495 
of 2 years or less or if the project involves the construction of a 
limited-purpose or single-purpose building or other structure; 
(B) at least 20 percent of the total financed cost of the project 
if the project involves both of the conditions described in subpara-
graph (A); or 
(C) an amount specified by the certified development company, 
which shall be at least 10 percent of the total financed cost of the 
project, if the project involves neither of the conditions described 
in subparagraph (A). 
(3) FUNDING.— 
(A) IN GENERAL.—Funds necessary to meet the extent of par-
ticipation or amount of paid-in capital determined by the Adminis-
trator under paragraph (1) for a project of a small business con-
cern financed under the program may be derived, in whole or in 
part, from— 
(i) a State or local government; 
(ii) a bank or other financial institution; 
(iii) a foundation or other nonprofit institution; or 
(iv) the small business concern (or its owners, stockholders, 
or affiliates). 
(B) 3D PARTY FUNDING REQUIREMENT.—Not less than 50 per-
cent of the total financed cost of a project described in subpara-
graph (A) of (B) of paragraph (2) shall come from 1 or more 3d 
party sources described in clauses (i), (ii), and (iii) of subpara-
graph (A). 
(C) SELLER
FINANCING.—Financing provided by a seller of 
property to a small business concern for a project may be used 
to meet the requirements of this paragraph if the seller subordi-
nates the interest of the seller in the property to the debenture 
guaranteed by the Administrator. 
(4) COLLATERAL.— 
(A) IN GENERAL.—The collateral provided by a small business 
concern— 
(i) shall generally include a subordinate lien position on the 
property being financed under the program; and 
(ii) is only 1 of the factors to be evaluated in the credit 
determination. 
(B) ADDITIONAL COLLATERAL.—Additional collateral shall be 
required only if the Administrator determines, on a case-by-case 
basis, that additional security is necessary to protect the interest 
of the Government. 
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(C) APPRAISALS.—With respect to commercial real property 
provided by a small business concern as collateral, an appraisal of 
the property by a State-licensed or State-certified appraiser— 
(i) shall be required by the Administrator before disburse-
ment of the loan if the estimated value of the property is 
more than $250,000; and 
(ii) may be required by the Administrator or the certified 
development company before disbursement of the loan, if— 
(I) the estimated value of the property is $250,000 or 
less; and 
(II) an appraisal is necessary for appropriate evalua-
tion of creditworthiness. 
(5) LEASING.— 
(A) IN GENERAL.—In the case of a project to construct a new 
facility for a small business concern, up to 33 percent of the total 
project may be leased, if reasonable projections of growth dem-
onstrate that the small business concern— 
(i) will need additional space within 3 years after the date 
of completion of the facility; and 
(ii) will fully utilize the additional space within 10 years 
after the date of completion of the facility. 
(B) LIMITATION ON LEASING.—In addition to any portion of a 
project of a small business concern permitted to be leased under 
subparagraph (A), not to exceed 20 percent of the project may be 
leased by the small business concern to 1 or more other tenants 
if the small business occupies permanently and uses not less than 
a total of 60 percent of the space in the project after the execution 
of any leases authorized under this section. 
(6) OWNERSHIP REQUIREMENTS.— 
(A) OWNERSHIP
BY
SPOUSE
UNDER
COMMUNITY
PROPERTY 
LAW.—Ownership requirements to determine the eligibility of a 
small business concern that applies for assistance under the pro-
gram shall be determined without regard to any ownership interest 
of a spouse arising solely from the application of the community 
property law of a State for purposes of determining marital inter-
ests. 
(B) OWNERSHIP BY RELATIVES.— 
(i) IN GENERAL.—The Administrator shall not decline to 
issue a debenture guarantee for a project of a small business 
concern on the ground that the ownership interests of the 
small business concern and the ownership interests of the 
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497 
property to be financed with the proceeds of a loan made with 
the proceeds of the guaranteed debenture are not identical be-
cause 1 or more of the classes of relatives described in clause 
(ii) have an ownership interest in the small business concern 
or the property if the Administrator determines, on a case- 
by-case basis, that the ownership interest, the guarantee, and 
the proceeds of the loan will substantially benefit the small 
business concern. 
(ii) CLASSES OF RELATIVES.—The classes of relatives re-
ferred to in clause (i) are father, mother, son, daughter, wife, 
husband, brother, or sister. 
(7) PERMISSIBLE DEBT REFINANCING.— 
(A) IN GENERAL.—Any financing approved under the program 
may include a limited amount of debt refinancing. 
(B) EXPANSIONS.—If a project involves expansion of a small 
business concern, any amount of existing indebtedness that does 
not exceed 50 percent of the project cost of the expansion may be 
refinanced and added to the expansion cost if— 
(i) the proceeds of the indebtedness were used to acquire 
land, including a building situated on the land, to construct 
a building on the land or to purchase equipment; 
(ii) the existing indebtedness is collateralized by fixed as-
sets; 
(iii) the existing indebtedness was incurred for the benefit 
of the small business concern; 
(iv) the financing under the program will be used only for 
refinancing existing indebtedness or costs relating to the 
project financed under the program; 
(v) the financing under the program will provide a substan-
tial benefit to the borrower when prepayment penalties, fi-
nancing fees, and other financing costs are accounted for; 
(vi) the borrower has been current on all payments due on 
the existing debt for not less than 1 year preceding the date 
of refinancing; and 
(vii) the financing under section 331104 of this title will 
provide better terms or a better rate of interest than the ex-
isting indebtedness at the time of refinancing. 
(C) REFINANCING NOT INVOLVING EXPANSION.— 
(i) DEFINITIONS.—In this subparagraph: 
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498 
(I) BORROWER.—The term ‘‘borrower’’ means a small 
business concern that submits an application to a devel-
opment company for financing under this subparagraph. 
(II) ELIGIBLE FIXED ASSET.—The term ‘‘eligible fixed 
asset’’ means tangible property relating to which the Ad-
ministrator may provide financing under this section. 
(III) QUALIFIED DEBT.—The term ‘‘qualified debt’’ 
means indebtedness— 
(aa) that— 
(AA) was incurred not less than 2 years be-
fore the date of the application for assistance 
under this subparagraph; 
(BB) is a commercial loan; 
(CC) is not subject to a guarantee by a Fed-
eral agency; 
(DD) the proceeds of which were used to ac-
quire an eligible fixed asset; 
(EE) was incurred for the benefit of the 
small business concern; and 
(FF) is collateralized by eligible fixed assets; 
and 
(bb) for which the borrower has been current on 
all payments for not less than 1 year before the 
date of the application. 
(ii) AUTHORITY.—A project that does not involve the ex-
pansion of a small business concern may include the refi-
nancing of qualified debt if— 
(I) the amount of the financing is not more than 90 
percent of the value of the collateral for the financing, 
except that, if the appraised value of the eligible fixed as-
sets serving as collateral for the financing is less than 
the amount equal to 125 percent of the amount of the 
financing, the borrower may provide additional cash or 
other collateral to eliminate any deficiency; 
(II) the borrower has been in operation for all of the 
2-year period ending on the date of the loan; and 
(III) in the case of a financing for which the Adminis-
trator determines that there will be an additional cost at-
tributable to the refinancing of the qualified debt, the 
borrower agrees to pay a fee in an amount equal to the 
anticipated additional cost. 
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499 
(iii) FINANCING FOR PAYMENT OF BUSINESS EXPENSES.— 
(I) FINANCING FOR BUSINESS EXPENSES.—The Ad-
ministrator may provide financing to a borrower that re-
ceives financing that includes a refinancing of qualified 
debt under clause (ii), in addition to the refinancing 
under clause (ii), to be used solely for the payment of 
business expenses. 
(II) APPLICATION
FOR
FINANCING.—An application 
for financing under subclause (I) shall include— 
(aa) a specific description of the expenses for 
which the additional financing is requested; and 
(bb) an itemization of the amount of each ex-
pense. 
(III) CONDITION ON ADDITIONAL FINANCING.—A bor-
rower shall not use any part of the financing under this 
clause for nonbusiness purposes. 
(iv) LOANS BASED ON JOB CREATION AND RETENTION.— 
The Administrator may provide financing under this subpara-
graph for a borrower that meets the job creation and reten-
tion goals under subsection (b). 
(v) NONDELEGATION.—Notwithstanding section 331108(e) 
of this title, the Administrator shall not permit a premier cer-
tified lender to approve or disapprove an application for as-
sistance under this subparagraph. 
(vi) TOTAL AMOUNT OF LOANS.—The Administrator may 
provide not more than a total of $7,500,000,000 of financing 
under this subparagraph for each fiscal year. 
(vii) LIMITATION.—Unless, on application by a develop-
ment company and after determining that the refinance loan 
is needed for good cause, the Administrator waives this 
clause, a development company shall limit its financings 
under this section so that, during any fiscal year, new 
financings under this subparagraph shall not exceed 50 per-
cent of the amount loaned under the certified development 
company program during the previous fiscal year. 
(viii) EFFECTIVE PERIOD.—This subparagraph shall be in 
effect in any fiscal year during which the cost to the Federal 
Government of making guarantees under this section is zero. 
(d) DEBENTURE AMOUNT AND INTEREST.— 
(1) MAXIMUM DEBENTURE AMOUNT.—The amount of a guaranteed 
debenture shall not exceed the aggregate amount of the loans to be 
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500 
made from the proceeds of the guaranteed debenture (other than any 
excess attributable to the administrative costs of the loans). 
(2) MINIMUM INTEREST RATE.—The interest rate on a guaranteed 
debenture shall be not less than the rate of interest determined by the 
Secretary of the Treasury for purposes of section 303104(b) of this 
title. 
