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(ii) by striking ‘‘commercial item’’ in 
the second sentence and inserting ‘‘com-
mercial service’’. 
(h) SAVINGS PROVISION.—Any provision of law that 
on the day before the effective date of this section is on 
a list of provisions of law included in the Federal Acquisi-
tion Regulation pursuant to section 1907 of title 41, 
United States Code, shall be deemed as of that effective 
date to be on a list of provisions of law included in the 
Federal Acquisition Regulation pursuant to section 1906 
of such title. 
SEC. 832. DEFINITION OF SUBCONTRACT. 
(a) STANDARD DEFINITION IN TITLE 41, UNITED 
STATES CODE.— 
(1) IN GENERAL.—Chapter 1 of title 41, United 
States Code, is amended— 
(A) by redesignating sections 115 and 116 
as sections 116 and 117, respectively; and 
(B) by inserting after section 114 the fol-
lowing new section 115: 
‘‘§ 115. Subcontract 
‘‘(a) IN GENERAL.—In this subtitle, the term ‘sub-
contract’ means a contract entered into by a prime con-
tractor or subcontractor for the purpose of obtaining sup-
plies, materials, equipment, or services of any kind under 
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a prime contract. The term includes a transfer of a com-
mercial product or commercial service between divisions, 
subsidiaries, or affiliates of a contractor or subcontractor. 
‘‘(b) MATTERS NOT INCLUDED.—In this subtitle, the 
term ‘subcontract’ does not include— 
‘‘(1) a contract the costs of which are applied 
to general and administrative expenses or indirect 
costs; or 
‘‘(2) an agreement entered into by a contractor 
or subcontractor for the supply of a commodity, a 
commercial product, or a commercial service that is 
intended for use in the performance of multiple con-
tracts.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 1 of title 41, 
United States Code, is amended by striking the 
items relating to sections 115 and 116 and inserting 
the following new items: 
‘‘115. Subcontract. 
‘‘116. Supplies. 
‘‘117. Technical data.’’. 
(b) CONFORMING
AMENDMENTS
TO
TITLE
41, 
UNITED STATES CODE.—Title 41, United States Code, is 
further amended as follows: 
(1) Section 1502(b)(1) is amended— 
(A) by striking subparagraph (A); 
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(B) by redesignating subparagraphs (B) 
and (C) as subparagraphs (A) and (B), respec-
tively; and 
(C) in subparagraph (B), as so redesig-
nated, by striking ‘‘Subparagraph (B)’’ and in-
serting ‘‘Subparagraph (A)’’. 
(2) Section 1906 is amended— 
(A) in subsection (c)— 
(i) by striking paragraph (1); 
(ii) by redesignating paragraphs (2), 
(3), and (4) as paragraphs (1), (2), and 
(3), respectively; 
(iii) in paragraph (1), as so redesig-
nated, by striking ‘‘paragraph (3)’’ and in-
serting ‘‘paragraph (2)’’; and 
(iv) in paragraph (2), as so redesig-
nated, by striking ‘‘paragraph (2)’’ and in-
serting ‘‘paragraph (1)’’; and 
(B) in subsection (e), by striking ‘‘(c)(3)’’ 
both places it appears and inserting ‘‘(c)(2)’’. 
(3) Section 3307(e)(2) is amended— 
(A) by striking subparagraph (A); 
(B) by redesignating subparagraphs (B), 
(C), (D), and (E) as subparagraphs (A), (B), 
(C), and (D), respectively; 
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(C) in subparagraph (C), as so redesig-
nated— 
(i) by striking ‘‘subparagraph (B)’’ 
and inserting ‘‘subparagraph (A)’’; and 
(ii) by striking ‘‘subparagraph (C)’’ 
and inserting ‘‘subparagraph (B)’’; and 
(D) in subparagraph (D), as so redesig-
nated, by striking ‘‘subparagraph (B)’’ and in-
serting ‘‘subparagraph (A)’’. 
(4) Section 3501(a) is amended by striking 
paragraph (3). 
(c) INCORPORATION OF TITLE 41 DEFINITION IN 
CHAPTERS 137 AND 140 OF TITLE 10, UNITED STATES 
CODE.— 
(1) DEFINITIONS FOR PURPOSES OF CHAPTER 
137.—Section 2302(3) of title 10, United States 
Code, is amended by adding at the end the following 
new subparagraph: 
‘‘(N) The term ‘subcontract’.’’. 
(2) DEFINITIONS FOR PURPOSES OF CHAPTER 
140.— 
(A) Section 2375(c) of title 10, United 
States Code, is amended— 
(i) by striking paragraph (3); and 
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(ii) by redesignating paragraph (4) as 
paragraph (3). 
(B) Section 2376(1) of such title is amend-
ed by striking ‘‘and ‘commercial component’ 
have’’ and inserting ‘‘ ‘commercial component’, 
and ‘subcontract’ have’’. 
SEC. 833. LIMITATION ON APPLICABILITY TO DEPARTMENT 
OF DEFENSE COMMERCIAL CONTRACTS OF 
CERTAIN PROVISIONS OF LAW AND CERTAIN 
EXECUTIVE ORDERS AND REGULATIONS. 
(a) INAPPLICABILITY OF CERTAIN PROVISIONS OF 
LAW.— 
(1) SECTION 2375.—Section 2375 of title 10, 
United States Code, is amended— 
(A) in subsection (b)(2), by striking ‘‘Jan-
uary 1, 2015’’ and inserting ‘‘October 13, 
1994’’; and 
(B) in subsections (b)(2), (c)(2), and 
(d)(2), by striking ‘‘unless the’’ and all that fol-
lows and inserting a period. 
(2) SECTION 2533A.—Section 2533a(i) of such 
title is amended— 
(A) in the subsection heading, by striking 
‘‘ITEMS’’ and inserting ‘‘PRODUCTS’’; and 
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(B) by striking ‘‘commercial items’’ and in-
serting ‘‘commercial products’’. 
(3) SECTION 2533B.—Section 2533b(h) of such 
title is amended— 
(A) the subsection heading, by striking 
‘‘ITEMS’’ and inserting ‘‘PRODUCTS’’; and 
(B) by striking ‘‘commercial items’’ each 
place it appears and inserting ‘‘commercial 
products’’. 
(b) INAPPLICABILITY OF CERTAIN EXECUTIVE OR-
DERS
AND REGULATIONS.—Chapter 140 of title 10, 
United States Code, is amended by inserting after section 
2375 the following new section: 
‘‘§ 2375a. Applicability of certain Executive orders 
and regulations 
‘‘(a) EXECUTIVE ORDERS.— 
‘‘(1) COMMERCIAL
CONTRACTS.—No Depart-
ment of Defense commercial contract shall be sub-
ject to an Executive order issued after the date of 
the enactment of this section unless the Executive 
order specifically provides that it is applicable to 
contracts for the procurement of commercial prod-
ucts and commercial services by the Department of 
Defense. 
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‘‘(2) SUBCONTRACTS UNDER COMMERCIAL CON-
TRACTS.—No subcontract under a Department of 
Defense commercial contract shall be subject to an 
Executive order issued after the date of the enact-
ment of this section unless the Executive order spe-
cifically provides that it is applicable to subcontracts 
under Department of Defense contracts for the pro-
curement of commercial products and commercial 
services. 
‘‘(b) REGULATIONS AND POLICIES.— 
‘‘(1) COMMERCIAL
CONTRACTS.—No Depart-
ment of Defense commercial contract shall be sub-
ject to any Department of Defense regulation or pol-
icy prescribed after the date of the enactment of this 
section unless the regulation or policy specifically 
provides that it is applicable to contracts for the 
procurement of commercial products and commercial 
services by the Department of Defense. 
‘‘(2) SUBCONTRACTS UNDER COMMERCIAL CON-
TRACTS.—No subcontract under a Department of 
Defense commercial contract shall be subject to any 
Department of Defense regulation or order pre-
scribed after the date of the enactment of this sec-
tion unless the regulation or policy specifically pro-
vides that it is applicable to subcontracts under De-
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partment of Defense contracts for the procurement 
of commercial products and commercial services. 
‘‘(c) DEPARTMENT OF DEFENSE COMMERCIAL CON-
TRACTS.—In this section, the term ‘Department of De-
fense commercial contract’ means a contract for the pro-
curement of a commercial product or commercial service 
entered into by the Secretary of Defense.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2375 the following new 
item: 
‘‘2375a. Applicability of certain Executive orders and regulations.’’. 
SEC. 834. MODIFICATIONS TO PROCUREMENT THROUGH 
COMMERCIAL E-COMMERCE PORTALS. 
(a) IN GENERAL.—Section 846 of the National De-
fense Authorization Act for Fiscal Year 2018 (Public Law 
115–91; 41 U.S.C. 1901 note) is amended— 
(1) in subsection (f), by adding at the end the 
following new paragraph: 
‘‘(5) A procurement of a product made through 
a commercial e-commerce portal under the program 
established pursuant to subsection (a) is deemed to 
satisfy requirements for full and open competition 
pursuant to section 2304 of title 10, United States 
Code, and section 3301 of title 41, United States 
Code, if— 
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‘‘(A) there are offers from two or more 
suppliers of such a product or similar product 
with substantially the same physical, functional, 
or performance characteristics on the online 
marketplace; and 
‘‘(B) the Administrator establishes proce-
dures to implement subparagraph (A) and noti-
fies Congress at least 30 days before imple-
menting such procedures.’’; 
(2) in subsection (h), by striking paragraph (3) 
and inserting the following: 
‘‘(3) agree not to use, for pricing, marketing, 
competitive, or other purposes, any information, in-
cluding any Government-owned data, such as pur-
chasing trends or spending habits, related to a prod-
uct from a third-party supplier featured on the com-
mercial e-commerce portal or the transaction of such 
product, except as necessary to comply with the re-
quirements of the program established in subsection 
(a).’’; 
(3) by redesignating subsections (j) and (k) as 
subsections (k) and (l), respectively; and 
(4) by inserting after subsection (i) the fol-
lowing new subsection: 
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‘‘(j) 
MICRO-PURCHASE
THRESHOLD.—Notwith-
standing section 2338 of title 10, United States Code, and 
section 1902 of title 41, United States Code, the micro- 
purchase threshold for a procurement of a product 
through a commercial e-commerce portal used under the 
program established under subsection (a) is $25,000.’’. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the implementation of any e-commerce por-
tal under such section 846 to procure commercial 
products will be done in a manner that will enhance 
competition, expedite procurement, and ensure rea-
sonable pricing of commercial products; 
(2) the implementation of the e-commerce por-
tal will be completed with multiple contracts with 
multiple commercial e-commerce portal providers; 
and 
(3) the Administrator of the General Services 
Administration should require any e-commerce por-
tal provider to take the necessary precautions to 
safeguard data of all other e-commerce portal pro-
viders and any third-party suppliers. 
