In the Senate of the United States,
September 30 (legislative day, September 29), 1998.
Resolved, That the bill from the House of Representa-
tives (H.R. 3412) entitled ‘‘An Act to amend and make tech-
nical corrections in title III of the Small Business Investment
Act.’’, do pass with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Year 2000 Readiness and Small Business Programs Re-
structuring and Reform Act of 1998’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—SMALL BUSINESS YEAR 2000 READINESS
Sec. 101. Findings.
Sec. 102. Year 2000 computer problem loan guarantee program.
Sec. 103. Pilot program requirements.
Sec. 104. Section 7(a) loan program.
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TITLE II—SMALL BUSINESS PROGRAM RESTRUCTURING AND
REFORM
Sec. 201. Women’s business center program.
Sec. 202. SBIR program.
Sec. 203. SBIC program.
Sec. 204. Certified development company program.
Sec. 205. Small business Federal contract set-asides.
Sec. 206. Assistance for veterans.
Sec. 207. Section 7(a) loan program.
Sec. 208. Disaster mitigation pilot program.
Sec. 209. Microloan program.
Sec. 210. Real estate appraisals.
Sec. 211. Community development venture capital demonstration program.
Sec. 212. Technical amendments.
TITLE III—SMALL BUSINESS ENVIRONMENTAL ASSISTANCE PILOT
PROGRAM
Sec. 301. Pilot program.
TITLE I—SMALL BUSINESS YEAR
2000 READINESS
SEC. 101. FINDINGS.
Congress finds that—
(1) the failure of many computer programs to
recognize the Year 2000 will have extreme negative fi-
nancial consequences in the Year 2000 and in subse-
quent years for both large and small businesses;
(2) small businesses are well behind larger busi-
nesses in implementing corrective changes to their
automated systems—85 percent of businesses with 200
employees or less have not commenced inventorying
the changes they must make to their automated sys-
tems to avoid Year 2000 problems;
(3) many small businesses do not have access to
capital to fix mission critical automated systems; and
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(4) the failure of a large number of small busi-
nesses will have a highly detrimental effect on the
economy in the Year 2000 and in subsequent years.
SEC. 102. YEAR 2000 COMPUTER PROBLEM LOAN GUARAN-
TEE PROGRAM.
(a) PROGRAM ESTABLISHED.—Section 7(a) of the
Small Business Act (15 U.S.C. 636(a)) is amended by add-
ing at the end the following:
‘‘(27) YEAR
2000
COMPUTER
PROBLEM
PILOT
PROGRAM.—
‘‘(A) DEFINITIONS.—In this paragraph—
‘‘(i) the term ‘eligible lender’ means
any lender designated by the Administra-
tion as eligible to participate in—
‘‘(I) the Preferred Lenders Pro-
gram authorized by the proviso in sec-
tion 5(b)(7); or
‘‘(II) the Certified Lenders Pro-
gram authorized in paragraph (19);
and
‘‘(ii) the term ‘Year 2000 computer
problem’ means, with respect to information
technology, any problem that prevents the
information technology from accurately
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processing, calculating, comparing, or se-
quencing date or time data—
‘‘(I) from, into, or between—
‘‘(aa) the 20th or 21st cen-
turies; or
‘‘(bb) the years 1999 and
2000; or
‘‘(II) with regard to leap year cal-
culations.
‘‘(B) ESTABLISHMENT OF PROGRAM.—The
Administration shall—
‘‘(i) establish a pilot loan guarantee
program, under which the Administration
shall guarantee loans made by eligible lend-
ers to small business concerns in accordance
with this subsection; and
‘‘(ii) notify each eligible lender of the
establishment of the program under this
paragraph.
‘‘(C) USE
OF
FUNDS.—A small business
concern that receives a loan guaranteed under
this paragraph shall use the proceeds of the loan
solely to address the Year 2000 computer prob-
lems of that small business concern, including
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the repair or acquisition of information tech-
nology systems and other automated systems.
‘‘(D) 
MAXIMUM
AMOUNT.—The 
total
amount of a loan made to a small business con-
cern and guaranteed under this paragraph shall
not exceed $50,000.
‘‘(E) GUARANTEE
LIMIT.—The guarantee
percentage of a loan guaranteed under this para-
graph shall not exceed 50 percent of the balance
of the financing outstanding at the time of dis-
bursement of the loan.
‘‘(F) REPORT.—The Administration shall
annually submit to the Committees on Small
Business of the House of Representatives and the
Senate a report on the results of the program
under this paragraph, which shall include infor-
mation relating to—
‘‘(i) the number and amount of loans
guaranteed under this paragraph;
‘‘(ii) whether the loans guaranteed
were made to repair or replace information
technology and other automated systems;
and
‘‘(iii) the number of eligible lenders
participating in the program.’’.
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(b) REGULATIONS.—
(1) IN GENERAL.—Not later than 60 days after
the date of enactment of this Act, the Administrator
of the Small Business Administration shall imple-
ment the program under section 7(a)(27) of the Small
Business Act, as added by this section.
(2) REQUIREMENTS.—Except to the extent in-
consistent this section or section 7(a)(27) of the Small
Business Act, as added by this section, in carrying
out paragraph (1), the Administrator shall ensure
that the requirements governing the program under
section 7(a)(27) of the Small Business Act, as added
by this section, are substantially similar to the re-
quirements governing the FA$TRAK pilot program of
the Small Business Administration, or any successor
program or pilot program to that pilot program.
(c) REPEAL.—Effective on October 1, 2001, this section
and the amendment made by this section are repealed.
SEC. 103. PILOT PROGRAM REQUIREMENTS.
Section 7(a)(25) of the Small Business Act (15 U.S.C.
636(a)(25)) is amended by adding at the end the following:
‘‘(D) NOTIFICATION OF CHANGE.—Not later
than 30 days prior to initiating any pilot pro-
gram or making any change in a pilot program
under this subsection that may affect the subsidy
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rate estimates for the loan program under this
subsection, the Administration shall notify the
Committees on Small Business of the House of
Representatives and the Senate, which notifica-
tion shall include—
‘‘(i) a description of the proposed
change; and
‘‘(ii) an explanation, which shall be
developed by the Administration in con-
sultation with the Director of the Office of
Management and Budget, of the estimated
effect that the change will have on the sub-
sidy rate.
‘‘(E) REPORT ON PILOT PROGRAMS.—The
Administration shall annually submit to the
Committees on Small Business of the House of
Representatives and the Senate a report on each
pilot program under this subsection, which re-
port shall include information relating to—
‘‘(i) the number and amount of loans
made under the pilot program;
‘‘(ii) the number of lenders participat-
ing in the pilot program; and
‘‘(iii) the default rate, delinquency
rate, and recovery rate for loans under each
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pilot program, as compared to those rates
for other loan programs under this sub-
section.’’.
