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to any small business concern adversely affected by the
deployment of units of the Armed Forces of the United
States in support of a period of military conflict (as de-
fined in section 7(n)(1)).’’.
(b) ENHANCED PUBLICITY DURING OPERATION AL-
LIED FORCE.—For the duration of Operation Allied Force
and for 120 days thereafter, the Administration shall en-
hance its publicity of the availability of assistance provided
pursuant to the amendment made by this section, includ-
ing information regarding the appropriate local office at
which affected small businesses may seek such assistance.
(c) GUIDELINES.—Not later than 30 days after the
date of enactment of this section, the Administrator of the
Small Business Administration shall issue such guidelines
as the Administrator determines to be necessary to carry
out this section and the amendment made by this section.
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—
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‘‘(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—
(1) by inserting ‘‘guaranteed’’ after ‘‘provide’’;
and
(2) by inserting, ‘‘, including service-disabled
veterans,’’ after ‘‘handicapped individual’’.
SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERV-
ISTS.
(a) REPAYMENT DEFERRAL FOR ACTIVE DUTY RE-
SERVISTS.—Section 7 of the Small Business Act (15
U.S.C. 636) is amended by adding at the end the fol-
lowing:
‘‘(n) REPAYMENT DEFERRED FOR ACTIVE DUTY RE-
SERVISTS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) ELIGIBLE RESERVIST.—The term ‘el-
igible reservist’ means a member of a reserve
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component of the Armed Forces ordered to ac-
tive duty during a period of military conflict.
‘‘(B) ESSENTIAL
EMPLOYEE.—The term
‘essential employee’ means an individual who is
employed by a small business concern and
whose managerial or technical expertise is crit-
ical to the successful day-to-day operations of
that small business concern.
‘‘(C) PERIOD
OF
MILITARY
CONFLICT.—
The term ‘period of military conflict’ means—
‘‘(i) a period of war declared by the
Congress;
‘‘(ii) a period of national emergency
declared by the Congress or by the Presi-
dent; or
‘‘(iii) a period of a contingency oper-
ation, as defined in section 101(a) of title
10, United States Code.
‘‘(D) QUALIFIED
BORROWER.—The term
‘qualified borrower’ means—
‘‘(i) an individual who is an eligible
reservist and who received a direct loan
under subsection (a) or (b) before being
ordered to active duty; or
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‘‘(ii) a small business concern that re-
ceived a direct loan under subsection (a) or
(b) before an eligible reservist, who is an
essential employee, was ordered to active
duty.
‘‘(2) DEFERRAL OF DIRECT LOANS.—
‘‘(A) IN
GENERAL.—The Administration
shall, upon written request, defer repayment of
principal and interest due on a direct loan made
under subsection (a) or (b), if such loan was in-
curred by a qualified borrower.
‘‘(B) PERIOD OF DEFERRAL.—The period
of deferral for repayment under this paragraph
shall begin on the date on which the eligible re-
servist is ordered to active duty and shall termi-
nate on the date that is 180 days after the date
such eligible reservist is discharged or released
from active duty.
‘‘(C) INTEREST RATE REDUCTION DURING
DEFERRAL.—Notwithstanding any other provi-
sion of law, during the period of deferral de-
scribed in subparagraph (B), the Administra-
tion may, in its discretion, reduce the interest
rate on any loan qualifying for a deferral under
this paragraph.
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‘‘(3) DEFERRAL
OF
LOAN
GUARANTEES
AND
OTHER FINANCINGS.—The Administration shall—
‘‘(A) encourage intermediaries partici-
pating in the program under subsection (m) to
defer repayment of a loan made with proceeds
made available under that subsection, if such
loan was incurred by a small business concern
that is eligible to apply for assistance under
subsection (b)(3); and
‘‘(B) not later than 30 days after the date
of enactment of this subsection, establish guide-
lines to—
‘‘(i) encourage lenders and other
intermediaries to defer repayment of, or
provide other relief relating to, loan guar-
antees under subsection (a) and financings
under section 504 of the Small Business
Investment Act of 1958 that were incurred
by small business concerns that are eligible
to apply for assistance under subsection
(b)(3), and loan guarantees provided under
subsection (m) if the intermediary provides
relief to a small business concern under
this paragraph; and
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‘‘(ii) implement a program to provide
for the deferral of repayment or other re-
lief to any intermediary providing relief to
a small business borrower under this para-
graph.’’.
(b) DISASTER LOAN ASSISTANCE FOR MILITARY RE-
SERVISTS’ SMALL BUSINESSES.—Section 7(b) of the
Small Business Act (15 U.S.C. 636(b)) is amended by in-
serting after the undesignated paragraph that begins with
‘‘Provided, That no loan’’, the following:
‘‘(3)(A) In this paragraph—
‘‘(i) the term ‘essential employee’ means
an individual who is employed by a small busi-
ness concern and whose managerial or technical
expertise is critical to the successful day-to-day
operations of that small business concern;
‘‘(ii) the term ‘period of military conflict’
has the meaning given the term in subsection
(n)(1); and
‘‘(iii) the term ‘substantial economic in-
jury’ means an economic harm to a business
concern that results in the inability of the busi-
ness concern—
‘‘(I) to meet its obligations as they
mature;
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‘‘(D) Any loan or guarantee extended pursuant
to this paragraph shall be made at the same interest
rate as economic injury loans under paragraph (2).
