H. R. 1568—3
severe disability, the spouse or permanent caregiver of
such veteran.
‘‘(3) SMALL BUSINESS CONCERN OWNED AND CONTROLLED
BY VETERANS.—The term ‘small business concern owned and
controlled by veterans’ means a small business concern—
‘‘(A) not less than 51 percent of which is owned by
one 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 one or more veterans; and
‘‘(B) the management and daily business operations
of which are controlled by one 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) APPLICABILITY TO THIS ACT.—In this Act, the definitions
contained in section 3(q) of the Small Business Act, as added
by this section, apply.
TITLE II—VETERANS BUSINESS
DEVELOPMENT
SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE SMALL BUSI-
NESS ADMINISTRATION.
(a) IN GENERAL.—Section 4(b)(1) of the Small Business Act
(15 U.S.C. 633(b)(1)) is amended—
(1) in the fifth sentence, by striking ‘‘four Associate
Administrators’’ and inserting ‘‘five Associate Administrators’’;
and
(2) by inserting after the fifth sentence the following: ‘‘One
such Associate Administrator shall be the Associate Adminis-
trator for Veterans Business Development, who shall admin-
ister the Office of Veterans Business Development established
under section 32.’’.
(b) OFFICE OF VETERANS BUSINESS DEVELOPMENT; ASSOCIATE
ADMINISTRATOR.—The Small Business Act (15 U.S.C. 631 et seq.)
is amended—
(1) by redesignating section 32 as section 34; and
(2) by inserting after section 31 the following:
‘‘SEC. 32. VETERANS PROGRAMS.
‘‘(a) OFFICE OF VETERANS BUSINESS DEVELOPMENT.—There is
established in the Administration an Office of Veterans Business
Development, which shall be administered by the Associate
Administrator for Veterans Business Development (in this section
referred to as the ‘Associate Administrator’) appointed under section
4(b)(1).
‘‘(b) ASSOCIATE
ADMINISTRATOR
FOR
VETERANS
BUSINESS
DEVELOPMENT.—The Associate Administrator—
‘‘(1) shall be an appointee in the Senior Executive Service;
‘‘(2) shall be responsible for the formulation, execution,
and promotion of policies and programs of the Administration
that provide assistance to small business concerns owned and
controlled by veterans and small business concerns owned and
controlled by service-disabled veterans. The Associate Adminis-
trator shall act as an ombudsman for full consideration of
veterans in all programs of the Administration; and
H. R. 1568—4
‘‘(3) shall report to and be responsible directly to the
Administrator.’’.
SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORA-
TION.
(a) IN GENERAL.—The Small Business Act (15 U.S.C. 631 et
seq.) is amended by inserting after section 32 (as added by this
Act) the following:
‘‘SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORA-
TION.
‘‘(a) ESTABLISHMENT.—There is established a federally char-
tered corporation to be known as the National Veterans Business
Development Corporation (in this section referred to as the ‘Corpora-
tion’) which shall be incorporated under the laws of the District
of Columbia and which shall have the powers granted in this
section.
‘‘(b) PURPOSES
OF
THE CORPORATION.—The purposes of the
Corporation shall be—
‘‘(1) to expand the provision of and improve access to tech-
nical assistance regarding entrepreneurship for the Nation’s
veterans; and
‘‘(2) to assist veterans, including service-disabled veterans,
with the formation and expansion of small business concerns
by working with and organizing public and private resources,
including those of the Small Business Administration, the
Department of Veterans Affairs, the Department of Labor, the
Department of Commerce, the Department of Defense, the
Service Corps of Retired Executives (described in section
8(b)(1)(B) of this Act), the Small Business Development Centers
(described in section 21 of this Act), and the business develop-
ment staffs of each department and agency of the United States.
‘‘(c) BOARD OF DIRECTORS.—
‘‘(1) IN
GENERAL.—The management of the Corporation
shall be vested in a Board of Directors composed of nine voting
members and three nonvoting ex officio members.
‘‘(2) APPOINTMENT
OF
VOTING
MEMBERS.—The President
shall, after considering recommendations which shall be pro-
posed by the Chairmen and Ranking Members of the Commit-
tees on Small Business and the Committees on Veterans Affairs
of the House of Representatives and the Senate, appoint United
States citizens to be voting members of the Board, not more
than five of whom shall be members of the same political
party.
‘‘(3) EX OFFICIO MEMBERS.—The Administrator of the Small
Business Administration, the Secretary of Defense, and the
Secretary of Veterans Affairs shall serve as the nonvoting ex
officio members of the Board of Directors.
‘‘(4) INITIAL APPOINTMENTS.—The initial members of the
Board of Directors shall be appointed not later than 60 days
after the date of enactment of this Act.
‘‘(5) CHAIRPERSON.—The members of the Board of Directors
appointed under paragraph (2) shall elect one such member
to serve as chairperson of the Board of Directors for a term
of 2 years.
‘‘(6) TERMS OF APPOINTED MEMBERS.—
H. R. 1568—5
‘‘(A) IN GENERAL.—Each member of the Board of Direc-
tors appointed under paragraph (2) shall serve a term
of 6 years, except as provided in subparagraph (B).