SEC. 104. SECTION 7(a) LOAN PROGRAM.
Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended, in the first sentence, by inserting ‘‘and
to assist small business concerns in meeting technology re-
quirements for the Year 2000,’’ after ‘‘and working cap-
ital,’’.
TITLE II—SMALL BUSINESS PRO-
GRAM RESTRUCTURING AND
REFORM
SEC. 201. WOMEN’S BUSINESS CENTER PROGRAM.
(a) FINDINGS.—Congress finds that—
(1) with small business concerns owned and con-
trolled by women being created at a rapid rate in the
United States, there is a need to increase the author-
ization level for the women’s business center program
under section 29 of the Small Business Act (15 U.S.C.
656) in order to establish additional women’s business
center sites throughout the Nation that focus on entre-
preneurial training programs for women; and
(2) increased funding for the women’s business
center program will ensure that—
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‘‘(b) APPLICABILITY.—Any organization’’; and
(B) by striking paragraph (2).
(2) EFFECTIVE DATE.—The amendment made by
this subsection shall take effect as if included in the
enactment of the Small Business Reauthorization Act
of 1997.
(d) GENERAL ACCOUNTING OFFICE REPORTING RE-
QUIREMENTS.—
(1) BASELINE REPORT.—Not later than October
31, 1999, the Comptroller General of the United
States shall—
(A) conduct a review of the administration
of the women’s business center program under
section 29 of the Small Business Act (15 U.S.C.
656) by the Office of Women’s Business Owner-
ship of the Small Business Administration,
which shall include an analysis of—
(i) the operation of the women’s busi-
ness center program by the Administration;
(ii) the efforts of the Administration to
meet the legislative objectives established for
the program;
(iii) the oversight role of the Adminis-
tration of the operations of women’s busi-
ness centers;
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(iv) the training and assistance pro-
vided by centers receiving funding from the
Administration as compared to the activi-
ties of the centers that no longer receive
funding from the Administration;
(v) the degree to which—
(I) the Administration has taken
the actions necessary to ensure that the
annual report submitted by the Ad-
ministrator under 29(j) of the Small
Business Act (15 U.S.C. 656(j)) meets
the requirements of that section; and
(II) the annual report submitted
by the Administrator under 29(j) of the
Small Business Act (15 U.S.C. 656(j))
meets the requirements of that section;
and
(vi) any other matters that the Comp-
troller General determines to be appropriate
in consultation with and as directed by the
Committees on Small Business of the Senate
and House of Representatives; and
(B) submit to the Committees on Small
Business of the Senate and House of Representa-
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tives a report describing the results of the review
under subparagraph (A).
(2) FOLLOWUP REPORT.—Not later than October
31, 2002, the Comptroller General of the United
States shall—
(A) conduct a review of any changes, during
the period beginning on the date on which the re-
port is submitted under paragraph (1)(B) and
ending on the date on which the report is sub-
mitted under subparagraph (B) of this para-
graph, in the administration of the women’s
business center program under section 29 of the
Small Business Act (15 U.S.C. 656) by the Office
of Women’s Business Ownership of the Small
Business Administration, which shall include an
analysis of any changes during that period in—
(i) the operation of the women’s busi-
ness center program by the Administration;
(ii) the efforts of the Administration to
meet the legislative objectives established for
the program;
(iii) the oversight role of the Adminis-
tration of the operations of women’s busi-
ness centers;
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(iv) the training and assistance pro-
vided by centers receiving funding from the
Administration as compared to the activi-
ties of the centers that no longer receive
funding from the Administration;
(v) the degree to which—
(I) the Administration has taken
the actions necessary to ensure that the
annual report submitted by the Ad-
ministrator under 29(j) of the Small
Business Act (15 U.S.C. 656(j)) meets
the requirements of that section; and
(II) the annual report submitted
by the Administrator under 29(j) of the
Small Business Act (15 U.S.C. 656(j))
meets the requirements of that section;
and
(vi) any other matters that the Comp-
troller General determines to be appropriate
in consultation with and as directed by the
Committees on Small Business of the Senate
and House of Representatives; and
(B) submit to the Committees on Small
Business of the Senate and House of Representa-
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tives a report describing the results of the review
under subparagraph (A).
SEC. 202. SBIR PROGRAM.
(a) ASSISTIVE TECHNOLOGY.—Section 9(c) of the
Small Business Act (15 U.S.C. 638(c)) is amended by add-
ing at the end the following: ‘‘In order to carry out the pur-
poses of this section, the Administration shall, to the maxi-
mum extent practicable, encourage Federal agencies to fund
programs for the research and development of assistive and
universally designed technology that is designed to result
in the availability of new products for individuals with dis-
abilities (as defined in section 3 of the Americans with Dis-
abilities Act of 1990 (42 U.S.C. 12102)).’’.
(b) FEDERAL AGENCY EXPENDITURES FOR THE SBIR
PROGRAM.—Section 9(f)(1) of the Small Business Act (15
U.S.C. 638(f)(1)) is amended by adding at the end the fol-
lowing: ‘‘Notwithstanding any other provision of law, any
rule, regulation, or order promulgated by the Director of
the Office of Management and Budget relating to the defini-
tion of the term ‘extramural budget’ in subsection (e)(1)
shall, except with respect to the Federal agencies specifically
identified in that subsection, apply uniformly to all depart-
ments and agencies of the Federal Government that are sub-
ject to the requirements of this section.’’.
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(c) IMPLEMENTATION OF OUTREACH AUTHORITIES.—
Existing procurement outreach activities of the Federal
Government, including, but not limited to, electronic com-
merce resource centers and procurement technical assistance
centers, shall conduct program outreach activities for the
Small Business Innovation Research program using funds
that are otherwise available for such existing procurement
outreach activities.
(d) REPEAL OF TERMINATION PROVISION.—Section 9
of the Small Business Act (15 U.S.C. 638) is amended by
striking subsection (m) and inserting the following:
‘‘(m) [Reserved].’’.
SEC. 203. SBIC PROGRAM.
(a) IN GENERAL.—Section 308(i)(2) of the Small
Business Investment Act of 1958 (15 U.S.C. 687(i)(2)) is
amended by adding at the end the following: ‘‘In this para-
graph, the term ‘interest’ includes only the maximum man-
datory sum, expressed in dollars or as a percentage rate,
that is payable with respect to the business loan amount
received by the small business concern, and does not include
the value, if any, of contingent obligations, including war-
rants, royalty, or conversion rights, granting the small busi-
ness investment company an ownership interest in the eq-
uity or future revenue of the small business concern receiv-
ing the business loan.’’.
