IIB

106TH CONGRESS

1ST SESSION H. R. 1568

IN THE SENATE OF THE UNITED STATES

JUNE 30, 1999

Received; read twice and referred to the Committee on Small Business

AN ACT

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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Veterans Entrepre3 neurship and Small Business Development Act of 1999’’.

4 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.

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.
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1 TITLE I—GENERAL PROVISIONS

2 SEC. 101. FINDINGS.

3 Congress finds the following:

4 (1) Veterans of the United States Armed

5 Forces have been and continue to be vital to the

6 small business 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 as11 sist veterans, particularly service-disabled veterans,

12 in playing a greater role in the economy of the

13 United States by forming and expanding small busi14 ness enterprises.

15 (4) Medical advances and new medical tech16 nologies have made it possible for service-disabled

17 veterans to play a much more active role in the for18 mation and expansion of small business enterprises

19 in the United States.

20 (5) The United States must provide additional

21 assistance and support to veterans to better equip

22 them to form and expand small business enterprises,

23 thereby enabling them to realize the American

24 dream that they fought to protect.
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1 SEC. 102. PURPOSE.

2 The purpose of this Act is to expand existing and es3 tablish new assistance programs for veterans who own or

4 operate small businesses. This Act accomplishes this pur5 pose by—

6 (1) expanding the eligibility for certain small

7 business assistance programs to include veterans;

8 (2) directing certain departments and agencies

9 of the United States to take actions that enhance

10 small business assistance to veterans; and

11 (3) establishing new institutions to provide

12 small business assistance to veterans or to support

13 the institutions that provide such assistance.

14 SEC. 103. DEFINITIONS.

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

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

17 the end the following:

18 ‘‘(q) DEFINITIONS RELATING TO VETERANS.—In

19 this Act, the following definitions apply:

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

21 ‘service-disabled veteran’ means a veteran with a

22 disability that is service-connected (as defined in sec23 tion 101(16) of title 38, United States Code).

24 ‘‘(2) SMALL BUSINESS CONCERN OWNED AND

25 CONTROLLED BY SERVICE-DISABLED VETERANS.—

26 The term ‘small business concern owned and con-
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1 trolled by service-disabled veterans’ means a small

2 business concern—

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

4 owned by one or more service-disabled veterans

5 or, in the case of any publicly owned business,

6 not less than 51 percent of the stock of which

7 is owned by one or more service-disabled vet8 erans; and

9 ‘‘(B) the management and daily business

10 operations of which are controlled by one or

11 more service-disabled veterans or, in the case of

12 a veteran with permanent and severe disability,

13 the spouse or permanent caregiver of such vet14 eran.

15 ‘‘(3) SMALL BUSINESS CONCERN OWNED AND

16 CONTROLLED BY VETERANS.—The term ‘small busi17 ness concern owned and controlled by veterans’

18 means a small business concern—

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

20 owned by one or more veterans or, in the case

21 of any publicly owned business, not less than 51

22 percent of the stock of which is owned by one

23 or more veterans; and
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1 ‘‘(B) the management and daily business

2 operations of which are controlled by one or

3 more veterans.

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

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

6 United States Code.’’.

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

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

9 Act, as added by this section, apply.

10 TITLE II—VETERANS BUSINESS

11 DEVELOPMENT

12 SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE

13 SMALL BUSINESS ADMINISTRATION.

14 (a) IN GENERAL.—Section 4(b)(1) of the Small Busi15 ness Act (15 U.S.C. 633(b)(1)) is amended—

16 (1) in the fifth sentence, by striking ‘‘four Asso17 ciate Administrators’’ and inserting ‘‘five Associate

18 Administrators’’; and

19 (2) by inserting after the fifth sentence the fol20 lowing: ‘‘One such Associate Administrator shall be

21 the Associate Administrator for Veterans Business

22 Development, who shall administer the Office of Vet23 erans Business Development established under sec24 tion 32.’’.
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1 (b) OFFICE OF VETERANS BUSINESS DEVELOP2 MENT; ASSOCIATE ADMINISTRATOR.—The Small Business

3 Act (15 U.S.C. 631 et seq.) is further amended—

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

5 and

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

7 ‘‘SEC. 32. VETERANS PROGRAMS.

8 ‘‘(a) OFFICE OF VETERANS BUSINESS DEVELOP9 MENT.—There is established in the Administration an Of10 fice of Veterans Business Development, which shall be ad11 ministered by the Associate Administrator for Veterans

12 Business Development (in this section referred to as the

13 ‘Associate Administrator’) appointed under section

14 4(b)(1).

15 ‘‘(b) ASSOCIATE ADMINISTRATOR FOR VETERANS

16 BUSINESS DEVELOPMENT.—The Associate

17 Administrator—

18 ‘‘(1) shall be an appointee in the Senior Execu19 tive Service;

20 ‘‘(2) shall be responsible for the formulation,

21 execution, and promotion of policies and programs of

22 the Administration that provide assistance to small

23 business concerns owned and controlled by veterans

24 and small business concerns owned and controlled by

25 service-disabled veterans. The Associate Adminis-
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1 trator shall act as an ombudsman for full consider2 ation of veterans in all programs of the Administra3 tion; and

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

5 to the Administrator.’’.

6 SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT

7 CORPORATION.

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

9 further amended by adding after section 32 (as added by

10 this Act) the following:

11 ‘‘SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT

12 CORPORATION.

13 ‘‘(a) ESTABLISHMENT.—There is established a feder14 ally chartered corporation to be known as the National

15 Veterans Business Development Corporation (in this sec16 tion referred to as the ‘Corporation’) which shall be incor17 porated under the laws of the District of Columbia and

18 which shall have the powers granted in this section.

