```

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2821 Introduced in Senate (IS)]

108th CONGRESS
  2d Session
                                S. 2821

 To reauthorize certain programs of the Small Business Administration, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 21, 2004

  Ms. Snowe (for herself and Mr. Bond) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 A BILL

 
 To reauthorize certain programs of the Small Business Administration, 
                        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 ``Small Business 
Reauthorization and Manufacturing Assistance Act of 2004''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--SMALL MANUFACTURERS ASSISTANCE

Sec. 101. Combination financing.
Sec. 102. Loan guarantee fees.
Sec. 103. Express loan provisions.
Sec. 104. Standards for loans made with deferred participation.
Sec. 105. Increase in guarantee amount and institution of associated 
                            fee.
Sec. 106. Debenture size.
Sec. 107. Job requirements.
Sec. 108. Report regarding national database of small manufacturers.
Sec. 109. Clarification of maximum surety bond guarantee.
Sec. 110. International trade.
Sec. 111. Definition of equity capital.
Sec. 112. Aggregate limitations.
Sec. 113. Investment of excess funds.
                        TITLE II--AUTHORIZATIONS

Sec. 201. Program authorization levels.
Sec. 202. Additional reauthorizations.
Sec. 203. Reauthorization of Paul D. Coverdell Drug-Free Workplace 
                            Program.
        TITLE III--ADMINISTRATION ACCOUNTABILITY AND MANAGEMENT

Sec. 301. Document retention and investigations.
Sec. 302. Management of the Small Business Administration.
             TITLE IV--ENTREPRENEURIAL DEVELOPMENT PROGRAMS

           Subtitle A--Office of Entrepreneurial Development

Sec. 401. Service Corps of Retired Executives.
Sec. 402. Small business development center program.
          Subtitle B--Office of Veterans Business Development

Sec. 431. Advisory committee on veterans business affairs.
Sec. 432. Outreach grants for veterans.
Sec. 433. Authorization of appropriations.
Sec. 434. National veterans business development corporation.
           TITLE V--SMALL BUSINESS PROCUREMENT OPPORTUNITIES

Sec. 501. Women-owned small business concerns; authorities of 
                            administrator.
Sec. 502. Procurement center representatives.

                TITLE I--SMALL MANUFACTURERS ASSISTANCE

SEC. 101. COMBINATION FINANCING.

    (a) Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended by adding at the end the following:
    ``(31) Combination financing.--
            ``(A) Definitions.--As used in this paragraph--
                    ``(i) the term `combination financing' means 
                financing comprised of a loan guaranteed under this 
                subsection and a commercial loan; and
                    ``(ii) the term `commercial loan' means a loan 
                which is part of a combination financing and no portion 
                of which is guaranteed by the Federal Government.
            ``(B) Applicability.--This paragraph applies to a loan 
        guarantee obtained by a small business concern under this 
        subsection, if the small business concern also obtains a 
        commercial loan.
            ``(C) Commercial loan amount.--In the case of any 
        combination financing, the amount of the commercial loan which 
        is part of such financing shall not exceed the gross amount of 
        the loan guaranteed under this subsection which is part of such 
        financing.
            ``(D) Commercial loan provisions.--The commercial loan 
        obtained by the small business concern--
                    ``(i) may be made by the participating lender that 
                is providing financing under this subsection or by a 
                different lender;
                    ``(ii) may be secured by a senior lien; and
                    ``(iii) may be made by a lender in the Preferred 
                Lenders Program, if applicable.
            ``(E) Commercial loan fee.--A one-time fee in an amount 
        equal to 0.7 percent of the amount of the commercial loan shall 
        be paid by the lender to the Administration if the commercial 
        loan has a senior credit position to that of the loan 
        guaranteed under this subsection. Any fee under the preceding 
        sentence shall be paid by the participating lender and shall 
        not be charged to the borrower.
            ``(F) Deferred participation loan security.--A loan 
        guaranteed under this paragraph may be secured by a 
        subordinated lien.
            ``(G) Completion of application processing.--The 
        Administrator shall complete processing of an application for 
        combination financing under this paragraph pursuant to the 
        program authorized by this subsection as it was operating on 
        October 1, 2003.
            ``(H) Business loan eligibility.--Any standards prescribed 
        by the Administrator relating to the eligibility of small 
        business concerns to obtain combination financing under this 
        subsection, which are in effect on the September 1, 2004, shall 
        apply with respect to combination financings made under this 
        paragraph. Any modifications to such standards by the 
        Administrator after such date shall not unreasonably restrict 
        the availability of combination financing under this paragraph 
        relative to the availability of such financing before such 
        modifications.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 102. LOAN GUARANTEE FEES.

    (a) In General.--Section 7(a)(23)(A) of the Small Business Act (15 
U.S.C. 636(a)(23)(A)) is amended to read as follows:
            ``(A) Percentage.--With respect to each loan guaranteed 
        under this subsection, the Administrator shall, in accordance 
        with such terms and procedures as the Administrator shall 
        establish by regulation, assess and collect an annual fee in an 
        amount equal to 0.36 percent of the outstanding balance of the 
        deferred participation share of the loan.
    (b) Guarantee Fees.--Paragraph (18) of subsection (a) of section 7 
of the Small Business Act (15 U.S.C. 636(a)(18) is amended to read as 
follows:
            ``(18) Guarantee fees.--With respect to each loan 
        guaranteed under this subsection (other than a loan that is 
        repayable in 1 year or less), the Administration shall collect 
        a guarantee fee, which shall be payable by the participating 
        lender, and may be charged to the borrower, as follows:
                    ``(A) A guarantee fee equal to 1 percent of the 
                deferred participation share of a total loan amount 
                that is not more than $150,000.
