106TH CONGRESS
2D SESSION
H.R. 2392
AMENDMENT
TO
SENATE AMENDMENT
In the House of Representatives, U. S.,
September 25, 2000.
Resolved, That the House agree to the amendment of the
Senate to the bill (H.R. 2392) entitled ‘‘An Act to amend the
Small Business Act to extend the authorization for the Small
Business Innovation Research Program, and for other pur-
poses’’, with the following
AMENDMENT:
SECTION 1. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Table of contents.
TITLE I—SMALL BUSINESS INNOVATION RESEARCH PROGRAM
Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Extension of SBIR program.
Sec. 104. Annual report.
Sec. 105. Third phase assistance.
Sec. 106. Report on programs for annual performance plan.
Sec. 107. Output and outcome data.
Sec. 108. National Research Council reports.
Sec. 109. Federal agency expenditures for the SBIR program.
Sec. 110. Policy directive modifications.
Sec. 111. Federal and State technology partnership program.
Sec. 112. Mentoring networks.
Sec. 113. Simplified reporting requirements.
Sec. 114. Rural outreach program extension.
TITLE II—GENERAL BUSINESS LOAN PROGRAM
Sec. 201. Short title.
Sec. 202. Levels of participation.
Sec. 203. Loan amounts.
Sec. 204. Interest on defaulted loans.
Sec. 205. Prepayment of loans.
Sec. 206. Guarantee fees.
Sec. 207. Lease terms.
TITLE III—CERTIFIED DEVELOPMENT COMPANY PROGRAM
Sec. 301. Short title.
Sec. 302. Women-owned businesses.
Sec. 303. Maximum debenture size.
Sec. 304. Fees.
Sec. 305. Premier certified lenders program.
Sec. 306. Sale of certain defaulted loans.
Sec. 307. Loan liquidation.
TITLE IV—CORRECTIONS TO THE SMALL BUSINESS INVESTMENT
ACT OF 1958
Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Investment in small business investment companies.
Sec. 404. Subsidy fees.
Sec. 405. Distributions.
Sec. 406. Conforming amendment.
TITLE V—REAUTHORIZATION OF SMALL BUSINESS PROGRAMS
Sec. 501. Short title.
Sec. 502. Reauthorization of small business programs.
Sec. 503. Additional reauthorizations.
TITLE VI—MISCELLANEOUS PROVISIONS
Sec. 601. Loan application processing.
Sec. 602. Application of ownership requirements.
Sec. 603. Eligibility for HUBZone program.
Sec. 604. Subcontracting preference for veterans.
Sec. 605. Small business development center program funding.
Sec. 606. Surety bonds.
TITLE I—SMALL BUSINESS INNO-
VATION RESEARCH PROGRAM
SEC. 101. SHORT TITLE.
(a) SHORT TITLE.—This title may be cited as the
‘‘Small Business Innovation Research Program Reauthor-
ization Act of 2000’’.
SEC. 102. FINDINGS.
Congress finds that—
(1) the small business innovation research pro-
gram established under the Small Business Innova-
tion Development Act of 1982, and reauthorized by
the Small Business Research and Development En-
hancement Act of 1992 (in this Act referred to as the
‘‘SBIR program’’) is highly successful in involving
small businesses in federally funded research and de-
velopment;
(2) the SBIR program made the cost-effective
and unique research and development capabilities
possessed by the small businesses of the Nation avail-
able to Federal agencies and departments;
(3) the innovative goods and services developed
by small businesses that participated in the SBIR
program have produced innovations of critical impor-
tance in a wide variety of high-technology fields, in-
cluding biology, medicine, education, and defense;
(4) the SBIR program is a catalyst in the pro-
motion of research and development, the commer-
cialization of innovative technology, the development
of new products and services, and the continued excel-
lence of this Nation’s high-technology industries; and
(5) the continuation of the SBIR program will
provide expanded opportunities for one of the Na-
tion’s vital resources, its small businesses, will foster
invention, research, and technology, will create jobs,
and will increase this Nation’s competitiveness in
international markets.
SEC. 103. EXTENSION OF SBIR PROGRAM.
Section 9(m) of the Small Business Act (15 U.S.C.
638(m)) is amended to read as follows:
‘‘(m) TERMINATION.—The authorization to carry out
the Small Business Innovation Research Program estab-
lished under this section shall terminate on September 30,
2008.’’.
SEC. 104. ANNUAL REPORT.
Section 9(b)(7) of the Small Business Act (15 U.S.C.
638(b)(7)) is amended by striking ‘‘and the Committee on
Small Business of the House of Representatives’’ and insert-
ing ‘‘, and to the Committee on Science and the Committee
on Small Business of the House of Representatives,’’.
SEC. 105. THIRD PHASE ASSISTANCE.
Section 9(e)(4)(C)(i) of the Small Business Act (15
U.S.C. 638(e)(4)(C)(i)) is amended by striking ‘‘; and’’ and
inserting ‘‘; or’’.
SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORM-
ANCE PLAN.
Section 9(g) of the Small Business Act (15 U.S.C.
638(g)) is amended—
(1) in paragraph (7), by striking ‘‘and’’ at the
end;
(2) in paragraph (8), by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following new para-
graph:
‘‘(9) include, as part of its annual performance
plan as required by subsections (a) and (b) of section
1115 of title 31, United States Code, a section on its
SBIR program, and shall submit such section to the
Committee on Small Business of the Senate, and the
Committee on Science and the Committee on Small
Business of the House of Representatives; and’’.
SEC. 107. OUTPUT AND OUTCOME DATA.
(a) COLLECTION.—Section 9(g) of the Small Business
Act (15 U.S.C. 638(g)), as amended by section 106 of this
Act, is further amended by adding at the end the following
new paragraph:
‘‘(10) collect, and maintain in a common format
in accordance with subsection (v), such information
from awardees as is necessary to assess the SBIR pro-
gram, including information necessary to maintain
the database described in subsection (k).’’.
(b) REPORT TO CONGRESS.—Section 9(b)(7) of the
Small Business Act (15 U.S.C. 638(b)(7)), as amended by
section 104 of this Act, is further amended by inserting be-
fore the period at the end ‘‘, including the data on output
and outcomes collected pursuant to subsections (g)(10) and
(o)(9), and a description of the extent to which Federal
agencies are providing in a timely manner information
needed to maintain the database described in subsection
(k)’’.
(c) DATABASE.—Section 9(k) of the Small Business
Act (15 U.S.C. 638(k)) is amended to read as follows:
‘‘(k) DATABASE.—
‘‘(1) PUBLIC
DATABASE.—Not later than 180
days after the date of the enactment of the Small
Business Innovation Research Program Reauthoriza-
tion Act of 2000, the Administrator shall develop,
maintain, and make available to the public a search-
able, up-to-date, electronic database that includes—
‘‘(A) the name, size, location, and an iden-
tifying number assigned by the Administrator, of
each small business concern that has received a
first phase or second phase SBIR award from a
Federal agency;
‘‘(B) a description of each first phase or sec-
ond phase SBIR award received by that small
business concern, including—
‘‘(i) an abstract of the project funded
by the award, excluding any proprietary
information so identified by the small busi-
ness concern;
‘‘(ii) the Federal agency making the
award; and
‘‘(iii) the date and amount of the
award;
‘‘(C) an identification of any business con-
cern or subsidiary established for the commercial
application of a product or service for which an
SBIR award is made; and
‘‘(D) information regarding mentors and
Mentoring Networks, as required by section
35(d).
‘‘(2) GOVERNMENT DATABASE.—Not later than
180 days after the date of the enactment of the Small
Business Innovation Research Program Reauthoriza-
tion Act of 2000, the Administrator, in consultation
with Federal agencies required to have an SBIR pro-
gram pursuant to subsection (f)(1), shall develop and
maintain a database to be used solely for SBIR pro-
gram evaluation that—
‘‘(A) contains for each second phase award
made by a Federal agency—
‘‘(i) information collected in accord-
ance with paragraph (3) on revenue from
the sale of new products or services resulting
from the research conducted under the
award;
‘‘(ii) information collected in accord-
ance with paragraph (3) on additional in-
vestment from any source, other than first
phase or second phase SBIR or STTR
awards, to further the research and develop-
ment conducted under the award; and
‘‘(iii) any other information received
in connection with the award that the Ad-
ministrator, in conjunction with the SBIR
program managers of Federal agencies, con-
siders relevant and appropriate;
‘‘(B) includes any narrative information
that a small business concern receiving a second
phase award voluntarily submits to further de-
scribe the outputs and outcomes of its awards;
‘‘(C) includes for each applicant for a first
phase or second phase award that does not re-
ceive such an award—
‘‘(i) the name, size, and location, and
an identifying number assigned by the Ad-
ministration;
‘‘(ii) an abstract of the project; and
‘‘(iii) the Federal agency to which the
application was made;
‘‘(D) includes any other data collected by or
available to any Federal agency that such agency
considers may be useful for SBIR program eval-
uation; and
‘‘(E) is available for use solely for program
evaluation purposes by the Federal Government
or, in accordance with policy directives issued by
the Administration, by other authorized persons
who are subject to a use and nondisclosure agree-
ment with the Federal Government covering the
use of the database.
‘‘(3) UPDATING INFORMATION FOR DATABASE.—
‘‘(A) IN GENERAL.—A small business con-
cern applying for a second phase award under
this section shall be required to update informa-
tion in the database established under this sub-
section for any prior second phase award re-
ceived by that small business concern. In com-
plying with this paragraph, a small business
concern may apportion sales or additional in-
vestment information relating to more than one
second phase award among those awards, if it
notes the apportionment for each award.
