II
Calendar No. 254
106TH CONGRESS
1ST SESSION
H. R. 1568
[Report No. 106–136]
IN THE SENATE OF THE UNITED STATES
JUNE 30, 1999
Received; read twice and referred to the Committee on Small Business
AUGUST 4, 1999
Reported by Mr. BOND, with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
AN ACT
To provide technical, financial, and procurement assistance
to veteran owned small businesses, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Veterans Entrepre-
neurship and Small Business Development Act of 1999’’.
SEC. 2. TABLE OF CONTENTS.
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—GENERAL PROVISIONS
Sec. 101. Findings.
Sec. 102. Purpose.
Sec. 103. Definitions.
TITLE II—VETERANS BUSINESS DEVELOPMENT
Sec. 201. Veterans business development in the Small Business Administration.
Sec. 202. National Veterans Business Development Corporation.
Sec. 203. Advisory Committee on Veterans Business Affairs.
TITLE III—TECHNICAL ASSISTANCE
Sec. 301. SCORE program.
Sec. 302. Entrepreneurial assistance.
Sec. 303. Business development and management assistance for military reserv-
ists’ small businesses.
TITLE IV—FINANCIAL ASSISTANCE
Sec. 401. General business loan program.
Sec. 402. Assistance to active duty military reservists.
Sec. 403. Microloan program.
Sec. 404. Delta loan program.
Sec. 405. State development company program.
TITLE V—PROCUREMENT ASSISTANCE
Sec. 501. Subcontracting.
Sec. 502. Participation in Federal procurement.
TITLE VI—REPORTS AND DATA COLLECTION
Sec. 601. Reporting requirements.
Sec. 602. Report on small business and competition.
Sec. 603. Annual report of the Administrator.
Sec. 604. Data and information collection.
TITLE VII—MISCELLANEOUS PROVISIONS
Sec. 701. Administrator’s order.
Sec. 702. Small Business Administration Office of Advocacy.
Sec. 703. Study of fixed-asset small business loans.
TITLE I—GENERAL PROVISIONS
SEC. 101. FINDINGS.
Congress finds the following:
(1)
Veterans
of
the
United
States
Armed
Forces have been and continue to be vital to the
small business enterprises of the United States.
(2) In serving the United States, veterans often
faced great risks to preserve the American dream of
freedom and prosperity.
(3) The United States has done too little to as-
sist veterans, particularly service-disabled veterans,
in playing a greater role in the economy of the
United States by forming and expanding small busi-
ness enterprises.
(4) Medical advances and new medical tech-
nologies have made it possible for service-disabled
veterans to play a much more active role in the for-
mation and expansion of small business enterprises
in the United States.
(5) The United States must provide additional
assistance and support to veterans to better equip
them to form and expand small business enterprises,
thereby
enabling
them
to
realize
the
American
dream that they fought to protect.
SEC. 102. PURPOSE.
The purpose of this Act is to expand existing and es-
tablish new assistance programs for veterans who own or
operate small businesses. This Act accomplishes this pur-
pose by—
(1) expanding the eligibility for certain small
business assistance programs to include veterans;
(2) directing certain departments and agencies
of the United States to take actions that enhance
small business assistance to veterans; and
(3) establishing new institutions to provide
small business assistance to veterans or to support
the institutions that provide such assistance.
SEC. 103. DEFINITIONS.
(a) SMALL BUSINESS ACT.—Section 3 of the Small
Business Act (15 U.S.C. 632) is amended by adding at
the end the following:
‘‘(q) DEFINITIONS RELATING
TO VETERANS.—In
this Act, the following definitions apply:
‘‘(1) SERVICE-DISABLED VETERAN.—The term
‘service-disabled veteran’ means a veteran with a
disability that is service-connected (as defined in sec-
tion 101(16) of title 38, United States Code).
