I 

108TH CONGRESS 

2D SESSION H. R. 5108 

To reauthorize certain programs of the Small Business Administration, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 21, 2004 

Mr. MANZULLO introduced the following bill; which was referred to the 

Committee on Small Business 

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 

Sec. 101. Combination financing. 
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Sec. 102. Loan guarantee fees. 

Sec. 103. Express loans. 

Sec. 104. Deferred participation loan standards. 

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. International trade. 

TITLE II—AUTHORIZATIONS 

Subtitle A—Program authorization levels and additional reauthorizations 

Sec. 201. Program authorization levels. 

Sec. 202. Additional reauthorizations. 

Subtitle B—Paul D. Coverdell drug-free workplace program authorizations 

and sundry amendments 

Sec. 211. Paul D. Coverdell drug-free workplace program authorization provisions. 

Sec. 212. Grant provisions. 

Sec. 213. Drug-free communities coalitions as eligible intermediaries. 

Sec. 214. Promotion of effective practices of eligible intermediaries. 

Sec. 215. Report to Congress. 

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 VI—MISCELLANEOUS AMENDMENTS TO SMALL BUSINESS 

INVESTMENT ACT OF 1958 

Sec. 601. Amendment to definition of equity capital with respect to issuers of 

participating securities. 

Sec. 602. Amendment to small business investment company aggregate limitations provision. 
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Sec. 603. Investment of excess funds. 

Sec. 604. Clarification of maximum surety bond guarantee. 

1 TITLE I—SMALL 

2 MANUFACTURERS ASSISTANCE 

3 SEC. 101. COMBINATION FINANCING. 

4 (a) IN GENERAL.—Section 7(a) of the Small Busi5 ness Act (15 U.S.C. 636(a)) is amended by adding at the 

6 end the following new paragraph: 

7 ‘‘(31) COMBINATION FINANCING.— 

8 ‘‘(A) DEFINITIONS.—As used in this para9 graph— 

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

11 means financing comprised of a loan guaran12 teed under this subsection and a commercial 

13 loan; and 

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

15 loan that is part of a combination financing and 

16 no portion of which is guaranteed by the Fed17 eral Government. 

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

19 to a loan guarantee obtained by a small business 

20 concern under this subsection, if the small business 

21 concern also obtains a commercial loan. 

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

23 of any combination financing, the amount of the 

24 commercial loan which is part of such financing 
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1 shall not exceed the gross amount of the loan guar2 anteed under this subsection which is part of such 

3 financing. 

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

5 commercial loan obtained by the small business con6 cern— 

7 ‘‘(i) may be made by the participating 

8 lender that is providing financing under this 

9 subsection or by a different lender; 

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

11 ‘‘(iii) may be made by a lender in the Pre12 ferred Lenders Program, if applicable. 

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

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

15 the commercial loan shall be paid to the Adminis16 trator if the commercial loan has a senior credit po17 sition to that of the loan guaranteed under this 

18 paragraph. Any fee under the preceding sentence 

19 shall be paid by the participating lender and shall 

20 not be charged to the borrower. 

21 ‘‘(F) DEFERRED PARTICIPATION LOAN SECU22 RITY.—A loan guaranteed under this paragraph may 

23 be secured by a subordinated lien. 

24 ‘‘(G) COMPLETION OF APPLICATION PROC25 ESSING.—The Administrator shall complete proc-
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1 essing of an application for combination financing 

2 under this paragraph pursuant to the program au3 thorized by this subsection as it was operating on 

4 October 1, 2003. 

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

6 standards prescribed by the Administrator relating 

7 to the eligibility of small business concerns to obtain 

8 combination financing under this subsection which 

9 are in effect on September 1, 2004, shall apply with 

10 respect to combination financings made under this 

11 paragraph. Any modifications to such standards by 

12 the Administrator after such date shall not unrea13 sonably restrict the availability of combination fi14 nancing under this paragraph relative to the avail15 ability of such financing before such modifications.’’. 

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

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

18 SEC. 102. LOAN GUARANTEE FEES. 

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

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

21 read as follows: 

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

23 guaranteed under this subsection, the Administrator 

24 shall, in accordance with such terms and procedures 

25 as the Administrator shall establish by regulation, 
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1 assess and collect an annual fee in an amount equal 

2 to 0.36 percent of the outstanding balance of the de3 ferred participation share of the loan.’’. 

4 (b) GUARANTEE FEES.—Paragraph (18) of sub5 section (a) of section 7 of the Small Business Act (15 

6 U.S.C. 636(a)(18) is amended to read as follows: 

7 ‘‘(18) GUARANTEE FEES.—With respect to each 

8 loan guaranteed under this subsection (other than a 

9 loan that is repayable in 1 year or less), the Admin10 istration shall collect a guarantee fee, which shall be 

11 payable by the participating lender, and may be 

12 charged to the borrower, as follows: 

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

14 the deferred participation share of a total loan 

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

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

17 of the deferred participation share of a total 

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

19 not more than $700,000. 

