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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1886 Introduced in Senate (IS)]

108th CONGRESS
  1st Session
                                S. 1886

 To amend the Small Business Act and the Small Business Act of 1958 to 
      establish the National Office for the Development of Small 
Manufacturers, to increase the level of assistance available for small 
                 manufacturers, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 18, 2003

 Mr. Daschle (for Mr. Kerry) introduced the following bill; which was 
    read twice and referred to the Committee on Small Business and 
                            Entrepreneurship

_______________________________________________________________________

                                 A BILL

 
 To amend the Small Business Act and the Small Business Act of 1958 to 
      establish the National Office for the Development of Small 
Manufacturers, to increase the level of assistance available for small 
                 manufacturers, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Manufacturing 
Assistance, Development, and Education in America Act'' or the ``MADE 
in America Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of small manufacturer.
  TITLE I--NATIONAL OFFICE FOR THE DEVELOPMENT OF SMALL MANUFACTURERS

Sec. 101. Establishment of office.
           TITLE II--INVESTING IN THE FUTURE OF MANUFACTURING

Sec. 201. Increased access to capital.
Sec. 202. Loans and investments in small manufacturers.
          TITLE III--EXPORT ASSISTANCE FOR SMALL MANUFACTURERS

Sec. 301. Small Business Foreign Patent Protection Grant Pilot Program.

SEC. 2. DEFINITION OF SMALL MANUFACTURER.

    (a) Small Business Act.--Section 3(j) of the Small Business Act (15 
U.S.C. 632(j)) is amended by striking ``For the purposes of section 
7(b)(2) of this Act, the term'' and inserting ``As used in this Act--
            ``(1) the term `small manufacturer' means a small business 
        concern (as defined in subsection (a))--
                    ``(A) whose primary business is classified in 
                sector 31, 32, or 33 of the North American Industrial 
                Classification System; and
                    ``(B) whose production facilities are all located 
                in the United States; and
            ``(2) the term''.
    (b) Small Business Investment Act of 1958.--Section 103 of the 
Small Business Investment Act of 1958 (15 U.S.C. 662) is amended--
            (1) in paragraph (16), by striking ``and'' at the end;
            (2) in paragraph (17), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(18) the term `small manufacturer' means a small business 
        concern (as defined in section 3(a) of the Small Business 
        Act)--
                    ``(A) whose primary business is classified in 
                sector 31, 32, or 33 of the North American Industrial 
                Classification System; and
                    ``(B) whose production facilities are all located 
                in the United States.''.

  TITLE I--NATIONAL OFFICE FOR THE DEVELOPMENT OF SMALL MANUFACTURERS

SEC. 101. ESTABLISHMENT OF OFFICE.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--
            (1) by redesignating section 36 as section 37; and
            (2) by inserting after section 35 the following:

``SEC. 36. NATIONAL OFFICE FOR DEVELOPMENT OF SMALL MANUFACTURERS.