‘‘(2) SMALL BUSINESS CONCERN OWNED AND
CONTROLLED
BY
SERVICE-DISABLED
VETERANS.—
The term ‘small business concern owned and con-
trolled by service-disabled veterans’ means a small
business concern—
‘‘(A) not less than 51 percent of which is
owned by one or more service-disabled veterans
or, in the case of any publicly owned business,
not less than 51 percent of the stock of which
is owned by one or more service-disabled vet-
erans; and
‘‘(B) the management and daily business
operations of which are controlled by one or
more service-disabled veterans or, in the case of
a veteran with permanent and severe disability,
the spouse or permanent caregiver of such vet-
eran.
‘‘(3) SMALL BUSINESS CONCERN OWNED AND
CONTROLLED BY VETERANS.—The term ‘small busi-
ness concern owned and controlled by veterans’
means a small business concern—
‘‘(A) not less than 51 percent of which is
owned by one or more veterans or, in the case
of any publicly owned business, not less than 51
percent of the stock of which is owned by one
or more veterans; and
‘‘(B) the management and daily business
operations of which are controlled by one or
more veterans.
‘‘(4) VETERAN.—The term ‘veteran’ has the
meaning given the term in section 101(2) of title 38,
United States Code.’’.
(b) APPLICABILITY TO THIS ACT.—In this Act, the
definitions contained in section 3(q) of the Small Business
Act, as added by this section, apply.
TITLE II—VETERANS BUSINESS
DEVELOPMENT
SEC.
201.
VETERANS
BUSINESS
DEVELOPMENT
IN
THE
SMALL BUSINESS ADMINISTRATION.
(a) IN GENERAL.—Section 4(b)(1) of the Small Busi-
ness Act (15 U.S.C. 633(b)(1)) is amended—
(1) in the fifth sentence, by striking ‘‘four Asso-
ciate Administrators’’ and inserting ‘‘five Associate
Administrators’’; and
(2) by inserting after the fifth sentence the fol-
lowing: ‘‘One such Associate Administrator shall be
the Associate Administrator for Veterans Business
Development, who shall administer the Office of Vet-
erans Business Development established under sec-
tion 32.’’.
(b) OFFICE
OF VETERANS BUSINESS DEVELOP-
MENT; ASSOCIATE ADMINISTRATOR.—The Small Business
Act (15 U.S.C. 631 et seq.) is further amended—
(1) by redesignating section 32 as section 34;
and
(2) by inserting after section 31 the following:
‘‘SEC. 32. VETERANS PROGRAMS.
‘‘(a) OFFICE
OF VETERANS BUSINESS DEVELOP-
MENT.—There is established in the Administration an Of-
fice of Veterans Business Development, which shall be ad-
ministered by the Associate Administrator for Veterans
Business Development (in this section referred to as the
‘Associate
Administrator’)
appointed
under
section
4(b)(1).
‘‘(b) ASSOCIATE ADMINISTRATOR
FOR VETERANS
BUSINESS
DEVELOPMENT.—The
Associate
Administrator—
‘‘(1) shall be an appointee in the Senior Execu-
tive Service;
‘‘(2) shall be responsible for the formulation,
execution, and promotion of policies and programs of
the Administration that provide assistance to small
business concerns owned and controlled by veterans
and small business concerns owned and controlled by
service-disabled veterans. The Associate Adminis-
trator shall act as an ombudsman for full consider-
ation of veterans in all programs of the Administra-
tion; and
‘‘(3) shall report to and be responsible directly
to the Administrator.’’.
SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT
CORPORATION.
The Small Business Act (15 U.S.C. 631 et seq.) is
further amended by adding after section 32 (as added by
this Act) the following:
‘‘SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT
CORPORATION.
‘‘(a) ESTABLISHMENT.—There is established a feder-
ally chartered corporation to be known as the National
Veterans Business Development Corporation (in this sec-
tion referred to as the ‘Corporation’) which shall be incor-
porated under the laws of the District of Columbia and
which shall have the powers granted in this section.
