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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1568 Enrolled Bill (ENR)]

        H.R.1568

                       One Hundred Sixth Congress

                                 of the

                        United States of America

                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
   the sixth day of January, one thousand nine hundred and ninety-nine

                                 An Act

 
 To provide technical, financial, and procurement assistance to veteran 
             owned small businesses, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Entrepreneurship and Small 
Business Development Act of 1999''.

SEC. 2. TABLE OF CONTENTS.

    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.

                     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.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. FINDINGS.

    Congress finds the following:
        (1) Veterans of the United States Armed Forces have been and 
    continue to be vital to the small business enterprises of the 
    United States.
        (2) In serving the United States, veterans often faced great 
    risks to preserve the American dream of freedom and prosperity.
        (3) The United States has done too little to assist veterans, 
    particularly service-disabled veterans, in playing a greater role 
    in the economy of the United States by forming and expanding small 
    business enterprises.
        (4) Medical advances and new medical technologies have made it 
    possible for service-disabled veterans to play a much more active 
    role in the formation and expansion of small business enterprises 
    in the United States.
        (5) The United States must provide additional assistance and 
    support to veterans to better equip them to form and expand small 
    business enterprises, thereby enabling them to realize the American 
    dream that they fought to protect.

SEC. 102. PURPOSE.

    The purpose of this Act is to expand existing and establish new 
assistance programs for veterans who own or operate small businesses. 
This Act accomplishes this purpose by--
        (1) expanding the eligibility for certain small business 
    assistance programs to include veterans;
        (2) directing certain departments and agencies of the United 
    States to take actions that enhance small business assistance to 
    veterans; and
        (3) establishing new institutions to provide small business 
    assistance to veterans or to support the institutions that provide 
    such assistance.

SEC. 103. DEFINITIONS.

    (a) Small Business Act.--Section 3 of the Small Business Act (15 
U.S.C. 632) is amended by adding at the end the following:
    ``(q) Definitions Relating to Veterans.--In this Act, the following 
definitions apply:
        ``(1) Service-disabled veteran.--The term `service-disabled 
    veteran' means a veteran with a disability that is service-
    connected (as defined in section 101(16) of title 38, United States 
    Code).
        ``(2) Small business concern owned and controlled by service-
    disabled veterans.--The term `small business concern owned and 
    controlled by service-disabled veterans' means a small business 
    concern--
            ``(A) not less than 51 percent of which is owned by one or 
        more service-disabled veterans or, in the case of any publicly 
        owned business, not less than 51 percent of the stock of which 
        is owned by one or more service-disabled veterans; and
            ``(B) the management and daily business operations of which 
        are controlled by one or more service-disabled veterans or, in 
        the case of a veteran with permanent and severe disability, the 
        spouse or permanent caregiver of such veteran.
        ``(3) Small business concern owned and controlled by 
    veterans.--The term `small business concern owned and controlled by 
    veterans' means a small business concern--
            ``(A) not less than 51 percent of which is owned by one or 
        more veterans or, in the case of any publicly owned business, 
        not less than 51 percent of the stock of which is owned by one 
        or more veterans; and
            ``(B) the management and daily business operations of which 
        are controlled by one or more veterans.
        ``(4) Veteran.--The term `veteran' has the meaning given the 
    term in section 101(2) of title 38, United States Code.''.
    (b) Applicability to This Act.--In this Act, the definitions 
contained in section 3(q) of the Small Business Act, as added by this 
section, apply.

                TITLE II--VETERANS BUSINESS DEVELOPMENT

SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE SMALL BUSINESS 
              ADMINISTRATION.

    (a) In General.--Section 4(b)(1) of the Small Business Act (15 
U.S.C. 633(b)(1)) is amended--
        (1) in the fifth sentence, by striking ``four Associate 
    Administrators'' and inserting ``five Associate Administrators''; 
    and
        (2) by inserting after the fifth sentence the following: ``One 
    such Associate Administrator shall be the Associate Administrator 
    for Veterans Business Development, who shall administer the Office 
    of Veterans Business Development established under section 32.''.
    (b) Office of Veterans Business Development; Associate 
Administrator.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--
        (1) by redesignating section 32 as section 34; and
        (2) by inserting after section 31 the following:

``SEC. 32. VETERANS PROGRAMS.

    ``(a) Office of Veterans Business Development.--There is 
established in the Administration an Office of Veterans Business 
Development, which shall be administered by the Associate Administrator 
for Veterans Business Development (in this section referred to as the 
`Associate Administrator') appointed under section 4(b)(1).
    ``(b) Associate Administrator for Veterans Business Development.--
The Associate Administrator--
        ``(1) shall be an appointee in the Senior Executive Service;
        ``(2) shall be responsible for the formulation, execution, and 
    promotion of policies and programs of the Administration that 
    provide assistance to small business concerns owned and controlled 
    by veterans and small business concerns owned and controlled by 
    service-disabled veterans. The Associate Administrator shall act as 
    an ombudsman for full consideration of veterans in all programs of 
    the Administration; and
        ``(3) shall report to and be responsible directly to the 
    Administrator.''.

SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended by inserting after section 32 (as added by this Act) the 
following:

``SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

    ``(a) Establishment.--There is established a federally chartered 
corporation to be known as the National Veterans Business Development 
Corporation (in this section referred to as the `Corporation') which 
shall be incorporated under the laws of the District of Columbia and 
which shall have the powers granted in this section.
    ``(b) Purposes of the Corporation.--The purposes of the 
Corporation shall be--
        ``(1) to expand the provision of and improve access to 
    technical assistance regarding entrepreneurship for the Nation's 
    veterans; and
        ``(2) to assist veterans, including service-disabled veterans, 
    with the formation and expansion of small business concerns by 
    working with and organizing public and private resources, including 
    those of the Small Business Administration, the Department of 
    Veterans Affairs, the Department of Labor, the Department of 
    Commerce, the Department of Defense, the Service Corps of Retired 
    Executives (described in section 8(b)(1)(B) of this Act), the Small 
    Business Development Centers (described in section 21 of this Act), 
    and the business development staffs of each department and agency 
    of the United States.
    ``(c) Board of Directors.--
        ``(1) In general.--The management of the Corporation shall be 
    vested in a Board of Directors composed of nine voting members and 
    three nonvoting ex officio members.
        ``(2) Appointment of voting members.--The President shall, 
    after considering recommendations which shall be proposed by the 
    Chairmen and Ranking Members of the Committees on Small Business 
    and the Committees on Veterans Affairs of the House of 
    Representatives and the Senate, appoint United States citizens to 
    be voting members of the Board, not more than five of whom shall be 
    members of the same political party.
        ``(3) Ex officio members.--The Administrator of the Small 
    Business Administration, the Secretary of Defense, and the 
    Secretary of Veterans Affairs shall serve as the nonvoting ex 
    officio members of the Board of Directors.
        ``(4) Initial appointments.--The initial members of the Board 
    of Directors shall be appointed not later than 60 days after the 
    date of enactment of this Act.
        ``(5) Chairperson.--The members of the Board of Directors 
    appointed under paragraph (2) shall elect one such member to serve 
    as chairperson of the Board of Directors for a term of 2 years.
        ``(6) Terms of appointed members.--
            ``(A) In general.--Each member of the Board of Directors 
        appointed under paragraph (2) shall serve a term of 6 years, 
        except as provided in subparagraph (B).
            ``(B) Terms of initial appointees.--As designated by the 
        President at the time of appointment, of the members first 
        appointed--
                ``(i) three shall be for a term of 2 years; and
                ``(ii) three shall be for a term of 4 years.
            ``(C) Unexpired terms.--Any member of the Board of 
        Directors appointed to fill a vacancy occurring before the 
        expiration of the term for which the member's predecessor was 
        appointed shall be appointed only for the remainder of the 
        term. A member may serve after the expiration of that member's 
        term until a successor has taken office.
        ``(7) Vacancies.--Any vacancy on the Board of Directors shall 
    be filled in the manner in which the original appointment was made. 
    In the case of a vacancy in the office of the Administrator of the 
    Small Business Administration or the Secretary of Veterans Affairs, 
    and pending the appointment of a successor, an acting appointee for 
    such vacancy may serve as an ex officio member.
        ``(8) Ineligibility for other offices.--No voting member of the 
    Board of Directors may be an officer or employee of the United 
    States while serving as a member of the Board of Directors or 
    during the 2-year period preceding such service.
        ``(9) Impartiality and nondiscrimination.--The Board of 
    Directors shall administer the affairs of the Corporation fairly 
    and impartially and without discrimination.
        ``(10) Obligations and expenses.--The Board of Directors shall 
    prescribe the manner in which the obligations of the Corporation 
    may be incurred and in which its expenses shall be allowed and 
    paid.
        ``(11) Quorum.--Five voting members of the Board of Directors 
    shall constitute a quorum, but a lesser number may hold hearings.
    ``(d) Corporate Powers.--On October 1, 1999, the Corporation shall 
become a body corporate and as such shall have the authority to do the 
following:
        ``(1) To adopt and use a corporate seal.
        ``(2) To have succession until dissolved by an Act of 
    Congress.
        ``(3) To make contracts or grants.
        ``(4) To sue and be sued, and to file and defend against 
    lawsuits in State or Federal court.
        ``(5) To appoint, through the actions of its Board of 
    Directors, officers and employees of the Corporation, to define 
    their duties and responsibilities, fix their compensations, and to 
    dismiss at will such officers or employees.
        ``(6) To prescribe, through the actions of its Board of 
    Directors, bylaws not inconsistent with Federal law and the law of 
    the State of incorporation, regulating the manner in which its 
    general business may be conducted and the manner in which the 
    privileges granted to it by law may be exercised.
        ``(7) To exercise, through the actions of its Board of 