‘‘(B) 
ANNUAL
UPDATES
UPON
TERMI-
NATION.—A small business concern receiving a
second phase award under this section shall—
‘‘(i) update information in the data-
base concerning that award at the termi-
nation of the award period; and
‘‘(ii) be requested to voluntarily update
such information annually thereafter for a
period of 5 years.
‘‘(4) PROTECTION
OF
INFORMATION.—Informa-
tion provided under paragraph (2) shall be considered
privileged and confidential and not subject to disclo-
sure pursuant to section 552 of title 5, United States
Code.
‘‘(5) RULE OF CONSTRUCTION.—Inclusion of in-
formation in the database under this subsection shall
not be considered to be publication for purposes of
subsection (a) or (b) of section 102 of title 35, United
States Code.’’.
SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.
(a) STUDY
AND RECOMMENDATIONS.—The head of
each agency with a budget of more than $50,000,000 for
its SBIR program for fiscal year 1999, in consultation with
the Small Business Administration, shall, not later than
6 months after the date of the enactment of this Act, coop-
eratively enter into an agreement with the National Acad-
emy of Sciences for the National Research Council to—
(1) conduct a comprehensive study of how the
SBIR program has stimulated technological innova-
tion and used small businesses to meet Federal re-
search and development needs, including—
(A) a review of the value to the Federal re-
search agencies of the research projects being con-
ducted under the SBIR program, and of the
quality of research being conducted by small
businesses participating under the program, in-
cluding a comparison of the value of projects
conducted under the SBIR program to those
funded by other Federal research and develop-
ment expenditures;
(B) to the extent practicable, an evaluation
of the economic benefits achieved by the SBIR
program, including the economic rate of return,
and a comparison of the economic benefits, in-
cluding the economic rate of return, achieved by
the SBIR program with the economic benefits,
including the economic rate of return, of other
Federal research and development expenditures;
(C) an evaluation of the noneconomic bene-
fits achieved by the SBIR program over the life
of the program;
(D) a comparison of the allocation for fiscal
year 2000 of Federal research and development
funds to small businesses with such allocation for
fiscal year 1983, and an analysis of the factors
that have contributed to such allocation; and
(E) an analysis of whether Federal agen-
cies, in fulfilling their procurement needs, are
making sufficient effort to use small businesses
that have completed a second phase award under
the SBIR program; and
(2) make recommendations with respect to—
(A) measures of outcomes for strategic plans
submitted under section 306 of title 5, United
States Code, and performance plans submitted
under section 1115 of title 31, United States
Code, of each Federal agency participating in
the SBIR program;
(B) whether companies who can dem-
onstrate project feasibility, but who have not re-
ceived a first phase award, should be eligible for
second phase awards, and the potential impact
of such awards on the competitive selection proc-
ess of the program;
(C) whether the Federal Government should
be permitted to recoup some or all of its expenses
if a controlling interest in a company receiving
an SBIR award is sold to a foreign company or
to a company that is not a small business con-
cern;
(D) how to increase the use by the Federal
Government in its programs and procurements
of technology-oriented small businesses; and
(E) improvements to the SBIR program, if
any are considered appropriate.
(b) PARTICIPATION BY SMALL BUSINESS.—
(1) IN GENERAL.—In a manner consistent with
law and with National Research Council study guide-
lines and procedures, knowledgeable individuals from
the small business community with experience in the
SBIR program shall be included—
(A) in any panel established by the Na-
tional Research Council for the purpose of per-
forming the study conducted under this section;
and
(B) among those who are asked by the Na-
tional Research Council to peer review the study.
(2) CONSULTATION.—To ensure that the concerns
of small business are appropriately considered under
this subsection, the National Research Council shall
consult with and consider the views of the Office of
Technology and the Office of Advocacy of the Small
Business Administration and other interested parties,
including entities, organizations, and individuals ac-
tively engaged in enhancing or developing the techno-
logical capabilities of small business concerns.
(c) PROGRESS REPORTS.—The National Research
Council shall provide semiannual progress reports on the
study conducted under this section to the Committee on
Science and the Committee on Small Business of the House
of Representatives, and to the Committee on Small Business
of the Senate.
(d) REPORT.—The National Research Council shall
transmit to the heads of agencies entering into an agree-
ment under this section and to the Committee on Science
and the Committee on Small Business of the House of Rep-
resentatives, and to the Committee on Small Business of
the Senate—
(1) not later than 3 years after the date of the
enactment of this Act, a report including the results
of the study conducted under subsection (a)(1) and
recommendations made under subsection (a)(2); and
(2) not later than 6 years after that date of the
enactment, an update of such report.
SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR
PROGRAM.
Section 9(i) of the Small Business Act (15 U.S.C.
638(i)) is amended—
(1) by striking ‘‘(i) Each Federal’’ and inserting
the following:
‘‘(i) ANNUAL REPORTING.—
‘‘(1) IN GENERAL.—Each Federal’’; and
(2) by adding at the end the following:
‘‘(2) CALCULATION OF EXTRAMURAL BUDGET.—
‘‘(A) METHODOLOGY.—Not later than 4
months after the date of the enactment of each
appropriations Act for a Federal agency re-
quired by this section to have an SBIR program,
the Federal agency shall submit to the Adminis-
trator a report, which shall include a description
of the methodology used for calculating the
amount of the extramural budget of that Federal
agency.
‘‘(B) 
ADMINISTRATOR’S
ANALYSIS.—The
Administrator shall include an analysis of the
methodology received from each Federal agency
referred to in subparagraph (A) in the report re-
quired by subsection (b)(7).’’.
SEC. 110. POLICY DIRECTIVE MODIFICATIONS.
Section 9(j) of the Small Business Act (15 U.S.C.
638(j)) is amended by adding at the end the following:
‘‘(3) ADDITIONAL
MODIFICATIONS.—Not later
than 120 days after the date of the enactment of the
Small Business Innovation Research Program Reau-
thorization Act of 2000, the Administrator shall mod-
ify the policy directives issued pursuant to this
subsection—
‘‘(A) to clarify that the rights provided for
under paragraph (2)(A) apply to all Federal
funding awards under this section, including the
first phase (as described in subsection (e)(4)(A)),
the second phase (as described in subsection
(e)(4)(B)), and the third phase (as described in
subsection (e)(4)(C));
‘‘(B) to provide for the requirement of a
succinct commercialization plan with each ap-
plication for a second phase award that is mov-
ing toward commercialization;
‘‘(C) to require agencies to report to the Ad-
ministration, not less frequently than annually,
all instances in which an agency pursued re-
search, development, or production of a tech-
nology developed by a small business concern
using an award made under the SBIR program
of that agency, and determined that it was not
practicable to enter into a follow-on non-SBIR
program funding agreement with the small busi-
ness concern, which report shall include, at a
minimum—
‘‘(i) the reasons why the follow-on
funding agreement with the small business
concern was not practicable;
‘‘(ii) the identity of the entity with
which the agency contracted to perform the
research, development, or production; and
‘‘(iii) a description of the type of fund-
ing agreement under which the research, de-
velopment, or production was obtained; and
‘‘(D) to implement subsection (v), including
establishing standardized procedures for the pro-
vision of information pursuant to subsection
(k)(3).’’.
SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNER-
SHIP PROGRAM.
(a) FINDINGS.—Congress finds that—
(1) programs to foster economic development
among small high-technology firms vary widely
among the States;
(2) States that do not aggressively support the
development of small high-technology firms, including
participation by small business concerns in the SBIR
program, are at a competitive disadvantage in estab-
lishing a business climate that is conducive to tech-
nology development; and
(3) building stronger national, State, and local
support for science and technology research in these
disadvantaged States will expand economic opportu-
nities in the United States, create jobs, and increase
the competitiveness of the United States in the world
market.
(b) FEDERAL AND STATE TECHNOLOGY PARTNERSHIP
PROGRAM.—The Small Business Act (15 U.S.C. 631 et seq.)
is amended—
(1) by redesignating section 34 as section 36;
and
(2) by inserting after section 33 the following
new section:
‘‘SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNER-
SHIP PROGRAM.
‘‘(a) DEFINITIONS.—In this section and section 35, the
following definitions apply:
‘‘(1) APPLICANT.—The term ‘applicant’ means
an entity, organization, or individual that submits a
proposal for an award or a cooperative agreement
under this section.
‘‘(2) BUSINESS ADVICE AND COUNSELING.—The
term ‘business advice and counseling’ means pro-
viding advice and assistance on matters described in
section 35(c)(2)(B) to small business concerns to guide
them through the SBIR and STTR program process,
from application to award and successful completion
of each phase of the program.
‘‘(3) FAST PROGRAM.—The term ‘FAST pro-
gram’ means the Federal and State Technology Part-
nership Program established under this section.
‘‘(4) MENTOR.—The term ‘mentor’ means an in-
dividual described in section 35(c)(2).
‘‘(5) MENTORING
NETWORK.—The term ‘Men-
toring Network’ means an association, organization,
coalition, or other entity (including an individual)
that meets the requirements of section 35(c).
‘‘(6) RECIPIENT.—The term ‘recipient’ means a
person that receives an award or becomes party to a
cooperative agreement under this section.
‘‘(7) SBIR PROGRAM.—The term ‘SBIR pro-
gram’ has the same meaning as in section 9(e)(4).
‘‘(8) STATE.—The term ‘State’ means each of the
several States, the District of Columbia, the Common-
wealth of Puerto Rico, the Virgin Islands, Guam, and
American Samoa.
‘‘(9) STTR PROGRAM.—The term ‘STTR pro-
gram’ has the same meaning as in section 9(e)(6).
‘‘(b) ESTABLISHMENT OF PROGRAM.—The Adminis-
trator shall establish a program to be known as the Federal
and State Technology Partnership Program, the purpose of
which shall be to strengthen the technological competitive-
ness of small business concerns in the States.
