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ministrator shall prescribe, such areas as the Admin-
istrator may deem appropriate, if—
‘‘(A) the proposed center has been identi-
fied and included in an approved district invest-
ment strategy and recommended by the State
or States affected for such special designation;
‘‘(B) the proposed center is geographically
and economically so related to the district that
its economic growth may reasonably be expected
to contribute significantly to the alleviation of
distress in the areas described in section 502(a)
of the district; and
‘‘(C) the proposed center does not have a
population in excess of 250,000 according to
the most recent Federal census.
‘‘(3) provide financial assistance in accordance
with the criteria of this Act, except as may be herein
otherwise provided, for projects in economic develop-
ment centers designated under subsection (a)(2),
if—
‘‘(A) the project will further the objectives
of the investment strategy of the district in
which it is to be located;
‘‘(B) the project will enhance the economic
growth potential of the district or result in ad-
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ditional long-term employment opportunities
commensurate with the amount of Federal fi-
nancial assistance requested; and
‘‘(C) the amount of Federal financial as-
sistance requested is reasonably related to the
size, population, and economic needs of the dis-
trict;
‘‘(4) subject to the 50 percent non-Federal
share required for any project by section 201(c), in-
crease the amount of grant assistance authorized by
section 201 for projects within areas described in
section 502(a), by an amount not to exceed 10 per-
cent of the aggregate cost of any such project, in ac-
cordance with such regulations as the Administrator
shall prescribe if—
‘‘(A) the area described in section 502(a)
is situated within a designated economic devel-
opment district and is actively participating in
the economic development activities of the dis-
trict; and
‘‘(B) the project is consistent with an ap-
proved investment strategy.
‘‘(b) AUTHORITIES.—In designating economic devel-
opment districts and approving district investment strate-
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gies under subsection (a), the Administrator may, under
regulations prescribed by the Administrator—
‘‘(1) invite the several States to draw up pro-
posed district boundaries and to identify potential
economic development centers;
‘‘(2) cooperate with the several States—
‘‘(A) in sponsoring and assisting district
economic planning and development groups;
and
‘‘(B) in assisting such district groups to
formulate district investment strategies; and
‘‘(3) encourage participation by appropriate
local governmental authorities in such economic de-
velopment districts.
‘‘(c) TERMINATION OR MODIFICATION OF DESIGNA-
TIONS.—The Administrator shall by regulation prescribe
standards for the termination or modification of economic
development districts and economic development centers
designated under the authority of this section.
‘‘(d) DEFINITIONS.—In this Act, the following defini-
tions apply:
‘‘(1) ECONOMIC DEVELOPMENT DISTRICT.—The
term ‘economic development district’ refers to any
area within the United States composed of cooperat-
ing areas described in section 502(a) and, where ap-
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propriate, designated economic development centers
and neighboring counties or communities, which has
been designated by the Administrator as an eco-
nomic development district. Such term includes any
economic development district designated under sec-
tion 403 of this Act, as in effect on the day before
the effective date specified in section 802.
‘‘(2) ECONOMIC DEVELOPMENT CENTER.—The
term ‘economic development center’ refers to any
area within the United States which has been identi-
fied as an economic development center in an ap-
proved investment strategy and which has been des-
ignated by the Administrator as eligible for financial
assistance under this Act in accordance with the
provisions of this section.
‘‘(3) LOCAL
GOVERNMENT.—The term ‘local
government’ means any city, county, town, parish,
village, or other general-purpose political subdivision
of a State.
‘‘(e) PARTS OF ECONOMIC DEVELOPMENT DISTRICTS
NOT WITHIN AREAS DESCRIBED IN SECTION 502(a).—
The Administrator is authorized to provide the financial
assistance which is available to an area described in sec-
tion 502(a) under this Act to those parts of an economic
development district which are not within an area de-
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scribed in section 502(a), when such assistance will be of
a substantial direct benefit to an area described in section
502(a) within such district. Such financial assistance shall
be provided in the same manner and to the same extent
as is provided in this Act for an area described in section
502(a); except that nothing in this subsection shall be con-
strued to permit such parts to receive the increase in the
amount of grant assistance authorized in subsection
(a)(4).
‘‘TITLE VI—ADMINISTRATION
‘‘SEC. 601. APPOINTMENT OF ASSOCIATE ADMINISTRATOR;
FULL TIME EQUIVALENT EMPLOYEES.
‘‘(a) APPOINTMENT.—The Administrator shall carry
out the duties vested in the Administrator by this Act act-
ing through an Associate Administrator of the Small Busi-
ness Administration, who shall be appointed by the Presi-
dent by and with the advice and consent of the Senate.
‘‘(b) PAY.—The Associate Administrator shall be
compensated by the Federal Government at the rate pre-
scribed for level V of the Executive Schedule under section
5316 of title 5, United States Code.
‘‘(c) FULL TIME EQUIVALENT EMPLOYEES.—The
Administrator shall assign not to exceed 25 full time
equivalent employees of the Small Business Administra-
tion (excluding the Associate Administrator) to assist the
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Administrator in the carrying out the duties vested in the
Administrator by this Act.
‘‘SEC. 602. REGIONAL COOPERATIVE AGREEMENTS.
‘‘(a) IN GENERAL.—The Administrator shall make
grants and carry out such other functions under this Act
as the Administrator considers appropriate by entering
into cooperative agreements with 1 or more States on a
regional basis. Each State entering into such an agree-
ment shall be represented by the chief executive officer
of the State.
‘‘(b) TERMS AND CONDITIONS.—A cooperative agree-
ment entered into under subsection (a) shall include such
terms and conditions as the Administrator determines are
necessary to carry out the provisions of this Act. Such
terms and conditions at a minimum shall provide that no
decision concerning regional policies or approval of project
or grant applications may be made without the consent
of the Administrator and a majority of the States partici-
pating in the cooperative agreement.
‘‘(c) PARTICIPATION NOT REQUIRED.—No State
shall be required to enter into a cooperative agreement
under this section or to participate in any program estab-
lished by this Act.
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‘‘SEC. 603. ADMINISTRATIVE EXPENSES.
‘‘(a) PAYMENT BY STATES.—Fifty percent of the ad-
ministrative expenses incurred by States in participating
in a cooperative agreement entered into under section 602
shall be paid by such States and the remaining 50 percent
of such expenses shall be paid by the Federal Government.
‘‘(b) DETERMINATION OF STATE SHARE.—The share
of the administrative expenses to be paid by each State
participating in a cooperative agreement shall be deter-
mined by a majority vote of such States. The Adminis-
trator may not participate or vote in such determination.
‘‘(c) DELINQUENT PAYMENTS.—No assistance au-
thorized by this Act shall be furnished to any State or
to any political subdivision or resident of a State, nor shall
the State participate or vote in any decision described in
section 602(b), while such State is delinquent in the pay-
ment of such State’s share of the administrative expenses
described in subsection (a).
‘‘SEC. 604. FEDERAL SHARE.
‘‘Except as otherwise expressly provided by this Act,
the Federal share of the cost of any project funded with
amounts made available under this Act shall not exceed
50 percent of such cost.
‘‘SEC. 605. COOPERATION OF FEDERAL AGENCIES.
‘‘Each Federal department and agency, in accordance
with applicable laws and within the limits of available