IB
Union Calendar No. 142
105TH CONGRESS
1ST SESSION
H. R. 2261
[Report No. 105–246]
To reauthorize and amend the programs of the Small Business Act and
the Small Business Investment Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 25, 1997
Mr. TALENT (for himself and Mr. LAFALCE) introduced the following bill;
which was referred to the Committee on Small Business
SEPTEMBER 8, 1997
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on July 25, 1997]
A BILL
To reauthorize and amend the programs of the Small Busi-
ness Act and the Small Business Investment Act, 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; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Small Business Programs Reauthorization and Amend-
ments Acts of 1997’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
TITLE I—AUTHORIZATIONS
Sec. 101. Authorizations.
TITLE II—FINANCIAL PROGRAMS
Subtitle A—General Business Loans
Sec. 201. Securitization regulations.
Sec. 202. Background check of loan applicants.
Sec. 203. Report on increased lender approval, servicing, foreclosure, liquidation,
and litigation of 7(a) loans.
Sec. 204. Completion of planning for loan monitoring system.
Subtitle B—Certified Development Company Program
Sec. 221. Reauthorization of fees.
Sec. 222. PCLP participation
Sec. 223. PCLP eligibility.
Sec. 224. Loss reserves.
Sec. 225. Goals.
Sec. 226. Technical amendments.
Sec. 227. Promulgation of regulations.
Sec. 228. Technical amendment.
Sec. 229. Repeal.
Sec. 230. Loan servicing and liquidation.
Sec. 231. Use of proceeds.
Sec. 232. Lease of property.
Sec. 233. Seller financing.
Sec. 234. Preexisting conditions.
Subtitle C—Small Business Investment Company Program
Sec. 241. 5-year commitments.
Sec. 242. Program reform.
Sec. 243. Fees.
Sec. 244. Examination fees.
Subtitle D—Microloan Program
Sec. 251. Microloan program extension.
Sec. 252. Supplemental microloan grants
TITLE III—WOMEN’S BUSINESS ENTERPRISES
Sec. 301. Reports.
Sec. 302. Council duties.
Sec. 303. Council membership.
Sec. 304. Authorization of appropriations.
Sec. 305. Women’s business centers.
Sec. 306. Office of Women’s Business Ownership.
TITLE IV—COMPETITIVENESS PROGRAM
Sec. 401. Program term.
Sec. 402. Monitoring agency performance.
Sec. 403. Reports to Congress.
Sec. 404. Small business participation in dredging.
Sec. 405. Technical amendment.
TITLE V—MISCELLANEOUS PROVISIONS
Sec. 501. Small business development centers.
Sec. 502. Small business export promotion.
Sec. 503. Pilot preferred surety bond guarantee program extension.
Sec. 504. Very small business concerns.
Sec. 505. Extension of cosponsorship authority
Sec. 506. Trade assistance program for small business concerns harmed by
NAFTA.
TITLE I—AUTHORIZATIONS
SEC. 101. AUTHORIZATIONS.
Section 20 of the Small Business Act (15 U.S.C. 631
note) is amended by striking subsections (l) through (q) and
inserting the following:
‘‘(l) The following program levels are authorized for
fiscal year 1998:
‘‘(1) For the programs authorized by this Act,
the Administration is authorized to make—
‘‘(A) $40,000,000 in technical assistance
grants, as provided in section 7(m); and
‘‘(B) $60,000,000 in loans, as provided in
section 7(m).
‘‘(2) For the programs authorized by this Act,
the 
Administration 
is 
authorized 
to 
make
$15,040,000,000 in deferred participation loans and
other financings. Of such sum, the Administration is
authorized to make—
‘‘(A) $11,000,000,000 in general business
loans as provided in section 7(a);
‘‘(B) $3,000,000,000 in financings as pro-
vided in section 7(a)(13) of this Act and section
504 of the Small Business Investment Act of
1958;
‘‘(C) $1,000,000,000 in loans as provided in
section 7(a)(21); and
‘‘(D) $40,000,000 in loans as provided in
section 7(m).
‘‘(3) For the programs authorized by title III of
the Small Business Investment Act of 1958, the Ad-
ministration is authorized to make—
‘‘(A) $600,000,000 in purchases of partici-
pating securities; and
‘‘(B) $500,000,000 in guarantees of deben-
tures.
‘‘(4) For the programs authorized by part B of
title IV of the Small Business Investment Act of 1958,
the Administration is authorized to enter into guar-
antees not to exceed $2,000,000,000, of which not
more than $650,000,000 may be in bonds approved
pursuant to section 411(a)(3) of that Act.
‘‘(5) The Administration is authorized to make
grants or enter into cooperative agreements—
‘‘(A) for the Service Corps of Retired Execu-
tives program authorized by section 8(b)(1),
$4,000,000; and
‘‘(B) for activities of small business develop-
ment centers pursuant to section 21(c)(3)(G),
$15,000,000, to remain available until expended.
‘‘(m)(1) There are authorized to be appropriated to the
Administration for fiscal year 1998 such sums as may be
necessary to carry out this Act, including administrative
expenses and necessary loan capital for disaster loans pur-
suant to section 7(b), and to carry out the Small Business
Investment Act of 1958, including salaries and expenses of
the Administration.
‘‘(2) Notwithstanding paragraph (1), for fiscal year
1998—
‘‘(A) no funds are authorized to be provided to
carry out the loan program authorized by section
7(a)(21) except by transfer from another Federal de-
partment or agency to the Administration, unless the
program level authorized for general business loans
under subsection (l)(2)(A) is fully funded; and
‘‘(B) the Administration may not approve loans
on behalf of the Administration or on behalf of any
other department or agency, by contract or otherwise,
under terms and conditions other than those specifi-
cally authorized under this Act or the Small Business
Investment Act of 1958, except that it may approve
loans under section 7(a)(21) of this Act in gross
amounts of not more than $1,250,000.
‘‘(n) The following program levels are authorized for
fiscal year 1999:
‘‘(1) For the programs authorized by this Act,
the Administration is authorized to make—
‘‘(A) $60,000,000 in technical assistance
grants as provided in section 7(m); and
‘‘(B) $60,000,000 in loans, as provided in
section 7(m).
