I
106TH CONGRESS
1ST SESSION
H. R. 1568
To provide technical, financial, and procurement assistance to veteran owned
small businesses, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 27, 1999
Mr. TALENT (for himself, Mr. STUMP, Mrs. MCCARTHY, of New York, Mr.
EVANS, Mr. QUINN, Mr. PHELPS, Mr. MORAN of Kansas, Mr. FILNER,
Mr. BARTLETT of Maryland, Mrs. KELLY, and Mr. PASCRELL) intro-
duced the following bill; which was referred to the Committee on Small
Business, and in addition to the Committee on Veterans’ Affairs, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To provide technical, financial, and procurement assistance
to veteran owned small businesses, 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.
This Act may be cited as the ‘‘Veterans Entrepre-
neurship and Small Business Development Act of 1999’’.
SEC. 2. TABLE OF CONTENTS.
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—GENERAL PROVISIONS
Sec. 101. Findings.
Sec. 102. Purpose.
Sec. 103. Definitions.
TITLE II—VETERANS BUSINESS DEVELOPMENT
Sec. 201. Veterans business development in the Small Business Administration.
Sec. 202. National Veterans Business Development Corporation.
Sec. 203. Advisory Committee on Veterans Business Affairs.
TITLE III—TECHNICAL ASSISTANCE
Sec. 301. SCORE program.
Sec. 302. Entrepreneurial assistance.
TITLE IV—FINANCIAL ASSISTANCE
Sec. 401. General business loan program.
Sec. 402. Loans to individuals called to active duty in the Armed Forces.
Sec. 403. Microloan program.
Sec. 404. Delta loan program.
Sec. 405. State development company program.
TITLE V—PROCUREMENT ASSISTANCE
Sec. 501. Subcontracting.
Sec. 502. Participation in Federal procurement.
TITLE VI—REPORTS AND DATA COLLECTION
Sec. 601. Reporting requirements.
Sec. 602. Report on small business and competition.
Sec. 603. Annual report of the Administrator.
Sec. 604. Data and information collection.
TITLE VII—MISCELLANEOUS PROVISIONS
Sec. 701. Administrator’s order.
Sec. 702. Small Business Administration Office of Advocacy.
Sec. 703. Study of fixed-asset small business loans.
TITLE I—GENERAL PROVISIONS
SEC. 101. FINDINGS.
Congress finds the following:
(1) Veterans of the United States Armed
Forces have been and continue to be vital to the
small business enterprises of the United States;
(2) In serving the United States, veterans often
faced great risks to preserve the American dream of
freedom and prosperity.
(3) The United States has done too little to as-
sist veterans, particularly service-disabled veterans,
in playing a greater role in the economy of the
United States by forming and expanding small busi-
ness enterprises.
(4) Medical advances and new medical tech-
nologies have made it possible for service-disabled
veterans to play a much more active role in the for-
mation and expansion of small business enterprises
in the United States.
(5) The United States must provide additional
assistance and support to veterans to better equip
them to form and expand small business enterprises,
thereby enabling them to realize the American
dream that they fought to protect.
SEC. 102. PURPOSE.
The purpose of this Act is to expand existing and es-
tablish new assistance programs for veterans who own or
operate small businesses. This Act accomplishes this pur-
pose by—
(1) expanding the eligibility for certain small
business assistance programs to include veterans;
(2) directing certain departments and agencies
of the United States to take actions that enhance
small business assistance to veterans; and
(3) establishing new institutions to provide
small business assistance to veterans or to support
the institutions that provide such assistance.
SEC. 103. DEFINITIONS.
(a) SMALL BUSINESS ACT.—Section 3 of the Small
Business Act (15 U.S.C. 632) is amended by adding at
the end the following:
‘‘(q) DEFINITIONS RELATING TO VETERANS.—For
the purposes of this Act the following definitions shall
apply:
‘‘(1) SERVICE-DISABLED VETERAN.—The term
‘service-disabled veteran’ means a veteran with a
disability that is service-connected (as defined in sec-
tion 101(16) of title 38, United States Code).
‘‘(2) SMALL BUSINESS CONCERN OWNED AND
CONTROLLED
BY
SERVICE-DISABLED
VETERANS.—
The term ‘small business concern owned and con-
trolled by service-disabled veterans’ means a small
business concern—
‘‘(A) not less than 51 percent of which is
owned by 1 or more service-disabled veterans
or, in the case of any publicly owned business,
not less than 51 percent of the stock of which
is owned by 1 or more service-disabled veterans;
and
‘‘(B) the management and daily business
operations of which are controlled by 1 or more
service-disabled veterans or, in the case of a
veteran with permanent and severe disability,
the spouse or permanent caregiver of such vet-
eran.