                    ``(B) A guarantee fee equal to 2.5 percent of the 
                deferred participation share of a total loan amount 
                that is more than $150,000, but not more than $700,000.
                    ``(C) A guarantee fee equal to 3.5 percent of the 
                deferred participation share of a total loan amount 
                that is more than $700,000.
                    ``(D) In addition to the fee under subparagraph 
                (C), a guarantee fee equal to 0.25 percent of the 
                amount, if any, by which the deferred participation 
                share of the loan exceeds $1,000,000.''.

SEC. 103. EXPRESS LOAN PROVISIONS.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by section 101, is further amended by adding at the 
end the following new paragraph:
            ``(32) Express loan provisions.--
                    ``(A) Definitions.--As used in this paragraph:
                            ``(i) The term `express lender' means any 
                        lender authorized by the Administrator to 
                        participate in the Express Loan Program.
                            ``(ii) The term `express loan' means any 
                        loan made pursuant to this paragraph in which a 
                        lender utilizes to the maximum extent 
                        practicable its own loan analyses, procedures, 
                        and documentation.
                            ``(iii) The term `Express Loan Program' 
                        means the program for express loans established 
                        by the Administrator under paragraph (25)(B), 
                        as in existence on April 5, 2004, with a 
                        guaranty rate of not more than 50 percent.
                    ``(B) Restriction to express lender.--The authority 
                to make an express loan shall be limited to those 
                lenders deemed qualified to make such loans by the 
                Administrator. Designation as an express lender for 
                purposes of making an express loan shall not prohibit 
                such lender from taking any other action authorized by 
                the Administrator for that lender pursuant to this 
                subsection.
                    ``(C) Grandfathering of existing lenders.--Any 
                express lender shall retain such designation unless the 
                Administrator determines that the express lender has 
                violated the law or regulations promulgated by the 
                Administrator or modifies the requirements to be an 
                express lender and the lender no longer satisfies those 
                requirements.
                    ``(D) Maximum loan amount.--The maximum loan amount 
                under the Express Loan Program is $2,000,000.
                    ``(E) Option to participate.--Except as otherwise 
                provided in this paragraph, the Administrator shall 
                take no regulatory, policy, or administrative action, 
                without regard to whether such action requires 
                notification pursuant to paragraph (24), that has the 
                effect of--
                            ``(i) requiring a lender to make an express 
                        loan pursuant to subparagraph (D);
                            ``(ii) limiting or modifying any term or 
                        condition of deferred participation loans made 
                        under this subsection (other than express 
                        loans) unless the Administrator imposes the 
                        same limit or modification on express loans;
                            ``(iii) transferring or re-allocating 
                        staff, staff responsibilities, resources, or 
                        funding, if the result of such transfer or re-
                        allocation would be to increase the average 
                        loan processing, approval, or disbursement time 
                        above the averages for those functions as of 
                        October 1, 2003, for loan guarantees approved 
                        under this subsection by employees of the 
                        Administration or through the Preferred Lenders 
                        Program; or
                            ``(iv) otherwise providing any incentive or 
                        disincentive which encourages lenders or 
                        borrowers to make or obtain loans under the 
                        Express Loan Program instead of under the 
                        general loan authority of this subsection.
                    ``(F) Collection and reporting of data.--For all 
                loans in excess of $250,000 made pursuant to the 
                authority set forth in subparagraph (D), the 
                Administrator shall, to the extent practicable, collect 
                data on the purpose for each such loan. The 
                Administrator shall report monthly to the Committee on 
                Small Business and Entrepreneurship of the Senate and 
                the Committee on Small Business of the House of 
                Representatives on the number of such loans and their 
                purposes.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 104. STANDARDS FOR LOANS MADE WITH DEFERRED PARTICIPATION.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by section 101 and section 103, is further amended 
by adding at the end the following new paragraph:
            ``(33) Standards for loans made with deferred 
        participation.--Deferred participation loans made on or after 
        October 1, 2004, under this subsection shall have the same 
        terms and conditions (including maximum gross loan amounts and 
        collateral requirements) as were applicable to loans made under 
        this subsection on October 1, 2003, except as otherwise 
        provided in paragraph (18)(D), paragraph (31), or paragraph 
        (32) and subject to the $1,500,000 limitation on the total 
        amount outstanding and committed in paragraph (3)(A), as in 
        effect on October 1, 2004. This paragraph shall not preclude 
        the Administrator from taking such action as necessary to 
        maintain the loan program carried out under this subsection, 
        subject to appropriations.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 105. INCREASE IN GUARANTEE AMOUNT AND INSTITUTION OF ASSOCIATED 
              FEE.

    (a) Increase in Amount Permitted to Be Outstanding and Committed.--
Section 7(a)(3) of the Small Business Act (15 U.S.C. 636(a)(3)) is 
amended--
            (1) in subparagraph (A), by striking ``$1,000,000'' and 
        inserting ``$1,500,000''; and
            (2) in subparagraph (B), by striking ``$1,250,000, of which 
        not more than $750,000'' and inserting ``$1,750,000, of which 
        not more than $1,250,000''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 106. DEBENTURE SIZE.

    Section 502(2) of the Small Business Investment Act of 1958 (15 
U.S.C. 696) is amended to read as follows:
            ``(2) Maximum amount.--Loans made by the Administration 
        under this section shall be limited to--
                    ``(A) $1,500,000 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) $2,000,000 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 projects for 
                small manufacturers.''.

