Calendar No. 254

106TH CONGRESS

1ST SESSION H. R. 1568

[Report No. 106–136]

AN ACT

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

AUGUST 4, 1999

Reported with an amendment
II

Calendar No. 254

106TH CONGRESS

1ST SESSION H. R. 1568

[Report No. 106–136]

IN THE SENATE OF THE UNITED STATES

JUNE 30, 1999

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

AUGUST 4, 1999

Reported by Mr. BOND, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

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,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Veterans Entrepre5 neurship 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
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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.

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.
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1 (2) In serving the United States, veterans often

2 faced great risks to preserve the American dream of

3 freedom and prosperity.

4 (3) The United States has done too little to as5 sist veterans, particularly service-disabled veterans,

6 in playing a greater role in the economy of the

7 United States by forming and expanding small busi8 ness enterprises.

9 (4) Medical advances and new medical tech10 nologies have made it possible for service-disabled

11 veterans to play a much more active role in the for12 mation and expansion of small business enterprises

13 in the United States.

14 (5) The United States must provide additional

15 assistance and support to veterans to better equip

16 them to form and expand small business enterprises,

17 thereby enabling them to realize the American

18 dream that they fought to protect.

19 SEC. 102. PURPOSE.

20 The purpose of this Act is to expand existing and es21 tablish new assistance programs for veterans who own or

22 operate small businesses. This Act accomplishes this pur23 pose by—

24 (1) expanding the eligibility for certain small

25 business assistance programs to include veterans;
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1 (2) directing certain departments and agencies

2 of the United States to take actions that enhance

3 small business assistance to veterans; and

4 (3) establishing new institutions to provide

5 small business assistance to veterans or to support

6 the institutions that provide such assistance.

7 SEC. 103. DEFINITIONS.

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

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

10 the end the following:

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

12 this Act, the following definitions apply:

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

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

15 disability that is service-connected (as defined in sec16 tion 101(16) of title 38, United States Code).

17 ‘‘(2) SMALL BUSINESS CONCERN OWNED AND

18 CONTROLLED BY SERVICE-DISABLED VETERANS.—

19 The term ‘small business concern owned and con20 trolled by service-disabled veterans’ means a small

21 business concern—

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

23 owned by one or more service-disabled veterans

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

25 not less than 51 percent of the stock of which
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1 is owned by one or more service-disabled vet2 erans; and

3 ‘‘(B) the management and daily business

4 operations of which are controlled by one or

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

6 a veteran with permanent and severe disability,

7 the spouse or permanent caregiver of such vet8 eran.

9 ‘‘(3) SMALL BUSINESS CONCERN OWNED AND

10 CONTROLLED BY VETERANS.—The term ‘small busi11 ness concern owned and controlled by veterans’

12 means a small business concern—

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

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

15 of any publicly owned business, not less than 51

16 percent of the stock of which is owned by one

17 or more veterans; and

18 ‘‘(B) the management and daily business

19 operations of which are controlled by one or

20 more veterans.

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

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

23 United States Code.’’.
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1 (b) APPLICABILITY TO THIS ACT.—In this Act, the

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

3 Act, as added by this section, apply.

4 TITLE II—VETERANS BUSINESS

5 DEVELOPMENT

6 SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE

7 SMALL BUSINESS ADMINISTRATION.

8 (a) IN GENERAL.—Section 4(b)(1) of the Small Busi9 ness Act (15 U.S.C. 633(b)(1)) is amended—

10 (1) in the fifth sentence, by striking ‘‘four Asso11 ciate Administrators’’ and inserting ‘‘five Associate

12 Administrators’’; and

13 (2) by inserting after the fifth sentence the fol14 lowing: ‘‘One such Associate Administrator shall be

15 the Associate Administrator for Veterans Business

16 Development, who shall administer the Office of Vet17 erans Business Development established under sec18 tion 32.’’.

19 (b) OFFICE OF VETERANS BUSINESS DEVELOP20 MENT; ASSOCIATE ADMINISTRATOR.—The Small Business

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

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

23 and

24 (2) by inserting after section 31 the following:
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1 ‘‘SEC. 32. VETERANS PROGRAMS.

2 ‘‘(a) OFFICE OF VETERANS BUSINESS DEVELOP3 MENT.—There is established in the Administration an Of4 fice of Veterans Business Development, which shall be ad5 ministered by the Associate Administrator for Veterans

6 Business Development (in this section referred to as the

7 ‘Associate Administrator’) appointed under section

8 4(b)(1).

9 ‘‘(b) ASSOCIATE ADMINISTRATOR FOR VETERANS

10 BUSINESS DEVELOPMENT.—The Associate

11 Administrator—

12 ‘‘(1) shall be an appointee in the Senior Execu13 tive Service;

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

15 execution, and promotion of policies and programs of

16 the Administration that provide assistance to small

17 business concerns owned and controlled by veterans

18 and small business concerns owned and controlled by

19 service-disabled veterans. The Associate Adminis20 trator shall act as an ombudsman for full consider21 ation of veterans in all programs of the Administra22 tion; and

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

24 to the Administrator.’’.
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1 SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT

2 CORPORATION.

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

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

5 this Act) the following:

6 ‘‘SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT

7 CORPORATION.

8 ‘‘(a) ESTABLISHMENT.—There is established a feder9 ally chartered corporation to be known as the National

10 Veterans Business Development Corporation (in this sec11 tion referred to as the ‘Corporation’) which shall be incor12 porated under the laws of the District of Columbia and

13 which shall have the powers granted in this section.

14 ‘‘(b) PURPOSES OF THE CORPORATION.—The pur15 poses of the Corporation shall be—

16 ‘‘(1) to expand the provision of and improve ac17 cess to technical assistance regarding entrepreneur18 ship for the Nation’s veterans; and

19 ‘‘(2) to assist veterans, including service-dis20 abled veterans, with the formation and expansion of

21 small business concerns by working with and orga22 nizing public and private resources, including those

23 of the Small Business Administration, the Depart24 ment of Veterans Affairs, the Department of Labor,

25 the Department of Commerce, the Department of

26 Defense, the Service Corps of Retired Executives
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1 (described in section 8(b)(1)(B) of this Act), the

2 Small Business Development Centers (described in

3 section 21 of this Act), and the business develop4 ment staffs of each department and agency of the

5 United States.

6 ‘‘(c) BOARD OF DIRECTORS.—

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

8 Corporation shall be vested in a Board of Directors

9 composed of nine voting members and three non10 voting ex officio members.

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

12 The President shall appoint United States citizens

13 to be voting members of the Board of Directors as

14 follows:

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

17 Small Business of the House of Representa18 tives.

19 ‘‘(B) One from a list of individuals nomi20 nated by the chairman of the Committee on

21 Small Business of the Senate.

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

24 Committee on Small Business of the House of

25 Representatives.
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1 ‘‘(D) One from a list of individuals nomi2 nated by the ranking minority members of the

3 Committee on Small Business of the Senate.

4 ‘‘(E) One from a list of individuals nomi5 nated by the chairman of the Committee on

6 Veterans’ Affairs of the House of Representa7 tives.

8 ‘‘(F) One from a list of individuals nomi9 nated by the chairman of the Committee on

10 Veterans’ Affairs of the Senate.

11 ‘‘(G) One from a list of individuals nomi12 nated by the ranking minority member of the

13 Committee on Veterans’ Affairs of the House of

14 Representatives.

15 ‘‘(H) One from a list of individuals nomi16 nated the ranking minority member of the

17 Committee on Veterans’ Affairs of the Senate.

18 ‘‘(I) One of the President’s own choosing.

19 ‘‘(3) EX OFFICIO MEMBERS.—The Adminis20 trator of the Small Business Administration, the

21 Secretary of Defense, and the Secretary of Veterans

22 Affairs shall serve as the nonvoting ex officio mem23 bers of the Board of Directors.

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

25 Board of Directors appointed under paragraph (2)
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1 shall elect one such member to serve as chairperson

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

3 ‘‘(5) TERMS OF APPOINTED MEMBERS.—

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

5 Board of Directors appointed under paragraph

6 (2) shall serve a term of 6 years, except as pro7 vided in subparagraph (B).

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

9 designated by the President at the time of ap10 pointment, of the members first appointed—

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

12 years; and

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

14 years.

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

16 the Board of Directors appointed to fill a va17 cancy occurring before the expiration of the

18 term for which the member’s predecessor was

19 appointed shall be appointed only for the re20 mainder of the term. A member may serve after

21 the expiration of that member’s term until a

22 successor has taken office.

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

24 of Directors shall be filled in the manner in which

25 the original appointment was made. In the case of
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1 a vacancy in the office of the Administrator of the

2 Small Business Administration or the Secretary of

3 Veterans Affairs, and pending the appointment of a

4 successor, an acting appointee for such vacancy may

5 serve as an ex officio member.

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

7 voting member of the Board of Directors may be an

8 officer or employee of the United States while serv9 ing as a member of the Board of Directors or during

10 the 2-year period preceding such service.

11 ‘‘(8) IMPARTIALITY AND NONDISCRIMINA12 TION.—The Board of Directors shall administer the

13 affairs of the Corporation fairly and impartially and

14 without discrimination.

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

16 Board of Directors shall prescribe the manner in

17 which the obligations of the Corporation may be in18 curred and in which its expenses shall be allowed

19 and paid.

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

21 Board of Directors shall constitute a quorum, but a

22 lesser number may hold hearings.

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

24 Corporation shall become a body corporate and as such

25 shall have the authority to do the following:
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1 ‘‘(1) To adopt and use a corporate seal.

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

3 Act of Congress.

4 ‘‘(3) To make contracts or grants.

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

6 against lawsuits in State or Federal court.

