I 
109TH CONGRESS 
1ST SESSION H. R. 1661 
To amend the Small Business Act and the Communications Act of 1934 
to increase participation by small businesses in spectrum auctions con-
ducted by the Federal Communications Commission. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 14, 2005 
Mr. RUSH introduced the following bill; which was referred to the Committee 
on Small Business, and in addition to the Committee on Energy and 
Commerce, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Small Business Act and the Communications 
Act of 1934 to increase participation by small businesses 
in spectrum auctions conducted by the Federal Commu-
nications Commission. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. PURPOSE. 
The purpose of this Act is to increase telecommuni-
cations ownership opportunities for small businesses, in-
cluding small businesses owned or controlled by socially 
disadvantaged individuals, through Small Business Ad-
ministration participation in a market-oriented restruc-
turing of the credit aspects of Federal Communications 
Commission telecommunications spectrum auctions. 
SEC. 2. ASSOCIATE ADMINISTRATOR FOR TELECOMMUNI-
CATIONS FINANCE. 
(a) IN GENERAL.—Section 4(b)(1) of the Small Busi-
ness Act (15 U.S.C. 633(b)(1)) is amended— 
(1) in the fifth sentence, by striking ‘‘five’’ and 
inserting ‘‘six’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘One of the Associate Administrators shall be 
designated at the time of appointment as the Asso-
ciate Administrator for Telecommunications Finance 
and shall have the qualifications and responsibilities 
specified in subsection (g).’’. 
(b) QUALIFICATIONS AND RESPONSIBILITIES.—Sec-
tion 4 of the Small Business Act (15 U.S.C. 633) is 
amended by adding at the end the following new sub-
section: 
‘‘(g) 
ASSOCIATE
ADMINISTRATOR
FOR
TELE-
COMMUNICATIONS FINANCE.— 
‘‘(1) IN
GENERAL.—The Associate Adminis-
trator for Telecommunications Finance—
‘‘(A) shall be an employee in the competi-
tive service or in the Senior Executive Service 
and a career appointee; 
‘‘(B) shall be responsible to the Adminis-
trator for the supervision and management of 
financing in the area of telecommunications, in-
cluding the programs and other activities under 
section 38 and section 39; 
‘‘(C) shall establish, with respect to tele-
communications concerns, the detailed defini-
tions or standards referred to in section 
3(a)(2); 
‘‘(D) shall have authority— 
‘‘(i) to prescribe maximum amounts 
for loan guarantees under any program 
under section 38 or 39; 
‘‘(ii) to approve all loan guarantees in 
telecommunications; and 
‘‘(iii) to approve all direct loans under 
section 38(a)(1); and 
‘‘(E) in addition to any other duties under 
this Act, shall have authority to approve loan 
guarantees under section 7(a) with respect to 
Federal Communications Commission spectrum 
licenses acquired in the secondary market.
‘‘(2) NEUTRALITY IN CHOICE OF PROGRAM BY 
APPLICANT
FOR
LOAN
OR
LOAN
GUARANTEE.—In 
the administration of the Telecommunications Spec-
trum Installment Loan Program under section 38 
and the Telecommunications Accelerated Certified 
Lender Program under section 39, the Associate Ad-
ministrator for Telecommunications Finance shall 
observe strict neutrality as to the choice that a po-
tential applicant may make as to the appropriate-
ness of a program for the applicant. The choice of 
one program over the other shall be solely that of 
the applicant and the Associate Administrator shall 
neither encourage nor discourage any applicant in 
that choice.’’. 
SEC. 3. SMALL BUSINESS ADMINISTRATION FINANCING 
FOR 
ENTREPRENEUR 
PARTICIPATION 
IN 
TELECOMMUNICATIONS 
SPECTRUM 
AUC-
TIONS CONDUCTED BY FEDERAL COMMU-
NICATIONS COMMISSION. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 37 as section 40; 
and 
(2) by inserting after section 36 the following 
new sections:
‘‘SEC. 37. TELECOMMUNICATIONS FINANCE OFFICE. 
‘‘(a) IN GENERAL.—There is established, within the 
Administration, an office to perform functions relating to 
the policies and programs of the Administration with re-
spect to financing in the area of telecommunications. The 
office— 
‘‘(1) shall be known as the ‘Telecommunications 
Finance Office’; 
‘‘(2) shall be headed by the Associate Adminis-
trator for Telecommunications Finance under sec-
tion 4(g); 
‘‘(3) shall be staffed by employees who are from 
diverse backgrounds and who are highly skilled in 
the areas of telecommunications technology and tele-
communications financing; and 
‘‘(4) shall be the principal entity within the Ad-
ministration for implementation of the programs 
under sections 38 and 39. 
‘‘(b) FUNDING.—The expenses of the Telecommuni-
cations Finance Office shall be paid from the Tele-
communications Loan Guarantee Fund, established under 
section 715 of the Communications Act of 1934.