I
106TH CONGRESS
2D SESSION
H. R. 5545
To provide for reauthorization of small business loan and other programs,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 25, 2000
Mr. TALENT (for himself and Ms. VELA´ZQUEZ) introduced the following bill;
which was referred to the Committee on Small Business
A BILL
To provide for reauthorization of small business loan and
other programs, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Small Business Reauthorization Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—SMALL BUSINESS 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—BUSINESS LOAN PROGRAMS
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.
Sec. 208. Appraisals for loans secured by real property.
Sec. 209. Sale of guaranteed loans made for export purposes.
Sec. 210. Microloan program.
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.
Sec. 504. Cosponsorship.
TITLE VI—HUBZONE PROGRAM
Subtitle A—HUBZones in Native America
Sec. 601. Short title.
Sec. 602. HUBZone small business concern.
Sec. 603. Qualified HUBZone small business concern.
Sec. 604. Other definitions.
Subtitle B—Other HUBZone Provisions
Sec. 611. Definitions.
Sec. 612. Eligible contracts.
Sec. 613. HUBZone redesignated areas.
Sec. 614. Community development.
Sec. 615. Reference corrections.
TITLE VII—NATIONAL WOMEN’S BUSINESS COUNCIL
REAUTHORIZATION
Sec. 701. Short title.
Sec. 702. Membership of the Council.
Sec. 703. Repeal of procurement project.
Sec. 704. Studies and other research.
Sec. 705. Authorization of appropriations.
TITLE VIII—MISCELLANEOUS PROVISIONS
Sec. 801. Loan application processing.
Sec. 802. Application of ownership requirements.
Sec. 803. Subcontracting preference for veterans.
Sec. 804. Small Business Development Center Program funding.
Sec. 805. Surety bonds.
Sec. 806. Size standards.
Sec. 807. Native Hawaiian organizations under section 8(a).
Sec. 808. National Veterans Business Development Corporation correction.
Sec. 809. Private sector resources for SCORE.
Sec. 810. Contract data collection.
Sec. 811. Procurement program for women-owned small business concerns.
TITLE IX—COMMUNITY RENEWAL AND NEW MARKETS
INITIATIVES
Sec. 901. New markets venture capital program.
Sec. 902. BusinessLINC grants and cooperative agreements.
TITLE I—SMALL BUSINESS INNO-
VATION RESEARCH PROGRAM
SECTION 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 title referred to as
the ‘‘SBIR program’’) is highly successful in involv-
ing small businesses in federally funded research
and development;
(2) the SBIR program made the cost-effective
and unique research and development capabilities
possessed by the small businesses of the Nation
available 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 ex-
cellence 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 in-
serting ‘‘, and to the Committee on Science and the Com-
mittee on Small Business of the House of Representa-
tives,’’.
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:
‘‘(9) include, as part of its annual performance
plan as required by subsections (a) and (b) of sec-
tion 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 Busi-
ness 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:
‘‘(10) collect, and maintain in a common format
in accordance with subsection (v), such information
from awardees as is necessary to assess the SBIR
program, including information necessary to main-
tain 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
before the period at the end ‘‘, including the data on out-
put 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 enactment of the Small Busi-
ness Innovation Research Program Reauthorization
Act of 2000, the Administrator shall develop, main-
tain, and make available to the public a searchable,
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
second phase SBIR award received by that
small business concern, including—
‘‘(i) an abstract of the project funded
by the award, excluding any proprietary in-
formation 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 commer-
cial 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 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
program pursuant to subsection (f)(1), shall develop
and maintain a database to be used solely for SBIR
program 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 result-
ing 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 devel-
opment 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,
considers 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 pro-
gram evaluation; 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 per-
sons who are subject to a use and nondisclosure
agreement with the Federal Government cov-
ering the use of the database.
‘‘(3) UPDATING
INFORMATION
FOR
DATA-
BASE.—
‘‘(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 up-
date such information annually thereafter
for a period of 5 years.
‘‘(4) PROTECTION OF INFORMATION.—Informa-
tion provided under paragraph (2) shall be consid-
ered privileged and confidential and not subject to
disclosure pursuant to section 552 of title 5, United
States Code.