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

21 of the deferred participation share of a total 

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

23 ‘‘(D) In addition to the fee under subpara24 graph (C), a guarantee fee equal to 0.25 per25 cent of the amount, if any, by which the de-
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1 ferred participation share of the loan exceeds 

2 $1,000,000.’’. 

3 SEC. 103. EXPRESS LOANS. 

4 (a) IN GENERAL.—Section 7(a) of the Small Busi5 ness Act (15 U.S.C. 636(a)), as amended by section 101, 

6 is further amended by adding at the end the following new 

7 paragraph: 

8 ‘‘(32) EXPRESS LOANS.— 

9 ‘‘(A) DEFINITIONS.—As used in this para10 graph: 

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

12 any lender authorized by the Administrator 

13 to participate in the Express Loan Pro14 gram. 

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

16 any loan made pursuant to this paragraph 

17 in which a lender utilizes to the maximum 

18 extent practicable its own loan analyses, 

19 procedures, and documentation. 

20 ‘‘(iii) The term ‘Express Loan Pro21 gram’ means the program for express loans 

22 established by the Administrator under 

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

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

25 more than 50 percent. 
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1 ‘‘(B) RESTRICTION TO EXPRESS LEND2 ER.—The authority to make an express loan 

3 shall be limited to those lenders deemed quali4 fied to make such loans by the Administrator. 

5 Designation as an express lender for purposes 

6 of making an express loan shall not prohibit 

7 such lender from taking any other action au8 thorized by the Administrator for that lender 

9 pursuant to this subsection. 

10 ‘‘(C) GRANDFATHERING OF EXISTING

11 LENDERS.—Any express lender shall retain 

12 such designation unless the Administrator de13 termines that the express lender has violated 

14 the law or regulations promulgated by the Ad15 ministrator or modifies the requirements to be 

16 an express lender and the lender no longer sat17 isfies those requirements. 

18 ‘‘(D) MAXIMUM LOAN AMOUNT.—The max19 imum loan amount under the Express Loan 

20 Program is $2,000,000. 

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

22 otherwise provided in this paragraph, the Ad23 ministrator shall take no regulatory, policy, or 

24 administrative action, without regard to wheth-
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1 er such action requires notification pursuant to 

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

3 ‘‘(i) requiring a lender to make an ex4 press loan pursuant to subparagraph (D); 

5 ‘‘(ii) limiting or modifying any term 

6 or condition of deferred participation loans 

7 made under this subsection (other than ex8 press loans) unless the Administrator im9 poses the same limit or modification on ex10 press loans; 

11 ‘‘(iii) transferring or re-allocating 

12 staff, staff responsibilities, resources, or 

13 funding, if the result of such transfer or 

14 re-allocation would be to increase the aver15 age loan processing, approval, or disburse16 ment time above the averages for those 

17 functions as of October 1, 2003, for loan 

18 guarantees approved under this subsection 

19 by employees of the Administration or 

20 through the Preferred Lenders Program; 

21 or 

22 ‘‘(iv) otherwise providing any incentive 

23 or disincentive which encourages lenders or 

24 borrowers to make or obtain loans under 

25 the Express Loan Program instead of 
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1 under the general loan authority of this 

2 subsection. 

3 ‘‘(F) COLLECTION AND REPORTING OF

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

5 made pursuant to the authority set forth in 

6 subparagraph (D), the Administrator shall, to 

7 the extent practicable, collect data on the pur8 pose for each such loan. The Administrator 

9 shall report monthly to the Committee on Small 

10 Business and Entrepreneurship of the Senate 

11 and the Committee on Small Business of the 

12 House of Representatives on the number of 

13 such loans and their purposes.’’. 

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

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

16 SEC. 104. DEFERRED PARTICIPATION LOAN STANDARDS. 

17 (a) IN GENERAL.—Section 7(a) of the Small Busi18 ness Act (15 U.S.C. 636(a)), as amended by section 101 

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

20 the following new paragraph: 

21 ‘‘(33) DEFERRED PARTICIPATION LOAN STAND22 ARDS.—Deferred participation loans made on or 

23 after October 1, 2004, under this subsection shall 

24 have the same terms and conditions (including max25 imum gross loan amounts and collateral require-
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1 ments) as were applicable to loans made under this 

2 subsection on October 1, 2003, except as otherwise 

3 provided in paragraph (18)(D), paragraph (31), or 

4 paragraph (32) and subject to the $1,500,000 limi5 tation on the total amount outstanding and com6 mitted in paragraph (3)(A), as in effect on October 

7 1, 2004. This paragraph shall not preclude the Ad8 ministrator from taking such action as necessary to 

9 maintain the loan program carried out under this 

10 subsection, subject to appropriations.’’. 