‘‘(b) PURPOSES OF THE CORPORATION.—The pur-
poses of the Corporation shall be—
‘‘(1) to expand the provision of and improve ac-
cess to technical assistance regarding entrepreneur-
ship for the Nation’s veterans; and
‘‘(2) to assist veterans, including service-dis-
abled veterans, with the formation and expansion of
small business concerns by working with and orga-
nizing public and private resources, including those
of the Small Business Administration, the Depart-
ment of Veterans Affairs, the Department of Labor,
the Department of Commerce, the Department of
Defense, the Service Corps of Retired Executives
(described in section 8(b)(1)(B) of this Act), the
Small Business Development Centers (described in
section 21 of this Act), and the business develop-
ment staffs of each department and agency of the
United States.
‘‘(c) BOARD OF DIRECTORS.—
‘‘(1) IN
GENERAL.—The management of the
Corporation shall be vested in a Board of Directors
composed of nine voting members and three non-
voting ex officio members.
‘‘(2) APPOINTMENT
OF
VOTING
MEMBERS.—
The President shall appoint United States citizens
to be voting members of the Board of Directors as
follows:
‘‘(A) One from a list of individuals nomi-
nated by the chairman of the Committee on
Small Business of the House of Representa-
tives.
‘‘(B) One from a list of individuals nomi-
nated by the chairman of the Committee on
Small Business of the Senate.
‘‘(C) One from a list of individuals nomi-
nated by the ranking minority member of the
Committee on Small Business of the House of
Representatives.
‘‘(D) One from a list of individuals nomi-
nated by the ranking minority members of the
Committee on Small Business of the Senate.
‘‘(E) One from a list of individuals nomi-
nated by the chairman of the Committee on
Veterans’ Affairs of the House of Representa-
tives.
‘‘(F) One from a list of individuals nomi-
nated by the chairman of the Committee on
Veterans’ Affairs of the Senate.
‘‘(G) One from a list of individuals nomi-
nated by the ranking minority member of the
Committee on Veterans’ Affairs of the House of
Representatives.
‘‘(H) One from a list of individuals nomi-
nated the ranking minority member of the
Committee on Veterans’ Affairs of the Senate.
‘‘(I) One of the President’s own choosing.
‘‘(3) EX
OFFICIO
MEMBERS.—The Adminis-
trator of the Small Business Administration, the
Secretary of Defense, and the Secretary of Veterans
Affairs shall serve as the nonvoting ex officio mem-
bers of the Board of Directors.
‘‘(4)
CHAIRPERSON.—The
members
of
the
Board of Directors appointed under paragraph (2)
shall elect one such member to serve as chairperson
of the Board of Directors for a term of 2 years.
‘‘(5) TERMS OF APPOINTED MEMBERS.—
‘‘(A) IN GENERAL.—Each member of the
Board of Directors appointed under paragraph
(2) shall serve a term of 6 years, except as pro-
vided in subparagraph (B).
‘‘(B) TERMS OF INITIAL APPOINTEES.—As
designated by the President at the time of ap-
pointment, of the members first appointed—
‘‘(i) three shall be for a term of 2
years; and
‘‘(ii) three shall be for a term of 4
years.
‘‘(C) UNEXPIRED TERMS.—Any member of
the Board of Directors appointed to fill a va-
cancy occurring before the expiration of the
term for which the member’s predecessor was
appointed shall be appointed only for the re-
mainder of the term. A member may serve after
the expiration of that member’s term until a
successor has taken office.
‘‘(6) VACANCIES.—Any vacancy on the Board
of Directors shall be filled in the manner in which
the original appointment was made. In the case of
a vacancy in the office of the Administrator of the
Small Business Administration or the Secretary of
Veterans Affairs, and pending the appointment of a
successor, an acting appointee for such vacancy may
serve as an ex officio member.
‘‘(7) INELIGIBILITY FOR OTHER OFFICES.—No
voting member of the Board of Directors may be an
officer or employee of the United States while serv-
ing as a member of the Board of Directors or during
the 2-year period preceding such service.
‘‘(8)
IMPARTIALITY
AND
NONDISCRIMINA-
TION.—The Board of Directors shall administer the
affairs of the Corporation fairly and impartially and
without discrimination.
