 703. Study of fixed-asset small business loans.

1 TITLE I—GENERAL PROVISIONS

2 SEC. 101. FINDINGS.

3 Congress finds the following:

4 (1) Veterans of the United States Armed Forces

5 have been and continue to be vital to the small busi6 ness enterprises of the United States.

7 (2) In serving the United States, veterans often

8 faced great risks to preserve the American dream of

9 freedom and prosperity.

10 (3) The United States has done too little to assist

11 veterans, particularly service-disabled veterans, in

12 playing a greater role in the economy of the United

13 States by forming and expanding small business en14 terprises.
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1 (4) Medical advances and new medical tech2 nologies have made it possible for service-disabled vet3 erans to play a much more active role in the forma4 tion and expansion of small business enterprises in

5 the United States.

6 (5) The United States must provide additional

7 assistance and support to veterans to better equip

8 them to form and expand small business enterprises,

9 thereby enabling them to realize the American dream

10 that they fought to protect.

11 SEC. 102. PURPOSE.

12 The purpose of this Act is to expand existing and es13 tablish new assistance programs for veterans who own or

14 operate small businesses. This Act accomplishes this purpose

15 by—

16 (1) expanding the eligibility for certain small

17 business assistance programs to include veterans;

18 (2) directing certain departments and agencies of

19 the United States to take actions that enhance small

20 business assistance to veterans; and

21 (3) establishing new institutions to provide small

22 business assistance to veterans or to support the insti23 tutions that provide such assistance.
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1 SEC. 103. DEFINITIONS.

2 (a) SMALL BUSINESS ACT.—Section 3 of the Small

3 Business Act (15 U.S.C. 632) is amended by adding at the

4 end the following:

5 ‘‘(q) DEFINITIONS RELATING TO VETERANS.—In this

6 Act, the following definitions apply:

7 ‘‘(1) SERVICE-DISABLED VETERAN.—The term

8 ‘service-disabled veteran’ means a veteran with a dis9 ability that is service-connected (as defined in section

10 101(16) of title 38, United States Code).

11 ‘‘(2) SMALL BUSINESS CONCERN OWNED AND

12 CONTROLLED BY SERVICE-DISABLED VETERANS.—The

13 term ‘small business concern owned and controlled by

14 service-disabled veterans’ means a small business

15 concern—

16 ‘‘(A) not less than 51 percent of which is

17 owned by 1 or more service-disabled veterans or,

18 in the case of any publicly owned business, not

19 less than 51 percent of the stock of which is

20 owned by 1 or more service-disabled veterans;

21 and

22 ‘‘(B) the management and daily business

23 operations of which are controlled by 1 or more

24 service-disabled veterans or, in the case of a vet25 eran with permanent and severe disability, the

26 spouse or permanent caregiver of such veteran.
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1 ‘‘(3) SMALL BUSINESS CONCERN OWNED AND

2 CONTROLLED BY VETERANS.—The term ‘small busi3 ness concern owned and controlled by veterans’ means

4 a small business concern—

5 ‘‘(A) not less than 51 percent of which is

6 owned by 1 or more veterans or, in the case of

7 any publicly owned business, not less than 51

8 percent of the stock of which is owned by 1 or

9 more veterans; and

10 ‘‘(B) the management and daily business

11 operations of which are controlled by 1 or more

12 veterans.

13 ‘‘(4) VETERAN.—The term ‘veteran’ has the

14 meaning given the term in section 101(2) of title 38,

15 United States Code.’’.

16 (b) APPLICABILITY TO THIS ACT.—In this Act, the

17 definitions contained in section 3(q) of the Small Business

18 Act, as added by this section, apply.

19 TITLE II—VETERANS BUSINESS

20 DEVELOPMENT

21 SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE

22 SMALL BUSINESS ADMINISTRATION.

23 (a) IN GENERAL.—Section 4(b)(1) of the Small Busi24 ness Act (15 U.S.C. 633(b)(1)) is amended—
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1 (1) in the 5th sentence, by striking ‘‘four Asso2 ciate Administrators’’ and inserting ‘‘five Associate

3 Administrators’’; and

4 (2) by inserting after the 5th sentence the fol5 lowing: ‘‘One such Associate Administrator shall be

6 the Associate Administrator for Veterans Business De7 velopment, who shall administer the Office of Veterans

8 Business Development established under section 32.’’.

9 (b) OFFICE OF VETERANS BUSINESS DEVELOPMENT;

10 ASSOCIATE ADMINISTRATOR.—The Small Business Act (15

11 U.S.C. 631 et seq.) is further amended—

12 (1) by redesignating section 32 as section 34;

13 and

14 (2) by inserting after section 31 the following:

15 ‘‘SEC. 32. VETERANS PROGRAMS.

16 ‘‘(a) OFFICE OF VETERANS BUSINESS DEVELOP17 MENT.—There is established in the Administration an Of18 fice of Veterans Business Development, which shall be ad19 ministered by the Associate Administrator for Veterans

20 Business Development (in this section referred to as the ‘As21 sociate Administrator’) appointed under section 4(b)(1).

22 ‘‘(b) ASSOCIATE ADMINISTRATOR FOR VETERANS

23 BUSINESS DEVELOPMENT.—The Associate

24 Administrator—
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1 ‘‘(1) shall be an appointee in the Senior Execu2 tive Service;

3 ‘‘(2) shall be responsible for the formulation, exe4 cution, and promotion of policies and programs of the

5 Administration that provide assistance to small busi6 ness concerns owned and controlled by veterans and

7 small business concerns owned and controlled by serv8 ice-disabled veterans. The Associate Administrator

9 shall act as an ombudsman for full consideration of

10 veterans in all programs of the Administration; and

11 ‘‘(3) shall report to and be responsible directly to

12 the Administrator.’’.