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

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

13 SEC. 105. INCREASE IN GUARANTEE AMOUNT AND INSTITU14 TION OF ASSOCIATED FEE. 

15 (a) INCREASE IN AMOUNT PERMITTED TO BE OUT16 STANDING AND COMMITTED.—Section 7(a)(3)(A) of the 

17 Small Business Act (15 U.S.C. 636(a)(3)(A)) is amended 

18 by striking ‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. 

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

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

21 SEC. 106. DEBENTURE SIZE. 

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

23 of 1958 (15 U.S.C. 696(2)) is amended to read as follows: 

24 ‘‘(2) MAXIMUM AMOUNT.— 
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1 ‘‘(A) IN GENERAL.—Loans made by the 

2 Administration under this section shall be lim3 ited to— 

4 ‘‘(i) $1,500,000 for each small busi5 ness concern if the loan proceeds will not 

6 be directed toward a goal or project de7 scribed in subparagraph (B) or (C); 

8 ‘‘(ii) $2,000,000 for each small busi9 ness concern if the loan proceeds will be di10 rected toward 1 or more of the public pol11 icy goals described under section 

12 501(d)(3); and 

13 ‘‘(iii) $4,000,000 for each project of a 

14 small manufacturer. 

15 ‘‘(B) DEFINITION.—As used in this para16 graph, the term ‘small manufacturer’ means a 

17 small business concern— 

18 ‘‘(i) the primary business of which is 

19 classified in sector 31, 32, or 33 of the 

20 North American Industrial Classification 

21 System; and 

22 ‘‘(ii) all of the production facilities of 

23 which are located in the United States.’’. 
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1 SEC. 107. JOB REQUIREMENTS. 

2 Section 501 of the Small Business Investment Act 

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

4 the following new subsection: 

5 ‘‘(e)(1) A project meets the objective set forth in sub6 section (d)(1) if the project creates or retains one job for 

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

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

9 a small manufacturer. 

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

11 which eligibility is based on the objectives set forth in 

12 paragraph (2) or (3) of subsection (d), if the development 

13 company’s portfolio of outstanding debentures creates or 

14 retains one job for every $50,000 guaranteed by the Ad15 ministration. 

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

17 enterprise zones, empowerment zones and enterprise com18 munities, labor surplus areas, as determined by the Sec19 retary of Labor, and for other areas designated by the 

20 Administrator, the development company’s portfolio may 

21 average not more than $75,000 per job created or re22 tained. 

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

24 be excluded from calculations under paragraph (2) or (3). 
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1 ‘‘(5) Under regulations prescribed by the Adminis2 trator, the Administrator may waive any requirement of 

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

4 ‘‘(6) As used in this subsection, the term ‘small man5 ufacturer’ means a small business concern— 

6 ‘‘(A) the primary business of which is classified 

7 in sector 31, 32, or 33 of the North American In8 dustrial Classification System; and 

9 ‘‘(B) all of the production facilities of which are 

10 located in the United States.’’. 

11 SEC. 108. REPORT REGARDING NATIONAL DATABASE OF 

12 SMALL MANUFACTURERS. 

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

14 consultation with the association of small business devel15 opment centers authorized by section 21(k) of the Small 

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

17 (1) study the feasibility of creating a national 

18 database of small manufacturers that institutions of 

19 higher education could access for purposes of meet20 ing procurement needs; and 

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

22 enactment of this Act, transmit a report to the Con23 gress regarding the findings and conclusions of such 

24 study. 
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1 (b) COST ESTIMATE.—The report referred to in sub2 section (a)(2) shall include an estimate of the cost of cre3 ating and maintaining the database described in sub4 section (a)(1). 

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

6 ‘‘small manufacturer’’ means a small business concern — 

7 (1) the primary business of which is classified 

8 in sector 31, 32, or 33 of the North American In9 dustrial Classification System; and 

10 (2) all of the production facilities of which are 

11 located in the United States. 

12 SEC. 109. INTERNATIONAL TRADE. 

13 (a) IN GENERAL.—Section 7(a)(16) of the Small 

14 Business Act (15 U.S.C. 636(a)(16)) is amended to read 

15 as follows: 

16 ‘‘(16) INTERNATIONAL TRADE.— 

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

18 determines that a loan guaranteed under this 

19 subsection will allow an eligible small business 

20 concern that is engaged in or adversely affected 

21 by international trade to improve its competi22 tive position, the Administrator may make such 

23 loan to assist such concern in— 

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

25 construction, renovation, modernization, 
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1 improvement, or expansion of productive 

2 facilities or equipment to be used in the 

3 United States in the production of goods 

4 and services involved in international 

5 trade; or 

6 ‘‘(ii) the refinancing of existing in7 debtedness that is not structured with rea8 sonable terms and conditions. 