19 ‘‘(b) PURPOSES OF THE CORPORATION.—The pur20 poses of the Corporation shall be—

21 ‘‘(1) to expand the provision of and improve ac22 cess to technical assistance regarding entrepreneur23 ship for the Nation’s veterans; and

24 ‘‘(2) to assist veterans, including service-dis25 abled veterans, with the formation and expansion of
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1 small business concerns by working with and orga2 nizing public and private resources, including those

3 of the Small Business Administration, the Depart4 ment of Veterans Affairs, the Department of Labor,

5 the Department of Commerce, the Department of

6 Defense, the Service Corps of Retired Executives

7 (described in section 8(b)(1)(B) of this Act), the

8 Small Business Development Centers (described in

9 section 21 of this Act), and the business develop10 ment staffs of each department and agency of the

11 United States.

12 ‘‘(c) BOARD OF DIRECTORS.—

13 ‘‘(1) IN GENERAL.—The management of the

14 Corporation shall be vested in a Board of Directors

15 composed of nine voting members and three non16 voting ex officio members.

17 ‘‘(2) APPOINTMENT OF VOTING MEMBERS.—

18 The President shall appoint United States citizens

19 to be voting members of the Board of Directors as

20 follows:

21 ‘‘(A) One from a list of individuals nomi22 nated by the chairman of the Committee on

23 Small Business of the House of Representa24 tives.
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1 ‘‘(B) One from a list of individuals nomi2 nated by the chairman of the Committee on

3 Small Business of the Senate.

4 ‘‘(C) One from a list of individuals nomi5 nated by the ranking minority member of the

6 Committee on Small Business of the House of

7 Representatives.

8 ‘‘(D) One from a list of individuals nomi9 nated by the ranking minority members of the

10 Committee on Small Business of the Senate.

11 ‘‘(E) One from a list of individuals nomi12 nated by the chairman of the Committee on

13 Veterans’ Affairs of the House of Representa14 tives.

15 ‘‘(F) One from a list of individuals nomi16 nated by the chairman of the Committee on

17 Veterans’ Affairs of the Senate.

18 ‘‘(G) One from a list of individuals nomi19 nated by the ranking minority member of the

20 Committee on Veterans’ Affairs of the House of

21 Representatives.

22 ‘‘(H) One from a list of individuals nomi23 nated the ranking minority member of the

24 Committee on Veterans’ Affairs of the Senate.

25 ‘‘(I) One of the President’s own choosing.
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1 ‘‘(3) EX OFFICIO MEMBERS.—The Adminis2 trator of the Small Business Administration, the

3 Secretary of Defense, and the Secretary of Veterans

4 Affairs shall serve as the nonvoting ex officio mem5 bers of the Board of Directors.

6 ‘‘(4) CHAIRPERSON.—The members of the

7 Board of Directors appointed under paragraph (2)

8 shall elect one such member to serve as chairperson

9 of the Board of Directors for a term of 2 years.

10 ‘‘(5) TERMS OF APPOINTED MEMBERS.—

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

12 Board of Directors appointed under paragraph

13 (2) shall serve a term of 6 years, except as pro14 vided in subparagraph (B).

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

16 designated by the President at the time of ap17 pointment, of the members first appointed—

18 ‘‘(i) three shall be for a term of 2

19 years; and

20 ‘‘(ii) three shall be for a term of 4

21 years.

22 ‘‘(C) UNEXPIRED TERMS.—Any member of

23 the Board of Directors appointed to fill a va24 cancy occurring before the expiration of the

25 term for which the member’s predecessor was
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1 appointed shall be appointed only for the re2 mainder of the term. A member may serve after

3 the expiration of that member’s term until a

4 successor has taken office.

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

6 of Directors shall be filled in the manner in which

7 the original appointment was made. In the case of

8 a vacancy in the office of the Administrator of the

9 Small Business Administration or the Secretary of

10 Veterans Affairs, and pending the appointment of a

11 successor, an acting appointee for such vacancy may

12 serve as an ex officio member.

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

14 voting member of the Board of Directors may be an

15 officer or employee of the United States while serv16 ing as a member of the Board of Directors or during

17 the 2-year period preceding such service.

18 ‘‘(8) IMPARTIALITY AND NONDISCRIMINA19 TION.—The Board of Directors shall administer the

20 affairs of the Corporation fairly and impartially and

21 without discrimination.

22 ‘‘(9) OBLIGATIONS AND EXPENSES.—The

23 Board of Directors shall prescribe the manner in

24 which the obligations of the Corporation may be in-
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1 curred and in which its expenses shall be allowed

2 and paid.

3 ‘‘(10) QUORUM.—Five voting members of the

4 Board of Directors shall constitute a quorum, but a

5 lesser number may hold hearings.

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

7 Corporation shall become a body corporate and as such

8 shall have the authority to do the following:

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

10 ‘‘(2) To have succession until dissolved by an

11 Act of Congress.

12 ‘‘(3) To make contracts or grants.

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

14 against lawsuits in State or Federal court.

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

16 Board of Directors, officers and employees of the

17 Corporation, to define their duties and responsibil18 ities, fix their compensations, and to dismiss at will

19 such officers or employees.

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

21 Board of Directors, bylaws not inconsistent with

22 Federal law and the law of the State of incorpora23 tion, regulating the manner in which its general

24 business may be conducted and the manner in which

25 the privileges granted to it by law may be exercised.
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1 ‘‘(7) To exercise, through the actions of its

2 Board of Directors or duly authorized officers, all

3 powers specifically granted by the provisions of this

4 section, and such incidental powers as shall be nec5 essary.

