I

106TH CONGRESS

1ST SESSION H. R. 1568

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

small businesses, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 27, 1999

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

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

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

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

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

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

A BILL

To provide technical, financial, and procurement assistance

to veteran owned small businesses, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Veterans Entrepre5 neurship and Small Business Development Act of 1999’’.

6 SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.

Sec. 2. Table of contents.
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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.

TITLE IV—FINANCIAL ASSISTANCE

Sec. 401. General business loan program.

Sec. 402. Loans to individuals called to active duty in the Armed Forces.

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.—For

12 the purposes of this Act the following definitions shall

13 apply:

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

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

16 disability that is service-connected (as defined in sec17 tion 101(16) of title 38, United States Code).

18 ‘‘(2) SMALL BUSINESS CONCERN OWNED AND

19 CONTROLLED BY SERVICE-DISABLED VETERANS.—

20 The term ‘small business concern owned and con21 trolled by service-disabled veterans’ means a small

22 business concern—

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

24 owned by 1 or more service-disabled veterans

25 or, in the case of any publicly owned business,
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1 not less than 51 percent of the stock of which

2 is owned by 1 or more service-disabled veterans;

3 and

4 ‘‘(B) the management and daily business

5 operations of which are controlled by 1 or more

6 service-disabled veterans or, in the case of a

7 veteran with permanent and severe disability,

8 the spouse or permanent caregiver of such vet9 eran.

10 ‘‘(3) SMALL BUSINESS CONCERN OWNED AND

11 CONTROLLED BY VETERANS.—The term ‘small busi12 ness concern owned and controlled by veterans’

13 means a small business concern—

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

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

16 any publicly owned business, not less than 51

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

18 more veterans; and

19 ‘‘(B) the management and daily business

20 operations of which are controlled by 1 or more

21 veterans.

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

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

24 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, shall 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 5th sentence, by striking ‘‘four Asso11 ciate Administrators’’ and inserting ‘‘five Associate

12 Administrators’’; and

13 (2) by inserting after the 5th 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 known as the National Veterans

10 Business Development Corporation (in this section re11 ferred 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 work with and organize public and pri20 vate resources, including but not limited to those of

21 the Small Business Administration, the Department

22 of Veterans Affairs, the Department of Labor, the

23 Department of Commerce, the Department of De24 fense, the Service Corps of Retired Executives (de25 scribed in section 8(b)(1)(B) of this Act), the Small

26 Business Development Centers (described in section
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1 21 of this Act), and the business development staffs

2 of each department and agency of the United States,

3 to assist veterans, including service-disabled vet4 erans, with the formation and expansion of small

5 business concerns.

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 9 voting members and 3 nonvoting ex

10 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) 1 from a list of individuals nominated

16 by the chairman of the Committee on Small

17 Business of the House of Representatives.

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

19 by the chairman of the Committee on Small

20 Business of the Senate.

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

22 by the ranking minority member of the Com23 mittee on Small Business of the House of Rep24 resentatives.
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1 ‘‘(D) 1 from a list of individuals nominated

2 by the ranking minority members of the Com3 mittee on Small Business of the Senate.

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

5 by the chairman of the Committee on Veterans’

6 Affairs of the House of Representatives.

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

8 by the chairman of the Committee on Veterans’

9 Affairs of the Senate.

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

11 by the ranking minority member of the Com12 mittee on Veterans’ Affairs of the House of

13 Representatives.

14 ‘‘(H) 1 from a list of individuals nomi15 nated the ranking minority member of the

16 Committee on Veterans’ Affairs of the Senate.

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

18 ‘‘(3) EX OFFICIO MEMBERS.—The Adminis19 trator of the Small Business Administration, the

20 Secretary of Defense, and the Secretary of Veterans

21 Affairs shall serve as the nonvoting ex officio mem22 bers of the Board of Directors.

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

24 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) 3 shall be for a term of 2 years;

12 and

13 ‘‘(ii) 3 shall be for a term of 4 years.