(e) LOAN APPROVAL, AMOUNT, AND INTEREST RATE.— 
(1) APPROVAL BY THE ADMINISTRATOR.—The Administrator shall 
approve each loan made with the proceeds of a guaranteed debenture. 
(2) MAXIMUM LOAN AMOUNT.— 
(A) PERCENTAGE OF PROJECT COST.—The amount of a loan 
made with the proceeds of a guaranteed debenture shall not exceed 
the amount that is equal to 50 percent of the cost of the project 
with respect to which the loan is made. 
(B) DOLLAR AMOUNT.— 
(i) IN GENERAL.—Except as provided in clause (ii), the 
amount of a loan made with the proceeds of a guaranteed de-
benture shall not exceed $5,000,000. 
(ii) EXCEPTIONS.— 
(I) PUBLIC POLICY OBJECTIVES.—The amount of a 
loan for a project directed toward 1 or more of the public 
policy objectives described in subsection (b)(1)(B)(iii) 
shall not exceed $5,000,000. 
(II) SMALL MANUFACTURERS.—The amount of a loan 
to a small manufacturer for any 1 project shall not ex-
ceed $5,500,000. 
(III) REDUCTION
OF
ENERGY
CONSUMPTION.—The 
amount of a loan for a project that reduces the bor-
rower’s energy consumption by at least 10 percent shall 
not exceed $5,500,000. 
(IV) GENERATION OF RENEWABLE ENERGY OR RE-
NEWABLE FUEL.—The amount of a loan for a project 
that generates renewable energy or renewable fuel (such 
as biodiesel or ethanol production) shall not exceed 
$5,500,000. 
(f) COMMERCIAL LOAN INTEREST RATE.— 
(1) PURPOSE.—The purpose of this subsection is to facilitate the or-
derly and necessary flow of long-term loans from certified development 
companies to small business concerns. 
(2) MAXIMUM INTEREST RATE.—Notwithstanding the provisions of 
the constitution or laws of any State limiting the rate or amount of 
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501 
interest that may be charged, taken, received, or reserved, the max-
imum legal rate of interest on any commercial loan that funds any por-
tion of the cost of the project financed under the program that is not 
funded by a guaranteed debenture shall be a rate established by the 
Administrator under paragraph (3). 
(3) ESTABLISHMENT BY THE ADMINISTRATOR.—The Administrator 
shall establish and publish quarterly a maximum legal interest rate for 
any commercial loan that funds any portion of the cost of a project 
financed under the program that is not funded by a guaranteed deben-
ture. 
(g) FEES AND CHARGES.— 
(1) LOAN FEES.— 
(A) IN GENERAL.—With respect to each loan made with the 
proceeds of a guaranteed debenture, the Administrator shall assess 
and collect a fee, which shall be payable by the borrowing small 
business concern, in an amount established annually by the Ad-
ministrator. 
(B) AMOUNT.— 
(i) IN GENERAL.—Except as provided in clause (ii), the 
amount of a loan fee shall not exceed the lesser of— 
(I) 0.9375 percent per year of the outstanding balance 
of the loan; or 
(II) the minimum amount necessary to reduce to zero 
the cost (as defined in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a)) to the Adminis-
trator of purchasing and guaranteeing debentures under 
the program. 
(ii) EXCEPTION.— 
(I) IN GENERAL.—In the case of a loan made during 
the 2-year period beginning on October 1, 2002, the 
amount of a loan fee shall be 50 percent of the amount 
established under clause (i), for the life of the loan. 
(II) LIMITATION.—Subclause (I) shall be effective only 
to the extent that funds are made available under appro-
priations Acts, which funds shall be used by the Admin-
istrator to offset the cost (as defined in section 502 of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) 
of that subclause. 
(C) USE OF PROCEEDS.—The Administrator shall use the pro-
ceeds of loan fees collected to offset the cost (as defined in section 
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502 
502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) 
to the Administrator of making guarantees under the program. 
(2) ADMINISTRATIVE EXPENSE CHARGES.—The Administrator may 
impose a charge for administrative expenses with respect to a guaran-
teed debenture. 
(3) PARTICIPATION FEES.— 
(A) IN GENERAL.—The Administrator shall collect a 1-time fee 
in an amount equal to 50 basis points on the total participation 
in a project by an entity described in clause (i), (ii), or (iii) of sub-
section (c)(3)(A) if the participation will occupy a senior credit po-
sition to that of the certified development company. 
(B) USE OF PROCEEDS.—All proceeds of the participation fee 
shall be used to offset the cost (as defined in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Ad-
ministrator of making guarantees under the program. 
(4) CERTIFIED DEVELOPMENT COMPANY FEES.— 
(A) IN
GENERAL.—The Administrator shall collect annually 
from a certified development company a fee of 0.125 percent of 
the outstanding principal balance of any guaranteed debenture ap-
proved by the Administrator on or after October 1, 1996. 
(B) DERIVATION.—The fee under subparagraph (A) shall be de-
rived from the servicing fees collected by the certified development 
company pursuant to regulation and not from any additional fee 
imposed on a small business concern. 
(C) USE OF PROCEEDS.—All proceeds of the certified develop-
ment company fee shall be used to offset the cost (as defined in 
section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 
661a)) to the Administrator of making guarantees under the pro-
gram. 
(5) APPLICABILITY.—The fees authorized by this subsection apply to 
financings approved by the Administrator on or after October 1, 1996. 
(h) CALCULATION OF SUBSIDY RATE.—All fees, interest, and profits re-
ceived and retained by the Administrator under the program shall be in-
cluded in the calculations made by the Director of the Office of Manage-
ment and Budget to offset the cost (as defined in section 502 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Administrator of pur-
chasing and guaranteeing debentures under the program. 
(i) REQUIRED ACTIONS ON DEFAULT.— 
(1) INITIAL ACTIONS.—Not later than the 45th day after the date 
on which a payment on a loan funded through a guaranteed debenture 
is due and not received, the Administrator shall— 
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503 
(A) take all necessary steps to bring the loan current; or 
(B) implement a formal written deferral agreement. 
(2) PURCHASE OR ACCELERATION OF DEBENTURE.—Not later than 
the 65th day after the date on which a payment on a loan described 
in paragraph (1) is due and not received, and absent a formal written 
deferral agreement, the Administrator shall take all necessary steps to 
purchase or accelerate the guaranteed debenture. 
(3) PREPAYMENT PENALTIES.—With respect to the portion of a 
project derived from funds described in subsection (c)(3), the Adminis-
trator— 
(A) shall negotiate the elimination of any prepayment penalties 
or late fees on a defaulted loan made before September 30, 1996; 
(B) shall not pay any prepayment penalty or late fee on the de-
fault-based purchase of a loan issued after September 30, 1996; 
and 
(C) for any project financed after September 30, 1996, shall not 
pay any default interest rate higher than the interest rate on the 
note prior to the date of default. 
§ 331104. Private debenture sales 
(a) IN GENERAL.—Notwithstanding any other law (including a regula-
tion), all guaranteed debentures shall be sold to investors, publicly or by pri-
vate placement. 
(b) FEDERAL FINANCING BANK.—Nothing in any provision of law au-
thorizes the Federal Financing Bank to acquire— 
(1) any obligation the payment of principal or interest on which at 
any time has been guaranteed in whole or in part under the program 
that is being sold under subsection (a); 
(2) any obligation that is an interest in an obligation described in 
paragraph (1); or 
(3) any obligation that is secured by, or substantially all of the value 
of which is attributable to, an obligation described in paragraph (1) or 
(2). 
§ 331105. Pooling of debentures 
(a) ISSUANCE.— 
(1) IN GENERAL.—The Administrator may issue trust certificates 
representing ownership of all or a fractional part of a guaranteed de-
benture. 
(2) TRUST OR POOL.—A trust certificate issued under paragraph (1) 
shall be based on and backed by a trust or pool approved by the Ad-
ministrator and composed solely of guaranteed debentures. 
(b) GUARANTEE.— 
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504 
(1) IN GENERAL.—The Administrator may, on such terms and con-
ditions as the Administrator considers appropriate, guarantee the time-
ly payment of the principal of and interest on trust certificates issued 
by the Administrator (or an agent of the Administrator) for purposes 
of this section. 
(2) LIMITATION.—A guarantee shall be limited to the extent of prin-
cipal and interest on the guaranteed debentures that compose the trust 
or pool. 
(3) PREPAYMENT ON REDEMPTION.— 
(A) REDUCTION OF GUARANTEE.—If a guaranteed debenture in 
a trust or pool is prepaid, voluntarily or in the event of default, 
the guarantee of timely payment of principal and interest on the 
trust certificates shall be reduced in proportion to the amount of 
principal and interest that the prepaid guaranteed debenture rep-
resents in the trust or pool. 
(B) LIMITATION ON GUARANTEE OF INTEREST.—Interest on a 
prepaid or defaulted guaranteed debenture shall accrue and be 
guaranteed by the Administrator only through the date of pay-
ment on the guarantee. 
(C) CALL OF TRUST CERTIFICATE.—During the term of a trust 
certificate, the trust certificate may be called for redemption due 
to prepayment or default of all guaranteed debentures constituting 
the trust or pool. 
(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—The full faith 
and credit of the United States is pledged to the payment of all amounts 
that may be required to be paid under any guarantee of a trust certificate 
issued by the Administrator (or an agent of the Administrator) under this 
section. 
(d) FEES.— 
(1) ADMINISTRATOR.—The Administrator shall not collect any fee 
for a guarantee under this section. 
(2) AGENT OF THE ADMINISTRATOR.—This subsection does not pre-
clude an agent of the Administrator from collecting a fee approved by 
the Administrator for performing the functions described in subsection 
(f)(2). 