‘‘(B) TERMS OF INITIAL APPOINTEES.—As designated by
the President at the time of appointment, of the members
first appointed—
‘‘(i) three shall be for a term of 2 years; and
‘‘(ii) three shall be for a term of 4 years.
‘‘(C) UNEXPIRED
TERMS.—Any member of the Board
of Directors appointed to fill a vacancy occurring before
the expiration of the term for which the member’s prede-
cessor was appointed shall be appointed only for the
remainder of the term. A member may serve after the
expiration of that member’s term until a successor has
taken office.
‘‘(7) VACANCIES.—Any vacancy on the Board of Directors
shall be filled in the manner in which the original appointment
was made. In the case of a vacancy in the office of the Adminis-
trator of the Small Business Administration or the Secretary
of Veterans Affairs, and pending the appointment of a successor,
an acting appointee for such vacancy may serve as an ex
officio member.
‘‘(8) INELIGIBILITY FOR OTHER OFFICES.—No voting member
of the Board of Directors may be an officer or employee of
the United States while serving as a member of the Board
of Directors or during the 2-year period preceding such service.
‘‘(9) IMPARTIALITY AND NONDISCRIMINATION.—The Board of
Directors shall administer the affairs of the Corporation fairly
and impartially and without discrimination.
‘‘(10) OBLIGATIONS AND EXPENSES.—The Board of Directors
shall prescribe the manner in which the obligations of the
Corporation may be incurred and in which its expenses shall
be allowed and paid.
‘‘(11) QUORUM.—Five voting members of the Board of Direc-
tors shall constitute a quorum, but a lesser number may hold
hearings.
‘‘(d) CORPORATE POWERS.—On October 1, 1999, the Corporation
shall become a body corporate and as such shall have the authority
to do the following:
‘‘(1) To adopt and use a corporate seal.
‘‘(2) To have succession until dissolved by an Act of
Congress.
‘‘(3) To make contracts or grants.
‘‘(4) To sue and be sued, and to file and defend against
lawsuits in State or Federal court.
‘‘(5) To appoint, through the actions of its Board of Direc-
tors, officers and employees of the Corporation, to define their
duties and responsibilities, fix their compensations, and to dis-
miss at will such officers or employees.
‘‘(6) To prescribe, through the actions of its Board of Direc-
tors, bylaws not inconsistent with Federal law and the law
of the State of incorporation, regulating the manner in which
its general business may be conducted and the manner in
which the privileges granted to it by law may be exercised.
‘‘(7) To exercise, through the actions of its Board of Direc-
tors or duly authorized officers, all powers specifically granted
H. R. 1568—6
by the provisions of this section, and such incidental powers
as shall be necessary.
‘‘(8) To solicit, receive, and disburse funds from private,
Federal, State and local organizations.
‘‘(9) To accept and employ or dispose of in furtherance
of the purposes of this section any money or property, real,
personal, or mixed, tangible or intangible, received by gift,
devise, bequest, or otherwise.
‘‘(10) To accept voluntary and uncompensated services.
‘‘(e) CORPORATE FUNDS.—
‘‘(1) DEPOSIT
OF
FUNDS.—The Board of Directors shall
deposit all funds of the Corporation in federally chartered and
insured depository institutions until such funds are disbursed
under paragraph (2).
‘‘(2) DISBURSEMENT OF FUNDS.—Funds of the Corporation
may be disbursed only for purposes that are—
‘‘(A) approved by the Board of Directors by a recorded
vote with a quorum present; and
‘‘(B) in accordance with the purposes of the Corporation
as specified in subsection (b).
‘‘(f ) NETWORK OF INFORMATION AND ASSISTANCE CENTERS.—
In carrying out the purpose described in subsection (b), the Corpora-
tion shall establish and maintain a network of information and
assistance centers for use by veterans and the public.
‘‘(g) ANNUAL REPORT.—On or before October 1 of each year,
the Board of Directors shall transmit a report to the President
and the Congress describing the activities and accomplishments
of the Corporation for the preceding year and the Corporation’s
findings regarding the efforts of Federal, State and private organiza-
tions to assist veterans in the formation and expansion of small
business concerns.
‘‘(h) ASSUMPTION
OF DUTIES
OF ADVISORY COMMITTEE.—On
October 1, 2004, the Corporation established under this section
shall assume the duties, responsibilities, and authority of the
Advisory Committee on Veterans Affairs established under section
203 of this Act.
‘‘(i) USE OF MAILS.—The Corporation may use the United States
mails in the same manner and under the same conditions as the
departments and agencies of the United States.
‘‘( j) PROFESSIONAL CERTIFICATION ADVISORY BOARD.—
‘‘(1) IN GENERAL.—Acting through the Board of Directors,
the Corporation shall establish a Professional Certification
Advisory Board to create uniform guidelines and standards
for the professional certification of members of the Armed Serv-
ices to aid in their efficient and orderly transition to civilian
occupations and professions and to remove potential barriers
in the areas of licensure and certification.