‘‘(E) No loan may be made under this para-
graph, either directly or in cooperation with banks
or other lending institutions through agreements to
participate on an immediate or deferred basis, if the
total amount outstanding and committed to the bor-
rower 
under 
this 
subsection 
would 
exceed
$1,500,000, unless such applicant constitutes a
major source of employment in its surrounding area,
as determined by the Administration, in which case
the Administration, in its discretion, may waive the
$1,500,000 limitation.
‘‘(F) For purposes of assistance under this
paragraph, no declaration of a disaster area shall be
required.’’.
(c) ENHANCED PUBLICITY DURING OPERATION AL-
LIED FORCE.—For the duration of Operation Allied Force
and for 120 days thereafter, the Administration shall en-
hance its publicity of the availability of assistance provided
pursuant to the amendments made by this section, includ-
ing information regarding the appropriate local office at
which affected small businesses may seek such assistance.
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(d) GUIDELINES.—Not later than 30 days after the
date of enactment of this section, the Administrator of the
Small Business Administration shall issue such guidelines
as the Administrator determines to be necessary to carry
out this section and the amendments made by this section.
(e) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall take effect on the date of the enactment of this
section.
(2) DISASTER LOANS.—The amendments made
by subsection (b) shall apply to economic injury suf-
fered or likely to be suffered as the result of a period
of military conflict occurring or ending on or after
March 24, 1999.
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’’.
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SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.
Section 501(d)(3) of the Small Business Investment
Act (15 U.S.C. 695(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:
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(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 busi-
ness 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 veterans all individuals
who are veterans within 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
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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).
SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.
(a) GOVERNMENT-WIDE PARTICIPATION GOALS.—
Subsection (g)(1) of section 15 of the Small Business Act
(15 U.S.C. 644) is amended—
(1) in the first sentence, by inserting ‘‘small
business concerns owned and controlled by service
disabled veterans,’’ after ‘‘small business concerns,’’
the first place it appears;
(2) by inserting after the second sentence, the
following: ‘‘The Government-wide goal for participa-
tion by small business concerns owned and con-
trolled by service-disabled veterans shall be estab-
lished at not less than 5 percent of the total value
of all prime contract and subcontract awards for
each fiscal year.’’; and
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(3) in the second to last sentence, by inserting
‘‘small business concerns owned and controlled by
service-disabled veterans,’’ after ‘‘small business con-
cerns,’’ the first place it appears.
(b) AGENCY
PARTICIPATION
GOALS.—Subsection
(g)(2) of section 15 of the Small Business Act (15 U.S.C.
644) is amended—
(1) in the first sentence, by inserting ‘‘by small
business concerns owned and controlled by service-
disabled veterans,’’ after ‘‘small business concerns,’’;
the first place it appears;
(2) in the second sentence, by inserting ‘‘small
business concerns owned and controlled by service-
disabled veterans,’’ after ‘‘small business concerns,’’
the first place it appears; and
(3) in the fourth sentence, by inserting ‘‘small
business concerns owned and controlled by service-
disabled veterans, by’’ after ‘‘including participation
by’’.
TITLE VI—REPORTS AND DATA
COLLECTION
SEC. 601. REPORTING REQUIREMENTS.
(a) REPORTS
TO SMALL BUSINESS ADMINISTRA-
TION.—Subsection (h)(1) of section 15 of the Small Busi-
ness Act (15 U.S.C. 644) is amended by inserting ‘‘small
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business concerns owned and controlled by veterans (in-
cluding service-disabled veterans),’’ after ‘‘small business
concerns,’’ the first place it appears.
(b) REPORTS TO THE PRESIDENT AND THE CON-
GRESS.—Subsection (h)(2) of section 15 of the Small
Business Act (15 U.S.C. 644) is amended—
(1) by inserting ‘‘and the Congress’’ before the
period at the end of first sentence; and
(2) in subparagraphs (A), (D), and (E), by in-
serting ‘‘small business concerns owned and con-
trolled by service-disabled veterans,’’ after ‘‘small
business concerns,’’ the first place it appears.
SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.
Section 303(e) of the Small Business Economic Pol-
icy Act of 1980 (15 U.S.C. 631b(e)) is amended—
(1) in paragraph (1), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (2), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) small business concerns owned and con-
trolled by veterans, as defined in section 3(q) of the
Small Business Act (15 U.S.C. 632(q)), and small
business concerns owned and controlled by service-
disabled veterans, as defined in such section 3(q).’’.
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SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.