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

15 the Board of Directors appointed to fill a va16 cancy occurring before the expiration of the

17 term for which the member’s predecessor was

18 appointed shall be appointed only for the re19 mainder of the term. A member may serve after

20 the expiration of that member’s term until a

21 successor has taken office.

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

23 of Directors shall be filled in the manner in which

24 the original appointment was made. In the case of

25 a vacancy in the office of the Administrator of the
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1 Small Business Administration or the Secretary of

2 Veterans Affairs, and pending the appointment of a

3 successor, an acting appointee for such vacancy may

4 serve as an ex officio member.

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

6 voting member of the Board of Directors may be an

7 officer or employee of the United States while serv8 ing as a member of the Board of Directors or during

9 the two-year period preceding such service.

10 ‘‘(8) IMPARTIALITY AND NONDISCRIMINA11 TION.—The Board of Directors shall administer the

12 affairs of the Corporation fairly and impartially and

13 without discrimination.

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

15 Board of Directors shall prescribe the manner in

16 which the obligations of the Corporation may be in17 curred and in which its expenses shall be allowed

18 and paid.

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

20 Board of Directors shall constitute a quorum, but a

21 lesser number may hold hearings.

22 ‘‘(d) CORPORATE POWERS.—

23 ‘‘(1) IN GENERAL.—On October 1, 1999 the

24 Corporation shall become a body corporate and as

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

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

3 an Act of Congress.

4 ‘‘(C) To make contracts or grants.

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

6 defend against lawsuits in State or Federal

7 court.

8 ‘‘(E) To appoint, through the actions of its

9 Board of Directors, officers and employees of

10 the Corporation, to define their duties and re11 sponsibilities, fix their compensations, and to

12 dismiss at will such officers or employees.

13 ‘‘(F) To prescribe, through the actions of

14 its Board of Directors, bylaws not inconsistent

15 with Federal law and the law of the State of in16 corporation, regulating the manner in which its

17 general business may be conducted and the

18 manner in which the privileges granted to it by

19 law may be exercised.

20 ‘‘(G) To exercise, through the actions of its

21 Board of Directors or duly authorized officers,

22 all powers specifically granted by the provisions

23 of this section, and such incidental powers as

24 shall be necessary.
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1 ‘‘(H) To solicit, receive, and disburse funds

2 from private, Federal, State and local organiza3 tions.

4 ‘‘(I) To accept and employ or dispose of in

5 furtherance of the purposes of this section any

6 money or property, real, personal, or mixed,

7 tangible or intangible, received by gift, devise,

8 bequest, or otherwise.

9 ‘‘(J) To accept voluntary and uncompen10 sated services.

11 ‘‘(e) CORPORATE FUNDS.—

12 ‘‘(1) DEPOSIT OF FUNDS.—The Board of Di13 rectors shall deposit all funds of the Corporation in

14 federally chartered and insured depository institu15 tions until such funds are disbursed under para16 graph (2).

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

18 Corporation may be disbursed only for purposes that

19 are—

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

21 by a recorded vote with a quorum present; and

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

23 the Corporation as specified in subsection (b).

24 ‘‘(f) NETWORK OF INFORMATION AND ASSISTANCE

25 CENTERS.—In carrying out the purpose described in sub-
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1 section (b), the Corporation shall establish and maintain

2 a network of information and assistance centers for use

3 by veterans and the public.

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

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

6 to the President and Congress describing the activities and

7 accomplishments of the Corporation for the preceding year

8 and the Corporation’s findings regarding the efforts of

9 Federal, State and private organizations to assist veterans

10 in the formation and expansion of small business concerns.