‘‘(9)
OBLIGATIONS
AND
EXPENSES.—The
Board of Directors shall prescribe the manner in
which the obligations of the Corporation may be in-
curred and in which its expenses shall be allowed
and paid.
‘‘(10) QUORUM.—Five voting members of the
Board of Directors shall constitute a quorum, but a
lesser number may hold hearings.
‘‘(d) CORPORATE POWERS.—On October 1, 1999, the
Corporation shall become a body corporate and as such
shall have the authority to do the following:
‘‘(1) To adopt and use a corporate seal.
‘‘(2) To have succession until dissolved by an
Act of Congress.
‘‘(3) To make contracts or grants.
‘‘(4) To sue and be sued, and to file and defend
against lawsuits in State or Federal court.
‘‘(5) To appoint, through the actions of its
Board of Directors, officers and employees of the
Corporation, to define their duties and responsibil-
ities, fix their compensations, and to dismiss at will
such officers or employees.
‘‘(6) To prescribe, through the actions of its
Board of Directors, bylaws not inconsistent with
Federal law and the law of the State of incorpora-
tion, regulating the manner in which its general
business may be conducted and the manner in which
the privileges granted to it by law may be exercised.
‘‘(7) To exercise, through the actions of its
Board of Directors or duly authorized officers, all
powers specifically granted by the provisions of this
section, and such incidental powers as shall be nec-
essary.
‘‘(8) To solicit, receive, and disburse funds from
private, Federal, State and local organizations.
‘‘(9) To accept and employ or dispose of in fur-
therance of the purposes of this section any money
or property, real, personal, or mixed, tangible or in-
tangible, received by gift, devise, bequest, or other-
wise.
‘‘(10) To accept voluntary and uncompensated
services.
‘‘(e) CORPORATE FUNDS.—
‘‘(1) DEPOSIT OF FUNDS.—The Board of Di-
rectors shall deposit all funds of the Corporation in
federally chartered and insured depository institu-
tions until such funds are disbursed under para-
graph (2).
‘‘(2) DISBURSEMENT OF FUNDS.—Funds of the
Corporation may be disbursed only for purposes that
are—
‘‘(A) approved by the Board of Directors
by a recorded vote with a quorum present; and
‘‘(B) in accordance with the purposes of
the Corporation as specified in subsection (b).
‘‘(f) NETWORK OF INFORMATION AND ASSISTANCE
CENTERS.—In carrying out the purpose described in sub-
section (b), the Corporation shall establish and maintain
a network of information and assistance centers for use
by veterans and the public.
‘‘(g) ANNUAL REPORT.—On or before October 1 of
each year, the Board of Directors shall transmit a report
to the President and the Congress describing the activities
and accomplishments of the Corporation for the preceding
year and the Corporation’s findings regarding the efforts
of Federal, State and private organizations to assist vet-
erans in the formation and expansion of small business
concerns.
‘‘(h) ASSUMPTION OF DUTIES OF ADVISORY COM-
MITTEE.—On October 1, 2004, the Corporation estab-
lished under this section shall assume the duties, respon-
sibilities, and authority of the Advisory Committee on Vet-
erans Affairs established under section 203 of this Act.
‘‘(i) USE OF MAILS.—The Corporation may use the
United States mails in the same manner and under the
same conditions as the departments and agencies of the
United States.
‘‘(j)
PROFESSIONAL
CERTIFICATION
ADVISORY
BOARD.—
‘‘(1) IN GENERAL.—Acting through the Board
of Directors, the Corporation shall establish a Pro-
fessional Certification Advisory Board to create uni-
form guidelines and standards for the professional
certification of members of the Armed Services to
aid in their efficient and orderly transition to civilian
occupations and professions and to remove potential
barriers in the areas of licensure and certification.
