366
under subsection (f). The Administrator may dele-
gate power to revoke or suspend authority under 
paragraph (1) only to the Deputy Administrator and 
only if the Administrator is unavailable to take such 
action. 
‘‘(A) The Administrator, after finding ex-
traordinary circumstances and in order to pro-
tect the financial or legal position of the United 
States, may issue a suspension order without 
conducting a hearing pursuant to subsection 
(f). If the Administrator issues a suspension 
under the preceding sentence, the Adminis-
trator shall within two business days follow the 
procedures set forth in subsection (f). 
‘‘(B) Any suspension under paragraph (1) 
shall remain in effect until the Administrator 
makes a decision pursuant to subparagraph (4) 
to permanently revoke the authority of the 
small business lending company or non-Feder-
ally regulated lender, suspend the authority for 
a time certain, or terminate the suspension. 
‘‘(3) The small business lending company or 
non-Federally regulated lender must notify bor-
rowers of a revocation and that a new entity has 
been appointed to service their loans. The Adminis-
367
trator or an employee of the Administration des-
ignated by the Administrator may provide such no-
tice to the borrower. 
‘‘(4) Any revocation or suspension under para-
graph (1) shall be made by the Administrator except 
that the Administrator shall delegate to an adminis-
trative law judge as that term is used in section 
3105 of title 5, United States Code the authority to 
conduct any hearing required under subsection (f). 
The Administrator shall base the decision to revoke 
on the record of the hearing. 
‘‘(e) CEASE AND DESIST ORDER.—
‘‘(1) Where a small business lending company, 
a non-Federally regulated lender, or other person 
violates this Act or is engaging or is about to engage 
in any acts or practices which constitute or will con-
stitute a violation of this Act, the Administrator may 
order, after the opportunity for hearing pursuant to 
subsection (f), the company, lender, or other person 
to cease and desist from such action or failure to 
act. The Administrator may delegate the authority 
under the preceding sentence only to the Deputy Ad-
ministrator and only if the Administrator is unavail-
able to take such action.
368
‘‘(2) The Administrator, after finding extraor-
dinary circumstances and in order to protect the fi-
nancial or legal position of the United States, may 
issue a cease and desist order without conducting a 
hearing pursuant to subsection (f). If the Adminis-
trator issues a cease and desist order under the pre-
ceding sentence, the Administrator shall within two 
business days follow the procedures set forth in sub-
section (f). 
‘‘(3) The Administrator may further order such 
small business lending company or non-Federally 
regulated lender or other person to take such action 
or to refrain from such action as the Administrator 
deems necessary to insure compliance with this Act. 
‘‘(4) A cease and desist order under this sub-
section may also provide for the suspension of au-
thority to lend in subsection (d). 
‘‘(f) PROCEDURE FOR REVOCATION OR SUSPENSION 
OF LOAN AUTHORITY
AND
FOR CEASE
AND DESIST 
ORDER.—
‘‘(1) Before revoking or suspending authority 
under subsection (d) or issuing a cease and desist 
order under subsection (e), the Administrator shall 
serve an order to show cause upon the small busi-
ness lending company, non-Federally regulated lend-
369
er, or other person why an order revoking or sus-
pending the authority or a cease and desist order 
should not be issued. The order to show cause shall 
contain a statement of the matters of fact and law 
asserted by the Administrator and the legal author-
ity and jurisdiction under which a hearing is to be 
held, and shall set forth that a hearing will be held 
before an administrative law judge at a time and 
place stated in the order. Such hearing shall be con-
ducted pursuant to the provisions of sections 554, 
556, and 557 of title 5, United States Code. If after 
hearing, or a waiver thereof, the Administrator de-
termines that an order revoking or suspending the 
authority or a cease and desist order should be 
issued, the Administrator shall promptly issue such 
order, which shall include a statement of the find-
ings of the Administrator and the grounds and rea-
sons therefor and specify the effective date of the 
order, and shall cause the order to be served on the 
small business lending company, non-Federally regu-
lated lender, or other person involved.