13 SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT

14 CORPORATION.

15 The Small Business Act (15 U.S.C. 631 et seq.) is fur16 ther amended by adding after section 32 (as added by this

17 Act) the following:

18 ‘‘SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT

19 CORPORATION.

20 ‘‘(a) ESTABLISHMENT.—There is established a feder21 ally chartered corporation to be known as the National Vet22 erans Business Development Corporation (in this section re23 ferred to as the ‘Corporation’) which shall be incorporated

24 under the laws of the District of Columbia and which shall

25 have the powers granted in this section.
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1 ‘‘(b) PURPOSES OF THE CORPORATION.—The purposes

2 of the Corporation shall be—

3 ‘‘(1) to expand the provision of and improve ac4 cess to technical assistance regarding entrepreneur5 ship for the Nation’s veterans; and

6 ‘‘(2) to assist veterans, including service-disabled

7 veterans, with the formation and expansion of small

8 business concerns by working with and organizing

9 public and private resources, including those of the

10 Small Business Administration, the Department of

11 Veterans Affairs, the Department of Labor, the De12 partment of Commerce, the Department of Defense,

13 the Service Corps of Retired Executives (described in

14 section 8(b)(1)(B) of this Act), the Small Business

15 Development Centers (described in section 21 of this

16 Act), and the business development staffs of each de17 partment and agency of the United States.

18 ‘‘(c) BOARD OF DIRECTORS.—

19 ‘‘(1) IN GENERAL.—The management of the Cor20 poration shall be vested in a Board of Directors com21 posed of 9 voting members and 3 nonvoting ex officio

22 members.

23 ‘‘(2) APPOINTMENT OF VOTING MEMBERS.—The

24 President shall appoint United States citizens to be

25 voting members of the Board of Directors as follows:
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1 ‘‘(A) 1 from a list of individuals nominated

2 by the chairman of the Committee on Small

3 Business of the House of Representatives.

4 ‘‘(B) 1 from a list of individuals nominated

5 by the chairman of the Committee on Small

6 Business of the Senate.

7 ‘‘(C) 1 from a list of individuals nominated

8 by the ranking minority member of the Com9 mittee on Small Business of the House of Rep10 resentatives.

11 ‘‘(D) 1 from a list of individuals nominated

12 by the ranking minority members of the Com13 mittee on Small Business of the Senate.

14 ‘‘(E) 1 from a list of individuals nominated

15 by the chairman of the Committee on Veterans’

16 Affairs of the House of Representatives.

17 ‘‘(F) 1 from a list of individuals nominated

18 by the chairman of the Committee on Veterans’

19 Affairs of the Senate.

20 ‘‘(G) 1 from a list of individuals nominated

21 by the ranking minority member of the Com22 mittee on Veterans’ Affairs of the House of Rep23 resentatives.
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1 ‘‘(H) 1 from a list of individuals nominated

2 the ranking minority member of the Committee

3 on Veterans’ Affairs of the Senate.

4 ‘‘(I) 1 of the President’s own choosing.

5 ‘‘(3) EX OFFICIO MEMBERS.—The Administrator

6 of the Small Business Administration, the Secretary

7 of Defense, and the Secretary of Veterans Affairs shall

8 serve as the nonvoting ex officio members of the Board

9 of Directors.

10 ‘‘(4) CHAIRPERSON.—The members of the Board

11 of Directors appointed under paragraph (2) shall

12 elect one such member to serve as chairperson of the

13 Board of Directors for a term of 2 years.

14 ‘‘(5) TERMS OF APPOINTED MEMBERS.—

15 ‘‘(A) IN GENERAL.—Each member of the

16 Board of Directors appointed under paragraph

17 (2) shall serve a term of 6 years, except as pro18 vided in subparagraph (B).

19 ‘‘(B) TERMS OF INITIAL APPOINTEES.—As

20 designated by the President at the time of ap21 pointment, of the members first appointed—

22 ‘‘(i) 3 shall be for a term of 2 years;

23 and

24 ‘‘(ii) 3 shall be for a term of 4 years.
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1 ‘‘(C) UNEXPIRED TERMS.—Any member of

2 the Board of Directors appointed to fill a va3 cancy occurring before the expiration of the term

4 for which the member’s predecessor was ap5 pointed shall be appointed only for the remain6 der of the term. A member may serve after the

7 expiration of that member’s term until a suc8 cessor has taken office.

9 ‘‘(6) VACANCIES.—Any vacancy on the Board of

10 Directors shall be filled in the manner in which the

11 original appointment was made. In the case of a va12 cancy in the office of the Administrator of the Small

13 Business Administration or the Secretary of Veterans

14 Affairs, and pending the appointment of a successor,

15 an acting appointee for such vacancy may serve as

16 an ex officio member.

17 ‘‘(7) INELIGIBILITY FOR OTHER OFFICES.—No

18 voting member of the Board of Directors may be an

19 officer or employee of the United States while serving

20 as a member of the Board of Directors or during the

21 2-year period preceding such service.

22 ‘‘(8) IMPARTIALITY AND NONDISCRIMINATION.—

23 The Board of Directors shall administer the affairs of

24 the Corporation fairly and impartially and without

25 discrimination.
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1 ‘‘(9) OBLIGATIONS AND EXPENSES.—The Board

2 of Directors shall prescribe the manner in which the

3 obligations of the Corporation may be incurred and

4 in which its expenses shall be allowed and paid.

5 ‘‘(10) QUORUM.—5 voting members of the Board

6 of Directors shall constitute a quorum, but a lesser

7 number may hold hearings.

8 ‘‘(d) CORPORATE POWERS.—On October 1, 1999, the

9 Corporation shall become a body corporate and as such

10 shall have the authority to do the following:

11 ‘‘(1) To adopt and use a corporate seal.

12 ‘‘(2) To have succession until dissolved by an Act

13 of Congress.

14 ‘‘(3) To make contracts or grants.

15 ‘‘(4) To sue and be sued, and to file and defend

16 against lawsuits in State or Federal court.

17 ‘‘(5) To appoint, through the actions of its Board

18 of Directors, officers and employees of the Corpora19 tion, to define their duties and responsibilities, fix

20 their compensations, and to dismiss at will such offi21 cers or employees.

22 ‘‘(6) To prescribe, through the actions of its

23 Board of Directors, bylaws not inconsistent with Fed24 eral law and the law of the State of incorporation,

25 regulating the manner in which its general business
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1 may be conducted and the manner in which the privi2 leges granted to it by law may be exercised.