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

7 private, Federal, State and local organizations.

8 ‘‘(9) To accept and employ or dispose of in fur9 therance of the purposes of this section any money

10 or property, real, personal, or mixed, tangible or in11 tangible, received by gift, devise, bequest, or other12 wise.

13 ‘‘(10) To accept voluntary and uncompensated

14 services.

15 ‘‘(e) CORPORATE FUNDS.—

16 ‘‘(1) DEPOSIT OF FUNDS.—The Board of Di17 rectors shall deposit all funds of the Corporation in

18 federally chartered and insured depository institu19 tions until such funds are disbursed under para20 graph (2).

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

22 Corporation may be disbursed only for purposes that

23 are—

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

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

2 the 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

7 by veterans and the public.

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

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

10 to the President and the Congress describing the activities

11 and accomplishments of the Corporation for the preceding

12 year and the Corporation’s findings regarding the efforts

13 of Federal, State and private organizations to assist vet14 erans in the formation and expansion of small business

15 concerns.

16 ‘‘(h) ASSUMPTION OF DUTIES OF ADVISORY COM17 MITTEE.—On October 1, 2004, the Corporation estab18 lished under this section shall assume the duties, respon19 sibilities, and authority of the Advisory Committee on Vet20 erans Affairs established under section 203 of this Act.

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

22 United States mails in the same manner and under the

23 same conditions as the departments and agencies of the

24 United States.
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1 ‘‘(j) PROFESSIONAL CERTIFICATION ADVISORY

2 BOARD.—

3 ‘‘(1) IN GENERAL.—Acting through the Board

4 of Directors, the Corporation shall establish a Pro5 fessional Certification Advisory Board to create uni6 form guidelines and standards for the professional

7 certification of members of the Armed Services to

8 aid in their efficient and orderly transition to civilian

9 occupations and professions and to remove potential

10 barriers in the areas of licensure and certification.

11 ‘‘(2) MEMBERSHIP.—The members of the Advi12 sory Board shall serve without compensation, shall

13 meet in the District of Columbia no less than quar14 terly, and shall be appointed by the Board of Direc15 tors as follows:

16 ‘‘(A) PRIVATE SECTOR MEMBERS.—The

17 Corporation shall appoint not less than seven

18 members for terms of 2 years to represent pri19 vate sector organizations and associations, in20 cluding the American Association of Community

21 Colleges, the Society for Human Resource Man22 agers, the Coalition for Professional Certifi23 cation, the Council on Licensure and Enforce24 ment, and the American Legion.
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1 ‘‘(B) PUBLIC SECTOR MEMBERS.—The

2 Corporation shall invite public sector members

3 to serve at the discretion of their departments

4 or agencies and shall—

5 ‘‘(i) encourage the participation of the

6 Under Secretary of Defense for Personnel

7 and Readiness;

8 ‘‘(ii) encourage the participation of

9 two officers from each branch of the

10 Armed Forces to represent the Training

11 Commands of their branch; and

12 ‘‘(iii) seek the participation and guid13 ance of the Assistant Secretary of Labor

14 for Veterans’ Employment and Training.

15 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—

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

17 appropriated to the Corporation to carry out this

18 section the following amounts:

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

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

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

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

23 ‘‘(2) PRIVATIZATION.—The Corporation shall

24 institute and implement a plan to raise private funds

25 and become a self-sustaining corporation.’’.
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1 SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS

2 AFFAIRS.

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

4 committee to be known as the ‘‘Advisory Committee on

5 Veterans Business Affairs’’ (in this section referred to as

6 the ‘‘Committee’’), which shall serve as an independent

7 source of advice and policy recommendations to—

8 (1) the Administrator of the Small Business

9 Administration (in this section referred to as the

10 ‘‘Administrator’’);

11 (2) the Associate Administrator for Veterans

12 Business Development of the Small Business Admin13 istration;

14 (3) the Congress;

15 (4) the President; and

16 (5) other United States policymakers.

17 (b) MEMBERSHIP.—

18 (1) IN GENERAL.—The Committee shall be

19 composed of 15 members, of whom—

20 (A) eight shall be veterans who are owners

21 of small business concerns (within the meaning

22 of the term under section 3 of the Small Busi23 ness Act (15 U.S.C. 632)); and

24 (B) seven shall be representatives of vet25 erans organizations.

26 (2) APPOINTMENT.—
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1 (A) IN GENERAL.—The members of the

2 Committee shall be appointed by the Adminis3 trator in accordance with this section.

4 (B) INITIAL APPOINTMENTS.—Not later

5 than 90 days after the date of enactment of

6 this Act, the Administrator shall appoint the

7 initial members of the Committee.

8 (3) POLITICAL AFFILIATION.—Not more than

9 eight members of the Committee shall be of the

10 same political party as the President.

11 (4) PROHIBITION ON FEDERAL EMPLOY12 MENT.—

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

14 subsection (B), no member of the Committee

15 may serve as an officer or employee of the

16 United States.

17 (B) EXCEPTION.—A member of the Com18 mittee who accepts a position as an officer or

19 employee of the United States after the date of

20 the member’s appointment to the Committee

21 may continue to serve on the Committee for not

22 more than 30 days after such acceptance.

23 (5) TERM OF SERVICE.—
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1 (A) IN GENERAL.—Subject to subpara2 graph (B), the term of service of each member

3 of the Committee shall be 3 years.