‘‘(3) SMALL BUSINESS CONCERN OWNED AND
CONTROLLED BY VETERANS.—The term ‘small busi-
ness concern owned and controlled by veterans’
means a small business concern—
‘‘(A) not less than 51 percent of which is
owned by 1 or more veterans or, in the case of
any publicly owned business, not less than 51
percent of the stock of which is owned by 1 or
more veterans; and
‘‘(B) the management and daily business
operations of which are controlled by 1 or more
veterans.
‘‘(4) VETERAN.—The term ‘veteran’ has the
meaning given the term in section 101(2) of title 38,
United States Code.’’.
(b) APPLICABILITY TO THIS ACT.—In this Act, the
definitions contained in section 3(q) of the Small Business
Act, as added by this section, shall apply.
TITLE II—VETERANS BUSINESS
DEVELOPMENT
SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE
SMALL BUSINESS ADMINISTRATION.
(a) IN GENERAL.—Section 4(b)(1) of the Small Busi-
ness Act (15 U.S.C. 633(b)(1)) is amended—
(1) in the 5th sentence, by striking ‘‘four Asso-
ciate Administrators’’ and inserting ‘‘five Associate
Administrators’’; and
(2) by inserting after the 5th sentence the fol-
lowing: ‘‘One such Associate Administrator shall be
the Associate Administrator for Veterans Business
Development, who shall administer the Office of Vet-
erans Business Development established under sec-
tion 32.’’.
(b) OFFICE
OF VETERANS BUSINESS DEVELOP-
MENT; ASSOCIATE ADMINISTRATOR.—The Small Business
Act (15 U.S.C. 631 et seq.) is further amended—
(1) by redesignating section 32 as section 34;
and
(2) by inserting after section 31 the following:
‘‘SEC. 32. VETERANS PROGRAMS.
‘‘(a) OFFICE
OF VETERANS BUSINESS DEVELOP-
MENT.—There is established in the Administration an Of-
fice of Veterans Business Development, which shall be ad-
ministered by the Associate Administrator for Veterans
Business Development (in this section referred to as the
‘Associate 
Administrator’) 
appointed 
under 
section
4(b)(1).
‘‘(b) ASSOCIATE ADMINISTRATOR
FOR VETERANS
BUSINESS
DEVELOPMENT.—The 
Associate
Administrator—
‘‘(1) shall be an appointee in the Senior Execu-
tive Service;
‘‘(2) shall be responsible for the formulation,
execution, and promotion of policies and programs of
the Administration that provide assistance to small
business concerns owned and controlled by veterans
and small business concerns owned and controlled by
service-disabled veterans. The Associate Adminis-
trator shall act as an ombudsman for full consider-
ation of veterans in all programs of the Administra-
tion; and
‘‘(3) shall report to and be responsible directly
to the Administrator.’’.
SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT
CORPORATION.
The Small Business Act (15 U.S.C. 631 et seq.) is
further amended by adding after section 32 (as added by
this Act) the following:
‘‘SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT
CORPORATION.
‘‘(a) ESTABLISHMENT.—There is established a feder-
ally chartered corporation known as the National Veterans
Business Development Corporation (in this section re-
ferred to as the ‘‘Corporation’’) which shall be incor-
porated under the laws of the District of Columbia and
which shall have the powers granted in this section.
‘‘(b) PURPOSES OF THE CORPORATION.—The pur-
poses of the Corporation shall be—
‘‘(1) to expand the provision of and improve ac-
cess to technical assistance regarding entrepreneur-
ship for the Nation’s veterans; and
‘‘(2) to work with and organize public and pri-
vate resources, including but not limited to those of
the Small Business Administration, the Department
of Veterans Affairs, the Department of Labor, the
Department of Commerce, the Department of De-
fense, the Service Corps of Retired Executives (de-
scribed in section 8(b)(1)(B) of this Act), the Small
Business Development Centers (described in section
21 of this Act), and the business development staffs
of each department and agency of the United States,
to assist veterans, including service-disabled vet-
erans, with the formation and expansion of small
business concerns.
‘‘(c) BOARD OF DIRECTORS.—
‘‘(1) IN
GENERAL.—The management of the
Corporation shall be vested in a Board of Directors
composed of 9 voting members and 3 nonvoting ex
officio members.
