I
107TH CONGRESS
2D SESSION
H. R. 3791
To establish a pilot program under which the Administrator of the Small
Business Administration, in consultation with regional technology consult-
ants, may make direct loans to technology-related small business con-
cerns.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 26, 2002
Mr. ISRAEL (for himself, Mr. HONDA, and Mr. GRUCCI) introduced the
following bill; which was referred to the Committee on Small Business
A BILL
To establish a pilot program under which the Administrator
of the Small Business Administration, in consultation
with regional technology consultants, may make direct
loans to technology-related small business concerns.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Small Business High
Technology Entrepreneurship Act of 2001’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds the following:
(1) The United States is uniquely positioned to
benefit from the development and commercialization
of technology resulting from the development of bio-
sciences, information technology, and electronic tech-
nology.
(2) Advances in biosciences, information tech-
nology, and electronic technology will create new
products, services, and businesses, leading to high
paying jobs and economic growth.
(3) Technology networks are becoming nec-
essary tools for businesses in the United States be-
cause of their ability to efficiently transfer informa-
tion.
(4) The development of biotechnology has pro-
duced processes such as 3-dimensional volume vis-
ualization and advanced signal processing which will
help revolutionize both medical diagnostics and sur-
gery.
(5) The ability of the electronic industry to rap-
idly develop and manufacture measuring devices,
sensors, semiconductors, and other electronic compo-
nents is an essential component to providing for the
national security of the United States.
(6) The bioscience, information technology, and
electronic technology sectors of the economy have all
produced important products, services, and busi-
nesses.
(7) Building on past gains in these sectors is
vital to growing the United States economy, pro-
moting health, and increasing educational opportuni-
ties.
(b) PURPOSE.—The purpose of this Act is to enable
small business concerns engaged in biotechnology, com-
puter technology, and electronics to produce essential new
products, businesses, employment opportunities, and eco-
nomic growth through technological innovation.
SEC. 3. TECHNOLOGY DIRECT LOAN PILOT PROGRAM.
(a) IN GENERAL.—The Administrator of the Small
Business Administration may make direct loans under sec-
tion 7(a) of the Small Business Act (15 U.S.C. 636(a))
to technology-related small business concerns located in a
technology region.
(b) SPECIAL RULES.—Notwithstanding the require-
ments of section 7(a) of the Small Business Act (15
U.S.C. 636(a)), the following special rules apply to loans
described in subsection (a):
(1) AMOUNT
OF
LOANS.—The Administrator
may make such a loan to a small business concern
if the total amount outstanding and committed to
such concern under subsection (a) of this section
and section 7(a) of the Small Business Act (15
U.S.C. 636(a)) would not exceed $5,000,000.
(2) TECHNOLOGICAL CONSULTATION.—
(A) IN GENERAL.—In evaluating each ap-
plication for such a loan, the Administrator
shall consult with, and give considerable weight
to the assessments, recommendations, and con-
clusions of, the regional technology consultant
regarding the technological feasibility and com-
mercial viability of the applicant’s business
plan, including any technological research or de-
velopment involved in such plan.
(B) SELECTION
OF
REGIONAL
TECH-
NOLOGY
CONSULTANTS.—The 
Administrator
shall select 1 non-profit organization located in
each technology region to serve as the tech-
nology consultant for such region. In selecting
each regional technology consultant, the Admin-
istrator shall ensure that such consultant has
knowledge and experience in evaluating the
technological feasibility and commercial viability
of business plans of technology-related small
business concerns.
(3) 
RULE
FOR
RESOLVING
REASONABLE
DOUBTS.—Recognizing that greater risk may be as-
sociated with such loans, any reasonable doubt re-
garding the soundness of the applicant’s business
plan (including the feasibility and viability of any
technological research or development involved in
such plan) or the soundness of the loan for purposes
of section 7(a)(6) of the Small Business Act (15
U.S.C. 536(a)(6)) shall be resolved in favor the ap-
plicant.
(c) TERMINATION.—The Administrator may not
make a loan pursuant to the special rules of this section
after the end of the 2-year period beginning on the date
of the enactment of this Act.
(d) ANNUAL REPORTS.—In any year during which
the Administrator is authorized to make loans under this
section, the Administrator shall submit to Congress a re-
port regarding the technology direct loan pilot project con-
ducted under this section. Such report shall include—
(1) a list of the technology-related small busi-
ness concerns approved for loans under this section
during such year and the amounts of such loans;
(2) recommendations for legislation that would
improve the pilot project; and
(3) recommendations regarding the expansion
of the pilot project to additional technology regions
or for an additional period of time.