4 (B) TERMS OF INITIAL APPOINTEES.—As

5 designated by the Administrator at the time of

6 appointment, of the members first appointed—

7 (i) six shall be appointed for a term of

8 4 years; and

9 (ii) five shall be appointed for a term

10 of 5 years.

11 (6) VACANCIES.—The Administrator shall fill

12 any vacancies on the membership of the Committee

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

14 vacancy occurs.

15 (7) CHAIRPERSON.—

16 (A) IN GENERAL.—The members of the

17 Committee shall elect one of the members to be

18 Chairperson of the Committee.

19 (B) VACANCIES IN OFFICE OF CHAIR20 PERSON.—Any vacancy in the office of the

21 Chairperson of the Committee shall be filled by

22 the Committee at the first meeting of the Com23 mittee following the date on which the vacancy

24 occurs.
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1 (c) DUTIES.—The duties of the Committee shall be

2 the following:

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

4 programs developed in the public and private sec5 tors, that affect the ability of small business con6 cerns owned and controlled by veterans to obtain

7 capital and credit and to access markets.

8 (2) Promote the collection of business informa9 tion and survey data as they relate to veterans and

10 small business concerns owned and controlled by vet11 erans.

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

13 operations of the departments and agencies of the

14 United States that may contribute to the formation

15 and growth of small business concerns owned and

16 controlled by veterans.

17 (4) Develop and promote initiatives, policies,

18 programs, and plans designed to foster small busi19 ness concerns owned and controlled by veterans.

20 (5) In cooperation with the National Veterans

21 Business Development Corporation, develop a com22 prehensive plan, to be updated annually, for joint

23 public-private sector efforts to facilitate growth and

24 development of small business concerns owned and

25 controlled by veterans.
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1 (d) POWERS.—

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

3 Committee may hold such hearings, sit and act at

4 such times and places, take such testimony, and re5 ceive such evidence as the Committee considers ad6 visable to carry out its duties.

7 (2) INFORMATION FROM FEDERAL AGENCIES.—

8 Upon request of the Chairperson of the Committee,

9 the head of any department or agency of the United

10 States shall furnish such information to the Com11 mittee as the Committee considers to be necessary to

12 carry out its duties.

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

14 the United States mails in the same manner and

15 under the same conditions as other departments and

16 agencies of the United States.

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

18 and dispose of gifts or donations of services or prop19 erty.

20 (e) MEETINGS.—

21 (1) IN GENERAL.—The Committee shall meet,

22 not less than three times per year, at the call of the

23 Chairperson or at the request of the Administrator.

24 (2) LOCATION.—Each meeting of the full Com25 mittee shall be held at the headquarters of the Small
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1 Business Administration located in Washington, Dis2 trict of Columbia. The Administrator shall provide

3 suitable meeting facilities and such administrative

4 support as may be necessary for each full meeting

5 of the Committee.

6 (3) TASK GROUPS.—The Committee may, from

7 time to time, establish temporary task groups as

8 may be necessary in order to carry out its duties.

9 (f) COMPENSATION AND EXPENSES.—

10 (1) NO COMPENSATION.—Members of the Com11 mittee shall serve without compensation for their

12 service to the Committee.

13 (2) EXPENSES.—The members of the Com14 mittee shall be reimbursed for travel and subsistence

15 expenses in accordance with section 5703 of title 5,

16 United States Code.

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

18 of each fiscal year beginning after the date of enactment

19 of this section, the Committee shall transmit to the Con20 gress and the President a report describing the activities

21 of the Committee and any recommendations developed by

22 the Committee for the promotion of small business con23 cerns owned and controlled by veterans.

24 (h) TERMINATION.—The Committee shall terminate

25 its business on September 30, 2004.
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1 TITLE III—TECHNICAL

2 ASSISTANCE

3 SEC. 301. SCORE PROGRAM.

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

5 Business Administration shall enter into a memorandum

6 of understanding with the Service Core of Retired Execu7 tives (described in section 8(b)(1)(B) of the Small Busi8 ness Act (15 U.S.C. 637(b)(1)(B)) and in this section re9 ferred to as ‘‘SCORE’’) to provide for the following:

10 (1) The appointment by SCORE in its national

11 office of an individual to act as National Veterans

12 Business Coordinator, whose duties shall relate ex13 clusively to veterans business matters, and who shall

14 be responsible for the establishment and administra15 tion of a program to coordinate counseling and

16 training regarding entrepreneurship to veterans

17 through the chapters of SCORE throughout the

18 United States.

19 (2) The assistance of SCORE in the estab20 lishing and maintaining a toll-free telephone number

21 and an Internet website to provide access for vet22 erans to information about the counseling and train23 ing regarding entrepreneurship available to veterans

24 through SCORE.
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1 (3) The collection of statistics concerning serv2 ices provided by SCORE to veterans, including serv3 ice-disabled veterans, for inclusion in each annual

4 report published by the Administrator under section

5 4(b)(2)(B) of the Small Business Act (15 U.S.C.

6 633(b)(2)(B)).

7 (b) RESOURCES.—The Administrator shall provide to

8 SCORE such resources as the Administrator determines

9 necessary for SCORE to carry out the requirements of the

10 memorandum of understanding specified in paragraph (1).

11 SEC. 302. ENTREPRENEURIAL ASSISTANCE.

12 Not later than 180 days after the date of enactment

13 of this Act, the Secretary of Veterans Affairs, the Admin14 istrator of the Small Business Administration, and the

15 head of the association formed pursuant to section

16 21(a)(3)(A) of the Small Business Act (15 U.S.C.