    ``(a) Establishment.--There is established in the Administration 
the National Office for the Development of Small Manufacturers 
(referred to in this section as the `Office') to cultivate and develop 
small manufacturers through a variety of means.
    ``(b) Associate Administrator for Small Manufacturing.--
            ``(1) Appointment.--The Office shall be administered by the 
        Associate Administrator for Small Manufacturing (referred to in 
        this section as the `Associate Administrator'), who shall be 
        appointed under section 4(b)(1).
            ``(2) Responsibilities.--In administering the Office, the 
        Associate Administrator, who shall be an appointee in the 
        Senior Executive Service, shall--
                    ``(A) oversee and coordinate the formulation, 
                execution, and promotion of policies and programs of 
                the Administration that provide assistance to small 
                manufacturers, including the creation of the 
                Manufacturing Corps;
                    ``(B) direct Federal agencies and departments to 
                provide information regarding their manufacturing 
                resources and programs, and to take appropriate action 
                to enhance assistance to small manufacturers;
                    ``(C) coordinate the activities, and delivery of 
                such activities, of Federal agencies and departments 
                relating to manufacturing;
                    ``(D) coordinate the activities of Federal agencies 
                with manufacturing activities of the States; and
                    ``(E) consult with and report to the Administrator 
                regarding the fulfillment of responsibilities under 
                this subsection.
    ``(c) Manufacturing Corps.--
            ``(1) Establishment.--The Administrator shall establish a 
        program within the Office to be known as the Manufacturing 
        Corps to focus on the education and training of the existing 
        and potential workforce of small manufacturers.
            ``(2) Administration.--The Manufacturing Corps shall be 
        administered by the Associate Administrator.
            ``(3) Responsibilities.--The Manufacturing Corps shall 
        address the pressing need for more skilled workers by promoting 
        vocational, technical, and academic education relating to the 
        manufacturing sector.
            ``(4) Curriculum development.--
                    ``(A) Outreach.--The Associate Administrator shall 
                regularly seek input from small manufacturers regarding 
                the human capital needs of the manufacturing industry.
                    ``(B) Cooperation.--The input received under 
                subparagraph (A) shall be used to develop, and annually 
                update, a detailed manufacturing training curriculum 
                for each State through the cooperative effort of small 
                manufacturers and educational institutions.
    ``(d) Manufacturing Training Block Grants.--
            ``(1) Grants authorized.--The Administrator, in 
        consultation with the Associate Administrator, shall award 
        block grants to States, which shall allocate grant funds to 
        individuals and eligible entities to develop and implement 
        manufacturing training programs.
            ``(2) Funding formula.--
                    ``(A) In general.--Subject to subparagraph (C), the 
                amount of a formula grant received by a State under 
                this subsection shall be equal to an amount determined 
                in accordance with the following formula:
                            ``(i) The annual amount made available 
                        under subsection (i) for the Manufacturer Corps 
                        Program shall be divided on a pro rata basis, 
                        based on the percentage of the population of 
                        each State, as compared to the population of 
                        the United States.
                            ``(ii) If the pro rata amount calculated 
                        under clause (i) for any State is less than the 
                        minimum funding level under subparagraph (C), 
                        the Administration shall determine the 
                        aggregate amount necessary to achieve that 
                        minimum funding level for each such State.
                            ``(iii) The aggregate amount calculated 
                        under clause (ii) shall be deducted from the 
                        amount calculated under clause (i) for States 
                        eligible to receive more than the minimum 
                        funding level. The deductions shall be made on 
                        a pro rata basis, based on the population of 
                        each such State, as compared to the total 
                        population of all such States.
                            ``(iv) The aggregate amount deducted under 
                        clause (iii) shall be added to the grants of 
                        those States that are not eligible to receive 
                        more than the minimum funding level in order to 
                        achieve the minimum funding level for each such 
                        State, except that the eligible amount of a 
                        grant to any State shall not be reduced to an 
                        amount below the minimum funding level.
                    ``(B) Grant determination.--The amount of a grant 
                that a State is eligible to apply for under this 
                subsection shall be the amount determined under 
                subparagraph (A), subject to any modifications required 
                under subparagraph (C), and shall be based on the 
                amount available for the fiscal year in which 