‘‘(2) MEMBERSHIP.—The members of the Advisory Board
shall serve without compensation, shall meet in the District
of Columbia no less than quarterly, and shall be appointed
by the Board of Directors as follows:
‘‘(A) PRIVATE SECTOR MEMBERS.—The Corporation shall
appoint not less than seven members for terms of 2 years
to represent private sector organizations and associations,
including the American Association of Community Colleges,
the Society for Human Resource Managers, the Coalition
H. R. 1568—7
for Professional Certification, the Council on Licensure and
Enforcement, and the American Legion.
‘‘(B) PUBLIC SECTOR MEMBERS.—The Corporation shall
invite public sector members to serve at the discretion
of their departments or agencies and shall—
‘‘(i) encourage the participation of the Under
Secretary of Defense for Personnel and Readiness;
‘‘(ii) encourage the participation of two officers
from each branch of the Armed Forces to represent
the Training Commands of their branch; and
‘‘(iii) seek the participation and guidance of the
Assistant Secretary of Labor for Veterans’ Employment
and Training.
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN
GENERAL.—Subject to paragraph (2), there are
authorized to be appropriated to the Corporation to carry out
this section—
‘‘(A) $2,000,000 for fiscal year 2000;
‘‘(B) $4,000,000 for fiscal year 2001;
‘‘(C) $4,000,000 for fiscal year 2002; and
‘‘(D) $2,000,000 for fiscal year 2003.
‘‘(2) MATCHING REQUIREMENT.—
‘‘(A) FISCAL YEAR 2001.—The amount made available
to the Corporation for fiscal year 2001 may not exceed
twice the amount that the Corporation certifies that it
will provide for that fiscal year from sources other than
the Federal Government.
‘‘(B) SUBSEQUENT FISCAL YEARS.—The amount made
available to the Corporation for fiscal year 2002 or 2003
may not exceed the amount that the Corporation certifies
that it will provide for that fiscal year from sources other
than the Federal Government.
‘‘(3) PRIVATIZATION.—The Corporation shall institute and
implement a plan to raise private funds and become a self-
sustaining corporation.’’.
(b) GAO REPORT.—Not later than 180 days after the last day
of the second fiscal year beginning after the date on which the
initial members of the Board of Directors of the National Veterans
Business Development Corporation are appointed under section
33(c) of the Small Business Act (as added by this section), the
Comptroller General of the United States shall evaluate the
effectiveness of the National Veterans Business Development Cor-
poration in carrying out the purposes under section 33(b) of the
Small Business Act (as added by this section), and submit to Con-
gress a report on the results of that evaluation.
SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS.
(a) IN GENERAL.—There is established an advisory committee
to be known as the ‘‘Advisory Committee on Veterans Business
Affairs’’ (in this section referred to as the ‘‘Committee’’), which
shall serve as an independent source of advice and policy rec-
ommendations to—
(1) the Administrator of the Small Business Administration
(in this section referred to as the ‘‘Administrator’’);
(2) the Associate Administrator for Veterans Business
Development of the Small Business Administration;
(3) the Congress;
H. R. 1568—8
(4) the President; and
(5) other United States policymakers.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Committee shall be composed of 15
members, of whom—
(A) eight shall be veterans who are owners of small
business concerns (within the meaning of the term under
section 3 of the Small Business Act (15 U.S.C. 632)); and
(B) seven shall be representatives of veterans organiza-
tions.
(2) APPOINTMENT.—
(A) IN GENERAL.—The members of the Committee shall
be appointed by the Administrator in accordance with this
section.
(B) INITIAL APPOINTMENTS.—Not later than 90 days
after the date of the enactment of this Act, the Adminis-
trator shall appoint the initial members of the Committee.
(3) POLITICAL AFFILIATION.—Not more than eight members
of the Committee shall be of the same political party as the
President.
(4) PROHIBITION ON FEDERAL EMPLOYMENT.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), no member of the Committee may serve as an officer
or employee of the United States.
(B) EXCEPTION.—A member of the Committee who
accepts a position as an officer or employee of the United
States after the date of the member’s appointment to the
Committee may continue to serve on the Committee for
not more than 30 days after such acceptance.
(5) TERM OF SERVICE.—
(A) IN
GENERAL.—Subject to subparagraph (B), the
term of service of each member of the Committee shall
be 3 years.
(B) TERMS OF INITIAL APPOINTEES.—As designated by
the Administrator at the time of appointment, of the mem-
bers first appointed—
(i) six shall be appointed for a term of 4 years;
and
(ii) five shall be appointed for a term of 5 years.
(6) VACANCIES.—The Administrator shall fill any vacancies
on the membership of the Committee not later than 30 days
after the date on which such vacancy occurs.
(7) CHAIRPERSON.—
(A) IN GENERAL.—The members of the Committee shall
elect one of the members to be Chairperson of the Com-
mittee.
(B) VACANCIES
IN
OFFICE
OF
CHAIRPERSON.—Any
vacancy in the office of the Chairperson of the Committee
shall be filled by the Committee at the first meeting of
the Committee following the date on which the vacancy
occurs.
(c) DUTIES.—The duties of the Committee shall be the following:
(1) Review, coordinate, and monitor plans and programs
developed in the public and private sectors, that affect the
ability of small business concerns owned and controlled by
veterans to obtain capital and credit and to access markets.
H. R. 1568—9
(2) Promote the collection of business information and
survey data as they relate to veterans and small business
concerns owned and controlled by veterans.