‘‘(5) RULE
OF
CONSTRUCTION.—Inclusion of
information in the database under this subsection
shall not be considered to be publication for pur-
poses 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 enactment of this Act,
cooperatively enter into an agreement with the National
Academy 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
conducted 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 fis-
cal year 2000 of Federal research and develop-
ment funds to small businesses with such allo-
cation for fiscal year 1983, and an analysis of
the factors that have contributed to such alloca-
tion; 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
process 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 concern;
(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
guidelines 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 con-
cerns of small business are appropriately considered
under this subsection, the National Research Council
shall consult with and consider the views of the Of-
fice of Technology and the Office of Advocacy of the
Small Business Administration and other interested
parties, including entities, organizations, and indi-
viduals actively engaged in enhancing or developing
the technological capabilities of small business con-
cerns.
(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
Representatives, and to the Committee on Small Business
of the Senate—
(1) not later than 3 years after the date of en-
actment of this Act, a report including the results of
the study conducted under subsection (a)(1) and rec-
ommendations made under subsection (a)(2); and
(2) not later than 6 years after that date of en-
actment, 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 insert-
ing the following:
‘‘(i) ANNUAL REPORTING.—
‘‘(1) IN GENERAL.—Each Federal’’; and
(2) by adding at the end the following:
‘‘(2) CALCULATION
OF
EXTRAMURAL
BUDG-
ET.—
‘‘(A) METHODOLOGY.—Not later than 4
months after the date of enactment of each ap-
propriations Act for a Federal agency required
by this section to have an SBIR program, the
Federal agency shall submit to the Adminis-
trator a report, which shall include a descrip-
tion of the methodology used for calculating the
amount of the extramural budget of that Fed-
eral 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
required 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 enactment of the
Small Business Innovation Research Program Reau-
thorization Act of 2000, the Administrator shall
modify 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 appli-
cation for a second phase award that is moving
toward commercialization;
‘‘(C) to require agencies to report to the
Administration, not less frequently than annu-
ally, all instances in which an agency pursued
research, 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
business 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
funding agreement under which the re-
search, development, or production was ob-
tained; and
‘‘(D) to implement subsection (v), includ-
ing establishing standardized procedures for the
provision 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, includ-
ing participation by small business concerns in the
SBIR program, are at a competitive disadvantage in
establishing a business climate that is conducive to
technology 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 PARTNER-
SHIP 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:
‘‘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
providing 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
Partnership Program established under this section.
‘‘(4) MENTOR.—The term ‘mentor’ means an
individual 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
Commonwealth 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 Fed-
eral and State Technology Partnership Program, the pur-
pose of which shall be to strengthen the technological com-
petitiveness 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 Adminis-
trator and the SBIR program managers at the Na-
tional Science Foundation and the Department of
Defense shall jointly review proposals submitted by
applicants and may make awards or enter into coop-
erative agreements under this section based on the
factors for consideration set forth in paragraph (2),
in order to enhance or develop in a State—
‘‘(A) technology research and development
by small business concerns;
‘‘(B) technology transfer from university
research to technology-based small business
concerns;
‘‘(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 com-
panies 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 pro-
gram participants, program managers of
participating SBIR agencies, the Adminis-
tration, or other entities that are knowl-
edgeable about the SBIR and STTR pro-
grams as good candidates for the SBIR
and STTR programs, and that would ben-
efit 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
program managers referred to in paragraph (1)—
‘‘(A) may only consider proposals by appli-
cants that intend to use a portion of the Fed-
eral assistance provided under this section to
provide outreach, financial support, or technical
assistance to technology-based small business
concerns participating in or interested in par-
ticipating in the SBIR program; and
‘‘(B) shall consider, at a minimum—
‘‘(i) whether the applicant has dem-
onstrated that the assistance to be pro-
vided would address unmet needs of small
business concerns in the community, and
whether 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 received 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 assist-
ing 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 1 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 car-
rying out the FAST program under this section, the Ad-
ministrator 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 tech-
nological capabilities of small business concerns,
including—
‘‘(A) State and local development agencies
and entities;
‘‘(B) State committees established under
the Experimental Program to Stimulate Com-
petitive Research of the National Science Foun-
dation (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 cooper-
ative 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 sec-
tion 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 num-
ber of such SBIR first phase awards; and
‘‘(iii) except as provided in subpara-
graph (B), 75 cents for each Federal dol-
lar, 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 allo-
cated by a recipient described in subparagraph
(A) to serve small business concerns located in
a qualified census tract, as that term is defined
in section 42(d)(5)(C)(ii) of the Internal Rev-
enue Code of 1986. Federal dollars not so allo-
cated by that recipient shall be subject to the
matching requirements of subparagraph (A).