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SEC. 835. REVIEW OF FEDERAL ACQUISITION REGULA-
TIONS ON COMMERCIAL PRODUCTS, COM-
MERCIAL SERVICES, AND COMMERCIALLY 
AVAILABLE OFF-THE-SHELF ITEMS. 
(a) REVIEW OF DETERMINATIONS NOT TO EXEMPT 
CONTRACTS FOR COMMERCIAL PRODUCTS, COMMERCIAL 
SERVICES, AND COMMERCIALLY AVAILABLE OFF-THE- 
SHELF ITEMS FROM CERTAIN LAWS
AND REGULA-
TIONS.—Not later than 1 year after the date of the enact-
ment of this Act, the Federal Acquisition Regulatory 
Council shall— 
(1) review each determination of the Federal 
Acquisition Regulatory Council pursuant to section 
1906(b)(2), 
section 
1906(c)(3), 
or 
section 
1907(a)(2) of title 41, United States Code, not to 
exempt contracts or subcontracts from laws which 
such contracts and subcontracts would otherwise be 
exempt from under section 1906(d) of title 41, 
United States Code; and 
(2) propose revisions to the Federal Acquisition 
Regulation to provide an exemption from each law 
subject to such determination unless the Council de-
termines that there is a specific reason not to pro-
vide the exemptions pursuant to section 1906 of 
such title or the Administrator for Federal Procure-
ment Policy determines there is a specific reason not 
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to provide the exemption pursuant to section 1907 
of such title. 
(b) REVIEW OF CERTAIN CONTRACT CLAUSE RE-
QUIREMENTS APPLICABLE TO COMMERCIAL PRODUCTS 
AND COMMERCIAL SERVICES CONTRACTS.—Not later 
than 1 year after the date of the enactment of this Act, 
the Federal Acquisition Regulatory Council shall— 
(1) review the Federal Acquisition Regulation 
to assess all regulations that require a specific con-
tract clause for a contract using commercial product 
or commercial services acquisition procedures under 
part 12 of the Federal Acquisition Regulation, ex-
cept for regulations required by law or Executive 
order; and 
(2) propose revisions to the Federal Acquisition 
Regulation to eliminate regulations reviewed under 
paragraph (1) unless the Federal Acquisition Regu-
latory Council determines on a case-by-case basis 
that there is a specific reason not to eliminate the 
regulation. 
(c) ELIMINATION OF CERTAIN CONTRACT CLAUSE 
REGULATIONS APPLICABLE TO COMMERCIALLY AVAIL-
ABLE OFF-THE-SHELF ITEM SUBCONTRACTS.—Not later 
than 1 year after the date of the enactment of this Act, 
the Federal Acquisition Regulatory Council shall— 
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(1) review the Federal Acquisition Regulation 
to assess all regulations that require a prime con-
tractor to include a specific contract clause in a sub-
contract for commercially available off-the-shelf 
items unless the inclusion of such clause is required 
by law or Executive order; and 
(2) propose revisions to the Federal Acquisition 
Regulation to eliminate regulations reviewed under 
paragraph (1) unless the Federal Acquisition Regu-
latory Council determines on a case-by-case basis 
that there is a specific reason not to eliminate the 
regulation. 
Subtitle D—Industrial Base 
Matters 
SEC. 841. REQUIREMENT THAT CERTAIN SHIP COMPO-
NENTS 
BE 
MANUFACTURED 
IN 
THE 
NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) ADDITIONAL PROCUREMENT LIMITATION.—Sec-
tion 2534(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(6) COMPONENTS
FOR
AUXILIARY
SHIPS.— 
Subject to subsection (k), the following components: 
‘‘(A) 
Auxiliary 
equipment, 
including 
pumps, for all shipboard services. 
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‘‘(B) Propulsion system components, in-
cluding engines, reduction gears, and propellers. 
‘‘(C) Shipboard cranes. 
‘‘(D) Spreaders for shipboard cranes.’’. 
(b) IMPLEMENTATION.—Such section is further 
amended by adding at the end the following new sub-
section: 
‘‘(k) IMPLEMENTATION OF AUXILIARY SHIP COMPO-
NENT LIMITATION.—Subsection (a)(6) applies only with 
respect to contracts awarded by the Secretary of a military 
department for new construction of an auxiliary ship after 
the date of the enactment of the National Defense Author-
ization Act for Fiscal Year 2019 using funds available for 
National Defense Sealift Fund programs or Shipbuilding 
and Conversion, Navy. For purposes of this subsection, 
the term ‘auxiliary ship’ does not include an icebreaker.’’. 
SEC. 842. REPORT ON DOMESTIC SOURCING OF SPECIFIC 
COMPONENTS FOR ALL NAVAL VESSELS. 
Not later than March 1, 2019, the Secretary of the 
Navy shall submit to the congressional defense committees 
a report that provides a market survey and cost assess-
ment associated with limiting competition to domestic 
sources for— 
(1) naval vessel components listed in section 
2534(a)(3) of title 10, United States Code; 
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(2) expanding such list to include all ships au-
thorized using funds available for Shipbuilding and 
Conversion, Navy and Other Procurement, Navy; 
and 
(3) expanding such list to include waterjet ma-
rine propulsion systems, azimuth thrusters, and bow 
thrusters for all ships authorized using funds avail-
able for Shipbuilding and Conversion, Navy and 
Other Procurement, Navy. 
SEC. 843. REMOVAL OF NATIONAL INTEREST DETERMINA-
TION REQUIREMENTS FOR CERTAIN ENTI-
TIES. 
(a) IN GENERAL.—Effective October 1, 2020, a cov-
ered NTIB entity operating under a special security agree-
ment pursuant to the National Industrial Security Pro-
gram shall not be required to obtain a national interest 
determination as a condition for access to proscribed infor-
mation. 
(b) ACCELERATION AUTHORIZED.—Notwithstanding 
the effective date of this section, the Secretary of Defense, 
in consultation with the Director of the Information Secu-
rity Oversight Office, may waive the requirement to obtain 
a national interest determination for a covered NTIB enti-
ty operating under such a special security agreement that 
has— 
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(1) a demonstrated successful record of compli-
ance with the National Industrial Security Program; 
and 
(2) previously been approved for access to pro-
scribed information. 
(c) DEFINITIONS.—In this section: 
(1) COVERED NTIB ENTITY.—The term ‘‘cov-
ered NTIB entity’’ means a person that is a sub-
sidiary located in the United States— 
(A) for which the ultimate parent company 
and any intermediate parent companies of such 
subsidiary are located in a country that is part 
of the national technology and industrial base 
(as defined in section 2500 of title 10, United 
States Code); and 
(B) that is subject to the foreign owner-
ship, control, or influence requirements of the 
National Industrial Security Program. 
(2) PROSCRIBED
INFORMATION.—The term 
‘‘proscribed information’’ means information that 
is— 
(A) classified at the level of top secret; 
(B) communications security information 
(excluding controlled cryptographic items when 
un-keyed or utilized with unclassified keys); 
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(C) restricted data (as defined in section 
11 of the Atomic Energy Act of 1954 (42 
U.S.C. 2014)); 
(D) special access program information 
under section 4.3 of Executive Order No. 
13526 (75 Fed. Reg. 707; 50 U.S.C. 3161 
note) or successor order; or 
(E) designated as sensitive compartmented 
information. 
SEC. 844. PILOT PROGRAM TO TEST MACHINE-VISION 
TECHNOLOGIES TO DETERMINE THE AU-
THENTICITY AND SECURITY OF MICROELEC-
TRONIC PARTS IN WEAPON SYSTEMS. 
(a) PILOT PROGRAM AUTHORIZED.—The Undersec-
retary of Defense for Research and Engineering, in coordi-
nation with the Defense Microelectronics Activity, shall es-
tablish a pilot program to test the feasibility and reliability 
of using machine-vision technologies to determine the au-
thenticity and security of microelectronic parts in weapon 
systems. 
(b) OBJECTIVES OF PILOT PROGRAM.—The Under-
secretary of Defense for Research and Engineering, in co-
ordination with the Defense Microelectronics Activity, 
shall design any pilot program conducted under this sec-
tion to determine the following: 
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(1) The effectiveness and technology readiness 
level of machine-vision technologies to determine the 
authenticity of microelectronic parts at the time of 
the creation of such part through final insertion of 
such part into weapon systems. 
(2) The best method of incorporating machine- 
vision technologies into the process of developing, 
transporting, and inserting microelectronics into 
weapon systems. 
(3) The rules, regulations, or processes that 
hinder the development and incorporation of ma-
chine-vision technologies, and the application of such 
rules, regulations, or processes to mitigate counter-
feit microelectronics proliferation throughout the De-
partment of Defense. 