‘‘(2) For the programs authorized by this Act,
the 
Administration 
is 
authorized 
to 
make
$16,540,000,000 in deferred participation loans and
other financings. Of such sum, the Administration is
authorized to make—
‘‘(A) $12,000,000,000 in general business
loans as provided in section 7(a);
‘‘(B) $3,500,000,000 in financings as pro-
vided in section 7(a)(13) of this Act and section
504 of the Small Business Investment Act of
1958;
‘‘(C) $1,000,000,000 in loans as provided in
section 7(a)(21); and
‘‘(D) $40,000,000 in loans as provided in
section 7(m).
‘‘(3) For the programs authorized by title III of
the Small Business Investment Act of 1958, the Ad-
ministration is authorized to make—
‘‘(A) $700,000,000 in purchases of partici-
pating securities; and
‘‘(B) $650,000,000 in guarantees of deben-
tures.
‘‘(4) For the programs authorized by part B of
title IV of the Small Business Investment Act of 1958,
the Administration is authorized to enter into guar-
antees not to exceed $2,000,000,000, of which not
more than $650,000,000 may be in bonds approved
pursuant to section 411(a)(3) of that Act.
‘‘(5) The Administration is authorized to make
grants or enter cooperative agreements—
‘‘(A) for the Service Corps of Retired Execu-
tives program authorized by section 8(b)(1),
$4,500,000; and
‘‘(B) for activities of small business develop-
ment centers pursuant to section 21(c)(3)(G), not
to exceed $15,000,000, to remain available until
expended.
‘‘(o)(1) There are authorized to be appropriated to the
Administration for fiscal year 1999 such sums as may be
necessary to carry out this Act, including administrative
expenses and necessary loan capital for disaster loans pur-
suant to section 7(b), and to carry out the Small Business
Investment Act of 1958, including salaries and expenses of
the Administration.
‘‘(2) Notwithstanding paragraph (1), for fiscal year
1999—
‘‘(A) no funds are authorized to be provided to
carry out the loan program authorized by section
7(a)(21) except by transfer from another Federal de-
partment or agency to the Administration, unless the
program level authorized for general business loans
under subsection (n)(2)(A) is fully funded; and
‘‘(B) the Administration may not approve loans
on behalf of the Administration or on behalf of any
other department or agency, by contract or otherwise,
under terms and conditions other than those specifi-
cally authorized under this Act or the Small Business
Investment Act of 1958, except that it may approve
loans under section 7(a)(21) of this Act in gross
amounts of not more than $1,250,000.
‘‘(p) The following program levels are authorized for
fiscal year 2000:
‘‘(1) For the programs authorized by this Act,
the Administration is authorized to make—
‘‘(A) $75,000,000 in technical assistance
grants as provided in section 7(m); and
‘‘(B) $60,000,000 in direct loans, as pro-
vided in section 7(m).
‘‘(2) For the programs authorized by this Act,
the 
Administration 
is 
authorized 
to 
make
$19,040,000,000 in deferred participation loans and
other financings. Of such sum, the Administration is
authorized to make—
‘‘(A) $13,500,000,000 in general business
loans as provided in section 7(a);
‘‘(B) $4,500,000,000 in financings as pro-
vided in section 7(a)(13) of this Act and section
504 of the Small Business Investment Act of
1958;
‘‘(C) $1,000,000,000 in loans as provided in
section 7(a)(21); and
‘‘(D) $40,000,000 in loans as provided in
section 7(m).
‘‘(3) For the programs authorized by title III of
the Small Business Investment Act of 1958, the Ad-
ministration is authorized to make—
‘‘(A) $850,000,000 in purchases of partici-
pating securities; and
‘‘(B) $700,000,000 in guarantees of deben-
tures.
‘‘(4) For the programs authorized by part B of
title IV of the Small Business Investment Act of 1958,
the Administration is authorized to enter into guar-
antees not to exceed $2,000,000,000, of which not
more than $650,000,000 may be in bonds approved
pursuant to the provisions of section 411(a)(3) of that
Act.
‘‘(5) The Administration is authorized to make
grants or enter cooperative agreements—
‘‘(A) for the Service Corps of Retired Execu-
tives program authorized by section 8(b)(1),
$5,000,000; and
‘‘(B) for activities of small business develop-
ment centers pursuant to section 21(c)(3)(G), not
to exceed $15,000,000, to remain available until
expended.
‘‘(q)(1) There are authorized to be appropriated to the
Administration for fiscal year 2000 such sums as may be
necessary to carry out this Act, including administrative
expenses and necessary loan capital for disaster loans pur-
suant to section 7(b), and to carry out the provisions of
the Small Business Investment Act of 1958, including sala-
ries and expenses of the Administration.
‘‘(2) Notwithstanding paragraph (1), for fiscal year
2000—
‘‘(A) no funds are authorized to be provided to
carry out the loan program authorized by section
7(a)(21) except by transfer from another Federal de-
partment or agency to the Administration, unless the
program level authorized for general business loans
under subsection (p)(2)(A) is fully funded; and
‘‘(B) the Administration may not approve loans
on behalf of the Administration or on behalf of any
other department or agency, by contract or otherwise,
under terms and conditions other than those specifi-
cally authorized under this Act or the Small Business
Investment Act of 1958, except that it may approve
loans under section 7(a)(21) of this Act in gross
amounts of not more than $1,250,000.’’.
TITLE II—FINANCIAL PROGRAMS
Subtitle A—General Business Loans
SEC. 201. SECURITIZATION REGULATIONS.
The Administrator shall promulgate final regulations
permitting bank and non-bank lenders to sell or securitize
the non-guaranteed portion of loans made under section
7(a) of the Small Business Act (15 U.S.C. 636(a)). Such
regulations shall be issued within 90 days of the date of
enactment of this Act, and shall allow securitizations to
proceed as regularly as is possible within the bounds of pru-
dent and sound financial management practice.
SEC. 202. BACKGROUND CHECK OF LOAN APPLICANTS.
Section 7(a)(1) of the Small Business Act (15 U.S.C.
636(a)(1)) is amended by striking ‘‘(1)’’ and inserting the
following:
‘‘(1)(A) CREDIT ELSEWHERE.—’’, and by adding
the following new paragraph at the end:
‘‘(B) BACKGROUND CHECKS.—Prior to the ap-
proval of any loan made pursuant to this subsection,
or section 503 of the Small Business Investment Act,
the Administrator shall verify the applicant’s crimi-
nal background, or lack thereof, through the best
available means, including, if possible, use of the Na-
tional Crime Information Center computer system at
the Federal Bureau of Investigation.’’.