‘‘(c) GRANTS AND COOPERATIVE AGREEMENTS.—
‘‘(1) JOINT REVIEW.—In carrying out the FAST
program under this section, the Administrator and
the SBIR program managers at the National Science
Foundation and the Department of Defense shall
jointly review proposals submitted by applicants and
may make awards or enter into cooperative agree-
ments under this section based on the factors for con-
sideration set forth in paragraph (2), in order to en-
hance or develop in a State—
‘‘(A) technology research and development
by small business concerns;
‘‘(B) technology transfer from university re-
search to technology-based small business con-
cerns;
‘‘(C) technology deployment and diffusion
benefiting small business concerns;
‘‘(D) the technological capabilities of small
business concerns through the establishment or
operation of consortia comprised of entities, or-
ganizations, or individuals, including—
‘‘(i) State and local development agen-
cies and entities;
‘‘(ii) representatives of technology-
based small business concerns;
‘‘(iii) industries and emerging compa-
nies;
‘‘(iv) universities; and
‘‘(v) small business development cen-
ters; and
‘‘(E) outreach, financial support, and tech-
nical assistance to technology-based small busi-
ness concerns participating in or interested in
participating in an SBIR program, including
initiatives—
‘‘(i) to make grants or loans to compa-
nies to pay a portion or all of the cost of
developing SBIR proposals;
‘‘(ii) to establish or operate a Men-
toring Network within the FAST program
to provide business advice and counseling
that will assist small business concerns that
have been identified by FAST program par-
ticipants, program managers of partici-
pating SBIR agencies, the Administration,
or other entities that are knowledgeable
about the SBIR and STTR programs as
good candidates for the SBIR and STTR
programs, and that would benefit from
mentoring, in accordance with section 35;
‘‘(iii) to create or participate in a
training program for individuals providing
SBIR outreach and assistance at the State
and local levels; and
‘‘(iv) to encourage the commercializa-
tion of technology developed through SBIR
program funding.
‘‘(2) SELECTION CONSIDERATIONS.—In making
awards or entering into cooperative agreements under
this section, the Administrator and the SBIR pro-
gram managers referred to in paragraph (1)—
‘‘(A) may only consider proposals by appli-
cants that intend to use a portion of the Federal
assistance provided under this section to provide
outreach, financial support, or technical assist-
ance to technology-based small business concerns
participating in or interested in participating
in the SBIR program; and
‘‘(B) shall consider, at a minimum—
‘‘(i) whether the applicant has dem-
onstrated that the assistance to be provided
would address unmet needs of small busi-
ness concerns in the community, and wheth-
er it is important to use Federal funding
for the proposed activities;
‘‘(ii) whether the applicant has dem-
onstrated that a need exists to increase the
number or success of small high-technology
businesses in the State, as measured by the
number of first phase and second phase
SBIR awards that have historically been re-
ceived by small business concerns in the
State;
‘‘(iii) whether the projected costs of the
proposed activities are reasonable;
‘‘(iv) whether the proposal integrates
and coordinates the proposed activities with
other State and local programs assisting
small high-technology firms in the State;
and
‘‘(v) the manner in which the appli-
cant will measure the results of the activi-
ties to be conducted.
‘‘(3) PROPOSAL LIMIT.—Not more than one pro-
posal may be submitted for inclusion in the FAST
program under this section to provide services in any
one State in any 1 fiscal year.
‘‘(4) PROCESS.—Proposals and applications for
assistance under this section shall be in such form
and subject to such procedures as the Administrator
shall establish.
‘‘(d) COOPERATION AND COORDINATION.—In carrying
out the FAST program under this section, the Adminis-
trator shall cooperate and coordinate with—
‘‘(1) Federal agencies required by section 9 to
have an SBIR program; and
‘‘(2) entities, organizations, and individuals ac-
tively engaged in enhancing or developing the techno-
logical capabilities of small business concerns,
including—
‘‘(A) State and local development agencies
and entities;
‘‘(B) State committees established under the
Experimental Program to Stimulate Competitive
Research of the National Science Foundation (as
established under section 113 of the National
Science Foundation Authorization Act of 1988
(42 U.S.C. 1862g));
‘‘(C) State science and technology councils;
and
‘‘(D) representatives of technology-based
small business concerns.
‘‘(e) ADMINISTRATIVE REQUIREMENTS.—
‘‘(1) COMPETITIVE BASIS.—Awards and coopera-
tive agreements under this section shall be made or
entered into, as applicable, on a competitive basis.
‘‘(2) MATCHING REQUIREMENTS.—
‘‘(A) IN GENERAL.—The non-Federal share
of the cost of an activity (other than a planning
activity) carried out using an award or under a
cooperative agreement under this section shall
be—
‘‘(i) 50 cents for each Federal dollar,
in the case of a recipient that will serve
small business concerns located in one of the
18 States receiving the fewest SBIR first
phase awards (as described in section
9(e)(4)(A));
‘‘(ii) except as provided in subpara-
graph (B), 1 dollar for each Federal dollar,
in the case of a recipient that will serve
small business concerns located in one of the
16 States receiving the greatest number of
such SBIR first phase awards; and
‘‘(iii) except as provided in subpara-
graph (B), 75 cents for each Federal dollar,
in the case of a recipient that will serve
small business concerns located in a State
that is not described in clause (i) or (ii)
that is receiving such SBIR first phase
awards.
‘‘(B) LOW-INCOME
AREAS.—The non-Fed-
eral share of the cost of the activity carried out
using an award or under a cooperative agree-
ment under this section shall be 50 cents for each
Federal dollar that will be directly allocated by
a recipient described in subparagraph (A) to
serve small business concerns located in a quali-
fied census tract, as that term is defined in sec-
tion 42(d)(5)(C)(ii) of the Internal Revenue Code
of 1986. Federal dollars not so allocated by that
recipient shall be subject to the matching require-
ments of subparagraph (A).
‘‘(C) TYPES OF FUNDING.—The non-Federal
share of the cost of an activity carried out by a
recipient shall be comprised of not less than 50
percent cash and not more than 50 percent of in-
direct costs and in-kind contributions, except
that no such costs or contributions may be de-
rived from funds from any other Federal pro-
gram.
‘‘(D) RANKINGS.—For purposes of subpara-
graph (A), the Administrator shall reevaluate the
ranking of a State once every 2 fiscal years, be-
ginning with fiscal year 2001, based on the most
recent statistics compiled by the Administrator.
‘‘(3) DURATION.—Awards may be made or coop-
erative agreements entered into under this section for
multiple years, not to exceed 5 years in total.
‘‘(f) REPORTS.—
‘‘(1) INITIAL REPORT.—Not later than 120 days
after the date of the enactment of the Small Business
Innovation Research Program Reauthorization Act of
2000, the Administrator shall prepare and submit to
the Committee on Small Business of the Senate and
the Committee on Science and the Committee on
Small Business of the House of Representatives a re-
port, which shall include, with respect to the FAST
program, including Mentoring Networks—
‘‘(A) a description of the structure and pro-
cedures of the program;
‘‘(B) a management plan for the program;
and
‘‘(C) a description of the merit-based review
process to be used in the program.
‘‘(2) ANNUAL
REPORTS.—The Administrator
shall submit an annual report to the Committee on
Small Business of the Senate and the Committee on
Science and the Committee on Small Business of the
House of Representatives regarding—
‘‘(A) the number and amount of awards
provided and cooperative agreements entered into
under the FAST program during the preceding
year;
‘‘(B) a list of recipients under this section,
including their location and the activities being
performed with the awards made or under the
cooperative agreements entered into; and
‘‘(C) the Mentoring Networks and the men-
toring database, as provided for under section
35, including—
‘‘(i) the status of the inclusion of men-
toring information in the database required
by section 9(k); and
‘‘(ii) the status of the implementation
and description of the usage of the Men-
toring Networks.
‘‘(g) REVIEWS BY INSPECTOR GENERAL.—
‘‘(1) IN GENERAL.—The Inspector General of the
Administration shall conduct a review of—
‘‘(A) the extent to which recipients under
the FAST program are measuring the perform-
ance of the activities being conducted and the re-
sults of such measurements; and
‘‘(B) the overall management and effective-
ness of the FAST program.
‘‘(2) REPORT.—During the first quarter of fiscal
year 2004, the Inspector General of the Administra-
tion shall submit a report to the Committee on Small
Business of the Senate and the Committee on Science
and the Committee on Small Business of the House
of Representatives on the review conducted under
paragraph (1).
‘‘(h) PROGRAM LEVELS.—
‘‘(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out the FAST program, including
Mentoring Networks, under this section and section
35, $10,000,000 for each of fiscal years 2001 through
2005.
‘‘(2) 
MENTORING
DATABASE.—Of 
the 
total
amount made available under paragraph (1) for fis-
cal years 2001 through 2005, a reasonable amount,
not to exceed a total of $500,000, may be used by the
Administration to carry out section 35(d).
‘‘(i) TERMINATION.—The authority to carry out the
FAST program under this section shall terminate on Sep-
tember 30, 2005.’’.