(3) Monitor and promote plans, programs, and operations
of the departments and agencies of the United States that
may contribute to the formation and growth of small business
concerns owned and controlled by veterans.
(4) Develop and promote initiatives, policies, programs, and
plans designed to foster small business concerns owned and
controlled by veterans.
(5) In cooperation with the National Veterans Business
Development Corporation, develop a comprehensive plan, to
be updated annually, for joint public-private sector efforts to
facilitate growth and development of small business concerns
owned and controlled by veterans.
(d) POWERS.—
(1) HEARINGS.—Subject to subsection (e), the Committee
may hold such hearings, sit and act at such times and places,
take such testimony, and receive such evidence as the Com-
mittee considers advisable to carry out its duties.
(2) INFORMATION FROM FEDERAL AGENCIES.—Upon request
of the Chairperson of the Committee, the head of any depart-
ment or agency of the United States shall furnish such informa-
tion to the Committee as the Committee considers to be nec-
essary to carry out its duties.
(3) USE OF MAILS.—The Committee may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the United States.
(4) GIFTS.—The Committee may accept, use, and dispose
of gifts or donations of services or property.
(e) MEETINGS.—
(1) IN GENERAL.—The Committee shall meet, not less than
three times per year, at the call of the Chairperson or at
the request of the Administrator.
(2) LOCATION.—Each meeting of the full Committee shall
be held at the headquarters of the Small Business Administra-
tion located in Washington, District of Columbia. The Adminis-
trator shall provide suitable meeting facilities and such
administrative support as may be necessary for each full
meeting of the Committee.
(3) TASK GROUPS.—The Committee may, from time-to-time,
establish temporary task groups as may be necessary in order
to carry out its duties.
(f ) COMPENSATION AND EXPENSES.—
(1) NO COMPENSATION.—Members of the Committee shall
serve without compensation for their service to the Committee.
(2) EXPENSES.—The members of the Committee shall be
reimbursed for travel and subsistence expenses in accordance
with section 5703 of title 5, United States Code.
(g) REPORT.—Not later than 30 days after the end of each
fiscal year beginning after the date of the enactment of this section,
the Committee shall transmit to the Congress and the President
a report describing the activities of the Committee and any rec-
ommendations developed by the Committee for the promotion of
small business concerns owned and controlled by veterans.
(h) TERMINATION.—The Committee shall terminate its business
on September 30, 2004.
H. R. 1568—10
TITLE III—TECHNICAL ASSISTANCE
SEC. 301. SCORE PROGRAM.
(a) IN GENERAL.—The Administrator of the Small Business
Administration shall enter into a memorandum of understanding
with the Service Core of Retired Executives (described in section
8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B)) and
in this section referred to as ‘‘SCORE’’) to provide for the following:
(1) The appointment by SCORE in its national office of
an individual to act as National Veterans Business Coordinator,
whose duties shall relate exclusively to veterans business mat-
ters, and who shall be responsible for the establishment and
administration of a program to coordinate counseling and
training regarding entrepreneurship to veterans through the
chapters of SCORE throughout the United States.
(2) The assistance of SCORE in the establishing and
maintaining a toll-free telephone number and an Internet
website to provide access for veterans to information about
the counseling and training regarding entrepreneurship avail-
able to veterans through SCORE.
(3) The collection of statistics concerning services provided
by SCORE to veterans, including service-disabled veterans, for
inclusion in each annual report published by the Administrator
under section 4(b)(2)(B) of the Small Business Act (15 U.S.C.
633(b)(2)(B)).
(b) RESOURCES.—The Administrator shall provide to SCORE
such resources as the Administrator determines necessary for
SCORE to carry out the requirements of the memorandum of under-
standing specified in paragraph (1).
SEC. 302. ENTREPRENEURIAL ASSISTANCE.
Not later than 180 days after the date of the enactment of
this Act, the Secretary of Veterans Affairs, the Administrator of
the Small Business Administration, and the head of the association
formed pursuant to section 21(a)(3)(A) of the Small Business Act
(15 U.S.C. 648(a)(3)(A)) shall enter into a memorandum of under-
standing with respect to entrepreneurial assistance to veterans,
including service-disabled veterans, through Small Business
Development Centers (described in section 21 of the Small Business
Act (15 U.S.C. 648)) and facilities of the Department of Veterans
Affairs. Such assistance shall include the following:
(1) Conducting of studies and research, and the distribution
of information generated by such studies and research, on
the formation, management, financing, marketing, and oper-
ation of small business concerns by veterans.
(2) Provision of training and counseling to veterans con-
cerning the formation, management, financing, marketing, and
operation of small business concerns.
(3) Provision of management and technical assistance to
the owners and operators of small business concerns regarding
international markets, the promotion of exports, and the
transfer of technology.
(4) Provision of assistance and information to veterans
regarding procurement opportunities with Federal, State, and
local agencies, especially such agencies funded in whole or
in part with Federal funds.
H. R. 1568—11
(5) Establishment of an information clearinghouse to collect
and distribute information, including by electronic means, on
the assistance programs of Federal, State, and local govern-
ments, and of the private sector, including information on office
locations, key personnel, telephone numbers, mail and elec-
tronic addresses, and contracting and subcontracting opportuni-
ties.