SEC. 107. JOB REQUIREMENTS.

    Section 501 of the Small Business Investment Act of 1958 (15 U.S.C. 
695) is amended by adding at the end the following new subsection:
    ``(e)(1) A project meets the objective set forth in subsection 
(d)(1) if the project creates or retains one job for every $50,000 
guaranteed by the Administration, except that the amount is $100,000 in 
the case of a project of a small manufacturer.
    ``(2) Paragraph (1) does not apply to a project for which 
eligibility is based on the objectives set forth in paragraph (2) or 
(3) of subsection (d), if the development company's portfolio of 
outstanding debentures creates or retains one job for every $50,000 
guaranteed by the Administration.
    ``(3) For projects in Alaska, Hawaii, State-designated enterprise 
zones, empowerment zones and enterprise communities, labor surplus 
areas, as determined by the Secretary of Labor, and for other areas 
designated by the Administrator, the development company's portfolio 
may average not more than $75,000 per job created or retained.
    ``(4) Loans for projects of small manufacturers shall be excluded 
from calculations under paragraph (2) or (3).
    ``(5) Under regulations prescribed by the Administrator, the 
Administrator may waive any requirement of this subsection (other than 
paragraph (4)).
    ``(6) As used in this subsection, the term `small manufacturer' 
means any small business concern if--
            ``(A) the primary business of the concern is classified in 
        sector 31, 32, or 33 of the North American Industrial 
        Classification System; and
            ``(B) all of its facilities that are used for production 
        are located in the United States.''.

SEC. 108. REPORT REGARDING NATIONAL DATABASE OF SMALL MANUFACTURERS.

    (a) Study and Report.--The Administrator, in consultation with the 
association of small business development centers authorized by section 
21(k) of the Small Business Act (15 U.S.C. 648(k)), shall--
            (1) study the feasibility of creating a national database 
        of small manufacturers that institutions of higher education 
        could access for purposes of meeting procurement needs; and
            (2) not later than one year after the date of the enactment 
        of this Act, transmit a report to the Congress regarding the 
        findings and conclusions of such study.
    (b) Cost Estimate.--The report referred to in subsection (a)(2) 
shall include an estimate of the cost of creating and maintaining the 
database described in subsection (a)(1).
    (c) Definition.--As used in this section, the term ``small 
manufacturer'' means any small business concern if--
            (1) the primary business of the concern is classified in 
        sector 31, 32, or 33 of the North American Industrial 
        Classification System; and
            (2) all of its facilities that are used for production are 
        located in the United States.

SEC. 109. CLARIFICATION OF MAXIMUM SURETY BOND GUARANTEE.

    (a) In General.--Section 411(a)(1) of the Small Business Investment 
Act of 1958 (15 U.S.C. 694b(a)(1)) is amended by striking ``contract up 
to'' and inserting ``total work order or contract amount at the time of 
bond execution that does not exceed''.

SEC. 110. INTERNATIONAL TRADE.

    Section 7(a)(16) of the Small Business Act (15 U.S.C. 636(a)(16)) 
is amended to read as follows:
            ``(16) International trade.--
                    ``(A) In general.--If the Administrator determines 
                that a loan guaranteed under this subsection will allow 
                an eligible small business concern in an industry 
                engaged in or adversely affected by international trade 
                to improve its competitive position, the Administrator 
                may make such loan to assist such concern in--
                            ``(i) the financing of the acquisition, 
                        construction, renovation, modernization, 
                        improvement, or expansion of productive 
                        facilities or equipment to be used in the 
                        United States in the production of goods and 
                        services involved in international trade; or
                            ``(ii) the refinancing of existing 
                        indebtedness, which is not structured with 
                        reasonable terms and conditions.
                    ``(B) Security.--Each loan made under this 
                paragraph shall be secured by a first lien position or 
                first mortgage on the property or equipment financed by 
                the loan or on other assets of the small business 
                concern.
                    ``(C) Engaged in or adversely affected by 
                international trade.--For purposes of this paragraph, a 
                small business concern shall be considered to be 
                engaged in or adversely affected by international trade 
                if the small business concern is determined by the 
                Administrator (under regulations prescribed by the 
                Administrator) to be--
                            ``(i) in a position to significantly expand 
                        existing export markets or develop new export 
                        markets; or
                            ``(ii) adversely affected by import 
                        competition in that it--
                                    ``(I) is confronting increased 
                                direct competition with foreign firms 
                                in the relevant market; and
                                    ``(II) can demonstrate injury 
                                attributable to such competition.
                    ``(D) Findings by federal agencies.--For purposes 
                of subparagraph (C)(ii)(II), the Administrator shall 
                accept any finding of injury by--
                            ``(i) the International Trade Commission; 
                        or
                            ``(ii) the Secretary of Commerce, pursuant 
                        to chapter 3 of title II of the Trade Act of 
                        1974 (19 U.S.C. 2341 et seq.).''.

SEC. 111. DEFINITION OF EQUITY CAPITAL.

    Section 303(g)(4) of the Small Business Investment Act of 1958 (15 
U.S.C. 683(g)(4)) is amended--
            (1) in the first sentence, by striking ``subsection'' and 
        inserting ``Act''; and
            (2) in the second sentence, by striking ``contingent upon 
        and limited to the extent of earnings'' and inserting ``from 
        such sources as may be defined by the Administrator''.

SEC. 112. AGGREGATE LIMITATIONS.