11 ‘‘(h) USE OF MAILS.—The Corporation may use the

12 United States mails in the same manner and under the

13 same conditions as the departments and agencies of the

14 United States.

15 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—

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

17 appropriated to the Corporation to carry out this

18 section the following amounts:

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

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

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

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

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

24 institute and implement a plan to raise private funds

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

2 AFFAIRS.

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

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

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

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

7 source of advice and policy recommendations to—

8 (1) the Administrator of the Small Business

9 Administration (in this section referred to as the

10 ‘‘Administrator’’);

11 (2) the Associate Administrator for Veterans

12 Business Development of the Small Business Admin13 istration;

14 (3) Congress;

15 (4) the President; and

16 (5) other United States policymakers.

17 (b) MEMBERSHIP.—

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

19 composed of 15 members, of whom—

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

21 small business concerns (within the meaning of

22 the term under section 3 of the Small Business

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

24 (B) 7 shall be representatives of veterans

25 organizations.

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

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

4 (B) INITIAL APPOINTMENTS.—Not later

5 than 60 days after the date of enactment of

6 this Act, the Administrator shall appoint the

7 initial members of the Committee.

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

9 members of the Committee shall be of the same po10 litical party as the President.

11 (4) PROHIBITION ON FEDERAL EMPLOY12 MENT.—

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

14 subsection (B), no member of the Committee

15 may serve as an officer or employee of the

16 United States.

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

19 employee of the United States after the date of

20 the member’s appointment to the Committee

21 may continue to serve on the Committee for not

22 more than 30 days after such acceptance.

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

3 of the Committee shall be 3 years.

4 (B) TERMS OF INITIAL APPOINTEES.—As

5 designated by the Administrator at the time of

6 appointment, of the members first appointed—

7 (i) 6 shall be appointed for a term of

8 4 years; and

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

10 5 years.

11 (6) VACANCIES.—The Administrator shall fill

12 any vacancies on the membership of the Committee

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

14 vacancy occurs.

15 (7) CHAIRPERSON.—

16 (A) IN GENERAL.—The members of the

17 Committee shall elect one of the members to be

18 Chairperson of the Committee.

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

21 Chairperson of the Committee shall be filled by

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

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

2 the following:

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

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

7 capital and credit and to access markets.

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

10 small business concerns owned and controlled by vet11 erans.

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

13 operations of the departments and agencies of the

14 United States that may contribute to the formation

15 and growth of small business concerns owned and

16 controlled by veterans.

17 (4) Develop and promote initiatives, policies,

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

20 (5) In cooperation with the National Veterans

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

23 public-private sector efforts to facilitate growth and

24 development of small business concerns owned and

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

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

3 Committee may hold such hearings, sit and act at

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

7 (2) INFORMATION FROM FEDERAL AGENCIES.—

8 Upon request of the Chairperson of the Committee,

9 the head of any department or agency of the United

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

12 carry out its duties.

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

14 the United States mails in the same manner and

15 under the same conditions as other departments and

16 agencies of the United States.

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

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

20 (e) MEETINGS.—

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

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

23 Chairperson or at the request of the Administrator.

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

3 suitable meeting facilities and such administrative

4 support as may be necessary for each full meeting

5 of the Committee.

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

7 time to time, establish temporary task groups as

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

9 (f) COMPENSATION AND EXPENSES.—

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

12 service to the Committee.

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

15 expenses in accordance with section 5703 of title 5,

16 United States Code.

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

18 of each fiscal year beginning after the date of enactment

19 of this section, the Committee shall transmit to Congress

20 and the President a report describing the activities of the

21 Committee and any recommendations developed by the

22 Committee for the promotion of small business concerns

23 owned and controlled by veterans.
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1 TITLE III—TECHNICAL

2 ASSISTANCE

3 SEC. 301. SCORE PROGRAM.

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

5 Business Administration shall enter into a memorandum

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

10 (1) The appointment by SCORE in its national

11 office of an individual to act as National Veterans

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

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

16 training regarding entrepreneurship to veterans

17 through the chapters of SCORE throughout the

18 United States.

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

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

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

4 report published by the Administrator under section

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

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

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

8 SCORE such resources as the Administrator determines

9 necessary for SCORE to carry out the requirements of the

10 memorandum of understanding specified in paragraph (1).