(6) Provision of Internet or other distance learning aca-
demic instruction for veterans in business subjects, including
accounting, marketing, and business fundamentals.
(7) Compilation of a list of small business concerns owned
and controlled by service-disabled veterans that provide prod-
ucts or services that could be procured by the United States
and delivery of such list to each department and agency of
the United States. Such list shall be delivered in hard copy
and electronic form and shall include the name and address
of each such small business concern and the products or services
that it provides.
SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT ASSISTANCE
FOR MILITARY RESERVISTS’ SMALL BUSINESSES.
(a) IN GENERAL.—Section 8 of the Small Business Act (15
U.S.C. 637) is amended by adding at the end the following:
‘‘(l) 
MANAGEMENT
ASSISTANCE
FOR
SMALL
BUSINESSES
AFFECTED BY MILITARY OPERATIONS.—The Administration shall uti-
lize, as appropriate, its entrepreneurial development and manage-
ment assistance programs, including programs involving State or
private sector partners, to provide business counseling and training
to any small business concern adversely affected by the deployment
of units of the Armed Forces of the United States in support
of a period of military conflict (as defined in section 7(n)(1)).’’.
(b) ENHANCED PUBLICITY DURING OPERATION ALLIED FORCE.—
For the duration of Operation Allied Force and for 120 days there-
after, the Administration shall enhance its publicity of the avail-
ability of assistance provided pursuant to the amendment made
by this section, including information regarding the appropriate
local office at which affected small businesses may seek such assist-
ance.
(c) GUIDELINES.—Not later than 30 days after the date of the
enactment of this section, the Administrator of the Small Business
Administration shall issue such guidelines as the Administrator
determines to be necessary to carry out this section and the amend-
ment made by this section.
TITLE IV—FINANCIAL ASSISTANCE
SEC. 401. GENERAL BUSINESS LOAN PROGRAM.
(a) DEFINITION OF HANDICAPPED INDIVIDUAL.—Section 3(f ) of
the Small Business Act (15 U.S.C. 632(f )) is amended to read
as follows:
‘‘(f ) For purposes of section 7 of this Act, the term ‘handicapped
individual’ means an individual—
‘‘(1) who has a physical, mental, or emotional impairment,
defect, ailment, disease, or disability of a permanent nature
which in any way limits the selection of any type of employment
H. R. 1568—12
for which the person would otherwise be qualified or qualifiable;
or
‘‘(2) who is a service-disabled veteran.’’.
(b) AUTHORIZATION TO MAKE LOANS.—Section 7(a)(10) of the
Small Business Act (15 U.S.C. 636(a)(10)) is amended—
(1) by inserting ‘‘guaranteed’’ after ‘‘provide’’; and
(2) by inserting ‘‘, including service-disabled veterans,’’ after
‘‘handicapped individual’’.
SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERVISTS.
(a) REPAYMENT DEFERRAL
FOR ACTIVE DUTY RESERVISTS.—
Section 7 of the Small Business Act (15 U.S.C. 636) is amended
by adding at the end the following:
‘‘(n) REPAYMENT DEFERRED FOR ACTIVE DUTY RESERVISTS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) ELIGIBLE RESERVIST.—The term ‘eligible reservist’
means a member of a reserve component of the Armed
Forces ordered to active duty during a period of military
conflict.
‘‘(B) 
ESSENTIAL
EMPLOYEE.—The 
term 
‘essential
employee’ means an individual who is employed by a small
business concern and whose managerial or technical exper-
tise is critical to the successful day-to-day operations of
that small business concern.
‘‘(C) PERIOD OF MILITARY CONFLICT.—The term ‘period
of military conflict’ means—
‘‘(i) a period of war declared by the Congress;
‘‘(ii) a period of national emergency declared by
the Congress or by the President; or
‘‘(iii) a period of a contingency operation, as defined
in section 101(a) of title 10, United States Code.
‘‘(D) QUALIFIED BORROWER.—The term ‘qualified bor-
rower’ means—
‘‘(i) an individual who is an eligible reservist and
who received a direct loan under subsection (a) or
(b) before being ordered to active duty; or
‘‘(ii) a small business concern that received a direct
loan under subsection (a) or (b) before an eligible
reservist, who is an essential employee, was ordered
to active duty.
‘‘(2) DEFERRAL OF DIRECT LOANS.—
‘‘(A) IN
GENERAL.—The Administration shall, upon
written request, defer repayment of principal and interest
due on a direct loan made under subsection (a) or (b),
if such loan was incurred by a qualified borrower.
‘‘(B) PERIOD OF DEFERRAL.—The period of deferral for
repayment under this paragraph shall begin on the date
on which the eligible reservist is ordered to active duty
and shall terminate on the date that is 180 days after
the date such eligible reservist is discharged or released
from active duty.
‘‘(C) INTEREST RATE REDUCTION DURING DEFERRAL.—
Notwithstanding any other provision of law, during the
period of deferral described in subparagraph (B), the
Administration may, in its discretion, reduce the interest
rate on any loan qualifying for a deferral under this para-
graph.