‘‘(2) APPOINTMENT
OF
VOTING
MEMBERS.—
The President shall appoint United States citizens
to be voting members of the Board of Directors as
follows:
‘‘(A) 1 from a list of individuals nominated
by the chairman of the Committee on Small
Business of the House of Representatives.
‘‘(B) 1 from a list of individuals nominated
by the chairman of the Committee on Small
Business of the Senate.
‘‘(C) 1 from a list of individuals nominated
by the ranking minority member of the Com-
mittee on Small Business of the House of Rep-
resentatives.
‘‘(D) 1 from a list of individuals nominated
by the ranking minority members of the Com-
mittee on Small Business of the Senate.
‘‘(E) 1 from a list of individuals nominated
by the chairman of the Committee on Veterans’
Affairs of the House of Representatives.
‘‘(F) 1 from a list of individuals nominated
by the chairman of the Committee on Veterans’
Affairs of the Senate.
‘‘(G) 1 from a list of individuals nominated
by the ranking minority member of the Com-
mittee on Veterans’ Affairs of the House of
Representatives.
‘‘(H) 1 from a list of individuals nomi-
nated the ranking minority member of the
Committee on Veterans’ Affairs of the Senate.
‘‘(I) 1 of the President’s own choosing.
‘‘(3) EX
OFFICIO
MEMBERS.—The Adminis-
trator of the Small Business Administration, the
Secretary of Defense, and the Secretary of Veterans
Affairs shall serve as the nonvoting ex officio mem-
bers of the Board of Directors.
‘‘(4) CHAIRPERSON.—The members of the
Board of Directors appointed under paragraph (2)
shall elect one such member to serve as chairperson
of the Board of Directors for a term of 2 years.
‘‘(5) TERMS OF APPOINTED MEMBERS.—
‘‘(A) IN GENERAL.—Each member of the
Board of Directors appointed under paragraph
(2) shall serve a term of 6 years, except as pro-
vided in subparagraph (B).
‘‘(B) TERMS OF INITIAL APPOINTEES.—As
designated by the President at the time of ap-
pointment, of the members first appointed—
‘‘(i) 3 shall be for a term of 2 years;
and
‘‘(ii) 3 shall be for a term of 4 years.
‘‘(C) UNEXPIRED TERMS.—Any member of
the Board of Directors appointed to fill a va-
cancy occurring before the expiration of the
term for which the member’s predecessor was
appointed shall be appointed only for the re-
mainder of the term. A member may serve after
the expiration of that member’s term until a
successor has taken office.
‘‘(6) VACANCIES.—Any vacancy on the Board
of Directors shall be filled in the manner in which
the original appointment was made. In the case of
a vacancy in the office of the Administrator of the
Small Business Administration or the Secretary of
Veterans Affairs, and pending the appointment of a
successor, an acting appointee for such vacancy may
serve as an ex officio member.
‘‘(7) INELIGIBILITY FOR OTHER OFFICES.—No
voting member of the Board of Directors may be an
officer or employee of the United States while serv-
ing as a member of the Board of Directors or during
the two-year period preceding such service.
‘‘(8) 
IMPARTIALITY
AND
NONDISCRIMINA-
TION.—The Board of Directors shall administer the
affairs of the Corporation fairly and impartially and
without discrimination.
‘‘(9) 
OBLIGATIONS
AND
EXPENSES.—The
Board of Directors shall prescribe the manner in
which the obligations of the Corporation may be in-
curred and in which its expenses shall be allowed
and paid.
‘‘(10) QUORUM.—5 voting members of the
Board of Directors shall constitute a quorum, but a
lesser number may hold hearings.
‘‘(d) CORPORATE POWERS.—
‘‘(1) IN GENERAL.—On October 1, 1999 the
Corporation shall become a body corporate and as
such shall have the authority to do the following:
‘‘(A) To adopt and use a corporate seal.
‘‘(B) To have succession until dissolved by
an Act of Congress.
‘‘(C) To make contracts or grants.
‘‘(D) To sue and be sued, and to file and
defend against lawsuits in State or Federal
court.
‘‘(E) To appoint, through the actions of its
Board of Directors, officers and employees of
the Corporation, to define their duties and re-
sponsibilities, fix their compensations, and to
dismiss at will such officers or employees.