11 SEC. 302. ENTREPRENEURIAL ASSISTANCE.

12 Not later than 180 days after the date of enactment

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

15 head of the association formed pursuant to section

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

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

20 Business Development Centers (described in section 21 of

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

22 the Department of Veterans Affairs. Such assistance shall

23 include the following:

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

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

3 concerns by veterans.

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

7 concerns.

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

11 promotion of exports, and the transfer of technology.

12 (4) Provision of assistance and information to

13 veterans regarding procurement opportunities with

14 Federal, State, and local agencies, especially such

15 agencies funded in whole or in part with Federal

16 funds.

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

19 by electronic means, on the assistance programs of

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

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

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

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

4 business fundamentals.

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

8 procured by the United States and delivery of such

9 list to each department and agency of the United

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

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

13 products or services that it provides.

14 TITLE IV—FINANCIAL

15 ASSISTANCE

16 SEC. 401. GENERAL BUSINESS LOAN PROGRAM.

17 (a) DEFINITION OF HANDICAPPED INDIVIDUAL.—

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

19 is amended to read as follows:

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

21 ‘handicapped individual’ means an individual—

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

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

24 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.

6 636(a)(10)) is amended by inserting, ‘‘, including service7 disabled veterans,’’ after ‘‘handicapped individual’’.

8 SEC. 402. LOANS TO INDIVIDUALS CALLED TO ACTIVE DUTY

9 IN THE ARMED FORCES.

10 Section 7(b) of the Small Business Act (15 U.S.C.

11 636(b)) is amended by inserting after the undesignated

12 paragraph that begins with ‘‘Provided, That no loan’’ the

13 following:

14 ‘‘(3) The Administration is empowered to make

15 loans to qualified individuals to assist with potential

16 losses and disruptions caused by mobilization or the

17 return to active duty in the Armed Forces. For the

18 purposes of this paragraph, qualified individuals are

19 individuals—

20 ‘‘(A) who are self-employed or who are

21 owners of small business concerns; and

22 ‘‘(B) who are called to active duty under

23 section 688, 12301, 12302, or 12303 of title

24 10, United States Code.
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1 Loans made under this paragraph shall have the

2 same terms and rates of interest as loans made

3 under paragraph (2).’’.

4 SEC. 403. MICROLOAN PROGRAM.

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

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

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

8 after ‘‘low-income,’’.

9 SEC. 404. DELTA LOAN PROGRAM.

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

11 636(a)(21)(A)) is amended in subclause (ii) by inserting

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

13 SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.

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

15 Act (15 U.S.C. 696(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

24 U.S.C. 632(q)), especially service-disabled vet25 erans, as 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

7 by service-disabled veterans,’’ after ‘‘small business con8 cerns,’’ the first place it appears in the first and second

9 sentences.

10 (b) CONTRACT CLAUSE.—The contract clause speci11 fied in section 8(d)(3) of the Small Business Act (15

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

13 (1) Subparagraph (A) of such clause is amend14 ed by inserting ‘‘small business concerns owned and

15 controlled by veterans,’’ after ‘‘small business con16 cerns,’’ the first place it appears in the first and sec17 ond sentences.

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

19 are redesignated as subparagraphs (F) and (G), re20 spectively, and the following new subparagraph is in21 serted after subparagraph (D) of such clause:

22 ‘‘(E) The term ‘small business concern

23 owned and controlled by veterans’ shall mean a

24 small business concern—
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1 ‘‘(i) which is at least 51 per centum

2 owned by one or more eligible veterans; or,

3 in the case of any publicly owned business,

4 at least 51 per centum of the stock of

5 which is owned by one or more veterans;

6 and

7 ‘‘(ii) whose management and daily

8 business operations are controlled by such

9 veterans. The contractor shall treat as vet10 erans all individuals who are veterans with11 in the meaning of the term under section

12 3(q) of the Small Business Act.’’.