H. R. 1568—13
‘‘(3) 
DEFERRAL
OF
LOAN
GUARANTEES
AND
OTHER
FINANCINGS.—The Administration shall—
‘‘(A) encourage intermediaries participating in the pro-
gram under subsection (m) to defer repayment of a loan
made with proceeds made available under that subsection,
if such loan was incurred by a small business concern
that is eligible to apply for assistance under subsection
(b)(3); and
‘‘(B) not later than 30 days after the date of the enact-
ment of this subsection, establish guidelines to—
‘‘(i) encourage lenders and other intermediaries to
defer repayment of, or provide other relief relating
to, loan guarantees under subsection (a) and financings
under section 504 of the Small Business Investment
Act of 1958 that were incurred by small business con-
cerns that are eligible to apply for assistance under
subsection (b)(3), and loan guarantees provided under
subsection (m) if the intermediary provides relief to
a small business concern under this paragraph; and
‘‘(ii) implement a program to provide for the
deferral of repayment or other relief to any inter-
mediary providing relief to a small business borrower
under this paragraph.’’.
(b) DISASTER LOAN ASSISTANCE
FOR MILITARY RESERVISTS’
SMALL BUSINESSES.—Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting after the undesignated para-
graph that begins with ‘‘Provided, That no loan’’, the following:
‘‘(3)(A) In this paragraph—
‘‘(i) the term ‘essential employee’ means an individual
who is employed by a small business concern and whose
managerial or technical expertise is critical to the success-
ful day-to-day operations of that small business concern;
‘‘(ii) the term ‘period of military conflict’ has the
meaning given the term in subsection (n)(1); and
‘‘(iii) the term ‘substantial economic injury’ means an
economic harm to a business concern that results in the
inability of the business concern—
‘‘(I) to meet its obligations as they mature;
‘‘(II) to pay its ordinary and necessary operating
expenses; or
‘‘(III) to market, produce, or provide a product
or service ordinarily marketed, produced, or provided
by the business concern.
‘‘(B) The Administration may make such disaster loans
(either directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis) to assist a small business concern that has
suffered or that is likely to suffer substantial economic injury
as the result of an essential employee of such small business
concern being ordered to active military duty during a period
of military conflict.
‘‘(C) A small business concern described in subparagraph
(B) shall be eligible to apply for assistance under this paragraph
during the period beginning on the date on which the essential
employee is ordered to active duty and ending on the date
that is 90 days after the date on which such essential employee
is discharged or released from active duty.
H. R. 1568—14
‘‘(D) Any loan or guarantee extended pursuant to this para-
graph shall be made at the same interest rate as economic
injury loans under paragraph (2).
‘‘(E) No loan may be made under this paragraph, either
directly or in cooperation with banks or other lending institu-
tions through agreements to participate on an immediate or
deferred basis, if the total amount outstanding and committed
to the borrower under this subsection would exceed $1,500,000,
unless such applicant constitutes a major source of employment
in its surrounding area, as determined by the Administration,
in which case the Administration, in its discretion, may waive
the $1,500,000 limitation.
‘‘(F) For purposes of assistance under this paragraph, no
declaration of a disaster area shall be required.’’.
(c) ENHANCED PUBLICITY DURING OPERATION ALLIED FORCE.—
For the duration of Operation Allied Force and for 120 days there-
after, the Administration shall enhance its publicity of the avail-
ability of assistance provided pursuant to the amendments made
by this section, including information regarding the appropriate
local office at which affected small businesses may seek such assist-
ance.
(d) GUIDELINES.—Not later than 30 days after the date of
the enactment of this section, the Administrator of the Small Busi-
ness Administration shall issue such guidelines as the Adminis-
trator determines to be necessary to carry out this section and
the amendments made by this section.
(e) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall take effect on the
date of the enactment of this section.
(2) DISASTER LOANS.—The amendments made by subsection
(b) shall apply to economic injury suffered or likely to be suf-
fered as the result of a period of military conflict occurring
or ending on or after March 24, 1999.
SEC. 403. MICROLOAN PROGRAM.
Section 7(m)(1)(A)(i) of the Small Business Act (15 U.S.C.
636(m)(1)(A)(i)) is amended by inserting ‘‘veteran (within the
meaning of such term under section 3(q)),’’ after ‘‘low-income,’’.
SEC. 404. DEFENSE ECONOMIC TRANSITION LOAN PROGRAM.
Section 7(a)(21)(A)(ii) of the Small Business Act (15 U.S.C.
636(a)(21)(A)(ii)) is amended by inserting ‘‘or a veteran’’ after ‘‘quali-
fied individual’’.
SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.
Section 501(d)(3) of the Small Business Investment Act of 1958
(15 U.S.C. 695(d)(3)) is amended—
(1) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (F), (G), and (H), respectively; and
(2) by inserting after subparagraph (D) the following:
‘‘(E) expansion of small business concerns owned and
controlled by veterans, as defined in section 3(q) of the
Small Business Act (15 U.S.C. 632(q)), especially service-
disabled veterans, as defined in such section 3(q),’’.
H. R. 1568—15
TITLE V—PROCUREMENT ASSISTANCE
SEC. 501. SUBCONTRACTING.