17 648(a)(3)(A)) shall enter into a memorandum of under18 standing with respect to entrepreneurial assistance to vet19 erans, including service-disabled veterans, through Small

20 Business Development Centers (described in section 21 of

21 the Small Business Act (15 U.S.C. 648)) and facilities of

22 the Department of Veterans Affairs. Such assistance shall

23 include the following:

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

25 distribution of information generated by such studies
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1 and research, on the formation, management, fi2 nancing, marketing, and operation of small business

3 concerns by veterans.

4 (2) Provision of training and counseling to vet5 erans concerning the formation, management, fi6 nancing, marketing, and operation of small business

7 concerns.

8 (3) Provision of management and technical as9 sistance to the owners and operators of small busi10 ness concerns regarding international markets, the

11 promotion of exports, and the transfer of technology.

12 (4) Provision of assistance and information to

13 veterans regarding procurement opportunities with

14 Federal, State, and local agencies, especially such

15 agencies funded in whole or in part with Federal

16 funds.

17 (5) Establishment of an information clearing18 house to collect and distribute information, including

19 by electronic means, on the assistance programs of

20 Federal, State, and local governments, and of the

21 private sector, including information on office loca22 tions, key personnel, telephone numbers, mail and

23 electronic addresses, and contracting and subcon24 tracting opportunities.
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1 (6) Provision of Internet or other distance

2 learning academic instruction for veterans in busi3 ness subjects, including accounting, marketing, and

4 business fundamentals.

5 (7) Compilation of a list of small business con6 cerns owned and controlled by service-disabled vet7 erans that provide products or services that could be

8 procured by the United States and delivery of such

9 list to each department and agency of the United

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

11 electronic form and shall include the name and ad12 dress of each such small business concern and the

13 products or services that it provides.

14 SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT AS15 SISTANCE FOR MILITARY RESERVISTS’

16 SMALL BUSINESSES.

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

18 Act (15 U.S.C. 637) is amended by adding at the end the

19 following:

20 ‘‘(l) MANAGEMENT ASSISTANCE FOR SMALL BUSI21 NESSES AFFECTED BY MILITARY OPERATIONS.—The Ad22 ministration shall utilize, as appropriate, its entrepre23 neurial development and management assistance pro24 grams, including programs involving State or private sec25 tor partners, to provide business counseling and training
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1 to any small business concern adversely affected by the

2 deployment of units of the Armed Forces of the United

3 States in support of a period of military conflict (as de4 fined in section 7(n)(1)).’’.

5 (b) ENHANCED PUBLICITY DURING OPERATION AL6 LIED FORCE.—For the duration of Operation Allied Force

7 and for 120 days thereafter, the Administration shall en8 hance its publicity of the availability of assistance provided

9 pursuant to the amendment made by this section, includ10 ing information regarding the appropriate local office at

11 which affected small businesses may seek such assistance.

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

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

14 Small Business Administration shall issue such guidelines

15 as the Administrator determines to be necessary to carry

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

17 TITLE IV—FINANCIAL

18 ASSISTANCE

19 SEC. 401. GENERAL BUSINESS LOAN PROGRAM.

20 (a) DEFINITION OF HANDICAPPED INDIVIDUAL.—

21 Section 3(f) of the Small Business Act (15 U.S.C. 632(f))

22 is amended to read as follows:

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

24 ‘handicapped individual’ means an individual—
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1 ‘‘(1) who has a physical, mental, or emotional

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

3 a permanent nature which in any way limits the se4 lection of any type of employment for which the per5 son would otherwise be qualified or qualifiable; or

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

7 (b) AUTHORIZATION TO MAKE LOANS.—Section

8 7(a)(10) of the Small Business Act (15 U.S.C.

9 636(a)(10)) is amended—

10 (1) by inserting ‘‘guaranteed’’ after ‘‘provide’’;

11 and

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

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

14 SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERV15 ISTS.

16 (a) REPAYMENT DEFERRAL FOR ACTIVE DUTY RE17 SERVISTS.—Section 7 of the Small Business Act (15

18 U.S.C. 636) is amended by adding at the end the fol19 lowing:

20 ‘‘(n) REPAYMENT DEFERRED FOR ACTIVE DUTY RE21 SERVISTS.—

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

23 ‘‘(A) ELIGIBLE RESERVIST.—The term ‘el24 igible reservist’ means a member of a reserve
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1 component of the Armed Forces ordered to ac2 tive duty during a period of military conflict.

3 ‘‘(B) ESSENTIAL EMPLOYEE.—The term

4 ‘essential employee’ means an individual who is

5 employed by a small business concern and

6 whose managerial or technical expertise is crit7 ical to the successful day-to-day operations of

8 that small business concern.

9 ‘‘(C) PERIOD OF MILITARY CONFLICT.—

10 The term ‘period of military conflict’ means—

11 ‘‘(i) a period of war declared by the

12 Congress;

13 ‘‘(ii) a period of national emergency

14 declared by the Congress or by the Presi15 dent; or

16 ‘‘(iii) a period of a contingency oper17 ation, as defined in section 101(a) of title

18 10, United States Code.

19 ‘‘(D) QUALIFIED BORROWER.—The term

20 ‘qualified borrower’ means—

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

22 reservist and who received a direct loan

23 under subsection (a) or (b) before being

24 ordered to active duty; or
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1 ‘‘(ii) a small business concern that re2 ceived a direct loan under subsection (a) or

3 (b) before an eligible reservist, who is an

4 essential employee, was ordered to active

5 duty.