3 ‘‘(7) To exercise, through the actions of its Board

4 of Directors or duly authorized officers, all powers

5 specifically granted by the provisions of this section,

6 and such incidental powers as shall be necessary.

7 ‘‘(8) To solicit, receive, and disburse funds from

8 private, Federal, State and local organizations.

9 ‘‘(9) To accept and employ or dispose of in fur10 therance of the purposes of this section any money or

11 property, real, personal, or mixed, tangible or intan12 gible, received by gift, devise, bequest, or otherwise.

13 ‘‘(10) To accept voluntary and uncompensated

14 services.

15 ‘‘(e) CORPORATE FUNDS.—

16 ‘‘(1) DEPOSIT OF FUNDS.—The Board of Direc17 tors shall deposit all funds of the Corporation in fed18 erally chartered and insured depository institutions

19 until such funds are disbursed under paragraph (2).

20 ‘‘(2) DISBURSEMENT OF FUNDS.—Funds of the

21 Corporation may be disbursed only for purposes that

22 are—

23 ‘‘(A) approved by the Board of Directors by

24 a recorded vote with a quorum present; and
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1 ‘‘(B) in accordance with the purposes of the

2 Corporation as specified in subsection (b).

3 ‘‘(f) NETWORK OF INFORMATION AND ASSISTANCE

4 CENTERS.—In carrying out the purpose described in sub5 section (b), the Corporation shall establish and maintain

6 a network of information and assistance centers for use by

7 veterans and the public.

8 ‘‘(g) ANNUAL REPORT.—On or before October 1 of each

9 year, the Board of Directors shall transmit a report to the

10 President and Congress describing the activities and accom11 plishments of the Corporation for the preceding year and

12 the Corporation’s findings regarding the efforts of Federal,

13 State and private organizations to assist veterans in the

14 formation and expansion of small business concerns.

15 ‘‘(h) ASSUMPTION OF DUTIES OF ADVISORY COM16 MITTEE.—On October 1, 2004, the Corporation established

17 under this section shall assume the duties, responsibilities,

18 and authority of the Advisory Committee on Veterans Af19 fairs established under section 203 of this Act.

20 ‘‘(i) USE OF MAILS.—The Corporation may use the

21 United States mails in the same manner and under the

22 same conditions as the departments and agencies of the

23 United States.

24 ‘‘(j) PROFESSIONAL CERTIFICATION ADVISORY

25 BOARD.—
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1 ‘‘(1) IN GENERAL.—Acting through the Board of

2 Directors, the Corporation shall establish a Profes3 sional Certification Advisory Board to create uniform

4 guidelines and standards for the professional certifi5 cation of members of the Armed Services to aid in

6 their efficient and orderly transition to civilian occu7 pations and professions and to remove potential bar8 riers in the areas of licensure and certification.

9 ‘‘(2) MEMBERSHIP.—The members of the Advi10 sory Board shall serve without compensation, shall

11 meet in the District of Columbia no less than quar12 terly, and shall be appointed by the Board of Direc13 tors as follows:

14 ‘‘(A) PRIVATE SECTOR MEMBERS.—The

15 Corporation shall appoint not less than 7 mem16 bers for terms of 2 years to represent private sec17 tor organizations and associations, including the

18 American Association of Community Colleges,

19 the Society for Human Resource Managers, the

20 Coalition for Professional Certification, and the

21 Council on Licensure and Enforcement.

22 ‘‘(B) PUBLIC SECTOR MEMBERS.—The Cor23 poration shall invite public sector members to

24 serve at the discretion of their departments or

25 agencies and shall—
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1 ‘‘(i) encourage the participation of the

2 Under Secretary of Defense for Personnel

3 and Readiness;

4 ‘‘(ii) encourage the participation of 2

5 officers from each branch of the Armed

6 Forces to represent the Training Commands

7 of their branch; and

8 ‘‘(iii) seek the participation and guid9 ance of the Assistant Secretary of Labor for

10 Veterans’ Employment and Training.

11 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—

12 ‘‘(1) IN GENERAL.—There are authorized to be

13 appropriated to the Corporation to carry out this sec14 tion the following amounts:

15 ‘‘(A) $2,000,000 for fiscal year 2000;

16 ‘‘(B) $4,000,000 for fiscal year 2001;

17 ‘‘(C) $4,000,000 for fiscal year 2002; and

18 ‘‘(D) $2,000,000 for fiscal year 2003.

19 ‘‘(2) PRIVATIZATION.—The Corporation shall in20 stitute and implement a plan to raise private funds

21 and become a self-sustaining corporation.’’.

22 SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS

23 AFFAIRS.

24 (a) IN GENERAL.—There is established an advisory

25 committee to be known as the ‘‘Advisory Committee on Vet-
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1 erans Business Affairs’’ (in this section referred to as the

2 ‘‘Committee’’), which shall serve as an independent source

3 of advice and policy recommendations to—

4 (1) the Administrator of the Small Business Ad5 ministration (in this section referred to as the ‘‘Ad6 ministrator’’);

7 (2) the Associate Administrator for Veterans

8 Business Development of the Small Business Admin9 istration;

10 (3) Congress;

11 (4) the President; and

12 (5) other United States policymakers.

13 (b) MEMBERSHIP.—

14 (1) IN GENERAL.—The Committee shall be com15 posed of 15 members, of whom—

16 (A) 8 shall be veterans who are owners of

17 small business concerns (within the meaning of

18 the term under section 3 of the Small Business

19 Act (15 U.S.C. 632)); and

20 (B) 7 shall be representatives of veterans or21 ganizations.

22 (2) APPOINTMENT.—

23 (A) IN GENERAL.—The members of the

24 Committee shall be appointed by the Adminis25 trator in accordance with this section.
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1 (B) INITIAL APPOINTMENTS.—Not later

2 than 90 days after the date of enactment of this

3 Act, the Administrator shall appoint the initial

4 members of the Committee.

5 (3) POLITICAL AFFILIATION.—Not more than 8

6 members of the Committee shall be of the same polit7 ical party as the President.