SEC. 203. REPORT ON INCREASED LENDER APPROVAL,
SERVICING, 
FORECLOSURE, 
LIQUIDATION,
AND LITIGATION OF 7(a) LOANS.
(a) Within six months of the date of enactment of this
act the Administrator shall report on action taken and
planned for future reliance on private sector lender re-
sources to originate, approve, close, service, liquidate, fore-
close, and litigate loans made under Section 7(a) of the
Small Business Act. The report should address administra-
tive and other steps necessary to achieve these results, in-
cluding—
(1) streamlining the process for approving lend-
ers and standardizing requirements;
(2) establishing uniform reporting requirements
using on-line automated capabilities to the maximum
extent feasible;
(3) reducing paperwork through automation,
simplified forms or incorporation of lender’s forms;
(4) providing uniform standards for approval,
closing, servicing, foreclosure, and liquidation;
(5) promulgating new regulations or amending
existing ones;
(6) establishing a timetable for implementing the
plan for reliance on private sector lenders;
(7) implementing organizational changes at
SBA; and
(8) estimating the annual savings that would
occur as a result of implementation.
(b) In preparing the report the Administrator shall
seek the views and consult with, among others, 7(a) borrow-
ers and lenders, small businesses who are potential program
participants, financial institutions who are potential pro-
gram lenders, and representative industry associations,
such as the U. S. Chamber of Commerce, the American
Bankers Association, the National Association of Govern-
ment Guaranteed Lenders and the Independent Bankers As-
sociation of America.
SEC. 204. COMPLETION OF PLANNING FOR LOAN MONITOR-
ING SYSTEM.
(a) The Administrator shall perform and complete the
planning needed to serve as the basis for funding the devel-
opment and implementation of computerized loan monitor-
ing system, including—
(1) fully defining the system requirement using
on-line, automated capabilities to the extent feasible;
(2) identifying all data inputs and outputs nec-
essary for timely report generation;
(3) benchmark loan monitoring business proc-
esses and systems against comparable industry proc-
esses and, if appropriate, simplify or redefine work
processes based on these benchmarks;
(4) determine data quality standards and control
systems for ensuring information accuracy;
(5) identify an acquisition strategy and work in-
crements to completion;
(6) analyze the benefits and costs of alternatives
and use to demonstrate the advantage of the final
project;
(7) ensure that the proposed information system
is consistent with the agency’s information architec-
ture; and
(8) estimate the cost to system completion, iden-
tifying the essential cost element.
(b) Six months from the date of enactment of this Act,
the Administrator shall report to the House and Senate
Committees on Small Business pursuant to the require-
ments of subsection (a), and shall also submit a copy of
the report to the General Accounting Office, which shall
evaluate the report for compliance with subsection (a) and
shall submit such evaluation to both Committees no later
than 28 days after receipt of the report from the Small
Business Administration. None of the funds provided for
the purchase of the loan monitoring system may be ex-
pended until the requirements of this section have been sat-
isfied.
Subtitle B—Certified Development
Company Program
SEC. 221. REAUTHORIZATION OF FEES.
Section 503 of the Small Business Investment Act of
1958 (15 U.S.C. 697) is amended—
(1) by striking subsection (b)(7)(A) and inserting
the following:
‘‘(A) assesses and collects a fee, which shall
be payable by the borrower, in an amount equal
to 0.9375 percent per year of the outstanding
balance of the loan; and’’;
(2) by striking from subsection (d)(2) ‘‘equal to
50 basis points’’ and inserting ‘‘equal to not more
than 50 basis points,’’;
(3) by adding the following at the end of sub-
section (d)(2): ‘‘The amount of the fee authorized here-
in shall be established annually by the Administra-
tion in the minimal amount necessary to reduce the
cost (as that term is defined in section 502 of the Fed-
eral Credit Reform Act of 1990) to the Administra-
tion of purchasing and guaranteeing debentures under
this Act to zero.’’; and
(4) by striking from subsection (f) ‘‘1997’’ and
inserting ‘‘2000’’.
SEC. 222. PCLP PARTICIPATION.
Section 508(a) of the Small Business Investment Act
of 1958 (15 U.S.C. 697e(a)) is amended by striking ‘‘not
more than 15’’.
SEC. 223. PCLP ELIGIBILITY.
Section 508(b)(2) of the Small Business Investment
Act of 1958 (15 U.S.C. 697e(b)(2)) is amended by striking
paragraphs (A) and (B) and inserting:
‘‘(A) is an active certified development com-
pany in good standing and has been an active
participant in the accredited lenders program
during the entire 12-month period preceding the
date on which the company submits an applica-
tion under paragraph (1), except that the Ad-
ministration may waive this requirement if the
company is qualified to participate in the ac-
credited lenders program;
‘‘(B) has a history (i) of submitting to the
Administration adequately analyzed debenture
guarantee application packages and (ii) of prop-
erly closing section 504 loans and servicing its
loan portfolio; and’’.
SEC. 224. LOSS RESERVES.
Section 508(c) of the Small Business Investment Act
of 1958 (15 U.S.C. 697e(c)) is amended to read as follows:
‘‘(c) LOSS RESERVE.—
‘‘(1) ESTABLISHMENT.—A company designated
as a premier certified lender shall establish a loss re-
serve for financing approved pursuant to this section.
‘‘(2) AMOUNT.—The amount of the loss reserve
shall be equal to 10 percent of the amount of the com-
pany’s exposure as determined under subsection
(b)(2)(C).
‘‘(3) ASSETS.—The loss reserve shall be com-
prised of any combination of the following types of
assets:
‘‘(A) segregated funds on deposit in an ac-
count or accounts with a federally insured depos-
itory institution or institutions selected by the
company, subject to a collateral assignment in
favor of, and in a format acceptable to, the Ad-
ministration; or
‘‘(B) irrevocable letter or letters of credit,
with a collateral assignment in favor of, and a
commercially reasonable format acceptable to,
the Administration.
‘‘(4) CONTRIBUTIONS.—The company shall make
contributions to the loss reserve, either cash or letters
of credit as provided above, 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 debenture is closed; and
‘‘(C) 25 percent additional not later than 2
years after a debenture is closed.