    Directors or duly authorized officers, all powers specifically 
    granted by the provisions of this section, and such incidental 
    powers as shall be necessary.
        ``(8) To solicit, receive, and disburse funds from private, 
    Federal, State and local organizations.
        ``(9) To accept and employ or dispose of in furtherance of the 
    purposes of this section any money or property, real, personal, or 
    mixed, tangible or intangible, received by gift, devise, bequest, 
    or otherwise.
        ``(10) To accept voluntary and uncompensated services.
    ``(e) Corporate Funds.--
        ``(1) Deposit of funds.--The Board of Directors shall deposit 
    all funds of the Corporation in federally chartered and insured 
    depository institutions until such funds are disbursed under 
    paragraph (2).
        ``(2) Disbursement of funds.--Funds of the Corporation may be 
    disbursed only for purposes that are--
            ``(A) approved by the Board of Directors by a recorded vote 
        with a quorum present; and
            ``(B) in accordance with the purposes of the Corporation as 
        specified in subsection (b).
    ``(f) Network of Information and Assistance Centers.--In carrying 
out the purpose described in subsection (b), the Corporation shall 
establish and maintain a network of information and assistance centers 
for use by veterans and the public.
    ``(g) Annual Report.--On or before October 1 of each year, the 
Board of Directors shall transmit a report to the President and the 
Congress describing the activities and accomplishments of the 
Corporation for the preceding year and the Corporation's findings 
regarding the efforts of Federal, State and private organizations to 
assist veterans in the formation and expansion of small business 
concerns.
    ``(h) Assumption of Duties of Advisory Committee.--On October 1, 
2004, the Corporation established under this section shall assume the 
duties, responsibilities, and authority of the Advisory Committee on 
Veterans Affairs established under section 203 of this Act.
    ``(i) Use of Mails.--The Corporation may use the United States 
mails in the same manner and under the same conditions as the 
departments and agencies of the United States.
    ``(j) Professional Certification Advisory Board.--
        ``(1) In general.--Acting through the Board of Directors, the 
    Corporation shall establish a Professional Certification Advisory 
    Board to create uniform guidelines and standards for the 
    professional certification of members of the Armed Services to aid 
    in their efficient and orderly transition to civilian occupations 
    and professions and to remove potential barriers in the areas of 
    licensure and certification.
        ``(2) Membership.--The members of the Advisory Board shall 
    serve without compensation, shall meet in the District of Columbia 
    no less than quarterly, and shall be appointed by the Board of 
    Directors as follows:
            ``(A) Private sector members.--The Corporation shall 
        appoint not less than seven members for terms of 2 years to 
        represent private sector organizations and associations, 
        including the American Association of Community Colleges, the 
        Society for Human Resource Managers, the Coalition for 
        Professional Certification, the Council on Licensure and 
        Enforcement, and the American Legion.
            ``(B) Public sector members.--The Corporation shall invite 
        public sector members to serve at the discretion of their 
        departments or agencies and shall--
                ``(i) encourage the participation of the Under 
            Secretary of Defense for Personnel and Readiness;
                ``(ii) encourage the participation of two officers from 
            each branch of the Armed Forces to represent the Training 
            Commands of their branch; and
                ``(iii) seek the participation and guidance of the 
            Assistant Secretary of Labor for Veterans' Employment and 
            Training.
    ``(k) Authorization of Appropriations.--
        ``(1) In general.--Subject to paragraph (2), there are 
    authorized to be appropriated to the Corporation to carry out this 
    section--
            ``(A) $2,000,000 for fiscal year 2000;
            ``(B) $4,000,000 for fiscal year 2001;
            ``(C) $4,000,000 for fiscal year 2002; and
            ``(D) $2,000,000 for fiscal year 2003.
        ``(2) Matching requirement.--
            ``(A) Fiscal year 2001.--The amount made available to the 
        Corporation for fiscal year 2001 may not exceed twice the 
        amount that the Corporation certifies that it will provide for 
        that fiscal year from sources other than the Federal 
        Government.
            ``(B) Subsequent fiscal years.--The amount made available 
        to the Corporation for fiscal year 2002 or 2003 may not exceed 
        the amount that the Corporation certifies that it will provide 
        for that fiscal year from sources other than the Federal 
        Government.
        ``(3) Privatization.--The Corporation shall institute and 
    implement a plan to raise private funds and become a self-
    sustaining corporation.''.
    (b) GAO Report.--Not later than 180 days after the last day of the 
second fiscal year beginning after the date on which the initial 
members of the Board of Directors of the National Veterans Business 
Development Corporation are appointed under section 33(c) of the Small 
Business Act (as added by this section), the Comptroller General of the 
United States shall evaluate the effectiveness of the National Veterans 
Business Development Corporation in carrying out the purposes under 
section 33(b) of the Small Business Act (as added by this section), and 
submit to Congress a report on the results of that evaluation.

SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS.

    (a) In General.--There is established an advisory committee to be 
known as the ``Advisory Committee on Veterans Business Affairs'' (in 
this section referred to as the ``Committee''), which shall serve as an 
independent source of advice and policy recommendations to--
        (1) the Administrator of the Small Business Administration (in 
    this section referred to as the ``Administrator'');
        (2) the Associate Administrator for Veterans Business 
    Development of the Small Business Administration;
        (3) the Congress;
        (4) the President; and
        (5) other United States policymakers.
    (b) Membership.--
        (1) In general.--The Committee shall be composed of 15 members, 
    of whom--
            (A) eight shall be veterans who are owners of small 
        business concerns (within the meaning of the term under section 
        3 of the Small Business Act (15 U.S.C. 632)); and
            (B) seven shall be representatives of veterans 
        organizations.
        (2) Appointment.--
            (A) In general.--The members of the Committee shall be 
        appointed by the Administrator in accordance with this section.
            (B) Initial appointments.--Not later than 90 days after the 
        date of the enactment of this Act, the Administrator shall 
        appoint the initial members of the Committee.
        (3) Political affiliation.--Not more than eight members of the 
    Committee shall be of the same political party as the President.
        (4) Prohibition on federal employment.--
            (A) In general.--Except as provided in subparagraph (B), no 
        member of the Committee may serve as an officer or employee of 
        the United States.
            (B) Exception.--A member of the Committee who accepts a 
        position as an officer or employee of the United States after 
        the date of the member's appointment to the Committee may 
        continue to serve on the Committee for not more than 30 days 
        after such acceptance.
        (5) Term of service.--
            (A) In general.--Subject to subparagraph (B), the term of 
        service of each member of the Committee shall be 3 years.
            (B) Terms of initial appointees.--As designated by the 
        Administrator at the time of appointment, of the members first 
        appointed--
                (i) six shall be appointed for a term of 4 years; and
                (ii) five shall be appointed for a term of 5 years.
        (6) Vacancies.--The Administrator shall fill any vacancies on 
    the membership of the Committee not later than 30 days after the 
    date on which such vacancy occurs.
        (7) Chairperson.--
            (A) In general.--The members of the Committee shall elect 
        one of the members to be Chairperson of the Committee.
            (B) Vacancies in office of chairperson.--Any vacancy in the 
        office of the Chairperson of the Committee shall be filled by 
        the Committee at the first meeting of the Committee following 
        the date on which the vacancy occurs.
    (c) Duties.--The duties of the Committee shall be the following:
        (1) Review, coordinate, and monitor plans and programs 
    developed in the public and private sectors, that affect the 
    ability of small business concerns owned and controlled by veterans 
    to obtain capital and credit and to access markets.
        (2) Promote the collection of business information and survey 
    data as they relate to veterans and small business concerns owned 
    and controlled by veterans.
        (3) Monitor and promote plans, programs, and operations of the 
    departments and agencies of the United States that may contribute 
    to the formation and growth of small business concerns owned and 
    controlled by veterans.
        (4) Develop and promote initiatives, policies, programs, and 
    plans designed to foster small business concerns owned and 
    controlled by veterans.
        (5) In cooperation with the National Veterans Business 
    Development Corporation, develop a comprehensive plan, to be 
    updated annually, for joint public-private sector efforts to 
    facilitate growth and development of small business concerns owned 
    and controlled by veterans.
    (d) Powers.--
        (1) Hearings.--Subject to subsection (e), the Committee may 
    hold such hearings, sit and act at such times and places, take such 
    testimony, and receive such evidence as the Committee considers 
    advisable to carry out its duties.
        (2) Information from federal agencies.--Upon request of the 
    Chairperson of the Committee, the head of any department or agency 
    of the United States shall furnish such information to the 
    Committee as the Committee considers to be necessary to carry out 
    its duties.
        (3) Use of mails.--The Committee may use the United States 
    mails in the same manner and under the same conditions as other 
    departments and agencies of the United States.
        (4) Gifts.--The Committee may accept, use, and dispose of gifts 
    or donations of services or property.
    (e) Meetings.--
        (1) In general.--The Committee shall meet, not less than three 
    times per year, at the call of the Chairperson or at the request of 
    the Administrator.
        (2) Location.--Each meeting of the full Committee shall be held 
    at the headquarters of the Small Business Administration located in 
    Washington, District of Columbia. The Administrator shall provide 
    suitable meeting facilities and such administrative support as may 
    be necessary for each full meeting of the Committee.
        (3) Task groups.--The Committee may, from time-to-time, 
    establish temporary task groups as may be necessary in order to 
    carry out its duties.
    (f) Compensation and Expenses.--
        (1) No compensation.--Members of the Committee shall serve 
    without compensation for their service to the Committee.
        (2) Expenses.--The members of the Committee shall be reimbursed 
    for travel and subsistence expenses in accordance with section 5703 
    of title 5, United States Code.
    (g) Report.--Not later than 30 days after the end of each fiscal 
year beginning after the date of the enactment of this section, the 
Committee shall transmit to the Congress and the President a report 
describing the activities of the Committee and any recommendations 
developed by the Committee for the promotion of small business concerns 
owned and controlled by veterans.
    (h) Termination.--The Committee shall terminate its business on 
September 30, 2004.

                    TITLE III--TECHNICAL ASSISTANCE

SEC. 301. SCORE PROGRAM.

    (a) In General.--The Administrator of the Small Business 
Administration shall enter into a memorandum of understanding with the 
Service Core of Retired Executives (described in section 8(b)(1)(B) of 
the Small Business Act (15 U.S.C. 637(b)(1)(B)) and in this section 
referred to as ``SCORE'') to provide for the following:
        (1) The appointment by SCORE in its national office of an 
    individual to act as National Veterans Business Coordinator, whose 
    duties shall relate exclusively to veterans business matters, and 
    who shall be responsible for the establishment and administration 
    of a program to coordinate counseling and training regarding 
    entrepreneurship to veterans through the chapters of SCORE 
    throughout the United States.
        (2) The assistance of SCORE in the establishing and maintaining 
    a toll-free telephone number and an Internet website to provide 
    access for veterans to information about the counseling and 
    training regarding entrepreneurship available to veterans through 
    SCORE.
        (3) The collection of statistics concerning services provided 
    by SCORE to veterans, including service-disabled veterans, for 
    inclusion in each annual report published by the Administrator 
    under section 4(b)(2)(B) of the Small Business Act (15 U.S.C. 
    633(b)(2)(B)).
    (b) Resources.--The Administrator shall provide to SCORE such 
resources as the Administrator determines necessary for SCORE to carry 
out the requirements of the memorandum of understanding specified in 
paragraph (1).

