I 
116TH CONGRESS 
1ST SESSION 
H. R. 225 
To provide for small business concerns located in Puerto Rico, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 3, 2019 
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To provide for small business concerns located in Puerto 
Rico, 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 ‘‘Puerto Rico Small 
Business Assistance Act of 2019’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act are as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Definitions. 
TITLE I—LENDING 
Sec. 101. Microloan program for Puerto Rico small business concerns. 
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Sec. 102. Fee reductions. 
Sec. 103. Economic stimulus lending program for small businesses. 
Sec. 104. Contribution percentages for 504 projects. 
Sec. 105. Independent subsidy calculation. 
TITLE II—PROCUREMENT 
Sec. 201. Contracting preference for Puerto Rico businesses. 
TITLE III—ENTREPRENEURIAL DEVELOPMENT 
Sec. 301. Veteran Business Outreach Center in Puerto Rico. 
Sec. 302. FAST grant program for Puerto Rico. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
(2) OVERSIGHT BOARD TERMINATION DATE.— 
The term ‘‘Oversight Board termination date’’ 
means the date on which the Oversight Board estab-
lished under section 101 of the Puerto Rico Over-
sight, Management, and Economic Stability Act (48 
U.S.C. 2121) terminates. 
(3) PUERTO RICO.—The term ‘‘Puerto Rico’’ 
means the Commonwealth of Puerto Rico. 
(4) PUERTO RICO BUSINESS.—The term ‘‘Puer-
to Rico business’’ has the meaning given in section 
3(ee) of the Small Business Act (15 U.S.C. 
632(ee)). 
(5) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
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such term under section 3 of the Small Business Act 
(15 U.S.C. 632). 
TITLE I—LENDING 
SEC. 101. MICROLOAN PROGRAM FOR PUERTO RICO SMALL 
BUSINESS CONCERNS. 
(a) INCREASE IN ACCESS TO CAPITAL FOR CERTAIN 
INTERMEDIARIES.—Section 7(m)(3)(C) of the Small Busi-
ness Act (15 U.S.C. 636(m)(3)(C)) is amended— 
(1) by inserting ‘‘and except as provided in 
clause (ii)’’ after ‘‘subsection (a)(3)’’; 
(2) by striking ‘‘Notwithstanding’’ and insert-
ing the following: 
‘‘(i) IN GENERAL.—Notwithstanding’’; 
and 
(3) by adding at the end the following: 
‘‘(ii) EXCEPTION FOR CERTAIN PUER-
TO RICO BUSINESSES.— 
‘‘(I) IN GENERAL.—No loan shall 
be made under this subsection if the 
total amount outstanding and com-
mitted to 1 covered intermediary (ex-
cluding outstanding grants) from the 
business loan and investment fund es-
tablished by this Act would, as a re-
sult of such loan, exceed $6,000,000 
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in the remaining years of the covered 
intermediary’s participation in the 
program. 
‘‘(II) 
DEFINITION.—In 
this 
clause, 
the 
term 
‘covered 
inter-
mediary’ 
means 
an 
intermediary 
that— 
‘‘(aa) is participating in the 
program; and 
‘‘(bb) submits to the Admin-
istrator a certification that not 
less than 20 percent of the 
microloans made by the inter-
mediary under this subsection, 
during such period as the Admin-
istrator may specify, will be made 
to Puerto Rico businesses.’’. 
(b) WAIVER OF 25/75 RULE FOR MICROLOANS TO 
PUERTO RICO SMALL BUSINESS CONCERNS.— 
(1) WAIVER AUTHORIZED.—Section 7(m)(4)(E) 
of the Small Business Act (15 U.S.C. 636(m)(4)(E)) 
is amended— 
(A) in clause (i), by striking ‘‘Each’’ and 
inserting ‘‘Except as provided in clause (iii), 
each’’; and 
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(B) by adding at the end the following: 
‘‘(iii) 
EXCEPTION
FOR
CERTAIN 
INTERMEDIARIES.—The 
Administrator 
shall waive the requirements of clause (i) 
for an intermediary for which not less than 
25 percent of the loans made by the inter-
mediary are made to Puerto Rico busi-
nesses.’’. 
(2) STUDY.—Not later than 18 months after 
the date of enactment of this Act, the Administrator 
shall submit to Congress a report on the impact of 
waiving the requirements of section 7(m)(4)(E)(i) of 
the Small Business Act for all intermediaries receiv-
ing grant funds under section 7(m)(1)(B)(ii) of the 
Small Business Act, which shall include an analysis 
of the effectiveness and feasibility of expanding the 
waiver to small business concerns nationwide. 
(c) PROSPECTIVE REPEAL.—Subsections (a) and (b) 
shall be repealed, and the provisions of law amended by 
such subsections shall be restored as if such subsections 
had not been enacted, on the Oversight Board termination 
date. 