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

10 this paragraph shall be secured by a first lien 

11 position or first mortgage on the property or 

12 equipment financed by the loan or on other as13 sets of the small business concern. 

14 ‘‘(C) ENGAGED IN INTERNATIONAL

15 TRADE.—For purposes of this paragraph, a 

16 small business concern is engaged in inter17 national trade if, as determined by the Adminis18 trator, the small business concern is in a posi19 tion to expand existing export markets or de20 velop new export markets. 

21 ‘‘(D) ADVERSELY AFFECTED BY INTER22 NATIONAL TRADE.—For purposes of this para23 graph, a small business concern is adversely af24 fected by international trade if, as determined 
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1 by the Administrator, the small business con2 cern— 

3 ‘‘(i) is confronting increased competi4 tion with foreign firms in the relevant mar5 ket; and 

6 ‘‘(ii) is injured by such competition. 

7 ‘‘(E) FINDINGS BY CERTAIN FEDERAL

8 AGENCIES.—For purposes of subparagraph 

9 (D)(ii) the Administrator shall accept any find10 ing of injury by the International Trade Com11 mission or any finding of injury by the Sec12 retary of Commerce pursuant to chapter 3 of 

13 title II of the Trade Act of 1974.’’. 

14 (b) LIMITATION INCREASE.—Section 7(a)(3)(B) of 

15 the Small Business Act (15 U.S.C. 636(a)(3)(B)) is 

16 amended— 

17 (1) by striking ‘‘1,250,000’’ and inserting 

18 ‘‘1,750,000’’; and 

19 (2) by striking ‘‘$750,000’’ and inserting 

20 ‘‘$1,250,000’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall take effect on October 1, 2004. 
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1 TITLE II—AUTHORIZATIONS 

2 Subtitle A—Program Authorization 

3 Levels and Additional Reauthor4 izations 

5 SEC. 201. PROGRAM AUTHORIZATION LEVELS. 

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

7 note) is amended— 

8 (1) in subparagraph (D) and subparagraph (E) 

9 of paragraph (1) of subsection (a), by striking ‘‘cer10 tification’’ and inserting ‘‘accreditation’’; and 

11 (2) by striking subsections (c) through (i) and 

12 inserting the following new subsections: 

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

14 following program levels are authorized for loans under 

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

16 ‘‘(1) $15,000,000 for fiscal year 2005. 

17 ‘‘(2) $15,000,000 for fiscal year 2006. 

18 ‘‘(d) FISCAL YEAR 2005.— 

19 ‘‘(1) PROGRAM LEVELS.—The following pro20 gram levels are authorized for fiscal year 2005: 

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

22 Act, the Administration is authorized to 

23 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) and as provided in sec16 tion 504 of the Small Business Investment 

17 Act 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 ‘‘(e) 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) and as provided in sec19 tion 504 of the Small Business Investment 

20 Act 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) DRUG-FREE WORKPLACE PROGRAM ASSIST5 ANCE.—Section 21(c)(3)(T) of the Small Business Act (15 

6 U.S.C. 648(c)(3)(T)) is amended by striking ‘‘October 1, 

7 2003’’ and inserting ‘‘October 1, 2006’’. 

8 (b) SMALL BUSINESS DEVELOPMENT CENTERS.— 

9 Section 21(a)(4)(C) of the Small Business Act (15 U.S.C. 

10 648(a)(4)(C)) is amended— 

11 (1) by amending clause (vii) to read as follows: 

12 ‘‘(vii) AUTHORIZATION OF APPROPRIA13 TIONS.—There are authorized to be appro14 priated to carry out this subparagraph— 

15 ‘‘(I) $130,000,000 for fiscal year 

16 2005; and 

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

18 2006.’’; 

19 (2) by redesignating clause (viii) as clause (ix); 

20 and 

21 (3) by inserting after clause (vii) the following: 

22 ‘‘(viii) LIMITATION.—From the funds ap23 propriated pursuant to clause (vii), the Admin24 istration shall reserve not less than $1,000,000 

25 in each fiscal year to develop portable assist-
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1 ance for startup and sustainability non-match2 ing grant programs to be conducted by eligible 

3 small business development centers in commu4 nities that are economically challenged as a re5 sult of a business or government facility down 

6 sizing or closing, which has resulted in the loss 

7 of jobs or small business instability. A non8 matching grant under this clause shall not ex9 ceed $100,000, and shall be used for small 

10 business development center personnel expenses 

11 and related small business programs and serv12 ices.’’. 