(c) CONSULTATION.—To develop the pilot program 
under this section, the Undersecretary of Defense for Re-
search and Engineering, in coordination with the Defense 
Microelectronics Activity, may consult with the following 
entities: 
(1) Manufacturers of semiconductors or elec-
tronics. 
(2) Industry associations relating to semi-
conductors or electronics. 
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(3) Original equipment manufacturers of prod-
ucts for the Department of Defense. 
(4) Nontraditional defense contractors (as de-
fined in section 2302(9) of title 10, United States 
Code) that are machine vision companies. 
(5) Federal laboratories (as defined in section 
2500(5) of title 10, United States Code). 
(6) Other elements of the Department of De-
fense that fall under the authority of the Undersec-
retary of Defense for Research and Engineering. 
(d) COMMENCEMENT
AND DURATION.—The pilot 
program established under this section shall be established 
not later than April 1, 2019, and all activities under such 
pilot program shall terminate not later than December 31, 
2020. 
SEC. 845. SECURITY OF DEPARTMENT OF DEFENSE TELE-
COMMUNICATION SERVICES. 
In awarding contracts for telecommunication services 
or installation of telecommunication infrastructure on 
military installations located in the United States or its 
territories, the Secretary of Defense shall give preference 
to American-owned and -operated companies. 
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SEC. 846. SENSE OF CONGRESS ON UNMANNED GROUND 
VEHICLE TECHNOLOGY. 
It is the sense of Congress that design, manufac-
turing, and repair of the technology in unmanned ground 
vehicles is critical to national security. To that end, the 
national technology and industrial base periodic defense 
capability assessments required under section 2505 of title 
10, United States Code, as well as the national security 
strategy for the national technology and industrial base 
required under section 2501 of such title, should include 
the unmanned ground vehicles industry. 
Subtitle E—Small Business Matters 
SEC. 851. DEPARTMENT OF DEFENSE SMALL BUSINESS 
STRATEGY. 
(a) IN GENERAL.—Chapter 136 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 2283. Department of Defense small business strat-
egy 
‘‘(a) IN GENERAL.—The Secretary of Defense shall 
implement a small business strategy for the Department 
of Defense that meets the requirements of this section. 
‘‘(b) UNIFIED MANAGEMENT STRUCTURE.—As part 
of the small business strategy described in subsection (a), 
the Secretary shall ensure that there is a unified manage-
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ment structure within the Department for the functions 
of the Department relating to— 
‘‘(1) programs and activities related to small 
business concerns (as defined in section 3 of the 
Small Business Act); 
‘‘(2) manufacturing and industrial base policy; 
and 
‘‘(3) any procurement technical assistance pro-
gram established under chapter 142 of this title. 
‘‘(c) PURPOSE OF SMALL BUSINESS PROGRAMS.— 
The Secretary shall ensure that programs and activities 
of the Department of Defense related to small business 
concerns are carried out so as to further national defense 
programs and priorities and the statements of purpose for 
Department of Defense acquisition set forth in section 801 
of the National Defense Authorization Act for Fiscal Year 
2018 (Public Law 115–91; 131 Stat. 1449). 
‘‘(d) POINTS OF ENTRY INTO DEFENSE MARKET.— 
The Secretary shall ensure— 
‘‘(1) that opportunities for small business con-
cerns to contract with the Department of Defense 
are identified clearly; and 
‘‘(2) that small business concerns are able to 
have access to program managers, contracting offi-
cers, and other persons using the products or serv-
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ices of such concern to the extent necessary to in-
form such persons of emerging and existing capabili-
ties of such concerns. 
‘‘(e) ENHANCED OUTREACH UNDER PROCUREMENT 
TECHNICAL ASSISTANCE PROGRAM MARKET.—The Sec-
retary shall enable and promote activities to provide co-
ordinated outreach to small business concerns through any 
procurement technical assistance program established 
under chapter 142 of this title to facilitate small business 
contracting with the Department of Defense.’’. 
(b) IMPLEMENTATION.— 
(1) DEADLINE.—The Secretary of Defense shall 
develop the small business strategy required by sec-
tion 2283 of title 10, United States Code, as added 
by subsection (a), not later than 180 days after the 
date of the enactment of this Act. 
(2) NOTICE TO CONGRESS AND PUBLICATION.— 
Upon completion of the development of the small 
business strategy pursuant to paragraph (1), the 
Secretary shall— 
(A) transmit the strategy to Congress; and 
(B) publish the strategy on a public 
website of the Department of Defense. 
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(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘2283. Department of Defense small business strategy.’’. 
SEC. 852. PROMPT PAYMENTS OF SMALL BUSINESS CON-
TRACTORS. 
Section 2307(a) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; 
(2) by striking ‘‘The head of any agency may— 
’’ and inserting ‘‘(1) The head of any agency may’’; 
and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2)(A) For a prime contractor (as defined in section 
8701 of title 41) that is a small business concern (as de-
fined in section 3 of the Small Business Act (15 U.S.C. 
632)), the head of an agency shall, to the fullest extent 
permitted by law, establish an accelerated payment date 
with a goal of 15 days after receipt of a proper invoice 
for the amount due if a specific payment date is not estab-
lished by contract. 
‘‘(B) For a prime contractor that subcontracts with 
a small business concern, the head of an agency shall, to 
the fullest extent permitted by law, establish an acceler-
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ated payment date with a goal of 15 days after receipt 
of a proper invoice for the amount due if— 
‘‘(i) a specific payment date is not established 
by contract; and 
‘‘(ii) the prime contractor agrees to make pay-
ments to the subcontractor in accordance with the 
accelerated payment date, to the maximum extent 
practicable, without any further consideration from 
or fees charged to the subcontractor.’’. 
SEC. 853. INCREASED PARTICIPATION IN THE SMALL BUSI-
NESS ADMINISTRATION MICROLOAN PRO-
GRAM. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘intermediary’’ has the meaning 
given that term in section 7(m)(11) of the Small 
Business Act (15 U.S.C. 636(m)(11)); and 
(2) the term ‘‘microloan program’’ means the 
program established under section 7(m) of the Small 
Business Act (15 U.S.C. 636(m)). 
(b) MICROLOAN INTERMEDIARY LENDING LIMIT IN-
CREASED.—Section 7(m)(3)(C) of the Small Business Act 
(15 U.S.C. 636(m)(3)(C)) is amended by striking 
‘‘$5,000,000’’ and inserting ‘‘$6,000,000’’. 
(c) MICROLOAN TECHNICAL ASSISTANCE.—Section 
7(m)(4)(E) of the Small Business Act (15 U.S.C. 
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636(m)(4)(E)) is amended by striking ‘‘25 percent’’ each 
place such term appears and inserting ‘‘50 percent’’. 
(d) SBA STUDY OF MICROENTERPRISE PARTICIPA-
TION.—Not later than 1 year after the date of enactment 
of this section, the Administrator of the Small Business 
Administration shall conduct a study and submit to the 
Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of the 
House of Representatives a report on— 
(1) the operations (including services provided, 
structure, size, and area of operation) of a rep-
resentative sample of— 
(A) intermediaries that are eligible to par-
ticipate in the microloan program and that do 
participate; and 
(B) intermediaries that are eligible to par-
ticipate in the microloan program and that do 
not participate; 
(2) the reasons why eligible intermediaries de-
scribed in paragraph (1)(B) choose not to partici-
pate in the microloan program; 
(3) recommendations on how to encourage in-
creased participation in the microloan program by 
eligible 
intermediaries 
described 
in 
paragraph 
(1)(B); and 
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(4) recommendations on how to decrease the 
costs associated with participation in the microloan 
program for eligible intermediaries. 
(e) GAO STUDY
ON MICROLOAN INTERMEDIARY 
PRACTICES.—Not later than 1 year after the date of en-
actment of this section, the Comptroller General of the 
United States shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representa-
tives a report evaluating— 
(1) oversight of the microloan program by the 
Small Business Administration, including oversight 
of intermediaries participating in the microloan pro-
gram; and 
(2) the specific processes used by the Small 
Business Administration to ensure— 
(A) compliance by intermediaries partici-
pating in the microloan program; and 
(B) 
the 
overall 
performance 
of 
the 
microloan program. 
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SEC. 854. AMENDMENTS TO SMALL BUSINESS INNOVATION 
RESEARCH PROGRAM AND SMALL BUSINESS 
TECHNOLOGY TRANSFER PROGRAM. 
(a) USE OF SBIR OR STTR FUNDING FOR ADMINIS-
TRATIVE COSTS.—Section 9 of the Small Business Act (15 
U.S.C. 638) is amended— 
(1) in subsection (f)— 
(A) in paragraph (2), by striking ‘‘shall 
not’’ and all that follows through ‘‘make avail-
able’’ and inserting ‘‘shall not make available’’; 
and 
(B) by adding at the end the following new 
paragraph: 
‘‘(5) ADMINISTRATIVE COSTS.—A Federal agen-
cy may use up to 3 percent of its SBIR budget es-
tablished pursuant to paragraph (1) for the purpose 
of funding administrative costs of the program.’’; 
and 
(2) in subsection (n)— 
(A) in paragraph (2), by striking ‘‘shall 
not’’ and all that follows through ‘‘make avail-
able’’ and inserting ‘‘shall not make available’’; 
and 
(B) by adding at the end the following new 
paragraph: 
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‘‘(4) ADMINISTRATIVE COSTS.—A Federal agen-
cy may use up to 3 percent of its SBIR budget es-
tablished pursuant to paragraph (1) for the purpose 
of funding administrative costs of the program.’’. 