    Section 306(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 686(a)) is amended by striking ``shall not exceed 20 per 
centum'' and all that follows and inserting the following: ``shall not, 
without the approval of the Administrator, exceed the greater of--
            ``(1) 20 percent of the private capital of such company; or
            ``(2) 10 percent of the sum of--
                    ``(A) the private capital of such company;
                    ``(B) all leverage (whether or not outstanding) 
                issued to such company; and
                    ``(C) all unexercised commitments issued to such 
                company by the Administration.''.

SEC. 113. INVESTMENT OF EXCESS FUNDS.

    Section 308(b) of the Small Business Investment Act of 1958 (15 
U.S.C. 687(b)) is amended by striking the last sentence and inserting 
the following: ``Such companies with outstanding financings are 
authorized to invest funds not reasonably needed for their operations 
in--
            ``(1) direct obligations of, or obligations guaranteed as 
        to principal and interest by, the United States;
            ``(2) in certificates of deposit maturing within 1 year 
        after issuance by any institution, whose accounts are federally 
        insured, or in savings accounts of such institution; or
            ``(3) in such other investment securities, mutual funds, or 
        instruments that solely consist of, invest in, or are supported 
        by the instruments described in paragraphs (1) and (2).''.

                        TITLE II--AUTHORIZATIONS

SEC. 201. PROGRAM AUTHORIZATION LEVELS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended--
            (1) in subsection (a)(1), by striking ``certification'' 
        each place that term appears and inserting ``accreditation'';
            (2) by striking subsections (c) through (h) and inserting 
        the following:
    ``(c) Disaster Mitigation Pilot Program.--The following program 
levels are authorized for loans under section 7(b)(1)(C):
            ``(1) $15,000,000 for fiscal year 2005.
            ``(2) $15,000,000 for fiscal year 2006.'';
            (3) by redesignating subsection (i) as subsection (d); and
            (4) by adding at the end the following:
    ``(e) Fiscal Year 2005.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2005:
                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                            ``(i) $75,000,000 in technical assistance 
                        grants, as provided in section 7(m); and
                            ``(ii) $105,000,000 in direct loans, as 
                        provided in 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $23,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                            ``(i) $16,500,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $6,000,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) of this Act and section 504 of 
                        the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                            ``(i) $4,250,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $3,250,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administration is authorized to enter into 
                guarantees not to exceed $6,000,000,000, of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administration is authorized to make 
                grants or enter into cooperative agreements for a total 
                amount of $7,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to 
                the Administration for fiscal year 2005 such sums as 
                may be necessary to carry out the provisions of this 
                Act not elsewhere provided for, including 
                administrative expenses and necessary loan capital for 
                disaster loans pursuant to section 7(b), and to carry 
                out title IV of the Small Business Investment Act of 
                1958, including salaries and expenses of the 
                Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2005--
                            ``(i) no funds are authorized to be used as 
                        loan capital for the loan program authorized by 
                        section 7(a)(21) except by transfer from 
                        another Federal department or agency to the 
                        Administration, unless the program level 
                        authorized for general business loans under 
                        paragraph (1)(B)(i) is fully funded; and
                            ``(ii) the Administration may not approve 
                        loans on its own behalf or on behalf of any 
                        other Federal department or agency, by contract 
                        or otherwise, under terms and conditions other 
                        than those specifically authorized under this 
                        Act or the Small Business Investment Act of 
                        1958, except that it may approve loans under 
                        section 7(a)(21) of this Act in gross amounts 
                        of not more than $2,000,000.
    ``(f) Fiscal Year 2006.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2006:
                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                            ``(i) $80,000,000 in technical assistance 
                        grants, as provided in section 7(m); and
                            ``(ii) $110,000,000 in direct loans, as 
                        provided in 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $25,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                            ``(i) $17,000,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $7,500,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) of this Act and section 504 of 
                        the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                            ``(i) $4,500,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $3,500,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administration is authorized to enter into 
                guarantees not to exceed $6,000,000,000, of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administration is authorized to make 
                grants or enter into cooperative agreements for a total 
                amount of $7,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to 
                the Administration for fiscal year 2006 such sums as 
                may be necessary to carry out the provisions of this 
                Act not elsewhere provided for, including 
                administrative expenses and necessary loan capital for 
                disaster loans pursuant to section 7(b), and to carry 
                out title IV of the Small Business Investment Act of 
                1958, including salaries and expenses of the 
                Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2006--
                            ``(i) no funds are authorized to be used as 
                        loan capital for the loan program authorized by 
                        section 7(a)(21) except by transfer from 
                        another Federal department or agency to the 
                        Administration, unless the program level 
                        authorized for general business loans under 
                        paragraph (1)(B)(i) is fully funded; and
                            ``(ii) the Administration may not approve 
                        loans on its own behalf or on behalf of any 
                        other Federal department or agency, by contract 
                        or otherwise, under terms and conditions other 
                        than those specifically authorized under this 
                        Act or the Small Business Investment Act of 
                        1958, except that it may approve loans under 
                        section 7(a)(21) of this Act in gross amounts 
                        of not more than $2,000,000.''.

SEC. 202. ADDITIONAL REAUTHORIZATIONS.

    (a) Extension of Program Authority.--Any program, authority, or 
provision, including any pilot program, that was authorized under the 
Small Business Act (15 U.S.C. 631 et seq.) or the Small Business 
Investment Act of 1958 (15 U.S.C. 661 et seq.) as of September 30, 
2004, such authority having expired, or scheduled to expire, on or 
after September 30, 2004, shall remain authorized during the period 
beginning on October 1, 2004 and ending on September 30, 2006, under 
the same terms and conditions as in effect on the day before such 
expiration or scheduled expiration, except as otherwise specifically 
provided in this Act or amendments by this Act.