‘‘(C) TYPES OF FUNDING.—The non-Fed-
eral 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 indirect costs and in-kind contribu-
tions, except that no such costs or contributions
may be derived from funds from any other Fed-
eral program.
‘‘(D) RANKINGS.—For purposes of sub-
paragraph (A), the Administrator shall reevalu-
ate the ranking of a State once every 2 fiscal
years, beginning with fiscal year 2001, based on
the most recent statistics compiled by the Ad-
ministrator.
‘‘(3) DURATION.—Awards may be made or co-
operative 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 enactment of the Small Busi-
ness 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 Com-
mittee on Small Business of the House of Rep-
resentatives a report, which shall include, with re-
spect to the FAST program, including Mentoring
Networks—
‘‘(A) a description of the structure and
procedures of the program;
‘‘(B) a management plan for the program;
and
‘‘(C) a description of the merit-based re-
view 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 pre-
ceding 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
mentoring database, as provided for under sec-
tion 35, including—
‘‘(i) the status of the inclusion of
mentoring information in the database re-
quired 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
results of such measurements; and
‘‘(B) the overall management and effective-
ness of the FAST program.
‘‘(2) REPORT.—During the first quarter of fis-
cal year 2004, the Inspector General of the Adminis-
tration 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
appropriated to carry out the FAST program, in-
cluding 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 fol-
lowing:
‘‘(u) COORDINATION
OF TECHNOLOGY DEVELOP-
MENT PROGRAMS.—
‘‘(1) DEFINITION OF TECHNOLOGY DEVELOP-
MENT PROGRAM.—In this subsection, the term ‘tech-
nology development program’ means—
‘‘(A) the Experimental Program to Stimu-
late Competitive Research of the National
Science Foundation, as established under sec-
tion 113 of the National Science Foundation
Authorization Act of 1988 (42 U.S.C. 1862g);
‘‘(B) the Defense Experimental Program
to Stimulate Competitive Research of the De-
partment 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
Competitive 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 1 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 mer-
itorious, is not funded through the SBIR pro-
gram for that fiscal year due to funding re-
straints, 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
paragraph (2) is a State in which the total value of
contracts awarded to small business concerns under
all SBIR programs is less than the total value of
contracts awarded to small business concerns in a
majority of other States, as determined by the Ad-
ministrator in biennial fiscal years, beginning with
fiscal year 2000, based on the most recent statistics
compiled 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:
‘‘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
regarding the SBIR and STTR programs as an ef-
fective and low-cost way to improve the likelihood
that such companies will succeed in such programs
in developing and commercializing their research.
‘‘(b) 
AUTHORIZATION
FOR
MENTORING
NET-
WORKS.—The recipient of an award or participant in a
cooperative agreement under section 34 may use a reason-
able amount of such assistance for the establishment of
a Mentoring Network under this section.
‘‘(c) CRITERIA
FOR MENTORING NETWORKS.—A
Mentoring 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 Net-
work and identified under section 34(c)(1)(E)(ii) as
potential candidates for the SBIR or STTR pro-
grams;
‘‘(2) identify volunteer mentors who—
‘‘(A) are persons associated with a small
business concern that has successfully com-
pleted 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 as-
sistance 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 busi-
ness concerns participating in the SBIR and STTR
programs;
‘‘(4) contribute information to the national
database 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 Net-
works and mentors participating under this section,
including 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
aggressively promote Mentoring Networks under this
section; and
‘‘(4) fulfill the requirements of this subsection
either 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:
‘‘(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
inclusion in the database under subsection (k), taking into
consideration the unique needs of each agency, and to the
extent possible, permitting the updating of previously re-
ported information by electronic means. Such require-
ments 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—BUSINESS LOAN
PROGRAMS
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Small 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.
Section 7(a)(4)(B) of the Small Business Act (15
U.S.C. 636(a)(4)(B)) 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 Administra-
tion a subsidy recoupment fee calculated in
accordance 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) of the Small Business Act (15
U.S.C. 636(a)(18)) is amended to read as follows:
‘‘(18) GUARANTEE FEES.—
‘‘(A) IN GENERAL.—With respect to each
loan guaranteed under this subsection (other
than a loan that is repayable in 1 year or less),
the Administration shall collect a guarantee fee,
which shall be payable by the participating
lender, and may be charged to the borrower, as
follows:
‘‘(i) A guarantee fee equal to 2 per-
cent of the deferred participation share of
a total loan amount that is not more than
$150,000.