(c) COORDINATION OF TECHNOLOGY DEVELOPMENT
PROGRAMS.—Section 9 of the Small Business Act (15
U.S.C. 638) is amended by adding at the end the following:
‘‘(u) COORDINATION OF TECHNOLOGY DEVELOPMENT
PROGRAMS.—
‘‘(1) DEFINITION OF TECHNOLOGY DEVELOPMENT
PROGRAM.—In this subsection, the term ‘technology
development program’ means—
‘‘(A) the Experimental Program to Stimu-
late Competitive Research of the National
Science Foundation, as established under section
113 of the National Science Foundation Author-
ization Act of 1988 (42 U.S.C. 1862g);
‘‘(B) the Defense Experimental Program to
Stimulate Competitive Research of the Depart-
ment of Defense;
‘‘(C) the Experimental Program to Stimu-
late Competitive Research of the Department of
Energy;
‘‘(D) the Experimental Program to Stimu-
late Competitive Research of the Environmental
Protection Agency;
‘‘(E) the Experimental Program to Stimu-
late Competitive Research of the National Aero-
nautics and Space Administration;
‘‘(F) the Institutional Development Award
Program of the National Institutes of Health;
and
‘‘(G) the National Research Initiative Com-
petitive Grants Program of the Department of
Agriculture.
‘‘(2) 
COORDINATION
REQUIREMENTS.—Each
Federal agency that is subject to subsection (f) and
that has established a technology development pro-
gram may, in each fiscal year, review for funding
under that technology development program—
‘‘(A) any proposal to provide outreach and
assistance to one or more small business concerns
interested in participating in the SBIR pro-
gram, including any proposal to make a grant
or loan to a company to pay a portion or all of
the cost of developing an SBIR proposal, from
an entity, organization, or individual located
in—
‘‘(i) a State that is eligible to partici-
pate in that program; or
‘‘(ii) a State described in paragraph
(3); or
‘‘(B) any proposal for the first phase of the
SBIR program, if the proposal, though meri-
torious, is not funded through the SBIR program
for that fiscal year due to funding restraints,
from a small business concern located in—
‘‘(i) a State that is eligible to partici-
pate in a technology development program;
or
‘‘(ii) a State described in paragraph
(3).
‘‘(3) ADDITIONALLY ELIGIBLE STATE.—A State
referred to in subparagraph (A)(ii) or (B)(ii) of para-
graph (2) is a State in which the total value of con-
tracts awarded to small business concerns under all
SBIR programs is less than the total value of con-
tracts awarded to small business concerns in a major-
ity of other States, as determined by the Adminis-
trator in biennial fiscal years, beginning with fiscal
year 2000, based on the most recent statistics com-
piled by the Administrator.’’.
SEC. 112. MENTORING NETWORKS.
The Small Business Act (15 U.S.C. 631 et seq.) is
amended by inserting after section 34, as added by section
111(b)(2) of this Act, the following new section:
‘‘SEC. 35. MENTORING NETWORKS.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) the SBIR and STTR programs create jobs,
increase capacity for technological innovation, and
boost international competitiveness;
‘‘(2) increasing the quantity of applications from
all States to the SBIR and STTR programs would
enhance competition for such awards and the quality
of the completed projects; and
‘‘(3) mentoring is a natural complement to the
FAST program of reaching out to new companies re-
garding the SBIR and STTR programs as an effec-
tive and low-cost way to improve the likelihood that
such companies will succeed in such programs in de-
veloping and commercializing their research.
‘‘(b) AUTHORIZATION FOR MENTORING NETWORKS.—
The recipient of an award or participant in a cooperative
agreement under section 34 may use a reasonable amount
of such assistance for the establishment of a Mentoring Net-
work under this section.
‘‘(c) CRITERIA FOR MENTORING NETWORKS.—A Men-
toring Network established using assistance under section
34 shall—
‘‘(1) provide business advice and counseling to
high technology small business concerns located in the
State or region served by the Mentoring Network and
identified under section 34(c)(1)(E)(ii) as potential
candidates for the SBIR or STTR programs;
‘‘(2) identify volunteer mentors who—
‘‘(A) are persons associated with a small
business concern that has successfully completed
one or more SBIR or STTR funding agreements;
and
‘‘(B) have agreed to guide small business
concerns through all stages of the SBIR or STTR
program process, including providing assistance
relating to—
‘‘(i) proposal writing;
‘‘(ii) marketing;
‘‘(iii) Government accounting;
‘‘(iv) Government audits;
‘‘(v) project facilities and equipment;
‘‘(vi) human resources;
‘‘(vii) third phase partners;
‘‘(viii) commercialization;
‘‘(ix) venture capital networking; and
‘‘(x) other matters relevant to the
SBIR and STTR programs;
‘‘(3) have experience working with small business
concerns participating in the SBIR and STTR pro-
grams;
‘‘(4) contribute information to the national data-
base referred to in subsection (d); and
‘‘(5) agree to reimburse volunteer mentors for
out-of-pocket expenses related to service as a mentor
under this section.
‘‘(d) MENTORING
DATABASE.—The Administrator
shall—
‘‘(1) include in the database required by section
9(k)(1), in cooperation with the SBIR, STTR, and
FAST programs, information on Mentoring Networks
and mentors participating under this section, includ-
ing a description of their areas of expertise;
‘‘(2) work cooperatively with Mentoring Net-
works to maintain and update the database;
‘‘(3) take such action as may be necessary to ag-
gressively promote Mentoring Networks under this sec-
tion; and
‘‘(4) fulfill the requirements of this subsection ei-
ther directly or by contract.’’.
SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.
Section 9 of the Small Business Act (15 U.S.C. 638),
as amended by this Act, is further amended by adding at
the end the following new subsection:
‘‘(v) SIMPLIFIED REPORTING REQUIREMENTS.—The
Administrator shall work with the Federal agencies re-
quired by this section to have an SBIR program to stand-
ardize reporting requirements for the collection of data from
SBIR applicants and awardees, including data for inclu-
sion in the database under subsection (k), taking into con-
sideration the unique needs of each agency, and to the extent
possible, permitting the updating of previously reported in-
formation by electronic means. Such requirements shall be
designed to minimize the burden on small businesses.’’.
SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.
(a) EXTENSION
OF TERMINATION DATE.—Section
501(b)(2) of the Small Business Reauthorization Act of
1997 (15 U.S.C. 638 note; 111 Stat. 2622) is amended by
striking ‘‘2001’’ and inserting ‘‘2005’’.
(b) EXTENSION OF AUTHORIZATION OF APPROPRIA-
TIONS.—Section 9(s)(2) of the Small Business Act (15
U.S.C. 638(s)(2)) is amended by striking ‘‘for fiscal year
1998, 1999, 2000, or 2001’’ and inserting ‘‘for each of the
fiscal years 2000 through 2005,’’.
TITLE II—GENERAL BUSINESS
LOAN PROGRAM
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Small Business General
Business Loan Improvement Act of 2000’’.
SEC. 202. LEVELS OF PARTICIPATION.
Section 7(a)(2)(A) of the Small Business Act (15
U.S.C. 636(a)(2)(A)) is amended—
(1) in paragraph (i) by striking ‘‘$100,000’’ and
inserting ‘‘$150,000’’; and
(2) in paragraph (ii)—
(A) by striking ‘‘80 percent’’ and inserting
‘‘85 percent’’; and
(B) by striking ‘‘$100,000’’ and inserting
‘‘$150,000’’.
SEC. 203. LOAN AMOUNTS.
Section 7(a)(3)(A) of the Small Business Act (15
U.S.C. 636(a)(3)(A)) is amended by striking ‘‘$750,000,’’
and inserting, ‘‘$1,000,000 (or if the gross loan amount
would exceed $2,000,000),’’.
SEC. 204. INTEREST ON DEFAULTED LOANS.
Subparagraph (B) of section 7(a)(4) of the Small
Business Act (15 U.S.C. 636(a)(4)) is amended by adding
at the end the following:
‘‘(iii) APPLICABILITY.—Clauses (i) and
(ii) shall not apply to loans made on or
after October 1, 2000.’’.
SEC. 205. PREPAYMENT OF LOANS.
Section 7(a)(4) of the Small Business Act (15 U.S.C.
636(a)(4)) is further amended—
(1) by striking ‘‘(4) INTEREST
RATES
AND
FEES.—’’ and inserting ‘‘(4) INTEREST RATES AND
PREPAYMENT CHARGES.—’’; and
(2) by adding at the end the following:
‘‘(C) PREPAYMENT CHARGES.—
‘‘(i) IN
GENERAL.—A borrower who
prepays any loan guaranteed under this
subsection shall remit to the Administration
a subsidy recoupment fee calculated in ac-
cordance with clause (ii) if—
‘‘(I) the loan is for a term of not
less than 15 years;
‘‘(II) the prepayment is vol-
untary;
‘‘(III) the amount of prepayment
in any calendar year is more than 25
percent of the outstanding balance of
the loan; and
‘‘(IV) the prepayment is made
within the first 3 years after disburse-
ment of the loan proceeds.
‘‘(ii) SUBSIDY
RECOUPMENT
FEE.—
The subsidy recoupment fee charged under
clause (i) shall be—
‘‘(I) 5 percent of the amount of
prepayment, if the borrower prepays
during the first year after disburse-
ment;
‘‘(II) 3 percent of the amount of
prepayment, if the borrower prepays
during the second year after disburse-
ment; and
‘‘(III) 1 percent of the amount of
prepayment, if the borrower prepays
during the third year after disburse-
ment.’’.
SEC. 206. GUARANTEE FEES.
Section 7(a)(18)(B) of the Small Business Act (15
U.S.C. 636(a)(18)(B)) is amended to read as follows:
‘‘(B) EXCEPTION FOR CERTAIN LOANS.—
‘‘(i) IN
GENERAL.—Notwithstanding
subparagraph (A), if the total deferred par-
ticipation share of a loan guaranteed under
this subsection is less than or equal to
$150,000, the guarantee fee collected under
subparagraph (A) shall be in an amount
equal to 2 percent of the total deferred par-
ticipation share of the loan.
‘‘(ii) RETENTION
OF
FEES.—Lenders
participating in the programs established
under this subsection may retain not more
than 25 percent of the fee collected in ac-
cordance with this subparagraph with re-
spect to any loan not exceeding $150,000 in
gross loan amount.’’.