The Administrator of the Small Business Administra-
tion shall transmit annually to the Committees on Small
Business and Veterans Affairs of the House of Represent-
atives and the Senate a report on the needs of small busi-
ness concerns owned and controlled by veterans and small
business concerns owned and controlled by service-disabled
veterans, which shall include information on—
(1) the availability of Small Business Adminis-
tration programs for such small business concerns
and the degree of utilization of such programs by
such small business concerns during the preceding
12-month period, including statistical information on
such utilization as compared to the small business
community as a whole;
(2) the percentage and dollar value of Federal
contracts awarded to such small business concerns
during the preceding 12-month period; and
(3) proposals to improve the access of such
small business concerns to the assistance made avail-
able by the United States.
SEC. 604. DATA AND INFORMATION COLLECTION.
(a) INFORMATION
ON
FEDERAL
PROCUREMENT
PRACTICES.—The Administrator of the Small Business
Administration shall, for each fiscal year—
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(1) collect information concerning the procure-
ment practices and procedures of each department
and agency of the United States having procurement
authority;
(2) publish and disseminate such information to
procurement officers in all Federal agencies; and
(3) make such information available to any
small business concern requesting such information.
(b) IDENTIFICATION OF SMALL BUSINESS CONCERNS
OWNED BY ELIGIBLE VETERANS.—Each fiscal year, the
Secretary of Veterans Affairs shall, in consultation with
the Assistant Secretary of Labor for Veterans’ Employ-
ment and Training and the Administrator of the Small
Business Administration, identify small business concerns
owned and controlled by veterans in the United States.
The Secretary shall inform each small business concern
identified under this paragraph that information on Fed-
eral procurement is available from the Administrator.
(c) SELF-EMPLOYMENT OPPORTUNITIES.—The Sec-
retary of Labor, the Secretary of Veterans Affairs, and
the Administrator of the Small Business Administration
shall enter into a memorandum of understanding to pro-
vide for coordination of vocational rehabilitation services,
technical and managerial assistance, and financial assist-
ance to veterans, including service-disabled veterans, seek-
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ing to employ themselves by forming or expanding small
business concerns. The memorandum of understanding
shall include recommendations for expanding existing pro-
grams or establishing new programs to provide such serv-
ices or assistance to such veterans.
TITLE VII—MISCELLANEOUS
PROVISIONS
SEC. 701. ADMINISTRATOR’S ORDER.
The Administrator of the Small Business Administra-
tion shall strengthen and reissue the Administrator’s order
regarding the third sentence of section 4(b)(1) of the
Small Business Act (15 U.S.C. 633(b)(1)), relating to
nondiscrimination and special considerations for veterans,
and take all necessary steps to ensure that its provisions
are fully and vigorously implemented.
SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF
ADVOCACY.
Section 202 of Public Law 94–305 (15 U.S.C. 634b)
is amended—
(1) in paragraph (10), by striking ‘‘and’’ at the
end;
(2) in paragraph (11), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
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‘‘(12) evaluate the efforts of each department
and agency of the United States, and of private in-
dustry, to assist 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)), and
small business concerns owned and controlled by
serviced-disabled veterans, as defined in such section
3(q), and to provide statistical information on the
utilization of such programs by such small business
concerns, and to make appropriate recommendations
to the Administrator of the Small Business Adminis-
tration and to the Congress in order to promote the
establishment and growth of those small business
concerns.’’.
SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.
(a) IN GENERAL.—The Comptroller General shall
conduct a study on whether there would exist any addi-
tional risk or cost to the United States if—
(1) up to 10 percent of the loans guaranteed
under chapter 37 of title 38, United States Code,
were made for the acquisition or construction of
fixed assets used in a trade or business rather than
for the construction or purchase of residential build-
ings; and
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(2) such loans for acquisition or construction of
fixed assets were for a term of not more than 10
years and the terms regarding eligibility, loan limits,
interest, fees, and down payment were the same as
for other loans guaranteed under such chapter.
(b) REPORT.—
(1) IN
GENERAL.—Not later than 180 days
after the enactment of this Act, the Comptroller
General shall transmit the report described in sub-
section (a) to the Committees on Veterans’ Affairs
and the Committees on Small Business of the House
of Representatives and the Senate.
(2) CONTENTS
OF
REPORT.—The report re-
quired by paragraph (1) shall specifically address
the following:
(A) With respect to the change in the vet-
erans’ housing loan program contemplated
under subsection (a):
(i) The increase or decrease in admin-
istrative costs to the Department of Vet-
erans Affairs.
(ii) The increase or decrease in the
degree of exposure of the United States as
the guarantor of the loans.
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(iii) The increase or decrease in the
Federal subsidy rate that would be pos-
sible.
(iv) Any increase in the interest rate
or fees charged to the borrower or lender
that would be required to maintain present
program costs.
(B) Information regarding the delinquency
rates, default rates, length of time required for
recovery after default, for fixed-asset business
loans, of a size and duration comparable to
those contemplated under subsection (a), made
available in the private market or under section
503 of the Small Business Investment Act.
Passed the House of Representatives June 29, 1999.
Attest:
JEFF TRANDAHL,
Clerk.