‘‘(ii) A guarantee fee equal to 3 per-
cent of the deferred participation share of
a total loan amount that is more than
$150,000, but not more than $700,000.
‘‘(iii) A guarantee fee equal to 3.5
percent of the deferred participation share
of a total loan amount that is more than
$700,000.
‘‘(B) RETENTION
OF
CERTAIN
FEES.—
Lenders participating in the programs estab-
lished under this subsection may retain not
more than 25 percent of a fee collected under
subparagraph (A)(i).’’.
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 Ad-
ministration, a borrower may permanently lease to
one or more tenants not more than 20 percent of
any property constructed with the proceeds of a loan
guaranteed under this subsection, if the borrower
permanently occupies and uses not less than 60 per-
cent of the total business space in the property.’’.
SEC. 208. APPRAISALS FOR LOANS SECURED BY REAL
PROPERTY.
(a) SMALL BUSINESS ACT.—Section 7(a) of the
Small Business Act (15 U.S.C. 636(a)) is amended by
adding at the end the following:
‘‘(29) REAL
ESTATE
APPRAISALS.—With re-
spect to a loan under this subsection that is secured
by commercial real property, an appraisal of such
property by a State licensed or certified appraiser—
‘‘(A) shall be required by the Administra-
tion in connection with any such loan for more
than $250,000; or
‘‘(B) may be required by the Administra-
tion or the lender in connection with any such
loan for $250,000 or less, if such appraisal is
necessary for appropriate evaluation of credit-
worthiness.’’.
(b) SMALL BUSINESS INVESTMENT ACT OF 1958.—
Section 502(3)(E) of the Small Business Investment Act
of 1958 (15 U.S.C. 696(3)(E)) is amended—
(1) by striking ‘‘The collateral’’ and inserting
the following:
‘‘(i) IN
GENERAL.—The collateral’’;
and
(2) by adding at the end the following:
‘‘(ii) APPRAISALS.—With respect to
commercial real property provided by the
small business concern as collateral, an ap-
praisal of the property by a State licensed
or certified appraiser—
‘‘(I) shall be required by the Ad-
ministration before disbursement of
the loan if the estimated value of that
property is more than $250,000; or
‘‘(II) may be required by the Ad-
ministration or the lender before dis-
bursement of the loan if the estimated
value of that property is $250,000 or
less, and such appraisal is necessary
for appropriate evaluation of credit-
worthiness.’’.
SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EX-
PORT PURPOSES.
Section 5(f)(1)(C) of the Small Business Act (15
U.S.C. 634(f)(1)(C)) is amended to read as follows:
‘‘(C) each loan, except each loan made under
section 7(a)(14), shall have been fully disbursed to
the borrower prior to any sale.’’.
SEC. 210. MICROLOAN PROGRAM.
(a) IN GENERAL.—Section 7(m) of the Small Busi-
ness Act (15 U.S.C. 636(m)) is amended—
(1) in paragraphs (1)(B)(iii) and (3)(E), by
striking ‘‘$25,000’’ each place it appears and insert-
ing ‘‘$35,000’’;
(2) in paragraphs (1)(A)(iii)(I), (3)(A)(ii), and
(4)(C)(i)(II), by striking ‘‘$7,500’’ each place it ap-
pears and inserting ‘‘$10,000’’;
(3) in paragraph (3)(E), by striking ‘‘$15,000’’
and inserting ‘‘$20,000’’;
(4) in paragraph (5)(A)—
(A) by striking ‘‘25 grants’’ and inserting
‘‘55 grants’’; and
(B) by striking ‘‘$125,000’’ and inserting
‘‘$200,000’’;
(5) in paragraph (6)(B), by striking ‘‘$10,000’’
and inserting ‘‘$15,000’’; and
(6) in paragraph (7), by striking subparagraph
(A) and inserting the following:
‘‘( A) NUMBER OF PARTICIPANTS.—Under
the program authorized by this subsection, the
Administration may fund, on a competitive
basis, not more than 300 intermediaries.’’.
(b) 
CONFORMING
AMENDMENTS.—Section
7(m)(11)(B) of the Small Business Act (15 U.S.C.
636(m)(11)(B)) is amended by striking ‘‘$25,000’’ and in-
serting ‘‘$35,000’’.
