II 

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.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Small Business Reauthorization and Manufacturing As6 sistance Act of 2004’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—SMALL MANUFACTURERS ASSISTANCE 
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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.

1 TITLE I—SMALL 

2 MANUFACTURERS ASSISTANCE 

3 SEC. 101. COMBINATION FINANCING. 

4 (a) Section 7(a) of the Small Business Act (15 U.S.C. 

5 636(a)) is amended by adding at the end the following: 

6 ‘‘(31) COMBINATION FINANCING.—
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1 ‘‘(A) DEFINITIONS.—As used in this para2 graph—

3 ‘‘(i) the term ‘combination financing’ 

4 means financing comprised of a loan guaran5 teed under this subsection and a commercial 

6 loan; and 

7 ‘‘(ii) the term ‘commercial loan’ means a 

8 loan which is part of a combination financing 

9 and no portion of which is guaranteed by the 

10 Federal Government. 

11 ‘‘(B) APPLICABILITY.—This paragraph applies 

12 to a loan guarantee obtained by a small business 

13 concern under this subsection, if the small business 

14 concern also obtains a commercial loan. 

15 ‘‘(C) COMMERCIAL LOAN AMOUNT.—In the case 

16 of any combination financing, the amount of the 

17 commercial loan which is part of such financing 

18 shall not exceed the gross amount of the loan guar19 anteed under this subsection which is part of such 

20 financing. 

21 ‘‘(D) COMMERCIAL LOAN PROVISIONS.—The 

22 commercial loan obtained by the small business con23 cern—
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1 ‘‘(i) may be made by the participating 

2 lender that is providing financing under this 

3 subsection or by a different lender; 

4 ‘‘(ii) may be secured by a senior lien; and 

5 ‘‘(iii) may be made by a lender in the Pre6 ferred Lenders Program, if applicable. 

7 ‘‘(E) COMMERCIAL LOAN FEE.—A one-time fee 

8 in an amount equal to 0.7 percent of the amount of 

9 the commercial loan shall be paid by the lender to 

10 the Administration if the commercial loan has a sen11 ior credit position to that of the loan guaranteed 

12 under this subsection. Any fee under the preceding 

13 sentence shall be paid by the participating lender 

14 and shall not be charged to the borrower. 

15 ‘‘(F) DEFERRED PARTICIPATION LOAN SECU16 RITY.—A loan guaranteed under this paragraph may 

17 be secured by a subordinated lien. 

18 ‘‘(G) COMPLETION OF APPLICATION PROC19 ESSING.—The Administrator shall complete proc20 essing of an application for combination financing 

21 under this paragraph pursuant to the program au22 thorized by this subsection as it was operating on 

23 October 1, 2003. 

24 ‘‘(H) BUSINESS LOAN ELIGIBILITY.—Any 

25 standards prescribed by the Administrator relating 
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1 to the eligibility of small business concerns to obtain 

2 combination financing under this subsection, which 

3 are in effect on the September 1, 2004, shall apply 

4 with respect to combination financings made under 

5 this paragraph. Any modifications to such standards 

6 by the Administrator after such date shall not un7 reasonably restrict the availability of combination fi8 nancing under this paragraph relative to the avail9 ability of such financing before such modifications.’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 subsection (a) shall take effect on October 1, 2004. 

12 SEC. 102. LOAN GUARANTEE FEES. 

13 (a) IN GENERAL.—Section 7(a)(23)(A) of the Small 

14 Business Act (15 U.S.C. 636(a)(23)(A)) is amended to 

15 read as follows: 

16 ‘‘(A) PERCENTAGE.—With respect to each loan 

17 guaranteed under this subsection, the Administrator 

18 shall, in accordance with such terms and procedures 

19 as the Administrator shall establish by regulation, 

20 assess and collect an annual fee in an amount equal 

21 to 0.36 percent of the outstanding balance of the de22 ferred participation share of the loan. 

23 (b) GUARANTEE FEES.—Paragraph (18) of sub24 section (a) of section 7 of the Small Business Act (15 

25 U.S.C. 636(a)(18) is amended to read as follows:
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1 ‘‘(18) GUARANTEE FEES.—With respect to each 

2 loan guaranteed under this subsection (other than a 

3 loan that is repayable in 1 year or less), the Admin4 istration shall collect a guarantee fee, which shall be 

5 payable by the participating lender, and may be 

6 charged to the borrower, as follows: 

7 ‘‘(A) A guarantee fee equal to 1 percent of 

8 the deferred participation share of a total loan 

9 amount that is not more than $150,000. 

10 ‘‘(B) A guarantee fee equal to 2.5 percent 

11 of the deferred participation share of a total 

12 loan amount that is more than $150,000, but 

13 not more than $700,000. 

14 ‘‘(C) A guarantee fee equal to 3.5 percent 

15 of the deferred participation share of a total 

16 loan amount that is more than $700,000. 

17 ‘‘(D) In addition to the fee under subpara18 graph (C), a guarantee fee equal to 0.25 per19 cent of the amount, if any, by which the de20 ferred participation share of the loan exceeds 

21 $1,000,000.’’. 

22 SEC. 103. EXPRESS LOAN PROVISIONS. 

23 (a) IN GENERAL.—Section 7(a) of the Small Busi24 ness Act (15 U.S.C. 636(a)), as amended by section 101, 
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1 is further amended by adding at the end the following new 

2 paragraph: 

3 ‘‘(32) EXPRESS LOAN PROVISIONS.— 

4 ‘‘(A) DEFINITIONS.—As used in this para5 graph: 

6 ‘‘(i) The term ‘express lender’ means 

7 any lender authorized by the Administrator 

8 to participate in the Express Loan Pro9 gram. 

10 ‘‘(ii) The term ‘express loan’ means 

11 any loan made pursuant to this paragraph 

12 in which a lender utilizes to the maximum 

13 extent practicable its own loan analyses, 

14 procedures, and documentation. 

15 ‘‘(iii) The term ‘Express Loan Pro16 gram’ means the program for express loans 

17 established by the Administrator under 

18 paragraph (25)(B), as in existence on 

19 April 5, 2004, with a guaranty rate of not 

20 more than 50 percent. 

21 ‘‘(B) RESTRICTION TO EXPRESS LEND22 ER.—The authority to make an express loan 

23 shall be limited to those lenders deemed quali24 fied to make such loans by the Administrator. 

25 Designation as an express lender for purposes 
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1 of making an express loan shall not prohibit 

2 such lender from taking any other action au3 thorized by the Administrator for that lender 

4 pursuant to this subsection. 

5 ‘‘(C) GRANDFATHERING OF EXISTING

6 LENDERS.—Any express lender shall retain 

7 such designation unless the Administrator de8 termines that the express lender has violated 

9 the law or regulations promulgated by the Ad10 ministrator or modifies the requirements to be 

11 an express lender and the lender no longer sat12 isfies those requirements. 