SEC. 207. LEASE TERMS.
Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is further amended by adding at the end the fol-
lowing:
‘‘(28) LEASING.—In addition to such other lease
arrangements as may be authorized by the Adminis-
tration, a borrower may permanently lease to one or
more tenants not more than 20 percent of any prop-
erty constructed with the proceeds of a loan guaran-
teed under this subsection, if the borrower perma-
nently occupies and uses not less than 60 percent of
the total business space in the property.’’.
TITLE III—CERTIFIED DEVELOP-
MENT COMPANY PROGRAM
SEC. 301. SHORT TITLE.
This title may be cited as the ‘‘Certified Development
Company Program Improvements Act of 2000’’.
SEC. 302. WOMEN-OWNED BUSINESSES.
Section 501(d)(3)(C) of the Small Business Investment
Act (15 U.S.C. 695(d)(3)(C)) is amended by inserting before
the comma ‘‘or women-owned business development’’.
SEC. 303. MAXIMUM DEBENTURE SIZE.
Section 502(2) of the Small Business Investment Act
of 1958 (15 U.S.C. 696(2)) is amended to read as follows:
‘‘(2) Loans made by the Administration under
this section shall be limited to $1,000,000 for each
such identifiable small business concern, except loans
meeting the criteria specified in section 501(d)(3),
which shall be limited to $1,300,000 for each such
identifiable small business concern.’’.
SEC. 304. FEES.
Section 503(f) of the Small Business Investment Act
of 1958 (15 U.S.C. 697(f)) is amended to read as follows:
‘‘(f) EFFECTIVE DATE.—The fees authorized by sub-
sections (b) and (d) shall apply to financings approved by
the Administration on or after October 1, 1996, but shall
not apply to financings approved by the Administration
on or after October 1, 2003.’’.
SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.
Section 217(b) of the Small Business Reauthorization
and Amendments Act of 1994 (relating to section 508 of
the Small Business Investment Act) is repealed.
SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.
Section 508 of the Small Business Investment Act of
1958 (15 U.S.C. 697e) is amended—
(1) in subsection (a), by striking ‘‘On a pilot
program basis, the’’ and inserting ‘‘The’’;
(2) by redesignating subsections (d) though (i) as
subsections (e) though (j), respectively;
(3) in subsection (f) (as redesignated by para-
graph (2)), by striking ‘‘subsection (f)’’ and inserting
‘‘subsection (g)’’;
(4) in subsection (h) (as redesignated by para-
graph (2)), by striking ‘‘subsection (f)’’ and inserting
‘‘subsection (g)’’; and
(5) by inserting after subsection (c) the fol-
lowing:
‘‘(d) SALE OF CERTAIN DEFAULTED LOANS.—
‘‘(1) NOTICE.—If, upon default in repayment,
the Administration acquires a loan guaranteed under
this section and identifies such loan for inclusion in
a bulk asset sale of defaulted or repurchased loans or
other financings, it shall give prior notice thereof to
any certified development company which has a con-
tingent liability under this section. The notice shall be
given to the company as soon as possible after the fi-
nancing is identified, but not less than 90 days before
the date the Administration first makes any records
on such financing available for examination by pro-
spective purchasers prior to its offering in a package
of loans for bulk sale.
‘‘(2) LIMITATIONS.—The Administration shall
not offer any loan described in paragraph (1) as part
of a bulk sale unless it—
‘‘(A) provides prospective purchasers with
the opportunity to examine the Administration’s
records with respect to such loan; and
‘‘(B) provides the notice required by para-
graph (1).’’.
SEC. 307. LOAN LIQUIDATION.
(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) DELEGATION
OF AUTHORITY.—In accordance
with this section, the Administration shall delegate to any
qualified State or local development company (as defined
in section 503(e)) that meets the eligibility requirements of
subsection (b)(1) the authority to foreclose and liquidate,
or to otherwise treat in accordance with this section, de-
faulted loans in its portfolio that are funded with the pro-
ceeds of debentures guaranteed by the Administration under
section 503.
‘‘(b) ELIGIBILITY FOR DELEGATION.—
‘‘(1) REQUIREMENTS.—A qualified State or local
development company shall be eligible for a delegation
of authority under subsection (a) if—
‘‘(A) the company—
‘‘(i) has participated in the loan liq-
uidation pilot program established by the
Small Business Programs Improvement Act
of 1996 (15 U.S.C. 695 note), as in effect on
the day before promulgation of final regula-
tions by the Administration implementing
this section;
‘‘(ii) is participating in the Premier
Certified Lenders Program under section
508; or
‘‘(iii) during the 3 fiscal years imme-
diately prior to seeking such a delegation,
has made an average of not less than 10
loans per year that are funded with the pro-
ceeds of debentures guaranteed under section
503; and
‘‘(B) the company—
‘‘(i) has one or more employees—
‘‘(I) with not less than 2 years of
substantive, decision-making experience
in administering the liquidation and
workout of problem loans secured in a
manner substantially similar to loans
funded with the proceeds of debentures
guaranteed under section 503; and
‘‘(II) who have completed a train-
ing program on loan liquidation devel-
oped by the Administration in con-
junction with qualified State and local
development companies that meet the
requirements of this paragraph; or
‘‘(ii) submits to the Administration
documentation demonstrating that the com-
pany has contracted with a qualified third-
party to perform any liquidation activities
and secures the approval of the contract by
the Administration with respect to the
qualifications of the contractor and the
terms and conditions of liquidation activi-
ties.
‘‘(2) CONFIRMATION.—On request the Adminis-
tration shall examine the qualifications of any com-
pany described in subsection (a) to determine if such
company is eligible for the delegation of authority
under this section. If the Administration determines
that a company is not eligible, the Administration
shall provide the company with the reasons for such
ineligibility.
‘‘(c) SCOPE OF DELEGATED AUTHORITY.—
‘‘(1) IN GENERAL.—Each qualified State or local
development company to which the Administration
delegates authority under section (a) may with re-
spect to any loan described in subsection (a)—
‘‘(A) perform all liquidation and foreclosure
functions, including the purchase in accordance
with this subsection of any other indebtedness se-
cured by the property securing the loan, in a
reasonable and sound manner according to com-
mercially accepted practices, pursuant to a liq-
uidation plan approved in advance by the Ad-
ministration under 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) defend or bring any claim 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 to
a qualified State or local development
company and such remedies will ben-
efit either the Administration or the
qualified State or local development
company; or
‘‘(ii) oversee the conduct of any such
litigation; and
‘‘(C) take other appropriate actions to miti-
gate loan losses in lieu of total liquidation or
foreclosures, including the restructuring of a loan
in accordance with prudent loan servicing prac-
tices and pursuant to a workout plan approved
in advance by the Administration under para-
graph (2)(C).
‘‘(2) ADMINISTRATION APPROVAL.—
‘‘(A) LIQUIDATION PLAN.—
‘‘(i) IN GENERAL.—Before carrying out
functions described in paragraph (1)(A), a
qualified State or local development com-
pany shall submit to the Administration a
proposed liquidation plan.
‘‘(ii) 
ADMINISTRATION
ACTION
ON
PLAN.—
‘‘(I) TIMING.—Not later than 15
business days after a liquidation plan
is received by the Administration
under clause (i), the Administration
shall approve or reject the plan.
‘‘(II) NOTICE OF NO DECISION.—
With respect to any plan that cannot
be approved or denied within the 15-
day period required by subclause (I),
the Administration shall within such
period provide in accordance with sub-
paragraph (E) notice to the company
that submitted the plan.
‘‘(iii) ROUTINE ACTIONS.—In carrying
out 
functions 
described 
in 
paragraph
(1)(A), a qualified State or local develop-
ment company may undertake routine ac-
tions not addressed in a liquidation plan
without obtaining additional approval from
the Administration.
‘‘(B) PURCHASE OF INDEBTEDNESS.—
‘‘(i) IN
GENERAL.—In carrying out
functions described in paragraph (1)(A), a
qualified State or local development com-
pany shall submit to the Administration a
request for written approval before commit-
ting the Administration to the purchase of
any other indebtedness secured by the prop-
erty securing a defaulted loan.
‘‘(ii) ADMINISTRATION ACTION ON RE-
QUEST.—
‘‘(I) TIMING.—Not later than 15
business days after receiving a request
under clause (i), the Administration
shall approve or deny the request.
‘‘(II) NOTICE OF NO DECISION.—
With respect to any request that cannot
be approved or denied within the 15-
day period required by subclause (I),
the Administration shall within such
period provide in accordance with sub-
paragraph (E) notice to the company
that submitted the request.
‘‘(C) WORKOUT PLAN.—
‘‘(i) IN
GENERAL.—In carrying out
functions described in paragraph (1)(C), a
qualified State or local development com-
pany shall submit to the Administration a
proposed workout plan.
‘‘(ii) 
ADMINISTRATION
ACTION
ON
PLAN.—
‘‘(I) TIMING.—Not later than 15
business days after a workout plan is
received by the Administration under
clause (i), the Administration shall ap-
prove or reject the plan.
‘‘(II) NOTICE OF NO DECISION.—
With respect to any workout plan that
cannot be approved or denied within
the 15-day period required by sub-
clause (I), the Administration shall
within such period provide in accord-
ance with subparagraph (E) notice to
the company that submitted the plan.
‘‘(D) COMPROMISE OF INDEBTEDNESS.—In
carrying out functions described in 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 the company secures the written ap-
proval of the Administration.