(d) GAO STUDY.—Not later than 180 days after the 
date of enactment of this Act, the Comptroller General 
of the United States shall complete a study and submit 
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to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business 
of the House of Representatives a report on the following: 
(1) The operations (including services provided, 
structure, size, and area of operation) of a rep-
resentative sample of— 
(A) intermediaries that are eligible for par-
ticipation in the microloan program under sec-
tion 7(m) of the Small Business Act (15 U.S.C. 
636(m)) and that participate in the microloan 
program; and 
(B) intermediaries (including those oper-
ated for profit, operated as nonprofit organiza-
tions, and affiliated with a United States insti-
tution of higher learning (as defined in section 
3452 of title 38, United States Code) that are 
so eligible and that do not participate in the 
microloan program. 
(2) The reasons why intermediaries described in 
paragraph (1)(B) choose not to participate in the 
microloan program. 
(3) Recommendations on how to encourage in-
creased participation in the microloan program by 
intermediaries described in paragraph (1)(B). 
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(4) Recommendations for increasing the num-
ber of intermediaries located in the territories of the 
United States or in economically distressed areas (as 
defined in section 7(m)(11)(D) of the Small Busi-
ness Act (15 U.S.C. 636(m)(11)(D)) that are eligi-
ble for participation in the microloan program under 
section 7(m) of such Act. 
(5) Recommendations on how to decrease the 
costs associated with participation in the microloan 
program for eligible intermediaries. 
SEC. 102. FEE REDUCTIONS. 
(a) ADMINISTRATIVE PROVISIONS FOR THE SMALL 
BUSINESS ADMINISTRATION.— 
(1) DEFINITION.—In this subsection, the term 
‘‘covered business loan’’ means a loan— 
(A) of not more than $2,000,000; 
(B) that is guaranteed by the Adminis-
trator under section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)); 
(C) for which the application is approved 
on or after the date of enactment of this Act; 
and 
(D) that is made to a Puerto Rico busi-
ness. 
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(2) FEES.—During the period beginning on the 
date of enactment of this Act and ending on the 
Oversight Board termination date, and to the extent 
that the cost of such elimination or reduction of fees 
is offset by appropriations, with respect to each cov-
ered business loan, the Administrator shall— 
(A) in lieu of the fee otherwise applicable 
under section 7(a)(23)(A) of the Small Busi-
ness Act, collect no fee or reduce fees to the 
maximum extent possible; and 
(B) in lieu of the fee otherwise applicable 
under section 7(a)(18)(A) of the Small Busi-
ness Act, collect no fee or reduce fees to the 
maximum extent possible. 
(b) TEMPORARY FEE ELIMINATION FOR THE 504 
LOAN PROGRAM.— 
(1) IN GENERAL.—During the period beginning 
on the date of enactment of this Act and ending on 
the Oversight Board termination date, and to the ex-
tent the cost of such elimination in fees is offset by 
appropriations, with respect to each loan of not more 
than $2,000,000 guaranteed by the Administrator 
under title V of the Small Business Investment Act 
of 1958 (15 U.S.C. 695 et seq.) with respect to a 
development company that has its principal office lo-
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cated in Puerto Rico and for which an application 
is approved or pending approval on or after the date 
of enactment of this Act— 
(A) the Administrator shall, in lieu of the 
fee otherwise applicable under section 503(d)(2) 
of the Small Business Investment Act of 1958 
(15 U.S.C. 697(d)(2)), collect no fee; and 
(B) a development company shall, in lieu 
of 
the 
processing 
fee 
under 
section 
120.971(a)(1) of title 13, Code of Federal Reg-
ulations (relating to fees paid by borrowers), or 
any successor thereto, collect no fee. 
(2) REIMBURSEMENT FOR WAIVED FEES.— 
(A) IN GENERAL.—To the extent that the 
cost of such payments is offset by appropria-
tions, the Administrator shall reimburse each 
development company that does not collect a 
processing fee under paragraph (1)(B). 
(B) AMOUNT.—The reimbursement to a 
development company under subparagraph (A) 
shall be in an amount equal to 1.5 percent of 
the net debenture proceeds for which the devel-
opment company does not collect a processing 
fee under paragraph (1)(B). 
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(c) APPLICATION OF FEE ELIMINATIONS.—To the 
extent that amounts are made available to the Adminis-
trator for the purpose of fee eliminations or reductions 
under subsection (a), the Administrator shall— 
(1) first use any amounts provided to eliminate 
or reduce fees paid by borrowers under clauses (i), 
(ii), and (iii) of section 7(a)(18)(A) of the Small 
Business Act (15 U.S.C. 636(a)(18)(A)), to the 
maximum extent possible; 
(2) to the extent amounts provided remain after 
use in accordance with paragraph (1), use any 
amounts provided to eliminate or reduce fees under 
section 7(a)(23)(A) of the Small Business Act (15 
U.S.C. 636(a)(23)(A)) paid by lenders with assets of 
not more than $1,000,000,000, as of the date of en-
actment of this Act; and 
(3) to the extent amounts provided remain after 
use in accordance with paragraphs (1) and (2), use 
any remaining amounts provided to reduce fees 
under section 7(a)(23)(A) of the Small Business Act 
paid by lenders other than those described under 
paragraph (2). 
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