13 Subtitle B—Paul D. Coverdell 

14 Drug-free Workplace Program 

15 Authorizations and Sundry 

16 Amendments 

17 SEC. 211. PAUL D. COVERDELL DRUG-FREE WORKPLACE 

18 PROGRAM AUTHORIZATION PROVISIONS. 

19 (a) IN GENERAL.—Paragraph (1) of section 27(g) of 

20 the Small Business Act (15 U.S.C. 654(g)(1)) is amended 

21 by striking ‘‘, $5,000,000’’ in the first sentence and all 

22 that follows through ‘‘subsection’’ in the second sentence 

23 and inserting the following: ‘‘(other than subsection 

24 (b)(2)), $5,000,000 for each of fiscal years 2005 and 

25 2006. Amounts made available under this paragraph’’. 
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1 (b) LIMITATION ON AUTHORIZATION FOR SMALL

2 BUSINESS DEVELOPMENT CENTERS.—Paragraph (2) of 

3 section 27(g) of the Small Business Act (15 U.S.C. 

4 654(g)) is amended by striking ‘‘this subsection, not more 

5 than the greater of 10 percent or $1,000,000’’ and insert6 ing ‘‘paragraph (1) for each of fiscal years 2005 and 2006, 

7 not more than the greater of 10 percent or $500,000’’. 

8 (c) ADDITIONAL AUTHORIZATION FOR TECHNICAL

9 ASSISTANCE GRANTS.—Subsection (g) of section 27 of the 

10 Small Business Act (15 U.S.C. 654) is amended by adding 

11 at the end the following new paragraph: 

12 ‘‘(3) ADDITIONAL AUTHORIZATION FOR TECH13 NICAL ASSISTANCE GRANTS.—There is authorized to 

14 be appropriated to carry out subsection (b)(2), 

15 $1,500,000 for each of fiscal years 2005 and 2006. 

16 Amounts made available under this paragraph shall 

17 remain available until expended.’’. 

18 (d) LIMITATION ON ADMINISTRATIVE COSTS.—Sub19 section (g) of section 27 of the Small Business Act (15 

20 U.S.C. 654), as amended by subsection (c), is further 

21 amended by adding at the end the following new para22 graph: 

23 ‘‘(4) LIMITATION ON ADMINISTRATIVE COSTS.— 

24 Not more than 5 percent of the total amount made 

25 available under this subsection for any fiscal year 
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1 shall be used for administrative costs (determined 

2 without regard to the administrative costs of eligible 

3 intermediaries).’’. 

4 SEC. 212. GRANT PROVISIONS. 

5 (a) ADDITIONAL GRANTS FOR TECHNICAL ASSIST6 ANCE.—Subsection (b) of section 27 of the Small Business 

7 Act (15 U.S.C. 654) is amended— 

8 (1) by striking ‘‘There is established’’ and in9 serting the following: 

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

11 (2) by adding at the end the following new 

12 paragraph: 

13 ‘‘(2) ADDITIONAL GRANTS FOR TECHNICAL AS14 SISTANCE.—In addition to grants under paragraph 

15 (1), the Administrator may make grants to, or enter 

16 into cooperative agreements or contracts with, any 

17 grantee for the purpose of providing, in cooperation 

18 with one or more small business development cen19 ters, technical assistance to small business concerns 

20 seeking to establish a drug-free workplace pro21 gram.’’. 

22 (b) GRANTS TO BE FOR 2 YEARS.—Subsection (b) 

23 of section 27 of the Small Business Act (15 U.S.C. 

24 654(b)), as amended by subsection (a), is further amended 

25 by adding at the end the following new paragraph: 
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1 ‘‘(3) GRANTS TO BE FOR 2 YEARS.—Each grant 

2 made under this subsection shall be for a period of 

3 2 years, subject to an annual performance review by 

4 the Administrator.’’. 

5 SEC. 213. DRUG-FREE COMMUNITIES COALITIONS AS ELIGI6 BLE INTERMEDIARIES. 

7 Subparagraph (D) of section 27(a)(2) of the Small 

8 Business Act (15 U.S.C. 654(a)(2)) is amended to read 

9 as follows: 

10 ‘‘(D)(i) the purpose of which is— 

11 ‘‘(I) to develop comprehensive 

12 drug-free workplace programs or to 

13 supply drug-free workplace services; 

14 or 

15 ‘‘(II) to provide other forms of 

16 assistance and services to small busi17 ness concerns; or 

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

19 under chapter 2 of the National Narcotics 

20 Leadership Act of 1988 (21 U.S.C. 1521 

21 et seq.).’’. 
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1 SEC. 214. PROMOTION OF EFFECTIVE PRACTICES OF ELIGI2 BLE INTERMEDIARIES. 