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(b) FUNDING LEVELS.—Section 20 of the Small Busi-
ness Act (15 U.S.C. 631 note) is amended—
(1) in subsection (d)(1)(C)(i), by striking
‘‘$800,000,000’’ and inserting ‘‘$1,000,000,000’’; and
(2) in subsection (e)(1)(C)(i), by striking
‘‘$900,000,000’’ and inserting ‘‘$1,200,000,000’’.
(c) TECHNICAL CORRECTIONS.—Title III of the Small
Business Investment Act of 1958 (15 U.S.C. 661 et seq.)
is amended—
(1) in section 303(g) (15 U.S.C. 683(g)), by
striking paragraph (13);
(2) in section 308 (15 U.S.C. 687) by adding at
the end the following:
‘‘(j) For the purposes of sections 304 and 305, in any
case in which an incorporated or unincorporated business
is not required by law to pay Federal income taxes at the
enterprise level, but is required to pass income through to
its shareholders or partners, an eligible small business or
smaller enterprise may be determined by computing the
after-tax income of such business by deducting from the net
income an amount equal to the net income multiplied by
the combined marginal Federal and State income tax rate
for corporations.’’; and
(3) in section 320 (15 U.S.C. 687m), by striking
‘‘6’’ and inserting ‘‘12’’.
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SEC. 204. CERTIFIED DEVELOPMENT COMPANY PROGRAM.
(a) LIQUIDATION AND FORECLOSURE.—Title V of the
Small Business Investment Act of 1958 (15 U.S.C. 695 et
seq.) is amended by adding at the end the following:
‘‘SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.
‘‘(a) IN GENERAL.—The Administration shall author-
ize qualified State and local development companies (as de-
fined in section 503(e)) that meet the requirements of sub-
section (b) to foreclose and liquidate loans in their portfolios
that are funded with the proceeds of debentures guaranteed
by the Administration under section 503.
‘‘(b) REQUIREMENTS.—The requirements of this sub-
section are that—
‘‘(1) the qualified State or local development
company—
‘‘(A) participated in the loan liquidation
pilot program established by section 204 of the
Small Business Programs Improvement Act of
1996 (15 U.S.C. 695 note), as in effect on the
day before the promulgation of final regulations
by the Administration implementing this section;
‘‘(B) is participating in the Premier Cer-
tified Lenders Program under section 508; or
‘‘(C) is participating in the Accredited
Lenders Program under section 507 and meets
the requirements of paragraph (2)(B); or
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‘‘(2)(A) during the 3 most recent fiscal years, the
qualified State or local development company has
made an average of not less than 10 loans per year
that are funded with the proceeds of debentures guar-
anteed under section 503; and
‘‘(B) 1 or more of the employees of the qualified
State or local development company have—
‘‘(i) not less than 2 years of substantive, de-
cision-making experience in administering the
liquidation and workout of problem loans se-
cured in a manner substantially similar to loans
funded with the proceeds of debentures guaran-
teed under section 503; and
‘‘(ii) completed a training program on loan
liquidation developed by the Administration in
conjunction with qualified State and local devel-
opment companies that meet the requirements of
this subsection.
‘‘(c) AUTHORITY OF DEVELOPMENT COMPANIES.—
‘‘(1) IN GENERAL.—Each qualified State or local
development company authorized to foreclose and liq-
uidate loans under this section shall, with respect to
any loan described in subsection (a) in the portfolio
of the development company that is in default—
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‘‘(A) perform all liquidation and foreclosure
functions, including the purchase of any other
indebtedness secured by the property securing the
loan, in a reasonable and sound manner and ac-
cording to commercially accepted practices, pur-
suant to a liquidation plan, which shall be ap-
proved in advance by the Administration in ac-
cordance with paragraph (2)(A);
‘‘(B) litigate any matter relating to the per-
formance of the functions described in subpara-
graph (A), except that the Administration
may—
‘‘(i) assume the defense or prosecution
of any case if—
‘‘(I) the outcome of the litigation
may adversely affect the Administra-
tion’s management of the loan program
established under section 502; or
‘‘(II) the Administration is enti-
tled to legal remedies not available for
a qualified State or local development
company and such remedies will bene-
fit either the Administration or the
qualified State or local development
company in such litigation; or
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‘‘(ii) oversee the conduct of any such
litigation to which the qualified State or
local development company is a party; and
‘‘(C) take other appropriate actions to miti-
gate loan losses in lieu of total liquidation or
foreclosure, including restructuring the loan,
which such actions shall be in accordance with
prudent loan servicing practices and pursuant to
a workout plan, which shall be approved in ad-
vance by the Administration in accordance with
paragraph (2)(C).
‘‘(2) ADMINISTRATION APPROVAL.—
‘‘(A) LIQUIDATION PLAN.—
‘‘(i) IN
GENERAL.—In carrying out
paragraph (1), a qualified State or local de-
velopment company shall submit to the Ad-
ministration a proposed liquidation plan.
‘‘(ii) TIMING.—Any request under this
subparagraph shall be approved or denied
by the Administration not later than 15
business days after the date on which the re-
quest is received by the Administration. If
the Administration does not approve or
deny a request for approval of a liquidation
plan before the expiration of the 15-business
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day period beginning on the date on which
the request is received by the Administra-
tion, the Administration shall notify the
qualified State or local development com-
pany, in writing, of the specific concerns of
the Administration within that 15-business
day period.
‘‘(iii) ROUTINE
ACTIONS.—A routine
action under a liquidation plan approved
in accordance with this subparagraph shall
not require additional approval by the Ad-
ministration.
‘‘(B) PURCHASE OF INDEBTEDNESS.—
‘‘(i) IN
GENERAL.—In carrying out
paragraph (1)(A), a qualified State or local
development company shall submit to the
Administration a request for written ap-
proval from the Administration before com-
mitting the Administration to purchase any
other indebtedness secured by the property
securing the loan at issue.
‘‘(ii) TIMING.—Any request under this
subparagraph shall be approved or denied
by the Administration not later than 15
business days after the date on which the re-
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quest is received by the Administration. If
the Administration does not approve or
deny a request for purchase of indebtedness
before the expiration of the 15-business day
period beginning on the date on which the
request is received by the Administration,
the Administration shall notify the qualified
State or local development company, in
writing, of the specific concerns of the Ad-
ministration within that 15-business day
period.
‘‘(C) WORKOUT PLAN.—
‘‘(i) IN
GENERAL.—In carrying out
paragraph (1)(C), a qualified State or local
development company may submit to the
Administration a proposed workout plan.