‘‘(2) MEMBERSHIP.—The members of the Advi-
sory Board shall serve without compensation, shall
meet in the District of Columbia no less than quar-
terly, and shall be appointed by the Board of Direc-
tors as follows:
‘‘(A)
PRIVATE
SECTOR
MEMBERS.—The
Corporation shall appoint not less than seven
members for terms of 2 years to represent pri-
vate sector organizations and associations, in-
cluding the American Association of Community
Colleges, the Society for Human Resource Man-
agers, the Coalition for Professional Certifi-
cation, the Council on Licensure and Enforce-
ment, and the American Legion.
‘‘(B)
PUBLIC
SECTOR
MEMBERS.—The
Corporation shall invite public sector members
to serve at the discretion of their departments
or agencies and shall—
‘‘(i) encourage the participation of the
Under Secretary of Defense for Personnel
and Readiness;
‘‘(ii) encourage the participation of
two
officers
from
each
branch
of
the
Armed Forces to represent the Training
Commands of their branch; and
‘‘(iii) seek the participation and guid-
ance of the Assistant Secretary of Labor
for Veterans’ Employment and Training.
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to the Corporation to carry out this
section the following amounts:
‘‘(A) $2,000,000 for fiscal year 2000;
‘‘(B) $4,000,000 for fiscal year 2001;
‘‘(C) $4,000,000 for fiscal year 2002; and
‘‘(D) $2,000,000 for fiscal year 2003.
‘‘(2) PRIVATIZATION.—The Corporation shall
institute and implement a plan to raise private funds
and become a self-sustaining corporation.’’.
SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS
AFFAIRS.
(a) IN GENERAL.—There is established an advisory
committee to be known as the ‘‘Advisory Committee on
Veterans Business Affairs’’ (in this section referred to as
the ‘‘Committee’’), which shall serve as an independent
source of advice and policy recommendations to—
(1) the Administrator of the Small Business
Administration (in this section referred to as the
‘‘Administrator’’);
(2) the Associate Administrator for Veterans
Business Development of the Small Business Admin-
istration;
(3) the Congress;
(4) the President; and
(5) other United States policymakers.
(b) MEMBERSHIP.—
(1) IN
GENERAL.—The Committee shall be
composed of 15 members, of whom—
(A) eight shall be veterans who are owners
of small business concerns (within the meaning
of the term under section 3 of the Small Busi-
ness Act (15 U.S.C. 632)); and
(B) seven shall be representatives of vet-
erans organizations.
(2) APPOINTMENT.—
(A) IN
GENERAL.—The members of the
Committee shall be appointed by the Adminis-
trator in accordance with this section.
(B) INITIAL
APPOINTMENTS.—Not later
than 90 days after the date of enactment of
this Act, the Administrator shall appoint the
initial members of the Committee.
(3) POLITICAL AFFILIATION.—Not more than
eight members of the Committee shall be of the
same political party as the President.
(4)
PROHIBITION
ON
FEDERAL
EMPLOY-
MENT.—
(A) IN GENERAL.—Except as provided in
subsection (B), no member of the Committee
may serve as an officer or employee of the
United States.
(B) EXCEPTION.—A member of the Com-
mittee who accepts a position as an officer or
employee of the United States after the date of
the member’s appointment to the Committee
may continue to serve on the Committee for not
more than 30 days after such acceptance.
(5) TERM OF SERVICE.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), the term of service of each member
of the Committee shall be 3 years.
(B) TERMS OF INITIAL APPOINTEES.—As
designated by the Administrator at the time of
appointment, of the members first appointed—
(i) six shall be appointed for a term of
4 years; and
(ii) five shall be appointed for a term
of 5 years.
(6) VACANCIES.—The Administrator shall fill
any vacancies on the membership of the Committee
not later than 30 days after the date on which such
vacancy occurs.
(7) CHAIRPERSON.—
(A) IN
GENERAL.—The members of the
Committee shall elect one of the members to be
Chairperson of the Committee.
(B)
VACANCIES
IN
OFFICE
OF
CHAIR-
PERSON.—Any vacancy in the office of the
Chairperson of the Committee shall be filled by
the Committee at the first meeting of the Com-
mittee following the date on which the vacancy
occurs.