(a) STATEMENT OF POLICY.—Section 8(d)(1) of the Small Busi-
ness Act (15 U.S.C. 637(d)(1)) is amended by inserting ‘‘small busi-
ness concerns owned and controlled by service-disabled veterans,’’
after ‘‘small business concerns,’’ the first place it appears in the
first and second sentences.
(b) CONTRACT CLAUSE.—The contract clause specified in section
8(d)(3) of the Small Business Act (15 U.S.C. 637(d)(3)) is amended
as follows:
(1) Subparagraph (A) of such clause is amended by
inserting ‘‘small business concerns owned and controlled by
veterans,’’ after ‘‘small business concerns,’’ the first place it
appears in the first and second sentences.
(2) Subparagraphs (E) and (F) of such clause are redesig-
nated as subparagraphs (F) and (G), respectively, and the fol-
lowing new subparagraph is inserted after subparagraph (D)
of such clause:
‘‘(E) The term ‘small business concern owned and controlled
by veterans’ shall mean a small business concern—
‘‘(i) which is at least 51 per centum owned by one
or more eligible veterans; or, in the case of any publicly
owned business, at least 51 per centum of the stock of
which is owned by one or more veterans; and
‘‘(ii) whose management and daily business operations
are controlled by such veterans. The contractor shall treat
as veterans all individuals who are veterans within the
meaning of the term under section 3(q) of the Small Busi-
ness Act.’’.
(3) Subparagraph (F) of such clause, as redesignated by
paragraph (2) of this subsection, is amended by inserting ‘‘small
business concern owned and controlled by veterans,’’ after
‘‘small business concern,’’ the first place it appears.
(c) CONFORMING AMENDMENTS.—Section 8(d) of the Small Busi-
ness Act (15 U.S.C. 637(d)) is amended by inserting ‘‘small business
concerns owned and controlled by veterans,’’ after ‘‘small business
concerns,’’ the first place it appears in each of paragraphs (4)(D),
(4)(E), (6)(A), (6)(C), (6)(F), and (10)(B).
SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.
(a) GOVERNMENT-WIDE PARTICIPATION GOALS.—Section 15(g)(1)
of the Small Business Act (15 U.S.C. 644(g)(1)) is amended—
(1) in the first sentence, by inserting ‘‘small business con-
cerns owned and controlled by service disabled veterans,’’ after
‘‘small business concerns,’’ the first place it appears;
(2) by inserting after the second sentence, the following:
‘‘The Government-wide goal for participation by small business
concerns owned and controlled by service-disabled veterans
shall be established at not less than 3 percent of the total
value of all prime contract and subcontract awards for each
fiscal year.’’; and
(3) in the second to last sentence, by inserting ‘‘small
business concerns owned and controlled by service-disabled vet-
erans,’’ after ‘‘small business concerns,’’ the first place it
appears.
H. R. 1568—16
(b) AGENCY PARTICIPATION GOALS.—Section 15 of the Small
Business Act (15 U.S.C. 644(g)(2)) is amended—
(1) in the first sentence, by inserting ‘‘by small business
concerns owned and controlled by service-disabled veterans,’’
after ‘‘small business concerns,’’; the first place it appears;
(2) in the second sentence, by inserting ‘‘small business
concerns owned and controlled by service-disabled veterans,’’
after ‘‘small business concerns,’’ the first place it appears; and
(3) in the fourth sentence, by inserting ‘‘small business
concerns owned and controlled by service-disabled veterans,
by’’ after ‘‘including participation by’’.
TITLE VI—REPORTS AND DATA
COLLECTION
SEC. 601. REPORTING REQUIREMENTS.
(a) REPORTS
TO SMALL BUSINESS ADMINISTRATION.—Section
15(h)(1) of the Small Business Act (15 U.S.C. 644(h)(1)) is amended
by inserting ‘‘small business concerns owned and controlled by
veterans (including service-disabled veterans),’’ after ‘‘small busi-
ness concerns,’’ the first place it appears.
(b) REPORTS TO THE PRESIDENT AND THE CONGRESS.—Section
15(h)(2) of the Small Business Act (15 U.S.C. 644(h)(2)) is
amended—
(1) by inserting ‘‘and the Congress’’ before the period at
the end of first sentence; and
(2) in each of subparagraphs (A), (D), and (E), by inserting
‘‘small business concerns owned and controlled by service-dis-
abled veterans,’’ after ‘‘small business concerns,’’ the first place
it appears.
SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.
Section 303(e) of the Small Business Economic Policy Act of
1980 (15 U.S.C. 631b(e)) is amended—
(1) in paragraph (1), by striking ‘‘and’’ after the semicolon;
(2) in paragraph (2), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) small business concerns owned and controlled by
veterans, as defined in section 3(q) of the Small Business Act
(15 U.S.C. 632(q)), and small business concerns owned and
controlled by service-disabled veterans, as defined in such sec-
tion 3(q).’’.
SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.