13 ‘‘(D) MAXIMUM LOAN AMOUNT.—The max14 imum loan amount under the Express Loan 

15 Program is $2,000,000. 

16 ‘‘(E) OPTION TO PARTICIPATE.—Except as 

17 otherwise provided in this paragraph, the Ad18 ministrator shall take no regulatory, policy, or 

19 administrative action, without regard to wheth20 er such action requires notification pursuant to 

21 paragraph (24), that has the effect of— 

22 ‘‘(i) requiring a lender to make an ex23 press loan pursuant to subparagraph (D); 

24 ‘‘(ii) limiting or modifying any term 

25 or condition of deferred participation loans 
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1 made under this subsection (other than ex2 press loans) unless the Administrator im3 poses the same limit or modification on ex4 press loans; 

5 ‘‘(iii) transferring or re-allocating 

6 staff, staff responsibilities, resources, or 

7 funding, if the result of such transfer or 

8 re-allocation would be to increase the aver9 age loan processing, approval, or disburse10 ment time above the averages for those 

11 functions as of October 1, 2003, for loan 

12 guarantees approved under this subsection 

13 by employees of the Administration or 

14 through the Preferred Lenders Program; 

15 or 

16 ‘‘(iv) otherwise providing any incentive 

17 or disincentive which encourages lenders or 

18 borrowers to make or obtain loans under 

19 the Express Loan Program instead of 

20 under the general loan authority of this 

21 subsection. 

22 ‘‘(F) COLLECTION AND REPORTING OF

23 DATA.—For all loans in excess of $250,000 

24 made pursuant to the authority set forth in 

25 subparagraph (D), the Administrator shall, to 
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1 the extent practicable, collect data on the pur2 pose for each such loan. The Administrator 

3 shall report monthly to the Committee on Small 

4 Business and Entrepreneurship of the Senate 

5 and the Committee on Small Business of the 

6 House of Representatives on the number of 

7 such loans and their purposes.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 subsection (a) shall take effect on October 1, 2004. 

10 SEC. 104. STANDARDS FOR LOANS MADE WITH DEFERRED 

11 PARTICIPATION. 

12 (a) IN GENERAL.—Section 7(a) of the Small Busi13 ness Act (15 U.S.C. 636(a)), as amended by section 101 

14 and section 103, is further amended by adding at the end 

15 the following new paragraph: 

16 ‘‘(33) STANDARDS FOR LOANS MADE WITH DE17 FERRED PARTICIPATION.—Deferred participation 

18 loans made on or after October 1, 2004, under this 

19 subsection shall have the same terms and conditions 

20 (including maximum gross loan amounts and collat21 eral requirements) as were applicable to loans made 

22 under this subsection on October 1, 2003, except as 

23 otherwise provided in paragraph (18)(D), paragraph 

24 (31), or paragraph (32) and subject to the 

25 $1,500,000 limitation on the total amount out-
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1 standing and committed in paragraph (3)(A), as in 

2 effect on October 1, 2004. This paragraph shall not 

3 preclude the Administrator from taking such action 

4 as necessary to maintain the loan program carried 

5 out under this subsection, subject to appropria6 tions.’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 subsection (a) shall take effect on October 1, 2004. 

9 SEC. 105. INCREASE IN GUARANTEE AMOUNT AND INSTITU10 TION OF ASSOCIATED FEE. 

11 (a) INCREASE IN AMOUNT PERMITTED TO BE OUT12 STANDING AND COMMITTED.—Section 7(a)(3) of the 

13 Small Business Act (15 U.S.C. 636(a)(3)) is amended—

14 (1) in subparagraph (A), by striking 

15 ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’; and 

16 (2) in subparagraph (B), by striking 

17 ‘‘$1,250,000, of which not more than $750,000’’ 

18 and inserting ‘‘$1,750,000, of which not more than 

19 $1,250,000’’. 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 subsection (a) shall take effect on October 1, 2004. 

22 SEC. 106. DEBENTURE SIZE. 

23 Section 502(2) of the Small Business Investment Act 

24 of 1958 (15 U.S.C. 696) is amended to read as follows:
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1 ‘‘(2) MAXIMUM AMOUNT.—Loans made by the 

2 Administration under this section shall be limited 

3 to—

4 ‘‘(A) $1,500,000 for each small business 

5 concern if the loan proceeds will not be directed 

6 toward a goal or project described in subpara7 graph (B) or (C); 

8 ‘‘(B) $2,000,000 for each small business 

9 concern if the loan proceeds will be directed to10 ward 1 or more of the public policy goals de11 scribed under section 501(d)(3); and 

12 ‘‘(C) $4,000,000 for each small business 

13 concern if the loan proceeds will be directed to14 ward projects for small manufacturers.’’. 

15 SEC. 107. JOB REQUIREMENTS. 

16 Section 501 of the Small Business Investment Act 

17 of 1958 (15 U.S.C. 695) is amended by adding at the end 

18 the following new subsection: 

19 ‘‘(e)(1) A project meets the objective set forth in sub20 section (d)(1) if the project creates or retains one job for 

21 every $50,000 guaranteed by the Administration, except 

22 that the amount is $100,000 in the case of a project of 

23 a small manufacturer. 

24 ‘‘(2) Paragraph (1) does not apply to a project for 

25 which eligibility is based on the objectives set forth in 
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1 paragraph (2) or (3) of subsection (d), if the development 

2 company’s portfolio of outstanding debentures creates or 

3 retains one job for every $50,000 guaranteed by the Ad4 ministration. 

5 ‘‘(3) For projects in Alaska, Hawaii, State-designated 

6 enterprise zones, empowerment zones and enterprise com7 munities, labor surplus areas, as determined by the Sec8 retary of Labor, and for other areas designated by the 

9 Administrator, the development company’s portfolio may 

10 average not more than $75,000 per job created or re11 tained. 

12 ‘‘(4) Loans for projects of small manufacturers shall 

13 be excluded from calculations under paragraph (2) or (3). 

14 ‘‘(5) Under regulations prescribed by the Adminis15 trator, the Administrator may waive any requirement of 

16 this subsection (other than paragraph (4)). 

17 ‘‘(6) As used in this subsection, the term ‘small man18 ufacturer’ means any small business concern if— 

19 ‘‘(A) the primary business of the concern is 

20 classified in sector 31, 32, or 33 of the North Amer21 ican Industrial Classification System; and 

22 ‘‘(B) all of its facilities that are used for pro23 duction are located in the United States.’’. 
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1 SEC. 108. REPORT REGARDING NATIONAL DATABASE OF 

2 SMALL MANUFACTURERS. 

3 (a) STUDY AND REPORT.—The Administrator, in 

4 consultation with the association of small business devel5 opment centers authorized by section 21(k) of the Small 

6 Business Act (15 U.S.C. 648(k)), shall— 

7 (1) study the feasibility of creating a national 

8 database of small manufacturers that institutions of 

9 higher education could access for purposes of meet10 ing procurement needs; and 

11 (2) not later than one year after the date of the 

12 enactment of this Act, transmit a report to the Con13 gress regarding the findings and conclusions of such 

14 study. 