8 (4) PROHIBITION ON FEDERAL EMPLOYMENT.—

9 (A) IN GENERAL.—Except as provided in

10 subsection (B), no member of the Committee may

11 serve as an officer or employee of the United

12 States.

13 (B) EXCEPTION.—A member of the Com14 mittee who accepts a position as an officer or

15 employee of the United States after the date of

16 the member’s appointment to the Committee may

17 continue to serve on the Committee for not more

18 than 30 days after such acceptance.

19 (5) TERM OF SERVICE.—

20 (A) IN GENERAL.—Subject to subparagraph

21 (B), the term of service of each member of the

22 Committee shall be 3 years.

23 (B) TERMS OF INITIAL APPOINTEES.—As

24 designated by the Administrator at the time of

25 appointment, of the members first appointed—
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1 (i) 6 shall be appointed for a term of

2 4 years; and

3 (ii) 5 shall be appointed for a term of

4 5 years.

5 (6) VACANCIES.—The Administrator shall fill

6 any vacancies on the membership of the Committee

7 not later than 30 days after the date on which such

8 vacancy occurs.

9 (7) CHAIRPERSON.—

10 (A) IN GENERAL.—The members of the

11 Committee shall elect one of the members to be

12 Chairperson of the Committee.

13 (B) VACANCIES IN OFFICE OF CHAIR14 PERSON.—Any vacancy in the office of the

15 Chairperson of the Committee shall be filled by

16 the Committee at the first meeting of the Com17 mittee following the date on which the vacancy

18 occurs.

19 (c) DUTIES.—The duties of the Committee shall be the

20 following:

21 (1) Review, coordinate, and monitor plans and

22 programs developed in the public and private sectors,

23 that affect the ability of small business concerns

24 owned and controlled by veterans to obtain capital

25 and credit and to access markets.
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1 (2) Promote the collection of business informa2 tion and survey data as they relate to veterans and

3 small business concerns owned and controlled by vet4 erans.

5 (3) Monitor and promote plans, programs, and

6 operations of the departments and agencies of the

7 United States that may contribute to the formation

8 and growth of small business concerns owned and

9 controlled by veterans.

10 (4) Develop and promote initiatives, policies,

11 programs, and plans designed to foster small business

12 concerns owned and controlled by veterans.

13 (5) In cooperation with the National Veterans

14 Business Development Corporation, develop a com15 prehensive plan, to be updated annually, for joint

16 public-private sector efforts to facilitate growth and

17 development of small business concerns owned and

18 controlled by veterans.

19 (d) POWERS.—

20 (1) HEARINGS.—Subject to subsection (e), the

21 Committee may hold such hearings, sit and act at

22 such times and places, take such testimony, and re23 ceive such evidence as the Committee considers advis24 able to carry out its duties.
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1 (2) INFORMATION FROM FEDERAL AGENCIES.—

2 Upon request of the Chairperson of the Committee, the

3 head of any department or agency of the United

4 States shall furnish such information to the Com5 mittee as the Committee considers to be necessary to

6 carry out its duties.

7 (3) USE OF MAILS.—The Committee may use the

8 United States mails in the same manner and under

9 the same conditions as other departments and agen10 cies of the United States.

11 (4) GIFTS.—The Committee may accept, use,

12 and dispose of gifts or donations of services or prop13 erty.

14 (e) MEETINGS.—

15 (1) IN GENERAL.—The Committee shall meet, not

16 less than three times per year, at the call of the

17 Chairperson or at the request of the Administrator.

18 (2) LOCATION.—Each meeting of the full Com19 mittee shall be held at the headquarters of the Small

20 Business Administration located in Washington, Dis21 trict of Columbia. The Administrator shall provide

22 suitable meeting facilities and such administrative

23 support as may be necessary for each full meeting of

24 the Committee.
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1 (3) TASK GROUPS.—The Committee may, from

2 time to time, establish temporary task groups as may

3 be necessary in order to carry out its duties.

4 (f) COMPENSATION AND EXPENSES.—

5 (1) NO COMPENSATION.—Members of the Com6 mittee shall serve without compensation for their serv7 ice to the Committee.

8 (2) EXPENSES.—The members of the Committee

9 shall be reimbursed for travel and subsistence expenses

10 in accordance with section 5703 of title 5, United

11 States Code.

12 (g) REPORT.—Not later than 30 days after the end of

13 each fiscal year beginning after the date of enactment of

14 this section, the Committee shall transmit to Congress and

15 the President a report describing the activities of the Com16 mittee and any recommendations developed by the Com17 mittee for the promotion of small business concerns owned

18 and controlled by veterans.

19 (h) TERMINATION.—The Committee shall terminate its

20 business on September 30, 2004.

21 TITLE III—TECHNICAL

22 ASSISTANCE

23 SEC. 301. SCORE PROGRAM.

24 (a) IN GENERAL.—The Administrator of the Small

25 Business Administration shall enter into a memorandum
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1 of understanding with the Service Core of Retired Execu2 tives (described in section 8(b)(1)(B) of the Small Business

3 Act (15 U.S.C. 637(b)(1)(B)) and in this section referred

4 to as ‘‘SCORE’’) to provide for the following:

5 (1) The appointment by SCORE in its national

6 office of an individual to act as National Veterans

7 Business Coordinator, whose duties shall relate exclu8 sively to veterans business matters, and who shall be

9 responsible for the establishment and administration

10 of a program to coordinate counseling and training

11 regarding entrepreneurship to veterans through the

12 chapters of SCORE throughout the United States.

13 (2) The assistance of SCORE in the establishing

14 and maintaining a toll-free telephone number and an

15 Internet website to provide access for veterans to in16 formation about the counseling and training regard17 ing entrepreneurship available to veterans through

18 SCORE.

19 (3) The collection of statistics concerning services

20 provided by SCORE to veterans, including service21 disabled veterans, for inclusion in each annual report

22 published by the Administrator under section

23 4(b)(2)(B) of the Small Business Act (15 U.S.C.

24 633(b)(2)(B)).
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1 (b) RESOURCES.—The Administrator shall provide to

2 SCORE such resources as the Administrator determines

3 necessary for SCORE to carry out the requirements of the

4 memorandum of understanding specified in paragraph (1).