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

8 Board of Directors, officers and employees of the

9 Corporation, to define their duties and responsibil10 ities, fix their compensations, and to dismiss at will

11 such officers or employees.

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

13 Board of Directors, bylaws not inconsistent with

14 Federal law and the law of the State of incorpora15 tion, regulating the manner in which its general

16 business may be conducted and the manner in which

17 the privileges granted to it by law may be exercised.

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

19 Board of Directors or duly authorized officers, all

20 powers specifically granted by the provisions of this

21 section, and such incidental powers as shall be nec22 essary.

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

24 private, Federal, State and local organizations.
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1 ‘‘(9) To accept and employ or dispose of in fur2 therance of the purposes of this section any money

3 or property, real, personal, or mixed, tangible or in4 tangible, received by gift, devise, bequest, or other5 wise.

6 ‘‘(10) To accept voluntary and uncompensated

7 services.

8 ‘‘(e) CORPORATE FUNDS.—

9 ‘‘(1) DEPOSIT OF FUNDS.—The Board of Di10 rectors shall deposit all funds of the Corporation in

11 federally chartered and insured depository institu12 tions until such funds are disbursed under para13 graph (2).

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

15 Corporation may be disbursed only for purposes that

16 are—

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

18 by a recorded vote with a quorum present; and

19 ‘‘(B) in accordance with the purposes of

20 the Corporation as specified in subsection (b).

21 ‘‘(f) NETWORK OF INFORMATION AND ASSISTANCE

22 CENTERS.—In carrying out the purpose described in sub23 section (b), the Corporation shall establish and maintain

24 a network of information and assistance centers for use

25 by veterans and the public.
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1 ‘‘(g) ANNUAL REPORT.—On or before October 1 of

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

3 to the President and the Congress describing the activities

4 and accomplishments of the Corporation for the preceding

5 year and the Corporation’s findings regarding the efforts

6 of Federal, State and private organizations to assist vet7 erans in the formation and expansion of small business

8 concerns.

9 ‘‘(h) ASSUMPTION OF DUTIES OF ADVISORY COM10 MITTEE.—On October 1, 2004, the Corporation estab11 lished under this section shall assume the duties, respon12 sibilities, and authority of the Advisory Committee on Vet13 erans Affairs established under section 203 of this Act.

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

15 United States mails in the same manner and under the

16 same conditions as the departments and agencies of the

17 United States.

18 ‘‘(j) PROFESSIONAL CERTIFICATION ADVISORY

19 BOARD.—

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

21 of Directors, the Corporation shall establish a Pro22 fessional Certification Advisory Board to create uni23 form guidelines and standards for the professional

24 certification of members of the Armed Services to

25 aid in their efficient and orderly transition to civilian
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1 occupations and professions and to remove potential

2 barriers in the areas of licensure and certification.

3 ‘‘(2) MEMBERSHIP.—The members of the Advi4 sory Board shall serve without compensation, shall

5 meet in the District of Columbia no less than quar6 terly, and shall be appointed by the Board of Direc7 tors as follows:

8 ‘‘(A) PRIVATE SECTOR MEMBERS.—The

9 Corporation shall appoint not less than seven

10 members for terms of 2 years to represent pri11 vate sector organizations and associations, in12 cluding the American Association of Community

13 Colleges, the Society for Human Resource Man14 agers, the Coalition for Professional Certifi15 cation, the Council on Licensure and Enforce16 ment, and the American Legion.

17 ‘‘(B) PUBLIC SECTOR MEMBERS.—The

18 Corporation shall invite public sector members

19 to serve at the discretion of their departments

20 or agencies and shall—

21 ‘‘(i) encourage the participation of the

22 Under Secretary of Defense for Personnel

23 and Readiness;

24 ‘‘(ii) encourage the participation of

25 two officers from each branch of the
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1 Armed Forces to represent the Training

2 Commands of their branch; and

3 ‘‘(iii) seek the participation and guid4 ance of the Assistant Secretary of Labor

5 for Veterans’ Employment and Training.

6 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—

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

8 appropriated to the Corporation to carry out this

9 section the following amounts:

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

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

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

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

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

15 institute and implement a plan to raise private funds

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

17 SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS

18 AFFAIRS.

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

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

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

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

23 source of advice and policy recommendations to—
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1 (1) the Administrator of the Small Business

2 Administration (in this section referred to as the

3 ‘‘Administrator’’);

4 (2) the Associate Administrator for Veterans

5 Business Development of the Small Business Admin6 istration;

7 (3) the Congress;

8 (4) the President; and

9 (5) other United States policymakers.

10 (b) MEMBERSHIP.—

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

12 composed of 15 members, of whom—

13 (A) eight shall be veterans who are owners

14 of small business concerns (within the meaning

15 of the term under section 3 of the Small Busi16 ness Act (15 U.S.C. 632)); and

17 (B) seven shall be representatives of vet18 erans organizations.

19 (2) APPOINTMENT.—

20 (A) IN GENERAL.—The members of the

21 Committee shall be appointed by the Adminis22 trator in accordance with this section.

23 (B) INITIAL APPOINTMENTS.—Not later

24 than 90 days after the date of enactment of
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1 this Act, the Administrator shall appoint the

2 initial members of the Committee.

3 (3) POLITICAL AFFILIATION.—Not more than

4 eight members of the Committee shall be of the

5 same political party as the President.

6 (4) PROHIBITION ON FEDERAL EMPLOY7 MENT.—

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

9 subsection (B), no member of the Committee

10 may serve as an officer or employee of the

11 United States.

12 (B) EXCEPTION.—A member of the Com13 mittee who accepts a position as an officer or

14 employee of the United States after the date of

15 the member’s appointment to the Committee

16 may continue to serve on the Committee for not

17 more than 30 days after such acceptance.

18 (5) TERM OF SERVICE.—

19 (A) IN GENERAL.—Subject to subpara20 graph (B), the term of service of each member

21 of the Committee shall be 3 years.

22 (B) TERMS OF INITIAL APPOINTEES.—As

23 designated by the Administrator at the time of

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

2 4 years; and

3 (ii) five shall be appointed for a term

4 of 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

20 the following:

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

22 programs developed in the public and private sec23 tors, that affect the ability of small business con24 cerns owned and controlled by veterans to obtain

25 capital 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 busi12 ness 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 ad24 visable to carry out its duties.
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1 (2) INFORMATION FROM FEDERAL AGENCIES.—

2 Upon request of the Chairperson of the Committee,

3 the 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

8 the United States mails in the same manner and

9 under the same conditions as other departments and

10 agencies 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,

16 not 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

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

2 time to time, establish temporary task groups as

3 may 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

7 service to the Committee.

8 (2) EXPENSES.—The members of the Com9 mittee shall be reimbursed for travel and subsistence

10 expenses in accordance with section 5703 of title 5,

11 United States Code.

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

13 of each fiscal year beginning after the date of enactment

14 of this section, the Committee shall transmit to the Con15 gress and the President a report describing the activities

16 of the Committee and any recommendations developed by

17 the Committee for the promotion of small business con18 cerns owned and controlled by veterans.

19 (h) TERMINATION.—The Committee shall terminate

20 its 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 Busi3 ness Act (15 U.S.C. 637(b)(1)(B)) and in this section re4 ferred 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 ex8 clusively to veterans business matters, and who shall

9 be responsible for the establishment and administra10 tion of a program to coordinate counseling and

11 training regarding entrepreneurship to veterans

12 through the chapters of SCORE throughout the

13 United States.

14 (2) The assistance of SCORE in the estab15 lishing and maintaining a toll-free telephone number

16 and an Internet website to provide access for vet17 erans to information about the counseling and train18 ing regarding entrepreneurship available to veterans

19 through SCORE.

20 (3) The collection of statistics concerning serv21 ices provided by SCORE to veterans, including serv22 ice-disabled veterans, for inclusion in each annual

23 report published by the Administrator under section

24 4(b)(2)(B) of the Small Business Act (15 U.S.C.

25 633(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 Admin8 istrator of the Small Business Administration, and the

9 head of the association formed pursuant to section

10 21(a)(3)(A) of the Small Business Act (15 U.S.C.

11 648(a)(3)(A)) shall enter into a memorandum of under12 standing with respect to entrepreneurial assistance to vet13 erans, including service-disabled veterans, through Small

14 Business Development Centers (described in section 21 of

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

16 the Department of Veterans Affairs. Such assistance shall

17 include the following:

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

19 distribution of information generated by such studies

20 and research, on the formation, management, fi21 nancing, marketing, and operation of small business

22 concerns by veterans.

23 (2) Provision of training and counseling to vet24 erans concerning the formation, management, fi-
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1 nancing, marketing, and operation of small business

2 concerns.

3 (3) Provision of management and technical as4 sistance to the owners and operators of small busi5 ness concerns regarding international markets, the

6 promotion of exports, and the transfer of technology.

7 (4) Provision of assistance and information to

8 veterans regarding procurement opportunities with

9 Federal, State, and local agencies, especially such

10 agencies funded in whole or in part with Federal

11 funds.

12 (5) Establishment of an information clearing13 house to collect and distribute information, including

14 by electronic means, on the assistance programs of

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

16 private sector, including information on office loca17 tions, key personnel, telephone numbers, mail and

18 electronic addresses, and contracting and subcon19 tracting opportunities.

20 (6) Provision of Internet or other distance

21 learning academic instruction for veterans in busi22 ness subjects, including accounting, marketing, and

23 business fundamentals.

24 (7) Compilation of a list of small business con25 cerns owned and controlled by service-disabled vet-
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1 erans that provide products or services that could be

2 procured by the United States and delivery of such

3 list to each department and agency of the United

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

5 electronic form and shall include the name and ad6 dress of each such small business concern and the

7 products or services that it provides.