15 (b) COST ESTIMATE.—The report referred to in sub16 section (a)(2) shall include an estimate of the cost of cre17 ating and maintaining the database described in sub18 section (a)(1). 

19 (c) DEFINITION.—As used in this section, the term 

20 ‘‘small manufacturer’’ means any small business concern 

21 if— 

22 (1) the primary business of the concern is clas23 sified in sector 31, 32, or 33 of the North American 

24 Industrial Classification System; and 

25 (2) all of its facilities that are used for produc26 tion are located in the United States. 
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1 SEC. 109. CLARIFICATION OF MAXIMUM SURETY BOND 

2 GUARANTEE. 

3 (a) IN GENERAL.—Section 411(a)(1) of the Small 

4 Business Investment Act of 1958 (15 U.S.C. 694b(a)(1)) 

5 is amended by striking ‘‘contract up to’’ and inserting 

6 ‘‘total work order or contract amount at the time of bond 

7 execution that does not exceed’’. 

8 SEC. 110. INTERNATIONAL TRADE. 

9 Section 7(a)(16) of the Small Business Act (15 

10 U.S.C. 636(a)(16)) is amended to read as follows: 

11 ‘‘(16) INTERNATIONAL TRADE.—

12 ‘‘(A) IN GENERAL.—If the Administrator 

13 determines that a loan guaranteed under this 

14 subsection will allow an eligible small business 

15 concern in an industry engaged in or adversely 

16 affected by international trade to improve its 

17 competitive position, the Administrator may 

18 make such loan to assist such concern in—

19 ‘‘(i) the financing of the acquisition, 

20 construction, renovation, modernization, 

21 improvement, or expansion of productive 

22 facilities or equipment to be used in the 

23 United States in the production of goods 

24 and services involved in international 

25 trade; or 
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1 ‘‘(ii) the refinancing of existing in2 debtedness, which is not structured with 

3 reasonable terms and conditions. 

4 ‘‘(B) SECURITY.—Each loan made under 

5 this paragraph shall be secured by a first lien 

6 position or first mortgage on the property or 

7 equipment financed by the loan or on other as8 sets of the small business concern. 

9 ‘‘(C) ENGAGED IN OR ADVERSELY AF10 FECTED BY INTERNATIONAL TRADE.—For pur11 poses of this paragraph, a small business con12 cern shall be considered to be engaged in or ad13 versely affected by international trade if the 

14 small business concern is determined by the Ad15 ministrator (under regulations prescribed by the 

16 Administrator) to be—

17 ‘‘(i) in a position to significantly ex18 pand existing export markets or develop 

19 new export markets; or 

20 ‘‘(ii) adversely affected by import 

21 competition in that it—

22 ‘‘(I) is confronting increased di23 rect competition with foreign firms in 

24 the relevant market; and
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1 ‘‘(II) can demonstrate injury at2 tributable to such competition. 

3 ‘‘(D) FINDINGS BY FEDERAL AGENCIES.—

4 For purposes of subparagraph (C)(ii)(II), the 

5 Administrator shall accept any finding of injury 

6 by—

7 ‘‘(i) the International Trade Commis8 sion; or 

9 ‘‘(ii) the Secretary of Commerce, pur10 suant to chapter 3 of title II of the Trade 

11 Act of 1974 (19 U.S.C. 2341 et seq.).’’. 

12 SEC. 111. DEFINITION OF EQUITY CAPITAL. 

13 Section 303(g)(4) of the Small Business Investment 

14 Act of 1958 (15 U.S.C. 683(g)(4)) is amended—

15 (1) in the first sentence, by striking ‘‘sub16 section’’ and inserting ‘‘Act’’; and 

17 (2) in the second sentence, by striking ‘‘contin18 gent upon and limited to the extent of earnings’’ and 

19 inserting ‘‘from such sources as may be defined by 

20 the Administrator’’. 

21 SEC. 112. AGGREGATE LIMITATIONS. 

22 Section 306(a) of the Small Business Investment Act 

23 of 1958 (15 U.S.C. 686(a)) is amended by striking ‘‘shall 

24 not exceed 20 per centum’’ and all that follows and insert-
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1 ing the following: ‘‘shall not, without the approval of the 

2 Administrator, exceed the greater of—

3 ‘‘(1) 20 percent of the private capital of such 

4 company; or 

5 ‘‘(2) 10 percent of the sum of—

6 ‘‘(A) the private capital of such company; 

7 ‘‘(B) all leverage (whether or not out8 standing) issued to such company; and 

9 ‘‘(C) all unexercised commitments issued 

10 to such company by the Administration.’’. 

11 SEC. 113. INVESTMENT OF EXCESS FUNDS. 

12 Section 308(b) of the Small Business Investment Act 

13 of 1958 (15 U.S.C. 687(b)) is amended by striking the 

14 last sentence and inserting the following: ‘‘Such companies 

15 with outstanding financings are authorized to invest funds 

16 not reasonably needed for their operations in—

17 ‘‘(1) direct obligations of, or obligations guaran18 teed as to principal and interest by, the United 

19 States; 

20 ‘‘(2) in certificates of deposit maturing within 1 

21 year after issuance by any institution, whose ac22 counts are federally insured, or in savings accounts 

23 of such institution; or 

24 ‘‘(3) in such other investment securities, mutual 

25 funds, or instruments that solely consist of, invest 
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1 in, or are supported by the instruments described in 

2 paragraphs (1) and (2).’’. 

3 TITLE II—AUTHORIZATIONS 

4 SEC. 201. PROGRAM AUTHORIZATION LEVELS. 

5 Section 20 of the Small Business Act (15 U.S.C. 631 

6 note) is amended—

7 (1) in subsection (a)(1), by striking ‘‘certifi8 cation’’ each place that term appears and inserting 

9 ‘‘accreditation’’; 

10 (2) by striking subsections (c) through (h) and 

11 inserting the following: 

12 ‘‘(c) DISASTER MITIGATION PILOT PROGRAM.—The 

13 following program levels are authorized for loans under 

14 section 7(b)(1)(C): 

15 ‘‘(1) $15,000,000 for fiscal year 2005. 

16 ‘‘(2) $15,000,000 for fiscal year 2006.’’; 

17 (3) by redesignating subsection (i) as subsection 

18 (d); and 

19 (4) by adding at the end the following: 

20 ‘‘(e) FISCAL YEAR 2005.—

21 ‘‘(1) PROGRAM LEVELS.—The following pro22 gram levels are authorized for fiscal year 2005: 

23 ‘‘(A) For the programs authorized by this 

24 Act, the Administration is authorized to 

25 make—
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1 ‘‘(i) $75,000,000 in technical assist2 ance grants, as provided in section 7(m); 

3 and 

4 ‘‘(ii) $105,000,000 in direct loans, as 

5 provided in 7(m). 