(e) SUBROGATION RIGHTS; OWNERSHIP RIGHTS IN GUARANTEED DE-
BENTURES.— 
(1) SUBROGATION.—If the Administrator pays a claim under a guar-
antee issued under this section, the Administrator shall be subrogated 
fully to the rights satisfied by the payment. 
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505 
(2) OWNERSHIP RIGHTS IN GUARANTEED DEBENTURES.—No Fed-
eral, State, or local law shall preclude or limit the exercise by the Ad-
ministrator of the Administrator’s ownership rights in the guaranteed 
debentures constituting the trust or pool against which the trust certifi-
cates are issued. 
(f) CENTRAL REGISTRATION; REGULATION
OF BROKERS
AND DEAL-
ERS.— 
(1) CENTRAL REGISTRATION.—The Administrator shall provide for 
a central registration of all trust certificates sold pursuant to this sec-
tion. 
(2) AGENT.— 
(A) IN GENERAL.—The Administrator shall contract with an 
agent to carry out on behalf of the Administrator— 
(i) the central registration functions under this section; and 
(ii) the issuance of trust certificates to facilitate poolings. 
(B) BOND OR INSURANCE.—The agent under subparagraph (A) 
shall provide a fidelity bond or insurance in such amounts as the 
Administrator determines to be necessary to fully protect the in-
terests of the Government. 
(3) DISCLOSURE.—The Administrator shall require a seller to dis-
close to a purchaser of a trust certificate issued under this section, be-
fore the sale, information on the terms, conditions, and yield of the 
trust certificate. 
(4) REGULATION OF BROKERS AND DEALERS.—The Administrator 
may regulate brokers and dealers in trust certificates sold under this 
section. 
(5) FORM OF REGISTRATION.—This subsection does not preclude the 
use of a book-entry or other electronic form of registration for trust 
certificates. 
§ 331106. Prohibition of acceptance of funding with certain 
conditions, priorities, restrictions, or requirements 
Notwithstanding any other provision of law, a certified development com-
pany shall not accept funding from any source (including a Federal agency) 
if the funding— 
(1) includes any condition, priority, or restriction on the type of 
small business concern to which the certified development company 
may provide financial assistance under the program; or 
(2) includes any condition or imposes any requirement, directly or 
indirectly, on any recipient of assistance under the program. 
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506 
§ 331107. Accredited lenders program 
(a) ESTABLISHMENT OF PROGRAM.—The Administrator may establish as 
part of the program an accredited development company program for quali-
fied development companies that meet the requirements of subsection (b). 
(b) REQUIREMENTS.—The Administrator may designate a qualified devel-
opment company as an accredited lender if the qualified development com-
pany— 
(1) has been an active participant in the program for not less than 
the preceding 12 months; 
(2) has well-trained, qualified personnel who are knowledgeable in 
SBA’s lending policies and procedures for the program; 
(3) has the ability to process, close, and service financing for plant 
and equipment under the program; 
(4) has a loss rate on the qualified development company’s deben-
tures that is reasonable and acceptable to the Administrator; 
(5) has a history of submitting to the Administrator complete and 
accurate debenture guarantee application packages; and 
(6) has demonstrated the ability to serve small business credit needs 
for financing plant and equipment through the program. 
(c) EXPEDITED PROCESSING OF LOAN APPLICATIONS.—The Adminis-
trator shall develop an expedited procedure for processing a loan application 
or servicing action submitted by an accredited lender. 
(d) SUSPENSION OR REVOCATION OF DESIGNATION.— 
(1) IN GENERAL.—The Administrator may suspend or revoke the 
designation of a qualified development company as an accredited lender 
if the Administrator determines that— 
(A) the qualified development company has not continued to 
meet the criteria for eligibility under subsection (b); or 
(B) the qualified development company has failed to adhere to 
the Administrator’s regulations or is violating any other applicable 
provision of law. 
(2) EFFECT.—A suspension or revocation under paragraph (1) shall 
not affect any outstanding debenture guarantee. 
§ 331108. Premier certified lenders program 
(a) ESTABLISHMENT OF PROGRAM.—The Administrator may establish as 
part of the program a premier certified lenders program for certified devel-
opment companies that meet the requirements of subsection (b). 
(b) REQUIREMENTS.— 
(1) APPLICATION.—To be eligible to participate in the premier cer-
tified lenders program, a certified development company shall submit 
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507 
to the Administrator an application at such time, in such manner, and 
containing such information as the Administrator may require. 
(2) DESIGNATION.—The Administrator may designate a certified de-
velopment company as a premier certified lender if— 
(A) the certified development company is an active certified de-
velopment company in good standing; 
(B) the certified development company has been an active par-
ticipant in the accredited lenders program during the entire 12- 
month period preceding the date on which the certified develop-
ment company submits an application under paragraph (1); 
(C) the certified development company has a history of— 
(i) submitting to the Administrator adequately analyzed de-
benture guarantee application packages; and 
(ii) properly closing loans under the program and servicing 
its loan portfolio; 
(D) the certified development company agrees to assume and to 
reimburse the Administrator— 
(i) for 10 percent of any loss sustained by the Adminis-
trator as a result of default by the certified development com-
pany in the payment of principal or interest on a guaranteed 
debenture issued by the certified development company; or 
(ii) for 15 percent of the loss, if the loss is attributable to 
a guaranteed debenture issued by the certified development 
company during any period for which an election is in effect 
under subsection (c)(8) for the certified development com-
pany; and 
(E) the Administrator determines, with respect to the certified 
development company, that the loss reserve established under sub-
section (c) is sufficient for the certified development company to 
meet its obligations to protect the Federal Government from risk 
of loss. 
(3) WAIVER OF REQUIREMENT.—The Administrator may waive the 
requirement of paragraph (2)(B) with respect to a certified develop-
ment company if the certified development company is qualified to par-
ticipate in the accredited lenders program. 
(4) APPLICABILITY OF CRITERIA AFTER DESIGNATION.—The Admin-
istrator may revoke the designation of a certified development company 
as a premier certified lender under this section at any time, if the Ad-
ministrator determines that the certified development company does not 
meet any requirement described in subparagraphs (A) to (E) of para-
graph (2). 
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(c) LOSS RESERVE.— 
(1) IN GENERAL.—A premier certified lender shall establish a loss 
reserve for financing approved under this section. 
(2) AMOUNT.—The amount of a loss reserve under paragraph (1) 
shall be 10 percent of the amount of the premier certified lender’s ex-
posure, as determined under subsection (b)(2)(D). 
(3) ASSETS.—A loss reserve under paragraph (1) shall be comprised 
of— 
(A) segregated funds on deposit in 1 or more accounts with 1 
or more federally insured depository institutions selected by the 
premier certified lender, subject to a collateral assignment in favor 
of, and in a format acceptable to, the Administrator; 
(B) 1 or more irrevocable letters of credit, with a collateral as-
signment in favor of, and a commercially reasonable format ac-
ceptable to, the Administrator; or 
(C) any combination of the assets described in subparagraphs 
(A) and (B). 
(4) CONTRIBUTIONS.—A premier certified lender shall make con-
tributions to a loss reserve under paragraph (1) in the following 
amounts and at the following intervals: 
(A) 50 percent when a debenture is closed. 
(B) 25 percent additional not later than 1 year after a deben-
ture is closed. 
(C) 25 percent additional not later than 2 years after a deben-
ture is closed. 
(5) REIMBURSEMENT OF THE ADMINISTRATOR FOR LOSS.—If a loss 
is sustained by the Administrator, any portion of the loss reserve, and 
other funds provided by the premier certified lender as necessary, may 
be used to reimburse the Administrator for the premier certified lend-
er’s share of the loss as provided in subsection (b)(2)(D) of this sec-
tion. 
(6) REPLACEMENT OF USED FUNDS.—If a premier certified lender 
uses funds in its loss reserve, the premier certified lender shall replace 
an equivalent amount of funds in the loss reserve not later than 30 
days after the date of the use. 
(7) WITHDRAWALS.—The Administrator shall allow a premier cer-
tified lender to withdraw from its loss reserve amounts attributable to 
any debenture that is repaid. 
(d) SALE OF CERTAIN DEFAULTED LOANS.— 
(1) NOTICE.— 
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(A) IN GENERAL.—If, on default in repayment, the Adminis-
trator acquires a loan guaranteed under this section and identifies 
the loan for inclusion in a bulk asset sale of defaulted or repur-
chased loans or other financings, the Administrator shall give 
prior notice of the inclusion of the loan in the bulk asset sale to 
any certified development company that has a contingent liability 
under this section. 
(B) TIMING.—The notice shall be given to the certified develop-
ment company as soon as possible after the financing is identified, 
but not less than 90 days before the date on which the Adminis-
trator first makes any records on the financing available for exam-
ination by prospective purchasers prior to its offering in a package 
of loans for bulk sale. 
(2) LIMITATION.—The Administrator shall not offer a loan described 
in paragraph (1) as part of a bulk sale unless the Administrator— 
(A) provides prospective purchasers with the opportunity to ex-
amine the Administrator’s records with respect to the loan; and 
(B) provides the notice required by paragraph (1). 
(e) LOAN APPROVAL AUTHORITY.— 
(1) IN
GENERAL.—Notwithstanding section 331103(e)(1) of this 
title, and subject to such terms and conditions as the Administrator 
may establish, the Administrator may— 
(A) permit a premier certified lender to approve, authorize, 
close, service, foreclose, litigate (except that the Administrator 
may monitor the conduct of any such litigation to which a premier 
certified lender is a party), and liquidate loans that are funded 
with the proceeds of a debenture issued by the premier certified 
lender; and 
(B) authorize the guarantee of such a debenture. 