‘‘(E) CONTENTS OF NOTICE OF NO DECI-
SION.—Any notice provided by the Administra-
tion under subparagraphs (A)(ii)(II), (B)(ii)(II),
or (C)(ii)(II)—
‘‘(i) shall be in writing;
‘‘(ii) shall state the specific reason for
the Administration’s inability to act on a
plan or request;
‘‘(iii) shall include an estimate of the
additional time required by the Administra-
tion to act on the plan or request; and
‘‘(iv) if the Administration cannot act
because insufficient information or docu-
mentation was provided by the company
submitting the plan or request, shall specify
the nature of such additional information
or documentation.
‘‘(3) CONFLICT OF INTEREST.—In carrying out
functions described in paragraph (1), a qualified
State or local development company shall take no ac-
tion that would result in an actual or apparent con-
flict of interest between the company (or any em-
ployee of the company) and any third party lender,
associate of a third party lender, or any other person
participating in a liquidation, foreclosure, or loss
mitigation action.
‘‘(d) SUSPENSION OR REVOCATION OF AUTHORITY.—
The Administration may revoke or suspend a delegation of
authority under this section to any qualified State or local
development company, if the Administration determines
that the company—
‘‘(1) does not meet the requirements of subsection
(b)(1);
‘‘(2) has violated any applicable rule or regula-
tion of the Administration or any other applicable
law; or
‘‘(3) fails to comply with any reporting require-
ment that may be established by the Administration
relating to carrying out of functions described in
paragraph (1).
‘‘(e) REPORT.—
‘‘(1) IN GENERAL.—Based on information pro-
vided by qualified State and local development com-
panies and the Administration, the Administration
shall annually submit to the Committees on Small
Business of the House of Representatives and of the
Senate a report on the results of delegation of author-
ity under this section.
‘‘(2) CONTENTS.—Each report submitted under
paragraph (1) shall include the following informa-
tion:
‘‘(A) With respect to each loan foreclosed or
liquidated by a qualified State or local develop-
ment company under this section, or for which
losses were otherwise mitigated by the company
pursuant to a workout plan under this section—
‘‘(i) the total cost of the 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 of liquidation, foreclosure,
or mitigation of loss;
‘‘(iv) the total dollar losses resulting
from the liquidation, foreclosure, or mitiga-
tion of loss; and
‘‘(v) the total recoveries resulting from
the liquidation, foreclosure, or mitigation of
loss, both as a percentage of the amount
guaranteed and the total cost of the project
financed.
‘‘(B) With respect to each qualified State or
local development company to which authority is
delegated under this section, the totals of each of
the amounts described in clauses (i) through (v)
of subparagraph (A).
‘‘(C) With respect to all loans subject to
foreclosure, liquidation, or mitigation under this
section, the totals of each of the amounts de-
scribed in clauses (i) through (v) of subpara-
graph (A).
‘‘(D) A comparison between—
‘‘(i) the information provided under
subparagraph (C) with respect to 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, or other-
wise treated, by the Administration during
the same period.
‘‘(E) The number of times that the Admin-
istration has failed to approve or reject a liq-
uidation plan in accordance with subparagraph
(A)(i), a workout plan in accordance with sub-
paragraph (C)(i), or to approve or deny a re-
quest for purchase of indebtedness under sub-
paragraph (B)(i), including specific information
regarding the reasons for the Administration’s
failure and any delays that resulted.’’.
(b) REGULATIONS.—
(1) IN GENERAL.—Not later than 150 days after
the date of the enactment of this Act, the Adminis-
trator shall issue such regulations as may be nec-
essary to carry out section 510 of the Small Business
Investment Act of 1958, as added by subsection (a) of
this section.
(2) TERMINATION OF PILOT PROGRAM.—Begin-
ning on the date which the final regulations are
issued under paragraph (1), section 204 of the Small
Business Programs Improvement Act of 1996 (15
U.S.C. 695 note) shall cease to have effect.
TITLE IV—CORRECTIONS TO THE
SMALL 
BUSINESS 
INVEST-
MENT ACT OF 1958
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Small Business Invest-
ment Corrections Act of 2000’’.
SEC. 402. DEFINITIONS.
(a) SMALL BUSINESS CONCERN.—Section 103(5)(A)(i)
of the Small Business Investment Act of 1958 (15 U.S.C.
662(5)(A)(i)) is amended by inserting ‘‘regardless of the al-
location of control during the investment period under any
investment agreement between the business concern and the
entity making the investment’’ before the semicolon at the
end.
(b) LONG TERM.—Section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662) is amended—
(1) in paragraph (15), by striking ‘‘and’’ at the
end;
(2) in paragraph (16), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new para-
graph:
‘‘(17) the term ‘long term’, when used in connec-
tion with equity capital or loan funds invested in any
small business concern or smaller enterprise, means
any period of time not less than 1 year.’’.
SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT
COMPANIES.
Section 302(b) of the Small Business Investment Act
of 1958 (15 U.S.C. 682(b)) is amended—
(1) by striking ‘‘(b) Notwithstanding’’ and in-
serting the following:
‘‘(b) FINANCIAL INSTITUTION INVESTMENTS.—
‘‘(1) CERTAIN BANKS.—Notwithstanding’’; and
(2) by adding at the end the following:
‘‘(2) CERTAIN SAVINGS ASSOCIATIONS.—Notwith-
standing any other provision of law, any Federal sav-
ings association may invest in any one or more small
business investment companies, or in any entity es-
tablished to invest solely in small business investment
companies, except that in no event may the total
amount of such investments by any such Federal sav-
ings association exceed 5 percent of the capital and
surplus of the Federal savings association.’’.
SEC. 404. SUBSIDY FEES.
(a) DEBENTURES.—Section 303(b) of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 683(b)) is amended
by striking ‘‘plus an additional charge of 1 percent per
annum which shall be paid to and retained by the Adminis-
tration’’ and inserting ‘‘plus, for debentures issued after
September 30, 2000, an additional charge, in an amount
established annually by the Administration, of not more
than 1 percent per year as necessary to reduce to zero the
cost (as defined in section 502 of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a)) to the Administration of pur-
chasing and guaranteeing debentures under this Act, which
shall be paid to and retained by the Administration’’.
(b) PARTICIPATING SECURITIES.—Section 303(g)(2) of
the Small Business Investment Act of 1958 (15 U.S.C.
683(g)(2)) is amended by striking ‘‘plus an additional
charge of 1 percent per annum which shall be paid to and
retained by the Administration’’ and inserting ‘‘plus, for
participating securities issued after September 30, 2000, an
additional charge, in an amount established annually by
the Administration, of not more than 1 percent per year
as necessary to reduce to zero the cost (as defined in section
502 of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a)) to the Administration of purchasing and guaran-
teeing participating securities under this Act, which shall
be paid to and retained by the Administration’’.
SEC. 405. DISTRIBUTIONS.
Section 303(g)(8) of the Small Business Investment
Act of 1958 (15 U.S.C. 683(g)(8)) is amended—
(1) by striking ‘‘subchapter s corporation’’ and
inserting ‘‘subchapter S corporation’’;
(2) by striking ‘‘the end of any calendar quarter
based on a quarterly’’ and inserting ‘‘any time dur-
ing any calendar quarter based on an’’; and
(3) by striking ‘‘quarterly distributions for a cal-
endar year,’’ and inserting ‘‘interim distributions for
a calendar year,’’.
SEC. 406. CONFORMING AMENDMENT.
Section 310(c)(4) of the Small Business Investment
Act of 1958 (15 U.S.C. 687b(c)(4)) is amended by striking
‘‘five years’’ and inserting ‘‘1 year’’.
TITLE V—REAUTHORIZATION OF
SMALL BUSINESS PROGRAMS
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Small Business Reau-
thorization Act of 2000’’.
SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PRO-
GRAMS.
Section 20 of the Small Business Act (15 U.S.C. 631
note) is amended by adding at the end the following:
‘‘(g) FISCAL YEAR 2001.—
‘‘(1) PROGRAM LEVELS.—The following program
levels are authorized for fiscal year 2001:
‘‘(A) For the programs authorized by this
Act, the Administration is authorized to make—
‘‘(i) $45,000,000 in technical assist-
ance grants as provided in section 7(m);
and
‘‘(ii) $60,000,000 in direct loans, as
provided in 7(m).
‘‘(B) For the programs authorized by this
Act, the Administration is authorized to make
$19,050,000,000 in deferred participation loans
and other financings. Of such sum, the Adminis-
tration is authorized to make—
‘‘(i) $14,500,000,000 in general busi-
ness loans as provided in section 7(a);
‘‘(ii) $4,000,000,000 in financings as
provided in section 7(a)(13) of this Act and
section 504 of the Small Business Invest-
ment Act of 1958;
‘‘(iii) $500,000,000 in loans as pro-
vided in section 7(a)(21); and
‘‘(iv) $50,000,000 in loans as provided
in section 7(m).
‘‘(C) For the programs authorized by title
III of the Small Business Investment Act of
1958, the Administration is authorized to
make—
‘‘(i) $2,500,000,000 in purchases of
participating securities; and
‘‘(ii) $1,500,000,000 in guarantees of
debentures.
‘‘(D) For the programs authorized by part
B of title IV of the Small Business Investment
Act of 1958, the Administration is authorized to
enter 
into 
guarantees 
not 
to 
exceed
$4,000,000,000 of which not more than 50 per-
cent may be in bonds approved pursuant to sec-
tion 411(a)(3) of that Act.
‘‘(E) The Administration is authorized to
make grants or enter cooperative agreements for
a total amount of $5,000,000 for the Service
Corps of Retired Executives program authorized
by section 8(b)(1).
‘‘(2) ADDITIONAL AUTHORIZATIONS.—
‘‘(A) There are authorized to be appro-
priated to the Administration for fiscal year
2001 such sums as may be necessary to carry out
the provisions of this Act not elsewhere provided
for, including administrative expenses and nec-
essary loan capital for disaster loans pursuant to
section 7(b), and to carry out title IV of the
Small Business Investment Act of 1958, includ-
ing salaries and expenses of the Administration.