‘‘(2) Witnesses summoned before the Adminis-
trator shall be paid by the party at whose instance 
they were called the same fees and mileage that are 
paid witnesses in the courts of the United States.
370
‘‘(3) A cease and desist order, suspension or 
revocation issued by the Administrator, after the 
hearing under this subsection is final agency action 
for purposes of chapter 7 of title 5, United States 
Code. An adversely aggrieved party shall have 20 
days from the date of issuance of the cease and de-
sist order, suspension or revocation, to seek judicial 
review in an appropriate district court. 
‘‘(g) REMOVAL OR SUSPENSION OF MANAGEMENT 
OFFICIAL.—
‘‘(1) DEFINITION.—In this section, the term 
‘management official’ means, with respect to a small 
business lending company or a non-Federally regu-
lated lender, an officer, director, general partner, 
manager, employee, agent, or other participant in 
the management of the affairs of the company’s or 
lender’s activities under section 7(a) of this Act. 
‘‘(2) REMOVAL OF MANAGEMENT OFFICIAL.—
‘‘(A) NOTICE.—The Administrator may 
serve upon any management official a written 
notice of its intention to remove that manage-
ment official if, in the opinion of the Adminis-
trator—
‘‘(i) the management official—
371
‘‘(I) willfully and knowingly com-
mits a substantial violation of—
‘‘(aa) this Act; 
‘‘(bb) any regulation issued 
under this Act; or 
‘‘(cc) a final cease-and-desist 
order under this Act; or 
‘‘(dd) any agreement by the 
management official, the small 
business lending company or non-
Federally regulated lender under 
this Act; or 
‘‘(II) willfully and knowingly 
commits a substantial breach of a fi-
duciary duty of that person as a man-
agement official; and 
‘‘(III) the violation or breach of 
fiduciary duty is one involving per-
sonal dishonesty on the part of such 
management official. 
‘‘(B) CONTENTS
OF
NOTICE.—A notice 
under subparagraph (A) shall contain a state-
ment of the facts constituting grounds therefor 
and shall fix a time and place at which a hear-
ing, conducted pursuant to section 554, 556,
372
and 557 of title 5, United States Code, will be 
held thereon. 
‘‘(C) HEARING.—
‘‘(i) TIMING.—A hearing under sub-
paragraph (B) shall be held not earlier 
than 30 days and later than 60 days after 
the date of service of notice of the hearing, 
unless an earlier or a later date is set by 
the Administrator at the request of—
‘‘(I) the management official, and 
for good cause shown; or 
‘‘(II) the Attorney General. 
‘‘(ii) CONSENT.—Unless the manage-
ment official appears at a hearing under 
this paragraph in person or by a duly au-
thorized representative, the management 
official shall be deemed to have consented 
to the issuance of an order of removal 
under subparagraph (A). 
‘‘(D) ORDER OF REMOVAL.—
‘‘(i) IN
GENERAL.—In the event of 
consent under subparagraph (C)(ii), or if 
upon the record made at a hearing under 
this subsection, the Administrator finds 
that any of the grounds specified in the
373
notice of removal has been established, the 
Administrator may issue such orders of re-
moval from office as the Administrator 
deems appropriate. 
‘‘(ii) 
EFFECTIVENESS.—An 
order 
under clause (i) shall—
‘‘(I) take effect 30 days after the 
date of service upon the subject small 
business lending company or non-Fed-
erally regulated lender and the man-
agement official concerned (except in 
the case of an order issued upon con-
sent as described in subparagraph 
(C)(ii), which shall become effective at 
the time specified in such order); and 
‘‘(II) remain effective and en-
forceable, except to such extent as it 
is stayed, modified, terminated, or set 
aside by action of the Administrator 
or a reviewing court in accordance 
with this section. 