‘‘(ii) TIMING.—Any request under this
subparagraph shall be approved or denied
by the Administration not later than 15
business days after the date on which the re-
quest is received by the Administration. If
the Administration does not approve or
deny a request for approval of a proposed
workout plan before the expiration of the
15-business day period beginning on the
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date on which the request is received by the
Administration, the Administration shall
notify the qualified State or local develop-
ment company, in writing, of the specific
concerns of the Administration within that
15-business day period.
‘‘(D) COMPROMISE OF INDEBTEDNESS.—In
carrying out paragraph (1)(A), a qualified State
or local development company may—
‘‘(i) consider an offer made by an obli-
gor to compromise the debt for less than the
full amount owing; and
‘‘(ii) pursuant to such an offer, release
any obligor or other party contingently lia-
ble, if—
‘‘(I) the State or local develop-
ment company submits to the Adminis-
tration a written request for that re-
lease; and
‘‘(II) the Administration approves
the request.
‘‘(3) CONFLICT OF INTEREST.—A qualified State
or local development company that is liquidating or
foreclosing a loan under this section shall not take
any action that would result in an actual or appar-
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ent conflict of interest between the qualified State or
local development company, or any employee thereof,
and any third party lender, associate of a third party
lender, or any other person participating in any
manner in the liquidation or foreclosure of the loan.
‘‘(d) SUSPENSION OR REVOCATION OF AUTHORITY.—
The authority of a qualified State or local development com-
pany to foreclose and liquidate loans under this section may
be suspended or revoked by the Administration, if the Ad-
ministration determines that the qualified State or local de-
velopment company—
‘‘(1) does not meet the requirements of subsection
(b);
‘‘(2) has failed to adhere to any applicable rule
or regulation of the Administration, or has violated
any other applicable provision of law; or
‘‘(3) fails to comply with any reporting require-
ment that may be established by the Administration
relating to the liquidation and foreclosure of loans.
‘‘(e) REPORT.—
‘‘(1) IN GENERAL.—Based on information pro-
vided by the qualified State and local development
companies and the Administration, the Administra-
tion shall annually submit to the Committees on
Small Business of the House of Representatives and
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the Senate a report on the results of the delegation of
authority to qualified State and local development
companies to liquidate and foreclose loans under this
section.
‘‘(2) INFORMATION
INCLUDED.—Each report
under this paragraph shall include the following in-
formation:
‘‘(A) With respect to each qualified State or
local development company authorized to fore-
close and liquidate loans under this section, and
in the aggregate, for each loan foreclosed or liq-
uidated by the qualified State or local develop-
ment company, or for which loan losses were oth-
erwise mitigated by the qualified State or local
development company pursuant to a workout
plan under this section—
‘‘(i) the total cost of each project fi-
nanced with the loan;
‘‘(ii) the total original dollar amount
guaranteed by the Administration;
‘‘(iii) the total dollar amount of the
loan at the time transferred into liquida-
tion, foreclosure, or mitigation;
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‘‘(iv) the total dollar losses resulting
from the liquidation, foreclosure, or mitiga-
tion; and
‘‘(v) the total recoveries resulting from
the liquidation, foreclosure, or mitigation,
both as a percentage of the amount guaran-
teed and the total cost of the project fi-
nanced.
‘‘(B) A comparison between—
‘‘(i) the information described in
clauses (i) through (v) of subparagraph (A)
with respect to loans foreclosed and liq-
uidated, or for which loan losses were other-
wise mitigated pursuant to a workout plan,
by qualified State and local development
companies under this section during the 12-
month period preceding the date on which
the report is submitted; and
‘‘(ii) the same information with respect
to loans foreclosed and liquidated by the
Administration during that period.
‘‘(C) The number of times that the Adminis-
tration has failed to approve or deny a request
for written approval of a liquidation plan, pur-
chase of indebtedness, or workout plan within the
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time periods described in subparagraphs (A),
(B), and (C) of subsection (c)(2).’’.
(b) REGULATIONS.—
(1) IN GENERAL.—Not later than 150 days after
the date of enactment of this Act, the Administrator
of the Small Business Administration shall promul-
gate such regulations as may be necessary to carry
out section 510 of the Small Business Investment Act
of 1958, as added by subsection (a) of this section.
(2) ELIMINATION OF PILOT PROGRAM.—Effective
on the date on which final regulations are promul-
gated under paragraph (1), section 204 of the Small
Business Programs Improvement Act of 1996 (15
U.S.C. 695 note) is repealed.
(c) PUBLIC POLICY GOALS.—Section 501(d)(3)(C) of
the Small Business Investment Act of 1958 (15 U.S.C.
695(d)(3)(C)) is amended by inserting ‘‘or women-owned
business development’’ before the comma.
SEC. 205. SMALL BUSINESS FEDERAL CONTRACT SET-
ASIDES.
(a) ANNUAL COMPREHENSIVE REPORT.—
(1) IN GENERAL.—Section 15(h) of the Small
Business Act (15 U.S.C. 644(h)) is amended—
(A) in paragraph (1)—
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‘‘(iii)(I) The description and analysis included under
clause (ii) shall include a reconciliation of the apparent dif-
ferences, if any, between the small business participation
levels reported for that fiscal year and the small business
participation levels reported for preceding fiscal years, that
result from differences in classification or reporting of data
under this subsection. In the report, the Administration
shall identify the differences in classification or reporting,
as the case may be, and set forth the statistics on total dol-
lar values for the later fiscal year as those statistics would
have been calculated if the categories of contracts had been
classified or otherwise reported without the differences.
‘‘(II) The total dollar values referred to in subclause
(I) are the total dollar values of prime contracts awarded,
total dollar values of subcontracts awarded, and total dollar
values of prime contracts and subcontracts awarded to
small businesses.’’;
(B) in paragraph (2), by striking ‘‘para-
graph (1)’’ and inserting ‘‘paragraph (1)(A)’’;
and
(C) by adding at the end the following:
‘‘(4)(A) The Administration may not issue a waiver
or permissive letter authorizing the head of a Federal agen-
cy or the heads of any group of Federal agencies to change
the statistical methodology used for meeting the reporting
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requirements of paragraph (1)(A) or (2) unless, when
issued, the waiver or permissive letter is accompanied by
the comments of the Chief Counsel for Advocacy regarding
the appropriateness of the decision of the Administration
to issue the waiver or letter.
‘‘(B) No waiver or permissive letter referred to in sub-
paragraph (A) shall be effective until—
‘‘(i) the Administration submits a copy of the
waiver or permissive letter, together with the com-
ments of the Chief Counsel for Advocacy, to the Com-
mittees on Small Business of the House of Represent-
atives and the Senate; and
‘‘(ii) 30 days have elapsed since the date of the
submission to the committees under clause (i).’’.