(2) SCOPE OF REVIEW.—The approval of a loan by a premier cer-
tified lender shall be subject to final approval as to eligibility of any 
guarantee by the Administrator under section 331103 of this title, but 
such final approval shall not include review of decisions by the lender 
involving creditworthiness, loan closing, or compliance with legal re-
quirements imposed by law (including a regulation). 
(f) REVIEW.— 
(1) IN GENERAL.—After the issuance and sale of debentures under 
this section, the Administrator, at intervals of not greater than 12 
months, shall review the financings made by each premier certified 
lender. 
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(2) MATTERS TO BE REVIEWED.—A review shall include a premier 
certified lender’s credit decisions and general compliance with the eligi-
bility requirements for each financing approved under the premier cer-
tified lenders program. 
(3) CONSIDERATION OF FINDINGS.—The Administrator shall con-
sider the findings of the review in carrying out subsection (g), but the 
review shall not affect any outstanding debenture guarantee. 
(g) SUSPENSION OR REVOCATION.— 
(1) IN GENERAL.—The designation of a certified development com-
pany as a premier certified lender may be suspended or revoked if the 
Administrator determines that the certified development company— 
(A) has not continued to meet the criteria for eligibility under 
subsection (b); 
(B) has not established or maintained the loss reserve required 
under subsection (c); 
(C) is failing to adhere to the Administrator’s regulations; or 
(D) is violating any other applicable provision of law. 
(2) EFFECT OF SUSPENSION OR REVOCATION.—A suspension or rev-
ocation under this subsection shall not affect any outstanding deben-
ture guarantee. 
(h) PROGRAM GOALS.—A certified development company that is des-
ignated as a premier certified lender shall establish a goal of processing a 
minimum of not less than 50 percent of the loan applications that the cer-
tified development company receives for assistance under the premier cer-
tified lenders program. 
§ 331109. Foreclosure and liquidation of loans 
(a) DELEGATION OF AUTHORITY.—The Administrator shall delegate to a 
qualified development company that meets the eligibility requirements of 
subsection (b)(1) the authority to foreclose and liquidate, or to otherwise 
treat in accordance with this section, defaulted loans in its portfolio that 
are funded with the proceeds of guaranteed debentures. 
(b) ELIGIBILITY FOR DELEGATION.— 
(1) REQUIREMENTS.—A qualified development company shall be eli-
gible for a delegation of authority under subsection (a) if— 
(A) the qualified development company— 
(i) participated in the loan liquidation pilot program under 
section 204 of the Small Business Programs Improvement 
Act of 1996 (110 Stat. 3009–736), as in effect on April 8, 
2007; 
(ii) is participating in the premier certified lenders pro-
gram; or 
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(iii) during the 3 fiscal years immediately prior to seeking 
such a delegation, has made an average of not less than 10 
loans per year that are funded with the proceeds of guaran-
teed debentures; and 
(B) the qualified development company— 
(i) has 1 or more employees— 
(I) who have not less than 2 years of substantive deci-
sionmaking experience in administering the liquidation 
and workout of problem loans secured in a manner sub-
stantially similar to loans funded with the proceeds of 
guaranteed debentures; and 
(II) who have completed a training program on loan 
liquidation developed by the Administrator in conjunction 
with qualified development companies that meet the re-
quirements of this paragraph; or 
(ii) submits to the Administrator documentation dem-
onstrating that the qualified development company has con-
tracted with a qualified 3d party to perform any liquidation 
activities and secures the approval of the contract by the Ad-
ministrator with respect to the qualifications of the contractor 
and the terms and conditions of liquidation activities. 
(2) CONFIRMATION.— 
(A) EXAMINATION.—On request, the Administrator shall exam-
ine the qualifications of a qualified development company de-
scribed in subsection (a) to determine whether the qualified devel-
opment company is eligible for the delegation of authority under 
subsection (a). 
(B) DETERMINATION OF INELIGIBILITY.—If the Administrator 
determines that a qualified development company is not eligible, 
the Administrator shall provide the qualified development company 
with the reasons for ineligibility. 
(c) SCOPE OF DELEGATED AUTHORITY.— 
(1) IN GENERAL.—A qualified development company to which the 
Administrator delegates authority under subsection (a) may, with re-
spect to any loan described in subsection (a)— 
(A) perform all liquidation and foreclosure functions, including 
the purchase in accordance with this subsection of any other in-
debtedness secured by the property securing the loan, in a reason-
able and sound manner according to commercially accepted prac-
tices, pursuant to a liquidation plan approved in advance by the 
Administrator under paragraph (2)(A); 
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512 
(B) litigate any matter relating to the performance of the func-
tions described in subparagraph (A), except that the Adminis-
trator may— 
(i) defend or bring any claim if— 
(I) the outcome of the litigation may adversely affect 
the Administrator’s management of the program; or 
(II) the Administrator is entitled to legal remedies not 
available to a qualified development company, and those 
remedies will benefit the Administrator or the qualified 
development company; or 
(ii) oversee the conduct of any such litigation; and 
(C) take other appropriate actions to mitigate loan losses in lieu 
of total liquidation or foreclosures, including the restructuring of 
a loan in accordance with prudent loan servicing practices and 
pursuant to a workout plan approved in advance by the Adminis-
trator under paragraph (2)(C). 
(2) APPROVAL BY THE ADMINISTRATOR.— 
(A) LIQUIDATION PLAN.— 
(i) SUBMISSION.—Before carrying out functions described 
in paragraph (1)(A), a qualified development company shall 
submit to the Administrator a proposed liquidation plan. 
(ii) ACTION BY THE ADMINISTRATOR ON PROPOSED LIQ-
UIDATION PLAN.— 
(I) TIMING.—Not later than 15 business days after a 
liquidation plan is received by the Administrator under 
clause (i), the Administrator shall approve or reject the 
liquidation plan. 
(II) NOTICE OF NO DECISION.—With respect to any 
liquidation plan that cannot be approved or denied with-
in the 15-day period required by subclause (I), the Ad-
ministrator shall within that period provide in accord-
ance with subparagraph (E) notice to the qualified devel-
opment company that submitted the liquidation plan. 
(iii) ROUTINE
ACTIONS.—In carrying out functions de-
scribed in paragraph (1)(A), a qualified development company 
may undertake routine actions not addressed in a liquidation 
plan without obtaining additional approval from the Adminis-
trator. 
(B) PURCHASE OF INDEBTEDNESS.— 
(i) IN GENERAL.—In carrying out functions described in 
paragraph (1)(A), a qualified development company shall sub-
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513 
mit to the Administrator a request for written approval before 
committing the Administrator to the purchase of any other 
indebtedness secured by the property securing a defaulted 
loan. 
(ii) ACTION BY THE ADMINISTRATOR ON REQUEST.— 
(I) TIMING.—Not later than 15 business days after re-
ceiving a request under clause (i), the Administrator 
shall approve or deny the request. 
(II) NOTICE OF NO DECISION.—With respect to any 
request that cannot be approved or denied within the 15- 
day period required by subclause (I), the Administrator 
shall within that period provide in accordance with sub-
paragraph (E) notice to the qualified development com-
pany that submitted the request. 
(C) WORKOUT PLAN.— 
(i) IN GENERAL.—In carrying out functions described in 
paragraph (1)(C), a qualified development company shall sub-
mit to the Administrator a proposed workout plan. 
(ii) ACTION BY THE ADMINISTRATOR ON PROPOSED WORK-
OUT PLAN.— 
(I) TIMING.—Not later than 15 business days after a 
workout plan is received by the Administrator under 
clause (i), the Administrator shall approve or reject the 
workout plan. 
(II) NOTICE OF NO DECISION.—With respect to any 
workout plan that cannot be approved or denied within 
the 15-day period required by subclause (I), the Admin-
istrator shall, within that period, provide in accordance 
with subparagraph (E) notice to the qualified develop-
ment company that submitted the workout plan. 
(D) COMPROMISE OF INDEBTEDNESS.—In carrying out func-
tions described in paragraph (1)(A), a qualified development com-
pany may— 
(i) consider an offer made by an obligor to compromise the 
debt for less than the full amount owing; and 
(ii) pursuant to such an offer, release any obligor or other 
party contingently liable, if the qualified development com-
pany secures the written approval of the Administrator. 
(E) CONTENTS OF NOTICE OF NO DECISION.—A notice provided 
by the Administrator under subparagraph (A)(ii)(II), (B)(ii)(II), 
or (C)(ii)(II)— 
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(i) shall be in writing; 
(ii) shall state the specific reason for the Administrator’s 
inability to act on a liquidation plan, request, or workout 
plan; 
(iii) shall include an estimate of the additional time re-
quired by the Administrator to act on the liquidation plan, re-
quest, or workout plan; and 
(iv) if the Administrator cannot act because insufficient in-
formation or documentation was provided by the qualified de-
velopment company that submitted the liquidation plan, re-
quest, or workout plan, shall specify the nature of such addi-
tional information or documentation. 
(3) CONFLICT OF INTEREST.—In carrying out functions described in 
paragraph (1), a qualified development company shall take no action 
that would result in an actual or apparent conflict of interest between 
the qualified development company (or any employee of the qualified 
development company) and any 3d party lender, associate of a 3d party 
lender, or any other person participating in a liquidation, foreclosure, 
or loss mitigation action. 
(d) SUSPENSION OR REVOCATION OF AUTHORITY.—The Administrator 
may revoke or suspend a delegation of authority under this section to a 
qualified development company if the Administrator determines that the 
qualified development company— 
(1) does not meet the requirements of subsection (b)(1); 
(2) has violated any applicable regulation of the Administrator or 
any other applicable law; or 
(3) fails to comply with any reporting requirement that may be es-
tablished by the Administrator relating to the carrying out of functions 
described in this section. 