(b) EXPANSION OF PHASE FLEXIBILITY.—Section 
9(cc) of such Act (15 U.S.C. 638(cc)) is amended by strik-
ing ‘‘During fiscal years’’ and all that follows through 
‘‘may each provide’’ and inserting ‘‘During fiscal years 
2018 through 2022, all agencies participating in the SBIR 
program may provide’’. 
(c) IMPROVEMENTS TO TECHNICAL AND BUSINESS 
ASSISTANCE.—Section 9(q) of the Small Business Act (15 
U.S.C. 638(q)) is amended— 
(1) in the subsection heading, by inserting 
‘‘AND BUSINESS’’ after ‘‘TECHNICAL’’; 
(2) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A)— 
(i) by striking ‘‘a vendor selected 
under paragraph (2)’’ and inserting ‘‘1 or 
more vendors selected under paragraph 
(2)(A)’’; 
(ii) by inserting ‘‘and business’’ before 
‘‘assistance services’’; and 
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(iii) by inserting ‘‘assistance with 
product sales, intellectual property protec-
tions, market research, market validation, 
and development of regulatory plans and 
manufacturing 
plans,’’ 
after 
‘‘tech-
nologies,’’; and 
(B) in subparagraph (D), by inserting ‘‘, 
including intellectual property protections’’ be-
fore the period at the end; 
(3) in paragraph (2)— 
(A) by striking ‘‘Each agency may select a 
vendor to assist small business concerns to 
meet’’ and inserting the following: 
‘‘(A) IN GENERAL.—Each agency may se-
lect 1 or more vendors from which small busi-
ness concerns may obtain assistance in meet-
ing’’; and 
(B) by adding at the end the following: 
‘‘(B) SELECTION
BY
SMALL
BUSINESS 
CONCERN.—A small business concern may, by 
contract or otherwise, select 1 or more vendors 
to assist the small business concern in meeting 
the goals listed in paragraph (1).’’; and 
(4) in paragraph (3)— 
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(A) by inserting ‘‘(A)’’ after ‘‘paragraph 
(2)’’ each place it appears; 
(B) in subparagraph (A), by striking 
‘‘$5,000 per year’’ each place it appears and in-
serting ‘‘$6,500 per year’’; 
(C) in subparagraph (B)— 
(i) by striking ‘‘$5,000 per year’’ each 
place it appears and inserting ‘‘$50,000 
per project’’; and 
(ii) in clause (ii), by striking ‘‘which 
shall be in addition to the amount of the 
recipient’s award’’ and inserting ‘‘which 
may, as determined appropriate by the 
head of the agency, be included as part of 
the recipient’s award or be in addition to 
the amount of the recipient’s award’’; 
(D) in subparagraph (C)— 
(i) by inserting ‘‘or business’’ after 
‘‘technical’’; 
(ii) by striking ‘‘the vendor’’ and in-
serting ‘‘a vendor’’; and 
(iii) by adding at the end the fol-
lowing: ‘‘Business-related services aimed at 
improving the commercialization success of 
a small business concern may be obtained 
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from an entity, such as a public or private 
organization or an agency of or other enti-
ty established or funded by a State that fa-
cilitates or accelerates the commercializa-
tion of technologies or assists in the cre-
ation and growth of private enterprises 
that are commercializing technology.’’; 
(E) in subparagraph (D)— 
(i) by inserting ‘‘or business’’ after 
‘‘technical’’ each place it appears; and 
(ii) in clause (i), by striking ‘‘the ven-
dor’’ and inserting ‘‘1 or more vendors’’; 
and 
(F) by adding at the end the following: 
‘‘(E) MULTIPLE AWARD RECIPIENTS.—The 
Administrator shall establish a limit on the 
amount of technical and business assistance 
services that may be received or purchased 
under subparagraph (B) by a small business 
concern that has received multiple Phase II 
SBIR or STTR awards for a fiscal year.’’. 
SEC. 855. CONSTRUCTION CONTRACT ADMINISTRATION. 
Section 15 of the Small Business Act (15 U.S.C. 644) 
is amended by adding at the end the following new sub-
section: 
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‘‘(w) SOLICITATION NOTICE REGARDING ADMINIS-
TRATION OF CHANGE ORDERS FOR CONSTRUCTION.— 
‘‘(1) IN GENERAL.—With respect to any solici-
tation for the award of a contract for construction 
anticipated to be awarded to a small business con-
cern, the agency administering such contract shall 
provide a notice along with the solicitation to pro-
spective bidders and offerors that includes— 
‘‘(A) information about the agency’s poli-
cies or practices in complying with the require-
ments of the Federal Acquisition Regulation re-
lating to the timely definitization of requests for 
an equitable adjustment; and 
‘‘(B) information about the agency’s past 
performance in definitizing requests for equi-
table adjustments in accordance with paragraph 
(2). 
‘‘(2) 
REQUIREMENTS
FOR
AGENCIES.—An 
agency shall provide the past performance informa-
tion described under paragraph (1)(B) as follows: 
‘‘(A) For the 3-year period preceding the 
issuance of the notice, to the extent such infor-
mation is available. 
‘‘(B) With respect to an agency that, on 
the date of the enactment of this subsection, 
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has not compiled the information described 
under paragraph (1)(B)— 
‘‘(i) beginning 1 year after the date of 
the enactment of this subsection, for the 1- 
year period preceding the issuance of the 
notice; 
‘‘(ii) beginning 2 years after the date 
of the enactment of this subsection, for the 
2-year period preceding the issuance of the 
notice; and 
‘‘(iii) beginning 3 years after the date 
of the enactment of this subsection and 
each year thereafter, for the 3-year period 
preceding the issuance of the notice. 
‘‘(3) FORMAT OF PAST PERFORMANCE INFOR-
MATION.—In the notice required under paragraph 
(1), the agency shall ensure that the past perform-
ance information described under paragraph (1)(B) 
is set forth separately for each definitization action 
that was completed during the following periods: 
‘‘(A) Not more than 30 days after receipt 
of a request for an equitable adjustment. 
‘‘(B) Not more than 60 days after receipt 
of a request for an equitable adjustment. 
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‘‘(C) Not more than 90 days after receipt 
of a request for an equitable adjustment. 
‘‘(D) Not more than 180 days after receipt 
of a request for an equitable adjustment. 
‘‘(E) More than 365 days after receipt of 
a request for an equitable adjustment. 
‘‘(F) After the completion of the perform-
ance of the contract through a contract modi-
fication addressing all undefinitized requests for 
an equitable adjustment received during the 
term of the contract.’’. 
SEC. 856. BROADBAND AND EMERGING INFORMATION 
TECHNOLOGY COORDINATOR. 
(a) IN GENERAL.—The Small Business Act (15 
U.S.C. 631 et seq.) is amended— 
(1) by redesignating section 47 as section 48; 
and 
(2) by inserting after section 46 the following: 
‘‘SEC. 47. BROADBAND AND EMERGING INFORMATION 
TECHNOLOGY. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘OII Associate Administrator’ 
means the Associate Administrator for the Office of 
Investment and Innovation; and 
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‘‘(2) the term ‘broadband and emerging infor-
mation technology coordinator’ means the employee 
designated to carry out the broadband and emerging 
information technology coordination responsibilities 
of the Administration under subsection (b)(1). 
‘‘(b) ASSIGNMENT OF COORDINATOR.— 
‘‘(1) ASSIGNMENT OF COORDINATOR.—The OII 
Associate Administrator shall designate a senior em-
ployee of the Office of Investment and Innovation to 
serve as the broadband and emerging information 
technology coordinator, who— 
‘‘(A) shall report to the OII Associate Ad-
ministrator; 
‘‘(B) shall work in coordination with— 
‘‘(i) the chief information officer, the 
chief technology officer, and the head of 
the Office of Technology of the Adminis-
tration; and 
‘‘(ii) any other Associate Adminis-
trator of the Administration determined 
appropriate by the OII Associate Adminis-
trator; 
‘‘(C) has experience developing and imple-
menting telecommunications policy in the pri-
vate sector or government; and 
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‘‘(D) has demonstrated significant experi-
ence in the area of broadband or emerging in-
formation technology. 
‘‘(2) RESPONSIBILITIES
OF
COORDINATOR.— 
The broadband and emerging information technology 
coordinator shall— 
‘‘(A) coordinate programs of the Adminis-
tration that assist small business concerns in 
adopting, making innovations in, and using 
broadband and other emerging information 
technologies; 
‘‘(B) serve as the primary liaison of the 
Administration to other Federal agencies in-
volved in broadband and emerging information 
technology policy, including the Department of 
Commerce, the Department of Agriculture, and 
the Federal Communications Commission; 
‘‘(C) identify best practices relating to 
broadband and emerging information tech-
nology that may benefit small business con-
cerns; and 
‘‘(D) identify and catalog tools and train-
ing available through the resource partners of 
the Administration that assist small business 
concerns in adopting, making innovations in, 
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and using broadband and emerging tech-
nologies. 
‘‘(3) TRAVEL.—Not more than 20 percent of 
the hours of service by the broadband and emerging 
information technology coordinator during any fiscal 
year shall consist of travel outside the United States 
to perform official duties. 
‘‘(c) BROADBAND
AND
EMERGING
TECHNOLOGY 
TRAINING.— 
‘‘(1) TRAINING.—The OII Associate Adminis-
trator shall provide to employees of the Administra-
tion training that— 
‘‘(A) familiarizes employees of the Admin-
istration with broadband and other emerging 
information technologies; 
‘‘(B) includes— 
‘‘(i) instruction on counseling small 
business 
concerns 
regarding 
adopting, 
making 
innovations 
in, 
and 
using 
broadband and other emerging information 
technologies; and 
‘‘(ii) information on programs of the 
Federal Government that provide assist-
ance to small business concerns relating to 
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broadband and emerging information tech-
nologies; and 
‘‘(C) to maximum extent practicable, uses 
the tools and training cataloged and identified 
under subsection (b)(2)(D). 