6 ‘‘(2) DEFERRAL OF DIRECT LOANS.—

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

8 shall, upon written request, defer repayment of

9 principal and interest due on a direct loan made

10 under subsection (a) or (b), if such loan was in11 curred by a qualified borrower.

12 ‘‘(B) PERIOD OF DEFERRAL.—The period

13 of deferral for repayment under this paragraph

14 shall begin on the date on which the eligible re15 servist is ordered to active duty and shall termi16 nate on the date that is 180 days after the date

17 such eligible reservist is discharged or released

18 from active duty.

19 ‘‘(C) INTEREST RATE REDUCTION DURING

20 DEFERRAL.—Notwithstanding any other provi21 sion of law, during the period of deferral de22 scribed in subparagraph (B), the Administra23 tion may, in its discretion, reduce the interest

24 rate on any loan qualifying for a deferral under

25 this paragraph.
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1 ‘‘(3) DEFERRAL OF LOAN GUARANTEES AND

2 OTHER FINANCINGS.—The Administration shall—

3 ‘‘(A) encourage intermediaries partici4 pating in the program under subsection (m) to

5 defer repayment of a loan made with proceeds

6 made available under that subsection, if such

7 loan was incurred by a small business concern

8 that is eligible to apply for assistance under

9 subsection (b)(3); and

10 ‘‘(B) not later than 30 days after the date

11 of enactment of this subsection, establish guide12 lines to—

13 ‘‘(i) encourage lenders and other

14 intermediaries to defer repayment of, or

15 provide other relief relating to, loan guar16 antees under subsection (a) and financings

17 under section 504 of the Small Business

18 Investment Act of 1958 that were incurred

19 by small business concerns that are eligible

20 to apply for assistance under subsection

21 (b)(3), and loan guarantees provided under

22 subsection (m) if the intermediary provides

23 relief to a small business concern under

24 this paragraph; and
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1 ‘‘(ii) implement a program to provide

2 for the deferral of repayment or other re3 lief to any intermediary providing relief to

4 a small business borrower under this para5 graph.’’.

6 (b) DISASTER LOAN ASSISTANCE FOR MILITARY RE7 SERVISTS’ SMALL BUSINESSES.—Section 7(b) of the

8 Small Business Act (15 U.S.C. 636(b)) is amended by in9 serting after the undesignated paragraph that begins with

10 ‘‘Provided, That no loan’’, the following:

11 ‘‘(3)(A) In this paragraph—

12 ‘‘(i) the term ‘essential employee’ means

13 an individual who is employed by a small busi14 ness concern and whose managerial or technical

15 expertise is critical to the successful day-to-day

16 operations of that small business concern;

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

18 has the meaning given the term in subsection

19 (n)(1); and

20 ‘‘(iii) the term ‘substantial economic in21 jury’ means an economic harm to a business

22 concern that results in the inability of the busi23 ness concern—

24 ‘‘(I) to meet its obligations as they

25 mature;
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1 ‘‘(II) to pay its ordinary and nec2 essary operating expenses; or

3 ‘‘(III) to market, produce, or provide

4 a product or service ordinarily marketed,

5 produced, or provided by the business con6 cern.

7 ‘‘(B) The Administration may make such dis8 aster loans (either directly or in cooperation with

9 banks or other lending institutions through agree10 ments to participate on an immediate or deferred

11 basis) to assist a small business concern that has

12 suffered or that is likely to suffer substantial eco13 nomic injury as the result of an essential employee

14 of such small business concern being ordered to ac15 tive military duty during a period of military con16 flict.

17 ‘‘(C) A small business concern described in sub18 paragraph (B) shall be eligible to apply for assist19 ance under this paragraph during the period begin20 ning on the date on which the essential employee is

21 ordered to active duty and ending on the date that

22 is 90 days after the date on which such essential

23 employee is discharged or released from active duty.
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1 ‘‘(D) Any loan or guarantee extended pursuant

2 to this paragraph shall be made at the same interest

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

4 ‘‘(E) No loan may be made under this para5 graph, either directly or in cooperation with banks

6 or other lending institutions through agreements to

7 participate on an immediate or deferred basis, if the

8 total amount outstanding and committed to the bor9 rower under this subsection would exceed

10 $1,500,000, unless such applicant constitutes a

11 major source of employment in its surrounding area,

12 as determined by the Administration, in which case

13 the Administration, in its discretion, may waive the

14 $1,500,000 limitation.

15 ‘‘(F) For purposes of assistance under this

16 paragraph, no declaration of a disaster area shall be

17 required.’’.

18 (c) ENHANCED PUBLICITY DURING OPERATION AL19 LIED FORCE.—For the duration of Operation Allied Force

20 and for 120 days thereafter, the Administration shall en21 hance its publicity of the availability of assistance provided

22 pursuant to the amendments made by this section, includ23 ing information regarding the appropriate local office at

24 which affected small businesses may seek such assistance.
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1 (d) GUIDELINES.—Not later than 30 days after the

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

3 Small Business Administration shall issue such guidelines

4 as the Administrator determines to be necessary to carry

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

6 (e) EFFECTIVE DATES.—

7 (1) IN GENERAL.—Except as provided in para8 graph (2), the amendments made by this section

9 shall take effect on the date of the enactment of this

10 section.

11 (2) DISASTER LOANS.—The amendments made

12 by subsection (b) shall apply to economic injury suf13 fered or likely to be suffered as the result of a period

14 of military conflict occurring or ending on or after

15 March 24, 1999.

16 SEC. 403. MICROLOAN PROGRAM.

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

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

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

20 after ‘‘low-income,’’.