‘‘(3) AUTHORITY
TO
SUSPEND
OR
PROHIBIT 
PARTICIPATION.—
‘‘(A) IN GENERAL.—In order to protect a 
small business lending company, a non-Feder-
374
ally regulated lender or the interests of the Ad-
ministration or the United States, the Adminis-
trator may suspend from office or prohibit from 
further participation in any manner in the man-
agement or conduct of the affairs of a small 
business lending company or a non-Federally 
regulated lender a management official by writ-
ten notice to such effect served upon the man-
agement official. Such suspension or prohibition 
may prohibit the management official from 
making, servicing, reviewing, approving, or liq-
uidating any loan under section 7(a) of this 
Act. 
‘‘(B) EFFECTIVENESS.—A suspension or 
prohibition under subparagraph (A)—
‘‘(i) shall take effect upon service of 
notice under paragraph (2); and 
‘‘(ii) unless stayed by a court in pro-
ceedings authorized by subparagraph (C), 
shall remain in effect—
‘‘(I) pending the completion of 
the administrative proceedings pursu-
ant to a notice of intention to remove 
served under paragraph (2); and
375
‘‘(II) until such time as the Ad-
ministrator 
dismisses 
the 
charges 
specified in the notice, or, if an order 
of removal or prohibition is issued 
against the management official, until 
the effective date of any such order. 
‘‘(C) JUDICIAL
REVIEW
OF
SUSPENSION 
PRIOR TO HEARING.—Not later than 10 days 
after a management official is suspended or 
prohibited from participation under subpara-
graph (A), the management official may apply 
to an appropriate district court for a stay of the 
suspension or prohibition pending the comple-
tion of the administrative proceedings pursuant 
to a notice of intent to remove served upon the 
management official under paragraph (2). 
‘‘(4) AUTHORITY
TO
SUSPEND
ON
CRIMINAL 
CHARGES.—
‘‘(A) IN GENERAL.—If a management offi-
cial is charged in any information, indictment, 
or complaint authorized by a United States at-
torney, with a felony involving dishonesty or 
breach of trust, the Administrator may, by writ-
ten notice served upon the management official, 
suspend the management official from office or
376
prohibit the management official from further 
participation in any manner in the management 
or conduct of the affairs of the small business 
lending company or non-Federally regulated 
lender. 
‘‘(B) EFFECTIVENESS.—A suspension or 
prohibition under subparagraph (A) shall re-
main in effect until the information, indictment, 
or complaint is finally disposed of, or until ter-
minated by the Administrator or upon an order 
of a district court. 
‘‘(C) AUTHORITY UPON CONVICTION.—If a 
judgment of conviction with respect to an of-
fense described in subparagraph (A) is entered 
against a management official, then at such 
time as the judgment is not subject to further 
judicial review (and for purposes of this sub-
paragraph shall not include any petition for a 
writ of habeas corpus), the Administrator may 
issue and serve upon the management official 
an order removing the management official, ef-
fective upon service of a copy of the order upon 
the small business lending company or non-Fed-
erally regulated lender.
377
‘‘(D) AUTHORITY
UPON
DISMISSAL
OR 
OTHER DISPOSITION.—A finding of not guilty 
or other disposition of charges described in sub-
paragraph (A) shall not preclude the Adminis-
trator from instituting proceedings under sub-
section (e) or (f). 
‘‘(5) NOTIFICATION TO SMALL BUSINESS LEND-
ING COMPANY OR A NON-FEDERALLY REGULATED 
LENDER.—Copies of each notice required to be 
served on a management official under this section 
shall also be served upon the small business lending 
company or non-Federally regulated lender involved. 