5 SEC. 302. ENTREPRENEURIAL ASSISTANCE.

6 Not later than 180 days after the date of enactment

7 of this Act, the Secretary of Veterans Affairs, the Adminis8 trator of the Small Business Administration, and the head

9 of the association formed pursuant to section 21(a)(3)(A)

10 of the Small Business Act (15 U.S.C. 648(a)(3)(A)) shall

11 enter into a memorandum of understanding with respect

12 to entrepreneurial assistance to veterans, including service13 disabled veterans, through Small Business Development

14 Centers (described in section 21 of the Small Business Act

15 (15 U.S.C. 648)) and facilities of the Department of Vet16 erans Affairs. Such assistance shall include the following:

17 (1) Conducting of studies and research, and the

18 distribution of information generated by such studies

19 and research, on the formation, management, financ20 ing, marketing, and operation of small business con21 cerns by veterans.

22 (2) Provision of training and counseling to vet23 erans concerning the formation, management, financ24 ing, marketing, and operation of small business con25 cerns.
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1 (3) Provision of management and technical as2 sistance to the owners and operators of small business

3 concerns regarding international markets, the pro4 motion of exports, and the transfer of technology.

5 (4) Provision of assistance and information to

6 veterans regarding procurement opportunities with

7 Federal, State, and local agencies, especially such

8 agencies funded in whole or in part with Federal

9 funds.

10 (5) Establishment of an information clearing11 house to collect and distribute information, including

12 by electronic means, on the assistance programs of

13 Federal, State, and local governments, and of the pri14 vate sector, including information on office locations,

15 key personnel, telephone numbers, mail and electronic

16 addresses, and contracting and subcontracting oppor17 tunities.

18 (6) Provision of Internet or other distance learn19 ing academic instruction for veterans in business sub20 jects, including accounting, marketing, and business

21 fundamentals.

22 (7) Compilation of a list of small business con23 cerns owned and controlled by service-disabled vet24 erans that provide products or services that could be

25 procured by the United States and delivery of such
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1 list to each department and agency of the United

2 States. Such list shall be delivered in hard copy and

3 electronic form and shall include the name and ad4 dress of each such small business concern and the

5 products or services that it provides.

6 SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT AS7 SISTANCE FOR MILITARY RESERVISTS’ SMALL

8 BUSINESSES.

9 (a) IN GENERAL.—Section 8 of the Small Business Act

10 (15 U.S.C. 637) is amended by adding at the end the fol11 lowing:

12 ‘‘(l) MANAGEMENT ASSISTANCE FOR SMALL BUSI13 NESSES AFFECTED BY MILITARY OPERATIONS.—The Ad14 ministration shall utilize, as appropriate, its entrepre15 neurial development and management assistance programs,

16 including programs involving State or private sector part17 ners, to provide business counseling and training to any

18 small business concern adversely affected by the deployment

19 of units of the Armed Forces of the United States in support

20 of a period of military conflict (as defined in section

21 7(n)(1)).’’.

22 (b) ENHANCED PUBLICITY DURING OPERATION AL23 LIED FORCE.—For the duration of Operation Allied Force

24 and for 120 days thereafter, the Administration shall en25 hance its publicity of the availability of assistance provided
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1 pursuant to the amendment made by this section, including

2 information regarding the appropriate local office at which

3 affected small businesses may seek such assistance.

4 (c) GUIDELINES.—Not later than 30 days after the

5 date of enactment of this section, the Administrator of the

6 Small Business Administration shall issue such guidelines

7 as the Administrator determines to be necessary to carry

8 out this section and the amendment made by this section.

9 TITLE IV—FINANCIAL

10 ASSISTANCE

11 SEC. 401. GENERAL BUSINESS LOAN PROGRAM.

12 (a) DEFINITION OF HANDICAPPED INDIVIDUAL.—Sec13 tion 3(f) of the Small Business Act (15 U.S.C. 632(f)) is

14 amended to read as follows:

15 ‘‘(f) For purposes of section 7 of this Act, the term

16 ‘handicapped individual’ means an individual—

17 ‘‘(1) who has a physical, mental, or emotional

18 impairment, defect, ailment, disease, or disability of

19 a permanent nature which in any way limits the se20 lection of any type of employment for which the per21 son would otherwise be qualified or qualifiable; or

22 ‘‘(2) who is a service-disabled veteran.’’.

23 (b) AUTHORIZATION TO MAKE LOANS.—Section

24 7(a)(10) of the Small Business Act (15 U.S.C. 636(a)(10))

25 is amended—
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1 (1) by inserting ‘‘guaranteed’’ after ‘‘provide’’;

2 and

3 (2) by inserting, ‘‘, including service-disabled

4 veterans,’’ after ‘‘handicapped individual’’.

5 SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERV6 ISTS.

7 (a) REPAYMENT DEFERRAL FOR ACTIVE DUTY RE8 SERVISTS.—Section 7 of the Small Business Act (15 U.S.C.

9 636) is amended by adding at the end the following:

10 ‘‘(n) REPAYMENT DEFERRED FOR ACTIVE DUTY RE11 SERVISTS.—

12 ‘‘(1) DEFINITIONS.—In this subsection:

13 ‘‘(A) ELIGIBLE RESERVIST.—The term ‘eli14 gible reservist’ means a member of a reserve com15 ponent of the Armed Forces ordered to active

16 duty during a period of military conflict.

17 ‘‘(B) ESSENTIAL EMPLOYEE.—The term ‘es18 sential employee’ means an individual who is

19 employed by a small business concern and whose

20 managerial or technical expertise is critical to

21 the successful day-to-day operations of that small

22 business concern.

23 ‘‘(C) PERIOD OF MILITARY CONFLICT.—The

24 term ‘period of military conflict’ means—
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1 ‘‘(i) a period of war declared by Con2 gress;

3 ‘‘(ii) a period of national emergency

4 declared by Congress or by the President; or

5 ‘‘(iii) a period of a contingency oper6 ation, as defined in section 101(a) of title

7 10, United States Code.