6 ‘‘(B) For the programs authorized by this 

7 Act, the Administration is authorized to make 

8 $23,050,000,000 in deferred participation loans 

9 and other financings. Of such sum, the Admin10 istration is authorized to make—

11 ‘‘(i) $16,500,000,000 in general busi12 ness loans, as provided in section 7(a); 

13 ‘‘(ii) $6,000,000,000 in certified de14 velopment company financings, as provided 

15 in section 7(a)(13) of this Act and section 

16 504 of the Small Business Investment Act 

17 of 1958; 

18 ‘‘(iii) $500,000,000 in loans, as pro19 vided in section 7(a)(21); and 

20 ‘‘(iv) $50,000,000 in loans, as pro21 vided in section 7(m). 

22 ‘‘(C) For the programs authorized by title 

23 III of the Small Business Investment Act of 

24 1958, the Administration is authorized to 

25 make—
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1 ‘‘(i) $4,250,000,000 in purchases of 

2 participating securities; and 

3 ‘‘(ii) $3,250,000,000 in guarantees of 

4 debentures. 

5 ‘‘(D) For the programs authorized by part 

6 B of title IV of the Small Business Investment 

7 Act of 1958, the Administration is authorized 

8 to enter into guarantees not to exceed 

9 $6,000,000,000, of which not more than 50 

10 percent may be in bonds approved pursuant to 

11 section 411(a)(3) of that Act. 

12 ‘‘(E) The Administration is authorized to 

13 make grants or enter into cooperative agree14 ments for a total amount of $7,000,000 for the 

15 Service Corps of Retired Executives program 

16 authorized by section 8(b)(1). 

17 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

18 ‘‘(A) There are authorized to be appro19 priated to the Administration for fiscal year 

20 2005 such sums as may be necessary to carry 

21 out the provisions of this Act not elsewhere pro22 vided for, including administrative expenses and 

23 necessary loan capital for disaster loans pursu24 ant to section 7(b), and to carry out title IV of 

25 the Small Business Investment Act of 1958, in-
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1 cluding salaries and expenses of the Adminis2 tration. 

3 ‘‘(B) Notwithstanding any other provision 

4 of this paragraph, for fiscal year 2005—

5 ‘‘(i) no funds are authorized to be 

6 used as loan capital for the loan program 

7 authorized by section 7(a)(21) except by 

8 transfer from another Federal department 

9 or agency to the Administration, unless the 

10 program level authorized for general busi11 ness loans under paragraph (1)(B)(i) is 

12 fully funded; and 

13 ‘‘(ii) the Administration may not ap14 prove loans on its own behalf or on behalf 

15 of any other Federal department or agen16 cy, by contract or otherwise, under terms 

17 and conditions other than those specifically 

18 authorized under this Act or the Small 

19 Business Investment Act of 1958, except 

20 that it may approve loans under section 

21 7(a)(21) of this Act in gross amounts of 

22 not more than $2,000,000. 

23 ‘‘(f) FISCAL YEAR 2006.—

24 ‘‘(1) PROGRAM LEVELS.—The following pro25 gram levels are authorized for fiscal year 2006:
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1 ‘‘(A) For the programs authorized by this 

2 Act, the Administration is authorized to 

3 make—

4 ‘‘(i) $80,000,000 in technical assist5 ance grants, as provided in section 7(m); 

6 and 

7 ‘‘(ii) $110,000,000 in direct loans, as 

8 provided in 7(m). 

9 ‘‘(B) For the programs authorized by this 

10 Act, the Administration is authorized to make 

11 $25,050,000,000 in deferred participation loans 

12 and other financings. Of such sum, the Admin13 istration is authorized to make—

14 ‘‘(i) $17,000,000,000 in general busi15 ness loans, as provided in section 7(a); 

16 ‘‘(ii) $7,500,000,000 in certified de17 velopment company financings, as provided 

18 in section 7(a)(13) of this Act and section 

19 504 of the Small Business Investment Act 

20 of 1958; 

21 ‘‘(iii) $500,000,000 in loans, as pro22 vided in section 7(a)(21); and 

23 ‘‘(iv) $50,000,000 in loans, as pro24 vided in section 7(m). 
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1 ‘‘(C) For the programs authorized by title 

2 III of the Small Business Investment Act of 

3 1958, the Administration is authorized to 

4 make—

5 ‘‘(i) $4,500,000,000 in purchases of 

6 participating securities; and 

7 ‘‘(ii) $3,500,000,000 in guarantees of 

8 debentures. 

9 ‘‘(D) For the programs authorized by part 

10 B of title IV of the Small Business Investment 

11 Act of 1958, the Administration is authorized 

12 to enter into guarantees not to exceed 

13 $6,000,000,000, of which not more than 50 

14 percent may be in bonds approved pursuant to 

15 section 411(a)(3) of that Act. 

16 ‘‘(E) The Administration is authorized to 

17 make grants or enter into cooperative agree18 ments for a total amount of $7,000,000 for the 

19 Service Corps of Retired Executives program 

20 authorized by section 8(b)(1). 

21 ‘‘(2) ADDITIONAL AUTHORIZATIONS.—

22 ‘‘(A) There are authorized to be appro23 priated to the Administration for fiscal year 

24 2006 such sums as may be necessary to carry 

25 out the provisions of this Act not elsewhere pro-
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1 vided for, including administrative expenses and 

2 necessary loan capital for disaster loans pursu3 ant to section 7(b), and to carry out title IV of 

4 the Small Business Investment Act of 1958, in5 cluding salaries and expenses of the Adminis6 tration. 

7 ‘‘(B) Notwithstanding any other provision 

8 of this paragraph, for fiscal year 2006—

9 ‘‘(i) no funds are authorized to be 

10 used as loan capital for the loan program 

11 authorized by section 7(a)(21) except by 

12 transfer from another Federal department 

13 or agency to the Administration, unless the 

14 program level authorized for general busi15 ness loans under paragraph (1)(B)(i) is 

16 fully funded; and 

17 ‘‘(ii) the Administration may not ap18 prove loans on its own behalf or on behalf 

19 of any other Federal department or agen20 cy, by contract or otherwise, under terms 

21 and conditions other than those specifically 

22 authorized under this Act or the Small 

23 Business Investment Act of 1958, except 

24 that it may approve loans under section 
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1 7(a)(21) of this Act in gross amounts of 

2 not more than $2,000,000.’’. 

3 SEC. 202. ADDITIONAL REAUTHORIZATIONS. 

4 (a) EXTENSION OF PROGRAM AUTHORITY.—Any 

5 program, authority, or provision, including any pilot pro6 gram, that was authorized under the Small Business Act 

7 (15 U.S.C. 631 et seq.) or the Small Business Investment 

8 Act of 1958 (15 U.S.C. 661 et seq.) as of September 30, 

9 2004, such authority having expired, or scheduled to ex10 pire, on or after September 30, 2004, shall remain author11 ized during the period beginning on October 1, 2004 and 

12 ending on September 30, 2006, under the same terms and 

13 conditions as in effect on the day before such expiration 

14 or scheduled expiration, except as otherwise specifically 

15 provided in this Act or amendments by this Act. 