‘‘(6) FINAL AGENCY ACTION AND JUDICIAL RE-
VIEW.—
‘‘(A) ISSUANCE
OF
ORDERS.—After a 
hearing under this subsection, and not later 
than 30 days after the Administrator notifies 
the parties that the case has been submitted for 
final decision, the Administrator shall render a 
decision in the matter (which shall include find-
ings of fact upon which its decision is predi-
cated), and shall issue and cause to be served 
upon each party to the proceeding an order or 
orders consistent with this section. The decision 
of the Administrator shall constitute final agen-
378
cy action for purposes of chapter 7 of title 5, 
United States Code. 
‘‘(B) JUDICIAL REVIEW.—An adversely ag-
grieved party shall have 20 days from the date 
of issuance of the order to seek judicial review 
in an appropriate district court. 
‘‘(h) APPOINTMENT OF RECEIVER.—
‘‘(1) In any proceeding under subsection (f)(4) 
or subsection (g)(6)(C), the court may take exclusive 
jurisdiction of a small business lending company or 
a non-Federally regulated lender and appoint a re-
ceiver for assets of the company or lender. 
‘‘(2) Upon request of the Administrator, the 
court may appoint the Administrator as a receiver 
under paragraph (1). 
‘‘(i) POSSESSION OF ASSETS.—
‘‘(1) If a small business lending company or a 
non-Federally regulated lender is not in compliance 
with capital requirements or is insolvent, the Admin-
istrator may take possession of the portfolio of loans 
guaranteed by the Administrator and sell such loans 
to a third party by means of a receiver appointed 
under subsection (h). 
‘‘(2) If a small business lending company or a 
non-Federally regulated lender is not in compliance
379
with capital requirements or is insolvent or otherwise 
operating in an unsafe and unsound condition, the 
Administrator may take possession of servicing ac-
tivities of loans that are guaranteed by the Adminis-
trator and sell such servicing rights to a third party 
by means of a receiver appointed under subsection 
(h). 
‘‘(j) PENALTIES AND FORFEITURES.—
‘‘(1) Except as provided in paragraph (2), a 
small business lending company or a non-Federally 
regulated lender which violates any regulation or 
written directive issued by the Administrator regard-
ing the filing of any regular or special report shall 
pay to the United States a civil penalty of not more 
than $100 for each day of the continuance of the 
failure to file such report, unless it is shown that 
such failure is due to reasonable cause and not due 
to willful neglect. The civil penalties under this sub-
section may be enforced in a civil action brought by 
the Administrator. The penalties under this sub-
section shall not apply to any affiliate of a small 
business lending company that procures at least 10 
percent of its annual purchasing requirements from 
small manufacturers.
380
‘‘(2) The Administration may by rules and reg-
ulations that shall be codified in the Code of Federal 
Regulations, after an opportunity for notice and 
comment, or upon application of an interested party, 
at any time previous to such failure, by order, after 
notice and opportunity for hearing which shall be 
conducted pursuant to sections 554, 556, and 557 of 
title 5, United States Code, exempt in whole or in 
part, any small business lending company or non-
Federally regulated lender from paragraph (1), upon 
such terms and conditions and for such period of 
time as it deems necessary and appropriate, if the 
Administration finds that such action is not incon-
sistent with the public interest or the protection of 
the Administration. The Administration may for the 
purposes of this section make any alternative re-
quirements appropriate to the situation.’’. 
SEC. 215. REAUTHORIZATION OF PAUL D. COVERDELL 
DRUG-FREE WORKPLACE PROGRAM. 
Paragraph (1) of section 27(g) of the Small Business 
Act (15 U.S.C. 654(g)) is amended by striking 
‘‘$5,000,000 for each of fiscal years 2001 through 2003’’ 
and inserting ‘‘$2,000,000 for each of fiscal years 2003 
through 2005’’.
381
SEC. 216. WOMEN’S BUSINESS CENTER PROGRAM. 
Section 29 of the Small Business Act (15 U.S.C. 656) 
is amended to read as follows:
‘‘SEC. 29. WOMEN’S BUSINESS CENTER PROGRAM. 