    (b) Small Business Development Centers.--
            (1) Authorization of appropriations.--Section 21(a)(4)(C) 
        of the Small Business Act (15 U.S.C. 648(a)(4)(C)) is amended--
                    (A) by amending clause (vii) to read as follows:
                    ``(vii) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                subparagraph--
                            ``(I) $130,000,000 for fiscal year 2005; 
                        and
                            ``(II) $135,000,000 for fiscal year 
                        2006.'';
                    (B) by redesignating clause (viii) as clause (ix); 
                and
                    (C) by inserting after clause (vii) the following:
                    ``(viii) Limitation.--From the funds appropriated 
                pursuant to clause (vii), the Administration shall 
                reserve not less than $1,000,000 in each fiscal year to 
                develop portable assistance for startup and 
                sustainability non-matching grant programs to be 
                conducted by eligible small business development 
                centers in communities that are economically challenged 
                as a result of a business or government facility down-
                sizing or closing, which has resulted in the loss of 
                jobs or small business instability. A non-matching 
                grant under this clause shall not exceed $100,000, and 
                shall be used for small business development center 
                personnel expenses and related small business programs 
                and services.''.
            (2) Drug-free workplace programs.--Section 21(c)(3)(T) of 
        the Small Business Act (15 U.S.C. 648(c)(3)(T)) is amended by 
        striking ``October 1, 2003'' and inserting ``October 1, 2006''.

SEC. 203. REAUTHORIZATION OF PAUL D. COVERDELL DRUG-FREE WORKPLACE 
              PROGRAM.

    (a) Eligibility of Drug-Free Communities Coalitions.--Section 
27(a)(2)(D) of the Small Business Act (15 U.S.C. 654(a)(2)(D)) is 
amended to read as follows:
                    ``(D)(i) the purpose of which is--
                            ``(I) to develop comprehensive drug-free 
                        workplace programs or to supply drug-free 
                        workplace services; or
                            ``(II) to provide other forms of assistance 
                        and services to small business concerns; or
                    ``(ii) that is eligible to receive a grant under 
                chapter 2 of the National Narcotics Leadership Act of 
                1988 (21 U.S.C. 1521 et seq.).''.
    (b) Additional Grants for Programs Carried Out in Cooperation With 
Small Business Development Centers.--Section 27(b) the Small Business 
Act (15 U.S.C. 654) is amended--
            (1) by striking ``There is established'' and inserting the 
        following:
            ``(1) In general.--There is established''; and
            (2) by adding at the end the following:
            ``(2) Additional grants for programs carried out in 
        cooperation with small business development centers.--The 
        Administrator may make an additional grant to, or enter into a 
        cooperative agreement or contract with, any grantee under 
        paragraph (1) for the purpose of providing, in cooperation with 
        one or more small business development centers, technical 
        assistance to small business concerns seeking to establish a 
        drug-free workplace program.''.
            ``(3) 2-year grants.--Each grant made under this subsection 
        shall be for a period of 2 years, subject to an annual 
        performance review by the Administrator.''.
    (c) Evaluation and Coordination.--Section 27 of the Small Business 
Act (15 U.S.C. 654) is amended--
            (1) by striking subsection (d);
            (2) by redesignating subsections (e), (f), and (g) as 
        subsections (f), (g), and (h), respectively; and
            (3) by inserting after subsection (c) the following:
    ``(d) Technical Assistance.--The Administrator, after consultation 
with the Director of the Center for Substance Abuse and Prevention, 
shall provide technical assistance and information to each eligible 
intermediary receiving a grant under subsection (b) regarding the most 
effective practices in establishing and carrying out drug-free 
workplace programs.
    ``(e) Evaluation of Program.--
            ``(1) Data collection system.--Each eligible intermediary 
        receiving a grant under this section shall establish a system 
        to collect and analyze information regarding the effectiveness 
        of drug-free workplace programs established with assistance 
        provided under this section through the intermediary, including 
        information regarding any increase or decrease among employees 
        in drug use, awareness of the adverse consequences of drug use, 
        and absenteeism, injury, and disciplinary problems related to 
        drug use. Such system shall conform to such requirements as the 
        Administrator, after consultation with the Director of the 
        Center for Substance Abuse and Prevention, may prescribe. Not 
        more than 5 percent of the amount of each grant made under 
        subsection (b) shall be used by the eligible intermediary to 
        carry out this paragraph.
            ``(2) Method of evaluation.--The Administrator, after 
        consultation with the Director of the Center for Substance 
        Abuse and Prevention, shall provide technical assistance and 
        guidance to each eligible intermediary receiving a grant under 
        subsection (b) regarding the collection and analysis of 
        information to evaluate the effectiveness of drug-free 
        workplace programs established with assistance provided under 
        this section, including the information referred to in 
        paragraph (1). Such assistance shall include the identification 
        of additional information suitable for measuring the benefits 
        of drug-free workplace programs to the small business concern 
        and to the concern's employees and the identification of 
        methods suitable for analyzing such information.