(2) INAPPLICABILITY OF CONTENT REQUIREMENT
TO FISCAL YEAR 1998 REPORT.—Clause (iii) of sub-
paragraph (B) of section 15(h)(1) of the Small Busi-
ness Act, as added by paragraph (1)(A)(iii) of this
subsection, does not apply to the comprehensive report
submitted under that subparagraph for fiscal year
1998.
(b) HUBZONE PROGRAM.—Section 602(b)(2) of the
Small Business Reauthorization Act of 1997 (15 U.S.C.
657a note) is amended—
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(1) in subparagraph (I), by striking ‘‘and’’ at
the end;
(2) in subparagraph (J), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(K) the Department of Labor.’’.
SEC. 206. ASSISTANCE FOR VETERANS.
(a) DEFINITIONS.—Section 3 of the Small Business
Act (15 U.S.C. 632) is amended by adding at the end the
following:
‘‘(q) DEFINITIONS RELATING TO VETERANS.—In this
Act:
‘‘(1) SERVICE-DISABLED
VETERAN.—The term
‘service-disabled veteran’ means a veteran with a dis-
ability that is service-connected (as defined in section
101(16) of title 38, United States Code).
‘‘(2) SMALL
BUSINESS
CONCERN
OWNED
AND
CONTROLLED BY SERVICE-DISABLED VETERANS.—The
term ‘small business concern owned and controlled by
service-disabled veterans’ means a small business con-
cern—
‘‘(A) not less than 51 percent of which is
owned by 1 or more service-disabled veterans or,
in the case of any publicly owned business, not
less than 51 percent of the stock of which is
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owned by 1 or more service-disabled veterans;
and
‘‘(B) the management and daily business
operations of which are controlled by 1 or more
service-disabled veterans.
‘‘(3) SMALL
BUSINESS
CONCERN
OWNED
AND
CONTROLLED BY VETERANS.—The term ‘small busi-
ness concern owned and controlled by veterans’ means
a small business concern—
‘‘(A) not less than 51 percent of which is
owned by 1 or more veterans or, in the case of
any publicly owned business, not less than 51
percent of the stock of which is owned by 1 or
more veterans; and
‘‘(B) the management and daily business
operations of which are controlled by 1 or more
veterans.
‘‘(4) VETERAN.—The term ‘veteran’ has the
meaning given the term in section 101(2) of title 38,
United States Code.’’.
(b) OFFICE
OF
VETERANS
BUSINESS
DEVELOP-
MENT.—
(1) ASSOCIATE ADMINISTRATOR FOR VETERANS
BUSINESS
DEVELOPMENT.—Section 4(b)(1) of the
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Small Business Act (15 U.S.C. 633(b)(1)) is amend-
ed—
(A) in the fifth sentence, by striking ‘‘four’’
and inserting ‘‘5’’; and
(B) by inserting after the fifth sentence the
following: ‘‘One shall be the Associate Adminis-
trator for Veterans Business Development, who
shall administer the Office of Veterans Business
Development established under section 32.’’.
(2) ESTABLISHMENT
OF
OFFICE.—The Small
Business Act (15 U.S.C. 631 et seq.) is amended—
(A) by redesignating section 32 as section
33; and
(B) by inserting after section 31 the follow-
ing:
‘‘SEC. 32. VETERANS PROGRAMS.
‘‘(a) OFFICE
OF VETERANS BUSINESS DEVELOP-
MENT.—
‘‘(1) ESTABLISHMENT.—There is established in
the Administration an Office of Veterans Business
Development, which shall be administered by the As-
sociate Administrator for Veterans Business Develop-
ment (in this section referred to as the ‘Associate Ad-
ministrator’) appointed under section 4(b)(1).
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‘‘(2) ASSOCIATE ADMINISTRATOR FOR VETERANS
BUSINESS
DEVELOPMENT.—The Associate Adminis-
trator shall be—
‘‘(A) a career appointee in the competitive
service or in the Senior Executive Service; and
‘‘(B) responsible for the formulation and
execution of the policies and programs of the Ad-
ministration that provide assistance to small
business concerns owned and controlled by veter-
ans and small business concerns owned and con-
trolled by service-disabled veterans.
‘‘(b) ADVISORY COMMITTEE ON VETERANS BUSINESS
AFFAIRS.—
‘‘(1) IN GENERAL.—There is established an advi-
sory committee to be known as the Advisory Commit-
tee on Veterans Business Affairs (in this subsection
referred to as the ‘Committee’), which shall serve as
an independent source of advice and policy rec-
ommendations to the Administrator (through the As-
sociate Administrator), to Congress, and to the Presi-
dent.
‘‘(2) MEMBERSHIP.—
‘‘(A) IN GENERAL.—The Committee shall be
composed of 15 members, each of whom shall be
appointed by the Administrator, of whom—
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‘‘(i) 8 shall be veterans who are owners
of small business concerns; and
‘‘(ii) 7 shall be representatives of na-
tional veterans service organizations.
‘‘(B) POLITICAL
AFFILIATION.—Not more
than 8 members of the Committee shall be of the
same political party as the President.
‘‘(C) PROHIBITION
ON
FEDERAL
EMPLOY-
MENT.—No member of the Committee may be an
officer or employee of the Federal Government. If
any member of the Committee commences em-
ployment as an officer or employee of the Federal
Government after the date on which the member
is appointed to the Committee, the member may
continue to serve as a member of the Committee
for not more than 30 days after the date on
which the member commences employment as
such an officer or employee.
‘‘(D) SERVICE TERM.—Each member of the
Committee shall serve for a term of 3 years.
‘‘(E) VACANCIES.—Not later than 30 days
after the date on which a vacancy in the mem-
bership of the Committee occurs, the vacancy be
filled in the same manner as the original ap-
pointment.
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‘‘(F) CHAIRPERSON.—The Committee shall
select a Chairperson from among the members of
the Committee. Any vacancy in the office of the
Chairperson of the Committee shall be filled by
the Committee at the first meeting of the Com-
mittee following the date on which the vacancy
occurs.
‘‘(G) INITIAL
APPOINTMENTS.—Not later
than 60 days after the date of enactment of this
Act, the Administrator shall appoint the initial
members of the Committee.
