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.
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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 serviceconnected (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 servicedisabled 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
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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
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‘‘(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.—
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‘‘(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
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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
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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 selfsustaining 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;
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(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.
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(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.
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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.
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(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
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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.
H. R. 1568—13

‘‘(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.
H. R. 1568—14

‘‘(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 servicedisabled veterans, as defined in such section 3(q),’’.
H. R. 1568—15

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.
H. R. 1568—16

(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
H. R. 1568—17

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
H. R. 1568—18

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 serviceddisabled 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.
H. R. 1568—19

(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.