16 (b) SMALL BUSINESS DEVELOPMENT CENTERS.—

17 (1) AUTHORIZATION OF APPROPRIATIONS.—

18 Section 21(a)(4)(C) of the Small Business Act (15 

19 U.S.C. 648(a)(4)(C)) is amended—

20 (A) by amending clause (vii) to read as fol21 lows: 

22 ‘‘(vii) AUTHORIZATION OF APPROPRIA23 TIONS.—There are authorized to be appro24 priated to carry out this subparagraph—
27

•S 2821 IS 

1 ‘‘(I) $130,000,000 for fiscal year 

2 2005; and 

3 ‘‘(II) $135,000,000 for fiscal year 

4 2006.’’; 

5 (B) by redesignating clause (viii) as clause 

6 (ix); and 

7 (C) by inserting after clause (vii) the fol8 lowing: 

9 ‘‘(viii) LIMITATION.—From the funds ap10 propriated pursuant to clause (vii), the Admin11 istration shall reserve not less than $1,000,000 

12 in each fiscal year to develop portable assist13 ance for startup and sustainability non-match14 ing grant programs to be conducted by eligible 

15 small business development centers in commu16 nities that are economically challenged as a re17 sult of a business or government facility down18 sizing or closing, which has resulted in the loss 

19 of jobs or small business instability. A non20 matching grant under this clause shall not ex21 ceed $100,000, and shall be used for small 

22 business development center personnel expenses 

23 and related small business programs and serv24 ices.’’. 
28

•S 2821 IS 

1 (2) DRUG-FREE WORKPLACE PROGRAMS.—Sec2 tion 21(c)(3)(T) of the Small Business Act (15 

3 U.S.C. 648(c)(3)(T)) is amended by striking ‘‘Octo4 ber 1, 2003’’ and inserting ‘‘October 1, 2006’’.

5 SEC. 203. REAUTHORIZATION OF PAUL D. COVERDELL 

6 DRUG-FREE WORKPLACE PROGRAM. 

7 (a) ELIGIBILITY OF DRUG-FREE COMMUNITIES COA8 LITIONS.—Section 27(a)(2)(D) of the Small Business Act 

9 (15 U.S.C. 654(a)(2)(D)) is amended to read as follows: 

10 ‘‘(D)(i) the purpose of which is—

11 ‘‘(I) to develop comprehensive drug12 free workplace programs or to supply drug13 free workplace services; or 

14 ‘‘(II) to provide other forms of assist15 ance and services to small business con16 cerns; or 

17 ‘‘(ii) that is eligible to receive a grant 

18 under chapter 2 of the National Narcotics 

19 Leadership Act of 1988 (21 U.S.C. 1521 et 

20 seq.).’’. 

21 (b) ADDITIONAL GRANTS FOR PROGRAMS CARRIED

22 OUT IN COOPERATION WITH SMALL BUSINESS DEVELOP23 MENT CENTERS.—Section 27(b) the Small Business Act 

24 (15 U.S.C. 654) is amended—
29

•S 2821 IS 

1 (1) by striking ‘‘There is established’’ and in2 serting the following: 

3 ‘‘(1) IN GENERAL.—There is established’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(2) ADDITIONAL GRANTS FOR PROGRAMS CAR6 RIED OUT IN COOPERATION WITH SMALL BUSINESS

7 DEVELOPMENT CENTERS.—The Administrator may 

8 make an additional grant to, or enter into a coopera9 tive agreement or contract with, any grantee under 

10 paragraph (1) for the purpose of providing, in co11 operation with one or more small business develop12 ment centers, technical assistance to small business 

13 concerns seeking to establish a drug-free workplace 

14 program.’’. 

15 ‘‘(3) 2-YEAR GRANTS.—Each grant made under 

16 this subsection shall be for a period of 2 years, sub17 ject to an annual performance review by the Admin18 istrator.’’. 

19 (c) EVALUATION AND COORDINATION.—Section 27 of 

20 the Small Business Act (15 U.S.C. 654) is amended—

21 (1) by striking subsection (d); 

22 (2) by redesignating subsections (e), (f), and 

23 (g) as subsections (f), (g), and (h), respectively; and 

24 (3) by inserting after subsection (c) the fol25 lowing: 
30

•S 2821 IS 

1 ‘‘(d) TECHNICAL ASSISTANCE.—The Administrator, 

2 after consultation with the Director of the Center for Sub3 stance Abuse and Prevention, shall provide technical as4 sistance and information to each eligible intermediary re5 ceiving a grant under subsection (b) regarding the most 

6 effective practices in establishing and carrying out drug7 free workplace programs. 

8 ‘‘(e) EVALUATION OF PROGRAM.—

9 ‘‘(1) DATA COLLECTION SYSTEM.—Each eligible 

10 intermediary receiving a grant under this section 

11 shall establish a system to collect and analyze infor12 mation regarding the effectiveness of drug-free 

13 workplace programs established with assistance pro14 vided under this section through the intermediary, 

15 including information regarding any increase or de16 crease among employees in drug use, awareness of 

17 the adverse consequences of drug use, and absentee18 ism, injury, and disciplinary problems related to 

19 drug use. Such system shall conform to such re20 quirements as the Administrator, after consultation 

21 with the Director of the Center for Substance Abuse 

22 and Prevention, may prescribe. Not more than 5 

23 percent of the amount of each grant made under 

24 subsection (b) shall be used by the eligible inter25 mediary to carry out this paragraph. 
31

•S 2821 IS 

1 ‘‘(2) METHOD OF EVALUATION.—The Adminis2 trator, after consultation with the Director of the 

3 Center for Substance Abuse and Prevention, shall 

4 provide technical assistance and guidance to each el5 igible intermediary receiving a grant under sub6 section (b) regarding the collection and analysis of 

7 information to evaluate the effectiveness of drug-free 

8 workplace programs established with assistance pro9 vided under this section, including the information 

10 referred to in paragraph (1). Such assistance shall 

11 include the identification of additional information 

12 suitable for measuring the benefits of drug-free 

13 workplace programs to the small business concern 

14 and to the concern’s employees and the identification 

15 of methods suitable for analyzing such information. 