            ``(3) Study and report.--Not later than 18 months after the 
        date of enactment of the Small Business Reauthorization and 
        Manufacturing Assistance Act of 2004, the Administrator, in 
        consultation with the Secretary of Labor, the Secretary of 
        Health and Human Services, and the Director of National Drug 
        Control Policy, shall--
                    ``(A) compile and analyze the information collected 
                under this subsection;
                    ``(B) identify trends in such information;
                    ``(C) evaluate the effectiveness of the drug-free 
                workplace programs established with assistance provided 
                under this section; and
                    ``(D) submit to the Congress a report that 
                describes the results of the analysis conducted under 
                subparagraph (A), the trends identified under 
                subparagraph (B), and the results of the evaluation 
                conducted under subparagraph (C).''.
    (d) Authorizations.--Section 27(h) of the Small Business Act, as 
redesignated by subsection (c)(2), is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section, except for subsection (b)(2), 
        $5,000,000 for each of the fiscal years 2005 and 2006, which 
        shall remain available until expended.'';
            (2) by redesignating paragraph (2) as paragraph (3);
            (3) by inserting after paragraph (1) the following:
            ``(2) Additional authorization.--There are authorized to be 
        appropriated to carry out subsection (b)(2), $1,500,000 for 
        each of the fiscal years 2005 and 2006, which shall remain 
        available until expended.'';
            (4) by amending paragraph (3), as redesignated, to read as 
        follows:
            ``(3) Small business development centers.--Of the total 
        amount made available under this subsection for fiscal years 
        2005 and 2006, not more than the greater of 10 percent or 
        $500,000 may be used to carry out section 21(c)(3)(T).''; and
            (5) by adding at the end the following:
            ``(4) Administrative costs.--Of the total amount made 
        available under this subsection for any fiscal year, not more 
        than 5 percent of such amount shall be used for administrative 
        costs, which percentage shall be determined without regard to 
        the administrative costs of eligible intermediaries.''.

        TITLE III--ADMINISTRATION ACCOUNTABILITY AND MANAGEMENT

SEC. 301. DOCUMENT RETENTION AND INVESTIGATIONS.

    Section 10(e) of the Small Business Act (15 U.S.C. 639(e)) is 
amended by striking the matter preceding paragraph (2) and inserting 
the following:
    ``(e) Document Retention; Investigations.--
            ``(1) Document retention.--The Administrator and the 
        Inspector General of the Administration shall--
                    ``(A) retain all documents and records, including 
                correspondence, records of inquiry, memoranda 
                (including those relating to all investigations 
                conducted by or for the Administration), reports, 
                studies, analyses, contracts, agreements, opinions, 
                computer entries, e-mail messages, forms, manuals, 
                briefing materials, press releases, and books for a 
                period of not less than 2 years from the date such 
                documents are created;
                    ``(B) keep the items described in subparagraph (A) 
                available at all times for inspection and examination 
                by the Committee on Small Business and Entrepreneurship 
                of the Senate and the Committee on Small Business of 
                the House of Representatives, or their duly authorized 
                representatives; and
                    ``(C) upon the written request of the Committee on 
                Small Business and Entrepreneurship of the Senate or 
                the Committee on Small Business of the House of 
                Representatives pursuant to subparagraph (B), the 
                Administrator or the Inspector General, as applicable, 
                shall make such documents or records available to the 
                requesting committee or its duly authorized 
                representative within 5 business days of the request, 
                and if a document or record cannot be made available 
                within such timeframe, the Administrator or the 
                Inspector General, as applicable, shall provide the 
                requesting committee with a written explanation stating 
                the reason that each document or record requested has 
                not been provided and a date certain for its 
                production.''.

SEC. 302. MANAGEMENT OF THE SMALL BUSINESS ADMINISTRATION.

    Section 4 of the Small Business Act (15 U.S.C. 633) is amended--
            (1) by striking ``Sec. 4.'' and inserting the following:

``SEC. 4. MANAGEMENT OF THE SMALL BUSINESS ADMINISTRATION.'';

            (2) in subsection (a), by striking ``(a)'' and inserting 
        the following:
    ``(a) Establishment.--'';
            (3) in subsection (b)--
                    (A) by striking ``(b)(1)'' and inserting the 
                following:
    ``(b) Authority of Administrator.--
            ``(1) In general.--
                    ``(A) Appointment.--'';
                    (B) in paragraph (1)--
                            (i) by striking ``The Administrator shall 
                        not engage'' and inserting the following:
                    ``(B) Sole employment.--The Administrator shall not 
                engage'';
                            (ii) by striking ``In carrying out'' and 
                        inserting the following:
                    ``(C) Nondiscrimination; special consideration for 
                veterans.--In carrying out''; and
                            (iii) by striking ``The President'' and 
                        inserting the following:
                    ``(D) Appointment of deputy administrator; 
                associate administrators.--The President''; and
                    (C) in paragraph (2), by striking ``the 
                Administrator also'' and inserting ``Responsibilities 
                of Administrator.--The Administrator''; and
            (4) by adding at the end the following:
    ``(g) Office of Lender Oversight.--The Director of the Office of 
Lender Oversight shall--
            ``(1) formulate, execute, and promote policies and 
        procedures of the Administration that provide adequate and 
        effective oversight and review of lenders participating in, or 
        applying to participate in, the loan and loan guaranty programs 
        for small business concerns under this Act and the Small 
        Business Investment Act of 1958 (15 U.S.C. 661 et seq.); and
            ``(2) report directly to the Chief Financial Officer of the 
        Administration.''.

             TITLE IV--ENTREPRENEURIAL DEVELOPMENT PROGRAMS

           Subtitle A--Office of Entrepreneurial Development

SEC. 401. SERVICE CORPS OF RETIRED EXECUTIVES.