8 SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT AS9 SISTANCE FOR MILITARY RESERVISTS’

10 SMALL BUSINESSES.

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

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

13 following:

14 ‘‘(l) MANAGEMENT ASSISTANCE FOR SMALL BUSI15 NESSES AFFECTED BY MILITARY OPERATIONS.—The Ad16 ministration shall utilize, as appropriate, its entrepre17 neurial development and management assistance pro18 grams, including programs involving State or private sec19 tor partners, to provide business counseling and training

20 to any small business concern adversely affected by the

21 deployment of units of the Armed Forces of the United

22 States in support of a period of military conflict (as de23 fined in section 7(n)(1)).’’.

24 (b) ENHANCED PUBLICITY DURING OPERATION AL25 LIED FORCE.—For the duration of Operation Allied Force
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1 and for 120 days thereafter, the Administration shall en2 hance its publicity of the availability of assistance provided

3 pursuant to the amendment made by this section, includ4 ing information regarding the appropriate local office at

5 which affected small businesses may seek such assistance.

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

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

8 Small Business Administration shall issue such guidelines

9 as the Administrator determines to be necessary to carry

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

11 TITLE IV—FINANCIAL

12 ASSISTANCE

13 SEC. 401. GENERAL BUSINESS LOAN PROGRAM.

14 (a) DEFINITION OF HANDICAPPED INDIVIDUAL.—

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

16 is amended to read as follows:

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

18 ‘handicapped individual’ means an individual—

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

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

21 a permanent nature which in any way limits the se22 lection of any type of employment for which the per23 son would otherwise be qualified or qualifiable; or

24 ‘‘(2) who is a service-disabled veteran.’’.
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1 (b) AUTHORIZATION TO MAKE LOANS.—Section

2 7(a)(10) of the Small Business Act (15 U.S.C.

3 636(a)(10)) is amended—

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

5 and

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

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

8 SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERV9 ISTS.

10 (a) REPAYMENT DEFERRAL FOR ACTIVE DUTY RE11 SERVISTS.—Section 7 of the Small Business Act (15

12 U.S.C. 636) is amended by adding at the end the fol13 lowing:

14 ‘‘(n) REPAYMENT DEFERRED FOR ACTIVE DUTY RE15 SERVISTS.—

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

17 ‘‘(A) ELIGIBLE RESERVIST.—The term ‘el18 igible reservist’ means a member of a reserve

19 component of the Armed Forces ordered to ac20 tive duty during a period of military conflict.

21 ‘‘(B) ESSENTIAL EMPLOYEE.—The term

22 ‘essential employee’ means an individual who is

23 employed by a small business concern and

24 whose managerial or technical expertise is crit-
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1 ical to the successful day-to-day operations of

2 that small business concern.

3 ‘‘(C) PERIOD OF MILITARY CONFLICT.—

4 The term ‘period of military conflict’ means—

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

6 Congress;

7 ‘‘(ii) a period of national emergency

8 declared by the Congress or by the Presi9 dent; or

10 ‘‘(iii) a period of a contingency oper11 ation, as defined in section 101(a) of title

12 10, United States Code.

13 ‘‘(D) QUALIFIED BORROWER.—The term

14 ‘qualified borrower’ means—

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

16 reservist and who received a direct loan

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

18 ordered to active duty; or

19 ‘‘(ii) a small business concern that re20 ceived a direct loan under subsection (a) or

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

22 essential employee, was ordered to active

23 duty.

24 ‘‘(2) DEFERRAL OF DIRECT LOANS.—
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1 ‘‘(A) IN GENERAL.—The Administration

2 shall, upon written request, defer repayment of

3 principal and interest due on a direct loan made

4 under subsection (a) or (b), if such loan was in5 curred by a qualified borrower.

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

7 of deferral for repayment under this paragraph

8 shall begin on the date on which the eligible re9 servist is ordered to active duty and shall termi10 nate on the date that is 180 days after the date

11 such eligible reservist is discharged or released

12 from active duty.

13 ‘‘(C) INTEREST RATE REDUCTION DURING

14 DEFERRAL.—Notwithstanding any other provi15 sion of law, during the period of deferral de16 scribed in subparagraph (B), the Administra17 tion may, in its discretion, reduce the interest

18 rate on any loan qualifying for a deferral under

19 this paragraph.

20 ‘‘(3) DEFERRAL OF LOAN GUARANTEES AND

21 OTHER FINANCINGS.—The Administration shall—

22 ‘‘(A) encourage intermediaries partici23 pating in the program under subsection (m) to

24 defer repayment of a loan made with proceeds

25 made available under that subsection, if such
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1 loan was incurred by a small business concern

2 that is eligible to apply for assistance under

3 subsection (b)(3); and

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

5 of enactment of this subsection, establish guide6 lines to—

7 ‘‘(i) encourage lenders and other

8 intermediaries to defer repayment of, or

9 provide other relief relating to, loan guar10 antees under subsection (a) and financings

11 under section 504 of the Small Business

12 Investment Act of 1958 that were incurred

13 by small business concerns that are eligible

14 to apply for assistance under subsection

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

16 subsection (m) if the intermediary provides

17 relief to a small business concern under

18 this paragraph; and

19 ‘‘(ii) implement a program to provide

20 for the deferral of repayment or other re21 lief to any intermediary providing relief to

22 a small business borrower under this para23 graph.’’.

24 (b) DISASTER LOAN ASSISTANCE FOR MILITARY RE25 SERVISTS’ SMALL BUSINESSES.—Section 7(b) of the
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1 Small Business Act (15 U.S.C. 636(b)) is amended by in2 serting after the undesignated paragraph that begins with

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

4 ‘‘(3)(A) In this paragraph—

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

6 an individual who is employed by a small busi7 ness concern and whose managerial or technical

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

9 operations of that small business concern;

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

11 has the meaning given the term in subsection

12 (n)(1); and

13 ‘‘(iii) the term ‘substantial economic in14 jury’ means an economic harm to a business

15 concern that results in the inability of the busi16 ness concern—

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

18 mature;

19 ‘‘(II) to pay its ordinary and nec20 essary operating expenses; or

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

22 a product or service ordinarily marketed,

23 produced, or provided by the business con24 cern.
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1 ‘‘(B) The Administration may make such dis2 aster loans (either directly or in cooperation with

3 banks or other lending institutions through agree4 ments to participate on an immediate or deferred

5 basis) to assist a small business concern that has

6 suffered or that is likely to suffer substantial eco7 nomic injury as the result of an essential employee

8 of such small business concern being ordered to ac9 tive military duty during a period of military con10 flict.

11 ‘‘(C) A small business concern described in sub12 paragraph (B) shall be eligible to apply for assist13 ance under this paragraph during the period begin14 ning on the date on which the essential employee is

15 ordered to active duty and ending on the date that

16 is 90 days after the date on which such essential

17 employee is discharged or released from active duty.

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

19 to this paragraph shall be made at the same interest

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

21 ‘‘(E) No loan may be made under this para22 graph, either directly or in cooperation with banks

23 or other lending institutions through agreements to

24 participate on an immediate or deferred basis, if the

25 total amount outstanding and committed to the bor-
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1 rower under this subsection would exceed

2 $1,500,000, unless such applicant constitutes a

3 major source of employment in its surrounding area,

4 as determined by the Administration, in which case

5 the Administration, in its discretion, may waive the

6 $1,500,000 limitation.

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

8 paragraph, no declaration of a disaster area shall be

9 required.’’.

10 (c) ENHANCED PUBLICITY DURING OPERATION AL11 LIED FORCE.—For the duration of Operation Allied Force

12 and for 120 days thereafter, the Administration shall en13 hance its publicity of the availability of assistance provided

14 pursuant to the amendments made by this section, includ15 ing information regarding the appropriate local office at

16 which affected small businesses may seek such assistance.

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

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

19 Small Business Administration shall issue such guidelines

20 as the Administrator determines to be necessary to carry

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

22 (e) EFFECTIVE DATES.—

23 (1) IN GENERAL.—Except as provided in para24 graph (2), the amendments made by this section
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1 shall take effect on the date of the enactment of this

2 section.

3 (2) DISASTER LOANS.—The amendments made

4 by subsection (b) shall apply to economic injury suf5 fered or likely to be suffered as the result of a period

6 of military conflict occurring or ending on or after

7 March 24, 1999.

8 SEC. 403. MICROLOAN PROGRAM.

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

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

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

12 after ‘‘low-income,’’.

13 SEC. 404. DELTA LOAN PROGRAM.

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

15 636(a)(21)(A)) is amended in subclause (ii) by inserting

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

17 SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.

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

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

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

21 and (G) as subparagraphs (F), (G), and (H), respec22 tively; and

23 (2) by inserting after subparagraph (D) the fol24 lowing:
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1 ‘‘(E) expansion of small business concerns

2 owned and controlled by veterans, as defined in

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

4 U.S.C. 632(q)), especially service-disabled vet5 erans, as defined in such section 3(q),’’.

6 TITLE V—PROCUREMENT

7 ASSISTANCE

8 SEC. 501. SUBCONTRACTING.

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

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

11 inserting ‘‘small business concerns owned and controlled

12 by service-disabled veterans,’’ after ‘‘small business con13 cerns,’’ the first place it appears in the first and second

14 sentences.

15 (b) CONTRACT CLAUSE.—The contract clause speci16 fied in section 8(d)(3) of the Small Business Act (15

17 U.S.C. 637(d)(3)) is amended as follows:

18 (1) Subparagraph (A) of such clause is amend19 ed by inserting ‘‘small business concerns owned and

20 controlled by veterans,’’ after ‘‘small business con21 cerns,’’ the first place it appears in the first and sec22 ond sentences.