                performance of the grant commences, but not including 
                amounts distributed in accordance with subparagraph 
                (D). The amount of a grant received by a State under 
                any provision of this subparagraph shall not exceed the 
                amount of matching funds from sources other than the 
                Federal Government, as required under paragraph (7).
                    ``(C) Minimum funding level.--Each State shall 
                receive a block grant under this subsection in an 
                amount not less than--
                            ``(i) $200,000 for any fiscal year in which 
                        the total amount appropriated for grants under 
                        this subsection is not more than $25,000,000;
                            ``(ii) $300,000 for any fiscal year in 
                        which the total amount appropriated for grants 
                        under this subsection is more than $25,000,000, 
                        but not more than $50,000,000;
                            ``(iii) $400,000 for any fiscal year in 
                        which the total amount appropriated for grants 
                        under this subsection is more than $50,000,000, 
                        but not more than $75,000,000; and
                            ``(iv) $500,000 for any fiscal year in 
                        which the total amount appropriated for grants 
                        under this subsection is more than $75,000,000.
                    ``(D) Distributions.--Subject to subparagraph (C), 
                if any State does not apply for, or use, its full 
                funding eligibility for a fiscal year, the 
                Administration shall distribute the remaining funds as 
                supplemental grants to any State, as the Administration 
                determines, in its discretion, to be appropriate.
            ``(3) Eligible entities.--Secondary, vocational, and 
        postsecondary schools that receive public funding, 
        manufacturing extension partnerships, small business 
        development centers, women's business centers, and similar 
        nonprofit organizations shall be eligible to receive grant 
        funds from States under this subsection.
            ``(4) Use of funds.--
                    ``(A) In general.--Grants awarded under this 
                section may only be used to develop and implement 
                vocational, technical, or academic training programs to 
                educate and enhance the skills of--
                            ``(i) individuals working in the field of 
                        manufacturing; and
                            ``(ii) students who are interested in 
                        working in the field of manufacturing.
                    ``(B) Secondary schools.--Secondary schools may use 
                funds received under this subsection to develop and 
                conduct vocational and technology training to high 
                school students to prepare students who are not 
                planning to attend college immediately after graduation 
                for employment in the field of manufacturing. Schools 
                are encouraged to partner with small manufacturers to 
address their skilled worker needs and to provide employment 
opportunities for students after graduation.
                    ``(C) Continuing education.--Manufacturing 
                extension partnerships, small business development 
                centers, women's business centers, and similar 
                nonprofit organizations may use funds received under 
                this subsection to assist existing manufacturing 
                workers to improve their skills and advance their 
                technical abilities.
            ``(5) Student loan repayment program.--
                    ``(A) In general.--States may use grant funds 
                received under this subsection to encourage recent 
                college graduates to work for a small manufacturer by 
                repaying a portion of their student loans during the 
                period of such employment.
                    ``(B) Maximum amounts.--A State may make payments 
                of not more than $300 per month toward the student loan 
                principal and interest of any college graduate who has 
                committed to work for a small manufacturer for a 4-year 
                period beginning not sooner than the date on which the 
                graduate submits an application under paragraph (6)(B). 
                Aggregate payments to any individual under this 
                paragraph may not exceed $25,000.
                    ``(C) Renewal.--After the initial 4-year term 
                established under subparagraph (B) has been completed, 
                the State may annually renew its commitment under 
                subparagraph (B) for successive 1-year periods if the 
                college graduate commits to continue working for the 
                small manufacturer.
                    ``(D) Maximum compensation.--Individuals whose 
                gross annual compensation (including bonuses) from the 
                small manufacturer is greater than $60,000 are 
                ineligible to participate in the student loan repayment 
                program authorized by this paragraph.
            ``(6) Application.--
                    ``(A) Institutional applicants.--Any eligible 
                entity desiring funding under this subsection shall 
                submit a proposal to the appropriate representative of 
                the State in which it is located.
                    ``(B) Individual applicants.--Any college graduate 
                desiring to participate in the student loan repayment 
                program authorized under paragraph (5) shall submit an 
                application to the appropriate representative of the 