SEC. 302. ENTREPRENEURIAL ASSISTANCE.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Veterans Affairs, the Administrator of the Small 
Business Administration, and the head of the association formed 
pursuant to section 21(a)(3)(A) of the Small Business Act (15 U.S.C. 
648(a)(3)(A)) shall enter into a memorandum of understanding with 
respect to entrepreneurial assistance to veterans, including service-
disabled veterans, through Small Business Development Centers 
(described in section 21 of the Small Business Act (15 U.S.C. 648)) and 
facilities of the Department of Veterans Affairs. Such assistance shall 
include the following:
        (1) Conducting of studies and research, and the distribution of 
    information generated by such studies and research, on the 
    formation, management, financing, marketing, and operation of small 
    business concerns by veterans.
        (2) Provision of training and counseling to veterans concerning 
    the formation, management, financing, marketing, and operation of 
    small business concerns.
        (3) Provision of management and technical assistance to the 
    owners and operators of small business concerns regarding 
    international markets, the promotion of exports, and the transfer 
    of technology.
        (4) Provision of assistance and information to veterans 
    regarding procurement opportunities with Federal, State, and local 
    agencies, especially such agencies funded in whole or in part with 
    Federal funds.
        (5) Establishment of an information clearinghouse to collect 
    and distribute information, including by electronic means, on the 
    assistance programs of Federal, State, and local governments, and 
    of the private sector, including information on office locations, 
    key personnel, telephone numbers, mail and electronic addresses, 
    and contracting and subcontracting opportunities.
        (6) Provision of Internet or other distance learning academic 
    instruction for veterans in business subjects, including 
    accounting, marketing, and business fundamentals.
        (7) Compilation of a list of small business concerns owned and 
    controlled by service-disabled veterans that provide products or 
    services that could be procured by the United States and delivery 
    of such list to each department and agency of the United States. 
    Such list shall be delivered in hard copy and electronic form and 
    shall include the name and address of each such small business 
    concern and the products or services that it provides.

SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT ASSISTANCE FOR MILITARY 
              RESERVISTS' SMALL BUSINESSES.

    (a) In General.--Section 8 of the Small Business Act (15 U.S.C. 
637) is amended by adding at the end the following:
    ``(l) Management Assistance for Small Businesses Affected by 
Military Operations.--The Administration shall utilize, as appropriate, 
its entrepreneurial development and management assistance programs, 
including programs involving State or private sector partners, to 
provide business counseling and training to any small business concern 
adversely affected by the deployment of units of the Armed Forces of 
the United States in support of a period of military conflict (as 
defined in section 7(n)(1)).''.
    (b) Enhanced Publicity During Operation Allied Force.--For the 
duration of Operation Allied Force and for 120 days thereafter, the 
Administration shall enhance its publicity of the availability of 
assistance provided pursuant to the amendment made by this section, 
including information regarding the appropriate local office at which 
affected small businesses may seek such assistance.
    (c) Guidelines.--Not later than 30 days after the date of the 
enactment of this section, the Administrator of the Small Business 
Administration shall issue such guidelines as the Administrator 
determines to be necessary to carry out this section and the amendment 
made by this section.

                     TITLE IV--FINANCIAL ASSISTANCE

SEC. 401. GENERAL BUSINESS LOAN PROGRAM.

    (a) Definition of Handicapped Individual.--Section 3(f) of the 
Small Business Act (15 U.S.C. 632(f)) is amended to read as follows:
    ``(f) For purposes of section 7 of this Act, the term `handicapped 
individual' means an individual--
        ``(1) who has a physical, mental, or emotional impairment, 
    defect, ailment, disease, or disability of a permanent nature which 
    in any way limits the selection of any type of employment for which 
    the person would otherwise be qualified or qualifiable; or
        ``(2) who is a service-disabled veteran.''.
    (b) Authorization To Make Loans.--Section 7(a)(10) of the Small 
Business Act (15 U.S.C. 636(a)(10)) is amended--
        (1) by inserting ``guaranteed'' after ``provide''; and
        (2) by inserting ``, including service-disabled veterans,'' 
    after ``handicapped individual''.

SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERVISTS.