21 SEC. 404. DELTA LOAN PROGRAM.

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

23 636(a)(21)(A)) is amended in subclause (ii) by inserting

24 ‘‘or a veteran’’ after ‘‘qualified individual’’.
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1 SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.

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

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

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

5 and (G) as subparagraphs (F), (G), and (H), respec6 tively; and

7 (2) by inserting after subparagraph (D) the fol8 lowing:

9 ‘‘(E) expansion of small business concerns

10 owned and controlled by veterans, as defined in

11 section 3(q) of the Small Business Act (15

12 U.S.C. 632(q)), especially service-disabled vet13 erans, as defined in such section 3(q),’’.

14 TITLE V—PROCUREMENT

15 ASSISTANCE

16 SEC. 501. SUBCONTRACTING.

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

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

19 inserting ‘‘small business concerns owned and controlled

20 by service-disabled veterans,’’ after ‘‘small business con21 cerns,’’ the first place it appears in the first and second

22 sentences.

23 (b) CONTRACT CLAUSE.—The contract clause speci24 fied in section 8(d)(3) of the Small Business Act (15

25 U.S.C. 637(d)(3)) is amended as follows:
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1 (1) Subparagraph (A) of such clause is amend2 ed by inserting ‘‘small business concerns owned and

3 controlled by veterans,’’ after ‘‘small business con4 cerns,’’ the first place it appears in the first and sec5 ond sentences.

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

7 are redesignated as subparagraphs (F) and (G), re8 spectively, and the following new subparagraph is in9 serted after subparagraph (D) of such clause:

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

11 and controlled by veterans’ shall mean a small busi12 ness concern—

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

14 by one or more eligible veterans; or, in the case

15 of any publicly owned business, at least 51 per

16 centum of the stock of which is owned by one

17 or more veterans; and

18 ‘‘(ii) whose management and daily business

19 operations are controlled by such veterans. The

20 contractor shall treat as veterans all individuals

21 who are veterans within the meaning of the

22 term under section 3(q) of the Small Business

23 Act.’’.

24 (3) Subparagraph (F) of such clause, as redes25 ignated by paragraph (2) of this subsection, is
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1 amended by inserting ‘‘small business concern owned

2 and controlled by veterans,’’ after ‘‘small business

3 concern,’’ the first place it appears.

4 (c) CONFORMING AMENDMENTS.—Section 8(d) of

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

6 amended by inserting ‘‘small business concerns owned and

7 controlled by veterans,’’ after ‘‘small business concerns,’’

8 the first place it appears in paragraphs (4)(D), (4)(E),

9 (6)(A), (6)(C), (6)(F), and (10)(B).

10 SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.

11 (a) GOVERNMENT-WIDE PARTICIPATION GOALS.—

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

13 (15 U.S.C. 644) is amended—

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

15 business concerns owned and controlled by service

16 disabled veterans,’’ after ‘‘small business concerns,’’

17 the first place it appears;

18 (2) by inserting after the second sentence, the

19 following: ‘‘The Government-wide goal for participa20 tion by small business concerns owned and con21 trolled by service-disabled veterans shall be estab22 lished at not less than 5 percent of the total value

23 of all prime contract and subcontract awards for

24 each fiscal year.’’; and
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1 (3) in the second to last sentence, by inserting

2 ‘‘small business concerns owned and controlled by

3 service-disabled veterans,’’ after ‘‘small business con4 cerns,’’ the first place it appears.

5 (b) AGENCY PARTICIPATION GOALS.—Subsection

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

7 644) is amended—

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

9 business concerns owned and controlled by service10 disabled veterans,’’ after ‘‘small business concerns,’’;

11 the first place it appears;

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

13 business concerns owned and controlled by service14 disabled veterans,’’ after ‘‘small business concerns,’’

15 the first place it appears; and

16 (3) in the fourth sentence, by inserting ‘‘small

17 business concerns owned and controlled by service18 disabled veterans, by’’ after ‘‘including participation

19 by’’.

20 TITLE VI—REPORTS AND DATA

21 COLLECTION

22 SEC. 601. REPORTING REQUIREMENTS.

23 (a) REPORTS TO SMALL BUSINESS ADMINISTRA24 TION.—Subsection (h)(1) of section 15 of the Small Busi25 ness Act (15 U.S.C. 644) is amended by inserting ‘‘small
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1 business concerns owned and controlled by veterans (in2 cluding service-disabled veterans),’’ after ‘‘small business

3 concerns,’’ the first place it appears.

4 (b) REPORTS TO THE PRESIDENT AND THE CON5 GRESS.—Subsection (h)(2) of section 15 of the Small

6 Business Act (15 U.S.C. 644) is amended—

7 (1) by inserting ‘‘and the Congress’’ before the

8 period at the end of first sentence; and

9 (2) in subparagraphs (A), (D), and (E), by in10 serting ‘‘small business concerns owned and con11 trolled by service-disabled veterans,’’ after ‘‘small

12 business concerns,’’ the first place it appears.

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

14 Section 303(e) of the Small Business Economic Pol15 icy Act of 1980 (15 U.S.C. 631b(e)) is amended—

16 (1) in paragraph (1), by striking ‘‘and’’ after

17 the semicolon;

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

19 the end and inserting ‘‘; and’’; and

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

21 ‘‘(3) small business concerns owned and con22 trolled by veterans, as defined in section 3(q) of the

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

24 business concerns owned and controlled by service25 disabled veterans, as defined in such section 3(q).’’.
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1 SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.