3 Section 27 of the Small Business Act (15 U.S.C. 654) 

4 is amended by striking subsection (c) and inserting the 

5 following new subsection: 

6 ‘‘(c) PROMOTION OF EFFECTIVE PRACTICES OF ELI7 GIBLE INTERMEDIARIES.— 

8 ‘‘(1) TECHNICAL ASSISTANCE AND INFORMA9 TION.—The Administrator, after consultation with 

10 the Director of the Center for Substance Abuse and 

11 Prevention, shall provide technical assistance and in12 formation to each eligible intermediary under sub13 section (b) regarding the most effective practices in 

14 establishing and carrying out drug-free workplace 

15 programs. 

16 ‘‘(2) EVALUATION OF PROGRAM.— 

17 ‘‘(A) DATA COLLECTION AND ANALYSIS.— 

18 Each eligible intermediary receiving a grant 

19 under this section shall establish a system to 

20 collect and analyze information regarding the 

21 effectiveness of drug-free workplace programs 

22 established with assistance provided under this 

23 section through the intermediary, including in24 formation regarding any increase or decrease 

25 among employees in drug use, awareness of the 

26 adverse consequences of drug use, and absen-
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1 teeism, injury, and disciplinary problems related 

2 to drug use. Such system shall conform to such 

3 requirements as the Administrator, after con4 sultation with the Director of the Center for 

5 Substance Abuse and Prevention, may pre6 scribe. Not more than 5 percent of the amount 

7 of each grant made under subsection (b) shall 

8 be used by the eligible intermediary to carry out 

9 this paragraph. 

10 ‘‘(B) METHOD OF EVALUATION.—The Ad11 ministrator, after consultation with the Director 

12 of the Center for Substance Abuse and Preven13 tion, shall provide technical assistance and 

14 guidance to each eligible intermediary receiving 

15 a grant under subsection (b) regarding the col16 lection and analysis of information to evaluate 

17 the effectiveness of drug-free workplace pro18 grams established with assistance provided 

19 under this section, including the information re20 ferred to in paragraph (1). Such assistance 

21 shall include the identification of additional in22 formation suitable for measuring the benefits of 

23 drug-free workplace programs to the small busi24 ness concern and to the concern’s employees 
32 

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1 and the identification of methods suitable for 

2 analyzing such information.’’. 

3 SEC. 215. REPORT TO CONGRESS. 

4 Not later than March 31, 2006, the Administrator 

5 of the Small Business Administration, in consultation with 

6 the Secretary of Labor, the Secretary of Health and 

7 Human Services, and the Director of National Drug Con8 trol Policy, shall submit to the Congress a report that— 

9 (1) analyzes the information collected under 

10 section 27(c) of the Small Business Act; 

11 (2) identifies trends in such information; and 

12 (3) evaluates the effectiveness of the drug-free 

13 workplace programs established with assistance 

14 under section 27 of the Small Business Act (15 

15 U.S.C. 654). 

16 TITLE III—ADMINISTRATION AC17 COUNTABILITY AND MANAGE18 MENT 

19 SEC. 301. DOCUMENT RETENTION AND INVESTIGATIONS. 

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

21 639(e)) is amended by striking the matter preceding para22 graph (2) and inserting the following: 

23 ‘‘(e) DOCUMENT RETENTION; INVESTIGATIONS.— 
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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 
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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)— 
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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 Administrator’’; 

25 and 
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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-
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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 Administration 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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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 
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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-
40 

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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 new 

6 subsection: 

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

8 are authorized to be appropriated for carrying out this sec9 tion— 

10 ‘‘(1) $1,500,000 for fiscal year 2005; and 

11 ‘‘(2) $2,000,000 for fiscal year 2006.’’. 

12 SEC. 434. NATIONAL VETERANS BUSINESS DEVELOPMENT 

13 CORPORATION. 

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

15 657c(a)) is amended by adding at the end the following: 

16 ‘‘Notwithstanding any other provision of law, the Corpora17 tion is a private entity and is not an agency, instrumen18 tality, authority, entity, or establishment of the United 

19 States Government.’’. 
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1 TITLE V—SMALL BUSINESS 

2 PROCUREMENT OPPORTUNITIES 

3 SEC. 501. WOMEN-OWNED SMALL BUSINESS CONCERNS; AU4 THORITIES OF ADMINISTRATOR. 

5 Subsections (m) and (n) of section 8 of the Small 

6 Business Act (15 U.S.C. 637 (m) and (n)) are amended 

7 to read as follows: 

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

9 SMALL BUSINESS CONCERNS.— 

10 ‘‘(1) DEFINITIONS.—In this subsection, the fol11 lowing definitions apply: 

12 ‘‘(A) SMALL BUSINESS CONCERN OWNED

13 AND CONTROLLED BY WOMEN.—The term 

14 ‘small business concern owned and controlled by 

15 women’ has the meaning given such term in 

16 section 3(n), except that ownership shall be de17 termined without regard to any community 

18 property law. 