The Administrator of the Small Business Administration shall
transmit annually to the Committees on Small Business and Vet-
erans Affairs of the House of Representatives and the Senate a
report on the needs of small business concerns owned and controlled
by veterans and small business concerns owned and controlled
by service-disabled veterans, which shall include information on—
(1) the availability of Small Business Administration pro-
grams for such small business concerns and the degree of
utilization of such programs by such small business concerns
during the preceding 12-month period, including statistical
H. R. 1568—17
information on such utilization as compared to the small busi-
ness community as a whole;
(2) the percentage and dollar value of Federal contracts
awarded to such small business concerns during the preceding
12-month period, based on the data collected pursuant to section
604(d); and
(3) proposals to improve the access of such small business
concerns to the assistance made available by the United States.
SEC. 604. DATA AND INFORMATION COLLECTION.
(a) INFORMATION ON FEDERAL PROCUREMENT PRACTICES.—The
Administrator of the Small Business Administration shall, for each
fiscal year—
(1) collect information concerning the procurement practices
and procedures of each department and agency of the United
States having procurement authority;
(2) publish and disseminate such information to procure-
ment officers in all Federal agencies; and
(3) make such information available to any small business
concern requesting such information.
(b) IDENTIFICATION OF SMALL BUSINESS CONCERNS OWNED BY
ELIGIBLE VETERANS.—Each fiscal year, the Secretary of Veterans
Affairs shall, in consultation with the Assistant Secretary of Labor
for Veterans’ Employment and Training and the Administrator
of the Small Business Administration, identify small business con-
cerns owned and controlled by veterans in the United States. The
Secretary shall inform each small business concern identified under
this paragraph that information on Federal procurement is available
from the Administrator.
(c) 
SELF-EMPLOYMENT
OPPORTUNITIES.—The 
Secretary 
of
Labor, the Secretary of Veterans Affairs, and the Administrator
of the Small Business Administration shall enter into a memo-
randum of understanding to provide for coordination of vocational
rehabilitation services, technical and managerial assistance, and
financial assistance to veterans, including service-disabled veterans,
seeking to employ themselves by forming or expanding small busi-
ness concerns. The memorandum of understanding shall include
recommendations for expanding existing programs or establishing
new programs to provide such services or assistance to such vet-
erans.
(d) DATA COLLECTION REQUIRED.—The Federal Procurement
Data System described in section 6(d)(4)(A) of the Office of Federal
Procurement Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified
to collect data regarding the percentage and dollar value of prime
contracts and subcontracts awarded to small business concerns
owned and controlled by veterans and small business concerns
owned and controlled by service-disabled veterans.
TITLE VII—MISCELLANEOUS
PROVISIONS
SEC. 701. ADMINISTRATOR’S ORDER.
The Administrator of the Small Business Administration shall
strengthen and reissue the Administrator’s order regarding the
third sentence of section 4(b)(1) of the Small Business Act (15
H. R. 1568—18
U.S.C. 633(b)(1)), relating to nondiscrimination and special consider-
ations for veterans, and take all necessary steps to ensure that
its provisions are fully and vigorously implemented.
SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF ADVOCACY.
Section 202 of Public Law 94–305 (15 U.S.C. 634b) is
amended—
(1) in paragraph (10), by striking ‘‘and’’ at the end;
(2) in paragraph (11), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(12) evaluate the efforts of each department and agency
of the United States, and of private industry, to assist small
business concerns owned and controlled by veterans, as defined
in section 3(q) of the Small Business Act (15 U.S.C. 632(q)),
and small business concerns owned and controlled by serviced-
disabled veterans, as defined in such section 3(q), and to provide
statistical information on the utilization of such programs by
such small business concerns, and to make appropriate rec-
ommendations to the Administrator of the Small Business
Administration and to the Congress in order to promote the
establishment and growth of those small business concerns.’’.
SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.
(a) IN GENERAL.—The Comptroller General shall conduct a
study on whether there would exist any additional risk or cost
to the United States if—
(1) up to 10 percent of the loans guaranteed under chapter
37 of title 38, United States Code, were made for the acquisition
or construction of fixed assets used in a trade or business
rather than for the construction or purchase of residential
buildings; and
(2) such loans for acquisition or construction of fixed assets
were for a term of not more than 10 years and the terms
regarding eligibility, loan limits, interest, fees, and down pay-
ment were the same as for other loans guaranteed under such
chapter.
(b) REPORT.—
(1) IN GENERAL.—Not later than 180 days after the enact-
ment of this Act, the Comptroller General shall transmit the
report described in subsection (a) to the Committees on Vet-
erans’ Affairs and the Committees on Small Business of the
House of Representatives and the Senate.
(2) CONTENTS OF REPORT.—The report required by para-
graph (1) shall specifically address the following:
(A) With respect to the change in the veterans’ housing
loan program contemplated under subsection (a):
(i) The increase or decrease in administrative costs
to the Department of Veterans Affairs.
(ii) The increase or decrease in the degree of expo-
sure of the United States as the guarantor of the
loans.
(iii) The increase or decrease in the Federal sub-
sidy rate that would be possible.
(iv) Any increase in the interest rate or fees
charged to the borrower or lender that would be
required to maintain present program costs.
H. R. 1568—19
(B) Information regarding the delinquency rates,
default rates, length of time required for recovery after
default, for fixed-asset business loans, of a size and dura-
tion comparable to those contemplated under subsection
(a), made available in the private market or under section
503 of the Small Business Investment Act of 1958.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.