Subtitle IV—Miscellaneous 
Chapter 401—PRIME Program 
Sec. 
401101.
Definitions. 
401102.
Establishment of program. 
401103.
Uses of assistance. 
401104.
Allocation of assistance; subgrants. 
401105.
Matching requirement. 
401106.
Applications for assistance. 
401107.
Recordkeeping. 
401108.
Implementation. 
401109.
Authorization of appropriations. 
§ 401101. Definitions 
In this chapter: 
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(1) CAPACITY
BUILDING
SERVICE.—The term ‘‘capacity building 
service’’ means a service provided to an organization that is, or that 
is in the process of becoming, a microenterprise development organiza-
tion or program, for the purpose of enhancing its ability to provide 
training and services to disadvantaged entrepreneurs. 
(2) COLLABORATIVE.—The term ‘‘collaborative’’ means 2 or more 
nonprofit entities that agree to act jointly as a qualified organization 
under the program. 
(3) DISADVANTAGED
ENTREPRENEUR.—The term ‘‘disadvantaged 
entrepreneur’’ means a microentrepreneur that is— 
(A) a low-income person; 
(B) a very low-income person; or 
(C) an entrepreneur that lacks adequate access to capital or 
other resources essential for business success, or is economically 
disadvantaged, as determined by the Administrator. 
(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning given 
the term in section 103 of the Community Development Banking and 
Financial Institutions Act of 1994 (12 U.S.C. 4702). 
(5) INTERMEDIARY.—The term ‘‘intermediary’’ means a private, 
nonprofit entity that seeks to serve qualified organizations. 
(6) LOW-INCOME PERSON.—The term ‘‘low-income person’’ means a 
person having income described in the definition of ‘‘low-income’’ in 
section 103 of the Community Development Banking and Financial In-
stitutions Act of 1994 (12 U.S.C. 4702). 
(7) MICROENTERPRISE.—The term ‘‘microenterprise’’ means a sole 
proprietorship, partnership, or corporation that— 
(A) has fewer than 5 employees; and 
(B) generally lacks access to conventional loans, equity, or other 
banking services. 
(8) MICROENTERPRISE
DEVELOPMENT
ORGANIZATION
OR
PRO-
GRAM.—The term ‘‘microenterprise development organization or pro-
gram’’ means a nonprofit entity (including a community development 
corporation or other nonprofit development organization or a social 
service organization), or a program administered by such an entity, 
that provides services to disadvantaged entrepreneurs. 
(9) MICROENTREPRENEUR.—The term ‘‘microentrepreneur’’ means 
the owner or developer of a microenterprise. 
(10) PROGRAM.—The term ‘‘program’’ means the PRIME program. 
(11) QUALIFIED ORGANIZATION.—The term ‘‘qualified organization’’ 
means— 
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(A) a nonprofit microenterprise development organization or 
program (or a group or collaborative thereof) that has a dem-
onstrated record of delivering microenterprise services to disadvan-
taged entrepreneurs; 
(B) an intermediary; 
(C) a microenterprise development organization or program that 
is accountable to a local community, working in conjunction with 
a State or local government or Indian tribe; or 
(D) an Indian tribe acting on its own, if the Indian tribe cer-
tifies that no private organization or program referred to in this 
paragraph exists within its jurisdiction. 
(12) TRAINING AND TECHNICAL ASSISTANCE.—The term ‘‘training 
and technical assistance’’ means service and support provided to a dis-
advantaged entrepreneur, such as assistance for the purpose of enhanc-
ing business planning, marketing, management, financial management 
skills, and assistance for the purpose of accessing financial services. 
(13) VERY LOW-INCOME PERSON.—The term ‘‘very low-income per-
son’’ means a person having an income, adjusted for family size, of not 
more than 150 percent of the poverty line (as defined in section 673 
of the Community Services Block Grant Act (42 U.S.C. 9902), includ-
ing any revision required by that section). 
§ 401102. Establishment of program 
The Administrator shall establish a microenterprise technical assistance 
and capacity building grant program, to be known as the program for in-
vestment in microenterprise or the PRIME program, to provide assistance 
in the form of grants to qualified organizations in accordance with this 
chapter. 
§ 401103. Uses of assistance 
A qualified organization shall use a grant made under the program— 
(1) to provide training and technical assistance to disadvantaged en-
trepreneurs; 
(2) to provide training and capacity building services to microenter-
prise development organizations and programs and groups of such or-
ganizations to assist the organizations and programs in developing mi-
croenterprise training and services; 
(3) to aid in researching and developing the best practices in the 
field of microenterprise and technical assistance programs for disadvan-
taged entrepreneurs; and 
(4) for such other activities as the Administrator determines are con-
sistent with the purposes of the program. 
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§ 401104. Allocation of assistance; subgrants 
(a) ALLOCATION OF ASSISTANCE.— 
(1) IN GENERAL.—The Administrator shall allocate assistance under 
the program to ensure that— 
(A) activities described in section 401103(1) of this title are 
funded using not less than 75 percent of amounts made available 
for such assistance; and 
(B) activities described in section 401103(2) of this title are 
funded using not less than 15 percent of amounts made available 
for such assistance. 
(2) LIMIT ON INDIVIDUAL ASSISTANCE.—No single person may re-
ceive more than 10 percent of the total funds appropriated for the pro-
gram in a single fiscal year. 
(b) TARGETED ASSISTANCE.—The Administrator shall ensure that not 
less than 50 percent of the grants made under the program are used to ben-
efit very low-income persons, including those residing on Indian reserva-
tions. 
(c) SUBGRANTS.— 
(1) IN
GENERAL.—A qualified organization receiving assistance 
under the program may provide grants using that assistance to quali-
fied small and emerging microenterprise organizations and programs, 
subject to such regulations as the Administrator determines to be ap-
propriate. 
(2) LIMIT ON ADMINISTRATIVE EXPENSES.—Not more than 7.5 per-
cent of the amount of assistance received by a qualified organization 
under the program may be used for administrative expenses in connec-
tion with the making of subgrants under paragraph (1). 
(d) DIVERSITY.—In making grants under the program, the Administrator 
shall ensure that grant recipients include both large and small microenter-
prise organizations, serving urban, rural, and Indian tribal communities 
with diverse populations. 
(e) PROHIBITION OF PREFERENTIAL CONSIDERATION OF CERTAIN SBA 
PROGRAM PARTICIPANTS.—In making grants under the program, the Ad-
ministrator shall ensure that any application made by a qualified organiza-
tion that is a participant in the microloan program does not receive pref-
erential consideration over applications from other qualified organizations 
that are not participants in the microloan program. 
§ 401105. Matching requirement 
(a) IN GENERAL.—Financial assistance under the program shall be 
matched with funds from sources other than the Federal Government in the 
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amount of not less than 50 cents for each dollar provided by the Adminis-
trator. 
(b) SOURCES OF MATCHING FUNDS.—Fees, grants, gifts, funds from 
loan sources, and in-kind resources of a grant recipient from public or pri-
vate sources may be used to comply with the matching requirement under 
subsection (a). 
(c) EXCEPTION.— 
(1) IN GENERAL.—In the case of an applicant for assistance under 
the program with severe constraints on available sources of matching 
funds, the Administrator may reduce or eliminate the matching re-
quirement under subsection (a). 
(2) LIMITATION.—Not more than 10 percent of the total funds made 
available to carry out the program for any fiscal year may be excepted 
under paragraph (1) from the matching requirement under subsection 
(a). 
§ 401106. Applications for assistance 
An application for assistance under the program shall be submitted in 
such form and in accordance with such procedures as the Administrator 
shall establish. 
§ 401107. Recordkeeping 
The requirements of section 115 of the Community Development Banking 
and Financial Institutions Act of 1994 (12 U.S.C. 4714) shall apply to a 
qualified organization receiving assistance from the Administrator under the 
program as if the qualified organization were a community development fi-
nancial institution receiving assistance from the Fund under that Act. 
§ 401108. Implementation 
The Administrator shall by regulation establish such requirements as are 
necessary to carry out this chapter. 
§ 401109. Authorization of appropriations 
There are authorized to be appropriated to the Administrator to carry out 
this chapter— 
(1) $15,000,000 for fiscal year 2000; 
(2) $15,000,000 for fiscal year 2001; 
(3) $15,000,000 for fiscal year 2002; and 
(4) $15,000,000 for fiscal year 2003. 
Chapter 403—Women’s Business Enterprise 
Development 
Sec. 
403101.
Definitions. 
403102.
Establishment of the Interagency Committee. 
403103.
Duties of the Interagency Committee. 
403104.
Membership of the Interagency Committee. 
403105.
Reports from the Interagency Committee. 
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403106.
Establishment of the National Women’s Business Council. 
403107.
Duties of the Council. 
403108.
Membership and staff of the Council. 
403109.
Studies and other research. 
403110.
Authorization of appropriations. 
§ 403101. Definitions 
In this chapter: 
(1) CONTROL.—The term ‘‘control’’ means to exercise the power to 
make policy decisions concerning a business. 
(2) COUNCIL.—The term ‘‘Council’’ means the National Women’s 
Business Council established under section 403106 of this title. 
(3) INTERAGENCY COMMITTEE.—The term ‘‘Interagency Committee’’ 
means the Interagency Committee on Women’s Business Enterprise es-
tablished under section 403102 of this title. 
(4) OPERATE.—The term ‘‘operate’’ means to be actively involved in 
the day-to-day management of a business. 
(5) WOMEN’S BUSINESS ENTERPRISE.—The term ‘‘women’s business 
enterprise’’ means— 
(A) a business or businesses owned by a woman or a group of 
women; or 
(B) the establishment, maintenance, or development of a busi-
ness or businesses by a woman or a group of women. 