‘‘(5) REPLENISHMENT.—If a loss has been sus-
tained by the Administration, any portion of the loss
reserve, and other funds provided by the premier com-
pany as necessary, may be used to reimburse the Ad-
ministration for the company’s 10 percent share of
the loss as provided in subsection (b)(2)(C). If the
company utilizes the reserve, within 30 days it shall
replace an equivalent amount of funds.
‘‘(6) 
DISBURSEMENTS.—The 
Administration
shall allow the certified development company to
withdraw from the loss reserve amounts attributable
to any debenture which has been repaid.’’.
SEC. 225. GOALS.
Section 508 of the Small Business Investment Act of
1958 (15 U.S.C. 697e) is amended by inserting the follow-
ing after subsection (d) and by redesignating subsections
(e) to (i) as (f) to (j):
‘‘(e) PROGRAM GOALS.—Certified development compa-
nies participating in this program shall establish a goal
of processing 50 percent of their loan applications for sec-
tion 504 assistance pursuant to the premier certified lender
program authorized in this section.’’.
SEC. 226. TECHNICAL AMENDMENTS.
Section 508(g) of the Small Business Investment Act
of 1958 (15 U.S.C. 697(g)) is amended—
(1) in subsection (g), as redesignated herein, is
amended by striking ‘‘State or local’’ and inserting
‘‘certified’’;
(2) in subsection (h), as redesignated herein—
(A) by striking ‘‘EFFECT OF SUSPEN-
SION OR DESIGNATION’’ and inserting ‘‘EF-
FECT OF SUSPENSION OR REVOCATION’’;
and
(B) by striking ‘‘under subsection (f)’’ and
inserting ‘‘under subsection (g)’’.
SEC. 227. PROMULGATION OF REGULATIONS.
Section 508(i) of the Small Business Investment Act
of 1958 (15 U.S.C. 697e(i)), as redesignated herein, is
amended to read as follows:
‘‘(i) REGULATIONS.—Not later than 90 days after the
date of enactment of this section, the Administration shall
promulgate regulations to carry out this section. Not later
than 120 days after the date of enactment, the Administra-
tion shall issue program guidelines and implement the
changes made herein.’’.
SEC. 228. TECHNICAL AMENDMENT.
Section 508(j) of the Small Business Investment Act
of 1958 (15 U.S.C. 697e(j)), as redesignated herein, is
amended by striking ‘‘other lenders’’ and inserting ‘‘other
lenders, specifically comparing default rates and recovery
rates on liquidations’’.
SEC. 229. REPEAL.
Section 217(b) of Public Law 103–403 (108 Stat.
4185) is repealed.
SEC. 230. LOAN SERVICING AND LIQUIDATION.
Section 508(d)(1) of the Small Business Investment
Act of 1958 (15 U.S.C. 697e(d)) is amended by striking ‘‘to
approve loans’’ and inserting ‘‘to approve, authorize, close,
service, foreclose, litigate, and liquidate loans’’.
SEC. 231. USE OF PROCEEDS.
Section 502(1) of the Small Business Investment Act
of 1958 (15 U.S.C. 696(1)) is amended to read as follows:
‘‘(1) The proceeds of any such loan shall be used
solely by such borrower or borrowers to assist an
identifiable small-business or businesses and for a
sound business purpose approved by the Administra-
tion.’’.
SEC. 232. LEASE OF PROPERTY.
Section 502 of the Small Business Investment Act of
1958 (15 U.S.C. 696) is amended by adding the following
new subsection:
‘‘(5) Not to exceed 25 percent of any project may
be permanently leased by the assisted small business:
Provided, That the assisted small business shall be re-
quired to occupy and use not less than 55 percent of
the space in the project after the execution of any
leases authorized in this section.’’.
SEC. 233. SELLER FINANCING AND COLLATERALIZATION.
Section 502(3) of the Small Business Investment Act
of 1958 (15 U.S.C. 696(3)) is amended by inserting the fol-
lowing new subparagraphs:
‘‘(D) SELLER FINANCING.—Seller provided
financing may be used to meet the requirements
of—
‘‘(i) paragraph (B), if the seller subor-
dinates his interest in the property to the
debenture guaranteed by the Administra-
tion; and
‘‘(ii) not to exceed 50 percent of the
amounts required by paragraph (C).
‘‘(E) COLLATERALIZATION.—The collateral
provided by the small business concern generally
shall include a subordinate lien position on the
property being financed under this title, and is
only one of the factors to be evaluated in the
credit determination. Additional collateral shall
be required only if the Administration deter-
mines, on a case by case basis, that additional
security is necessary to protect the interest of the
Government.’’.
SEC. 234. PREEXISTING CONDITIONS.
Section 502 of the Small Business Investment Act of
1958 (15 U.S.C. 696) is amended by adding the following
new paragraph:
‘‘(6) Any loan authorized under this section shall
not be denied or delayed for approval by the Adminis-
tration due to concerns over preexisting environ-
mental conditions: Provided, That the development
company provides the Administration a letter issued
by the appropriate State or Federal environmental
protection agency specifically stating that the envi-
ronmental agency will not institute any legal proceed-
ings against the borrower or, in the event of a default,
the development company or the Administration
based on the preexisting environmental conditions:
Provided further, That the borrower shall agree to
provide environmental agencies access to the property
for any reasonable and necessary remediation efforts
or inspections.’’.
Subtitle C—Small Business
Investment Company Program
SEC. 241. 5-YEAR COMMITMENTS.
Section 20(a)(2) of the Small Business Act (15 U.S.C.
631 note) is amended in the last sentence by striking ‘‘the
following fiscal year’’ and inserting ‘‘any one or more of
the 4 subsequent fiscal years’’.
SEC. 242. PROGRAM REFORM.
(a) TAX DISTRIBUTIONS.—Section 303(g)(8) of the
Small Business Investment Act of 1958 (15 U.S.C.
683(g)(8)) is amended in the first sentence—
(1) by inserting ‘‘, for each calendar quarter or
once annually, as the company may elect,’’ after ‘‘the
company may’’; and
(2) by inserting ‘‘for the preceding quarter or
year’’ before the period.