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 Invest-
ment Act of 1958 (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 Administration
Reauthorization and Amendments Act of 1994 (Public
Law 103–403, 15 U.S.C. 697 note) (relating to section
508 of the Small Business Investment Act of 1958) is re-
pealed.
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) through (i)
as subsections (e) through (j), respectively;
(3) in subsection (f) (as redesignated by para-
graph (2)), by striking ‘‘subsection (f)’’ and insert-
ing ‘‘subsection (g)’’;
(4) in subsection (h) (as redesignated by para-
graph (2)), by striking ‘‘subsection (f)’’ and insert-
ing ‘‘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
contingent liability under this section. The notice
shall be given to the company as soon as possible
after the financing is identified, but not less than 90
days before the date the Administration first makes
any records on such financing available for examina-
tion by prospective 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 fol-
lowing:
‘‘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 liq-
uidate, or to otherwise treat in accordance with this sec-
tion, defaulted loans in its portfolio that are funded with
the proceeds of debentures guaranteed by the Administra-
tion under section 503.
‘‘(b) ELIGIBILITY FOR DELEGATION.—
‘‘(1) REQUIREMENTS.—A qualified State or
local development company shall be eligible for a del-
egation 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 regulations by the Administration im-
plementing 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
proceeds 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 experi-
ence in administering the liquidation
and workout of problem loans secured
in a manner substantially similar to
loans funded with the proceeds of de-
bentures 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
company has contracted with a qualified
third-party to perform any liquidation ac-
tivities and secures the approval of the
contract by the Administration with re-
spect to the qualifications of the contractor
and the terms and conditions of liquidation
activities.
‘‘(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 Administra-
tion delegates authority under section (a) may with
respect to any loan described in subsection (a)—
‘‘(A) perform all liquidation and fore-
closure functions, including the purchase in ac-
cordance with this subsection of any other in-
debtedness secured by the property securing the
loan, in a reasonable and sound manner accord-
ing to commercially accepted practices, pursu-
ant to a liquidation plan approved in advance
by the Administration under paragraph (2)(A);
‘‘(B) litigate any matter relating to the
performance of the functions described in sub-
paragraph (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 pro-
gram 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
mitigate loan losses in lieu of total liquidation
or foreclosures, including the restructuring of a
loan in accordance with prudent loan servicing
practices and pursuant to a workout plan ap-
proved in advance by the Administration under
paragraph (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 develop-
ment company shall submit to the Admin-
istration 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 com-
mitting the Administration to the purchase
of any other indebtedness secured by the
property 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 can-
not be approved or denied within the
15-day period required by subclause
(I), the Administration shall within
such period provide in accordance
with subparagraph (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
approve 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 para-
graph (1)(A), a qualified State or local develop-
ment 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, re-
lease any obligor or other party contin-
gently liable, if the company secures the
written approval of the Administration.
‘‘(E) CONTENTS OF NOTICE OF NO DECI-
SION.—Any notice provided by the Administra-
tion under subparagraph (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 Adminis-
tration 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 speci-
fy the nature of such additional informa-
tion 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 AUTHOR-
ITY.—The Administration may revoke or suspend a dele-
gation 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 sub-
section (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 au-
thority 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 devel-
opment 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 mitiga-
tion 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 author-
ity 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 re-
spect to loans foreclosed and liquidated, or
otherwise 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 enactment of this Act, the Adminis-
trator shall issue such regulations as may be nec-
essary to carry out section 510 of the Small Busi-
ness Investment Act of 1958, as added by subsection
(a) of this section.
(2) TERMINATION OF PILOT PROGRAM.—Begin-
ning on the date on which 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 
IN-
VESTMENT 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
before the semicolon at the end the following: ‘‘regardless
of the allocation of control during the investment period
under any investment agreement between the business
concern and the entity making the investment’’.
(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:
‘‘(17) the term ‘long term’, when used in con-
nection 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.—Not-
withstanding any other provision of law, any Federal
savings association may invest in any 1 or more
small business investment companies, or in any enti-
ty established to invest solely in small business in-
vestment companies, except that in no event may the
total amount of such investments by any such Fed-
eral savings association exceed 5 percent of the cap-
ital and surplus of the Federal savings association.’’.
SEC. 404. SUBSIDY FEES.