    (a) In General.--Section 8(b)(1)(B) of the Small Business Act (15 
U.S.C. 637(b)(1)(B)) is amended--
            (1) by striking ``this Act; and to'', and inserting ``this 
        Act. To'';
            (2) by striking ``may maintain at its headquarters'' and 
        all that follows through ``That any'' and inserting ``shall 
        maintain at its headquarters and pay the salaries, benefits, 
        and expenses of a volunteer and professional staff to manage 
        and oversee the program. Any''; and
            (3) by striking the period at the end and inserting the 
        following: ``and the management of the contributions 
        received.''.
    (b) Regulations.--The Administrator shall, not later than 180 days 
after the date of enactment of this Act, promulgate regulations to 
carry out the amendments made by subsection (a).
    (c) Extension of Cosponsorship Authority.--Section 401(a)(2) of the 
Small Business Administration Reauthorization and Amendments Act of 
1994 (15 U.S.C. 637 note, 108 Stat. 4190) is amended by striking 
``September 30, 2003'' and inserting ``September 30, 2006''.

SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.

    (a) Privacy Requirements.--Section 21(a) of the Small Business Act 
(15 U.S.C. 648(a)) is amended by adding at the end the following:
            ``(7) Privacy requirements.--
                    ``(A) In general.--A small business development 
                center, consortium of small business development 
                centers, or contractor or agent of a small business 
                development center may not disclose the name, address, 
                or telephone number of any individual or small business 
                concern receiving assistance under this section without 
                the consent of such individual or small business 
                concern, unless--
                            ``(i) the Administrator is ordered to make 
                        such a disclosure by a court in any civil or 
                        criminal enforcement action initiated by a 
                        Federal or State agency; or
                            ``(ii) the Administrator considers such a 
                        disclosure to be necessary for the purpose of 
                        conducting a financial audit of a small 
                        business development center, but a disclosure 
                        under this clause shall be limited to the 
                        information necessary for such audit.
                    ``(B) Administration use of information.--This 
                section shall not--
                            ``(i) restrict Administration access to 
                        program activity data; or
                            ``(ii) prevent the Administration from 
                        using client information (other than the 
                        information described in subparagraph (A)) to 
                        conduct client surveys.
                    ``(C) Regulations.--The Administrator shall issue 
                regulations to establish standards for requiring 
                disclosures during a financial audit under subparagraph 
                (A)(ii).''.
    (b) Term Change.--Section 21(k) of the Small Business Act (15 
U.S.C. 648(k)) is amended--
            (1) by striking ``Certification'' each place it appears and 
        inserting ``Accreditation''; and
            (2) by striking ``certification'' each place it appears and 
        inserting ``accreditation''.

          Subtitle B--Office of Veterans Business Development

SEC. 431. ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS.

    (a) Retention of Duties.--Section 33(h) of the Small Business Act 
(15 U.S.C. 657c(h)) is amended by striking ``October 1, 2004'' and 
inserting ``October 1, 2006''.
    (b) Extension of Authority.--Section 203(h) of the Veterans 
Entrepreneurship and Small Business Development Act of 1999 (15 U.S.C. 
657b note) is amended by striking ``September 30, 2004'' and inserting 
``September 30, 2006''.

SEC. 432. OUTREACH GRANTS FOR VETERANS.

    Section 8(b)(17) of the Small Business Act (15 U.S.C. 637(b)(17)) 
is amended by inserting before the period at the end the following: ``, 
veterans, and members of a reserve component of the Armed Forces''.

SEC. 433. AUTHORIZATION OF APPROPRIATIONS.

    Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by 
adding at the end the following:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated for carrying out the provisions of this section--
            ``(1) $1,500,000 for fiscal year 2005; and
            ``(2) $2,000,000 for fiscal year 2006.''.

SEC. 434. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

    Section 33(a) of the Small Business Act (15 U.S.C. 657c(a)) is 
amended by adding at the end the following: ``Notwithstanding any other 
provision of law, the Corporation is a private entity and is not an 
agency, instrumentality, authority, entity, or establishment of the 
United States Government.''.

           TITLE V--SMALL BUSINESS PROCUREMENT OPPORTUNITIES

SEC. 501. WOMEN-OWNED SMALL BUSINESS CONCERNS; AUTHORITIES OF 
              ADMINISTRATOR.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended--
            (1) by amending subsection (m) to read as follows:
    ``(m) Procurement Program for Women-owned Small Business 
Concerns.--
            ``(1) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Small business concern owned and controlled 
                by women.--The term `small business concern owned and 
                controlled by women' has the meaning given such term in 
                section 3(n), except that ownership shall be determined 
                without regard to any community property law.
            ``(2) Authority to restrict competition.--In accordance 
        with this subsection, a contracting officer may restrict 
        competition for any contract for the procurement of goods or 
        services by the Federal Government to small business concerns 
        owned and controlled by women, if--
                    ``(A) each of the concerns is not less than 51 
                percent owned by 1 or more women who are economically 
                disadvantaged (and such ownership is determined without 
                regard to any community property law);
                    ``(B) the contracting officer has a reasonable 
                expectation that 2 or more small business concerns 
                owned and controlled by women will submit offers for 
                the contract;
                    ``(C) the contract is for the procurement of goods 
                or services with respect to an industry identified by 
the Administrator pursuant to paragraph (4);
                    ``(D) the anticipated award price of the contract 
                (including options) does not exceed--
                            ``(i) $5,000,000, in the case of a contract 
                        assigned an industrial classification code in 
                        sector 31, 32, or 33 of the North American 
                        Industrial Classification System; or
                            ``(ii) $3,000,000, in the case of all other 
                        contracts;
                    ``(E) in the estimation of the contracting officer, 
                the contract award can be made at a fair and reasonable 
                price; and
                    ``(F) each of the concerns--
                            ``(i) is certified by a Federal agency or a 
                        State government as a small business concern 
                        owned and controlled by women;
                            ``(ii) is certified by a national 
                        certifying entity approved by the Administrator 
                        as a small business concern owned and 
                        controlled by women; or
                            ``(iii) certifies to the contracting 
                        officer that it is a small business concern 
                        owned and controlled by women and provides 
                        adequate documentation in accordance with 
                        standards established by the Administration to 
                        support such certification.