‘‘(2) FUNDING.—The Administrator shall use 
funds made available to the Office of Investment 
and Innovation to carry out this subsection. 
‘‘(d) REPORTS.— 
‘‘(1) BIENNIAL REPORT ON ACTIVITIES.—Not 
later than 2 years after the date on which the OII 
Associate Administrator makes the first designation 
of an employee under subsection (b), and every 2 
years thereafter, the broadband and emerging infor-
mation technology coordinator shall submit to the 
Committee on Small Business and Entrepreneurship 
of the Senate and the Committee on Small Business 
of the House of Representatives a report regarding 
the programs and activities of the Administration re-
lating to broadband and other emerging information 
technologies. 
‘‘(2) IMPACT OF BROADBAND SPEED AND PRICE 
ON SMALL BUSINESSES.— 
‘‘(A) IN GENERAL.—Subject to appropria-
tions, the Chief Counsel for Advocacy shall con-
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duct 
a 
study 
evaluating 
the 
impact 
of 
broadband speed and price on small business 
concerns. 
‘‘(B) REPORT.—Not later than 3 years 
after the date of enactment of the Small Busi-
ness Broadband and Emerging Information 
Technology Enhancement Act of 2017, the 
Chief Counsel for Advocacy shall submit to the 
Committee on Commerce, Science, and Trans-
portation and the Committee on Small Business 
and Entrepreneurship of the Senate and the 
Committee on Energy and Commerce and the 
Committee on Small Business of the House of 
Representatives a report on the results of the 
study under subparagraph (A), including— 
‘‘(i) a survey of broadband speeds 
available to small business concerns; 
‘‘(ii) a survey of the cost of broadband 
speeds available to small business con-
cerns; 
‘‘(iii) a survey of the type of 
broadband technology used by small busi-
ness concerns; and 
‘‘(iv) any policy recommendations that 
may improve the access of small business 
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concerns to comparable broadband services 
at comparable rates in all regions of the 
United States.’’. 
(b) ENTREPRENEURIAL
DEVELOPMENT.—Section 
21(c)(3)(B) of the Small Business Act (15 U.S.C. 
648(c)(3)(B)) is amended— 
(1) in the matter preceding clause (i), by insert-
ing ‘‘accessing broadband and other emerging infor-
mation technology,’’ after ‘‘technology transfer,’’; 
(2) in clause (ii), by striking ‘‘and’’ at the end; 
(3) in clause (iii), by adding ‘‘and’’ at the end; 
and 
(4) by adding at the end the following: 
‘‘(iv) increasing the competitiveness and 
productivity of small business concerns by as-
sisting owners of such concerns in accessing 
broadband and other emerging information 
technology;’’. 
SEC. 857. AMENDMENTS TO THE SMALL BUSINESS INVEST-
MENT ACT OF 1958. 
(a) INVESTMENT IN SMALL BUSINESS INVESTMENT 
COMPANIES.—Section 302(b) of the Small Business In-
vestment Act of 1958 (15 U.S.C. 682(b)) is amended— 
(1) in paragraph (1), by inserting before the pe-
riod the following: ‘‘or, subject to the approval of the 
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appropriate Federal banking agency, 15 percent of 
such capital and surplus’’; 
(2) in paragraph (2), by inserting before the pe-
riod the following: ‘‘or, subject to the approval of the 
appropriate Federal banking agency, 15 percent of 
such capital and surplus’’; and 
(3) by adding at the end the following: 
‘‘(3) APPROPRIATE FEDERAL BANKING AGENCY 
DEFINED.—For purposes of this subsection, the 
term ‘appropriate Federal banking agency’ has the 
meaning given that term under section 3 of the Fed-
eral Deposit Insurance Act.’’. 
(b) INCREASE TO MAXIMUM LEVERAGE LIMIT.—Sec-
tion 303(b)(2)(A)(ii) of the Small Business Investment 
Act of 1958 (15 U.S.C. 683(b)(2)(A)(ii)) is amended by 
striking ‘‘$150,000,000’’ and inserting ‘‘$175,000,000’’. 
SEC. 858. CONSOLIDATED BUDGET JUSTIFICATION FOR 
THE DEPARTMENT OF DEFENSE SMALL BUSI-
NESS INNOVATION RESEARCH PROGRAM AND 
SMALL BUSINESS TECHNOLOGY TRANSFER 
PROGRAM. 
(a) SUBMISSION WITH ANNUAL BUDGET JUSTIFICA-
TION DOCUMENTS.—The Secretary of Defense, acting 
through the Under Secretary of Defense for Research and 
Engineering, shall include in the materials submitted to 
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Congress by the Secretary of Defense in support of the 
budget of the President for each fiscal year (as submitted 
to Congress under section 1105 of title 31, United States 
Code) a budget justification for all activities conducted 
under a Small Business Innovation Research Program or 
Small Business Technology Transfer Program (as such 
terms are defined, respectively, in section 9(e) of the Small 
Business Act (15 U.S.C. 638(e))) of the Department of 
Defense during the previous fiscal year. 
(b) REQUIREMENTS
FOR BUDGET DISPLAY.—The 
budget justification under subsection (a) shall include— 
(1) the amount obligated or expended, by ap-
propriation and functional area, for each activity 
conducted under a Small Business Innovation Re-
search Program or Small Business Technology 
Transfer Program, with supporting narrative de-
scriptions and rationale for the funding levels; and 
(2) a summary and estimate of funding re-
quired during the period covered by the current fu-
ture-years defense program (as defined under section 
221 of title 10, United States Code). 
(c) TERMINATION.—The requirements of this section 
shall terminate on December 31, 2022. 
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SEC. 859. FUNDING FOR PROCUREMENT TECHNICAL AS-
SISTANCE PROGRAM. 
(a) AMOUNT OF ASSISTANCE FROM SECRETARY.— 
Section 2413(b) of title 10, United States Code, is amend-
ed— 
(1) by striking ‘‘not more than 65 percent’’ and 
inserting ‘‘not more than 75 percent’’; and 
(2) in paragraph (1), by striking ‘‘more than 65 
percent, but not more than 75 percent’’ and insert-
ing ‘‘more than 75 percent, but not more than 85 
percent’’. 
(b) FUNDING
FOR ELIGIBLE ENTITIES.—Section 
2414(a) of such title is amended— 
(1) in paragraph (1), by striking ‘‘$750,000’’ 
and inserting ‘‘$1,000,000’’; 
(2) in paragraph (2), by striking ‘‘$450,000’’ 
and inserting ‘‘$750,000’’; 
(3) in paragraph (3), by striking ‘‘$300,000’’ 
and inserting ‘‘$450,000’’; and 
(4) in paragraph (4), by striking ‘‘$750,000’’ 
and inserting ‘‘$1,000,000’’. 
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SEC. 860. EXEMPTION OF CERTAIN CONTRACTS FROM THE 
PERIODIC INFLATION ADJUSTMENTS TO THE 
ACQUISITION-RELATED 
DOLLAR 
THRESH-
OLD. 
Subparagraph (B) of section 1908(b)(2) of title 41, 
United States Code, is amended by inserting ‘‘3131 to 
3134,’’ after ‘‘sections’’. 
SEC. 861. SCORE. 
(a) SCORE REAUTHORIZATION.—Section 20 of the 
Small Business Act (15 U.S.C. 631 note) is amended— 
(1) by redesignating subsection (j) as sub-
section (f); and 
(2) by adding at the end the following: 
‘‘(g) SCORE PROGRAM.—There are authorized to be 
appropriated to the Administrator to carry out the 
SCORE program authorized by section 8(b)(1) such sums 
as are necessary for the Administrator to make grants or 
enter into cooperative agreements in a total amount that 
does not exceed $10,500,000 in each of fiscal years 2018 
and 2019.’’. 
(b) SCORE PROGRAM.—Section 8 of the Small Busi-
ness Act (15 U.S.C. 637) is amended— 
(1) in subsection (b)(1)(B), by striking ‘‘a Serv-
ice Corps of Retired Executives (SCORE)’’ and in-
serting ‘‘the SCORE program described in sub-
section (c)’’; and 
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(2) by striking subsection (c) and inserting the 
following: 
‘‘(c) SCORE PROGRAM.— 
‘‘(1) DEFINITION.—In this subsection: 
‘‘(A) SCORE 
ASSOCIATION.—The term 
‘SCORE Association’ means the Service Corps 
of Retired Executives Association or any suc-
cessor or other organization who receives a 
grant from the Administrator to operate the 
SCORE program under paragraph (2)(A). 
‘‘(B) 
SCORE 
PROGRAM.—The 
term 
‘SCORE program’ means the SCORE program 
authorized by subsection (b)(1)(B). 
‘‘(2) MANAGEMENT AND VOLUNTEERS.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall provide a grant to the SCORE Association 
to manage the SCORE program. 
‘‘(B) VOLUNTEERS.—A volunteer partici-
pating in the SCORE program shall— 
‘‘(i) based on the business experience 
and knowledge of the volunteer— 
‘‘(I) provide at no cost to individ-
uals who own, or aspire to own, small 
business concerns personal counseling, 
mentoring, and coaching relating to 
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the process of starting, expanding, 
managing, buying, and selling a busi-
ness; and 
‘‘(II) facilitate low-cost education 
workshops for individuals who own, or 
aspire to own, small business con-
cerns; and 
‘‘(ii) as appropriate, use tools, re-
sources, and expertise of other organiza-
tions to carry out the SCORE program. 
‘‘(3) PLANS AND GOALS.—The Administrator, 
in consultation with the SCORE Association, shall 
ensure that the SCORE program and each chapter 
of the SCORE program develop and implement 
plans and goals to more effectively and efficiently 
provide services to individuals in rural areas, eco-
nomically disadvantaged communities, and other tra-
ditionally underserved communities, including plans 
for electronic initiatives, web-based initiatives, chap-
ter expansion, partnerships, and the development of 
new skills by volunteers participating in the SCORE 
program. 