(a) DEBENTURES.—Section 303(b) of the Small
Business Investment Act of 1958 (15 U.S.C. 683(b)) is
amended by striking ‘‘plus an additional charge of 1 per-
cent per annum which shall be paid to and retained by
the Administration’’ and inserting ‘‘plus, for debentures
obligated 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 Ad-
ministration of purchasing 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 obligated after September 30,
2000, an additional charge, in an amount established an-
nually 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
guaranteeing 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
calendar 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 strik-
ing ‘‘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 Pro-
grams Reauthorization 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 pro-
gram 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 Admin-
istration 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 In-
vestment 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 pro-
vided 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 Serv-
ice Corps of Retired Executives program au-
thorized 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 pro-
vided for, including administrative expenses and
necessary loan capital for disaster loans pursu-
ant to section 7(b), and to carry out title IV of
the Small Business Investment Act of 1958, in-
cluding salaries and expenses of the Adminis-
tration.
‘‘(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
authorized by section 7(a)(21) except by
transfer 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 agen-
cy, by contract or otherwise, under terms
and conditions other than those specifically
authorized under this Act or the Small
Business 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 pro-
gram 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 Admin-
istration 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 In-
vestment 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 pro-
vided 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 Serv-
ice Corps of Retired Executives program au-
thorized 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 pro-
vided for, including administrative expenses and
necessary loan capital for disaster loans pursu-
ant to section 7(b), and to carry out title IV of
the Small Business Investment Act of 1958, in-
cluding salaries and expenses of the Adminis-
tration.
‘‘(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
authorized by section 7(a)(21) except by
transfer 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 agen-
cy, by contract or otherwise, under terms
and conditions other than those specifically
authorized under this Act or the Small
Business 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 pro-
gram 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 Admin-
istration 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 In-
vestment 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 pro-
vided 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 agree-
ments 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 pro-
vided for, including administrative expenses and
necessary loan capital for disaster loans pursu-
ant to section 7(b), and to carry out title IV of
the Small Business Investment Act of 1958, in-
cluding salaries and expenses of the Adminis-
tration.
‘‘(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
authorized by section 7(a)(21) except by
transfer 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 agen-
cy, by contract or otherwise, under terms
and conditions other than those specifically
authorized under this Act or the Small
Business 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) 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
PRO-
GRAM’’ and inserting ‘‘PAUL
D. COVERDELL
DRUG-FREE WORKPLACE PROGRAM’’; 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’’.
(b) HUBZONE PROGRAM.—Section 31 of the Small
Business Act (15 U.S.C. 657a) is amended by adding at
the end the following:
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out the program
established by this section $10,000,000 for each of fiscal
years 2001 through 2003.’’.
(c) VERY SMALL BUSINESS CONCERNS PROGRAM.—
Section 304(i) of the Small Business Administration Re-
authorization and Amendments Act of 1994 (Public Law
103–403; 15 U.S.C. 644 note) is amended by striking
‘‘September 30, 2000’’ and inserting ‘‘September 30,
2003’’.
(d) 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’’.
(e) SBDC SERVICES.—Section 21(c)(3)(T) of the
Small Business Act (15 U.S.C. 648(c)(3)(T)) is amended
by striking ‘‘2000’’ and inserting ‘‘2003’’.
SEC. 504. COSPONSORSHIP.
(a) IN GENERAL.—Section 8(b)(1)(A) of the Small
Business Act (15 U.S.C. 637(b)(1)(A)) is amended to read
as follows:
‘‘(1)(A) to provide—
‘‘(i) technical, managerial, and informa-
tional aids to small business concerns—
‘‘(I) by advising and counseling on
matters in connection with Government
procurement and policies, principles, and
practices of good management;
‘‘(II) by cooperating and advising
with—
‘‘(aa) voluntary business, profes-
sional, educational, and other non-
profit organizations, associations, and
institutions (except that the Adminis-
tration shall take such actions as it