8 ‘‘(D) QUALIFIED BORROWER.—The term

9 ‘qualified borrower’ means—

10 ‘‘(i) an individual who is an eligible

11 reservist and who received a direct loan

12 under subsection (a) or (b) before being or13 dered to active duty; or

14 ‘‘(ii) a small business concern that re15 ceived a direct loan under subsection (a) or

16 (b) before an eligible reservist, who is an es17 sential employee, was ordered to active

18 duty.

19 ‘‘(2) DEFERRAL OF DIRECT LOANS.—

20 ‘‘(A) IN GENERAL.—The Administration

21 shall, upon written request, defer repayment of

22 principal and interest due on a direct loan made

23 under subsection (a) or (b), if such loan was in24 curred by a qualified borrower.
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1 ‘‘(B) PERIOD OF DEFERRAL.—The period of

2 deferral for repayment under this paragraph

3 shall begin on the date on which the eligible re4 servist is ordered to active duty and shall termi5 nate on the date that is 180 days after the date

6 such eligible reservist is discharged or released

7 from active duty.

8 ‘‘(C) INTEREST RATE REDUCTION DURING

9 DEFERRAL.—Notwithstanding any other provi10 sion of law, during the period of deferral de11 scribed in subparagraph (B), the Administration

12 may, in its discretion, reduce the interest rate on

13 any loan qualifying for a deferral under this

14 paragraph.

15 ‘‘(3) DEFERRAL OF LOAN GUARANTEES AND

16 OTHER FINANCINGS.—The Administration shall—

17 ‘‘(A) encourage intermediaries participating

18 in the program under subsection (m) to defer re19 payment of a loan made with proceeds made

20 available under that subsection, if such loan was

21 incurred by a small business concern that is eli22 gible to apply for assistance under subsection

23 (b)(3); and
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1 ‘‘(B) not later than 30 days after the date

2 of enactment of this subsection, establish guide3 lines to—

4 ‘‘(i) encourage lenders and other inter5 mediaries to defer repayment of, or provide

6 other relief relating to, loan guarantees

7 under subsection (a) and financings under

8 section 504 of the Small Business Invest9 ment Act of 1958 that were incurred by

10 small business concerns that are eligible to

11 apply for assistance under subsection (b)(3),

12 and loan guarantees provided under sub13 section (m) if the intermediary provides re14 lief to a small business concern under this

15 paragraph; and

16 ‘‘(ii) implement a program to provide

17 for the deferral of repayment or other relief

18 to any intermediary providing relief to a

19 small business borrower under this para20 graph.’’.

21 (b) DISASTER LOAN ASSISTANCE FOR MILITARY RE22 SERVISTS’ SMALL BUSINESSES.—Section 7(b) of the Small

23 Business Act (15 U.S.C. 636(b)) is amended by inserting

24 after the undesignated paragraph that begins with ‘‘Pro25 vided, That no loan’’, the following:
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1 ‘‘(3)(A) In this paragraph—

2 ‘‘(i) the term ‘essential employee’ means an

3 individual who is employed by a small business

4 concern and whose managerial or technical ex5 pertise is critical to the successful day-to-day op6 erations of that small business concern;

7 ‘‘(ii) the term ‘period of military conflict’

8 has the meaning given the term in subsection

9 (n)(1); and

10 ‘‘(iii) the term ‘substantial economic injury’

11 means an economic harm to a business concern

12 that results in the inability of the business

13 concern—

14 ‘‘(I) to meet its obligations as they ma15 ture;

16 ‘‘(II) to pay its ordinary and nec17 essary operating expenses; or

18 ‘‘(III) to market, produce, or provide a

19 product or service ordinarily marketed, pro20 duced, or provided by the business concern.

21 ‘‘(B) The Administration may make such dis22 aster loans (either directly or in cooperation with

23 banks or other lending institutions through agree24 ments to participate on an immediate or deferred

25 basis) to assist a small business concern that has suf-
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1 fered or that is likely to suffer substantial economic

2 injury as the result of an essential employee of such

3 small business concern being ordered to active mili4 tary duty during a period of military conflict.

5 ‘‘(C) A small business concern described in sub6 paragraph (B) shall be eligible to apply for assistance

7 under this paragraph during the period beginning on

8 the date on which the essential employee is ordered

9 to active duty and ending on the date that is 90 days

10 after the date on which such essential employee is dis11 charged or released from active duty.

12 ‘‘(D) Any loan or guarantee extended pursuant

13 to this paragraph shall be made at the same interest

14 rate as economic injury loans under paragraph (2).

15 ‘‘(E) No loan may be made under this para16 graph, either directly or in cooperation with banks or

17 other lending institutions through agreements to par18 ticipate on an immediate or deferred basis, if the

19 total amount outstanding and committed to the bor20 rower under this subsection would exceed $1,500,000,

21 unless such applicant constitutes a major source of

22 employment in its surrounding area, as determined

23 by the Administration, in which case the Administra24 tion, in its discretion, may waive the $1,500,000 lim25 itation.
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1 ‘‘(F) For purposes of assistance under this para2 graph, no declaration of a disaster area shall be re3 quired.’’.

4 (c) ENHANCED PUBLICITY DURING OPERATION AL5 LIED FORCE.—For the duration of Operation Allied Force

6 and for 120 days thereafter, the Administration shall en7 hance its publicity of the availability of assistance provided

8 pursuant to the amendments made by this section, includ9 ing information regarding the appropriate local office at

10 which affected small businesses may seek such assistance.

11 (d) GUIDELINES.—Not later than 30 days after the

12 date of enactment of this section, the Administrator of the

13 Small Business Administration shall issue such guidelines

14 as the Administrator determines to be necessary to carry

15 out this section and the amendments made by this section.

16 (e) EFFECTIVE DATES.—

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the amendments made by this section shall

19 take effect on the date of the enactment of this section.

20 (2) DISASTER LOANS.—The amendments made

21 by subsection (b) shall apply to economic injury suf22 fered or likely to be suffered as the result of a period

23 of military conflict occurring or ending on or after

24 March 24, 1999.
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1 SEC. 403. MICROLOAN PROGRAM.

2 Section 7(m)(1)(A)(i) of the Small Business Act (15

3 U.S.C. 636(m)(1)(A)(i)) is amended by inserting ‘‘veteran

4 (within the meaning of such term under section 3(q)),’’ after

5 ‘‘low-income,’’.