‘‘(B) Notwithstanding any other provision
of this paragraph, for fiscal year 2001—
‘‘(i) no funds are authorized to be used
as loan capital for the loan program au-
thorized by section 7(a)(21) except by trans-
fer from another Federal department or
agency to the Administration, unless the
program level authorized for general busi-
ness loans under paragraph (1)(B)(i) is
fully funded; and
‘‘(ii) the Administration may not ap-
prove loans on its own behalf or on behalf
of any other Federal department or agency,
by contract or otherwise, under terms and
conditions other than those specifically au-
thorized under this Act or the Small Busi-
ness Investment Act of 1958, except that it
may approve loans under section 7(a)(21)
of this Act in gross amounts of not more
than $1,250,000.
‘‘(h) FISCAL YEAR 2002.—
‘‘(1) PROGRAM LEVELS.—The following program
levels are authorized for fiscal year 2002:
‘‘(A) For the programs authorized by this
Act, the Administration is authorized to make—
‘‘(i) $60,000,000 in technical assist-
ance grants as provided in section 7(m);
and
‘‘(ii) $80,000,000 in direct loans, as
provided in 7(m).
‘‘(B) For the programs authorized by this
Act, the Administration is authorized to make
$20,050,000,000 in deferred participation loans
and other financings. Of such sum, the Adminis-
tration is authorized to make—
‘‘(i) $15,000,000,000 in general busi-
ness loans as provided in section 7(a);
‘‘(ii) $4,500,000,000 in financings as
provided in section 7(a)(13) of this Act and
section 504 of the Small Business Invest-
ment Act of 1958;
‘‘(iii) $500,000,000 in loans as pro-
vided in section 7(a)(21); and
‘‘(iv) $50,000,000 in loans as provided
in section 7(m).
‘‘(C) For the programs authorized by title
III of the Small Business Investment Act of
1958, the Administration is authorized to
make—
‘‘(i) $3,500,000,000 in purchases of
participating securities; and
‘‘(ii) $2,500,000,000 in guarantees of
debentures.
‘‘(D) For the programs authorized by part
B of title IV of the Small Business Investment
Act of 1958, the Administration is authorized to
enter 
into 
guarantees 
not 
to 
exceed
$5,000,000,000 of which not more than 50 per-
cent may be in bonds approved pursuant to sec-
tion 411(a)(3) of that Act.
‘‘(E) The Administration is authorized to
make grants or enter cooperative agreements for
a total amount of $6,000,000 for the Service
Corps of Retired Executives program authorized
by section 8(b)(1).
‘‘(2) ADDITIONAL AUTHORIZATIONS.—
‘‘(A) There are authorized to be appro-
priated to the Administration for fiscal year
2002 such sums as may be necessary to carry out
the provisions of this Act not elsewhere provided
for, including administrative expenses and nec-
essary loan capital for disaster loans pursuant to
section 7(b), and to carry out title IV of the
Small Business Investment Act of 1958, includ-
ing salaries and expenses of the Administration.
‘‘(B) Notwithstanding any other provision
of this paragraph, for fiscal year 2002—
‘‘(i) no funds are authorized to be used
as loan capital for the loan program au-
thorized by section 7(a)(21) except by trans-
fer from another Federal department or
agency to the Administration, unless the
program level authorized for general busi-
ness loans under paragraph (1)(B)(i) is
fully funded; and
‘‘(ii) the Administration may not ap-
prove loans on its own behalf or on behalf
of any other Federal department or agency,
by contract or otherwise, under terms and
conditions other than those specifically au-
thorized under this Act or the Small Busi-
ness Investment Act of 1958, except that it
may approve loans under section 7(a)(21)
of this Act in gross amounts of not more
than $1,250,000.
‘‘(i) FISCAL YEAR 2003.—
‘‘(1) PROGRAM LEVELS.—The following program
levels are authorized for fiscal year 2003:
‘‘(A) For the programs authorized by this
Act, the Administration is authorized to make—
‘‘(i) $70,000,000 in technical assist-
ance grants as provided in section 7(m);
and
‘‘(ii) $100,000,000 in direct loans, as
provided in 7(m).
‘‘(B) For the programs authorized by this
Act, the Administration is authorized to make
$21,550,000,000 in deferred participation loans
and other financings. Of such sum, the Adminis-
tration is authorized to make—
‘‘(i) $16,000,000,000 in general busi-
ness loans as provided in section 7(a);
‘‘(ii) $5,000,000,000 in financings as
provided in section 7(a)(13) of this Act and
section 504 of the Small Business Invest-
ment Act of 1958;
‘‘(iii) $500,000,000 in loans as pro-
vided in section 7(a)(21); and
‘‘(iv) $50,000,000 in loans as provided
in section 7(m).
‘‘(C) For the programs authorized by title
III of the Small Business Investment Act of
1958, the Administration is authorized to
make—
‘‘(i) $4,000,000,000 in purchases of
participating securities; and
‘‘(ii) $3,000,000,000 in guarantees of
debentures.
‘‘(D) For the programs authorized by part
B of title IV of the Small Business Investment
Act of 1958, the Administration is authorized to
enter 
into 
guarantees 
not 
to 
exceed
$6,000,000,000 of which not more than 50 per-
cent may be in bonds approved pursuant to sec-
tion 411(a)(3) of that Act.
‘‘(E) The Administration is authorized to
make grants or enter into cooperative agreements
for a total amount of $7,000,000 for the Service
Corps of Retired Executives program authorized
by section 8(b)(1).
‘‘(2) ADDITIONAL AUTHORIZATIONS.—
‘‘(A) There are authorized to be appro-
priated to the Administration for fiscal year
2003 such sums as may be necessary to carry out
the provisions of this Act not elsewhere provided
for, including administrative expenses and nec-
essary loan capital for disaster loans pursuant to
section 7(b), and to carry out title IV of the
Small Business Investment Act of 1958, includ-
ing salaries and expenses of the Administration.
‘‘(B) Notwithstanding any other provision
of this paragraph, for fiscal year 2003—
‘‘(i) no funds are authorized to be used
as loan capital for the loan program au-
thorized by section 7(a)(21) except by trans-
fer from another Federal department or
agency to the Administration, unless the
program level authorized for general busi-
ness loans under paragraph (1)(B)(i) is
fully funded; and
‘‘(ii) the Administration may not ap-
prove loans on its own behalf or on behalf
of any other Federal department or agency,
by contract or otherwise, under terms and
conditions other than those specifically au-
thorized under this Act or the Small Busi-
ness Investment Act of 1958, except that it
may approve loans under section 7(a)(21)
of this Act in gross amounts of not more
than $1,250,000.’’.
SEC. 503. ADDITIONAL REAUTHORIZATIONS.
(a) SMALL BUSINESS DEVELOPMENT CENTERS PRO-
GRAM.—Section 21(a)(4)(C)(iii)(III) of the Small Business
Act (15 U.S.C. 648(a)(4)(C)(iii)(III)) is amended by strik-
ing ‘‘$95,000,000’’ and inserting ‘‘$125,000,000’’.
(b) DRUG-FREE WORKPLACE PROGRAM.—Section 27
of the Small Business Act (15 U.S.C. 654) is amended—
(1) in the section heading, by striking ‘‘DRUG-
FREE WORKPLACE DEMONSTRATION
PROGRAM’’ and inserting ‘‘PAUL D. COVER-
DELL DRUG-FREE WORKPLACE PRO-
GRAM’’; and
(2) in subsection (g)(1), by striking ‘‘$10,000,000
for fiscal years 1999 and 2000’’ and inserting
‘‘$5,000,000 for each of fiscal years 2001 through
2003’’.
(c) HUBZONE PROGRAM.—Section 31 of the Small
Business Act (15 U.S.C. 657a) is amended by adding at
the end the following new subsection:
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out the program es-
tablished by this section $10,000,000 for each of fiscal years
2001 through 2003.’’.
(d) WOMEN’S BUSINESS ENTERPRISE DEVELOPMENT
PROGRAMS.—Section 411 of the Women’s Business Owner-
ship Act (Public Law 105–135; 15 U.S.C. 631 note) is
amended by striking ‘‘$600,000, for each of fiscal years
1998 through 2000,’’ and inserting ‘‘$1,000,000 for each of
fiscal years 2001 through 2003,’’.
(e) VERY SMALL BUSINESS CONCERNS PROGRAM.—
Section 304(i) of the Small Business Administration Reau-
thorization and Amendments Act of 1994 (Public Law 103–
403; 15 U.S.C. 644 note) is amended by striking ‘‘Sep-
tember 30, 2000’’ and inserting ‘‘September 30, 2003’’.
(f) SOCIALLY
AND ECONOMICALLY DISADVANTAGED
BUSINESSES PROGRAM.—Section 7102(c) of the Federal
Acquisition Streamlining Act of 1994 (Public Law 103–
355; 15 U.S.C. 644 note) is amended by striking ‘‘Sep-
tember 30, 2000’’ and inserting ‘‘September 30, 2003’’.
TITLE VI—MISCELLANEOUS
PROVISIONS
SEC. 601. LOAN APPLICATION PROCESSING.
(a) STUDY.—The Administrator of the Small Business
Administration shall conduct a study to determine the aver-
age time that the Administration requires to process an ap-
plication for each type of loan or loan guarantee made
under the Small Business Act (15 U.S.C. 631 et seq.).
(b) TRANSMITTAL.—Not later than 1 year after the
date of the enactment of this title, the Administrator shall
transmit to Congress the results of the study conducted
under subsection (a).
SEC. 602. APPLICATION OF OWNERSHIP REQUIREMENTS.