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

20 In accordance with this subsection, a contracting of21 ficer may restrict competition for any contract for 

22 the procurement of goods or services by the Federal 

23 Government to small business concerns owned and 

24 controlled by women, if— 
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1 ‘‘(A) each of the concerns is not less than 

2 51 percent owned by 1 or more women who are 

3 economically disadvantaged (and such owner4 ship is determined without regard to any com5 munity property law); 

6 ‘‘(B) the contracting officer has a reason7 able expectation that 2 or more small business 

8 concerns owned and controlled by women will 

9 submit offers for the contract; 

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

11 goods or services with respect to an industry 

12 identified by the Administrator pursuant to 

13 paragraph (4); 

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

15 contract (including options) does not exceed— 

16 ‘‘(i) $5,000,000, in the case of a con17 tract assigned an industrial classification 

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

19 American Industrial Classification System; 

20 or 

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

22 other contracts; 

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

24 officer, the contract award can be made at a 

25 fair and reasonable price; and 
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1 ‘‘(F) each of the concerns— 

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

3 or a State government as a small business 

4 concern owned and controlled by women; 

5 ‘‘(ii) is certified by a national certi6 fying entity approved by the Administrator 

7 as a small business concern owned and 

8 controlled by women; or 

9 ‘‘(iii) certifies to the contracting offi10 cer that it is a small business concern 

11 owned and controlled by women and pro12 vides adequate documentation in accord13 ance with standards established by the Ad14 ministration to support such certification. 

15 ‘‘(3) WAIVER.—With respect to a small busi16 ness concern owned and controlled by women, the 

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

18 Administrator determines that the concern is in an 

19 industry in which small business concerns owned 

20 and controlled by women are substantially underrep21 resented. 

22 ‘‘(4) IDENTIFICATION OF INDUSTRIES.— 

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

24 shall conduct a study to identify industries in 

25 which small business concerns owned and con-
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1 trolled by women are underrepresented with re2 spect to Federal procurement contracting. 

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

4 after the date of the enactment of this subpara5 graph the Administrator shall— 

6 ‘‘(i) ensure the completion of the 

7 study described in this paragraph; 

8 ‘‘(ii) approve national certifying enti9 ties for the purposes of paragraph 

10 (2)(F)(ii); and 

11 ‘‘(iii) make determinations in accord12 ance with paragraph (3). 

13 ‘‘(5) ENFORCEMENT; PENALTIES.— 

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

15 carrying out this subsection, the Administrator 

16 shall use existing procedures established by the 

17 Office of Hearings and Appeals relating to— 

18 ‘‘(i) the filing, investigation, and dis19 position by the Administration of any chal20 lenge to the eligibility of a small business 

21 concern to receive assistance under this 

22 subsection (including a challenge, filed by 

23 an interested party, relating to the veracity 

24 of a certification made or information pro25 vided to the Administration by a small 
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1 business concern under paragraph (2)(F)); 

2 and 

3 ‘‘(ii) verification by the Administrator 

4 of the accuracy of any certification made 

5 or information provided to the Administra6 tion by a small business concern under 

7 paragraph (2)(F). 

8 ‘‘(B) EXAMINATIONS.—The procedures es9 tablished under subparagraph (A) may provide 

10 for program examinations (including random 

11 program examinations) by the Administrator of 

12 any small business concern making a certifi13 cation or providing information to the Adminis14 trator under paragraph (2)(F). 

15 ‘‘(C) PENALTIES.—In addition to the pen16 alties described in section 16(d), any small busi17 ness concern that is determined by the Admin18 istrator to have misrepresented the status of 

19 that concern as a small business concern owned 

20 and controlled by women for purposes of this 

21 subsection, shall be subject to— 

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

23 States Code; and 

24 ‘‘(ii) sections 3729 through 3733 of 

25 title 31, United States Code. 
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1 ‘‘(6) PROVISION OF DATA.—Upon the request 

2 of the Administrator, the head of any Federal de3 partment or agency shall promptly provide to the 

4 Administrator such information as the Adminis5 trator determines to be necessary to carry out this 

6 subsection. 