6 SEC. 404. DELTA LOAN PROGRAM.

7 Section 7(a)(21)(A) Small Business Act (15 U.S.C.

8 636(a)(21)(A)) is amended in subclause (ii) by inserting

9 ‘‘or a veteran’’ after ‘‘qualified individual’’.

10 SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.

11 Section 501(d)(3) of the Small Business Investment

12 Act (15 U.S.C. 695(d)(3)) is amended—

13 (1) by redesignating subparagraphs (E), (F),

14 and (G) as subparagraphs (F), (G), and (H), respec15 tively; and

16 (2) by inserting after subparagraph (D) the fol17 lowing:

18 ‘‘(E) expansion of small business concerns

19 owned and controlled by veterans, as defined in

20 section 3(q) of the Small Business Act (15 U.S.C.

21 632(q)), especially service-disabled veterans, as

22 defined in such section 3(q),’’.
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1 TITLE V—PROCUREMENT

2 ASSISTANCE

3 SEC. 501. SUBCONTRACTING.

4 (a) STATEMENT OF POLICY.—Section 8(d)(1) of the

5 Small Business Act (15 U.S.C. 637(d)(1)) is amended by

6 inserting ‘‘small business concerns owned and controlled by

7 service-disabled veterans,’’ after ‘‘small business concerns,’’

8 the first place it appears in the first and second sentences.

9 (b) CONTRACT CLAUSE.—The contract clause specified

10 in section 8(d)(3) of the Small Business Act (15 U.S.C.

11 637(d)(3)) is amended as follows:

12 (1) Subparagraph (A) of such clause is amended

13 by inserting ‘‘small business concerns owned and con14 trolled by veterans,’’ after ‘‘small business concerns,’’

15 the first place it appears in the first and second sen16 tences.

17 (2) Subparagraphs (E) and (F) of such clause

18 are redesignated as subparagraphs (F) and (G), re19 spectively, and the following new subparagraph is in20 serted after subparagraph (D) of such clause:

21 ‘‘(E) The term ‘small business concern owned

22 and controlled by veterans’ shall mean a small busi23 ness concern—

24 ‘‘(i) which is at least 51 per centum owned

25 by one or more eligible veterans; or, in the case
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1 of any publicly owned business, at least 51 per

2 centum of the stock of which is owned by one or

3 more veterans; and

4 ‘‘(ii) whose management and daily business

5 operations are controlled by such veterans. The

6 contractor shall treat as veterans all individuals

7 who are veterans within the meaning of the term

8 under section 3(q) of the Small Business Act.’’.

9 (3) Subparagraph (F) of such clause, as redesig10 nated by paragraph (2) of this subsection, is amended

11 by inserting ‘‘small business concern owned and con12 trolled by veterans,’’ after ‘‘small business concern,’’

13 the first place it appears.

14 (c) CONFORMING AMENDMENTS.—Section 8(d) of the

15 Small Business Act (15 U.S.C. 637(d)) is further amended

16 by inserting ‘‘small business concerns owned and controlled

17 by veterans,’’ after ‘‘small business concerns,’’ the first place

18 it appears in paragraphs (4)(D), (4)(E), (6)(A), (6)(C),

19 (6)(F), and (10)(B).

20 SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.

21 (a) GOVERNMENT-WIDE PARTICIPATION GOALS.—

22 Subsection (g)(1) of section 15 of the Small Business Act

23 (15 U.S.C. 644) is amended—

24 (1) in the first sentence, by inserting ‘‘small

25 business concerns owned and controlled by service dis-
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1 abled veterans,’’ after ‘‘small business concerns,’’ the

2 first place it appears;

3 (2) by inserting after the second sentence, the fol4 lowing: ‘‘The Government-wide goal for participation

5 by small business concerns owned and controlled by

6 service-disabled veterans shall be established at not

7 less than 5 percent of the total value of all prime con8 tract and subcontract awards for each fiscal year.’’;

9 and

10 (3) in the second to last sentence, by inserting

11 ‘‘small business concerns owned and controlled by

12 service-disabled veterans,’’ after ‘‘small business con13 cerns,’’ the first place it appears.

14 (b) AGENCY PARTICIPATION GOALS.—Subsection

15 (g)(2) of section 15 of the Small Business Act (15 U.S.C.

16 644) is amended—

17 (1) in the first sentence, by inserting ‘‘by small

18 business concerns owned and controlled by service-dis19 abled veterans,’’ after ‘‘small business concerns,’’; the

20 first place it appears;

21 (2) in the second sentence, by inserting ‘‘small

22 business concerns owned and controlled by service-dis23 abled veterans,’’ after ‘‘small business concerns,’’ the

24 first place it appears; and
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1 (3) in the fourth sentence, by inserting ‘‘small

2 business concerns owned and controlled by service-dis3 abled veterans, by’’ after ‘‘including participation

4 by’’.

5 TITLE VI—REPORTS AND DATA

6 COLLECTION

7 SEC. 601. REPORTING REQUIREMENTS.

8 (a) REPORTS TO SMALL BUSINESS ADMINISTRA9 TION.—Subsection (h)(1) of section 15 of the Small Busi10 ness Act (15 U.S.C. 644) is amended by inserting ‘‘small

11 business concerns owned and controlled by veterans (includ12 ing service-disabled veterans),’’ after ‘‘small business con13 cerns,’’ the first place it appears.

14 (b) REPORTS TO THE PRESIDENT AND CONGRESS.—

15 Subsection (h)(2) of section 15 of the Small Business Act

16 (15 U.S.C. 644) is amended—

17 (1) by inserting ‘‘and Congress’’ before the period

18 at the end of the first sentence; and

19 (2) in subparagraphs (A), (D), and (E), by in20 serting ‘‘small business concerns owned and controlled

21 by service-disabled veterans,’’ after ‘‘small business

22 concerns,’’ the first place it appears.