‘‘(4) ANNUAL REPORT.—The SCORE Associa-
tion shall submit to the Administrator an annual re-
port that contains— 
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‘‘(A) the number of individuals counseled 
or trained under the SCORE program; 
‘‘(B) the number of hours of counseling 
provided under the SCORE program; and 
‘‘(C) to the extent possible— 
‘‘(i) the number of small business con-
cerns formed with assistance from the 
SCORE program; 
‘‘(ii) the number of small business 
concerns expanded with assistance from 
the SCORE program; and 
‘‘(iii) the number of jobs created with 
assistance from the SCORE program. 
‘‘(5) PRIVACY REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Neither the Adminis-
trator nor the SCORE Association may disclose 
the name, address, or telephone number of any 
individual or small business concern receiving 
assistance from the SCORE Association with-
out the consent of such individual or small busi-
ness concern, unless— 
‘‘(i) the Administrator is ordered to 
make such a disclosure by a court in any 
civil or criminal enforcement action initi-
ated by a Federal or State agency; or 
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‘‘(ii) the Administrator determines 
such a disclosure to be necessary for the 
purpose of conducting a financial audit of 
the SCORE program, in which case disclo-
sure shall be limited to the information 
necessary for the audit. 
‘‘(B) ADMINISTRATOR USE OF INFORMA-
TION.—This paragraph shall not— 
‘‘(i) restrict the access of the Adminis-
trator to program activity data; or 
‘‘(ii) prevent the Administrator from 
using client information to conduct client 
surveys. 
‘‘(C) STANDARDS.— 
‘‘(i) IN GENERAL.—The Administrator 
shall, after the opportunity for notice and 
comment, establish standards for— 
‘‘(I) disclosures with respect to 
financial audits under subparagraph 
(A)(ii); and 
‘‘(II) conducting client surveys, 
including standards for oversight of 
the surveys and for dissemination and 
use of client information. 
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‘‘(ii) MAXIMUM
PRIVACY
PROTEC-
TION.—The standards issued under this 
subparagraph shall, to the extent prac-
ticable, provide for the maximum amount 
of privacy protection.’’. 
(c) ONLINE COMPONENT.— 
(1) IN GENERAL.—Section 8(c) of the Small 
Business Act (15 U.S.C. 637(c)), as amended by 
subsection (b), is further amended by adding at the 
end the following: 
‘‘(6) ONLINE
COMPONENT.—In carrying out 
this subsection, the SCORE Association shall make 
use of online counseling, including by developing and 
implementing webinars and an electronic mentoring 
platform to expand access to services provided under 
this subsection and to further support entre-
preneurs.’’. 
(2) ONLINE COMPONENT REPORT.— 
(A) IN
GENERAL.—At the end of fiscal 
year 2018, the SCORE Association shall issue 
a report to the Committee on Small Business of 
the House of Representatives and the Com-
mittee on Small Business and Entrepreneurship 
of the Senate on the effectiveness of the online 
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counseling and webinars required as part of the 
SCORE program, including— 
(i) how the SCORE Association deter-
mines electronic mentoring and webinar 
needs, develops training for electronic men-
toring, establishes webinar criteria cur-
ricula, and evaluates webinar and elec-
tronic mentoring results; 
(ii) describing the internal controls 
that are used and a summary of the topics 
covered by the webinars; and 
(iii) performance metrics, including 
the number of small business concerns 
counseled by, the number of small business 
concerns created by, the number of jobs 
created and retained by, and the funding 
amounts directed towards such online 
counseling and webinars. 
(B) DEFINITIONS.—For purposes of this 
subsection, the terms ‘‘SCORE Association’’ 
and ‘‘SCORE program’’ have the meaning 
given those terms, respectively, under section 
8(c)(1) of the Small Business Act (15 U.S.C. 
637(c)(1)). 
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(d) STUDY AND REPORT ON THE FUTURE ROLE OF 
THE SCORE PROGRAM.— 
(1) STUDY.—The SCORE Association shall 
carry out a study on the future role of the SCORE 
program and develop a strategic plan for how the 
SCORE program will evolve to meet the needs of 
small business concerns and potential future small 
business concerns over the course of the 5 years fol-
lowing the date of enactment of this Act, with mark-
ers and specific objectives for year 1, year 3, and 
year 5. 
(2) REPORT.—Not later than the end of the 6- 
month period beginning on the date of the enact-
ment of this Act, the SCORE Association shall issue 
a report to the Committee on Small Business of the 
House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate 
containing— 
(A) all findings and determination made in 
carrying out the study required under para-
graph (1); 
(B) the strategic plan developed under 
paragraph (1); 
(C) an explanation of how the SCORE As-
sociation plans to achieve the strategic plan, as-
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suming both stagnant and increased funding 
levels. 
(3) DEFINITIONS.—For purposes of this sec-
tion, the terms ‘‘SCORE Association’’ and ‘‘SCORE 
program’’ have the meaning given those terms, re-
spectively, under section 8(c)(1) of the Small Busi-
ness Act (15 U.S.C. 637(c)(1)). 
(e) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) SMALL BUSINESS ACT.—The Small Busi-
ness Act (15 U.S.C. 631 et seq.) is amended— 
(A) in section 7(m)(3)(A)(i)(VIII) (15 
U.S.C. 
636(m)(3)(A)(i)(VIII)), 
by 
striking 
‘‘Service Corps of Retired Executives’’ and in-
serting ‘‘SCORE program’’; and 
(B) in section 22 (15 U.S.C. 649)— 
(i) in subsection (b)— 
(I) in paragraph (1), by striking 
‘‘Service Corps of Retired Executives’’ 
and inserting ‘‘SCORE program’’; 
and 
(II) in paragraph (3), by striking 
‘‘Service Corps of Retired Executives’’ 
and inserting ‘‘SCORE program’’; 
and 
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(ii) in subsection (c)(12), by striking 
‘‘Service Corps of Retired Executives’’ and 
inserting ‘‘SCORE program’’. 
(2) OTHER LAWS.— 
(A) CHILDREN’S HEALTH INSURANCE PRO-
GRAM
REAUTHORIZATION
ACT
OF
2009.—Sec-
tion 621 of the Children’s Health Insurance 
Program Reauthorization Act of 2009 (15 
U.S.C. 657p) is amended— 
(i) in subsection (a), by striking para-
graph (4) and inserting the following: 
‘‘(4) the term ‘SCORE program’ means the 
SCORE program authorized by section 8(b)(1)(B) 
of 
the 
Small 
Business 
Act 
(15 
U.S.C. 
637(b)(1)(B));’’; and 
(ii) in subsection (b)(4)(A)(iv), by 
striking ‘‘Service Corps of Retired Execu-
tives’’ and inserting ‘‘SCORE program’’. 
(B) ENERGY POLICY AND CONSERVATION 
ACT.—Section 337(d)(2)(A) of the Energy Pol-
icy 
and 
Conservation 
Act 
(42 
U.S.C. 
6307(d)(2)(A)) is amended by striking ‘‘Service 
Corps of Retired Executives (SCORE)’’ and in-
serting ‘‘SCORE program’’. 
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SEC. 862. PROCUREMENT TECHNICAL ASSISTANCE CEN-
TERS. 
(a) AUTHORIZATION TO FORM ASSOCIATION.—Pro-
curement Technical Assistance Centers are authorized to 
form an association to pursue matters of common concern. 
(b) RECOGNITION BY SECRETARY OF DEFENSE.—If 
more than half of the Procurement Technical Assistance 
Centers which are operating pursuant to agreements with 
the Department of Defense are members of such an asso-
ciation, the Secretary of Defense shall— 
(1) recognize the existence and activities of 
such an association; and 
(2) consult with it and develop documents— 
(A) announcing the annual scope of activi-
ties pursuant to this section; 
(B) requesting proposals to deliver assist-
ance as provided in this section; and 
(C) governing the general operations and 
administration of the Procurement Technical 
Assistance Program, specifically including the 
development of regulations and a uniform nego-
tiated cooperative agreement for use on an an-
nual basis when entering into individual nego-
tiated agreements with Procurement Technical 
Assistance Centers. 
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SEC. 863. COMMERCIALIZATION ASSISTANCE PILOT PRO-
GRAM. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended by adding at the end the following new sub-
section: 
‘‘(tt) COMMERCIALIZATION ASSISTANCE PILOT PRO-
GRAMS.— 
‘‘(1) PILOT PROGRAMS IMPLEMENTED.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), not later than one year after 
the date of the enactment of this subsection, a 
covered agency shall implement a commer-
cialization assistance pilot program, under 
which an eligible entity may receive a subse-
quent Phase II SBIR award. 
‘‘(B) EXCEPTION.—If the Administrator 
determines that a covered agency has a pro-
gram that is sufficiently similar to the commer-
cialization assistance pilot program established 
under this subsection, such covered agency shall 
not be required to implement a commercializa-
tion assistance pilot program under this sub-
section. 
‘‘(2) PERCENT OF AGENCY FUNDS.—The head 
of each covered agency may allocate not more than 
5 percent of the funds allocated to the SBIR pro-
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gram of the covered agency for the purpose of mak-
ing a subsequent Phase II SBIR award under the 
commercialization assistance pilot program. 
‘‘(3) TERMINATION.—A commercialization as-
sistance pilot program established under this sub-
section shall terminate on September 30, 2022. 