(b) LEVERAGE FEE.—Section 303(i) of the Small
Business Investment Act of 1958 (15 U.S.C. 683(i)) is
amended by striking ‘‘, payable upon’’ and all that follows
before the period and inserting the following: ‘‘in the follow-
ing manner: 1 percent upon the date on which the Adminis-
tration enters into any commitment for such leverage with
the licensee, and the balance of 2 percent (or 3 percent in
which case in which no commitment has been entered into
by the Administration) on the date on which the leverage
is drawn by the licensee’’.
(c) PERIODIC ISSUANCE OF GUARANTEES AND TRUST
CERTIFICATES.—Section 320 of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 687m) is amended by striking
‘‘three months’’ and inserting ‘‘6 months’’.
(d) INDEXING FOR LEVERAGE.—Section 303 of the
Small Business Investment Act of 1958 (15 U.S.C. 683) is
amended—
(1) in subsection (b)—
(A) in paragraph (2), by adding at the end
the following:
‘‘(D)(i) The dollar amounts in subpara-
graphs (A), (B), and (C) shall be adjusted annu-
ally to reflect increases in the Consumer Price
Index established by the Bureau of Labor Statis-
tics of the Department of Labor.
‘‘(ii) The initial adjustments made under
this subparagraph after the date of enactment of
the Small Business Reauthorization Act of 1997
shall reflect only increases from March 31,
1993.’’; and
(B) by striking paragraph (4) and inserting
the following:
‘‘(4) MAXIMUM AGGREGATE AMOUNT OF LEVER-
AGE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the aggregate amount of out-
standing leverage issued to any company or com-
panies that are commonly controlled (as deter-
mined by the Administrator) may not exceed
$90,000,000, as adjusted annually for increases
in the Consumer Price Index.
‘‘(B) 
EXCEPTIONS.—The 
Administrator
may, on a case-by-case basis—
‘‘(i) approve an amount of leverage
that exceeds the amount described in sub-
paragraph (A) for companies under com-
mon control; and
‘‘(ii) impose such additional terms and
conditions as the Administrator determines
to be appropriate to minimize the risk of
loss to the Administration in the event of
default.
‘‘(C) APPLICABILITY
OF
OTHER
PROVI-
SIONS.—Any leverage that is issued to a com-
pany or companies commonly controlled in an
amount that exceeds $90,000,000, whether as a
result of an increase in the Consumer Price
Index or a decision of the Administrator, is sub-
ject to subsection (d).’’; and
(2) by striking subsection (d) and inserting the
following:
‘‘(d) REQUIRED CERTIFICATIONS.—
‘‘(1) IN GENERAL.—The Administrator shall re-
quire each licensee, as a condition of approval of an
application for leverage, to certify in writing—
‘‘(A) for licensees with leverage less than or
equal to $90,000,000, that not less than 20 per-
cent of the licensee’s aggregate dollar amount of
financings will be provided to smaller enter-
prises; and
‘‘(B) for licensees with leverage in excess of
$90,000,000, that, in addition to satisfying the
requirements of subparagraph (A), 100 percent
of the licensee’s aggregate dollar amount of
financings made in whole or in part with lever-
age in excess of $90,000,000 will be provided to
smaller enterprises as defined in section 103(12).
‘‘(2) MULTIPLE LICENSEES.—Multiple licensees
under common control (as determined by the Admin-
istrator) shall be considered to be a single licensee for
purposes of determining both the applicability of and
compliance with the investment percentage require-
ments of this subsection.’’.
SEC. 243. FEES.
Section 301 of the Small Business Investment Act of
1958 (15 U.S.C. 681) is amended by adding the following:
‘‘(d) FEES.—
‘‘(1) IN
GENERAL.—The Administration may
prescribe fees to be paid by each applicant for a li-
cense to operate as a small business investment com-
pany under this Act.
‘‘(2) USE OF AMOUNTS.—Amounts collected pur-
suant to this subsection shall be—
‘‘(A) deposited in the account for salaries
and expenses of the Administration; and
‘‘(B) available without further appropria-
tion solely to cover contracting and other admin-
istrative costs related to licensing.’’.
SEC. 244. EXAMINATION FEES.
Section 310(b) of the Small Business Investment Act
of 1958 (15 U.S.C. 687b(b)) is amended by inserting after
the first sentence the following: ‘‘Fees collected under this
subsection shall be deposited in the account for salaries and
expenses of the Administration, and shall be available with-
out further appropriation solely to cover the costs of exami-
nations and other program oversight activities.’’.
Subtitle D—Microloan Program
SEC. 251. MICROLOAN PROGRAM EXTENSION.
(a) LOAN LIMITS.—Section 7(m)(3)(C) of the Small
Business Act (15 U.S.C. 636(m)(3)(C)) is amended by strik-
ing ‘‘$2,500,000’’ and inserting ‘‘$3,500,000’’.
(b) LOAN LOSS RESERVE FUND.—Section 7(m)(3)(D)
of the Small Business Act (15 U.S.C. 636(m)(3)(D)) is
amended by striking clauses (i) and (ii), and inserting the
following:
‘‘(i) during the initial 5 years of the
intermediary’s participation in the pro-
gram under this subsection, at a level equal
to not more than 15 percent of the outstand-
ing balance of the notes receivable owed to
the intermediary; and
‘‘(ii) in each year of participation
thereafter, at a level equal to not more than
the greater of—
‘‘(I) 2 times an amount reflecting
the total losses of the intermediary as
a result of participation in the pro-
gram under this subsection, as deter-
mined by the Administrator on a case-
by-case basis; or
‘‘(II) 10 percent of the outstand-
ing balance of the notes receivable owed
to the intermediary.’’.
(c) AUTHORIZATION
OF APPROPRIATIONS.—Section
7(m) of the Small Business Act (15 U.S.C. 636(m)) is
amended—
(1) in the subsection heading, by striking ‘‘DEM-
ONSTRATION’’;
(2) by striking ‘‘Demonstration’’ each place that
term appears;
(3) by striking ‘‘demonstration’’ each place that
term appears; and
(4) in paragraph (12), by striking ‘‘during fiscal
years 1995 through 1997’’ and inserting ‘‘during fis-
cal years 1998 through 2000’’.
SEC. 252. SUPPLEMENTAL MICROLOAN GRANTS.
Section 7(m)(4) of the Small Business Act (15 USC
636 (m)(4)) is amended by adding the following:
‘‘(F)(i) The Administration may accept and
disburse funds received from another Federal de-
partment or agency to provide additional assist-
ance to individuals who are receiving assistance
under the State program funded under part A of
title IV of the Social Security Act (42 USC 601
et seq.), or under any comparable State-funded
means-tested program of assistance for low-in-
come individuals.