‘‘(F) To prescribe, through the actions of
its Board of Directors, bylaws not inconsistent
with Federal law and the law of the State of in-
corporation, regulating the manner in which its
general business may be conducted and the
manner in which the privileges granted to it by
law may be exercised.
‘‘(G) To exercise, through the actions of its
Board of Directors or duly authorized officers,
all powers specifically granted by the provisions
of this section, and such incidental powers as
shall be necessary.
‘‘(H) To solicit, receive, and disburse funds
from private, Federal, State and local organiza-
tions.
‘‘(I) To accept and employ or dispose of in
furtherance of the purposes of this section any
money or property, real, personal, or mixed,
tangible or intangible, received by gift, devise,
bequest, or otherwise.
‘‘(J) To accept voluntary and uncompen-
sated services.
‘‘(e) CORPORATE FUNDS.—
‘‘(1) DEPOSIT OF FUNDS.—The Board of Di-
rectors shall deposit all funds of the Corporation in
federally chartered and insured depository institu-
tions until such funds are disbursed under para-
graph (2).
‘‘(2) DISBURSEMENT OF FUNDS.—Funds of the
Corporation may be disbursed only for purposes that
are—
‘‘(A) approved by the Board of Directors
by a recorded vote with a quorum present; and
‘‘(B) in accordance with the purposes of
the Corporation as specified in subsection (b).
‘‘(f) NETWORK OF INFORMATION AND ASSISTANCE
CENTERS.—In carrying out the purpose described in sub-
SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS
AFFAIRS.
(a) IN GENERAL.—There is established an advisory
committee to be known as the ‘‘Advisory Committee on
Veterans Business Affairs’’ (in this section referred to as
the ‘‘Committee’’), which shall serve as an independent
source of advice and policy recommendations to—
(1) the Administrator of the Small Business
Administration (in this section referred to as the
‘‘Administrator’’);
(2) the Associate Administrator for Veterans
Business Development of the Small Business Admin-
istration;
(3) Congress;
(4) the President; and
(5) other United States policymakers.
(b) MEMBERSHIP.—
(1) IN
GENERAL.—The Committee shall be
composed of 15 members, of whom—
(A) 8 shall be veterans who are owners of
small business concerns (within the meaning of
the term under section 3 of the Small Business
Act (15 U.S.C. 632)); and
(B) 7 shall be representatives of veterans
organizations.
(2) APPOINTMENT.—
(A) IN
GENERAL.—The members of the
Committee shall be appointed by the Adminis-
trator in accordance with this section.
(B) INITIAL
APPOINTMENTS.—Not later
than 60 days after the date of enactment of
this Act, the Administrator shall appoint the
initial members of the Committee.
(3) POLITICAL AFFILIATION.—Not more than 8
members of the Committee shall be of the same po-
litical party as the President.
(4) 
PROHIBITION
ON
FEDERAL
EMPLOY-
MENT.—
(A) IN GENERAL.—Except as provided in
subsection (B), no member of the Committee
may serve as an officer or employee of the
United States.
(B) EXCEPTION.—A member of the Com-
mittee who accepts a position as an officer or
employee of the United States after the date of
the member’s appointment to the Committee
may continue to serve on the Committee for not
more than 30 days after such acceptance.
(5) TERM OF SERVICE.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), the term of service of each member
of the Committee shall be 3 years.
(B) TERMS OF INITIAL APPOINTEES.—As
designated by the Administrator at the time of
appointment, of the members first appointed—
(i) 6 shall be appointed for a term of
4 years; and
(ii) 5 shall be appointed for a term of
5 years.
(6) VACANCIES.—The Administrator shall fill
any vacancies on the membership of the Committee
not later than 30 days after the date on which such
vacancy occurs.
(7) CHAIRPERSON.—
(A) IN
GENERAL.—The members of the
Committee shall elect one of the members to be
Chairperson of the Committee.
(B) VACANCIES
IN
OFFICE
OF
CHAIR-
PERSON.—Any vacancy in the office of the
Chairperson of the Committee shall be filled by
the Committee at the first meeting of the Com-
mittee following the date on which the vacancy
occurs.
(c) DUTIES.—The duties of the Committee shall be
the following:
(1) Review, coordinate, and monitor plans and
programs developed in the public and private sec-
tors, that affect the ability of small business con-
cerns owned and controlled by veterans to obtain
capital and credit and to access markets.
(2) Promote the collection of business informa-
tion and survey data as they relate to veterans and
small business concerns owned and controlled by vet-
erans.