16 ‘‘(3) STUDY AND REPORT.—Not later than 18 

17 months after the date of enactment of the Small 

18 Business Reauthorization and Manufacturing Assist19 ance Act of 2004, the Administrator, in consultation 

20 with the Secretary of Labor, the Secretary of Health 

21 and Human Services, and the Director of National 

22 Drug Control Policy, shall—

23 ‘‘(A) compile and analyze the information 

24 collected under this subsection; 

25 ‘‘(B) identify trends in such information; 
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•S 2821 IS 

1 ‘‘(C) evaluate the effectiveness of the drug2 free workplace programs established with assist3 ance provided under this section; and 

4 ‘‘(D) submit to the Congress a report that 

5 describes the results of the analysis conducted 

6 under subparagraph (A), the trends identified 

7 under subparagraph (B), and the results of the 

8 evaluation conducted under subparagraph 

9 (C).’’. 

10 (d) AUTHORIZATIONS.—Section 27(h) of the Small 

11 Business Act, as redesignated by subsection (c)(2), is 

12 amended—

13 (1) by amending paragraph (1) to read as fol14 lows: 

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

16 appropriated to carry out this section, except for 

17 subsection (b)(2), $5,000,000 for each of the fiscal 

18 years 2005 and 2006, which shall remain available 

19 until expended.’’; 

20 (2) by redesignating paragraph (2) as para21 graph (3); 

22 (3) by inserting after paragraph (1) the fol23 lowing: 

24 ‘‘(2) ADDITIONAL AUTHORIZATION.—There are 

25 authorized to be appropriated to carry out sub-
33

•S 2821 IS 

1 section (b)(2), $1,500,000 for each of the fiscal 

2 years 2005 and 2006, which shall remain available 

3 until expended.’’; 

4 (4) by amending paragraph (3), as redesig5 nated, to read as follows:

6 ‘‘(3) SMALL BUSINESS DEVELOPMENT CEN7 TERS.—Of the total amount made available under 

8 this subsection for fiscal years 2005 and 2006, not 

9 more than the greater of 10 percent or $500,000 

10 may be used to carry out section 21(c)(3)(T).’’; and 

11 (5) by adding at the end the following: 

12 ‘‘(4) ADMINISTRATIVE COSTS.—Of the total 

13 amount made available under this subsection for any 

14 fiscal year, not more than 5 percent of such amount 

15 shall be used for administrative costs, which percent16 age shall be determined without regard to the ad17 ministrative costs of eligible intermediaries.’’. 

18 TITLE III—ADMINISTRATION AC19 COUNTABILITY AND MANAGE20 MENT 

21 SEC. 301. DOCUMENT RETENTION AND INVESTIGATIONS. 

22 Section 10(e) of the Small Business Act (15 U.S.C. 

23 639(e)) is amended by striking the matter preceding para24 graph (2) and inserting the following: 

25 ‘‘(e) DOCUMENT RETENTION; INVESTIGATIONS.—
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•S 2821 IS 

1 ‘‘(1) DOCUMENT RETENTION.—The Adminis2 trator and the Inspector General of the Administra3 tion shall—

4 ‘‘(A) retain all documents and records, in5 cluding correspondence, records of inquiry, 

6 memoranda (including those relating to all in7 vestigations conducted by or for the Adminis8 tration), reports, studies, analyses, contracts, 

9 agreements, opinions, computer entries, e-mail 

10 messages, forms, manuals, briefing materials, 

11 press releases, and books for a period of not 

12 less than 2 years from the date such documents 

13 are created; 

14 ‘‘(B) keep the items described in subpara15 graph (A) available at all times for inspection 

16 and examination by the Committee on Small 

17 Business and Entrepreneurship of the Senate 

18 and the Committee on Small Business of the 

19 House of Representatives, or their duly author20 ized representatives; and 

21 ‘‘(C) upon the written request of the Com22 mittee on Small Business and Entrepreneurship 

23 of the Senate or the Committee on Small Busi24 ness of the House of Representatives pursuant 

25 to subparagraph (B), the Administrator or the 
35

•S 2821 IS 

1 Inspector General, as applicable, shall make 

2 such documents or records available to the re3 questing committee or its duly authorized rep4 resentative within 5 business days of the re5 quest, and if a document or record cannot be 

6 made available within such timeframe, the Ad7 ministrator or the Inspector General, as appli8 cable, shall provide the requesting committee 

9 with a written explanation stating the reason 

10 that each document or record requested has not 

11 been provided and a date certain for its produc12 tion.’’. 

13 SEC. 302. MANAGEMENT OF THE SMALL BUSINESS ADMIN14 ISTRATION. 

15 Section 4 of the Small Business Act (15 U.S.C. 633) 

16 is amended—

17 (1) by striking ‘‘SEC. 4.’’ and inserting the fol18 lowing: 

19 ‘‘SEC. 4. MANAGEMENT OF THE SMALL BUSINESS ADMINIS20 TRATION.’’; 

21 (2) in subsection (a), by striking ‘‘(a)’’ and in22 serting the following: 

23 ‘‘(a) ESTABLISHMENT.—’’; 

24 (3) in subsection (b)—
36

•S 2821 IS 

1 (A) by striking ‘‘(b)(1)’’ and inserting the 

2 following: 

3 ‘‘(b) AUTHORITY OF ADMINISTRATOR.—

4 ‘‘(1) IN GENERAL.—

5 ‘‘(A) APPOINTMENT.—’’; 

6 (B) in paragraph (1)—

7 (i) by striking ‘‘The Administrator 

8 shall not engage’’ and inserting the fol9 lowing: 

10 ‘‘(B) SOLE EMPLOYMENT.—The Adminis11 trator shall not engage’’; 

12 (ii) by striking ‘‘In carrying out’’ and 

13 inserting the following: 

14 ‘‘(C) NONDISCRIMINATION; SPECIAL CON15 SIDERATION FOR VETERANS.—In carrying out’’; 

16 and 

17 (iii) by striking ‘‘The President’’ and 

18 inserting the following: 

19 ‘‘(D) APPOINTMENT OF DEPUTY ADMINIS20 TRATOR; ASSOCIATE ADMINISTRATORS.—The 

21 President’’; and 

22 (C) in paragraph (2), by striking ‘‘the Ad23 ministrator also’’ and inserting ‘‘RESPONSIBIL24 ITIES OF ADMINISTRATOR.—The Adminis25 trator’’; and 
37

•S 2821 IS 

1 (4) by adding at the end the following: 

2 ‘‘(g) OFFICE OF LENDER OVERSIGHT.—The Director 

3 of the Office of Lender Oversight shall—

4 ‘‘(1) formulate, execute, and promote policies 

5 and procedures of the Administration that provide 

6 adequate and effective oversight and review of lend7 ers participating in, or applying to participate in, 

8 the loan and loan guaranty programs for small busi9 ness concerns under this Act and the Small Business 

10 Investment Act of 1958 (15 U.S.C. 661 et seq.); and 

11 ‘‘(2) report directly to the Chief Financial Offi12 cer of the Administration.’’. 