‘‘(ii) Grant proceeds are in addition to
other grants provided by this subsection and
shall not require the contribution of matching
amounts to be eligible. The grants may be used
to pay or reimburse a portion of child care and
transportation costs of individuals described in
clause (i) and for marketing, management and
technical assistance.
‘‘(iii) Prior to accepting and distributing
any such grants, the Administration shall enter
a Memorandum of Understanding with the de-
partment or agency specifying the terms and
conditions of the grants and providing appro-
priate 
monitoring 
of 
expenditures 
by 
the
intermediary and ultimate grant recipient to in-
sure compliance with the purpose of the grant.
‘‘(iv) On January 31, 1999, and annually
thereafter, the Administration shall submit to the
Committees on Small Business of the House of
Representatives and the Senate a report on any
monies distributed pursuant to the provisions of
this paragraph.
‘‘(v) No funds are authorized to be provided
to carry out the grant program authorized by
this paragraph (F) except by transfer from an-
other Federal department or agency to the Ad-
ministration.’’.
TITLE III—WOMEN’S BUSINESS
ENTERPRISES
SEC. 301. REPORTS.
Section 404 of the Women’s Business Ownership Act
of 1988 (15 U.S.C. 631 note) is amended—
(1) by inserting ‘‘, through the Small Business
Administration,’’ after ‘‘transmit’’;
(2) by striking paragraph (1) and redesignating
paragraphs (2) through (4) as paragraphs (1)
through (3), respectively; and
(3) in paragraph (1), as redesignated, by insert-
ing before the semicolon the following: ‘‘, including a
status report on the progress of the Interagency Com-
mittee in meeting its responsibilities and duties under
section 402(a)’’.
SEC. 302. COUNCIL DUTIES.
Section 406 of the Women’s Business Ownership Act
of 1988 (15 U.S.C. 631 note) is amended—
(1) in subsection (c), by inserting after ‘‘Admin-
istrator’’ the following: ‘‘(through the Assistant Ad-
ministrator for the Office of Women’s Business Own-
ership)’’; and
(2) in subsection (d)—
(A) in paragraph (4), by striking ‘‘and’’ at
the end;
(B) in paragraph (5), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(6) submit to the President and to the Commit-
tee on Small Business of the Senate and the Commit-
tee on Small Business of the House of Representatives,
an annual report containing—
‘‘(A) a detailed description of the activities
of the council, including a status report on the
Council’s progress toward meeting its duties out-
lined in subsections (a) and (d) of section 406;
‘‘(B) the findings, conclusions, and rec-
ommendations of the Council; and
‘‘(C) the Council’s recommendations for
such legislation and administrative actions as
the Council considers appropriate to promote the
development of small business concerns owned
and controlled by women.
‘‘(e) SUBMISSION OF REPORTS.—The annual report
required by subsection (d) shall be submitted not later than
90 days after the end of each fiscal year.’’.
SEC. 303. COUNCIL MEMBERSHIP.
Section 407 of the Women’s Business Ownership Act
of 1988 (15 U.S.C. 631 note) is amended—
(1) in subsection (a), by striking ‘‘and Amend-
ments Act of 1994’’ and inserting ‘‘Act of 1997’’;
(2) in subsection (b)—
(A) by striking ‘‘and Amendments Act of
1994’’ and inserting ‘‘Act of 1997’’;
(B) by inserting after ‘‘the Administrator
shall’’ the following: ‘‘, after receiving the rec-
ommendations of the Chair and the Ranking
Member of the Minority of the Committees on
Small Business of the House of Representatives
and the Senate,’’;
(C) by striking ‘‘9’’ and inserting ‘‘14’’;
(D) in paragraph (1), by striking ‘‘2’’ and
inserting ‘‘4’’;
(E) in paragraph (2)—
(i) by striking ‘‘2’’ and inserting ‘‘4’’;
and
(ii) by striking ‘‘and’’ at the end;
(F) in paragraph (3)—
(i) by striking ‘‘5’’ and inserting ‘‘6’’;
and
(ii) by striking ‘‘national’’.
SEC. 304. AUTHORIZATION OF APPROPRIATIONS.
Section 409 of the Women’s Business Ownership Act
of 1988 (15 U.S.C. 631 note) is amended—
(1) by striking ‘‘1995 through 1997’’ and insert-
ing ‘‘1998 through 2000’’; and
(2) by striking ‘‘$350,000’’ and inserting
‘‘$600,000, of which $200,000 shall be for grants for
research of women’s procurement or finance issues.’’.
SEC. 305. WOMEN’S BUSINESS CENTERS.
(a) IN GENERAL.—Section 29 of the Small Business
Act (15 U.S.C. 656) is amended to read as follows:
‘‘SEC. 29. WOMEN’S BUSINESS CENTERS.
‘‘(a) DEFINITION.—For the purposes of this section the
term ‘small business concern owned and controlled by
women’, either startup or existing, includes any small busi-
ness concern—
‘‘(1) that is not less than 51 percent owned by
one or more women; and
‘‘(2) the management and daily business oper-
ations of which are controlled by one or more women.
‘‘(b) AUTHORITY.—The Administration may provide
financial assistance to private organizations to conduct 5-
year projects for the benefit of small business concerns
owned and controlled by women. The projects shall pro-
vide—
‘‘(1) financial assistance, including training and
counseling in how to apply for and secure business
credit and investment capital, preparing and present-
ing financial statements, and managing cash flow
and other financial operations of a business concern;
‘‘(2) management assistance, including training
and counseling in how to plan, organize, staff, direct,
and control each major activity and function of a
small business concern; and
‘‘(3) marketing assistance, including training
and counseling in identifying and segmenting domes-
tic and international market opportunities, preparing
and executing marketing plans, developing pricing
strategies, locating contract opportunities, negotiating
contracts, and utilizing varying public relations and
advertising techniques.
‘‘(c) CONDITIONS OF PARTICIPATION.—
‘‘(1) NON-FEDERAL CONTRIBUTIONS.—As a con-
dition of receiving financial assistance authorized by
this section, the recipient organization shall agree to
obtain, after its application has been approved and
notice of award has been issued, cash contributions
from non-Federal sources as follows:
‘‘(A) In the first and second years, 1 non-
Federal dollar for each 2 Federal dollars.