determines necessary to ensure that
such cooperation does not constitute
or imply an endorsement by the Ad-
ministration of the organization or its
products or services, and shall ensure
that it receives appropriate recogni-
tion in all printed materials); and
‘‘(bb) other Federal and State
agencies;
‘‘(III) by maintaining a clearinghouse
for information on managing, financing,
and operating small business enterprises;
and
‘‘(IV) by disseminating such informa-
tion, including through recognition events,
and by other activities that the Adminis-
tration determines to be appropriate; and
‘‘(ii) through cooperation with a profit-
making concern (referred to in this paragraph
as a ‘cosponsor’), training, information, and
education to small business concerns, except
that the Administration shall—
‘‘(I) take such actions as it deter-
mines to be appropriate to ensure that—
‘‘(aa) the Administration receives
appropriate recognition and publicity;
‘‘(bb) the cooperation does not
constitute or imply an endorsement by
the Administration of any product or
service of the cosponsor;
‘‘(cc) unnecessary promotion of
the products or services of the cospon-
sor is avoided; and
‘‘(dd) utilization of any 1 cospon-
sor in a marketing area is minimized;
and
‘‘(II) develop an agreement, executed
on behalf of the Administration by an em-
ployee of the Administration in Wash-
ington, the District of Columbia, that pro-
vides, at a minimum, that—
‘‘(aa) any printed material to an-
nounce the cosponsorship or to be dis-
tributed at the cosponsored activity,
shall be approved in advance by the
Administration;
‘‘(bb) the terms and conditions of
the cooperation shall be specified;
‘‘(cc) only minimal charges may
be imposed on any small business con-
cern to cover the direct costs of pro-
viding the assistance;
‘‘(dd) the Administration may
provide to the cosponsorship mailing
labels, but not lists of names and ad-
dresses of small business concerns
compiled by the Administration;
‘‘(ee) all printed materials con-
taining the names of both the Admin-
istration and the cosponsor shall in-
clude a prominent disclaimer that the
cooperation does not constitute or
imply an endorsement by the Adminis-
tration of any product or service of
the cosponsor; and
‘‘(ff) the Administration shall en-
sure that it receives appropriate rec-
ognition in all cosponsorship printed
materials.’’.
(b) EXTENSION OF COSPONSORSHIP AUTHORITY.—
Section 401(a)(2) of the Small Business Administration
Reauthorization and Amendments Act of 1994 (15 U.S.C.
637 note) is amended by striking ‘‘September 30, 2000’’
and inserting ‘‘September 30, 2003’’.
TITLE VI—HUBZONE PROGRAM
Subtitle A—HUBZones in Native
America
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ‘‘HUBZones in Na-
tive America Act of 2000’’.
SEC. 602. HUBZONE SMALL BUSINESS CONCERN.
Section 3(p)(3) of the Small Business Act (15 U.S.C.
632(p)(3)) is amended to read as follows:
‘‘(3) HUBZONE SMALL BUSINESS CONCERN.—
The term ‘HUBZone small business concern’
means—
‘‘(A) a small business concern that is
owned and controlled by 1 or more persons,
each of whom is a United States citizen;
‘‘(B) a small business concern that is—
‘‘(i) an Alaska Native Corporation
owned and controlled by Natives (as deter-
mined pursuant to section 29(e)(1) of the
Alaska Native Claims Settlement Act (43
U.S.C. 1626(e)(1))); or
‘‘(ii) a direct or indirect subsidiary
corporation, joint venture, or partnership
of an Alaska Native Corporation qualifying
pursuant to section 29(e)(1) of the Alaska
Native Claims Settlement Act (43 U.S.C.
1626(e)(1)), if that subsidiary, joint ven-
ture, or partnership is owned and con-
trolled by Natives (as determined pursuant
to section 29(e)(2)) of the Alaska Native
Claims 
Settlement 
Act 
(43 
U.S.C.
1626(e)(2))); or
‘‘(C) a small business concern—
‘‘(i) that is wholly owned by 1 or more
Indian tribal governments, or by a corpora-
tion that is wholly owned by 1 or more In-
dian tribal governments; or
‘‘(ii) that is owned in part by 1 or
more Indian tribal governments, or by a
corporation that is wholly owned by 1 or
more Indian tribal governments, if all
other owners are either United States citi-
zens or small business concerns.’’.
SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CON-
CERN.
(a) IN GENERAL.—Section 3(p)(5)(A)(i) of the Small
Business Act (15 U.S.C. 632(p)(5)(A)(i)) is amended by
striking subclauses (I) and (II) and inserting the fol-
lowing:
‘‘(I) it is a HUBZone small busi-
ness concern—
‘‘(aa) pursuant to subpara-
graph (A) or (B) of paragraph
(3), and that its principal office
is located in a HUBZone and not
fewer than 35 percent of its em-
ployees reside in a HUBZone; or
‘‘(bb) pursuant to paragraph
(3)(C), and not fewer than 35
percent of its employees engaged
in performing a contract awarded
to the small business concern on
the basis of a preference provided
under section 31(b) reside within
any Indian reservation governed
by 1 or more of the tribal govern-
ment owners, or reside within
any HUBZone adjoining any
such Indian reservation;
‘‘(II) the small business concern
will attempt to maintain the applica-
ble employment percentage under sub-
clause (I) during the performance of
any contract awarded to the small
business concern on the basis of a
preference provided under section
31(b); and’’.