                State in which the graduate resides in such form as 
                such representative may reasonably require.
                    ``(C) Criteria.--States may determine which 
                applicants receive funding under this subsection based 
                upon specific needs and available resources.
            ``(7) Matching requirement.--
                    ``(A) Years 1 and 2.--During each of the first and 
                second years of the grant program established under 
                this subsection, each State receiving a block grant 
                under this subsection shall provide $1 in non-Federal 
                funding for each $3 received in Federal funding under 
                this section.
                    ``(B) Years 3 and 4.--During each of the third and 
                fourth years of the grant program established under 
                this subsection, each State receiving a block grant 
                under this subsection shall provide $1 in non-Federal 
                funding for each $2 received in Federal funding under 
                this section.
                    ``(C) Years 5 through 10.--During each of the fifth 
                through tenth years of the grant program established 
                under this subsection, each State receiving a block 
                grant under this subsection shall provide $1 in non-
                Federal funding for each $1 received in Federal funding 
                under this section.
            ``(8) State reporting requirement.--Each State receiving a 
        grant under this subsection shall provide sufficient 
        information to the Administration about the distribution of 
        grant funds to complete the report required under subsection 
        (e).
            ``(9) Defined term.--As used in this subsection, the term 
        `State' has the meaning given the term in section 34(a).
    ``(e) BusinessLINC Manufacturing.--
            ``(1) In general.--In accordance with this subsection, the 
        Administrator may make grants to and enter into cooperative 
        agreements with any coalition of private entities, public 
        entities, or any combination of private and public entities--
                    ``(A) to expand business-to-business relationships 
                between large and small manufacturers; and
                    ``(B) to provide large and small manufacturers, 
                directly or indirectly, with online information and a 
                database of companies that are interested in mentor-
                protege programs or community-based, statewide, or 
                local business development programs.
            ``(2) Matching requirement.--Subject to subparagraph (B), 
        the Administrator may make a grant to a coalition under 
        paragraph (1) only if the coalition provides for activities 
        described in paragraph (1)(A) or (1)(B) an amount, either in 
        kind or in cash, equal to the grant amount.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $2,000,000 for each of the fiscal years 2004 through 2008, 
        which shall remain available until expended.
    ``(f) Website for Small Manufacturers.--The Associate Administrator 
shall establish a website that contains information for small 
manufacturers regarding--
            ``(1) entrepreneurial development assistance;
            ``(2) access to capital;
            ``(3) specific outreach programs;
            ``(4) contracting opportunities; and
            ``(5) research and development projects.
    ``(g) Mentor-Protege Program.--The Associate Administrator shall 
establish a mentor-protege program that pairs small manufacturers with 
larger, more experienced manufacturers to provide guidance regarding--
            ``(1) management practices;
            ``(2) domestic and foreign marketing;
            ``(3) efficiency improvements; and
            ``(4) product development.
    ``(h) Report.--
            ``(1) In general.--The Administrator, in consultation with 
        the Associate Administrator, shall submit an annual report on 
        the implementation of this section to the Committee on Small 
        Business and Entrepreneurship of the Senate and the Committee 
        on Small Business of the House of Representatives.
            ``(2) Contents.--Each report submitted under paragraph (1) 
        shall include, for the reporting period--
                    ``(A) the number of persons assisted under this 
                section, categorized by type of assistance received;
                    ``(B) the number of persons described under 
                subparagraph (A) who had previously received assistance 
                under this section;
                    ``(C) the number of persons described in 
                subparagraph (A) who are working in the manufacturing 
                sector;
                    ``(D) the number and amount of grants awarded under 
                this section, categorized by type of recipient;
                    ``(E) the number of small manufacturers receiving 
                grant funds under this section; and
                    ``(F) the net increase in manufacturing jobs 
                available at the small manufacturers described in 
                subparagraph (E).
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated $275,000,000 for each of the fiscal years 2005 through 
2014 to carry out subsections (c) and (d).''.
    (b) Conforming Amendments.--Section 4(b)(1) of the Small Business 
Act (15 U.S.C. 633(b)(1)) is amended--
            (1) by striking ``five Associate Administrators'' and 
        inserting ``6 Associate Administrators''; and
            (2) by adding at the end the following: ``One of the 
        Associate Administrators shall be the Associate Administrator 
        for Small Manufacturing, who shall administer the National 
        Office for the Development of Small Manufacturers established 
        under section 36.''.