‘‘(B) In the third year, 1 non-Federal dollar
for each Federal dollar.
‘‘(C) In the fourth and fifth years, 2 non-
Federal dollars for each Federal dollar.
‘‘(2) FORM OF NON-FEDERAL CONTRIBUTIONS.—
Not more than one-half of the non-Federal sector
matching assistance may be in the form of in-kind
contributions which are budget line items only, in-
cluding but not limited to office equipment and office
space.
‘‘(3) FORM OF FEDERAL CONTRIBUTIONS.—The
financial assistance authorized pursuant to this sec-
tion may be made by grant, contract, or cooperative
agreement and may contain such provision, as nec-
essary, to provide for payments in lump sum or in-
stallments, and in advance or by way of reimburse-
ment. The Administration may disburse up to 25 per-
cent of each year’s Federal share awarded to a recipi-
ent organization after notice of the award has been is-
sued and before the non-Federal sector matching funds
are obtained.
‘‘(4) FAILURE TO OBTAIN PRIVATE FUNDING.—If
any recipient of assistance fails to obtain the required
non-Federal contribution during any project, it shall
not be eligible thereafter for advance disbursements
pursuant to paragraph (3) during the remainder of
that project, or for any other project for which it is
or may be funded by the Administration, and prior
to approving assistance to such organization for any
other projects, the Administration shall specifically
determine whether the Administration believes that
the recipient will be able to obtain the requisite non-
Federal funding and enter a written finding setting
forth the reasons for making such determination.
‘‘(d) CONTRACT AUTHORITY.—A women’s business
center may enter into a contract with a Federal department
or agency to provide specific assistance to women and other
underserved small business concerns. Performance of such
contract should not hinder the women’s business centers in
carrying out the terms of the grant received by the women’s
business centers from the Administration.
‘‘(e) SUBMISSION OF 5-YEAR PLAN.—Each applicant
organization initially shall submit a 5-year plan to the Ad-
ministration on proposed fundraising and training activi-
ties, and a recipient organization may receive financial as-
sistance under this program for a maximum of 5 years per
women’s business center.
‘‘(f) CRITERIA.—The Administration shall evaluate
and rank applicants in accordance with predetermined se-
lection criteria that shall be stated in terms of relative im-
portance. Such criteria and their relative importance shall
be made publicly available and stated in each solicitation
for applications made by the Administration. The criteria
shall include—
‘‘(1) the experience of the applicant in conduct-
ing programs or ongoing efforts designed to impart or
upgrade the business skills of women business owners
or potential owners;
‘‘(2) the present ability of the applicant to com-
mence a project within a minimum amount of time;
‘‘(3) the ability of the applicant to provide train-
ing and services to a representative number of women
who are both socially and economically disadvan-
taged; and
‘‘(4) the location for the women’s business center
site proposed by the applicant.
‘‘(g) OFFICE OF WOMEN’S BUSINESS OWNERSHIP.—
There is established within the Administration an Office
of Women’s Business Ownership, which shall be responsible
for the administration of the Administration’s programs for
the development of women’s business enterprises (as that
term is defined in section 408 of the Women’s Business
Ownership Act of 1988). The Office of Women’s Business
Ownership shall be administered by an Assistant Adminis-
trator, who shall be appointed by the Administrator.
‘‘(h) REPORT.—The Administrator shall prepare and
submit an annual report to the Committees on Small Busi-
ness of the House of Representatives and the Senate on the
effectiveness of all projects conducted under the authority
of this section. Such report shall provide information con-
cerning—
‘‘(1) the number of individuals receiving assist-
ance;
‘‘(2) the number of startup business concerns
formed;
‘‘(3) the gross receipts of assisted concerns;
‘‘(4) increases or decreases in profits of assisted
concerns; and
‘‘(5) the employment increases or decreases of as-
sisted concerns.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated $8,000,000 per year to carry
out the projects authorized by this section of which for fiscal
year 1998 not more than 10 percent may be used for admin-
istrative expenses related to the program. Amounts appro-
priated pursuant to this subsection for fiscal year 1999 and
later are to be used exclusively for grant awards and not
for costs incurred by the Administration for the manage-
ment and administration of the program. Notwithstanding
any other provision of law, the Administration may use
such expedited acquisition methods as it deems appropriate,
through the Assistant Administrator of the Office of Wom-
en’s Business Ownership, to achieve the purposes of this sec-
tion, except that the Administration shall ensure that all
small business sources are provided a reasonable oppor-
tunity to submit proposals.’’.
(b) APPLICABILITY.—Any organization conducting a
3-year project under section 29 of the Small Business Act
(15 U.S.C. 656) on the day before the date of enactment
of this Act, may extend the term of that project to a total
term of 5 years and receive financial assistance in accord-
ance with section 29(c) of the Small Business Act (as
amended by this title) subject to procedures established by
the Administrator in coordination with the Office of Wom-
en’s Business Ownership established under section 29 of the
Small Business Act (15 U.S.C. 656) (as amended by this
title).
SEC. 306. OFFICE OF WOMEN’S BUSINESS OWNERSHIP.
Section 29 of the Small Business Act (15 U.S.C. 656)
is amended by adding at the end the following:
‘‘(j) ASSISTANT ADMINISTRATOR FOR THE OFFICE OF
WOMEN’S BUSINESS OWNERSHIP.—
‘‘(1) ESTABLISHMENT.—There is established the
position of Assistant Administrator for the Office of
Women’s Business Ownership (hereafter in this sec-
tion referred to as the ‘Assistant Administrator’) who
shall serve without regard to the provisions of title 5,
United States Code, governing appointments in the
competitive service.
‘‘(2) RESPONSIBILITIES AND DUTIES.—
‘‘(A) RESPONSIBILITIES.—The responsibil-
ities of the Assistant Administrator shall be to
administer the programs and services of the Of-
fice of Women’s Business Ownership established
to assist women entrepreneurs in the areas of—
‘‘(i) starting and operating a small
business;
‘‘(ii) development of management and
technical skills;
‘‘(iii) seeking Federal procurement op-
portunities; and
‘‘(iv) increasing the opportunity for
access to capital.