23 SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.

24 Section 303(e) of the Small Business Economic Policy

25 Act of 1980 (15 U.S.C. 631b(e)) is amended—
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1 (1) in paragraph (1), by striking ‘‘and’’ after the

2 semicolon;

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

4 the end and inserting ‘‘; and’’; and

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

6 ‘‘(3) small business concerns owned and con7 trolled by veterans, as defined in section 3(q) of the

8 Small Business Act (15 U.S.C. 632(q)), and small

9 business concerns owned and controlled by service-dis10 abled veterans, as defined in such section 3(q).’’.

11 SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.

12 The Administrator of the Small Business Administra13 tion shall transmit annually to the Committees on Small

14 Business and Veterans Affairs of the House of Representa15 tives and the Senate a report on the needs of small business

16 concerns owned and controlled by veterans and small busi17 ness concerns owned and controlled by service-disabled vet18 erans, which shall include information on—

19 (1) the availability of Small Business Adminis20 tration programs for such small business concerns

21 and the degree of utilization of such programs by such

22 small business concerns during the preceding 12-

23 month period, including statistical information on

24 such utilization as compared to the small business

25 community as a whole;
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1 (2) the percentage and dollar value of Federal

2 contracts awarded to such small business concerns

3 during the preceding 12-month period; and

4 (3) proposals to improve the access of such small

5 business concerns to the assistance made available by

6 the United States.

7 SEC. 604. DATA AND INFORMATION COLLECTION.

8 (a) INFORMATION ON FEDERAL PROCUREMENT PRAC9 TICES.—The Administrator of the Small Business Adminis10 tration shall, for each fiscal year—

11 (1) collect information concerning the procure12 ment practices and procedures of each department

13 and agency of the United States having procurement

14 authority;

15 (2) publish and disseminate such information to

16 procurement officers in all Federal agencies; and

17 (3) make such information available to any

18 small business concern requesting such information.

19 (b) IDENTIFICATION OF SMALL BUSINESS CONCERNS

20 OWNED BY ELIGIBLE VETERANS.—Each fiscal year, the

21 Secretary of Veterans Affairs shall, in consultation with the

22 Assistant Secretary of Labor for Veterans’ Employment and

23 Training and the Administrator of the Small Business Ad24 ministration, identify small business concerns owned and

25 controlled by veterans in the United States. The Secretary
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1 shall inform each small business concern identified under

2 this paragraph that information on Federal procurement

3 is available from the Administrator.

4 (c) SELF-EMPLOYMENT OPPORTUNITIES.—The Sec5 retary of Labor, the Secretary of Veterans Affairs, and the

6 Administrator of the Small Business Administration shall

7 enter into a memorandum of understanding to provide for

8 coordination of vocational rehabilitation services, technical

9 and managerial assistance, and financial assistance to vet10 erans, including service-disabled veterans, seeking to employ

11 themselves by forming or expanding small business con12 cerns. The memorandum of understanding shall include rec13 ommendations for expanding existing programs or estab14 lishing new programs to provide such services or assistance

15 to such veterans.

16 TITLE VII—MISCELLANEOUS

17 PROVISIONS

18 SEC. 701. ADMINISTRATOR’S ORDER.

19 The Administrator of the Small Business Administra20 tion shall strengthen and reissue the Administrator’s order

21 regarding the 3d sentence of section 4(b)(1) of the Small

22 Business Act (15 U.S.C. 633(b)(1)), relating to non23 discrimination and special considerations for veterans, and

24 take all necessary steps to ensure that its provisions are

25 fully and vigorously implemented.
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1 SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF

2 ADVOCACY.

3 Section 202 of Public Law 94–305 (15 U.S.C. 634b)

4 is amended—

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

6 end;

7 (2) in paragraph (11), by striking the period at

8 the end and inserting ‘‘; and’’; and

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

10 ‘‘(12) evaluate the efforts of each department and

11 agency of the United States, and of private industry,

12 to assist small business concerns owned and controlled

13 by veterans, as defined in section 3(q) of the Small

14 Business Act (15 U.S.C. 632(q)), and small business

15 concerns owned and controlled by serviced-disabled

16 veterans, as defined in such section 3(q), and to pro17 vide statistical information on the utilization of such

18 programs by such small business concerns, and to

19 make appropriate recommendations to the Adminis20 trator of the Small Business Administration and to

21 Congress in order to promote the establishment and

22 growth of those small business concerns.’’.

23 SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.

24 (a) IN GENERAL.—The Comptroller General shall con25 duct a study on whether there would exist any additional

26 risk or cost to the United States if—
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1 (1) up to 10 percent of the loans guaranteed

2 under chapter 37 of title 38, United States Code, were

3 made for the acquisition or construction of fixed as4 sets used in a trade or business rather than for the

5 construction or purchase of residential buildings; and

6 (2) such loans for acquisition or construction of

7 fixed assets were for a term of not more than 10 years

8 and the terms regarding eligibility, loan limits, inter9 est, fees, and down payment were the same as for

10 other loans guaranteed under such chapter.

11 (b) REPORT.—

12 (1) IN GENERAL.—Not later than 180 days after

13 the enactment of this Act, the Comptroller General

14 shall transmit the report described in subsection (a)

15 to the Committees on Veterans’ Affairs and the Com16 mittees on Small Business of the House of Represent17 atives and the Senate.

18 (2) CONTENTS OF REPORT.—The report required

19 by paragraph (1) shall specifically address the fol20 lowing:

21 (A) With respect to the change in the vet22 erans’ housing loan program contemplated under

23 subsection (a):
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1 (i) The increase or decrease in admin2 istrative costs to the Department of Veterans

3 Affairs.

4 (ii) The increase or decrease in the de5 gree of exposure of the United States as the

6 guarantor of the loans.

7 (iii) The increase or decrease in the

8 Federal subsidy rate that would be possible.

9 (iv) Any increase in the interest rate

10 or fees charged to the borrower or lender

11 that would be required to maintain present

12 program costs.

13 (B) Information regarding the delinquency

14 rates, default rates, length of time required for

15 recovery after default, for fixed-asset business

16 loans, of a size and duration comparable to those

17 contemplated under subsection (a), made avail18 able in the private market or under section 503

19 of the Small Business Investment Act.