‘‘(3) DUTIES.—The Committee shall—
‘‘(A) review, coordinate, and monitor plans
and programs developed in the public and pri-
vate sectors, that affect the ability of veteran-
owned business enterprises to obtain capital and
credit;
‘‘(B) promote and assist in the development
of business information and surveys relating to
veterans;
‘‘(C) monitor and promote the plans, pro-
grams, and operations of the departments and
agencies of the Federal Government that may
contribute to the establishment and growth of
veteran’s business enterprises;
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‘‘(D) develop and promote new initiatives,
policies, programs, and plans designed to foster
veteran’s business enterprises; and
‘‘(E) advise and assist in the design of a
comprehensive plan, which shall be updated an-
nually, for joint public-private sector efforts to
facilitate growth and development of veteran’s
business enterprises.
‘‘(4) POWERS.—
‘‘(A) HEARINGS.—The Committee may hold
such hearings, sit and act at such times and
places, take such testimony, and receive such evi-
dence as the Committee considers advisable to
carry out the duties of the Committee under this
subsection.
‘‘(B) INFORMATION FROM FEDERAL AGEN-
CIES.—The Committee may secure directly from
any department or agency of the Federal Gov-
ernment such information as the Committee con-
siders to be necessary to carry out the duties of
the Committee under this subsection. Upon re-
quest of the Chairperson of the Committee, the
head of such department or agency shall furnish
such information to the Committee.
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‘‘(C) POSTAL
SERVICES.—The Committee
may use the United States mails in the same
manner and under the same conditions as other
departments and agencies of the Federal Govern-
ment.
‘‘(D) GIFTS.—The Committee may accept,
use, and dispose of gifts or donations of services
or property.
‘‘(5) MEETINGS.—
‘‘(A) IN
GENERAL.—The Committee shall
meet not less than biannually at the call of the
Chairperson, and otherwise upon the request of
the Administrator.
‘‘(B) LOCATION.—Each meeting of the full
Committee shall be held at the headquarters of
the Administration located in Washington, Dis-
trict of Columbia. The Administrator shall pro-
vide suitable meeting facilities and such admin-
istrative support as may be necessary for each
meeting of the Committee.
‘‘(6) PERSONNEL MATTERS.—
‘‘(A) NO COMPENSATION.—Members of the
Committee shall serve without compensation for
their services to the Committee.
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‘‘(B) TRAVEL EXPENSES.—The members of
the Committee shall be reimbursed for travel and
subsistence expenses in the same manner and to
the same extent as members of advisory boards
and committees under section 8(b)(13).
‘‘(c) SCORE PROGRAM.—The Administrator shall enter
into a memorandum of understanding with the Service Core
of Retired Executives (in this subsection referred to as
‘SCORE’) participating in the program under section
8(b)(1)(B) for—
‘‘(1) the appointment by SCORE in its national
office of a National Veterans Business Coordinator,
whose exclusive duties shall be those relating to veter-
ans’ business matters, and who shall be responsible for
the establishment and administration of a program to
provide entrepreneurial counseling and training to
veterans through the chapters of SCORE throughout
the United States;
‘‘(2) the establishment and maintenance of a toll-
free telephone number and an Internet website to pro-
vide access for veterans to information about the en-
trepreneurial services available to veterans through
SCORE; and
‘‘(3) the collection of statistics concerning serv-
ices provided by SCORE to veterans and service-dis-
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abled veterans and the inclusion of those statistics in
each annual report published by the Administrator
under section 4(b)(2)(B).
‘‘(d) ANNUAL REPORT.—Beginning on March 31,
2000, and on March 31 of each year thereafter, the Admin-
istrator shall submit to the Committees on Small Business
of the House of Representative and the Senate a report on
the needs of small business concerns owned by controlled
by veterans and small business concerns owned and con-
trolled by service-disabled veterans, which shall include—
‘‘(1) the availability of programs of the Adminis-
tration for and the degree of utilization of those pro-
grams by those small business concerns during the 12-
month period preceding the date on which the report
is submitted;
‘‘(2) the percentage and dollar value of Federal
contracts awarded to those small business concerns
during the 12-month period preceding the date on
which the report is submitted; and
‘‘(3) proposed methods to improve delivery of all
Federal programs and services that could benefit those
small business concerns.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$2,500,000 for each fiscal year.’’.
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(2) by striking subparagraph (B).
SEC. 208. DISASTER MITIGATION PILOT PROGRAM.
(a) IN GENERAL.—Section 7(b)(1) of the Small Busi-
ness Act (15 U.S.C. 636(b)(1)) is amended—
(1) in subparagraph (B), by adding ‘‘and’’ at
the end; and
(2) by adding at the end the following:
‘‘(C) during fiscal years 1999 through 2003, to
establish a pre-disaster mitigation program to make
such loans (either directly or in cooperation with
banks or other lending institutions through agree-
ments to participate on an immediate or deferred
(guaranteed) basis), as the Administrator may deter-
mine to be necessary or appropriate, to enable small
businesses to install mitigation devices or to take pre-
ventive measures to protect against disasters, in sup-
port of a formal mitigation program established by
the Federal Emergency Management Agency, except
that no loan or guarantee shall be extended to a small
business under this subparagraph unless the Adminis-
tration finds that the small business is otherwise un-
able to obtain credit for the purposes described in this
subparagraph;’’.
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(b) AUTHORIZATION OF APPROPRIATIONS.—Section 20
of the Small Business Act (15 U.S.C. 631 note) is amended
by adding at the end the following:
‘‘(f) DISASTER MITIGATION PILOT PROGRAM.—The
following program levels are authorized for loans under sec-
tion 7(b)(1)(C):
‘‘(1) $15,000,000 for fiscal year 1999.
‘‘(2) $15,000,000 for fiscal year 2000.
‘‘(3) $15,000,000 for fiscal year 2001.
‘‘(4) $15,000,000 for fiscal year 2002.
‘‘(5) $15,000,000 for fiscal year 2003.’’.
(c) EVALUATION.—On January 31, 2001, the Admin-
istrator of the Small Business Administration shall submit
to the Committees on Small Business of the House of Rep-
resentatives and the Senate a report on the effectiveness of
the pilot program authorized by section 7(b)(1)(C) of the
Small Business Act (15 U.S.C. 636(b)(1)(C)), as added by
subsection (a) of this subsection, which report shall in-
clude—
(1) information relating to—
(A) the areas served under the pilot pro-
gram;
(B) the number and dollar value of loans
made under the pilot program; and
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(C) the estimated savings to the Federal
Government resulting from the pilot program;
and
(2) other such information as the Administrator
determines to be appropriate in evaluating the pilot
program.
SEC. 209. MICROLOAN PROGRAM.