‘‘(a) DEFINITIONS.—For purposes of this section: 
‘‘(1) The term ‘private nonprofit organization’ 
means an entity that is described in section 501(c) 
of the Internal Revenue Code of 1986 and exempt 
from taxation under section 501(a) of such Code. 
‘‘(2) The term ‘women’s business center site’ 
means the location of—
‘‘(A) a women’s business center; or 
‘‘(B) 1 or more women’s business centers, 
established in conjunction with another wom-
en’s business center in another location within 
a State or region—
‘‘(i) that reach a distinct population 
that would otherwise not be served; 
‘‘(ii) whose services are targeted to 
women; and 
‘‘(iii) whose scope, function, and ac-
tivities are similar to those of the primary 
women’s business center or centers in con-
junction with which it was established. 
‘‘(b) AUTHORITY.—The Administrator may provide 
financial assistance to private nonprofit organizations to
382
conduct projects which will receive Federal funding for 5 
years and those that receive extensions for funding under 
the conditions set forth in this section for the benefit of 
small business concerns owned and controlled by women. 
The projects shall provide—
‘‘(1) financial assistance, including training and 
counseling in how to apply for and secure business 
credit and investment capital, preparing and pre-
senting financial statements, and managing cash 
flow and other financial operations of a business 
concern; 
‘‘(2) management assistance, including training 
and counseling in how to plan, organize, staff, di-
rect, and control each major activity and function of 
a small business concern; and 
‘‘(3) marketing assistance, including training 
and counseling in identifying and segmenting domes-
tic and international market opportunities, preparing 
and executing marketing plans, developing pricing 
strategies, locating contract opportunities, negoti-
ating contracts, and utilizing varying public relations 
and advertising techniques. 
‘‘(c) SUBMISSION OF 5-YEAR PLANS.—
‘‘(1) In response to solicitations made by the 
Administrator requesting applications for grants to
383
operate women’s business centers, each applicant or-
ganization initially shall submit a 5-year plan to the 
Administrator detailing the budget required to pro-
vide the services set forth in subsection (b), the serv-
ices that will be provided, the target population, and 
the proposed fundraising activities to meet the non-
Federal contributions mandated by this section. 
‘‘(2)(A) Notwithstanding any other provision of 
law, the Administrator may use such expedited 
methods of solicitation and award as the Adminis-
trator determines to be appropriate to carry out this 
section. 
‘‘(B) Any expedited procedures utilized by the 
Administrator shall ensure that all small business 
sources are provided a reasonable opportunity to 
submit applications. 
‘‘(d) CRITERIA.—The Administrator shall evaluate 
and rank applicants in accordance with predetermined se-
lection criteria that shall be stated in terms of relative im-
portance. Such criteria and their relative importance shall 
be made publicly available and stated in each solicitation 
for applications made by the Administrator. The criteria 
shall include—
‘‘(1) the experience of the applicant in con-
ducting programs or ongoing efforts designed to im-
384
part or upgrade the business skills of women busi-
ness owners or potential owners; 
‘‘(2) the present ability of the applicant to com-
mence a project within a minimum amount of time; 
‘‘(3) the ability of the applicant to provide 
training and services to a representative number of 
women who are both socially and economically dis-
advantaged; and 
‘‘(4) the location for the women’s business cen-
ter site proposed by the applicant. 
‘‘(e) SELECTION
OF GRANTEES.—Assuming other 
ranking factors to be equal, the Administrator shall make 
selection of grantees in the following order of preference: 
‘‘(1) The Administrator shall select from the 
applications those that demonstrate the greatest 
ability to serve women who are socially and economi-
cally disadvantaged whether located in standard 
metropolitan statistical areas or rural areas and 
without regard to the location of an existing center. 
‘‘(2) If, in the opinion of the Administrator, 2 
or more applicants have the same rank with respect 
to service of socially and economically disadvantaged 
women, the Administrator shall prefer the applicant 
that proposes to serve part of a State in a State that 
has not had a center in the past 5 years.