           TITLE II--INVESTING IN THE FUTURE OF MANUFACTURING

SEC. 201. INCREASED ACCESS TO CAPITAL.

    (a) Working Capital Loans.--Section 7(a) of the Small Business Act 
(15 U.S.C. 636(a)) is amended--
            (1) in paragraph (3)--
                    (A) by inserting ``Total amount of loans.--'' 
                before ``No loan'';
                    (B) by amending subparagraph (A) to read as 
                follows:
                    ``(A) if the total amount outstanding and committed 
                (by participation or otherwise) to the borrower under 
                section 7(a) would exceed $1,000,000 (or if the gross 
                loan amount would exceed $2,000,000), except as 
                provided in subparagraphs (B) and (D) and paragraph 
                (14), plus an amount not to exceed the maximum amount 
                of a development company financing under title V of the 
                Small Business Investment Act of 1958 (15 U.S.C. 695 et 
                seq.), and the Administration shall report to Congress 
                in its annual budget request and performance plan on 
                the number of small business concerns that have 
                financings under this subsection and under title V of 
                the Small Business Investment Act of 1958, and the 
                total amount and general performance of such 
                financings;'';
                    (C) in subparagraph (B)--
                            (i) by striking ``$1,250,000'' and 
                        inserting ``$1,300,000''; and
                            (ii) by striking ``and'' at the end;
                    (D) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (E) by adding at the end the following:
                    ``(D) to a small manufacturer if the total amount 
                outstanding and committed to the borrower from the 
                business loan and investment fund established by this 
                Act would exceed $2,000,000 (or if the gross loan 
                amount would exceed $4,000,000).''; and
            (2) in paragraph (14), by adding at the end the following:
            ``(D) The total amount of financings under this paragraph 
        that are outstanding and committed (by participation or 
        otherwise) to the borrower from the business loan and 
        investment fund established under this Act may not exceed 
        $1,300,000 and the gross loan amount under this paragraph may 
        not exceed $2,600,000.''.
    (b) Disaster Loans.--Section 7(b)(3) of the Small Business Act (15 
U.S.C. 636(b)) is amended by inserting after subparagraph (F) the 
following:
            ``(G) Limitation on sales of loans.--The Administration may 
        not sell a loan under this subsection as part of an asset sale.
            ``(H) Small manufacturers.--
                    ``(i) Maximum loan amount.--Notwithstanding 
                subparagraph (E), the Administration may make a 
                disaster loan to a small manufacturer under this 
                paragraph, either directly or in cooperation with banks 
                or other lending institutions through agreements to 
                participate on an immediate or deferred basis, in an 
                amount greater than $1,500,000, if the total amount 
                outstanding and committed to the borrower does not 
                exceed $5,000,000.
                    ``(ii) Refinancing disaster loans.--Any loan made 
                to a small manufacturer under this subparagraph that 
                was outstanding on the date of the disaster may be 
                refinanced by a small manufacturer that is also 
                eligible to receive a loan under this subsection. The 
                refinanced amount shall be considered to be part of the 
                new loan for purposes of this subsection and shall be 
                in addition to any other loan eligibility for that 
                small manufacturer under this Act and the Small 
                Business Investment Act of 1958. With respect to a 
                refinancing under this clause, payments of principal 
                shall be deferred, and interest shall not accrue during 
the 6-month period following the date of refinancing.
                    ``(iii) Refinancing business debt.--
                            ``(I) In general.--Any business debt of a 
                        small manufacturer that was outstanding on the 
                        date of the disaster may be refinanced by the 
                        small manufacturer if it is also eligible to 
                        receive a loan under this subsection. With 
                        respect to a refinancing under this clause, 
                        payments of principal shall be deferred, and 
                        interest shall not accrue during the 6-month 
                        period following the date of refinancing.
                            ``(II) Resumption of payments.--At the end 
                        of the 6-month period described in subclause 
                        (I), the payment of periodic installments of 
                        principal and interest shall be required with 
                        respect to such loan, in the same manner and 
                        subject to the same terms and conditions as 
                        would otherwise be applicable to any other loan 
                        made under this subsection.
                    ``(iv) Authority to increase or waive size 
                standards and size regulations.--
                            ``(I) In general.--At the discretion of the 
                        Administrator, the Administrator may increase 
                        or waive otherwise applicable size standards or 
                        size regulations with respect to businesses 
                        applying for disaster loans under this 
                        subparagraph.
                            ``(II) Exemption from administrative 
                        procedures.--The provisions of subchapter II of 
                        chapter 5, of title 5, United States Code, 
                        shall not apply to any increase or waiver by 
                        the Administrator under subclause (I).''.
    (c) Microloans.--Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) in clause (iii), by striking ``and'' at 
                        the end;
                            (ii) in clause (iv), by striking the period 
                        at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(v) to assist small manufacturers.''; and
                    (B) in subparagraph (B)(iii), by inserting ``(or 
                $50,000 if the borrower is a small manufacturer)'' 
                after ``$35,000''; and
            (2) in paragraph (3)(E)--
                    (A) by striking ``In no case shall an 
                intermediary'' and inserting ``An intermediary may 
                not''; and
                    (B) by inserting before the period at the end the 
                following: ``, unless the borrower is a small 
                manufacturer. An intermediary may not make a loan to a 
                small manufacturer under this section of more than 
                $50,000, or have outstanding or committed to any small 
                manufacturer more than $50,000''.