13 (3) Subparagraph (F) of such clause, as redes14 ignated by paragraph (2) of this subsection, is

15 amended by inserting ‘‘small business concern owned

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

17 concern,’’ the first place it appears.

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

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

20 amended by inserting ‘‘small business concerns owned and

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

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

23 (6)(A), (6)(C), (6)(F), and (10)(B).
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1 SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.

2 (a) GOVERNMENT-WIDE PARTICIPATION GOALS.—

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

4 (15 U.S.C. 644(g)(1)) is amended—

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

6 business concerns owned and controlled by service

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

8 the first place it appears;

9 (2) by inserting after the second sentence the

10 following:

11 ‘‘The Government-wide goal for participation by

12 small business concerns owned and controlled by

13 service-disabled veterans shall be established at not

14 less than 5 percent of the total value of all prime

15 contract and subcontract awards for each fiscal

16 year.’’; and

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

18 ‘‘small business concerns owned and controlled

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

20 concerns,’’ the first place it appears.

21 (b) AGENCY PARTICIPATION GOALS.—Subsection

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

23 644) is amended—

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

25 business concerns owned and controlled by service-
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1 disabled veterans,’’ after ‘‘small business concerns,’’;

2 the first place it appears;

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

4 business concerns owned and controlled by service5 disabled veterans,’’ after ‘‘small business concerns,’’

6 the first place it appears; and

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

8 business concerns owned and controlled by service9 disabled veterans, by’’ after ‘‘including participation

10 by’’.

11 TITLE VI—REPORTS AND DATA

12 COLLECTION

13 SEC. 601. REPORTING REQUIREMENTS.

14 (a) REPORTS TO SMALL BUSINESS ADMINISTRA15 TION.—

16 Subsection (h)(1) of section 15 of the Small Business

17 Act (15 U.S.C. 644(h)(1)) is amended by inserting ‘‘small

18 business concerns owned and controlled by veterans (in19 cluding service-disabled veterans),’’ after ‘‘small business

20 concerns,’’ the first place it appears.

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

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

23 (15 U.S.C. 644(h)(2)) is amended—

24 (1) by inserting ‘‘and Congress’’ before the pe25 riod at the end of first sentence; and
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1 (2) in subparagraphs (A), (D), and (E), by in2 serting ‘‘small business concerns owned and con3 trolled by service-disabled veterans,’’ after ‘‘small

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

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

6 Section 303(e) of the Small Business Economic Pol7 icy Act of 1980 (15 U.S.C. 631b(e)) is amended—

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

9 the semicolon;

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

11 the end and inserting ‘‘; and’’; and

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

13 ‘‘(3) small business concerns owned and con14 trolled by veterans, as defined in section 3(q) of the

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

16 business concerns owned and controlled by service17 disabled veterans, as defined in such section 3(q).’’.

18 SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.

19 The Administrator of the Small Business Administra20 tion shall transmit annually to the Committees on Small

21 Business and Veterans Affairs of the House of Represent22 atives and the Senate a report on the needs of small busi23 ness concerns owned and controlled by veterans and small

24 business concerns owned and controlled by service-disabled

25 veterans, which shall include information on—
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1 (1) the availability of Small Business Adminis2 tration programs for such small business concerns

3 and the degree of utilization of such programs by

4 such small business concerns during the preceding

5 12-month period;

6 (2) the percentage and dollar value of Federal

7 contracts awarded to such small business concerns

8 during the preceding 12-month period; and

9 (3) proposals to improve the access of such

10 small business concerns to the assistance made avail11 able by the United States.