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

24 are redesignated as subparagraphs (F) and (G), re-
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1 spectively, and the following new subparagraph is in2 serted after subparagraph (D) of such clause:

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

4 and controlled by veterans’ shall mean a small busi5 ness concern—

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

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

8 of any publicly owned business, at least 51 per

9 centum of the stock of which is owned by one

10 or more veterans; and

11 ‘‘(ii) whose management and daily business

12 operations are controlled by such veterans. The

13 contractor shall treat as veterans all individuals

14 who are veterans within the meaning of the

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

16 Act.’’.

17 (3) Subparagraph (F) of such clause, as redes18 ignated by paragraph (2) of this subsection, is

19 amended by inserting ‘‘small business concern owned

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

21 concern,’’ the first place it appears.

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

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

24 amended by inserting ‘‘small business concerns owned and

25 controlled by veterans,’’ after ‘‘small business concerns,’’
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1 the first place it appears in paragraphs (4)(D), (4)(E),

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

3 SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.

4 (a) GOVERNMENT-WIDE PARTICIPATION GOALS.—

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

6 (15 U.S.C. 644) is amended—

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

8 business concerns owned and controlled by service

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

10 the first place it appears;

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

12 following: ‘‘The Government-wide goal for participa13 tion by small business concerns owned and con14 trolled by service-disabled veterans shall be estab15 lished at not less than 5 percent of the total value

16 of all prime contract and subcontract awards for

17 each fiscal year.’’; and

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

19 ‘‘small business concerns owned and controlled by

20 service-disabled veterans,’’ after ‘‘small business con21 cerns,’’ the first place it appears.

22 (b) AGENCY PARTICIPATION GOALS.—Subsection

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

24 644) is amended—
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1 (1) in the first sentence, by inserting ‘‘by small

2 business concerns owned and controlled by service3 disabled veterans,’’ after ‘‘small business concerns,’’;

4 the first place it appears;

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

6 business concerns owned and controlled by service7 disabled veterans,’’ after ‘‘small business concerns,’’

8 the first place it appears; and

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

10 business concerns owned and controlled by service11 disabled veterans, by’’ after ‘‘including participation

12 by’’.

13 TITLE VI—REPORTS AND DATA

14 COLLECTION

15 SEC. 601. REPORTING REQUIREMENTS.

16 (a) REPORTS TO SMALL BUSINESS ADMINISTRA17 TION.—Subsection (h)(1) of section 15 of the Small Busi18 ness Act (15 U.S.C. 644) is amended by inserting ‘‘small

19 business concerns owned and controlled by veterans (in20 cluding service-disabled veterans),’’ after ‘‘small business

21 concerns,’’ the first place it appears.

22 (b) REPORTS TO THE PRESIDENT AND THE CON23 GRESS.—Subsection (h)(2) of section 15 of the Small

24 Business Act (15 U.S.C. 644) is amended—
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1 (1) by inserting ‘‘and the Congress’’ before the

2 period at the end of first sentence; and

3 (2) in subparagraphs (A), (D), and (E), by in4 serting ‘‘small business concerns owned and con5 trolled by service-disabled veterans,’’ after ‘‘small

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

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

8 Section 303(e) of the Small Business Economic Pol9 icy Act of 1980 (15 U.S.C. 631b(e)) is amended—

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

11 the semicolon;

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

13 the end and inserting ‘‘; and’’; and

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

15 ‘‘(3) small business concerns owned and con16 trolled by veterans, as defined in section 3(q) of the

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

18 business concerns owned and controlled by service19 disabled veterans, as defined in such section 3(q).’’.

20 SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.

21 The Administrator of the Small Business Administra22 tion shall transmit annually to the Committees on Small

23 Business and Veterans Affairs of the House of Represent24 atives and the Senate a report on the needs of small busi25 ness concerns owned and controlled by veterans and small
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1 business concerns owned and controlled by service-disabled

2 veterans, which shall include information on—

3 (1) the availability of Small Business Adminis4 tration programs for such small business concerns

5 and the degree of utilization of such programs by

6 such small business concerns during the preceding

7 12-month period, including statistical information on

8 such utilization as compared to the small business

9 community as a whole;

10 (2) the percentage and dollar value of Federal

11 contracts awarded to such small business concerns

12 during the preceding 12-month period; and

13 (3) proposals to improve the access of such

14 small business concerns to the assistance made avail15 able by the United States.

16 SEC. 604. DATA AND INFORMATION COLLECTION.

17 (a) INFORMATION ON FEDERAL PROCUREMENT

18 PRACTICES.—The Administrator of the Small Business

19 Administration shall, for each fiscal year—

20 (1) collect information concerning the procure21 ment practices and procedures of each department

22 and agency of the United States having procurement

23 authority;

24 (2) publish and disseminate such information to

25 procurement officers in all Federal agencies; and
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1 (3) make such information available to any

2 small business concern requesting such information.

3 (b) IDENTIFICATION OF SMALL BUSINESS CONCERNS

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

5 Secretary of Veterans Affairs shall, in consultation with

6 the Assistant Secretary of Labor for Veterans’ Employ7 ment and Training and the Administrator of the Small

8 Business Administration, identify small business concerns

9 owned and controlled by veterans in the United States.

10 The Secretary shall inform each small business concern

11 identified under this paragraph that information on Fed12 eral procurement is available from the Administrator.

13 (c) SELF-EMPLOYMENT OPPORTUNITIES.—The Sec14 retary of Labor, the Secretary of Veterans Affairs, and

15 the Administrator of the Small Business Administration

16 shall enter into a memorandum of understanding to pro17 vide for coordination of vocational rehabilitation services,

18 technical and managerial assistance, and financial assist19 ance to veterans, including service-disabled veterans, seek20 ing to employ themselves by forming or expanding small

21 business concerns. The memorandum of understanding

22 shall include recommendations for expanding existing pro23 grams or establishing new programs to provide such serv24 ices or assistance to such veterans.
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1 TITLE VII—MISCELLANEOUS

2 PROVISIONS

3 SEC. 701. ADMINISTRATOR’S ORDER.

4 The Administrator of the Small Business Administra5 tion shall strengthen and reissue the Administrator’s order

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

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

8 nondiscrimination and special considerations for veterans,

9 and take all necessary steps to ensure that its provisions

10 are fully and vigorously implemented.

11 SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF

12 ADVOCACY.

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

14 is amended—

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

16 end;

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

18 the end and inserting ‘‘; and’’; and

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

20 ‘‘(12) evaluate the efforts of each department

21 and agency of the United States, and of private in22 dustry, to assist small business concerns owned and

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

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

25 small business concerns owned and controlled by
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1 serviced-disabled veterans, as defined in such section

2 3(q), and to provide statistical information on the

3 utilization of such programs by such small business

4 concerns, and to make appropriate recommendations

5 to the Administrator of the Small Business Adminis6 tration and to the Congress in order to promote the

7 establishment and growth of those small business

8 concerns.’’.

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

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

11 conduct a study on whether there would exist any addi12 tional risk or cost to the United States if—

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

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

15 were made for the acquisition or construction of

16 fixed assets used in a trade or business rather than

17 for the construction or purchase of residential build18 ings; and

19 (2) such loans for acquisition or construction of

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

21 years and the terms regarding eligibility, loan limits,

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

23 for other loans guaranteed under such chapter.

24 (b) REPORT.—
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1 (1) IN GENERAL.—Not later than 180 days

2 after the enactment of this Act, the Comptroller

3 General shall transmit the report described in sub4 section (a) to the Committees on Veterans’ Affairs

5 and the Committees on Small Business of the House

6 of Representatives and the Senate.

7 (2) CONTENTS OF REPORT.—The report re8 quired by paragraph (1) shall specifically address

9 the following:

10 (A) With respect to the change in the vet11 erans’ housing loan program contemplated

12 under subsection (a):

13 (i) The increase or decrease in admin14 istrative costs to the Department of Vet15 erans Affairs.

16 (ii) The increase or decrease in the

17 degree of exposure of the United States as

18 the guarantor of the loans.

19 (iii) The increase or decrease in the

20 Federal subsidy rate that would be pos21 sible.

22 (iv) Any increase in the interest rate

23 or fees charged to the borrower or lender

24 that would be required to maintain present

25 program costs.
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1 (B) Information regarding the delinquency

2 rates, default rates, length of time required for

3 recovery after default, for fixed-asset business

4 loans, of a size and duration comparable to

5 those contemplated under subsection (a), made

6 available in the private market or under section

7 503 of the Small Business Investment Act.

8 SECTION 1. SHORT TITLE.

9 This Act may be cited as the ‘‘Veterans Entrepreneur10 ship and Small Business Development Act of 1999’’.

11 SEC. 2. TABLE OF CONTENTS.

12 The table of contents for this Act is as follows:

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. Defense Economic Transition Loan Program.

Sec. 405. State development company program.
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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.

15 (4) Medical advances and new medical tech16 nologies have made it possible for service-disabled vet17 erans to play a much more active role in the forma-
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1 tion and expansion of small business enterprises in

2 the United States.

3 (5) The United States must provide additional

4 assistance and support to veterans to better equip

5 them to form and expand small business enterprises,

6 thereby enabling them to realize the American dream

7 that they fought to protect.

8 SEC. 102. PURPOSE.

9 The purpose of this Act is to expand existing and es10 tablish new assistance programs for veterans who own or

11 operate small businesses. This Act accomplishes this purpose

12 by—

13 (1) expanding the eligibility for certain small

14 business assistance programs to include veterans;

15 (2) directing certain departments and agencies of

16 the United States to take actions that enhance small

17 business assistance to veterans; and

18 (3) establishing new institutions to provide small

19 business assistance to veterans or to support the insti20 tutions that provide such assistance.