SEC. 202. LOANS AND INVESTMENTS IN SMALL MANUFACTURERS.

    (a) Manufacturing Loans.--
            (1) Job creation or retention standards.--Section 501 of 
        the Small Business Investment Act of 1958 (15 U.S.C. 695) is 
        amended--
                    (A) in subsection (d)(2), by inserting ``increasing 
                the productive capacity of small manufacturers,'' after 
                ``area''; and
                    (B) by striking the undesignated paragraph at the 
                end and inserting the following:
    ``(e) Job Creation or Retention.--A project being funded by the 
debenture is deemed to satisfy the job creation or retention 
requirement under subsection (d)(1) if the project creates or retains--
            ``(1) 1 job opportunity for every $50,000 guaranteed by the 
        Administration; or
            ``(2) in the case of a manufacturing project, 1 job 
        opportunity for every $100,000 guaranteed by the 
        Administration.''.
            (2) Maximum amount.--Section 502(2) of the Small Business 
        Investment Act of 1958 (15 U.S.C. 696(2)) is amended to read as 
        follows:
            ``(2) Maximum amount.--Loans made by the Administration 
        under this section shall be limited to--
                    ``(A) $1,000,000 for each small business concern if 
                the loan proceeds will not be directed toward a goal or 
                project described in subparagraph (B) or (C);
                    ``(B) $1,300,000 for each small business concern if 
                the loan proceeds will be directed toward 1 or more of 
                the public policy goals described under section 
                501(d)(3); and
                    ``(C) $4,000,000 for each small business concern if 
                the loan proceeds will be directed toward manufacturing 
                projects.''.
            (3) Rule of construction.--Section 502 of the Small 
        Business Investment Act of 1958 (15 U.S.C. 696) is amended by 
        adding at the end the following:
            ``(7) Rule of construction.--A loan under this section 
        shall not be construed to be limited by any loan guaranteed by 
        the Administration under subsection (a) or (b) of section 7 of 
        the Small Business Act (15 U.S.C. 636(a) and (b)).''.
    (b) Small Business Investment Companies.--Section 303(b)(4) of the 
Small Business Investment Act of 1958 (15 U.S.C. 683(b)(4)) is 
amended--
            (1) in subparagraph (A), by striking ``(as determined by 
        the Administrator)'' and all that follows and inserting ``may 
        not exceed $115,000,000.''; and
            (2) by amending subparagraph (B) to read as follows:
                    ``(B) Exceptions.--
                            ``(i) Majority of financings in small 
                        manufacturers.--If the licensee certifies in 
                        writing that not less than 50 percent of the 
                        aggregate dollar amount of its financings are 
to small manufacturers--
                                    ``(I) the maximum amount of 
                                outstanding leverage issued to any 1 
                                company shall be $150,000,000; and
                                    ``(II) the maximum amount of 
                                outstanding leverage issued to 
                                companies that are under common control 
                                shall be $185,000,000.
                            ``(ii) Companies under common control.--The 
                        Administrator may, on a case-by-case basis--
                                    ``(I) approve an amount of leverage 
                                that exceeds the amount described in 
                                clause (i) and subparagraph (A) for 
                                companies under common control; and
                                    ``(II) impose such additional terms 
                                and conditions as the Administrator 
                                determines to be appropriate to 
                                minimize the risk of loss to the 
                                Administration in the event of 
                                default.''.
    (c) New Market Venture Capital Program.--
            (1) Purposes.--Section 352 of the Small Business Investment 
        Act (15 U.S.C. 689a) is amended--
                    (A) in paragraph (1), by inserting ``and small 
                manufacturers'' after ``enterprises''; and
                    (B) in paragraph (2), by inserting ``and small 
                manufacturers'' after ``enterprises''.
            (2) Maximum guarantee for small manufacturers.--Section 
        355(d)(1) of the Small Business Investment Act (15 U.S.C. 
        689d(d)(1)) is amended--
                    (A) by striking ``does not exceed 150 percent'' and 
                inserting ``does not exceed--
                    ``(A) 150 percent''; and
                    (B) by striking the period at the end and inserting 
                ``; and
                    ``(B) 200 percent of the private capital of the 
                company, if the New Markets Venture Capital company 
                certifies in writing that not less than 50 percent of 
                its investments are in small manufacturers.''.
    (d) Authorization of Additional Appropriations.--Section 368 of the 
Small Business Investment Act of 1958 (15 U.S.C. 689q) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Authorization of Additional Appropriations.--In addition to 
the authorizations under subsection (a), there are authorized to be 
appropriated for each of fiscal years 2005 and 2006, to remain 
available until expended, the following sums:
            ``(1) Such subsidy budget authority as may be necessary to 
        guarantee $75,000,000 of debentures under this part.
            ``(2) $15,000,000 to make grants under this part.''.