(a) IN GENERAL.—Section 7(m) of the Small Business
Act (15 U.S.C. 636(m)) is amended—
(1) in paragraph (7)—
(A) by striking ‘‘(7)’’ and all that follows
through ‘‘During the program’’ and inserting the
following:
‘‘(7) PROGRAM
FUNDING
FOR
MICROLOANS.—
During the program’’; and
(B) by striking subparagraph (B); and
(2) in paragraph (8)—
(A) by inserting ‘‘and providing funding to
intermediaries’’ after ‘‘program applicants’’; and
(B) by inserting ‘‘and provide funding to’’
after ‘‘shall select’’.
(b) LOAN LOSS RESERVE.—Section 7(m)(3)(D) of the
Small Business Act (15 U.S.C. 636(m)(3)(D)) is amend-
ed—
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(1) in the first sentence, by striking ‘‘The Ad-
ministrator’’ and inserting the following:
‘‘(i) 
IN
GENERAL.—The 
Adminis-
trator’’; and
(2) by striking the second sentence and inserting
the following:
‘‘(ii) LEVEL OF LOAN LOSS RESERVE
FUND.—
‘‘(I) IN
GENERAL.—Subject to
subclause 
(II), 
the 
Administration
shall require the loan loss reserve fund
to be maintained at a level equal to
not more than 15 percent of the out-
standing balance of the microloans
owed to the intermediary.
‘‘(II) REDUCTION OF LOAN LOSS
RESERVE
REQUIREMENT.—After 
the
initial 5 years of an intermediary’s
participation in the program under
this subsection, upon the initial request
of the intermediary made at any time
after that period, the Administrator
shall annually conduct a review of the
average annual loss rate of the inter-
mediary and, if the intermediary dem-
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onstrates to the satisfaction of the Ad-
ministrator that the average annual
loss rate for the intermediary during
the preceding 5-year period is less than
15 percent, and the Administrator de-
termines that no other factor exists
that is likely to impair the ability of
the intermediary to repay all obliga-
tions owed to the Administration
under this subsection, the Adminis-
trator shall reduce that annual loan
loss reserve requirement to reflect the
actual average annual loss rate for
that intermediary during that period,
except that in no case shall the loan
loss reserve requirement for an inter-
mediary be reduced to less than 10 per-
cent of the outstanding balance of the
microloans owed to the intermediary.’’.
SEC. 210. REAL ESTATE APPRAISALS.
(a) SMALL BUSINESS INVESTMENT ACT OF 1958.—
Section 502(3) of the Small Business Investment Act of
1958 (15 U.S.C. 696(3)) is amended by adding at the end
the following:
‘‘(F) REAL ESTATE APPRAISALS.—
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‘‘(i) LOANS EXCEEDING $250,000.—Not-
withstanding any other provision of law, if
a loan under this section involves the use of
more than $250,000 of the loan proceeds for
a real estate transaction, prior to disburse-
ment of the loan, the Administrator shall
require an appraisal of the real estate by a
State licensed or certified appraiser.
‘‘(ii) LOANS
OF
$250,000
OR
LESS.—
Notwithstanding any other provision of law,
if a loan under this subsection involves the
use of $250,000 or less of the loan proceeds
for a real estate transaction, prior to dis-
bursement of the loan, the participating
lender may, in accordance with the policy
of the participating lender with respect to
loans made without a government guaran-
tee, require an appraisal of the real estate
by a State licensed or certified appraiser.
‘‘(iii) DEFINITION.—In this subpara-
graph, the term ‘real estate transaction’ in-
cludes the acquisition or construction of
land or a building and any improvement to
land or to a building.’’.
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(b) SMALL BUSINESS ACT.—Section 7(a) of the Small
Business Act (15 U.S.C. 636(a)) is amended by adding at
the end the following:
‘‘(27) REAL ESTATE APPRAISALS.—
‘‘(A) LOANS EXCEEDING $250,000.—Notwith-
standing any other provision of law, if a loan
guaranteed under this subsection involves the use
of more than $250,000 of the loan proceeds for
a real estate transaction, prior to disbursement
of the loan, the Administrator shall require an
appraisal of the real estate by a State licensed
or certified appraiser.
‘‘(B) LOANS OF $250,000 OR LESS.—Notwith-
standing any other provision of law, if a loan
guaranteed under this subsection involves the use
of $250,000 or less of the loan proceeds for a real
estate transaction, prior to disbursement of the
loan, the participating lender may, in accord-
ance with the policy of the participating lender
with respect to loans made without a government
guarantee, require an appraisal of the real estate
by a State licensed or certified appraiser.
‘‘(C) DEFINITION.—In this paragraph, the
term ‘real estate transaction’ includes the acqui-
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sition or construction of land or a building and
any improvement to land or to a building.’’.
SEC. 211. COMMUNITY DEVELOPMENT VENTURE CAPITAL
DEMONSTRATION PROGRAM.
(a) FINDINGS.—Congress finds that—
(1) there is a need for the development and ex-
pansion of organizations that provide private equity
capital to smaller businesses in areas in which eq-
uity-type capital is scarce, such as inner cities and
rural areas, in order to create and retain jobs for low-
income residents of those areas;
(2) to invest successfully in smaller businesses,
particularly in inner cities and rural areas, requires
highly specialized investment and management skills;
(3) there is a shortage of professionals who pos-
sess such skills and there are few training grounds for
individuals to obtain those skills;
(4) providing assistance to organizations that
provide specialized technical assistance and training
to individuals and organizations seeking to enter or
expand in this segment of the market would stimulate
small business development and entrepreneurship in
economically distressed communities; and
(5) assistance from the Federal Government
could act as a catalyst to attract investment from the
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private sector and would help to develop a specialized
venture capital industry focused on creating jobs, in-
creasing business ownership, and generating wealth
in low-income communities.
(b) COMMUNITY DEVELOPMENT VENTURE CAPITAL AC-
TIVITIES.—The Small Business Act (15 U.S.C. 631 et seq.)
is amended—
(1) by redesignating section 33 (as redesignated
by section 206(b)(2) of this Act) as section 34; and
(2) by inserting after section 32 (as added by
section 206(b)(2) of this Act) the following:
‘‘SEC. 33. COMMUNITY DEVELOPMENT VENTURE CAPITAL
ACTIVITIES.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) COMMUNITY DEVELOPMENT VENTURE CAP-
ITAL ORGANIZATION.—The term ‘community develop-
ment venture capital organization’ means a pri-
vately-controlled organization that—
‘‘(A) has a primary mission of promoting
community development in low-income commu-
nities, as defined by the Administrator, through
investment in private business enterprises; or
‘‘(B) administers or is in the process of es-
tablishing a community development venture
capital fund for the purpose of making equity
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investments in private business enterprises in
such communities.