13 TITLE IV—ENTREPRENEURIAL 

14 DEVELOPMENT PROGRAMS 

15 Subtitle A—Office of 

16 Entrepreneurial Development 

17 SEC. 401. SERVICE CORPS OF RETIRED EXECUTIVES. 

18 (a) IN GENERAL.—Section 8(b)(1)(B) of the Small 

19 Business Act (15 U.S.C. 637(b)(1)(B)) is amended—

20 (1) by striking ‘‘this Act; and to’’, and inserting 

21 ‘‘this Act. To’’; 

22 (2) by striking ‘‘may maintain at its head23 quarters’’ and all that follows through ‘‘That any’’ 

24 and inserting ‘‘shall maintain at its headquarters 

25 and pay the salaries, benefits, and expenses of a vol-
38

•S 2821 IS 

1 unteer and professional staff to manage and oversee 

2 the program. Any’’; and 

3 (3) by striking the period at the end and insert4 ing the following: ‘‘and the management of the con5 tributions received.’’.

6 (b) REGULATIONS.—The Administrator shall, not 

7 later than 180 days after the date of enactment of this 

8 Act, promulgate regulations to carry out the amendments 

9 made by subsection (a). 

10 (c) EXTENSION OF COSPONSORSHIP AUTHORITY.—

11 Section 401(a)(2) of the Small Business Administration 

12 Reauthorization and Amendments Act of 1994 (15 U.S.C. 

13 637 note, 108 Stat. 4190) is amended by striking ‘‘Sep14 tember 30, 2003’’ and inserting ‘‘September 30, 2006’’. 

15 SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PRO16 GRAM. 

17 (a) PRIVACY REQUIREMENTS.—Section 21(a) of the 

18 Small Business Act (15 U.S.C. 648(a)) is amended by 

19 adding at the end the following: 

20 ‘‘(7) PRIVACY REQUIREMENTS.—

21 ‘‘(A) IN GENERAL.—A small business de22 velopment center, consortium of small business 

23 development centers, or contractor or agent of 

24 a small business development center may not 

25 disclose the name, address, or telephone num-
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•S 2821 IS 

1 ber of any individual or small business concern 

2 receiving assistance under this section without 

3 the consent of such individual or small business 

4 concern, unless—

5 ‘‘(i) the Administrator is ordered to 

6 make such a disclosure by a court in any 

7 civil or criminal enforcement action initi8 ated by a Federal or State agency; or 

9 ‘‘(ii) the Administrator considers such 

10 a disclosure to be necessary for the pur11 pose of conducting a financial audit of a 

12 small business development center, but a 

13 disclosure under this clause shall be limited 

14 to the information necessary for such 

15 audit. 

16 ‘‘(B) ADMINISTRATION USE OF INFORMA17 TION.—This section shall not—

18 ‘‘(i) restrict Administration access to 

19 program activity data; or 

20 ‘‘(ii) prevent the Administration from 

21 using client information (other than the in22 formation described in subparagraph (A)) 

23 to conduct client surveys. 

24 ‘‘(C) REGULATIONS.—The Administrator 

25 shall issue regulations to establish standards for 
40

•S 2821 IS 

1 requiring disclosures during a financial audit 

2 under subparagraph (A)(ii).’’. 

3 (b) TERM CHANGE.—Section 21(k) of the Small 

4 Business Act (15 U.S.C. 648(k)) is amended—

5 (1) by striking ‘‘CERTIFICATION’’ each place it 

6 appears and inserting ‘‘ACCREDITATION’’; and 

7 (2) by striking ‘‘certification’’ each place it ap8 pears and inserting ‘‘accreditation’’. 

9 Subtitle B—Office of Veterans 

10 Business Development 

11 SEC. 431. ADVISORY COMMITTEE ON VETERANS BUSINESS 

12 AFFAIRS. 

13 (a) RETENTION OF DUTIES.—Section 33(h) of the 

14 Small Business Act (15 U.S.C. 657c(h)) is amended by 

15 striking ‘‘October 1, 2004’’ and inserting ‘‘October 1, 

16 2006’’. 

17 (b) EXTENSION OF AUTHORITY.—Section 203(h) of 

18 the Veterans Entrepreneurship and Small Business Devel19 opment Act of 1999 (15 U.S.C. 657b note) is amended 

20 by striking ‘‘September 30, 2004’’ and inserting ‘‘Sep21 tember 30, 2006’’. 

22 SEC. 432. OUTREACH GRANTS FOR VETERANS. 

23 Section 8(b)(17) of the Small Business Act (15 

24 U.S.C. 637(b)(17)) is amended by inserting before the pe-
41

•S 2821 IS 

1 riod at the end the following: ‘‘, veterans, and members 

2 of a reserve component of the Armed Forces’’. 

3 SEC. 433. AUTHORIZATION OF APPROPRIATIONS. 

4 Section 32 of the Small Business Act (15 U.S.C. 

5 657b) is amended by adding at the end the following: 

6 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated for carrying out the pro8 visions of this section—

9 ‘‘(1) $1,500,000 for fiscal year 2005; and 

10 ‘‘(2) $2,000,000 for fiscal year 2006.’’. 

11 SEC. 434. NATIONAL VETERANS BUSINESS DEVELOPMENT 

12 CORPORATION. 

13 Section 33(a) of the Small Business Act (15 U.S.C. 

14 657c(a)) is amended by adding at the end the following: 

15 ‘‘Notwithstanding any other provision of law, the Corpora16 tion is a private entity and is not an agency, instrumen17 tality, authority, entity, or establishment of the United 

18 States Government.’’. 

19 TITLE V—SMALL BUSINESS 

20 PROCUREMENT OPPORTUNITIES 

21 SEC. 501. WOMEN-OWNED SMALL BUSINESS CONCERNS; AU22 THORITIES OF ADMINISTRATOR. 

23 Section 8 of the Small Business Act (15 U.S.C. 637) 

24 is amended—
42

•S 2821 IS 

1 (1) by amending subsection (m) to read as fol2 lows: 

3 ‘‘(m) PROCUREMENT PROGRAM FOR WOMEN-OWNED

4 SMALL BUSINESS CONCERNS.— 

5 ‘‘(1) DEFINITIONS.—In this subsection, the fol6 lowing definitions apply: 

7 ‘‘(A) SMALL BUSINESS CONCERN OWNED

8 AND CONTROLLED BY WOMEN.—The term 

9 ‘small business concern owned and controlled by 

10 women’ has the meaning given such term in 

11 section 3(n), except that ownership shall be de12 termined without regard to any community 

13 property law. 