21 SEC. 103. DEFINITIONS.

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

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

24 end the following:
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1 ‘‘(q) DEFINITIONS RELATING TO VETERANS.—In this

2 Act, the following definitions apply:

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

4 ‘service-disabled veteran’ means a veteran with a dis5 ability that is service-connected (as defined in section

6 101(16) of title 38, United States Code).

7 ‘‘(2) SMALL BUSINESS CONCERN OWNED AND

8 CONTROLLED BY SERVICE-DISABLED VETERANS.—The

9 term ‘small business concern owned and controlled by

10 service-disabled veterans’ means a small business

11 concern—

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

13 owned by one or more service-disabled veterans

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

15 not less than 51 percent of the stock of which is

16 owned by one or more service-disabled veterans;

17 and

18 ‘‘(B) the management and daily business

19 operations of which are controlled by one or

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

21 a veteran with permanent and severe disability,

22 the spouse or permanent caregiver of such vet23 eran.

24 ‘‘(3) SMALL BUSINESS CONCERN OWNED AND

25 CONTROLLED BY VETERANS.—The term ‘small busi-
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1 ness concern owned and controlled by veterans’ means

2 a small business concern—

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

4 owned by one or more veterans or, in the case of

5 any publicly owned business, not less than 51

6 percent of the stock of which is owned by one or

7 more veterans; and

8 ‘‘(B) the management and daily business

9 operations of which are controlled by one or

10 more veterans.

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

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

13 United States Code.’’.

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

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

16 Act, as added by this section, apply.

17 TITLE II—VETERANS BUSINESS

18 DEVELOPMENT

19 SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE

20 SMALL BUSINESS ADMINISTRATION.

21 (a) IN GENERAL.—Section 4(b)(1) of the Small Busi22 ness Act (15 U.S.C. 633(b)(1)) is amended—

23 (1) in the fifth sentence, by striking ‘‘four Asso24 ciate Administrators’’ and inserting ‘‘five Associate

25 Administrators’’; and
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1 (2) by inserting after the fifth sentence the fol2 lowing: ‘‘One such Associate Administrator shall be

3 the Associate Administrator for Veterans Business De4 velopment, who shall administer the Office of Veterans

5 Business Development established under section 32.’’.

6 (b) OFFICE OF VETERANS BUSINESS DEVELOPMENT;

7 ASSOCIATE ADMINISTRATOR.—The Small Business Act (15

8 U.S.C. 631 et seq.) is amended—

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

10 and

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

12 ‘‘SEC. 32. VETERANS PROGRAMS.

13 ‘‘(a) OFFICE OF VETERANS BUSINESS DEVELOP14 MENT.—There is established in the Administration an Of15 fice of Veterans Business Development, which shall be ad16 ministered by the Associate Administrator for Veterans

17 Business Development (in this section referred to as the ‘As18 sociate Administrator’) appointed under section 4(b)(1).

19 ‘‘(b) ASSOCIATE ADMINISTRATOR FOR VETERANS

20 BUSINESS DEVELOPMENT.—The Associate

21 Administrator—

22 ‘‘(1) shall be an appointee in the Senior Execu23 tive Service;

24 ‘‘(2) shall be responsible for the formulation, exe25 cution, and promotion of policies and programs of the
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1 Administration that provide assistance to small busi2 ness concerns owned and controlled by veterans and

3 small business concerns owned and controlled by serv4 ice-disabled veterans. The Associate Administrator

5 shall act as an ombudsman for full consideration of

6 veterans in all programs of the Administration; and

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

8 the Administrator.’’.

9 SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT

10 CORPORATION.

11 (a) IN GENERAL.—The Small Business Act (15 U.S.C.

12 631 et seq.) is amended by inserting after section 32 (as

13 added by this Act) the following:

14 ‘‘SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT

15 CORPORATION.

16 ‘‘(a) ESTABLISHMENT.—There is established a feder17 ally chartered corporation to be known as the National Vet18 erans Business Development Corporation (in this section re19 ferred to as the ‘Corporation’) which shall be incorporated

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

21 have the powers granted in this section.

22 ‘‘(b) PURPOSES OF THE CORPORATION.—The purposes

23 of the Corporation shall be—
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1 ‘‘(1) to expand the provision of and improve ac2 cess to technical assistance regarding entrepreneur3 ship for the Nation’s veterans; and

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

5 veterans, with the formation and expansion of small

6 business concerns by working with and organizing

7 public and private resources, including those of the

8 Small Business Administration, the Department of

9 Veterans Affairs, the Department of Labor, the De10 partment of Commerce, the Department of Defense,

11 the Service Corps of Retired Executives (described in

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

13 Development Centers (described in section 21 of this

14 Act), and the business development staffs of each de15 partment and agency of the United States.

16 ‘‘(c) BOARD OF DIRECTORS.—

17 ‘‘(1) IN GENERAL.—The management of the Cor18 poration shall be vested in a Board of Directors com19 posed of nine voting members and three nonvoting ex

20 officio members.

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

22 Administrator shall, after considering a list of can23 didates which shall be proposed by the Chairmen of

24 the Committees on Small Business and Veterans’ Af25 fairs of the House of Representatives and the Senate,
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1 appoint United States citizens to be voting members

2 of the Board of Directors as follows:

3 ‘‘(A) One from a list of individuals nomi4 nated by the chairman of the Committee on

5 Small Business of the House of Representatives.

6 ‘‘(B) One from a list of individuals nomi7 nated by the chairman of the Committee on

8 Small Business of the Senate.

9 ‘‘(C) One from a list of individuals nomi10 nated by the ranking minority member of the

11 Committee on Small Business of the House of

12 Representatives.

13 ‘‘(D) One from a list of individuals nomi14 nated by the ranking minority members of the

15 Committee on Small Business of the Senate.

16 ‘‘(E) One from a list of individuals nomi17 nated by the chairman of the Committee on Vet18 erans’ Affairs of the House of Representatives.

19 ‘‘(F) One from a list of individuals nomi20 nated by the chairman of the Committee on Vet21 erans’ Affairs of the Senate.

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

24 Committee on Veterans’ Affairs of the House of

25 Representatives.
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1 ‘‘(H) One from a list of individuals nomi2 nated the ranking minority member of the Com3 mittee on Veterans’ Affairs of the Senate.

4 ‘‘(I) One of the Administrator’s own choos5 ing.

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

7 of the Small Business Administration, the Secretary

8 of Defense, and the Secretary of Veterans Affairs shall

9 serve as the nonvoting ex officio members of the Board

10 of Directors.

11 ‘‘(4) INITIAL APPOINTMENTS.—The initial mem12 bers of the Board of Directors shall be appointed not

13 later than 60 days after the date of enactment of this

14 Act.

15 ‘‘(5) CHAIRPERSON.—The members of the Board

16 of Directors appointed under paragraph (2) shall

17 elect one such member to serve as chairperson of the

18 Board of Directors for a term of 2 years.

19 ‘‘(6) TERMS OF APPOINTED MEMBERS.—

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

21 Board of Directors appointed under paragraph

22 (2) shall serve a term of 6 years, except as pro23 vided in subparagraph (B).
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1 ‘‘(B) TERMS OF INITIAL APPOINTEES.—As

2 designated by the Administrator at the time of

3 appointment, of the members first appointed—

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

5 years; and

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

7 years.

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

9 the Board of Directors appointed to fill a va10 cancy occurring before the expiration of the term

11 for which the member’s predecessor was ap12 pointed shall be appointed only for the remain13 der of the term. A member may serve after the

14 expiration of that member’s term until a suc15 cessor has taken office.

16 ‘‘(7) VACANCIES.—Any vacancy on the Board of

17 Directors shall be filled in the manner in which the

18 original appointment was made. In the case of a va19 cancy in the office of the Administrator of the Small

20 Business Administration or the Secretary of Veterans

21 Affairs, and pending the appointment of a successor,

22 an acting appointee for such vacancy may serve as

23 an ex officio member.

24 ‘‘(8) INELIGIBILITY FOR OTHER OFFICES.—No

25 voting member of the Board of Directors may be an
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1 officer or employee of the United States while serving

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

3 2-year period preceding such service.

4 ‘‘(9) IMPARTIALITY AND NONDISCRIMINATION.—

5 The Board of Directors shall administer the affairs of

6 the Corporation fairly and impartially and without

7 discrimination.

8 ‘‘(10) OBLIGATIONS AND EXPENSES.—The Board

9 of Directors shall prescribe the manner in which the

10 obligations of the Corporation may be incurred and

11 in which its expenses shall be allowed and paid.

12 ‘‘(11) QUORUM.—Five voting members of the

13 Board of Directors shall constitute a quorum, but a

14 lesser number may hold hearings.

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

16 Corporation shall become a body corporate and as such

17 shall have the authority to do the following:

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

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

20 of Congress.

21 ‘‘(3) To make contracts or grants.

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

23 against lawsuits in State or Federal court.

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

25 of Directors, officers and employees of the Corpora-
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1 tion, to define their duties and responsibilities, fix

2 their compensations, and to dismiss at will such offi3 cers or employees.

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

5 Board of Directors, bylaws not inconsistent with Fed6 eral law and the law of the State of incorporation,

7 regulating the manner in which its general business

8 may be conducted and the manner in which the privi9 leges granted to it by law may be exercised.

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

11 of Directors or duly authorized officers, all powers

12 specifically granted by the provisions of this section,

13 and such incidental powers as shall be necessary.

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

15 private, Federal, State and local organizations.

16 ‘‘(9) To accept and employ or dispose of in fur17 therance of the purposes of this section any money or

18 property, real, personal, or mixed, tangible or intan19 gible, received by gift, devise, bequest, or otherwise.

