I 
109TH CONGRESS 
2D SESSION 
H. R. 5352 
To reauthorize programs to assist small business concerns, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2006 
Mr. MANZULLO introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To reauthorize programs to assist small business concerns, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Reauthorization Act of 2006’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—AUTHORIZATIONS 
Sec. 101. Section 20 reauthorizations. 
Sec. 102. Reauthorizations for certain Small Business Act programs. 
Sec. 103. Reauthorizations for certain other programs. 
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TITLE II—FINANCE 
Subtitle A—Certified Development Company Program 
Sec. 201. Short title; definition. 
Sec. 202. Development Company Loan Programs. 
Sec. 203. Loan liquidations. 
Sec. 204. Additional equity injections. 
Sec. 205. Businesses in low-income areas. 
Sec. 206. Combinations of certain goals. 
Sec. 207. Maximum 504 and 7(a) loan eligibility. 
Sec. 208. Refinancing. 
Sec. 209. Fees. 
Sec. 210. Technical correction. 
Sec. 211. Small Business Investment Act definition. 
Sec. 212. Repeal of sunset on reserve requirements for premier certified lend-
ers. 
Sec. 213. Eligibility of development companies to be designated as certified de-
velopment companies and authority to issue debentures; and 
providing an area of operational authority, funding restrictions, 
and ethical requirements. 
Sec. 214. Conforming amendments. 
Sec. 215. Closing costs. 
Sec. 216. Definition of rural. 
Sec. 217. Regulations and effective date. 
Subtitle B—Small Business Lending Improvement 
Sec. 221. Short title. 
Sec. 222. National preferred lenders program. 
Sec. 223. Maximum loan amount. 
Sec. 224. Alternative size standard. 
Sec. 225. Timely payment of 7(a) secondary market fee. 
Subtitle C—Small Business Investment 
Sec. 241. Participating Security Small Business Investment Companies. 
TITLE III—ENTREPRENEURSHIP 
Subtitle A—National Small Business Regulatory Assistance 
Sec. 301. Short title. 
Sec. 302. Purpose. 
Sec. 303. Definitions. 
Sec. 304. Small business regulatory assistance program. 
Sec. 305. Promulgation of regulations. 
Subtitle B—Vocational and Technical Entrepreneurship Development 
Sec. 311. Short title. 
Sec. 312. Vocational and technical entrepreneurship development program. 
Subtitle C—Native American Small Business Development 
Sec. 321. Findings and purposes. 
Sec. 322. Small Business Development Center assistance to Indian tribe mem-
bers, Alaska Natives, and Native Hawaiians. 
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Sec. 323. State consultation with tribal organizations. 
Subtitle D—Second-Stage Small Business Development 
Sec. 331. Short title. 
Sec. 332. Purpose. 
Sec. 333. Pilot program. 
Sec. 334. Regulations. 
Sec. 335. Definitions. 
Sec. 336. Authorization of appropriations. 
Subtitle E—Trade Provisions 
Sec. 341. Establishment of Associate Administrator for International Trade in 
Small Business Administration. 
TITLE IV—MISCELLANEOUS 
Sec. 401. Small business disaster loans. 
Sec. 402. Disaster loans for incidents of national significance. 
Sec. 403. Small Business Development Center Portability Grants. 
Sec. 404. Assistance to out-of-state businesses. 
Sec. 405. Elimination of unnecessary programs. 
Sec. 406. Technical correction. 
Sec. 407. Combating waste, fraud, and abuse. 
Sec. 408. Relief available against Administrator. 
Sec. 409. Economic injury disaster loans to nonprofits. 
Sec. 410. Extension of co-sponsorship authority. 
Sec. 411. Regulations on size standards of franchisees. 
Sec. 412. District Directors prohibited from being involved in selection of 
SBDC directors. 
TITLE I—AUTHORIZATIONS 
SEC. 101. SECTION 20 REAUTHORIZATIONS. 
Section 20 of the Small Business Act (15 U.S.C. 647) 
is amended by inserting after subsection (e) the following 
new subsections: 
‘‘(f) FISCAL YEAR 2007.— 
‘‘(1) PROGRAM
LEVELS.—The following pro-
gram levels are authorized for fiscal year 2007: 
‘‘(A) For the programs authorized by this 
Act, the Administrator is authorized to make— 
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‘‘(i) $80,000,000 in technical assist-
ance grants, as provided in section 7(m); 
and 
‘‘(ii) $110,000,000 in direct loans, as 
provided in section 7(m). 
‘‘(B) For the programs authorized by this 
Act, the Administrator is authorized to make 
$27,050,000,000 in deferred participation loans 
and other financings. Of such sum, the Admin-
istrator is authorized to make— 
‘‘(i) $18,000,000,000 in general busi-
ness loans, as provided in section 7(a); 
‘‘(ii) $8,500,000,000 in certified de-
velopment company financings, as provided 
in section 7(a)(13) and as provided in sec-
tion 504 of the Small Business Investment 
Act of 1958; 
‘‘(iii) $500,000,000 in loans, as pro-
vided in section 7(a)(21); and 
‘‘(iv) $50,000,000 in loans, as pro-
vided in section 7(m). 
‘‘(C) For the programs authorized by title 
III of the Small Business Investment Act of 
1958, the Administrator is authorized to 
make— 
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‘‘(i) $300,000,000 in purchases of 
participating securities; and 
‘‘(ii) $4,000,000,000 in guarantees of 
debentures. 
‘‘(D) For the programs authorized by part 
B of title IV of the Small Business Investment 
Act of 1958, the Administrator is authorized to 
enter 
into 
guarantees 
not 
to 
exceed 
$6,500,000,000, of which not more than 50 
percent may be in bonds approved pursuant to 
section 411(a)(3) of that Act. 
‘‘(E) The Administrator is authorized to 
make grants or enter into cooperative agree-
ments for a total amount of $7,000,000 for the 
Service Corps of Retired Executives program 
authorized by section 8(b)(1). 
‘‘(2) ADDITIONAL AUTHORIZATIONS.— 
‘‘(A) There are authorized to be appro-
priated to the Administrator for fiscal year 
2007 such sums as may be necessary to carry 
out the provisions of this Act not elsewhere pro-
vided for, including administrative expenses and 
necessary loan capital for disaster loans pursu-
ant to section 7(b), and to carry out the Small 
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