(3) Monitor and promote plans, programs, and
operations of the departments and agencies of the
United States that may contribute to the formation
and growth of small business concerns owned and
controlled by veterans.
(4) Develop and promote initiatives, policies,
programs, and plans designed to foster small busi-
ness concerns owned and controlled by veterans.
(5) In cooperation with the National Veterans
Business Development Corporation, develop a com-
prehensive plan, to be updated annually, for joint
public-private sector efforts to facilitate growth and
development of small business concerns owned and
controlled by veterans.
(d) POWERS.—
(1) HEARINGS.—Subject to subsection (e), the
Committee may hold such hearings, sit and act at
such times and places, take such testimony, and re-
ceive such evidence as the Committee considers ad-
visable to carry out its duties.
(2) INFORMATION FROM FEDERAL AGENCIES.—
Upon request of the Chairperson of the Committee,
the head of any department or agency of the United
States shall furnish such information to the Com-
mittee as the Committee considers to be necessary to
carry out its duties.
(3) USE OF MAILS.—The Committee may use
the United States mails in the same manner and
under the same conditions as other departments and
agencies of the United States.
(4) GIFTS.—The Committee may accept, use,
and dispose of gifts or donations of services or prop-
erty.
(e) MEETINGS.—
(1) IN GENERAL.—The Committee shall meet,
not less than three times per year, at the call of the
Chairperson or at the request of the Administrator.
(2) LOCATION.—Each meeting of the full Com-
mittee shall be held at the headquarters of the Small
Business Administration located in Washington, Dis-
trict of Columbia. The Administrator shall provide
suitable meeting facilities and such administrative
support as may be necessary for each full meeting
of the Committee.
(3) TASK GROUPS.—The Committee may, from
time to time, establish temporary task groups as
may be necessary in order to carry out its duties.
(f) COMPENSATION AND EXPENSES.—
(1) NO COMPENSATION.—Members of the Com-
mittee shall serve without compensation for their
service to the Committee.
(2) EXPENSES.—The members of the Com-
mittee shall be reimbursed for travel and subsistence
expenses in accordance with section 5703 of title 5,
United States Code.
(g) REPORT.—Not later than 30 days after the end
of each fiscal year beginning after the date of enactment
of this section, the Committee shall transmit to Congress
and the President a report describing the activities of the
Committee and any recommendations developed by the
Committee for the promotion of small business concerns
owned and controlled by veterans.
TITLE III—TECHNICAL
ASSISTANCE
SEC. 301. SCORE PROGRAM.
(a) IN GENERAL.—The Administrator of the Small
Business Administration shall enter into a memorandum
of understanding with the Service Core of Retired Execu-
tives (described in section 8(b)(1)(B) of the Small Busi-
ness Act (15 U.S.C. 637(b)(1)(B)) and in this section re-
ferred to as ‘‘SCORE’’) to provide for the following:
(1) The appointment by SCORE in its national
office of an individual to act as National Veterans
Business Coordinator, whose duties shall relate ex-
clusively to veterans business matters, and who shall
be responsible for the establishment and administra-
tion of a program to coordinate counseling and
training regarding entrepreneurship to veterans
through the chapters of SCORE throughout the
United States.
(2) The assistance of SCORE in the estab-
lishing and maintaining a toll-free telephone number
and an Internet website to provide access for vet-
erans to information about the counseling and train-
ing regarding entrepreneurship available to veterans
through SCORE.
(6) Provision of Internet or other distance
learning academic instruction for veterans in busi-
ness subjects, including accounting, marketing, and
business fundamentals.
(7) Compilation of a list of small business con-
cerns owned and controlled by service-disabled vet-
erans that provide products or services that could be
procured by the United States and delivery of such
list to each department and agency of the United
States. Such list shall be delivered in hard copy and
electronic form and shall include the name and ad-
dress of each such small business concern and the
products or services that it provides.
TITLE IV—FINANCIAL
ASSISTANCE
SEC. 401. GENERAL BUSINESS LOAN PROGRAM.
(a) DEFINITION OF HANDICAPPED INDIVIDUAL.—
Section 3(f) of the Small Business Act (15 U.S.C. 632(f))
is amended to read as follows:
‘‘(f) For purposes of section 7 of this Act, the term
‘handicapped individual’ means an individual—
‘‘(1) who has a physical, mental, or emotional
impairment, defect, ailment, disease, or disability of
a permanent nature which in any way limits the se-
lection of any type of employment for which the per-
son would otherwise be qualified or qualifiable; or
‘‘(2) who is a service-disabled veteran.’’.