Section 2 of the Small Business Act (15 U.S.C. 631)
is amended by adding at the end the following new sub-
section:
‘‘(k) APPLICATION OF OWNERSHIP REQUIREMENTS.—
Each ownership requirement established under this Act or
the Small Business Investment Act of 1958 (15 U.S.C. 661
et seq.) shall be applied without regard to any possible fu-
ture ownership interest of a spouse arising from the appli-
cation of any State community property law established for
the purpose of determining marital interest.’’.
SEC. 603. ELIGIBILITY FOR HUBZONE PROGRAM.
Section 3(p)(5) of the Small Business Act (15 U.S.C.
632(p)(5)) is amended by adding at the end the following
new subparagraph:
‘‘(E) EXTENSION OF ELIGIBILITY.—If a geo-
graphic area that qualified as a HUBZone
under this subsection ceases to qualify as a result
of a change in official government data or
boundary designations, each small business con-
cern certified as HUBZone small business con-
cern in connection with such geographic area
shall remain certified as such for a period of 1
year after the effective date of the change in
HUBZone status, if the small business concern
continues to meet each of the other qualifications
applicable to a HUBZone small business con-
cern.’’.
SEC. 604. SUBCONTRACTING PREFERENCE FOR VETERANS.
Section 8(d) of the Small Business Act (15 U.S.C.
637(d)) is amended—
(1) in paragraph (1), by inserting ‘‘small busi-
ness concerns owned and controlled by veterans,’’ after
‘‘small business concerns,’’ the first place that term
appears in each of the first and second sentences;
(2) in paragraph (3)—
(A) in subparagraph (A), by inserting
‘‘small business concerns owned and controlled
by service-disabled veterans,’’ after ‘‘small busi-
ness concerns owned and controlled by veterans,’’
in each of the first and second sentences; and
(B) in subparagraph (F), by inserting
‘‘small business concern owned and controlled by
service-disabled veterans,’’ after ‘‘small business
concern owned and controlled by veterans,’’; and
(3) in each of paragraphs (4)(D), (4)(E), (6)(A),
(6)(C), (6)(F), and (10)(B), by inserting ‘‘small busi-
ness concern owned and controlled by service-disabled
veterans,’’ after ‘‘small business concerns owned and
controlled by veterans,’’.
SEC. 605. SMALL BUSINESS DEVELOPMENT CENTER PRO-
GRAM FUNDING.
(a) AUTHORIZATION.—
(1) IN GENERAL.—Section 20(a)(1) of the Small
Business Act (15 U.S.C. 631 note) is amended by
striking ‘‘For fiscal year 1985’’ and all that follows
through ‘‘expended.’’ and inserting the following: ‘‘For
fiscal year 2000 and each fiscal year thereafter, there
are authorized to be appropriated such sums as may
be necessary and appropriate, to remain available
until expended, and to be available solely—
‘‘(A) to carry out the Small Business Develop-
ment Center Program under section 21, but not to ex-
ceed the annual funding level, as specified in section
21(a);
‘‘(B) to pay the expenses of the National Small
Business Development Center Advisory Board, as pro-
vided in section 21(i);
‘‘(C) to pay the expenses of the information shar-
ing system, as provided in section 21(c)(8);
‘‘(D) to pay the expenses of the association re-
ferred to in section 21(a)(3)(A) for conducting the cer-
tification program, as provided in section 21(k)(2);
and
‘‘(E) to pay the expenses of the Administration,
including salaries of examiners, for conducting ex-
aminations as part of the certification program con-
ducted by the association referred to in section
21(a)(3)(A).’’.
(2) TECHNICAL AMENDMENT.—Section 20(a) of
the Small Business Act (15 U.S.C. 631 note) is fur-
ther amended by moving paragraphs (3) and (4), in-
cluding subparagraphs (A) and (B) of paragraph (4),
2 ems to the left.
(b) FUNDING FORMULA.—Section 21(a)(4)(C) of the
Small Business Act (15 U.S.C. 648(a)(4)(C)) is amended
to read as follows:
‘‘(C) FUNDING FORMULA.—
‘‘(i) IN GENERAL.—Subject to clause (iii),
the amount of a formula grant received by a
State under this subparagraph shall be equal to
an amount determined in accordance with the
following formula:
‘‘(I) The annual amount made avail-
able under section 20(a) for the Small Busi-
ness Development Center Program, less any
reductions made for expenses authorized by
clause (v) of this subparagraph, shall be di-
vided on a pro rata basis, based on the per-
centage of the population of each State, as
compared to the population of the United
States.
‘‘(II) If the pro rata amount calculated
under subclause (I) for any State is less
than the minimum funding level under
clause (iii), the Administration shall deter-
mine the aggregate amount necessary to
achieve that minimum funding level for
each such State.
‘‘(III) The aggregate amount calculated
under subclause (II) shall be deducted from
the amount calculated under subclause (I)
for States eligible to receive more than the
minimum funding level. The deductions
shall be made on a pro rata basis, based on
the population of each such State, as com-
pared to the total population of all such
States.
‘‘(IV) The aggregate amount deducted
under subclause (III) shall be added to the
grants of those States that are not eligible
to receive more than the minimum funding
level in order to achieve the minimum fund-
ing level for each such State, except that the
eligible amount of a grant to any State
shall not be reduced to an amount below the
minimum funding level.
‘‘(ii) GRANT DETERMINATION.—The amount
of a grant that a State is eligible to apply for
under this subparagraph shall be the amount de-
termined under clause (i), subject to any modi-
fications required under clause (iii), and shall be
based on the amount available for the fiscal year
in which performance of the grant commences,
but not including amounts distributed in accord-
ance with clause (iv). The amount of a grant re-
ceived by a State under any provision of this
subparagraph shall not exceed the amount of
matching funds from sources other than the Fed-
eral Government, as required under subpara-
graph (A).
‘‘(iii) 
MINIMUM
FUNDING
LEVEL.—The
amount of the minimum funding level for each
State shall be determined for each fiscal year
based on the amount made available for that fis-
cal year to carry out this section, as follows:
‘‘(I) If the amount made available is
not less than $81,500,000 and not more
than $90,000,000, the minimum funding
level shall be $500,000.
‘‘(II) If the amount made available is
less than $81,500,000, the minimum fund-
ing level shall be the remainder of $500,000
minus a percentage of $500,000 equal to the
percentage amount by which the amount
made available is less than $81,500,000.
‘‘(III) If the amount made available is
more than $90,000,000, the minimum fund-
ing level shall be the sum of $500,000 plus
a percentage of $500,000 equal to the per-
centage amount by which the amount made
available exceeds $90,000,000.
‘‘(iv) DISTRIBUTIONS.—Subject to clause
(iii), if any State does not apply for, or use, its
full funding eligibility for a fiscal year, the Ad-
ministration shall distribute the remaining
funds as follows:
‘‘(I) If the grant to any State is less
than the amount received by that State in
fiscal year 2000, the Administration shall
distribute such remaining funds, on a pro
rata basis, based on the percentage of short-
age of each such State, as compared to the
total amount of such remaining funds
available, to the extent necessary in order to
increase the amount of the grant to the
amount received by that State in 2000, or
until such funds are exhausted, whichever
first occurs.
‘‘(II) If any funds remain after the ap-
plication of subclause (I), the remaining
amount may be distributed as supplemental
grants to any State, as the Administration
determines, in its discretion, to be appro-
priate, after consultation with the associa-
tion referred to in subsection (a)(3)(A).
‘‘(v) USE OF AMOUNTS.—
‘‘(I) IN
GENERAL.—Of the amounts
made available in any fiscal year to carry
out this section—
‘‘(aa) not more than $500,000
may be used by the Administration to
pay expenses enumerated in subpara-
graphs (B) through (D) of section
20(a)(1); and
‘‘(bb) not more than $500,000
may be used by the Administration to
pay the examination expenses enumer-
ated in section 20(a)(1)(E).
‘‘(II) LIMITATION.—No funds described
in subclause (I) may be used for examina-
tion expenses under section 20(a)(1)(E) if
the usage would reduce the amount of
grants made available under clause (i)(I) to
less than $85,000,000 (after excluding any
amounts provided in appropriations Acts
for specific institutions or for purposes
other than the general small business devel-
opment center program) or would further
reduce the amount of such grants below such
amount.
‘‘(vi) EXCLUSIONS.—Grants provided to a
State by the Administration or another Federal
agency to carry out subsection (c)(3)(G) or
(a)(6) or supplemental grants set forth in clause
(iv)(II) of this subparagraph, shall not be in-
cluded in the calculation of maximum funding
for a State under clause (ii) of this subpara-
graph.
‘‘(vii) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out this subparagraph $125,000,000 for
each of fiscal years 2001, 2002, and 2003.
‘‘(viii) STATE DEFINED.—In this subpara-
graph, the term ‘State’ means each of the several
States, the District of Columbia, the Common-
wealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Commonwealth of the
Northern Mariana Islands, and any other com-
monwealth, territory, or possession of the United
States.’’.
SEC. 606. SURETY BONDS.
(a) CONTRACT AMOUNTS.—Section 411 of the Small
Business Investment Act of 1958 (15 U.S.C. 694b) is
amended—
(1) 
in 
subsection 
(a)(1), 
by 
striking
‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’; and
(2) in subsection (e)(2), by striking ‘‘$1,250,000’’
and inserting ‘‘$2,000,000’’.
(b) EXTENSION
OF CERTAIN AUTHORITY.—Section
207 of the Small Business Administration Reauthorization
and Amendment Act of 1988 (15 U.S.C. 694b note) is
amended by striking ‘‘2000’’ and inserting ‘‘2003’’.
Attest:
Clerk.