            ``(3) Waiver.--With respect to a small business concern 
        owned and controlled by women, the Administrator may waive 
        subparagraph (2)(A) if the Administrator determines that the 
        concern is in an industry in which small business concerns 
        owned and controlled by women are substantially 
        underrepresented.
            ``(4) Identification of industries.--
                    ``(A) In general.--The Administrator shall conduct 
                a study to identify industries in which small business 
                concerns owned and controlled by women are 
                underrepresented with respect to Federal procurement 
                contracting.
                    ``(B) Deadline.--Not later than 90 days after the 
                date of the enactment of this subparagraph the 
                Administrator shall--
                            ``(i) ensure the completion of the study 
                        described in this paragraph;
                            ``(ii) approve national certifying entities 
                        for the purposes of paragraph (2)(F)(ii); and
                            ``(iii) make determinations in accordance 
                        with paragraph (3).
            ``(5) Enforcement; penalties.--
                    ``(A) Verification of eligibility.--In carrying out 
                this subsection, the Administrator shall use existing 
                procedures established by the Office of Hearings and 
                Appeals relating to--
                            ``(i) the filing, investigation, and 
                        disposition by the Administrator of any 
                        challenge to the eligibility of a small 
                        business concern to receive assistance under 
                        this subsection (including a challenge, filed 
                        by an interested party, relating to the 
                        veracity of a certification made or information 
                        provided to the Administrator by a small 
                        business concern under paragraph (2)(F)); and
                            ``(ii) verification by the Administrator of 
                        the accuracy of any certification made or 
                        information provided to the Administrator by a 
                        small business concern under paragraph (2)(F).
                    ``(B) Examinations.--The procedures established 
                under subparagraph (A) may provide for program 
                examinations (including random program examinations) by 
                the Administrator of any small business concern making 
                a certification or providing information to the 
                Administrator under paragraph (2)(F).
                    ``(C) Penalties.--In addition to the penalties 
                described in section 16(d), any small business concern 
                that is determined by the Administrator to have 
                misrepresented the status of that concern as a small 
                business concern owned and controlled by women for 
                purposes of this subsection, shall be subject to--
                            ``(i) section 1001 of title 18, United 
                        States Code; and
                            ``(ii) sections 3729 through 3733 of title 
                        31, United States Code.
            ``(6) Provision of data.--Upon the request of the 
        Administrator, the head of any Federal department or agency 
        shall promptly provide to the Administrator such information as 
        the Administrator determines to be necessary to carry out this 
        subsection.''; and
            (2) by adding at the end the following:
    ``(o) Authorities of Administrator.--In carrying out its functions 
under sections 7(i), 8(a), and 8(b), the Administrator may do the 
following:
            ``(1) Utilize, with their consent, the services and 
        facilities of Federal agencies without reimbursement, and, with 
        the consent of any State or political subdivision of a State, 
        accept and utilize the services and facilities of such State or 
        subdivision without reimbursement.
            ``(2) Accept voluntary and uncompensated services, 
        notwithstanding section 1342 of title 31, United States Code.
            ``(3) Employ experts and consultants or organizations 
        thereof as authorized by section 3109 of title 5, United States 
        Code. No individual may be employed under the authority of this 
        paragraph for more than 100 days in any fiscal year. No 
        individual employed under this paragraph may be compensated at 
        rates in excess of the daily equivalent of the highest rate 
        payable under section 5332 of title 5, United States Code, 
        including travel time. Individuals employed under this 
        paragraph may be allowed, while away from their homes or 
        regular places of business, travel expenses (including per diem 
        in lieu of subsistence) as authorized by section 5703 of title 
        5, United States Code for persons in the Government service 
        employed intermittently. Contracts for employment under this 
        paragraph may be renewed annually.''.

SEC. 502. PROCUREMENT CENTER REPRESENTATIVES.

    Section 15(l) of the Small Business Act (15 U.S.C. 644(l)) is 
amended--
            (1) by striking ``(l)(1)'' and inserting ``(2)'';
            (2) by redesignating paragraphs (2) through (7) as 
        paragraphs (3) through (8), respectively;
            (3) by inserting before paragraph (2), as so redesignated, 
        the following:
    ``(l)(1) The Administrator shall assign not fewer than 1 
procurement center representative at each major procurement center, in 
addition to no less than 1 for each State.'';
            (4) in paragraph (2), as redesignated, by striking ``to the 
        representative referred to in subsection (k)(6)'' and inserting 
        ``to the traditional procurement center representative and the 
        commercial market representative, with each such position 
        filled by a different individual, and each such representative 
        having separate and distinct duties and responsibilities.''; 
        and
            (5) by striking ``paragraph (2)'' each place that term 
        appears and inserting ``paragraph (3)''.
                                 <all>
```