20 ‘‘(10) To accept voluntary and uncompensated

21 services.

22 ‘‘(e) CORPORATE FUNDS.—

23 ‘‘(1) DEPOSIT OF FUNDS.—The Board of Direc24 tors shall deposit all funds of the Corporation in fed-
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1 erally chartered and insured depository institutions

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

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

4 Corporation may be disbursed only for purposes that

5 are—

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

7 a recorded vote with a quorum present; and

8 ‘‘(B) in accordance with the purposes of the

9 Corporation as specified in subsection (b).

10 ‘‘(f) NETWORK OF INFORMATION AND ASSISTANCE

11 CENTERS.—In carrying out the purpose described in sub12 section (b), the Corporation shall establish and maintain

13 a network of information and assistance centers for use by

14 veterans and the public.

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

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

17 President and the Congress describing the activities and ac18 complishments of the Corporation for the preceding year

19 and the Corporation’s findings regarding the efforts of Fed20 eral, State and private organizations to assist veterans in

21 the formation and expansion of small business concerns.

22 ‘‘(h) ASSUMPTION OF DUTIES OF ADVISORY COM23 MITTEE.—On October 1, 2004, the Corporation established

24 under this section shall assume the duties, responsibilities,
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1 and authority of the Advisory Committee on Veterans Af2 fairs established under section 203 of this Act.

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

4 United States mails in the same manner and under the

5 same conditions as the departments and agencies of the

6 United States.

7 ‘‘(j) PROFESSIONAL CERTIFICATION ADVISORY

8 BOARD.—

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

10 Directors, the Corporation shall establish a Profes11 sional Certification Advisory Board to create uniform

12 guidelines and standards for the professional certifi13 cation of members of the Armed Services to aid in

14 their efficient and orderly transition to civilian occu15 pations and professions and to remove potential bar16 riers in the areas of licensure and certification.

17 ‘‘(2) MEMBERSHIP.—The members of the Advi18 sory Board shall serve without compensation, shall

19 meet in the District of Columbia no less than quar20 terly, and shall be appointed by the Board of Direc21 tors as follows:

22 ‘‘(A) PRIVATE SECTOR MEMBERS.—The

23 Corporation shall appoint not less than seven

24 members for terms of 2 years to represent private

25 sector organizations and associations, including
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1 the American Association of Community Col2 leges, the Society for Human Resource Managers,

3 the Coalition for Professional Certification, the

4 Council on Licensure and Enforcement, and the

5 American Legion.

6 ‘‘(B) PUBLIC SECTOR MEMBERS.—The Cor7 poration shall invite public sector members to

8 serve at the discretion of their departments or

9 agencies and shall—

10 ‘‘(i) encourage the participation of the

11 Under Secretary of Defense for Personnel

12 and Readiness;

13 ‘‘(ii) encourage the participation of

14 two officers from each branch of the Armed

15 Forces to represent the Training Commands

16 of their branch; and

17 ‘‘(iii) seek the participation and guid18 ance of the Assistant Secretary of Labor for

19 Veterans’ Employment and Training.

20 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—

21 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

22 there are authorized to be appropriated to the Cor23 poration to carry out this section—

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

25 ‘‘(B) $4,000,000 for fiscal year 2001;
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1 ‘‘(C) $4,000,000 for fiscal year 2002; and

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

3 ‘‘(2) MATCHING REQUIREMENT.—

4 ‘‘(A) FISCAL YEAR 2001.—The amount made

5 available to the Corporation for fiscal year 2001

6 may not exceed twice the amount that the Cor7 poration certifies that it will provide for that fis8 cal year from sources other than the Federal

9 Government.

10 ‘‘(B) SUBSEQUENT FISCAL YEARS.—The

11 amount made available to the Corporation for

12 fiscal year 2002 or 2003 may not exceed the

13 amount that the Corporation certifies that it will

14 provide for that fiscal year from sources other

15 than the Federal Government.

16 ‘‘(3) PRIVATIZATION.—The Corporation shall in17 stitute and implement a plan to raise private funds

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

19 (b) GAO REPORT.—Not later than 180 days after the

20 last day of the second fiscal year beginning after the date

21 on which the initial members of the Board of Directors of

22 the National Veterans Business Development Corporation

23 are appointed under section 33(c) of the Small Business

24 Act (as added by this section), the Comptroller General of

25 the United States shall evaluate the effectiveness of the Na-
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1 tional Veterans Business Development Corporation in car2 rying out the purposes under section 33(b) of the Small

3 Business Act (as added by this section), and submit to Con4 gress a report on the results of that evaluation.

5 SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS

6 AFFAIRS.

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

8 committee to be known as the ‘‘Advisory Committee on Vet9 erans Business Affairs’’ (in this section referred to as the

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

11 of advice and policy recommendations to—

12 (1) the Administrator of the Small Business Ad13 ministration (in this section referred to as the ‘‘Ad14 ministrator’’);

15 (2) the Associate Administrator for Veterans

16 Business Development of the Small Business Admin17 istration;

18 (3) the Congress;

19 (4) the President; and

20 (5) other United States policymakers.

21 (b) MEMBERSHIP.—

22 (1) IN GENERAL.—The Committee shall be com23 posed of 15 members, of whom—

24 (A) eight shall be veterans who are owners

25 of small business concerns (within the meaning
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1 of the term under section 3 of the Small Business

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

3 (B) seven shall be representatives of veterans

4 organizations.

5 (2) APPOINTMENT.—

6 (A) IN GENERAL.—The members of the

7 Committee shall be appointed by the Adminis8 trator in accordance with this section.

9 (B) INITIAL APPOINTMENTS.—Not later

10 than 90 days after the date of enactment of this

11 Act, the Administrator shall appoint the initial

12 members of the Committee.

13 (3) POLITICAL AFFILIATION.—Not more than

14 eight members of the Committee shall be of the same

15 political party as the President.

16 (4) PROHIBITION ON FEDERAL EMPLOYMENT.—

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

18 subparagraph (B), no member of the Committee

19 may serve as an officer or employee of the

20 United States.

21 (B) EXCEPTION.—A member of the Com22 mittee who accepts a position as an officer or

23 employee of the United States after the date of

24 the member’s appointment to the Committee may
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1 continue to serve on the Committee for not more

2 than 30 days after such acceptance.

3 (5) TERM OF SERVICE.—

4 (A) IN GENERAL.—Subject to subparagraph

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

6 Committee shall be 3 years.

7 (B) TERMS OF INITIAL APPOINTEES.—As

8 designated by the Administrator at the time of

9 appointment, of the members first appointed—

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

11 4 years; and

12 (ii) five shall be appointed for a term

13 of 5 years.

14 (6) VACANCIES.—The Administrator shall fill

15 any vacancies on the membership of the Committee

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

17 vacancy occurs.

18 (7) CHAIRPERSON.—

19 (A) IN GENERAL.—The members of the

20 Committee shall elect one of the members to be

21 Chairperson of the Committee.

22 (B) VACANCIES IN OFFICE OF CHAIR23 PERSON.—Any vacancy in the office of the

24 Chairperson of the Committee shall be filled by

25 the Committee at the first meeting of the Com-
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1 mittee following the date on which the vacancy

2 occurs.

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

4 following:

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

6 programs developed in the public and private sectors,

7 that affect the ability of small business concerns

8 owned and controlled by veterans to obtain capital

9 and credit and to access markets.

10 (2) Promote the collection of business informa11 tion and survey data as they relate to veterans and

12 small business concerns owned and controlled by vet13 erans.

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

15 operations of the departments and agencies of the

16 United States that may contribute to the formation

17 and growth of small business concerns owned and

18 controlled by veterans.

19 (4) Develop and promote initiatives, policies,

20 programs, and plans designed to foster small business

21 concerns owned and controlled by veterans.

22 (5) In cooperation with the National Veterans

23 Business Development Corporation, develop a com24 prehensive plan, to be updated annually, for joint

25 public-private sector efforts to facilitate growth and
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1 development of small business concerns owned and

2 controlled by veterans.

3 (d) POWERS.—

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

5 Committee may hold such hearings, sit and act at

6 such times and places, take such testimony, and re7 ceive such evidence as the Committee considers advis8 able to carry out its duties.

9 (2) INFORMATION FROM FEDERAL AGENCIES.—

10 Upon request of the Chairperson of the Committee, the

11 head of any department or agency of the United

12 States shall furnish such information to the Com13 mittee as the Committee considers to be necessary to

14 carry out its duties.

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

16 United States mails in the same manner and under

17 the same conditions as other departments and agen18 cies of the United States.

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

20 and dispose of gifts or donations of services or prop21 erty.

22 (e) MEETINGS.—

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

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

25 Chairperson or at the request of the Administrator.
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1 (2) LOCATION.—Each meeting of the full Com2 mittee shall be held at the headquarters of the Small

3 Business Administration located in Washington, Dis4 trict of Columbia. The Administrator shall provide

5 suitable meeting facilities and such administrative

6 support as may be necessary for each full meeting of

7 the Committee.

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

9 time to time, establish temporary task groups as may

10 be necessary in order to carry out its duties.

11 (f) COMPENSATION AND EXPENSES.—

12 (1) NO COMPENSATION.—Members of the Com13 mittee shall serve without compensation for their serv14 ice to the Committee.

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

16 shall be reimbursed for travel and subsistence expenses

17 in accordance with section 5703 of title 5, United

18 States Code.

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

20 each fiscal year beginning after the date of enactment of

21 this section, the Committee shall transmit to the Congress

22 and the President a report describing the activities of the

23 Committee and any recommendations developed by the

24 Committee for the promotion of small business concerns

25 owned and controlled by veterans.
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1 (h) TERMINATION.—The Committee shall terminate its

2 business on September 30, 2004.