(6) WOMEN-OWNED BUSINESS.—The term ‘‘women-owned business’’ 
means a small business— 
(A) that a woman or a group of women controls and operates; 
and 
(B) of which not less than 51 percent is owned by a woman or 
a group of women. 
§ 403102. Establishment of the Interagency Committee 
There is established an interagency committee to be known as the Inter-
agency Committee on Women’s Business Enterprise. 
§ 403103. Duties of the Interagency Committee 
(a) IN GENERAL.—The Interagency Committee shall— 
(1) monitor, coordinate, and promote the plans, programs, and oper-
ations of the Federal agencies that may contribute to the establishment 
and growth of women’s business enterprises; 
(2) develop and promote new public sector initiatives, policies, pro-
grams, and plans designed to foster women’s business enterprises; 
(3) review, monitor, and coordinate plans and programs, developed 
in the public sector, that affect the ability of women-owned businesses 
to obtain capital and credit; and 
(4) promote and assist, as appropriate, in the development of surveys 
of women-owned businesses. 
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(B) SBA.—With respect to SBA, the representative shall be the 
Assistant Administrator of the Office of Women’s Business Own-
ership, who shall— 
(i) serve as the vice chairperson of the Interagency Com-
mittee; 
(ii) report directly to the Administrator on the status of the 
activities on the Interagency Committee; and 
(iii) serve as the Interagency Committee Liaison to the 
Council. 
(3) OTHER PARTICIPATION.—Representatives of the Federal Govern-
ment not listed in paragraph (1) may participate in the meetings and 
functions of the Interagency Committee on a temporary basis as needed 
to carry out specific Interagency Committee goals. 
(b) APPOINTMENT
OF CHAIRPERSON.—The President, in consultation 
with the Administrator, shall appoint 1 of the members of the Interagency 
Committee to serve as chairperson. 
(c) NONCOMPENSATION.—A member of the Interagency Committee shall 
serve without additional pay for such membership. 
(d) DETAIL OF FEDERAL EMPLOYEES.—On request by the chairperson 
of the Interagency Committee, the head of any Federal agency may detail 
any of the personnel of the Federal agency to assist the Interagency Com-
mittee in carrying out its duties under this chapter without regard to sec-
tion 3341 of title 5. 
§ 403105. Reports from the Interagency Committee 
The Interagency Committee, through the Administrator, shall annually 
submit to the President, the Committee on Small Business and Entrepre-
neurship of the Senate, and the Committee on Small Business of the House 
of Representatives a report that contains— 
(1) a detailed description of the activities of the Interagency Com-
mittee, including a verbatim report on the status of progress of the 
Interagency Committee in meeting its responsibilities and duties under 
section 403103(a) of this title; 
(2) the findings and conclusions of the Interagency Committee; and 
(3) the Interagency Committee’s recommendations for such legisla-
tion and administrative actions as the Interagency Committee considers 
appropriate to promote the development of small business concerns 
owned and controlled by women. 
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§ 403106. Establishment of the National Women’s Business 
Council 
There is established a council to be known as the National Women’s 
Business Council, which shall serve as an independent source of advice and 
policy recommendations to— 
(1) the Interagency Committee; 
(2) the Administrator (through the Assistant Administrator of the 
Office of Women’s Business Ownership); 
(3) Congress; and 
(4) the President. 
§ 403107. Duties of the Council 
(a) IN GENERAL.—The Council shall advise and consult with the Inter-
agency Committee on matters relating to the activities, functions, and poli-
cies of the Interagency Committee, as provided in this chapter. 
(b) MEETINGS.— 
(1) IN GENERAL.—The Council— 
(A) shall meet jointly with the Interagency Committee as pro-
vided in section 403103(c) of this title; and 
(B) shall meet separately at such times as the Council considers 
necessary. 
(2) QUORUM.—A majority of the members of the Council shall con-
stitute a quorum for the approval of recommendations or reports issued 
under this section. 
(c) RECOMMENDATIONS AND REPORTS.—The Council shall— 
(1) make annual recommendations for consideration by the Inter-
agency Committee; and 
(2) provide reports and make such other recommendations as the 
Council considers appropriate to— 
(A) the Interagency Committee; 
(B) the President; 
(C) the Administrator (through the Assistant Administrator of 
the Office of Women’s Business Ownership); and 
(D) the Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of the House 
of Representatives. 
(d) OTHER DUTIES.—The Council shall— 
(1) review, coordinate, and monitor plans and programs developed in 
the public and private sectors that affect the ability of women-owned 
business enterprises to obtain capital and credit; 
(2) promote and assist in the development of a women’s business 
census and other surveys of women-owned businesses; 
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(3) monitor and promote the plans, programs, and operations of 
Federal agencies that may contribute to the establishment and growth 
of women’s business enterprise; 
(4) develop and promote new initiatives, policies, programs, and 
plans designed to foster women’s business enterprises; 
(5) advise and consult with the Interagency Committee in the design 
of a comprehensive plan for a joint public-private sector effort to facili-
tate growth and development of women’s business enterprises; and 
(6) not later than 90 days after the last day of each fiscal year, sub-
mit to the President, the Committee on Small Business and Entrepre-
neurship of the Senate, and the Committee on Small Business of the 
House of Representatives, a report that contains— 
(A) a detailed description of the activities of the Council, includ-
ing a status report on the Council’s progress toward meeting its 
duties under this subsection and subsection (a); 
(B) the findings, conclusions, and recommendations of the 
Council; and 
(C) the Council’s recommendations for such legislation and ad-
ministrative actions as the Council considers appropriate to pro-
mote the development of small business concerns owned and con-
trolled by women. 
(e) FORM
OF INFORMATION.—The information described in subpara-
graphs (A) to (C) of subsection (d)(6) shall be reported in a report under 
subsection (d) verbatim, with any separate additional, concurring, or dis-
senting views of the Administrator. 
§ 403108. Membership and staff of the Council 
(a) CHAIRPERSON.— 
(1) IN GENERAL.—The President shall appoint an individual to 
serve as chairperson of the Council, in consultation with the Adminis-
trator. 
(2) QUALIFICATIONS.—The chairperson of the Council shall be a 
prominent business woman who is qualified to head the Council by vir-
tue of her education, training, and experience. 
(b) OTHER MEMBERS.—The Administrator shall, after receiving the rec-
ommendations of the Chairman and the Ranking Member of the Committee 
on Small Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives, appoint, in consultation 
with the chairperson of the Council, 14 members of the Council, of whom— 
(1) 4 shall be— 
(A) owners of small business concerns; and 
(B) members of the same political party as the President; 
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(2) 4 shall— 
(A) be owners of small business concerns; and 
(B) not be members of the same political party as the Presi-
dent; and 
(3) 6 shall be representatives of women’s business organizations, in-
cluding representatives of women’s business center sites. 
(c) DIVERSITY.—In appointing members of the Council, the Adminis-
trator shall, to the extent possible, ensure that the members appointed re-
flect geographic (including both urban and rural areas), racial, economic, 
and public-private sectoral diversity. 
(d) TERMS.—A member of the Council shall be appointed for a term of 
3 years. 
(e) OTHER FEDERAL SERVICE.—If, after appointment to the Council, a 
member of the Council becomes an officer or employee of the Federal Gov-
ernment, the member may continue as a member of the Council for not 
longer than the 30-day period beginning on the date on which the member 
becomes such an officer or employee. 
(f) VACANCIES.— 
(1) IN GENERAL.—A vacancy on the Council shall be filled not later 
than 30 days after the date on which the vacancy occurs, in the man-
ner in which the original appointment was made, and shall be subject 
to any conditions that applied to the original appointment. 
(2) UNEXPIRED TERM.—An individual chosen to fill a vacancy shall 
be appointed for the unexpired term of the member replaced. 
(g) REIMBURSEMENTS.—A member of the Council shall serve without pay 
for such membership, except that a member shall be entitled to reimburse-
ment for travel, subsistence, and other necessary expenses incurred by the 
member in carrying out the functions of the Council, in the same manner 
as a person serving on an advisory committee under section 103115 of this 
title. 
(h) EXECUTIVE DIRECTOR AND ADDITIONAL EMPLOYEES.— 
(1) EXECUTIVE DIRECTOR.—The Administrator, in consultation with 
the chairperson of the Council, shall appoint an executive director of 
the Council. 
(2) ADDITIONAL EMPLOYEES.—On recommendation by the executive 
director, the chairperson of the Council may appoint and fix the pay 
of 4 additional employees of the Council, at a rate of pay not to exceed 
the maximum rate of pay payable for a position at GS–15 of the Gen-
eral Schedule. 
(3) APPROPRIATIONS.—An appointment under paragraph (1) or (2) 
shall be subject to the appropriation of funds. 
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(i) RATES OF PAY.—The executive director and staff of the Council may 
be appointed without regard to the provisions of title 5 governing appoint-
ments in the competitive service, and except as provided in subsection (e), 
may be paid without regard to the provisions of chapter 51 and subchapter 
III of chapter 53 of that title relating to classification and General Schedule 
pay rates, except that the executive director may not receive pay in excess 
of the annual rate of basic pay payable for a position at ES–3 of the Senior 
Executive Pay Schedule under section 5382 of title 5. 
§ 403109. Studies and other research 
(a) IN GENERAL.—The Council may conduct such studies and other re-
search relating to the award of Federal prime contracts and subcontracts 
to women-owned businesses, to access to credit and investment capital by 
women entrepreneurs, or to other issues relating to women-owned busi-
nesses, as the Council determines to be appropriate. 
(b) CONTRACT AUTHORITY.—In conducting any study or other research 
under this section, the Council may contract with 1 or more public or pri-
vate entities. 
