I
107TH CONGRESS
2D SESSION
H. R. 4586
To amend the Small Business Act and the Small Business Investment Act
of 1958 to authorize grants and other assistance to promote the redevel-
opment of certain remediated sites.
IN THE HOUSE OF REPRESENTATIVES
APRIL 24, 2002
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the
Committee on Small Business
A BILL
To amend the Small Business Act and the Small Business
Investment Act of 1958 to authorize grants and other
assistance to promote the redevelopment of certain reme-
diated sites.
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 ‘‘Brownfields Use
Invigoration Land Development Act’’.
SEC. 2. GRANT PROGRAM TO PROMOTE THE REDEVELOP-
MENT OF REMEDIATED SITES.
The Small Business Act (15 U.S.C. 631 et seq.) is
amended—
(1) by redesignating section 36 as section 37;
and
(2) by inserting after section 35 the following
new section:
‘‘SEC. 36. GRANT PROGRAM TO PROMOTE THE REDEVELOP-
MENT OF REMEDIATED SITES.
‘‘(a) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) REMEDIATED
SITE.—The term ‘remedi-
ated site’ means any real property with respect to
which requirements under Federal or State law for
remediation of hazardous substances, pollutants, and
contaminants have been completed.
‘‘(2) LOW-INCOME
GEOGRAPHIC
AREA.—The
term ‘‘low-income geographic area’’ means—
‘‘(A) any population census tract (or in the
case of an area that is not tracted for popu-
lation census tracts, the equivalent county divi-
sion, as defined by the Bureau of the Census of
the Department of Commerce for purposes of
defining poverty areas), if—
‘‘(i) the poverty rate for that census
tract is not less than 20 percent;
‘‘(ii) in the case of a tract—
‘‘(I) that is located within a met-
ropolitan area, 50 percent or more of
the households in that census tract
have an income equal to less than 60
percent of the area median gross in-
come; or
‘‘(II) that is not located within a
metropolitan area, the median house-
hold income for such tract does not
exceed 80 percent of the statewide
median household income; or
‘‘(iii) as determined by the Adminis-
trator based on objective criteria, a sub-
stantial population of low-income individ-
uals reside, an inadequate access to invest-
ment capital exists, or other indications of
economic distress exist in that census
tract; or
‘‘(B) any area located within—
‘‘(i) a HUBZone (as defined in sec-
tion 3(p) of the Small Business Act and
the implementing regulations issued under
that section);
‘‘(ii) an urban empowerment zone or
urban enterprise community (as designated
by the Secretary of Housing and Urban
Development); or
‘‘(iii) a rural empowerment zone or
rural enterprise community (as designated
by the Secretary of Agriculture).
‘‘(b) ESTABLISHMENT.—In accordance with this sec-
tion, the Administrator may make grants to eligible enti-
ties to enable such entities to participate in the redevelop-
ment of remediated sites.
‘‘(c) ELIGIBILITY.—Each of the following entities is
eligible to receive assistance under this section:
‘‘(1) A small business concern.
‘‘(2) A locally based organization that rep-
resents small business concerns.
‘‘(3) A local redevelopment agency that is char-
tered, established, or otherwise sanctioned by a
State or by a local government.
‘‘(d) USE
OF FUNDS.—Assistance made available
under this section may be used only—
‘‘(1) for the development of plans for the reuse
of a remediated site; or
‘‘(2) to perform marketing analyses with re-
spect to a remediated site.
‘‘(e) APPLICATION.—An eligible entity seeking assist-
ance made available under this section shall submit to the
Administrator an application in such form as the Adminis-
trator may require.
‘‘(f) SELECTION CRITERIA.—In selecting entities to
receive assistance under this section, the Administrator
shall consider each of the following:
‘‘(1) The ability of the entity to develop plans
for the reuse of the remediated site and to perform
marketing analyses with respect to the remediated
site.
‘‘(2) The extent to which the redevelopment of
the remediated site proposed to be redeveloped by
the entity would create jobs and other social and
economic benefits to the local community and busi-
ness opportunities for small business concerns.
‘‘(3) The extent to which the entity’s use of as-
sistance will maximize the leveraging of private sec-
tor funds.
‘‘(4) The extent to which the entity will use as-
sistance to redevelop a remediated site located in a
low-income geographic area.
‘‘(g) GRANT AMOUNT.—Each grant award made
under this section shall be of sufficient size to carry out
the goals of this section, but shall not exceed $200,000.
‘‘(h) LOSS OF ELIGIBILITY AND REPAYMENT.—If the
Administrator determines that an entity receiving assist-
ance made available under this section violates any condi-
tion placed on the receipt of such assistance, the
Administrator—
‘‘(1) may make no additional assistance avail-
able to such entity under this section; and
‘‘(2) may require the entity to repay, in whole
or in part, the assistance made available to the enti-
ty under this section.
‘‘(i) REPORT TO ADMINISTRATOR.—Not later than 2
years after receiving assistance made available under this
section, each eligible entity receiving such assistance shall
transmit to the Administrator a report describing how the
assistance was used.
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be
appropriated the sum of $4,000,000 for each of fis-
cal years 2003 through 2005.
‘‘(2) 
AVAILABILITY.—Funds 
appropriated
under paragraph (1) shall remain available until ex-
pended.’’.
SEC. 3. INCREASED PARTICIPATION LEVEL FOR LOANS TO
SMALL BUSINESSES LOCATED ON REMEDI-
ATED SITES.
Clause (i) of section 7(a)(2)(A) of the Small Business
Act (15 U.S.C. 636(a)(2)(A)) shall be applied by sub-
stituting ‘‘90 percent’’ for ‘‘75 percent’’ and clause (ii)
of such section shall be applied by substituting ‘‘90 per-
cent’’ for ‘‘85 percent’’ in the case of any loan made—
(1) to a small business concern located or locat-
ing on a remediated site (as such term is defined in
section 36(a)(1) of the Small Business Act (as
amended by this Act)) with respect to which a grant
has been made under such section; and
(2) during the 5-year period beginning on the
date that such grant is made.
SEC. 4. FUNDING FROM DEVELOPMENT COMPANIES TO RE-
DEVELOP REMEDIATED SITES.
Section 501(d)(3) of the Small Business Investment
Act of 1958 (15 U.S.C. 695(d)(3)) is amended—
(1) in subparagraph (G), by striking ‘‘or’’;
(2) in subparagraph (H), by striking the period
and inserting ‘‘, or’’; and
(3) by inserting after subparagraph (H) the fol-
lowing new subparagraph:
‘‘(I) redevelopment of remediated sites (as
defined in section 36(a)(1) of the Small Busi-
ness Act).’’.
SEC. 5. EXEMPTION FROM OUTSTANDING LEVERAGE LIM-
ITS FOR SBIC INVESTMENTS IN REMEDIATED
SITES.
Paragraphs (2)(C) and (4)(D) of section 303(b) of
the Small Business Investment Act of 1958 (15 U.S.C.
683(b)) are amended by—
(1) inserting ‘‘or on a remediated site (as de-
fined in section 36(a)(1) of the Small Business
Act)’’ after ‘‘located in a low-income geographic area
(as defined in section 351)’’; and
(2) by striking ‘‘LOW-INCOME’’ in the headings
of such paragraphs and inserting ‘‘CERTAIN’’.
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