(b) AUTHORIZATION TO MAKE LOANS.—Section
7(a)(10) of the Small Business Act (15 U.S.C.
636(a)(10)) is amended by inserting, ‘‘, including service-
disabled veterans,’’ after ‘‘handicapped individual’’.
SEC. 402. LOANS TO INDIVIDUALS CALLED TO ACTIVE DUTY
IN THE ARMED FORCES.
Section 7(b) of the Small Business Act (15 U.S.C.
636(b)) is amended by inserting after the undesignated
paragraph that begins with ‘‘Provided, That no loan’’ the
following:
‘‘(3) The Administration is empowered to make
loans to qualified individuals to assist with potential
losses and disruptions caused by mobilization or the
return to active duty in the Armed Forces. For the
purposes of this paragraph, qualified individuals are
individuals—
‘‘(A) who are self-employed or who are
owners of small business concerns; and
‘‘(B) who are called to active duty under
section 688, 12301, 12302, or 12303 of title
10, United States Code.
Loans made under this paragraph shall have the
same terms and rates of interest as loans made
under paragraph (2).’’.
SEC. 403. MICROLOAN PROGRAM.
Section 7(m)(1)(A)(i) of the Small Business Act (15
U.S.C. 636(m)(1)(A)(i)) is amended by inserting ‘‘veteran
(within the meaning of such term under section 3(q)),’’
after ‘‘low-income,’’.
SEC. 404. DELTA LOAN PROGRAM.
Section 7(a)(21)(A) Small Business Act (15 U.S.C.
636(a)(21)(A)) is amended in subclause (ii) by inserting
‘‘or a veteran’’ after ‘‘qualified individual’’.
SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.
Section 501(d)(3) of the Small Business Investment
Act (15 U.S.C. 696(d)(3)) is amended—
(1) by redesignating subparagraphs (E), (F),
and (G) as subparagraphs (F), (G), and (H), respec-
tively; and
(2) by inserting after subparagraph (D) the fol-
lowing:
‘‘(E) expansion of small business concerns
owned and controlled by veterans, as defined in
section 3(q) of the Small Business Act (15
U.S.C. 632(q)), especially service-disabled vet-
erans, as defined in such section 3(q),’’.
TITLE V—PROCUREMENT
ASSISTANCE
SEC. 501. SUBCONTRACTING.
(a) STATEMENT OF POLICY.—Section 8(d)(1) of the
Small Business Act (15 U.S.C. 637(d)(1)) is amended by
inserting ‘‘small business concerns owned and controlled
by service-disabled veterans,’’ after ‘‘small business con-
cerns,’’ the first place it appears in the first and second
sentences.
(b) CONTRACT CLAUSE.—The contract clause speci-
fied in section 8(d)(3) of the Small Business Act (15
U.S.C. 637(d)(3)) is amended as follows:
(1) Subparagraph (A) of such clause is amend-
ed by inserting ‘‘small business concerns owned and
controlled by veterans,’’ after ‘‘small business con-
cerns,’’ the first place it appears in the first and sec-
ond sentences.
(2) Subparagraphs (E) and (F) of such clause
are redesignated as subparagraphs (F) and (G), re-
spectively, and the following new subparagraph is in-
serted after subparagraph (D) of such clause:
‘‘(E) The term ‘small business concern
owned and controlled by veterans’ shall mean a
small business concern—
‘‘(i) which is at least 51 per centum
owned by one or more eligible veterans; or,
in the case of any publicly owned business,
at least 51 per centum of the stock of
which is owned by one or more veterans;
and
‘‘(ii) whose management and daily
business operations are controlled by such
veterans. The contractor shall treat as vet-
erans all individuals who are veterans with-
in the meaning of the term under section
3(q) of the Small Business Act.’’.
(3) Subparagraph (F) of such clause, as redes-
ignated by paragraph (2) of this subsection, is
amended by inserting ‘‘small business concern owned
and controlled by veterans,’’ after ‘‘small business
concern,’’ the first place it appears.
(c) CONFORMING AMENDMENTS.—Section 8(d) of
the Small Business Act (15 U.S.C. 637(d)) is further
amended by inserting ‘‘small business concerns owned and
controlled by veterans,’’ after ‘‘small business concerns,’’
the first place it appears in paragraphs (4)(D), (4)(E),
(6)(A), (6)(C), (6)(F), and (10)(B).