§ 403110. Authorization of appropriations 
(a) IN GENERAL.—There is authorized to be appropriated to carry out 
this chapter $1,000,000 for each of fiscal years 2001 through 2003, of 
which $550,000 shall be available in each such fiscal year to carry out sec-
tion 403109 of this title. 
(b) BUDGET REVIEW.—No amount made available under this section for 
any fiscal year may be obligated or expended by the Council before the date 
on which the Council reviews and approves the operating budget of the 
Council to carry out the responsibilities of the Council for that fiscal year. 
Chapters 405 Through 489—Reserved 
Chapter 491—Miscellaneous 
Sec. 
491101.
Small business economic policy. 
491102.
Small Business Manufacturing Task Force. 
491103.
Test program for negotiation of comprehensive small business subcontracting plans. 
491104.
Coordination of Federal assistance for small business concerns adversely affected by 
NAFTA. 
491105.
Disaster aid to major sources of employment. 
491106.
Background check policy; fingerprinting. 
491107.
Expedited resolution of contract dispute matters. 
491108.
Small Business Procurement Advisory Council. 
491109.
Small business energy efficiency. 
491110.
Information regarding, and marketing of, programs for veterans and reservists. 
491111.
Outreach regarding health insurance options available to children. 
491112.
Secondary market lending authority. 
§ 491101. Small business economic policy 
(a) DECLARATION OF SMALL BUSINESS POLICY.— 
(1) PRESERVATION AND PROMOTION OF COMPETITIVE FREE ENTER-
PRISE SYSTEM.—For the purpose of preserving and promoting a com-
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petitive free enterprise economic system, Congress declares that it is 
the continuing policy and responsibility of the Federal Government to 
use all practical means and to take such actions as are necessary, con-
sistent with its needs and obligations and other essential considerations 
of national policy, to implement and coordinate all Federal agency poli-
cies, programs, and activities to— 
(A) foster the economic interests of small businesses; 
(B) ensure the existence of a competitive economic climate con-
ducive to the development, growth, and expansion of small busi-
nesses; 
(C) establish incentives to ensure that adequate capital and 
other resources at competitive prices are available to small busi-
nesses; 
(D) reduce the concentration of economic resources and expand 
competition; and 
(E) provide an opportunity for entrepreneurship, inventiveness, 
and the creation and growth of small businesses. 
(2) AVAILABILITY OF ADEQUATE CAPITAL TO SMALL BUSINESSES.— 
Congress declares that the Federal Government is committed to a pol-
icy of utilizing all reasonable means, consistent with the overall eco-
nomic policy goals of the Nation and the preservation of the competi-
tive free enterprise system of the Nation, to establish private sector in-
centives that will help ensure that adequate capital at competitive 
prices is available to small businesses. 
(b) PROMOTION OF INVESTMENT.—To fulfill the policy stated in sub-
section (a), each Federal agency shall use all reasonable means to coordi-
nate, create, and sustain policies and programs that promote investment in 
small businesses, including the investments that expand employment oppor-
tunities and foster the effective and efficient use of human and natural re-
sources in the national economy. 
(c) REPORT ON SMALL BUSINESS AND COMPETITION.— 
(1) IN GENERAL.—Not later than January 20 of each year, the 
President shall submit to the Committee on Small Business and Entre-
preneurship of the Senate and the Committee on Small Business of the 
House of Representatives a report on small business and competition. 
(2) CONTENTS.—A report under paragraph (1) shall— 
(A) examine the current role of small business in the economy 
on an industry-by-industry basis; 
(B) present current and historical data on production, employ-
ment, investment, population, job creation and retention, annual 
business failures, annual business startups, and other economic 
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variables for small business in the economy as a whole and for 
small business in each sector of the economy, with, to the extent 
practicable, specific statistics divided as to urban, suburban, and 
rural areas; 
(C) identify economic trends that may affect the small business 
sector and the state of competition; 
(D)(i) examine the effects on small business and competition of 
policies, programs, and activities, including— 
(I) the Internal Revenue Code of 1986 (26 U.S.C. 1 et 
seq.); 
(II) the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1001 et seq.); 
(III) the Securities Act of 1933 (15 U.S.C. 77a et seq.); 
and 
(IV) the Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.); 
(ii) identify problems generated by such policies, programs, and 
activities; and 
(iii) recommend legislative and administrative solutions to such 
problems; 
(E) recommend a program for carrying out the policy declared 
in subsection (a), including such recommendations for legislation 
as the President considers necessary or desirable; and 
(F) include an appendix that discloses, for each Federal agen-
cy— 
(i) the total dollar value of all Federal contracts (including 
subcontracts) exceeding $10,000 in amount; and 
(ii) the dollar amount of those contracts awarded to— 
(I) small businesses; 
(II) minority-owned businesses; 
(III) female-owned businesses; and 
(IV) veteran-owned businesses. 
(3) DETAILING OF INFORMATION.—The information required to be 
contained in the report under paragraph (1) shall separately detail the 
portions of the information that are relevant to— 
(A) small business concerns owned and controlled by socially 
and economically disadvantaged individuals, by gender; 
(B) small business concerns owned and controlled by women; 
(C) qualified HUBZone small business concerns; and 
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(D) small business concerns owned and controlled by veterans 
and small business concerns owned and controlled by service-dis-
abled veterans. 
(4) SUPPLEMENTARY REPORTS.—The President may from time to 
time submit to the Committee on Small Business and Entrepreneurship 
of the Senate and the Committee on Small Business of the House of 
Representatives reports supplementary to a report under paragraph (1) 
that includes such supplementary or revised recommendations as the 
President considers necessary or desirable to achieve the policy declared 
in subsection (a). 
§ 491102. Small Business Manufacturing Task Force 
(a) ESTABLISHMENT.—The Administrator shall establish a Small Busi-
ness Manufacturing Task Force (referred to in this section as the ‘‘Task 
Force’’) to address the concerns of small manufacturers. 
(b) CHAIR.—The Administrator shall assign a member of the Task Force 
to serve as chair of the Task Force. 
(c) DUTIES.—The Task Force shall— 
(1) evaluate and identify whether programs and services are suffi-
cient to serve the needs of small manufacturers; 
(2) actively promote the SBA programs and services that serve small 
manufacturers; and 
(3) identify and study the unique conditions facing small manufac-
turers and develop and propose policy initiatives to support and assist 
small manufacturers. 
(d) MEETINGS.— 
(1) FREQUENCY.—The Task Force shall meet not less than 4 times 
a year, and more frequently if necessary to perform its duties. 
(2) QUORUM.—A majority of the members of the Task Force shall 
constitute a quorum to approve recommendations or reports. 
(e) PERSONNEL MATTERS.— 
(1) COMPENSATION OF MEMBERS.—A member of the Task Force 
shall serve without compensation in addition to that received for serv-
ices rendered as an officer or employee of the United States. 
(2) DETAIL OF SBA EMPLOYEES.—Any SBA employee may be de-
tailed to the Task Force without reimbursement and without interrup-
tion or loss of civil service status or privilege. 
(f) REPORT.—The Task Force shall annually submit a report containing 
the findings and recommendations of the Task Force to— 
(1) the President; 
(2) the Committee on Small Business and Entrepreneurship of the 
Senate; and 
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(3) the Committee on Small Business of the House of Representa-
tives. 
§ 491103. Test program for negotiation of comprehensive 
small business subcontracting plans 
(a) TEST PROGRAM.— 
(1) IN GENERAL.—The Secretary of Defense shall establish a test 
program under which contracting activities in the military departments 
and the defense agencies are authorized to undertake 1 or more dem-
onstration projects to determine whether the negotiation and adminis-
tration of comprehensive subcontracting plans will reduce administra-
tive burdens on contractors while enhancing opportunities provided 
under Department of Defense contracts for qualified HUBZone small 
business concerns, small business concerns owned and controlled by 
service-disabled veterans, small business concerns owned and controlled 
by socially and economically disadvantaged individuals, small business 
concerns owned and controlled by veterans, and small business con-
cerns owned and controlled by women. 
(2) BROAD RANGE OF SUPPLIES AND SERVICES.—In selecting the 
contracting activities to undertake demonstration projects, the Sec-
retary of Defense shall take such action as is necessary to ensure that 
a broad range of the supplies and services acquired by the Department 
of Defense are included in the test program. 
(3) CONSULTATION; PUBLIC COMMENT.—In developing the test pro-
gram, the Secretary of Defense shall— 
(A) consult with the Administrator; and 
(B) provide an opportunity for public comment on the test pro-
gram. 
(b) COMPREHENSIVE SMALL BUSINESS SUBCONTRACTING PLAN.— 
(1) IN GENERAL.—In a demonstration project under the test pro-
gram, the Secretary of a military department or head of a defense 
agency shall negotiate, monitor, and enforce compliance with a com-
prehensive subcontracting plan with a Department of Defense con-
tractor described in paragraph (4). 
(2) SCOPE.—The comprehensive subcontracting plan of a con-
tractor— 
(A) shall apply to the entire business organization of the con-
tractor or to 1 or more of the contractor’s divisions or operating 
elements, as specified in the subcontracting plan; and 
(B) shall cover each Department of Defense contract that is en-
tered into by the contractor and each subcontract that is entered 
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into by the contractor as the subcontractor under a Department 
of Defense contract. 