          TITLE III--EXPORT ASSISTANCE FOR SMALL MANUFACTURERS

SEC. 301. SMALL BUSINESS FOREIGN PATENT PROTECTION GRANT PILOT PROGRAM.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
adding at the end the following:
    ``(x) Small Business Foreign Patent Protection Grant Pilot 
Program.--
            ``(1) Grants authorized.--The Administrator shall make 
        grants from the Fund established under paragraph (5) for the 
        purpose of assisting small business concerns in seeking foreign 
        patent protection in accordance with this subsection.
            ``(2) Number and amount of grants.--
                    ``(A) Maximum amount.--The amount of a grant made 
                to any small business concern under this subsection may 
                not exceed $25,000, and no awardee may receive more 
                than 1 grant under this subsection.
                    ``(B) Reserved amounts.--
                            ``(i) In general.--Not less than \1/2\ of 
                        all amounts awarded under this section shall be 
                        reserved for recipients of awards under the 
                        Small Business Innovation Research Program or 
                        the Small Business Technology Transfer Program.
                            ``(ii) Exception.--Any amount reserved for 
                        grants under clause (i) for any fiscal year 
                        that has not been obligated by July 1st of such 
                        fiscal year, may be used for grants under this 
                        subsection to any small business concern.
            ``(3) Grant purposes.--Grant amounts awarded under this 
        subsection shall be used by grantees to underwrite costs 
        associated with initial foreign patent applications for 
        technologies or products developed by small business concerns, 
        and for which an application for United States patent 
        protection has already been filed.
            ``(4) Considerations.--In awarding grants under this 
        subsection, the Director of the Office of Technology shall 
        consider--
                    ``(A) the size and financial need of the applicant;
                    ``(B) the potential foreign market for the 
                technology;
                    ``(C) the timeframes for filing foreign patent 
                applications; and
                    ``(D) such other factors as the Administrator deems 
                relevant.
            ``(5) Establishment of revolving fund.--There is 
        established in the Treasury of the United States a revolving 
        fund, which shall be--
                    ``(A) known as the `Small Business Foreign Patent 
                Protection Grant Fund' (referred to in this subsection 
                as the `Fund');
                    ``(B) administered by the Office of Technology of 
                the Administration, in consultation with the National 
                Office for Development of Small Manufacturers; and
                    ``(C) used solely to fund grants under this 
                subsection and to pay the costs to the Administration 
                of administering those grants.
            ``(6) Royalty fees.--
                    ``(A) In general.--Each recipient of a grant under 
                this subsection shall pay a fee to the Administration, 
                to be deposited into the Fund, based on the export 
                sales receipts or licensing fees, if any, from the 
                product or technology that is the subject of the 
                foreign patent petition.
                    ``(B) Annual installments based on receipts.--The 
                fee required under subparagraph (A)--
                            ``(i) shall be paid to the Administration 
                        in annual installments, based on the export 
                        sales receipts or licensing fees described in 