12 SEC. 604. DATA AND INFORMATION COLLECTION.

13 (a) INFORMATION ON FEDERAL PROCUREMENT

14 PRACTICES.—The Administrator of the Small Business

15 Administration shall, for each fiscal year—

16 (1) collect information concerning the procure17 ment practices and procedures of each department

18 and agency of the United States having procurement

19 authority; and

20 (2) make such information available to any

21 small business concern requesting such information.

22 (b) IDENTIFICATION OF SMALL BUSINESS CONCERNS

23 OWNED BY ELIGIBLE VETERANS.—Each Fiscal year the

24 Secretary of Veterans Affairs shall, in consultation with

25 the Assistant Secretary of Labor for Veterans’ Employ-
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1 ment and Training and the Administrator of the Small

2 Business Administration, identify small business concerns

3 owned and controlled by veterans in the United States.

4 The Secretary shall inform each small business concern

5 identified under this paragraph that information on Fed6 eral procurement is available from the Administrator.

7 (c) SELF-EMPLOYMENT OPPORTUNITIES.—The Sec8 retary of Labor, the Secretary of Veterans Affairs, and

9 the Administrator of the Small Business Administration

10 shall enter into a memorandum of understanding to pro11 vide for coordination of vocational rehabilitation services,

12 technical and managerial assistance, and financial assist13 ance to veterans, including service-disabled veterans, seek14 ing to employ themselves by forming or expanding small

15 business concerns. The memorandum of understanding

16 shall include recommendations for expanding existing pro17 grams or establishing new programs to provide such serv18 ices or assistance to such veterans.

19 TITLE VII—MISCELLANEOUS

20 PROVISIONS

21 SEC. 701. ADMINISTRATOR’S ORDER.

22 The Administrator of the Small Business Administra23 tion shall strengthen and reissue the Administrator’s order

24 regarding the 3rd sentence of section 4(b)(1) of the Small

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

2 take all necessary steps to ensure that its provisions are

3 fully and vigorously implemented.

4 SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF

5 ADVOCACY.

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

7 is amended—

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

9 end;

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

11 the end and inserting ‘‘; and’’; and

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

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

14 and agency of the United States, and of private in15 dustry, to assist small business concerns owned and

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

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

18 small business concerns owned and controlled by

19 serviced-disabled veterans, as defined in such section

20 3(q), and make appropriate recommendations to the

21 Administrator of the Small Business Administration

22 and to Congress in order to promote the establish23 ment and growth of those small business concerns.’’.
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1 SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.

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

3 conduct a study on whether there would exist any addi4 tional risk or cost to the United States if—

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

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

7 were made for the acquisition or construction of

8 fixed assets used in a trade or business rather than

9 for the construction or purchase of residential build10 ings; and

11 (2) such loans for acquisition or construction of

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

13 years and the terms regarding eligibility, loan limits,

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

15 for other loans guaranteed under such chapter.

16 (b) REPORT.—

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

18 after the enactment of this Act, the Comptroller

19 General shall transmit the report described in sub20 section (a) to the Committees on Veterans’ Affairs

21 and the Committees on Small Business of the House

22 of Representatives and the Senate.

23 (2) CONTENTS OF REPORT.—The report re24 quired by paragraph (1) shall specifically address

25 the following:
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1 (A) With respect to the change in the vet2 erans’ housing loan program contemplated

3 under subsection (a):

4 (i) The increase or decrease in admin5 istrative costs to the Department of Vet6 erans Affairs.

7 (ii) The increase or decrease in the

8 degree of exposure of the United States as

9 the guarantor of the loans.

10 (iii) The increase or decrease in the

11 Federal subsidy rate that would be pos12 sible.

13 (iv) Any increase in the interest rate

14 or fees charged to the borrower or lender

15 that would be required to maintain present

16 program costs.

17 (B) Information regarding the delinquency

18 rates, default rates, length of time required for re19 covery after default, for fixed-asset business loans,

20 of a size and duration comparable to those con21 templated under subsection (a), made available in

22 the private market or under section 503 of the Small

23 Business Investment Act.

Æ