(3) REPORT.—Each comprehensive subcontracting plan of a con-
tractor shall require that the contractor report to the Secretary of De-
fense semiannually the following: 
(A) The dollar amount of subcontracts awarded to 1st tier sub-
contractors during the 6-month period covered by the report to 
qualified HUBZone small business concerns, small business con-
cerns owned and controlled by service-disabled veterans, small 
business concerns owned and controlled by socially and economi-
cally disadvantaged individuals, small business concerns owned 
and controlled by veterans, and small business concerns owned and 
controlled by women, with the information set forth separately— 
(i) by North American Industrial Classification System 
code; 
(ii) by major defense acquisition program (as defined in 
section 2430(a) of title 10); 
(iii) by contract, if— 
(I) the contract is for the maintenance, overhaul, re-
pair, servicing, rehabilitation, salvage, modernization, or 
modification of supplies, systems, or equipment; and 
(II) the total value of the contract, including options, 
exceeds $100,000,000; and 
(iv) by military department. 
(B) The total number of subcontracts active under the test pro-
gram during the 6-month period covered by the report that, but 
for this section, would have required a subcontracting plan under 
section 243103 of this title. 
(C) The amount of costs incurred during the 6-month period 
covered by the report in negotiating, complying with, and report-
ing on comprehensive subcontracting plans. 
(D) The amount of costs avoided during the 6-month period 
covered by the report by adoption of a comprehensive subcon-
tracting plan. 
(4) DEPARTMENT
OF
DEFENSE
CONTRACTOR.—A Department of 
Defense contractor referred to in paragraph (1) is, with respect to a 
comprehensive subcontracting plan negotiated in any fiscal year, a 
business concern that, during the immediately preceding fiscal year, 
furnished the Department of Defense with goods or services (including 
professional services, research and development services, and construc-
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tion services) under at least 3 Department of Defense contracts having 
an aggregate value of at least $100,000,000. 
(c) WAIVER OF CERTAIN SUBCONTRACTING PLAN REQUIREMENTS.—A 
Department of Defense contractor is not required to negotiate or submit a 
subcontracting plan under section 243103 of this title with respect to a De-
partment of Defense contract if— 
(1) the contractor has negotiated a comprehensive subcontracting 
plan under the test program that includes the matters specified in sec-
tion 243103(d) of this title; 
(2) such matters have been determined to be acceptable by the Sec-
retary of the military department or head of a Defense Agency negoti-
ating the comprehensive subcontracting plan; and 
(3) the comprehensive subcontracting plan applies to the contract. 
(d) FAILURE TO MAKE GOOD FAITH EFFORT TO COMPLY WITH COM-
PREHENSIVE SUBCONTRACTING PLAN.— 
(1) IN GENERAL.—A contractor that has negotiated a comprehensive 
subcontracting plan under the test program shall be subject to section 
243105 of this title regarding the assessment of liquidated damages for 
failure to make a good faith effort to comply with the contractor’s com-
prehensive subcontracting plan and the goals specified in the plan. 
(2) FAILURE A FACTOR TO BE CONSIDERED AS PART OF EVALUA-
TION OF PAST PERFORMANCE.—A failure by a contractor to make a 
good faith effort to comply with the contractor’s comprehensive subcon-
tracting plan and the goals specified in the plan shall be a factor to 
be considered as part of the evaluation of past performance of an offer-
or. 
(3) EVALUATION OF PAST PERFORMANCE.—In each fiscal year in 
which the test program is in effect, the Secretary of Defense shall re-
port to Congress on any negotiated comprehensive subcontracting plan 
that the Secretary determines did not meet the subcontracting goals 
negotiated in the comprehensive subcontracting plan for the prior fiscal 
year. 
(e) REPORT.—Not later than September 30, 2015, the Comptroller Gen-
eral shall submit to the Committee on Armed Services and Committee on 
Small Business of the House of Representatives and the Committee on 
Armed Services and Committee on Small Business and Entrepreneurship of 
the Senate a report on the results of the test program. 
(f) TERMINATION.—The test program shall terminate on December 31, 
2027. 
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§ 491104. Coordination of Federal assistance for small busi-
ness concerns adversely affected by NAFTA 
The Administrator shall coordinate Federal assistance to provide coun-
seling to small business concerns adversely affected by the North American 
Free Trade Agreement. 
§ 491105. Disaster aid to major sources of employment 
(a) IN GENERAL.—The Administrator may provide any nonagricultural 
enterprise that has constituted a major source of employment in an area 
suffering a major disaster and that is no longer in substantial operation as 
a result of the disaster a loan in such amount as is necessary to enable the 
enterprise to resume operations in order to assist in restoring the economic 
viability of the disaster area. 
(b) LOAN AMOUNT.—A loan under this section shall be made without re-
gard to any limitation on the amount of a loan that may otherwise be im-
posed by any other provision of law (including a regulation). 
(c) ADDITIONAL ASSISTANCE.—Assistance under this section shall be in 
addition to any other Federal disaster assistance, except that such other as-
sistance may be adjusted or modified to the extent that the Under Secretary 
of Emergency Preparedness and Response considers appropriate. 
(d) INTEREST.—A loan made under this section shall bear interest at a 
rate determined by the Secretary of the Treasury, taking into consideration 
the current average market yield on outstanding marketable obligations of 
the United States with remaining periods to maturity of 10 to 12 years, 
reduced by not to exceed 2 percent per year. In no event shall a loan made 
under this section bear interest at a rate in excess of 6 percent per year. 
(e) DEFERRAL OF PAYMENT OF PRINCIPAL AND INTEREST.—The Presi-
dent, if the President considers it necessary, may defer payments of prin-
cipal and interest on a loan under this section for a period not to exceed 
3 years after the date of the loan. Any such deferred payments shall bear 
interest at the rate determined under subsection (d). 
§ 491106. Background check policy; fingerprinting 
The Administrator shall not require fingerprints to be obtained for back-
ground check purposes from any participant in any SBA program who is 
serving on a voluntary basis and without compensation unless the Adminis-
trator has reasonable grounds to believe that the participant’s record or 
background is such as to make the participant ineligible to participate in 
the program. 
§ 491107. Expedited resolution of contract dispute matters 
(a) REQUIRED FAR PROVISION.—The Federal Acquisition Regulation 
shall include provisions that require a contracting officer— 
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(1) to make every reasonable effort to respond in writing within 30 
days to any written request made to a contracting officer with respect 
to a matter relating to the administration of a contract that is received 
from a small business concern; and 
(2) if the contracting officer is unable to reply within the 30-day pe-
riod, to transmit to the contractor within that period a written notifica-
tion of a specific date by which the contracting officer expects to re-
spond. 
(b) APPLICABILITY.—The provision required under subsection (a) shall 
not apply to a request for a contracting officer’s decision under chapter 71 
of title 41. 
(c) EFFECT OF SECTION.—This section does not create any right under 
chapter 71 of title 41. 
§ 491108. Small Business Procurement Advisory Council 
(a) ESTABLISHMENT.—There is established an interagency council to be 
known as the Small Business Procurement Advisory Council (referred to in 
this section as the ‘‘Council’’). 
(b) DUTIES.—The duties of the Council are— 
(1) to develop positions on proposed procurement regulations affect-
ing the small business community; 
(2) to submit comments reflecting such positions to appropriate reg-
ulatory authorities; 
(3) to conduct reviews of the Office of Small and Disadvantaged 
Business Utilization of each Federal agency to determine the compli-
ance of each Office with requirements under section 251109 of this 
title; and 
(4) to identify best practices for maximizing small business utiliza-
tion in Federal contracting that may be implemented by Federal agen-
cies having procurement powers. 
(c) MEMBERSHIP.—The Council shall be composed of the following mem-
bers: 
(1) The Administrator (or a designee of the Administrator). 
(2) The Director of the Minority Business Development Agency. 
(3) The Director of Small and Disadvantaged Business Utilization 
of each procuring agency. 
(d) CHAIRMAN.—The Council shall be chaired by the Administrator (or 
a designee of the Administrator). 
(e) MEETINGS.—The Council shall meet at the call of the chairman as 
necessary to consider proposed procurement regulations affecting the small 
business community. 
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534 
(f) CONSIDERATION OF COUNCIL COMMENTS.—The Federal Acquisition 
Regulatory Council and other appropriate regulatory authorities shall con-
sider comments submitted in a timely manner under subsection (b)(2). 
(g) ANNUAL REPORT.—The Council shall submit to the Committee on 
Small Business of the House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate an annual report that 
describes— 
(1) the comments submitted under subsection (b)(2) during the 1- 
year period ending on the date on which the report is submitted, in-
cluding any outcomes related to the comments; 
(2) the results of reviews conducted under subsection (b)(3) during 
the 1-year period; and 
(3) best practices identified under subsection (b)(4) during the 1- 
year period. 
§ 491109. Small business energy efficiency 
(a) DEFINITIONS.—In this section: 
(1) DISABILITY.—The term ‘‘disability’’ has the meaning given the 
term in section 3 of the Americans with Disabilities Act of 1990 (42 
U.S.C. 12102). 
(2) EFFICIENCY PROGRAM.—the term ‘‘efficiency program’’ means 
the small business energy efficiency program established under sub-
section (c). 
(3) ELECTRIC UTILITY.—The term ‘‘electric utility’’ has the meaning 
given the term in section 3 of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2602). 
(4) GOVERNMENTWIDE PROGRAM.—The term ‘‘Governmentwide pro-
gram’’ means the program established under subsection (b). 
(5) HIGH-PERFORMANCE GREEN BUILDING.—The term ‘‘high-per-
formance green building’’ has the meaning given the term in section 
401 of the Energy Independence and Security Act of 2007 (42 U.S.C. 
17061). 
(6) ON-BILL FINANCING.—The term ‘‘on-bill financing’’ means a low 
interest or no interest financing agreement between a small business 
concern and an electric utility for the purchase or installation of equip-
ment under which— 
(A) the regularly scheduled payment of the small business con-
cern to the electric utility is not reduced by the amount of the re-
duction in cost attributable to the new equipment; and 
(B) that amount is credited to the electric utility until the cost 
of the purchase or installation is repaid. 
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