(c) DUTIES.—The duties of the Committee shall be
the following:
(1) Review, coordinate, and monitor plans and
programs developed in the public and private sec-
tors, that affect the ability of small business con-
cerns owned and controlled by veterans to obtain
capital and credit and to access markets.
(2) Promote the collection of business informa-
tion and survey data as they relate to veterans and
small business concerns owned and controlled by vet-
erans.
(3) Monitor and promote plans, programs, and
operations of the departments and agencies of the
United States that may contribute to the formation
and growth of small business concerns owned and
controlled by veterans.
(4) Develop and promote initiatives, policies,
programs, and plans designed to foster small busi-
ness concerns owned and controlled by veterans.
(5) In cooperation with the National Veterans
Business Development Corporation, develop a com-
prehensive plan, to be updated annually, for joint
public-private sector efforts to facilitate growth and
development of small business concerns owned and
controlled by veterans.
(d) POWERS.—
(1) HEARINGS.—Subject to subsection (e), the
Committee may hold such hearings, sit and act at
such times and places, take such testimony, and re-
ceive such evidence as the Committee considers ad-
visable to carry out its duties.
(2) INFORMATION FROM FEDERAL AGENCIES.—
Upon request of the Chairperson of the Committee,
the head of any department or agency of the United
States shall furnish such information to the Com-
mittee as the Committee considers to be necessary to
carry out its duties.
(3) USE OF MAILS.—The Committee may use
the United States mails in the same manner and
under the same conditions as other departments and
agencies of the United States.
(4) GIFTS.—The Committee may accept, use,
and dispose of gifts or donations of services or prop-
erty.
(e) MEETINGS.—
(1) IN GENERAL.—The Committee shall meet,
not less than three times per year, at the call of the
Chairperson or at the request of the Administrator.
(2) LOCATION.—Each meeting of the full Com-
mittee shall be held at the headquarters of the Small
Business Administration located in Washington, Dis-
trict of Columbia. The Administrator shall provide
suitable meeting facilities and such administrative
support as may be necessary for each full meeting
of the Committee.
(3) TASK GROUPS.—The Committee may, from
time to time, establish temporary task groups as
may be necessary in order to carry out its duties.
(f) COMPENSATION AND EXPENSES.—
(1) NO COMPENSATION.—Members of the Com-
mittee shall serve without compensation for their
service to the Committee.
(2) EXPENSES.—The members of the Com-
mittee shall be reimbursed for travel and subsistence
expenses in accordance with section 5703 of title 5,
United States Code.
(g) REPORT.—Not later than 30 days after the end
of each fiscal year beginning after the date of enactment
of this section, the Committee shall transmit to the Con-
gress and the President a report describing the activities
of the Committee and any recommendations developed by
the Committee for the promotion of small business con-
cerns owned and controlled by veterans.
(h) TERMINATION.—The Committee shall terminate
its business on September 30, 2004.
TITLE III—TECHNICAL
ASSISTANCE
SEC. 301. SCORE PROGRAM.
(a) IN GENERAL.—The Administrator of the Small
Business Administration shall enter into a memorandum
of understanding with the Service Core of Retired Execu-
tives (described in section 8(b)(1)(B) of the Small Busi-
ness Act (15 U.S.C. 637(b)(1)(B)) and in this section re-
ferred to as ‘‘SCORE’’) to provide for the following:
(1) The appointment by SCORE in its national
office of an individual to act as National Veterans
Business Coordinator, whose duties shall relate ex-
clusively to veterans business matters, and who shall
be responsible for the establishment and administra-
tion of a program to coordinate counseling and
training
regarding
entrepreneurship
to
veterans
through the chapters of SCORE throughout the
United States.
(2) The assistance of SCORE in the estab-
lishing and maintaining a toll-free telephone number
and an Internet website to provide access for vet-
erans to information about the counseling and train-
ing regarding entrepreneurship available to veterans
through SCORE.