‘‘(B) DUTIES.—Duties of the position of the
Assistant Administrator shall include—
‘‘(i) administering and managing the
Women’s Business Centers program;
‘‘(ii) recommending the annual admin-
istrative and program budgets for the Office
of Women’s Business Ownership (including
the budget for the Women’s Business Cen-
ters);
‘‘(iii) establishing appropriate funding
levels therefore;
‘‘(iv) reviewing the annual budgets
submitted by each applicant for the Wom-
en’s Business Center program;
‘‘(v) selecting applicants to participate
in this program;
‘‘(vi) implementing this section;
‘‘(vii) maintaining a clearinghouse to
provide for the dissemination and exchange
of information between Women’s Business
Centers;
‘‘(viii) serving as the vice chairperson
of the Interagency Committee on Women’s
Business Enterprise;
‘‘(ix) serving as liaison for the Na-
tional Women’s Business Council; and
‘‘(x) advising the Administrator on ap-
pointments to the Women’s Business Coun-
cil.
‘‘(3) CONSULTATION REQUIREMENTS.—In carry-
ing out the responsibilities and duties described in
this subsection, the Assistant Administrator shall con-
fer with and seek the advice of the Administration of-
ficials in areas served by the Women’s Business Cen-
ters.
‘‘(k) PROGRAM EXAMINATION.—
‘‘(1) IN
GENERAL.—Not later than 180 days
after the date of enactment of this subsection, the Ad-
ministration shall develop and implement an annual
programmatic and financial examination of each
Women’s Business Center established pursuant to this
section.
‘‘(2) EXTENSION OF CONTRACTS.—In extending
or renewing a contract with a Women’s Business Cen-
ter, the Administration shall consider the results of
the examination conducted pursuant to paragraph
(1).
‘‘(l) CONTRACT AUTHORITY.—The authority of the Ad-
ministration to enter into contracts shall be in effect for
each fiscal year only to the extent and in the amounts as
are provided in advance in appropriations Acts. After the
Administration has entered a contract, either as a grant
or a cooperative agreement, with any applicant under this
section, it shall not suspend, terminate, or fail to renew or
extend any such contract unless the Administration pro-
vides the applicant with written notification setting forth
the reasons therefore and affording the applicant an oppor-
tunity for a hearing, appeal, or other administrative pro-
ceeding under chapter 5 of title 5, United States Code.’’.
TITLE IV—COMPETITIVENESS
PROGRAM
SEC. 401. PROGRAM TERM.
Section 711(c) of the Small Business Competitiveness
Demonstration Program Act of 1988 (15 U.S.C. 644 note)
is amended by striking ‘‘, and terminate on September 30,
1997’’.
SEC. 402. MONITORING AGENCY PERFORMANCE.
Section 712(d)(1) of the Small Business Competitive-
ness Demonstration Program Act of 1988 (15 U.S.C. 644
note) is amended to read as follows:
‘‘(1) Participating agencies shall monitor the at-
tainment of their small business participation goals
on an annual basis. An annual review by each par-
ticipating agency shall be completed not later than
January 31 of each year, based on the data for the
preceding fiscal year, from October 1 through Septem-
ber 30.’’.
SEC. 403. SMALL BUSINESS PARTICIPATION IN DREDGING.
Section 722(a) of the Small Business Competitiveness
Demonstration Program Act of 1988 (15 U.S.C. 644 note)
is amended by striking ‘‘and terminating on September 30,
1997’’.
SEC. 404. TECHNICAL AMENDMENT.
Section 717 of the Small Business Competitiveness
Demonstration Program Act of 1988 (15 U.S.C. 644 note)
is amended—
(1) by striking ‘‘standard industrial classifica-
tion code’’ each time it appears and inserting in lieu
thereof ‘‘North American Industrial Classification
Code’’; and
(2) by striking ‘‘standard industrial classifica-
tion codes’’ each time it appears and inserting in lieu
thereof ‘‘North American Industrial Classification
Codes’’.
TITLE V—MISCELLANEOUS
PROVISIONS
SEC. 501. SMALL BUSINESS DEVELOPMENT CENTERS.
(a) IN GENERAL.—Section 21(a) of the Small Business
Act (15 U.S.C. 648(a)) is amended—
(1) in paragraph (1), by inserting ‘‘any women’s
business center operating pursuant to section 29,’’
after ‘‘credit or finance corporation,’’;
(2) in paragraph (3)—
(A) by striking ‘‘, but with’’ and all that
follows through ‘‘parties.’’ and inserting the fol-
lowing: ‘‘for the delivery of programs and serv-
ices to the Small Business community. Such pro-
grams and services shall be jointly developed, ne-
gotiated, and agreed upon, with full participa-
tion of both parties, pursuant to an executed co-
operative agreement between the Small Business
Development Center applicant and the Adminis-
tration.’’; and
(B) by adding at the end the following:
‘‘(C) On an annual basis, the Small Business
Development Center shall review and coordinate pub-
lic and private partnerships and cosponsorships with
the Administration for the purpose of more efficiently
leveraging available resources on a National and a
State basis.’’;
(3) in paragraph (4)(C)—
(A) by striking clause (i) and inserting the
following:
‘‘(i) IN GENERAL.—
SEC. 503. PILOT PREFERRED SURETY BOND GUARANTEE
PROGRAM EXTENSION.
Section 207 of the Small Business Administration Re-
authorization and Amendment Act of 1988 (15 U.S.C. 694b
note) is amended by striking ‘‘September 30, 1997’’ and in-
serting ‘‘September 30, 2000’’.
SEC. 504. VERY SMALL BUSINESS CONCERNS.
Section 304(i) of Public Law 103–403 (15 U.S.C. 644
note) is amended by striking ‘‘1998’’ and inserting ‘‘2000’’.
SEC. 505. EXTENSION OF COSPONSORSHIP AUTHORITY.
Section 401(a)(2) of the Small Business Administra-
tion Reauthorization and Amendments Act of 1994 (15
U.S.C. 637 note) is amended by striking ‘‘September 30,
1997’’ and inserting ‘‘September 30, 2000’’.
SEC. 506. TRADE ASSISTANCE PROGRAM FOR SMALL BUSI-
NESS CONCERNS HARMED BY NAFTA.
The Small Business Administration shall coordinate
assistance programs currently administered by the Admin-
istration to counsel small business concerns harmed by the
North American Free Trade Agreement to aid such concerns
in reorienting their business purpose.