7 ‘‘(n) AUTHORITIES OF ADMINISTRATOR.—In car8 rying out subsections 7(i), 8(a), and 8(b) the Adminis9 trator may do the following: 

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

11 facilities of Federal agencies without reimbursement, 

12 and, with the consent of any State or political sub13 division of a State, accept and utilize the services 

14 and facilities of such State or subdivision without re15 imbursement. 

16 ‘‘(2) Accept voluntary and uncompensated serv17 ices, notwithstanding section 1342 of title 31, 

18 United States Code. 

19 ‘‘(3) Employ experts and consultants or organi20 zations thereof as authorized by section 3109 of title 

21 5, United States Code. No individual may be em22 ployed under the authority of this paragraph for 

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

24 employed under this paragraph may be compensated 

25 at rates in excess of the daily equivalent of the high-
47 

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1 est rate payable under section 5332 of title 5, 

2 United States Code, including traveltime. Individuals 

3 employed under this paragraph may be allowed, 

4 while away from their homes or regular places of 

5 business, travel expenses (including per diem in lieu 

6 of subsistence) as authorized by section 5703 of title 

7 5, United States Code for persons in the Govern8 ment service employed intermittently. Contracts for 

9 employment under this paragraph may be renewed 

10 annually.’’. 

11 SEC. 502. PROCUREMENT CENTER REPRESENTATIVES. 

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

13 644(l)) is amended— 

14 (1) in the last sentence of paragraph (1), by 

15 striking ‘‘to the representative referred to in sub16 section (k)(6)’’ and inserting ‘‘the traditional pro17 curement center representative and the commercial 

18 market representative, with each position filled by a 

19 different individual, and each such representative 

20 having separate and distinct duties and responsibil21 ities.’’; and 

22 (2) by adding at the end the following new 

23 paragraph: 

24 ‘‘(8) The Administration shall assign at least 1 pro25 curement center representative at each major procurement 
48 

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1 center, in addition to at least 1 procurement center rep2 resentative for each State.’’. 

3 TITLE VI—MISCELLANEOUS 

4 AMENDMENTS TO SMALL 

5 BUSINESS INVESTMENT ACT 

6 OF 1958 

7 SEC. 601. AMENDMENT TO DEFINITION OF EQUITY CAPITAL 

8 WITH RESPECT TO ISSUERS OF PARTICI9 PATING SECURITIES. 

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

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

12 (1) in the first sentence, by striking ‘‘sub13 section’’ and inserting ‘‘Act’’; and 

14 (2) in the second sentence, by striking ‘‘contin15 gent upon and limited to the extent of earnings’’ and 

16 inserting ‘‘from appropriate sources, as determined 

17 by the Administration’’. 

18 SEC. 602. AMENDMENT TO SMALL BUSINESS INVESTMENT 

19 COMPANY AGGREGATE LIMITATIONS PROVI20 SION. 

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

22 of 1958 (15 U.S.C. 686(a)) is amended by to read as fol23 lows: 

24 ‘‘(a) If a small business investment company has out25 standing financing from the Administration, the aggregate 
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1 amount of obligations and securities acquired and for 

2 which commitments may be issued by the company under 

3 this title for a single enterprise shall not, without the ap4 proval of the Administration, exceed the greater of 20 per5 cent of the private capital of the company or 10 percent 

6 of the sum of: 

7 ‘‘(1) (1) the private capital of the company; 

8 ‘‘(2) all leverage, whether or not outstanding, 

9 issued to the company; and 

10 ‘‘(3) all unexercised commitments issued to the 

11 company by the Administration.’’. 

12 SEC. 603. INVESTMENT OF EXCESS FUNDS. 

13 Section 308(b) of the Small Business Act (15 U.S.C. 

14 687(b)) is amended by striking the last sentence and in15 serting the following new sentence: ‘‘Such companies with 

16 outstanding financings are authorized to invest funds not 

17 needed for their operations— 

18 ‘‘(1) in direct obligations of, or obligations 

19 guaranteed as to principal and interest by, the 

20 United States; 

21 ‘‘(2) in certificates of deposit or other accounts 

22 of federally insured banks or other federally insured 

23 depository institutions, if the certificates or other ac24 counts mature or are otherwise fully available not 
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1 more than 1 year after the date of the investment; 

2 or 

3 ‘‘(3) in mutual funds, securities, or other in4 struments that consist of, or represent pooled assets 

5 of, investments described in paragraphs (1) or (2).’’. 

6 SEC. 604. CLARIFICATION OF MAXIMUM SURETY BOND 

7 GUARANTEE. 

8 Section 411(a)(1) of the Small Business Investment 

9 Act of 1958 (15 U.S.C. 694b(a)(1)) is amended by strik10 ing ‘‘contract up to’’ and inserting ‘‘total work order or 

11 contract amount at the time of bond execution that does 

12 not exceed’’. 

Æ