3 TITLE III—TECHNICAL

4 ASSISTANCE

5 SEC. 301. SCORE PROGRAM.

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

7 Business Administration shall enter into a memorandum

8 of understanding with the Service Core of Retired Execu9 tives (described in section 8(b)(1)(B) of the Small Business

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

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

12 (1) The appointment by SCORE in its national

13 office of an individual to act as National Veterans

14 Business Coordinator, whose duties shall relate exclu15 sively to veterans business matters, and who shall be

16 responsible for the establishment and administration

17 of a program to coordinate counseling and training

18 regarding entrepreneurship to veterans through the

19 chapters of SCORE throughout the United States.

20 (2) The assistance of SCORE in the establishing

21 and maintaining a toll-free telephone number and an

22 Internet website to provide access for veterans to in23 formation about the counseling and training regard24 ing entrepreneurship available to veterans through

25 SCORE.
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1 (3) The collection of statistics concerning services

2 provided by SCORE to veterans, including service3 disabled veterans, for inclusion in each annual report

4 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 Adminis14 trator of the Small Business Administration, and the head

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

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

17 enter into a memorandum of understanding with respect

18 to entrepreneurial assistance to veterans, including service19 disabled veterans, through Small Business Development

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

21 (15 U.S.C. 648)) and facilities of the Department of Vet22 erans Affairs. Such assistance shall include the following:

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

24 distribution of information generated by such studies

25 and research, on the formation, management, financ-
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1 ing, marketing, and operation of small business con2 cerns by veterans.

3 (2) Provision of training and counseling to vet4 erans concerning the formation, management, financ5 ing, marketing, and operation of small business con6 cerns.

7 (3) Provision of management and technical as8 sistance to the owners and operators of small business

9 concerns regarding international markets, the pro10 motion of exports, and the transfer of technology.

11 (4) Provision of assistance and information to

12 veterans regarding procurement opportunities with

13 Federal, State, and local agencies, especially such

14 agencies funded in whole or in part with Federal

15 funds.

16 (5) Establishment of an information clearing17 house to collect and distribute information, including

18 by electronic means, on the assistance programs of

19 Federal, State, and local governments, and of the pri20 vate sector, including information on office locations,

21 key personnel, telephone numbers, mail and electronic

22 addresses, and contracting and subcontracting oppor23 tunities.

24 (6) Provision of Internet or other distance learn25 ing academic instruction for veterans in business sub-
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1 jects, including accounting, marketing, and business

2 fundamentals.

3 (7) Compilation of a list of small business con4 cerns owned and controlled by service-disabled vet5 erans that provide products or services that could be

6 procured by the United States and delivery of such

7 list to each department and agency of the United

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

9 electronic form and shall include the name and ad10 dress of each such small business concern and the

11 products or services that it provides.

12 SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT AS13 SISTANCE FOR MILITARY RESERVISTS’ SMALL

14 BUSINESSES.

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

16 (15 U.S.C. 637) is amended by adding at the end the fol17 lowing:

18 ‘‘(l) MANAGEMENT ASSISTANCE FOR SMALL BUSI19 NESSES AFFECTED BY MILITARY OPERATIONS.—The Ad20 ministration shall utilize, as appropriate, its entrepre21 neurial development and management assistance programs,

22 including programs involving State or private sector part23 ners, to provide business counseling and training to any

24 small business concern adversely affected by the deployment

25 of units of the Armed Forces of the United States in support
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1 of a period of military conflict (as defined in section

2 7(n)(1)).’’.

3 (b) ENHANCED PUBLICITY DURING OPERATION AL4 LIED FORCE.—For the duration of Operation Allied Force

5 and for 120 days thereafter, the Administration shall en6 hance its publicity of the availability of assistance provided

7 pursuant to the amendment made by this section, including

8 information regarding the appropriate local office at which

9 affected small businesses may seek such assistance.

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

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

12 Small Business Administration shall issue such guidelines

13 as the Administrator determines to be necessary to carry

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

15 TITLE IV—FINANCIAL

16 ASSISTANCE

17 SEC. 401. GENERAL BUSINESS LOAN PROGRAM.

18 (a) DEFINITION OF HANDICAPPED INDIVIDUAL.—Sec19 tion 3(f) of the Small Business Act (15 U.S.C. 632(f)) is

20 amended to read as follows:

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

22 ‘handicapped individual’ means an individual—

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

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

25 a permanent nature which in any way limits the se-
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1 lection of any type of employment for which the per2 son would otherwise be qualified or qualifiable; or

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

4 (b) AUTHORIZATION TO MAKE LOANS.—Section

5 7(a)(10) of the Small Business Act (15 U.S.C. 636(a)(10))

6 is amended—

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

8 and

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

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

11 SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERV12 ISTS.

13 (a) REPAYMENT DEFERRAL FOR ACTIVE DUTY RE14 SERVISTS.—Section 7 of the Small Business Act (15 U.S.C.

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

16 ‘‘(n) REPAYMENT DEFERRED FOR ACTIVE DUTY RE17 SERVISTS.—

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

19 ‘‘(A) ELIGIBLE RESERVIST.—The term ‘eli20 gible reservist’ means a member of a reserve com21 ponent of the Armed Forces ordered to active

22 duty during a period of military conflict.

23 ‘‘(B) ESSENTIAL EMPLOYEE.—The term ‘es24 sential employee’ means an individual who is

25 employed by a small business concern and whose
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1 managerial or technical expertise is critical to

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

3 business concern.

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

5 term ‘period of military conflict’ means—

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

7 Congress;

8 ‘‘(ii) a period of national emergency

9 declared by the Congress or by the Presi10 dent; or

11 ‘‘(iii) a period of a contingency oper12 ation, as defined in section 101(a) of title

13 10, United States Code.

14 ‘‘(D) QUALIFIED BORROWER.—The term

15 ‘qualified borrower’ means—

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

17 reservist and who received a direct loan

18 under subsection (a) or (b) before being or19 dered to active duty; or

20 ‘‘(ii) a small business concern that re21 ceived a direct loan under subsection (a) or

22 (b) before an eligible reservist, who is an es23 sential employee, was ordered to active

24 duty.

25 ‘‘(2) DEFERRAL OF DIRECT LOANS.—
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1 ‘‘(A) IN GENERAL.—The Administration

2 shall, upon written request, defer repayment of

3 principal and interest due on a direct loan made

4 under subsection (a) or (b), if such loan was in5 curred by a qualified borrower.

6 ‘‘(B) PERIOD OF DEFERRAL.—The period of

7 deferral for repayment under this paragraph

8 shall begin on the date on which the eligible re9 servist is ordered to active duty and shall termi10 nate on the date that is 180 days after the date

11 such eligible reservist is discharged or released

12 from active duty.

13 ‘‘(C) INTEREST RATE REDUCTION DURING

14 DEFERRAL.—Notwithstanding any other provi15 sion of law, during the period of deferral de16 scribed in subparagraph (B), the Administration

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

18 any loan qualifying for a deferral under this

19 paragraph.

20 ‘‘(3) DEFERRAL OF LOAN GUARANTEES AND

21 OTHER FINANCINGS.—The Administration shall—

22 ‘‘(A) encourage intermediaries participating

23 in the program under subsection (m) to defer re24 payment of a loan made with proceeds made

25 available under that subsection, if such loan was
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1 incurred by a small business concern that is eli2 gible to apply for assistance under subsection

3 (b)(3); and

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

5 of enactment of this subsection, establish guide6 lines to—

7 ‘‘(i) encourage lenders and other inter8 mediaries to defer repayment of, or provide

9 other relief relating to, loan guarantees

10 under subsection (a) and financings under

11 section 504 of the Small Business Invest12 ment Act of 1958 that were incurred by

13 small business concerns that are eligible to

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

15 and loan guarantees provided under sub16 section (m) if the intermediary provides re17 lief to a small business concern under this

18 paragraph; and

19 ‘‘(ii) implement a program to provide

20 for the deferral of repayment or other relief

21 to any intermediary providing relief to a

22 small business borrower under this para23 graph.’’.

24 (b) DISASTER LOAN ASSISTANCE FOR MILITARY RE25 SERVISTS’ SMALL BUSINESSES.—Section 7(b) of the Small
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1 Business Act (15 U.S.C. 636(b)) is amended by inserting

2 after the undesignated paragraph that begins with ‘‘Pro3 vided, That no loan’’, the following:

4 ‘‘(3)(A) In this paragraph—

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

6 individual who is employed by a small business

7 concern and whose managerial or technical ex8 pertise is critical to the successful day-to-day op9 erations of that small business concern;

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

11 has the meaning given the term in subsection

12 (n)(1); and

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

14 means an economic harm to a business concern

15 that results in the inability of the business

16 concern—

17 ‘‘(I) to meet its obligations as they ma18 ture;

19 ‘‘(II) to pay its ordinary and nec20 essary operating expenses; or

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

22 product or service ordinarily marketed, pro23 duced, or provided by the business concern.

24 ‘‘(B) The Administration may make such dis25 aster loans (either directly or in cooperation with
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1 banks or other lending institutions through agree2 ments to participate on an immediate or deferred

3 basis) to assist a small business concern that has suf4 fered or that is likely to suffer substantial economic

5 injury as the result of an essential employee of such

6 small business concern being ordered to active mili7 tary duty during a period of military conflict.

8 ‘‘(C) A small business concern described in sub9 paragraph (B) shall be eligible to apply for assistance

10 under this paragraph during the period beginning on

11 the date on which the essential employee is ordered to

12 active duty and ending on the date that is 90 days

13 after the date on which such essential employee is dis14 charged or released from active duty.