‘‘(2) 
DEVELOPMENTAL
ORGANIZATION.—The
term ‘developmental organization’—
‘‘(A) means a public or private entity, in-
cluding a college or university, that provides
technical assistance to community development
venture capital organizations or that conducts
research or training in community development
venture capital investment; and
‘‘(B) may include an intermediary organi-
zation.
‘‘(3) INTERMEDIARY ORGANIZATION.—The term
‘intermediary organization’—
‘‘(A) means a private, nonprofit entity that
has—
‘‘(i) a primary mission of promoting
community development through investment
in private businesses in low-income commu-
nities; and
‘‘(ii) significant prior experience in
providing technical assistance or financial
assistance to community development ven-
ture capital organizations;
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‘‘(B) may include community development
venture capital organizations.
‘‘(b) AUTHORITY.—In order to promote the develop-
ment of community development venture capital organiza-
tions, the Administrator, may—
‘‘(1) enter into contracts with 1 or more develop-
mental organizations to carry out training and re-
search activities under subsection (c); and
‘‘(2) make grants in accordance with this sec-
tion—
‘‘(A) to developmental organizations to
carry out training and research activities under
subsection (c); and
‘‘(B) to intermediary organizations to pro-
vide intensive marketing, management, and tech-
nical assistance and training to community de-
velopment venture capital organizations under
subsection (d).
‘‘(c) TRAINING AND RESEARCH ACTIVITIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), a
developmental organization that receives a grant
under subsection (b) shall use the funds made avail-
able through the grant for 1 or more of the following
training and research activities:
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‘‘(A) 
STRENGTHENING
PROFESSIONAL
SKILLS.—Creating and operating training pro-
grams to enhance the professional skills for indi-
viduals in community development venture cap-
ital organizations or operating private commu-
nity development venture capital funds.
‘‘(B) INCREASING INTEREST IN COMMUNITY
DEVELOPMENT
VENTURE
CAPITAL.—Creating
and operating a program to select and place stu-
dents and recent graduates from business and re-
lated professional schools as interns with commu-
nity development venture capital organizations
and intermediary organizations for a period of
up to 1 year, and to provide stipends for such
interns during the internship period.
‘‘(C) PROMOTING ‘BEST PRACTICES’.—Orga-
nizing an annual national conference for com-
munity development venture capital organiza-
tions to discuss and share information on the
best practices regarding issues relevant to the
creation and operation of community develop-
ment venture capital organizations.
‘‘(D) MOBILIZING ACADEMIC RESOURCES.—
Encouraging the formation of 1 or more centers
for the study of community development venture
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capital at graduate schools of business and man-
agement; providing funding for the development
of materials for courses on topics in this area;
and providing funding for research on economic,
operational, and policy issues relating to com-
munity development venture capital.
‘‘(2) LIMITATION.—The Administrator shall en-
sure that not more than 25 percent of the amount
made available to carry out this section is used for
activities described in paragraph (1).
‘‘(d) INTENSIVE
MARKETING, MANAGEMENT, 
AND
TECHNICAL ASSISTANCE AND TRAINING.—An intermediary
organization that receives a grant under subsection (b) shall
use the funds made available through the grant to provide
intensive marketing, management, and technical assistance
and training to promote the development of community de-
velopment venture capital organizations, which assistance
may include grants to community development venture cap-
ital organizations for the start up costs and operating sup-
port of those organizations.
‘‘(e) MATCHING REQUIREMENT.—The Administrator
shall require, as a condition of any grant made to an inter-
mediary organization under this section, that a matching
amount equal to the amount of such grant be provided from
sources other than the Federal Government.
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‘‘(f) REQUIREMENTS.—The Administrator may pro-
mulgate such regulations as may be necessary to carry out
this section, which regulations may take effect upon
issuance.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section a
total of $20,000,000 for fiscal years 1999 through 2002.’’.
SEC. 212. TECHNICAL AMENDMENTS.
(a) SMALL BUSINESS ACT.—Section 3(p) of the Small
Business Act (15 U.S.C. 632(p)) is amended—
(1) in paragraph (1)(A), by inserting ‘‘located in
a metropolitan statistical area (as defined in section
143(k)(2)(B) of the Internal Revenue Code of 1986)’’
before the semicolon;
(2) in paragraph (3)(B), by striking ‘‘; or’’ at
the end and inserting a period; and
(3) in paragraph (4)—
(A) in subparagraph (A), by striking ‘‘(I)’’;
and
(B) in subparagraph (B)—
(i) in clause (ii), by striking ‘‘(ii)’’
and inserting ‘‘(II)’’; and
(ii) in clause (i), by striking ‘‘Depart-
ment of Commerce’’ and all that follows
through ‘‘median household’’ and inserting
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the following: ‘‘Department of Commerce, is
not located in a metropolitan statistical
area (as defined in section 143(k)(2)(B) of
the Internal Revenue Code of 1986); and
‘‘(ii)(I) in which the median house-
hold’’.
(b) SMALL BUSINESS INVESTMENT ACT OF 1958.—
Section 101 of the Small Business Investment Act of 1958
(15 U.S.C. 661 note) is amended by striking the table of
contents.
TITLE III—SMALL BUSINESS EN-
VIRONMENTAL 
ASSISTANCE
PILOT PROGRAM
SEC. 301. PILOT PROGRAM.
The Small Business Act (15 U.S.C. 637 et seq.) is
amended by inserting after section 21A the following:
‘‘SEC. 21B. SMALL BUSINESS ENVIRONMENTAL ASSISTANCE
PILOT PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ADVISORY
COMMITTEE.—The term ‘Advi-
sory Committee’ means the Advisory Committee on
Small Business Environmental Assistance Programs
established under subsection (b).
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Comptroller General of the United States shall
submit to the Committees on Small Business of
the House of Representatives and the Senate an
evaluation of the demonstration program estab-
lished under this section. The criteria for such
evaluation shall be based on the strategy and rec-
ommendation in the Advisory Committee report
and developed under the direction of the Com-
mittees on Small Business of the House of Rep-
resentatives and the Senate.
‘‘(7) TERMINATION.—The Advisory Committee
shall terminate on the date on which the report is
submitted under subsection (b)(3)(D).
‘‘(c) DEMONSTRATION PROGRAM.—
‘‘(1) NOTICE
OF
PROGRAM
ESTABLISHMENT.—
Not later than 60 days after the date on which the
Advisory Committee submits the report under sub-
section (b)(3)(D), the Administration shall publish in
the Federal Register a notice of the demonstration
program under this section, which shall include ap-
plication requirements for small business development
centers seeking to participate in the program, includ-
ing selection criteria based on the strategy and rec-
ommendation included in the report of the Advisory
Committee under subsection (b)(3)(D).