                        subparagraph (A) that are collected by the 
                        grant recipient in that calendar year;
                            ``(ii) shall not be required to be paid in 
                        any calendar year in which no export sales 
                        receipts or licensing fees described in 
                        subparagraph (A) are collected by the grant 
                        recipient; and
                            ``(iii) shall not exceed, in total, the 
                        lesser of--
                                    ``(I) 5 percent of the total export 
                                sales receipts and licensing fees 
                                referred to in subparagraph (A); or
                                    ``(II) 4 times the amount of the 
                                grant received.
            ``(7) Administrative provisions.--Not later than 180 days 
        after the date of enactment of this subsection, the 
        Administrator shall--
                    ``(A) issue such regulations as are necessary to 
                carry out this subsection; and
                    ``(B) establish appropriate application and other 
                administrative procedures, as the Administrator deems 
                necessary.
            ``(8) Report.--The Administrator shall, not later than 
        January 31, 2008, submit a report to Congress on the grants 
        authorized by this subsection, which report shall include, 
        categorized by year and total--
                    ``(A) the number of grant recipients under this 
                subsection since the date of enactment of this 
                subsection;
                    ``(B) the number and amount of sales or licensing 
                fees of such grant recipients that have made foreign 
                sales (or granted licenses to make foreign sales) and a 
                brief description of each technology or product;
                    ``(C) the number of technologies or products 
                developed under the Small Business Innovation Research 
                Program or the Small Business Technology Transfer 
                Program, and the amounts of such sales (or licenses);
                    ``(D) the total amount of fees paid into the Fund 
                by recipients of grants under this subsection in 
                accordance with paragraph (6);
                    ``(E) recommendations for any adjustment in the 
                percentages specified in paragraph (6)(B)(iii)(I) or 
                the amount specified in paragraph (6)(B)(iii)(II) 
                necessary to reduce to zero the cost to the 
                Administration of making grants under this subsection;
                    ``(F) any recommendations regarding the grant 
                amount; and
                    ``(G) any recommendations of the Administrator 
                regarding improvements to the programs, whether 
                authorization for grants under this subsection should 
                be extended, and any necessary legislation related to 
                such an extension.
            ``(9) Staffing.--The Administrator shall ensure that there 
        are sufficient staff in the Office of Technology, including not 
        fewer than 2 full-time employees, to carry out the grant 
        program established under this subsection.
            ``(10) Authorization of appropriations.--There are 
        authorized to be appropriated to the Fund, to remain available 
        until expended--
                    ``(A) $2,500,000 for fiscal year 2005;
                    ``(B) $5,000,000 for fiscal year 2006;
                    ``(C) $7,500,000 for fiscal year 2007; and
                    ``(D) $10,000,000 for each of fiscal years 2008 and 
                2009.''.
                                 <all>
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