‘‘(4) APPLICATION.—To be selected to receive a 
subsequent Phase II SBIR award under a commer-
cialization assistance pilot program, an eligible enti-
ty shall submit to the covered agency implementing 
such pilot program an application at such time, in 
such manner, and containing such information as 
the covered agency may require, including— 
‘‘(A) an updated Phase II commercializa-
tion plan; and 
‘‘(B) the source and amount of the match-
ing funding required under paragraph (5). 
‘‘(5) MATCHING FUNDING.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall require, as a condition of any subsequent 
Phase II SBIR award made to an eligible entity 
under this subsection, that a matching amount 
(excluding any fees collected by the eligible enti-
ty receiving such award) equal to the amount of 
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such award be provided from an eligible third- 
party investor. 
‘‘(B) INELIGIBLE
SOURCES.—An eligible 
entity may not use funding from ineligible 
sources to meet the matching requirement of 
subparagraph (A). 
‘‘(6) AWARD.—A subsequent Phase II SBIR 
award made to an eligible entity under this sub-
section— 
‘‘(A) may not exceed the limitation de-
scribed under subsection (aa)(1); and 
‘‘(B) shall be disbursed during Phase II. 
‘‘(7) USE OF FUNDS.—The funds awarded to 
an eligible entity under this subsection may only be 
used for research and development activities that 
build on eligible entity’s Phase II program and en-
sure the research funded under such Phase II is 
rapidly progressing towards commercialization. 
‘‘(8) SELECTION.—In selecting eligible entities 
to participate in a commercialization assistance pilot 
program under this subsection, the head of a covered 
agency shall consider— 
‘‘(A) the extent to which such award could 
aid the eligible entity in commercializing the re-
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search funded under the eligible entity’s Phase 
II program; 
‘‘(B) whether the updated Phase II com-
mercialization plan submitted under paragraph 
(4) provides a sound approach for establishing 
technical feasibility that could lead to commer-
cialization of such research; 
‘‘(C) whether the proposed activities to be 
conducted under such updated Phase II com-
mercialization plan further improve the likeli-
hood that such research will provide societal 
benefits; 
‘‘(D) whether the small business concern 
has progressed satisfactorily in Phase II to jus-
tify receipt of a subsequent Phase II SBIR 
award; 
‘‘(E) the expectations of the eligible third- 
party investor that provides matching funding 
under paragraph (5); and 
‘‘(F) the likelihood that the proposed ac-
tivities to be conducted under such updated 
Phase II commercialization plan using matching 
funding provided by such eligible third-party in-
vestor will lead to commercial and societal ben-
efit. 
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‘‘(9) EVALUATION REPORT.—Not later than 3 
years after the date of the enactment of this sub-
section, the Comptroller General of the United 
States shall submit to the Committee on Science, 
Space, and Technology and the Committee on Small 
Business of the House of Representatives, and the 
Committee on Small Business and Entrepreneurship 
of the Senate, a report including— 
‘‘(A) a summary of the activities of com-
mercialization assistance pilot programs carried 
out under this subsection; 
‘‘(B) a detailed compilation of results 
achieved by such commercialization assistance 
pilot programs, including the number of eligible 
entities that received awards under such pro-
grams; 
‘‘(C) the rate at which each eligible entity 
that received a subsequent Phase II SBIR 
award under this subsection commercialized re-
search of the recipient; 
‘‘(D) the growth in employment and rev-
enue of eligible entities that is attributable to 
participation in a commercialization assistance 
pilot program; 
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‘‘(E) a comparison of commercialization 
success of eligible entities participating in a 
commercialization assistance pilot program with 
recipients of an additional Phase II SBIR 
award under subsection (ff); 
‘‘(F) demographic information, such as 
ethnicity and geographic location, of eligible en-
tities participating in a commercialization as-
sistance pilot program; 
‘‘(G) an accounting of the funds used at 
each covered agency that implements a commer-
cialization assistance pilot program under this 
subsection; 
‘‘(H) the amount of matching funding pro-
vided by eligible third-party investors, set forth 
separately by source of funding; 
‘‘(I) an analysis of the effectiveness of the 
commercialization assistance pilot program im-
plemented by each covered agency; and 
‘‘(J) recommendations for improvements to 
the commercialization assistance pilot program. 
‘‘(10) DEFINITIONS.—For purposes of this sub-
section: 
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‘‘(A) COVERED AGENCY.—The term ‘cov-
ered agency’ means a Federal agency required 
to have an SBIR program. 
‘‘(B) ELIGIBLE ENTITY.—The term ‘eligi-
ble entity’ means a small business concern that 
has received a Phase II award under an SBIR 
program and an additional Phase II SBIR 
award under subsection (ff) from the covered 
agency to which such small business concern is 
applying for a subsequent Phase II SBIR 
award. 
‘‘(C) ELIGIBLE THIRD-PARTY INVESTOR.— 
The term ‘eligible third-party investor’ means a 
small business concern other than an eligible 
entity, a venture capital firm, an individual in-
vestor, a non-SBIR Federal, State or local gov-
ernment, or any combination thereof. 
‘‘(D) INELIGIBLE
SOURCES.—The term 
‘ineligible sources’ means the following: 
‘‘(i) The eligible entity’s internal re-
search and development funds. 
‘‘(ii) Funding in forms other than 
cash, such as in-kind or other intangible 
assets. 
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‘‘(iii) Funding from the owners of the 
eligible entity, or the family members or 
affiliates of such owners. 
‘‘(iv) Funding attained through loans 
or other forms of debt obligations. 
‘‘(E) 
SUBSEQUENT
PHASE
II
SBIR 
AWARD.—The term ‘subsequent Phase II SBIR 
award’ means an award granted to an eligible 
entity under this subsection to carry out further 
commercialization activities for research con-
ducted pursuant to an SBIR program.’’. 
SEC. 864. PUERTO RICO BUSINESSES. 
(a) DEFINITION OF PUERTO RICO BUSINESS.—Sec-
tion 3 of the Small Business Act (15 U.S.C. 632) is 
amended by adding at the end the following new sub-
section: 
‘‘(ee) PUERTO RICO BUSINESS.—In this Act, the 
term ‘Puerto Rico business’ means a small business con-
cern that has its principal office located in the Common-
wealth of Puerto Rico.’’. 
(b) SMALL BUSINESS CREDIT FOR PUERTO RICO 
BUSINESSES.—Section 15 of the Small Business Act (15 
U.S.C. 644) is amended by adding at the end the following 
new subsection: 
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‘‘(w) SMALL BUSINESS CREDIT FOR PUERTO RICO 
BUSINESSES.— 
‘‘(1) CREDIT
FOR
MEETING
CONTRACTING 
GOALS.—If an agency awards a prime contract to 
Puerto Rico business during the period beginning on 
the date of enactment of this subsection and ending 
on the date that is 4 years after such date of enact-
ment, the value of the contract shall be doubled for 
purposes of determining compliance with the goals 
for 
procurement 
contracts 
under 
subsection 
(g)(1)(A)(i) during such period. 
‘‘(2) REPORT.—Along with the report required 
under subsection (h)(1), the head of each Federal 
agency shall submit to the Administrator, and make 
publicly available on the scorecard described in sec-
tion 868(b) of the National Defense Authorization 
Act for Fiscal Year 2016 (15 U.S.C. 644 note), an 
analysis of the number and dollar amount of prime 
contracts awarded pursuant to paragraph (1) for 
each fiscal year of the period described in such para-
graph.’’. 
(c) PRIORITY
FOR SURPLUS PROPERTY TRANS-
FERS.—Section 7(j)(13)(F) of the Small Business Act (15 
U.S.C. 636(j)(13)(F)) is amended by adding at the end 
the following new clause: 
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‘‘(iii)(I) In this clause, the term ‘covered period’ 
means the period beginning on the date of enact-
ment of this clause and ending on the date on which 
the Oversight Board established under section 101 
of the Puerto Rico Oversight, Management, and 
Economic Stability Act (48 U.S.C. 2121) termi-
nates. 
‘‘(II) The Administrator may transfer tech-
nology or surplus property under clause (i) to a 
Puerto Rico business if the Puerto Rico business 
meets the requirements for such a transfer, without 
regard to whether the Puerto Rico business is a Pro-
gram Participant.’’. 
(d) CONTRACTING INCENTIVES FOR PROTEGE FIRMS 
THAT ARE PUERTO RICO BUSINESSES.— 
(1) IN GENERAL.—Section 45(a) of the Small 
Business Act (15 U.S.C. 657r(a)) is amended by 
adding at the end the following new paragraph: 
‘‘(3) PUERTO RICO BUSINESSES.—During the 
period beginning on the date of enactment of this 
paragraph and ending on the date on which the 
Oversight Board established under section 101 of 
the Puerto Rico Oversight, Management, and Eco-
nomic Stability Act (48 U.S.C. 2121) terminates, 
the Administrator shall identify potential incentives 
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to a covered mentor that awards a subcontract to its 
covered protege, including— 
‘‘(A) positive consideration in any past per-
formance evaluation of the covered mentor; 
‘‘(B) the application of costs incurred for 
providing training to such covered protege to 
the subcontracting plan (as required under 
paragraph (4) or (5) of section 8(d)) of the cov-
ered mentor; and 
‘‘(C) such other incentives as the Adminis-
trator determines appropriate.’’. 
(2) DEFINITIONS.—Section 45(d) of the Small 
Business Act (15 U.S.C. 657r(d)) is amended by 
adding at the end the following new paragraphs: 
‘‘(4) COVERED
MENTOR.—The term ‘covered 
mentor’ means a mentor that enters into an agree-
ment under this Act, or under any mentor-protege 
program approved under subsection (b)(1), with a 
covered protege. 
‘‘(5) COVERED PROTEGE.—The term ‘covered 
protege’ means a protege of a covered mentor that 
is a Puerto Rico business.’’. 