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

16 to this paragraph shall be made at the same interest

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

18 ‘‘(E) No loan may be made under this para19 graph, either directly or in cooperation with banks or

20 other lending institutions through agreements to par21 ticipate on an immediate or deferred basis, if the

22 total amount outstanding and committed to the bor23 rower under this subsection would exceed $1,500,000,

24 unless such applicant constitutes a major source of

25 employment in its surrounding area, as determined
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1 by the Administration, in which case the Administra2 tion, in its discretion, may waive the $1,500,000 lim3 itation.

4 ‘‘(F) For purposes of assistance under this para5 graph, no declaration of a disaster area shall be re6 quired.’’.

7 (c) ENHANCED PUBLICITY DURING OPERATION AL8 LIED FORCE.—For the duration of Operation Allied Force

9 and for 120 days thereafter, the Administration shall en10 hance its publicity of the availability of assistance provided

11 pursuant to the amendments made by this section, includ12 ing information regarding the appropriate local office at

13 which affected small businesses may seek such assistance.

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

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

16 Small Business Administration shall issue such guidelines

17 as the Administrator determines to be necessary to carry

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

19 (e) EFFECTIVE DATES.—

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section shall

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

23 (2) DISASTER LOANS.—The amendments made

24 by subsection (b) shall apply to economic injury suf25 fered or likely to be suffered as the result of a period
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1 of military conflict occurring or ending on or after

2 March 24, 1999.

3 SEC. 403. MICROLOAN PROGRAM.

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

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

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

7 ‘‘low-income,’’.

8 SEC. 404. DEFENSE ECONOMIC TRANSITION LOAN PRO9 GRAM.

10 Section 7(a)(21)(A)(ii) of the Small Business Act (15

11 U.S.C. 636(a)(21)(A)(ii)) is amended by inserting ‘‘or a

12 veteran’’ after ‘‘qualified individual’’.

13 SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.

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

15 Act of 1958 (15 U.S.C. 695(d)(3)) is amended—

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

17 and (G) as subparagraphs (F), (G), and (H), respec18 tively; and

19 (2) by inserting after subparagraph (D) the fol20 lowing:

21 ‘‘(E) expansion of small business concerns

22 owned and controlled by veterans, as defined in

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

24 632(q)), especially service-disabled veterans, as

25 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

3 or 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 amended by in16 serting ‘‘small business concerns owned and controlled by

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

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

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

20 SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.

21 (a) GOVERNMENT-WIDE PARTICIPATION GOALS.—Sec22 tion 15(g)(1) of the Small Business Act (15 U.S.C.

23 644(g)(1)) 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 3 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.—Section 15 of the

15 Small Business Act (15 U.S.C. 644(g)(2)) is amended—

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

17 business concerns owned and controlled by service-dis18 abled veterans,’’ after ‘‘small business concerns,’’; the

19 first place it appears;

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

21 business concerns owned and controlled by service-dis22 abled veterans,’’ after ‘‘small business concerns,’’ the

23 first place it appears; and

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

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

2 by’’.

3 TITLE VI—REPORTS AND DATA

4 COLLECTION

5 SEC. 601. REPORTING REQUIREMENTS.

6 (a) REPORTS TO SMALL BUSINESS ADMINISTRA7 TION.—Section 15(h)(1) of the Small Business Act (15

8 U.S.C. 644(h)(1)) is amended by inserting ‘‘small business

9 concerns owned and controlled by veterans (including serv10 ice-disabled veterans),’’ after ‘‘small business concerns,’’ the

11 first place it appears.

12 (b) REPORTS TO THE PRESIDENT AND THE CON13 GRESS.—Section 15(h)(2) of the Small Business Act (15

14 U.S.C. 644(h)(2)) is amended—

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

16 period at the end of first sentence; and

17 (2) in each of subparagraphs (A), (D), and (E),

18 by inserting ‘‘small business concerns owned and con19 trolled by service-disabled veterans,’’ after ‘‘small

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

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

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

23 Act of 1980 (15 U.S.C. 631b(e)) is amended—

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

25 semicolon;
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1 (2) in paragraph (2), by striking the period at

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

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

4 ‘‘(3) small business concerns owned and con5 trolled by veterans, as defined in section 3(q) of the

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

7 business concerns owned and controlled by service-dis8 abled veterans, as defined in such section 3(q).’’.

9 SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.

10 The Administrator of the Small Business Administra11 tion shall transmit annually to the Committees on Small

12 Business and Veterans Affairs of the House of Representa13 tives and the Senate a report on the needs of small business

14 concerns owned and controlled by veterans and small busi15 ness concerns owned and controlled by service-disabled vet16 erans, which shall include information on—

17 (1) the availability of Small Business Adminis18 tration programs for such small business concerns

19 and the degree of utilization of such programs by such

20 small business concerns during the preceding 12-

21 month period, including statistical information on

22 such utilization as compared to the small business

23 community as a whole;

24 (2) the percentage and dollar value of Federal

25 contracts awarded to such small business concerns
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1 during the preceding 12-month period, based on the

2 data collected pursuant to section 604(d); and

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

4 business concerns to the assistance made available by

5 the United States.

6 SEC. 604. DATA AND INFORMATION COLLECTION.

7 (a) INFORMATION ON FEDERAL PROCUREMENT PRAC8 TICES.—The Administrator of the Small Business Adminis9 tration shall, for each fiscal year—

10 (1) collect information concerning the procure11 ment practices and procedures of each department

12 and agency of the United States having procurement

13 authority;

14 (2) publish and disseminate such information to

15 procurement officers in all Federal agencies; and

16 (3) make such information available to any

17 small business concern requesting such information.

18 (b) IDENTIFICATION OF SMALL BUSINESS CONCERNS

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

20 Secretary of Veterans Affairs shall, in consultation with the

21 Assistant Secretary of Labor for Veterans’ Employment and

22 Training and the Administrator of the Small Business Ad23 ministration, identify small business concerns owned and

24 controlled by veterans in the United States. The Secretary

25 shall inform each small business concern identified under
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1 this paragraph that information on Federal procurement

2 is available from the Administrator.

3 (c) SELF-EMPLOYMENT OPPORTUNITIES.—The Sec4 retary of Labor, the Secretary of Veterans Affairs, and the

5 Administrator of the Small Business Administration shall

6 enter into a memorandum of understanding to provide for

7 coordination of vocational rehabilitation services, technical

8 and managerial assistance, and financial assistance to vet9 erans, including service-disabled veterans, seeking to employ

10 themselves by forming or expanding small business con11 cerns. The memorandum of understanding shall include rec12 ommendations for expanding existing programs or estab13 lishing new programs to provide such services or assistance

14 to such veterans.

15 (d) DATA COLLECTION REQUIRED.—The Federal Pro16 curement Data System described in section 6(d)(4)(A) of

17 the Office of Federal Procurement Policy Act (41 U.S.C.

18 405(d)(4)(A)) shall be modified to collect data regarding the

19 percentage and dollar value of prime contracts and sub20 contracts awarded to small business concerns owned and

21 controlled by veterans and small business concerns owned

22 and controlled by service-disabled veterans.
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1 TITLE VII—MISCELLANEOUS

2 PROVISIONS

3 SEC. 701. ADMINISTRATOR’S ORDER.

4 The Administrator of the Small Business Administra5 tion shall strengthen and reissue the Administrator’s order

6 regarding the third sentence of section 4(b)(1) of the Small

7 Business Act (15 U.S.C. 633(b)(1)), relating to non8 discrimination and special considerations for veterans, and

9 take all necessary steps to ensure that its provisions are

10 fully and vigorously implemented.

11 SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF

12 ADVOCACY.

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

14 is amended—

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

16 end;

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

18 the end and inserting ‘‘; and’’; and

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

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

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

22 to assist small business concerns owned and controlled

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

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

25 concerns owned and controlled by serviced-disabled
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1 veterans, as defined in such section 3(q), and to pro2 vide statistical information on the utilization of such

3 programs by such small business concerns, and to

4 make appropriate recommendations to the Adminis5 trator of the Small Business Administration and to

6 the Congress in order to promote the establishment

7 and growth of those small business concerns.’’.

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

9 (a) IN GENERAL.—The Comptroller General shall con10 duct a study on whether there would exist any additional

11 risk or cost to the United States if—

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

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

14 made for the acquisition or construction of fixed as15 sets used in a trade or business rather than for the

16 construction or purchase of residential buildings; and

17 (2) such loans for acquisition or construction of

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

19 and the terms regarding eligibility, loan limits, inter20 est, fees, and down payment were the same as for

21 other loans guaranteed under such chapter.

22 (b) REPORT.—

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

24 the enactment of this Act, the Comptroller General

25 shall transmit the report described in subsection (a)
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1 to the Committees on Veterans’ Affairs and the Com2 mittees on Small Business of the House of Represent3 atives and the Senate.

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

5 by paragraph (1) shall specifically address the fol6 lowing:

7 (A) With respect to the change in the vet8 erans’ housing loan program contemplated under

9 subsection (a):

10 (i) The increase or decrease in admin11 istrative costs to the Department of Veterans

12 Affairs.

13 (ii) The increase or decrease in the de14 gree of exposure of the United States as the

15 guarantor of the loans.

16 (iii) The increase or decrease in the

17 Federal subsidy rate that would be possible.

18 (iv) Any increase in the interest rate

19 or fees charged to the borrower or lender

20 that would be required to maintain present

21 program costs.

22 (B) Information regarding the delinquency

23 rates, default rates, length of time required for

24 recovery after default, for fixed-asset business

25 loans, of a size and duration comparable to those
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1 contemplated under subsection (a), made avail2 able in the private market or under section 503

3 of the Small Business Investment Act of 1958.