(3) The collection of statistics concerning serv-
ices provided by SCORE to veterans, including serv-
ice-disabled veterans, for inclusion in each annual
report published by the Administrator under section
4(b)(2)(B) of the Small Business Act (15 U.S.C.
633(b)(2)(B)).
(b) RESOURCES.—The Administrator shall provide to
SCORE such resources as the Administrator determines
necessary for SCORE to carry out the requirements of the
memorandum of understanding specified in paragraph (1).
SEC. 302. ENTREPRENEURIAL ASSISTANCE.
Not later than 180 days after the date of enactment
of this Act, the Secretary of Veterans Affairs, the Admin-
istrator of the Small Business Administration, and the
head of the association formed pursuant to section
21(a)(3)(A) of the Small Business Act (15 U.S.C.
648(a)(3)(A)) shall enter into a memorandum of under-
standing with respect to entrepreneurial assistance to vet-
erans, including service-disabled veterans, through Small
Business Development Centers (described in section 21 of
the Small Business Act (15 U.S.C. 648)) and facilities of
the Department of Veterans Affairs. Such assistance shall
include the following:
(1) Conducting of studies and research, and the
distribution of information generated by such studies
and research, on the formation, management, fi-
nancing, marketing, and operation of small business
concerns by veterans.
(2) Provision of training and counseling to vet-
erans concerning the formation, management, fi-
nancing, marketing, and operation of small business
concerns.
(3) Provision of management and technical as-
sistance to the owners and operators of small busi-
ness concerns regarding international markets, the
promotion of exports, and the transfer of technology.
(4) Provision of assistance and information to
veterans regarding procurement opportunities with
Federal, State, and local agencies, especially such
agencies funded in whole or in part with Federal
funds.
(5) Establishment of an information clearing-
house to collect and distribute information, including
by electronic means, on the assistance programs of
Federal, State, and local governments, and of the
private sector, including information on office loca-
tions, key personnel, telephone numbers, mail and
electronic addresses, and contracting and subcon-
tracting opportunities.
(6) Provision of Internet or other distance
learning academic instruction for veterans in busi-
ness subjects, including accounting, marketing, and
business fundamentals.
(7) Compilation of a list of small business con-
cerns owned and controlled by service-disabled vet-
erans that provide products or services that could be
procured by the United States and delivery of such
list to each department and agency of the United
States. Such list shall be delivered in hard copy and
electronic form and shall include the name and ad-
dress of each such small business concern and the
products or services that it provides.
SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT AS-
SISTANCE
FOR
MILITARY
RESERVISTS’
SMALL BUSINESSES.
(a) IN GENERAL.—Section 8 of the Small Business
Act (15 U.S.C. 637) is amended by adding at the end the
following:
‘‘(l) MANAGEMENT ASSISTANCE FOR SMALL BUSI-
NESSES AFFECTED BY MILITARY OPERATIONS.—The Ad-
ministration shall utilize, as appropriate, its entrepre-
neurial development and management assistance pro-
grams, including programs involving State or private sec-
tor partners, to provide business counseling and training
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—
‘‘(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
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
‘‘(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.
‘‘(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
‘‘(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;
‘‘(II) to pay its ordinary and nec-
essary operating expenses; or
‘‘(III) to market, produce, or provide
a product or service ordinarily marketed,
produced, or provided by the business con-
cern.
‘‘(B) The Administration may make such dis-
aster loans (either directly or in cooperation with
banks or other lending institutions through agree-
ments to participate on an immediate or deferred
basis) to assist a small business concern that has
suffered or that is likely to suffer substantial eco-
nomic injury as the result of an essential employee
of such small business concern being ordered to ac-
tive military duty during a period of military con-
flict.
‘‘(C) A small business concern described in sub-
paragraph (B) shall be eligible to apply for assist-
ance under this paragraph during the period begin-
ning on the date on which the essential employee is
ordered to active duty and ending on the date that
is 90 days after the date on which such essential
employee is discharged or released from active duty.
‘‘(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.
(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’’.
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:
(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
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
(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
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).’’.
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—
(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-
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:
‘‘(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
(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.—