(e) ADDITIONAL MENTOR-PROTEGE RELATIONSHIPS 
FOR PROTEGE FIRMS THAT ARE PUERTO RICO BUSI-
NESSES.—Section 45(b)(3)(A) of the Small Business Act 
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(15 U.S.C. 657r(b)(3)(A)) is amended by inserting ‘‘, ex-
cept that such restrictions shall not apply to up to 2 men-
tor-protege relationships if such relationships are between 
a covered protege and covered mentor’’ after ‘‘each partici-
pant’’. 
SEC. 865. UNITED STATES VIRGIN ISLANDS SMALL BUSI-
NESS CONTRACTING ASSISTANCE. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘United States Virgin Islands Small Business Contracting 
Assistance Act of 2018’’. 
(b) DEFINITION
OF UNITED STATES VIRGIN IS-
LANDS BUSINESS.—Section 3 of the Small Business Act 
(15 U.S.C. 632) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(ee) UNITED STATES VIRGIN ISLANDS BUSINESS.— 
In this Act, the term ‘United States Virgin Islands busi-
ness’ means a small business concern that has its principal 
office located in the United States Virgin Islands.’’. 
(c) SMALL BUSINESS CREDIT FOR UNITED STATES 
VIRGIN ISLANDS BUSINESSES.—Section 15 of the Small 
Business Act (15 U.S.C. 644) is amended by adding at 
the end the following new subsection: 
‘‘(w) SMALL BUSINESS CREDIT FOR UNITED STATES 
VIRGIN ISLANDS BUSINESSES.— 
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‘‘(1) CREDIT
FOR
MEETING
CONTRACTING 
GOALS.—If an agency awards a prime contract to 
United States Virgin Islands business during the pe-
riod beginning on the date of enactment of this sub-
section and ending on the date that is 4 years after 
such date of enactment, the value of the contract 
shall be doubled for purposes of determining compli-
ance with the goals for procurement contracts under 
subsection (g)(1)(A)(i) during such period. 
‘‘(2) REPORT.—Along with the report required 
under subsection (h)(1), the head of each Federal 
agency shall submit to the Administrator, and make 
publicly available on the scorecard described in sec-
tion 868(b) of the National Defense Authorization 
Act for Fiscal Year 2016 (15 U.S.C. 644 note), an 
analysis of the number and dollar amount of prime 
contracts awarded pursuant to paragraph (1) for 
each fiscal year of the period described in such para-
graph.’’. 
(d) PRIORITY
FOR SURPLUS PROPERTY TRANS-
FERS.—Section 7(j)(13)(F) of the Small Business Act (15 
U.S.C. 636(j)(13)(F)) is amended by adding at the end 
the following new clause: 
‘‘(iii)(I) In this clause, the term ‘covered period’ 
means the period beginning on the date of enact-
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ment of this clause and ending on the date that is 
3 years after such date of enactment. 
‘‘(II) The Administrator may transfer tech-
nology or surplus property under clause (i) to a 
United States Virgin Islands business during the 
covered period if the such business meets the re-
quirements for such a transfer, without regard to 
whether such business is a Program Participant.’’. 
(e) CONTRACTING INCENTIVES FOR PROTEGE FIRMS 
THAT ARE UNITED STATES VIRGIN ISLANDS BUSI-
NESSES.— 
(1) IN GENERAL.—Section 45(a) of the Small 
Business Act (15 U.S.C. 657r(a)) is amended by 
adding at the end the following new paragraph: 
‘‘(3) UNITED
STATES
VIRGIN
ISLANDS
BUSI-
NESSES.—During the period beginning on the date 
of enactment of this paragraph and ending on the 
date that is 3 years after such date of enactment, 
the Administrator shall identify potential incentives 
to a covered mentor that awards a subcontract to its 
covered protege, including— 
‘‘(A) positive consideration in any past per-
formance evaluation of the covered mentor; 
‘‘(B) the application of costs incurred for 
providing training to such covered protege to 
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the subcontracting plan (as required under 
paragraph (4) or (5) of section 8(d)) of the cov-
ered mentor; and 
‘‘(C) such other incentives as the Adminis-
trator determines appropriate.’’. 
(2) DEFINITIONS.—Section 45(d) of the Small 
Business Act (15 U.S.C. 657r(d)) is amended by 
adding at the end the following new paragraphs: 
‘‘(4) COVERED
MENTOR.—The term ‘covered 
mentor’ means a mentor that enters into an agree-
ment under this Act, or under any mentor-protege 
program approved under subsection (b)(1), with a 
covered protege. 
‘‘(5) COVERED PROTEGE.—The term ‘covered 
protege’ means a protege of a covered mentor that 
is a United States Virgin Islands business.’’. 
(f) ADDITIONAL MENTOR-PROTEGE RELATIONSHIPS 
FOR PROTEGE FIRMS THAT ARE UNITED STATES VIRGIN 
ISLANDS BUSINESSES.—Section 45(b)(3)(A) of the Small 
Business Act (15 U.S.C. 657r(b)(3)(A)) is amended by in-
serting ‘‘, except that, during the 3-year period beginning 
on the date of the enactment of the United States Virgin 
Islands Small Business Contracting Assistance Act of 
2018, such restrictions shall not apply to up to 2 mentor- 
protege relationships if such relationships are between a 
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covered protege and covered mentor’’ after ‘‘each partici-
pant’’. 
SEC. 866. OPPORTUNITIES FOR EMPLOYEE-OWNED BUSI-
NESS CONCERNS THROUGH SMALL BUSINESS 
ADMINISTRATION LOAN PROGRAMS. 
(a) DEFINITIONS.—In this Act— 
(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ means the Small Business Administration 
and the Administrator thereof, respectively; 
(2) the term ‘‘cooperative’’ means an entity 
that is determined to be a cooperative by the Admin-
istrator, in accordance with applicable Federal and 
State laws and regulations; 
(3) the term ‘‘employee-owned business con-
cern’’ means— 
(A) a cooperative; and 
(B) a qualified employee trust; 
(4) the terms ‘‘qualified employee trust’’ and 
‘‘small business concern’’ have the meanings given 
those terms in section 3 of the Small Business Act 
(15 U.S.C. 632); and 
(5) the term ‘‘small business development cen-
ter’’ means a small business development center de-
scribed in section 21 of the Small Business Act (15 
U.S.C. 648). 
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(b) EXPANSION OF 7(A) LOANS.— 
(1) IN GENERAL.—Section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)) is amended— 
(A) in paragraph (15)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘this subsection to 
qualified employee trusts’’ and insert-
ing ‘‘this subsection— 
‘‘(i) to qualified employee trusts’’; 
(II) in clause (i), as so des-
ignated— 
(aa) by inserting ‘‘, and for 
any transaction costs associated 
with purchasing,’’ after ‘‘pur-
chasing’’; 
(bb) by striking the period 
at the end and inserting ‘‘; and’’; 
and 
(III) by adding at the end the 
following: 
‘‘(ii) to a small business concern under a 
plan approved by the Administrator, if the pro-
ceeds from the loan are only used to make a 
loan to a qualified employee trust, and for any 
transaction costs associated with making that 
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loan, that results in the qualified employee trust 
owning at least 51 percent of the small business 
concern.’’; 
(ii) in subparagraph (B)— 
(I) in the matter preceding clause 
(i), by inserting ‘‘or by the small busi-
ness concern’’ after ‘‘the trustee of 
such trust’’; 
(II) in clause (ii), by striking 
‘‘and’’ at the end; 
(III) in clause (iii), by striking 
the period at the end and inserting ‘‘, 
and’’; and 
(IV) by adding at the end the fol-
lowing: 
‘‘(iv) with respect to a loan made to a 
trust, or to a cooperative in accordance with 
paragraph (35)— 
‘‘(I) a seller of the small business con-
cern may remain involved as an officer, di-
rector, or key employee of the small busi-
ness concern when a qualified employee 
trust or cooperative has acquired 100 per-
cent of ownership of the small business 
concern; and 
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‘‘(II) any seller of the small business 
concern who remains as an owner of the 
small business concern, regardless of the 
percentage of ownership interest, shall be 
required to provide a personal guarantee 
by the Administration.’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(F) A small business concern that makes a 
loan to a qualified employee trust under subpara-
graph (A)(ii) is not required to contain the same 
terms and conditions as the loan made to the small 
business concern that is guaranteed by the Adminis-
tration under such subparagraph. 
‘‘(G) With respect to a loan made to a qualified 
employee trust under this paragraph, or to a cooper-
ative in accordance with paragraph (35), the Admin-
istrator may, as deemed appropriate, elect to not re-
quire any mandatory equity to be provided by the 
qualified employee trust or cooperative to make the 
loan.’’; and 
(B) by adding at the end the following: 
‘‘(35) LOANS TO COOPERATIVES.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘cooperative’ means an entity that is de-
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(A) by striking ‘‘as provided in this section 
and’’ and inserting ‘‘as provided in this sec-
tion,’’; and 
(B) by inserting before the period at the 
end the following: ‘‘, and (iv) governing data 
collection activities related to applicants receiv-
ing grants under this section’’. 
(2) ANNUAL REPORT ON DATA COLLECTION.— 
Section 21 of the Small Business Act (15 U.S.C. 
648), as amended by subsection (b), is further 
amended by adding at the end the following: 
‘‘(p) ANNUAL REPORT ON DATA COLLECTION.—The 
Administrator shall report annually to the Committee on 
Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of 
the Senate on any data collection activities related to the 
Small Business Development Center Program.’’. 
(3) WORKING GROUP TO IMPROVE DATA COL-
LECTION.— 
(A) ESTABLISHMENT
AND
STUDY.—The 
Administrator of the Small Business Adminis-
tration shall establish a group to be known as 
the ‘‘Data Collection Working Group’’ con-
sisting of members from entrepreneurial devel-
opment grant recipients associations and orga-
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