14 ‘‘(2) AUTHORITY TO RESTRICT COMPETITION.—

15 In accordance with this subsection, a contracting of16 ficer may restrict competition for any contract for 

17 the procurement of goods or services by the Federal 

18 Government to small business concerns owned and 

19 controlled by women, if— 

20 ‘‘(A) each of the concerns is not less than 

21 51 percent owned by 1 or more women who are 

22 economically disadvantaged (and such owner23 ship is determined without regard to any com24 munity property law); 
43

•S 2821 IS 

1 ‘‘(B) the contracting officer has a reason2 able expectation that 2 or more small business 

3 concerns owned and controlled by women will 

4 submit offers for the contract; 

5 ‘‘(C) the contract is for the procurement of 

6 goods or services with respect to an industry

7 identified by the Administrator pursuant to 

8 paragraph (4); 

9 ‘‘(D) the anticipated award price of the 

10 contract (including options) does not exceed— 

11 ‘‘(i) $5,000,000, in the case of a con12 tract assigned an industrial classification 

13 code in sector 31, 32, or 33 of the North 

14 American Industrial Classification System; 

15 or 

16 ‘‘(ii) $3,000,000, in the case of all 

17 other contracts; 

18 ‘‘(E) in the estimation of the contracting 

19 officer, the contract award can be made at a 

20 fair and reasonable price; and 

21 ‘‘(F) each of the concerns— 

22 ‘‘(i) is certified by a Federal agency 

23 or a State government as a small business 

24 concern owned and controlled by women; 
44

•S 2821 IS 

1 ‘‘(ii) is certified by a national certi2 fying entity approved by the Administrator 

3 as a small business concern owned and 

4 controlled by women; or 

5 ‘‘(iii) certifies to the contracting offi6 cer that it is a small business concern 

7 owned and controlled by women and pro8 vides adequate documentation in accord9 ance with standards established by the Ad10 ministration to support such certification. 

11 ‘‘(3) WAIVER.—With respect to a small busi12 ness concern owned and controlled by women, the 

13 Administrator may waive subparagraph (2)(A) if the 

14 Administrator determines that the concern is in an 

15 industry in which small business concerns owned 

16 and controlled by women are substantially underrep17 resented. 

18 ‘‘(4) IDENTIFICATION OF INDUSTRIES.— 

19 ‘‘(A) IN GENERAL.—The Administrator 

20 shall conduct a study to identify industries in 

21 which small business concerns owned and con22 trolled by women are underrepresented with re23 spect to Federal procurement contracting. 
45

•S 2821 IS 

1 ‘‘(B) DEADLINE.—Not later than 90 days 

2 after the date of the enactment of this subpara3 graph the Administrator shall— 

4 ‘‘(i) ensure the completion of the 

5 study described in this paragraph; 

6 ‘‘(ii) approve national certifying enti7 ties for the purposes of paragraph 

8 (2)(F)(ii); and 

9 ‘‘(iii) make determinations in accord10 ance with paragraph (3). 

11 ‘‘(5) ENFORCEMENT; PENALTIES.— 

12 ‘‘(A) VERIFICATION OF ELIGIBILITY.—In 

13 carrying out this subsection, the Administrator 

14 shall use existing procedures established by the 

15 Office of Hearings and Appeals relating to— 

16 ‘‘(i) the filing, investigation, and dis17 position by the Administrator of any chal18 lenge to the eligibility of a small business 

19 concern to receive assistance under this 

20 subsection (including a challenge, filed by 

21 an interested party, relating to the veracity 

22 of a certification made or information pro23 vided to the Administrator by a small busi24 ness concern under paragraph (2)(F)); and 
46

•S 2821 IS 

1 ‘‘(ii) verification by the Administrator 

2 of the accuracy of any certification made 

3 or information provided to the Adminis4 trator by a small business concern under 

5 paragraph (2)(F). 

6 ‘‘(B) EXAMINATIONS.—The procedures es7 tablished under subparagraph (A) may provide 

8 for program examinations (including random 

9 program examinations) by the Administrator of 

10 any small business concern making a certifi11 cation or providing information to the Adminis12 trator under paragraph (2)(F). 

13 ‘‘(C) PENALTIES.—In addition to the pen14 alties described in section 16(d), any small busi15 ness concern that is determined by the Admin16 istrator to have misrepresented the status of 

17 that concern as a small business concern owned 

18 and controlled by women for purposes of this 

19 subsection, shall be subject to— 

20 ‘‘(i) section 1001 of title 18, United 

21 States Code; and 

22 ‘‘(ii) sections 3729 through 3733 of 

23 title 31, United States Code. 

24 ‘‘(6) PROVISION OF DATA.—Upon the request 

25 of the Administrator, the head of any Federal de-
47

•S 2821 IS 

1 partment or agency shall promptly provide to the 

2 Administrator such information as the Adminis3 trator determines to be necessary to carry out this 

4 subsection.’’; and 

5 (2) by adding at the end the following: 

6 ‘‘(o) AUTHORITIES OF ADMINISTRATOR.—In carrying 

7 out its functions under sections 7(i), 8(a), and 8(b), the 

8 Administrator may do the following: 

9 ‘‘(1) Utilize, with their consent, the services and 

10 facilities of Federal agencies without reimbursement, 

11 and, with the consent of any State or political sub12 division of a State, accept and utilize the services 

13 and facilities of such State or subdivision without re14 imbursement. 

15 ‘‘(2) Accept voluntary and uncompensated serv16 ices, notwithstanding section 1342 of title 31, 

17 United States Code. 

18 ‘‘(3) Employ experts and consultants or organi19 zations thereof as authorized by section 3109 of title 

20 5, United States Code. No individual may be em21 ployed under the authority of this paragraph for 

22 more than 100 days in any fiscal year. No individual 

23 employed under this paragraph may be compensated 

24 at rates in excess of the daily equivalent of the high25 est rate payable under section 5332 of title 5, 
48

•S 2821 IS 

1 United States Code, including travel time. Individ2 uals employed under this paragraph may be allowed, 

3 while away from their homes or regular places of 

4 business, travel expenses (including per diem in lieu 

5 of subsistence) as authorized by section 5703 of title 

6 5, United States Code for persons in the Govern7 ment service employed intermittently. Contracts for 

8 employment under this paragraph may be renewed 

9 annually.’’. 

10 SEC. 502. PROCUREMENT CENTER REPRESENTATIVES. 

11 Section 15(l) of the Small Business Act (15 U.S.C. 

12 644(l)) is amended— 

13 (1) by striking ‘‘(l)(1)’’ and inserting ‘‘(2)’’; 

14 (2) by redesignating paragraphs (2) through 

15 (7) as paragraphs (3) through (8), respectively; 

16 (3) by inserting before paragraph (2), as so re17 designated, the following: 

18 ‘‘(l)(1) The Administrator shall assign not fewer than 

19 1 procurement center representative at each major pro20 curement center, in addition to no less than 1 for each 

21 State.’’; 

22 (4) in paragraph (2), as redesignated, by strik23 ing ‘‘to the representative referred to in subsection 

24 (k)(6)’’ and inserting ‘‘to the traditional procure25 ment center representative and the commercial mar-
49

•S 2821 IS 

1 ket representative, with each such position filled by 

2 a different individual, and each such representative 

3 having separate and distinct duties and responsibil4 ities.’’; and 

5 (5) by striking ‘‘paragraph (2)’’ each place that 

6 term appears and inserting ‘‘paragraph (3)’’.

Æ