BUSINESS.—The President shall in-
clude the information required by sub-
clause (II) in each annual report to 
the Congress on the state of small 
business prepared pursuant to section 
303(a) of the Small Business Eco-
nomic Policy Act of 1980 (15 U.S.C. 
631b(a)).’’. 
(c) FEE WAIVERS.—Section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)) is amended by adding at the 
end the following: 
‘‘(38) FEE WAIVERS.—The Administrator may 
not collect an origination fee or a guarantee fee de-
scribed in paragraph (18) in connection with a loan 
made under this subsection to an emerging business 
enterprise, unless— 
‘‘(A) the President’s budget for the upcom-
ing fiscal year, submitted to Congress pursuant 
to section 1105(a) of title 31, United States 
Code, includes a cost for the program estab-
lished under this paragraph that is above zero; 
and 
‘‘(B) the Administrator determines car-
rying out this paragraph will have no adverse 
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effect on the waivers provided under paragraph 
(31)(G) or (33)(E)(ii) for a fiscal year. 
‘‘(39) EMERGING BUSINESS ENTERPRISES.— 
‘‘(A) REPORTS.—On the date that is 1 
year after the end of the first fiscal year for 
which a guaranteed loan is made to an emerg-
ing business enterprise under this subsection, 
and annually thereafter, each lender making 
such a loan shall submit to the Administrator 
a report with respect to the preceding fiscal 
year on the total number and dollar amount of 
such loans made and the number of waivers 
issued under paragraph (38). 
‘‘(B) VERIFICATION.—A lender shall verify 
with the Administrator the status of a concern 
as an emerging business enterprise before mak-
ing a loan guaranteed under this subsection to 
such emerging business enterprise. 
‘‘(C) PENALTY.—If a concern received a 
loan under this subsection and fraudulently 
misrepresented the status of the concern as an 
emerging business enterprise, that concern 
shall— 
‘‘(i) repay the amount of the loan to 
the lender (from which amount the lender 
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shall repay the amount of any guarantee 
paid on the loan to the Administrator); 
and 
‘‘(ii) pay a fine to the Administrator 
in an amount determined by the Adminis-
trator.’’. 
SEC. 3. RULEMAKING. 
(a) IN GENERAL.—Not later 1 year after the date 
of enactment of this subsection and for each industry cat-
egory for which the Administrator of the Small Business 
Administration established a size standard under section 
3(a) of the Small Business Act (15 U.S.C. 632(a)), the 
Administrator shall issue a rule— 
(1) establishing procedures for designating a 
small business concern in each such industry cat-
egory as an emerging business enterprise that in-
clude the criteria under subsection (gg)(3) of section 
3 of the Small Business Act (15 U.S.C. 632), as 
added by this Act, and a process for appealing des-
ignation decisions of the Administrator; 
(2) establishing procedures for certification by 
the Administrator as an emerging business enter-
prise; 
(3) requiring a small business concern to annu-
ally submit documentation to the Administrator to 
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establish eligibility for designation as an emerging 
business enterprise; and 
(4) establishing compliance requirements for 
emerging business enterprises. 
(b) DEFINITIONS.—In this section: 
(1) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
under section 3 of the Small Business Act (15 
U.S.C. 632). 
(2) EMERGING
BUSINESS
ENTERPRISE.—The 
term ‘‘emerging business enterprise’’ has the mean-
ing given under subsection (gg) of section 3 of the 
Small Business Act (15 U.S.C. 632), as added by 
this Act. 
Æ 
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