    (a) Repayment Deferral for Active Duty Reservists.--
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by 
adding at the end the following:
    ``(n) Repayment Deferred for Active Duty Reservists.--
        ``(1) Definitions.--In this subsection:
            ``(A) Eligible reservist.--The term `eligible reservist' 
        means a member of a reserve component of the Armed Forces 
        ordered to active duty during a period of military conflict.
            ``(B) Essential employee.--The term `essential employee' 
        means an individual who is employed by a small business concern 
        and whose managerial or technical expertise is critical to the 
        successful day-to-day operations of that small business 
        concern.
            ``(C) Period of military conflict.--The term `period of 
        military conflict' means--
                ``(i) a period of war declared by the Congress;
                ``(ii) a period of national emergency declared by the 
            Congress or by the President; or
                ``(iii) a period of a contingency operation, as defined 
            in section 101(a) of title 10, United States Code.
            ``(D) Qualified borrower.--The term `qualified borrower' 
        means--
                ``(i) an individual who is an eligible reservist and 
            who received a direct loan under subsection (a) or (b) 
            before being ordered to active duty; or
                ``(ii) a small business concern that received a direct 
            loan under subsection (a) or (b) before an eligible 
            reservist, who is an essential employee, was ordered to 
            active duty.
        ``(2) Deferral of direct loans.--
            ``(A) In general.--The Administration shall, upon written 
        request, defer repayment of principal and interest due on a 
        direct loan made under subsection (a) or (b), if such loan was 
        incurred by a qualified borrower.
            ``(B) Period of deferral.--The period of deferral for 
        repayment under this paragraph shall begin on the date on which 
        the eligible reservist is ordered to active duty and shall 
        terminate on the date that is 180 days after the date such 
        eligible reservist is discharged or released from active duty.
            ``(C) Interest rate reduction during deferral.--
        Notwithstanding any other provision of law, during the period 
        of deferral described in subparagraph (B), the Administration 
        may, in its discretion, reduce the interest rate on any loan 
        qualifying for a deferral under this paragraph.
        ``(3) Deferral of loan guarantees and other financings.--The 
    Administration shall--
            ``(A) encourage intermediaries participating in the program 
        under subsection (m) to defer repayment of a loan made with 
        proceeds made available under that subsection, if such loan was 
        incurred by a small business concern that is eligible to apply 
        for assistance under subsection (b)(3); and
            ``(B) not later than 30 days after the date of the 
        enactment of this subsection, establish guidelines to--
                ``(i) encourage lenders and other intermediaries to 
            defer repayment of, or provide other relief relating to, 
            loan guarantees under subsection (a) and financings under 
            section 504 of the Small Business Investment Act of 1958 
            that were incurred by small business concerns that are 
            eligible to apply for assistance under subsection (b)(3), 
            and loan guarantees provided under subsection (m) if the 
            intermediary provides relief to a small business concern 
            under this paragraph; and
                ``(ii) implement a program to provide for the deferral 
            of repayment or other relief to any intermediary providing 
            relief to a small business borrower under this 
            paragraph.''.
    (b) Disaster Loan Assistance for Military Reservists' Small 
Businesses.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) 
is amended by inserting after the undesignated paragraph that begins 
with ``Provided, That no loan'', the following:
        ``(3)(A) In this paragraph--
            ``(i) the term `essential employee' means an individual who 
        is employed by a small business concern and whose managerial or 
        technical expertise is critical to the successful day-to-day 
        operations of that small business concern;
            ``(ii) the term `period of military conflict' has the 
        meaning given the term in subsection (n)(1); and
            ``(iii) the term `substantial economic injury' means an 
        economic harm to a business concern that results in the 
        inability of the business concern--
                ``(I) to meet its obligations as they mature;
                ``(II) to pay its ordinary and necessary operating 
            expenses; or
                ``(III) to market, produce, or provide a product or 
            service ordinarily marketed, produced, or provided by the 
            business concern.
        ``(B) The Administration may make such disaster loans (either 
    directly or in cooperation with banks or other lending institutions 
    through agreements to participate on an immediate or deferred 
    basis) to assist a small business concern that has suffered or that 
    is likely to suffer substantial economic injury as the result of an 
    essential employee of such small business concern being ordered to 
    active military duty during a period of military conflict.
        ``(C) A small business concern described in subparagraph (B) 
    shall be eligible to apply for assistance under this paragraph 
    during the period beginning on the date on which the essential 
    employee is ordered to active duty and ending on the date that is 
    90 days after the date on which such essential employee is 
    discharged or released from active duty.
        ``(D) Any loan or guarantee extended pursuant to this paragraph 
    shall be made at the same interest rate as economic injury loans 
    under paragraph (2).
        ``(E) No loan may be made under this paragraph, either directly 
    or in cooperation with banks or other lending institutions through 
    agreements to participate on an immediate or deferred basis, if the 
    total amount outstanding and committed to the borrower under this 
    subsection would exceed $1,500,000, unless such applicant 
    constitutes a major source of employment in its surrounding area, 
    as determined by the Administration, in which case the 
    Administration, in its discretion, may waive the $1,500,000 
    limitation.
        ``(F) For purposes of assistance under this paragraph, no 
    declaration of a disaster area shall be required.''.
    (c) Enhanced Publicity During Operation Allied Force.--For the 
duration of Operation Allied Force and for 120 days thereafter, the 
Administration shall enhance its publicity of the availability of 
assistance provided pursuant to the amendments made by this section, 
including information regarding the appropriate local office at which 
affected small businesses may seek such assistance.
    (d) Guidelines.--Not later than 30 days after the date of the 
enactment of this section, the Administrator of the Small Business 
Administration shall issue such guidelines as the Administrator 
determines to be necessary to carry out this section and the amendments 
made by this section.
    (e) Effective Dates.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall take effect on the date of 
    the enactment of this section.
        (2) Disaster loans.--The amendments made by subsection (b) 
    shall apply to economic injury suffered or likely to be suffered as 
    the result of a period of military conflict occurring or ending on 
    or after March 24, 1999.

SEC. 403. MICROLOAN PROGRAM.

    Section 7(m)(1)(A)(i) of the Small Business Act (15 U.S.C. 
636(m)(1)(A)(i)) is amended by inserting ``veteran (within the meaning 
of such term under section 3(q)),'' after ``low-income,''.

SEC. 404. DEFENSE ECONOMIC TRANSITION LOAN PROGRAM.

    Section 7(a)(21)(A)(ii) of the Small Business Act (15 U.S.C. 
636(a)(21)(A)(ii)) is amended by inserting ``or a veteran'' after 
``qualified individual''.

SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.

    Section 501(d)(3) of the Small Business Investment Act of 1958 (15 
U.S.C. 695(d)(3)) is amended--
        (1) by redesignating subparagraphs (E), (F), and (G) as 
    subparagraphs (F), (G), and (H), respectively; and
        (2) by inserting after subparagraph (D) the following:
            ``(E) expansion of small business concerns owned and 
        controlled by veterans, as defined in section 3(q) of the Small 
        Business Act (15 U.S.C. 632(q)), especially service-disabled 
        veterans, as defined in such section 3(q),''.

                    TITLE V--PROCUREMENT ASSISTANCE

SEC. 501. SUBCONTRACTING.

    (a) Statement of Policy.--Section 8(d)(1) of the Small Business Act 
(15 U.S.C. 637(d)(1)) is amended by inserting ``small business concerns 
owned and controlled by service-disabled veterans,'' after ``small 
business concerns,'' the first place it appears in the first and second 
sentences.
    (b) Contract Clause.--The contract clause specified in section 
8(d)(3) of the Small Business Act (15 U.S.C. 637(d)(3)) is amended as 
follows:
        (1) Subparagraph (A) of such clause is amended by inserting 
    ``small business concerns owned and controlled by veterans,'' after 
    ``small business concerns,'' the first place it appears in the 
    first and second sentences.
        (2) Subparagraphs (E) and (F) of such clause are redesignated 
    as subparagraphs (F) and (G), respectively, and the following new 
    subparagraph is inserted after subparagraph (D) of such clause:
        ``(E) The term `small business concern owned and controlled by 
    veterans' shall mean a small business concern--
            ``(i) which is at least 51 per centum owned by one or more 
        eligible veterans; or, in the case of any publicly owned 
        business, at least 51 per centum of the stock of which is owned 
        by one or more veterans; and
            ``(ii) whose management and daily business operations are 
        controlled by such veterans. The contractor shall treat as 
        veterans all individuals who are veterans within the meaning of 
        the term under section 3(q) of the Small Business Act.''.
        (3) Subparagraph (F) of such clause, as redesignated by 
    paragraph (2) of this subsection, is amended by inserting ``small 
    business concern owned and controlled by veterans,'' after ``small 
    business concern,'' the first place it appears.
    (c) Conforming Amendments.--Section 8(d) of the Small Business Act 
(15 U.S.C. 637(d)) is amended by inserting ``small business concerns 
owned and controlled by veterans,'' after ``small business concerns,'' 
the first place it appears in each of paragraphs (4)(D), (4)(E), 
(6)(A), (6)(C), (6)(F), and (10)(B).

SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.

    (a) Government-Wide Participation Goals.--Section 15(g)(1) of the 
Small Business Act (15 U.S.C. 644(g)(1)) is amended--
        (1) in the first sentence, by inserting ``small business 
    concerns owned and controlled by service disabled veterans,'' after 
    ``small business concerns,'' the first place it appears;
        (2) by inserting after the second sentence, the following: 
    ``The Government-wide goal for participation by small business 
    concerns owned and controlled by service-disabled veterans shall be 
    established at not less than 3 percent of the total value of all 
    prime contract and subcontract awards for each fiscal year.''; and
        (3) in the second to last sentence, by inserting ``small 
    business concerns owned and controlled by service-disabled 
    veterans,'' after ``small business concerns,'' the first place it 
    appears.
    (b) Agency Participation Goals.--Section 15 of the Small Business 
Act (15 U.S.C. 644(g)(2)) is amended--
        (1) in the first sentence, by inserting ``by small business 
    concerns owned and controlled by service-disabled veterans,'' after 
    ``small business concerns,''; the first place it appears;
        (2) in the second sentence, by inserting ``small business 
    concerns owned and controlled by service-disabled veterans,'' after 
    ``small business concerns,'' the first place it appears; and
        (3) in the fourth sentence, by inserting ``small business 
    concerns owned and controlled by service-disabled veterans, by'' 
    after ``including participation by''.

                 TITLE VI--REPORTS AND DATA COLLECTION

SEC. 601. REPORTING REQUIREMENTS.

    (a) Reports to Small Business Administration.--Section 15(h)(1) of 
the Small Business Act (15 U.S.C. 644(h)(1)) is amended by inserting 
``small business concerns owned and controlled by veterans (including 
service-disabled veterans),'' after ``small business concerns,'' the 
first place it appears.
    (b) Reports to the President and the Congress.--Section 15(h)(2) of 
the Small Business Act (15 U.S.C. 644(h)(2)) is amended--
        (1) by inserting ``and the Congress'' before the period at the 
    end of first sentence; and
        (2) in each of subparagraphs (A), (D), and (E), by inserting 
    ``small business concerns owned and controlled by service-disabled 
    veterans,'' after ``small business concerns,'' the first place it 
    appears.

SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.

    Section 303(e) of the Small Business Economic Policy Act of 1980 
(15 U.S.C. 631b(e)) is amended--
        (1) in paragraph (1), by striking ``and'' after the semicolon;
        (2) in paragraph (2), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(3) small business concerns owned and controlled by 
    veterans, as defined in section 3(q) of the Small Business Act (15 
    U.S.C. 632(q)), and small business concerns owned and controlled by 
    service-disabled veterans, as defined in such section 3(q).''.

SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.

    The Administrator of the Small Business Administration shall 
transmit annually to the Committees on Small Business and Veterans 
Affairs of the House of Representatives and the Senate a report on the 
needs of small business concerns owned and controlled by veterans and 
small business concerns owned and controlled by service-disabled 
veterans, which shall include information on--
        (1) the availability of Small Business Administration programs 
    for such small business concerns and the degree of utilization of 
    such programs by such small business concerns during the preceding 
    12-month period, including statistical information on such 
    utilization as compared to the small business community as a whole;
        (2) the percentage and dollar value of Federal contracts 
    awarded to such small business concerns during the preceding 12-
    month period, based on the data collected pursuant to section 
    604(d); and
        (3) proposals to improve the access of such small business 
    concerns to the assistance made available by the United States.

SEC. 604. DATA AND INFORMATION COLLECTION.

    (a) Information on Federal Procurement Practices.--The 
Administrator of the Small Business Administration shall, for each 
fiscal year--
        (1) collect information concerning the procurement practices 
    and procedures of each department and agency of the United States 
    having procurement authority;
        (2) publish and disseminate such information to procurement 
    officers in all Federal agencies; and
        (3) make such information available to any small business 
    concern requesting such information.
    (b) Identification of Small Business Concerns Owned by Eligible 
Veterans.--Each fiscal year, the Secretary of Veterans Affairs shall, 
in consultation with the Assistant Secretary of Labor for Veterans' 
Employment and Training and the Administrator of the Small Business 
Administration, identify small business concerns owned and controlled 
by veterans in the United States. The Secretary shall inform each small 
business concern identified under this paragraph that information on 
Federal procurement is available from the Administrator.
    (c) Self-Employment Opportunities.--The Secretary of Labor, the 
Secretary of Veterans Affairs, and the Administrator of the Small 
Business Administration shall enter into a memorandum of understanding 
to provide for coordination of vocational rehabilitation services, 
technical and managerial assistance, and financial assistance to 
veterans, including service-disabled veterans, seeking to employ 
themselves by forming or expanding small business concerns. The 
memorandum of understanding shall include recommendations for expanding 
existing programs or establishing new programs to provide such services 
or assistance to such veterans.
    (d) Data Collection Required.--The Federal Procurement Data System 
described in section 6(d)(4)(A) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect data 
regarding the percentage and dollar value of prime contracts and 
subcontracts awarded to small business concerns owned and controlled by 
veterans and small business concerns owned and controlled by service-
disabled veterans.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. ADMINISTRATOR'S ORDER.

    The Administrator of the Small Business Administration shall 
strengthen and reissue the Administrator's order regarding the third 
sentence of section 4(b)(1) of the Small Business Act (15 U.S.C. 
633(b)(1)), relating to nondiscrimination and special considerations 
for veterans, and take all necessary steps to ensure that its 
provisions are fully and vigorously implemented.

SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF ADVOCACY.

    Section 202 of Public Law 94-305 (15 U.S.C. 634b) is amended--
        (1) in paragraph (10), by striking ``and'' at the end;
        (2) in paragraph (11), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(12) evaluate the efforts of each department and agency of 
    the United States, and of private industry, to assist small 
    business concerns owned and controlled by veterans, as defined in 
    section 3(q) of the Small Business Act (15 U.S.C. 632(q)), and 
    small business concerns owned and controlled by serviced-disabled 
    veterans, as defined in such section 3(q), and to provide 
    statistical information on the utilization of such programs by such 
    small business concerns, and to make appropriate recommendations to 
    the Administrator of the Small Business Administration and to the 
    Congress in order to promote the establishment and growth of those 
    small business concerns.''.

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

    (a)  In General.--The Comptroller General shall conduct a study on 
whether there would exist any additional risk or cost to the United 
States if--
        (1) up to 10 percent of the loans guaranteed under chapter 37 
    of title 38, United States Code, were made for the acquisition or 
    construction of fixed assets used in a trade or business rather 
    than for the construction or purchase of residential buildings; and
        (2) such loans for acquisition or construction of fixed assets 
    were for a term of not more than 10 years and the terms regarding 
    eligibility, loan limits, interest, fees, and down payment were the 
    same as for other loans guaranteed under such chapter.
    (b) Report.--
        (1) In general.--Not later than 180 days after the enactment of 
    this Act, the Comptroller General shall transmit the report 
    described in subsection (a) to the Committees on Veterans' Affairs 
    and the Committees on Small Business of the House of 
    Representatives and the Senate.
        (2) Contents of report.--The report required by paragraph (1) 
    shall specifically address the following:
            (A) With respect to the change in the veterans' housing 
        loan program contemplated under subsection (a):
                (i) The increase or decrease in administrative costs to 
            the Department of Veterans Affairs.
                (ii) The increase or decrease in the degree of exposure 
            of the United States as the guarantor of the loans.
                (iii) The increase or decrease in the Federal subsidy 
            rate that would be possible.
                (iv) Any increase in the interest rate or fees charged 
            to the borrower or lender that would be required to 
            maintain present program costs.
            (B) Information regarding the delinquency rates, default 
        rates, length of time required for recovery after default, for 
        fixed-asset business loans, of a size and duration comparable 
        to those contemplated under subsection (a), made available in 
        the private market or under section 503 of the Small Business 
        Investment Act of 1958.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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