2 The Administrator of the Small Business Administra3 tion shall transmit annually to the Committees on Small

4 Business and Veterans Affairs of the House of Represent5 atives and the Senate a report on the needs of small busi6 ness concerns owned and controlled by veterans and small

7 business concerns owned and controlled by service-disabled

8 veterans, which shall include information on—

9 (1) the availability of Small Business Adminis10 tration programs for such small business concerns

11 and the degree of utilization of such programs by

12 such small business concerns during the preceding

13 12-month period, including statistical information on

14 such utilization as compared to the small business

15 community as a whole;

16 (2) the percentage and dollar value of Federal

17 contracts awarded to such small business concerns

18 during the preceding 12-month period; and

19 (3) proposals to improve the access of such

20 small business concerns to the assistance made avail21 able by the United States.

22 SEC. 604. DATA AND INFORMATION COLLECTION.

23 (a) INFORMATION ON FEDERAL PROCUREMENT

24 PRACTICES.—The Administrator of the Small Business

25 Administration shall, for each fiscal year—
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1 (1) collect information concerning the procure2 ment practices and procedures of each department

3 and agency of the United States having procurement

4 authority;

5 (2) publish and disseminate such information to

6 procurement officers in all Federal agencies; and

7 (3) make such information available to any

8 small business concern requesting such information.

9 (b) IDENTIFICATION OF SMALL BUSINESS CONCERNS

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

11 Secretary of Veterans Affairs shall, in consultation with

12 the Assistant Secretary of Labor for Veterans’ Employ13 ment and Training and the Administrator of the Small

14 Business Administration, identify small business concerns

15 owned and controlled by veterans in the United States.

16 The Secretary shall inform each small business concern

17 identified under this paragraph that information on Fed18 eral procurement is available from the Administrator.

19 (c) SELF-EMPLOYMENT OPPORTUNITIES.—The Sec20 retary of Labor, the Secretary of Veterans Affairs, and

21 the Administrator of the Small Business Administration

22 shall enter into a memorandum of understanding to pro23 vide for coordination of vocational rehabilitation services,

24 technical and managerial assistance, and financial assist25 ance to veterans, including service-disabled veterans, seek-
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1 ing to employ themselves by forming or expanding small

2 business concerns. The memorandum of understanding

3 shall include recommendations for expanding existing pro4 grams or establishing new programs to provide such serv5 ices or assistance to such veterans.

6 TITLE VII—MISCELLANEOUS

7 PROVISIONS

8 SEC. 701. ADMINISTRATOR’S ORDER.

9 The Administrator of the Small Business Administra10 tion shall strengthen and reissue the Administrator’s order

11 regarding the third sentence of section 4(b)(1) of the

12 Small Business Act (15 U.S.C. 633(b)(1)), relating to

13 nondiscrimination and special considerations for veterans,

14 and take all necessary steps to ensure that its provisions

15 are fully and vigorously implemented.

16 SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF

17 ADVOCACY.

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

19 is amended—

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

21 end;

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

23 the end and inserting ‘‘; and’’; and

24 (3) by adding at the end the following:
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1 ‘‘(12) evaluate the efforts of each department

2 and agency of the United States, and of private in3 dustry, to assist small business concerns owned and

4 controlled by veterans, as defined in section 3(q) of

5 the Small Business Act (15 U.S.C. 632(q)), and

6 small business concerns owned and controlled by

7 serviced-disabled veterans, as defined in such section

8 3(q), and to provide statistical information on the

9 utilization of such programs by such small business

10 concerns, and to make appropriate recommendations

11 to the Administrator of the Small Business Adminis12 tration and to the Congress in order to promote the

13 establishment and growth of those small business

14 concerns.’’.

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

16 (a) IN GENERAL.—The Comptroller General shall

17 conduct a study on whether there would exist any addi18 tional risk or cost to the United States if—

19 (1) up to 10 percent of the loans guaranteed

20 under chapter 37 of title 38, United States Code,

21 were made for the acquisition or construction of

22 fixed assets used in a trade or business rather than

23 for the construction or purchase of residential build24 ings; and
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1 (2) such loans for acquisition or construction of

2 fixed assets were for a term of not more than 10

3 years and the terms regarding eligibility, loan limits,

4 interest, fees, and down payment were the same as

5 for other loans guaranteed under such chapter.

6 (b) REPORT.—

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

8 after the enactment of this Act, the Comptroller

9 General shall transmit the report described in sub10 section (a) to the Committees on Veterans’ Affairs

11 and the Committees on Small Business of the House

12 of Representatives and the Senate.

13 (2) CONTENTS OF REPORT.—The report re14 quired by paragraph (1) shall specifically address

15 the following:

16 (A) With respect to the change in the vet17 erans’ housing loan program contemplated

18 under subsection (a):

19 (i) The increase or decrease in admin20 istrative costs to the Department of Vet21 erans Affairs.

22 (ii) The increase or decrease in the

23 degree of exposure of the United States as

24 the guarantor of the loans.
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1 (iii) The increase or decrease in the

2 Federal subsidy rate that would be pos3 sible.

4 (iv) Any increase in the interest rate

5 or fees charged to the borrower or lender

6 that would be required to maintain present

7 program costs.

8 (B) Information regarding the delinquency

9 rates, default rates, length of time required for

10 recovery after default, for fixed-asset business

11 loans, of a size and duration comparable to

12 those contemplated under subsection (a), made

13 available in the private market or under section

14 503 of the Small Business Investment Act.

Passed the House of Representatives June 29, 1999.

Attest: JEFF TRANDAHL,

Clerk.