(b) 
CLARIFYING
AMENDMENT.—Section
3(p)(5)(D)(i) of the Small Business Act (15 U.S.C.
632(p)(5)(D)(i)) is amended by inserting ‘‘once the Ad-
ministrator has made the certification required by sub-
paragraph (A)(i) regarding a qualified HUBZone small
business concern and has determined that subparagraph
(A)(ii) does not apply to that concern,’’ before ‘‘include’’.
SEC. 604. OTHER DEFINITIONS.
Section 3(p) of the Small Business Act (15 U.S.C.
632(p)) is amended by adding at the end the following:
‘‘(6) NATIVE AMERICAN SMALL BUSINESS CON-
CERNS.—
‘‘(A) ALASKA NATIVE CORPORATION.—The
term ‘Alaska Native Corporation’ has the same
meaning as the term ‘Native Corporation’ in
section 3 of the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1602).
‘‘(B) ALASKA NATIVE VILLAGE.—The term
‘Alaska Native Village’ has the same meaning
as the term ‘Native village’ in section 3 of the
Alaska Native Claims Settlement Act (43
U.S.C. 1602).
‘‘(C) INDIAN
RESERVATION.—The term
‘Indian reservation’—
‘‘(i) has the same meaning as the
term ‘Indian country’ in section 1151 of
title 18, United States Code, except that
such term does not include—
‘‘(I) any lands that are located
within a State in which a tribe did not
exercise governmental jurisdiction on
the date of enactment of this para-
graph, unless that tribe is recognized
after that date of enactment by either
an Act of Congress or pursuant to
regulations of the Secretary of the In-
terior for the administrative recogni-
tion that an Indian group exists as an
Indian tribe (part 83 of title 25, Code
of Federal Regulations); and
‘‘(II) lands taken into trust or
acquired by an Indian tribe after the
date of enactment of this paragraph if
such lands are not located within the
external boundaries of an Indian res-
ervation or former reservation or are
not contiguous to the lands held in
trust or restricted status on that date
of enactment; and
‘‘(ii) in the State of Oklahoma, means
lands that—
‘‘(I) are within the jurisdictional
areas of an Oklahoma Indian tribe (as
determined by the Secretary of the In-
terior); and
‘‘(II) are recognized by the Sec-
retary of the Interior as eligible for
trust land status under part 151 of
title 25, Code of Federal Regulations
(as in effect on the date of enactment
of this paragraph).’’.
Subtitle B—Other HUBZone
Provisions
SEC. 611. DEFINITIONS.
(a) QUALIFIED CENSUS TRACT.—Section 3(p)(4)(A)
of the Small Business Act (15 U.S.C. 632(p)(4)(A)) is
amended by striking ‘‘(I)’’.
(b) QUALIFIED NONMETROPOLITAN COUNTY.—Sec-
tion 3(p)(4) of the Small Business Act (15 U.S.C.
632(p)(4)) is amended by striking subparagraph (B) and
inserting the following:
‘‘(B) 
QUALIFIED
NONMETROPOLITAN
COUNTY.—The term ‘qualified nonmetropolitan
county’ means any county—
‘‘(i) that was not located in a metro-
politan statistical area (as defined in sec-
tion 143(k)(2)(B) of the Internal Revenue
Code of 1986) at the time of the most re-
cent census taken for purposes of selecting
qualified 
census 
tracts 
under 
section
42(d)(5)(C)(ii) of the Internal Revenue
Code of 1986; and
‘‘(ii) in which—
‘‘(I) the median household in-
come is less than 80 percent of the
nonmetropolitan State median house-
hold income, based on the most recent
data available from the Bureau of the
Census of the Department of Com-
merce; or
‘‘(II) the unemployment rate is
not less than 140 percent of the
Statewide average unemployment rate
for the State in which the county is
located, based on the most recent data
available 
from 
the 
Secretary 
of
Labor.’’.
SEC. 612. ELIGIBLE CONTRACTS.
(a) COMMODITIES CONTRACTS.—Section 31(b)(3) of
the Small Business Act (15 U.S.C. 657a(b)(3)) is
amended—
(1) by striking ‘‘In any’’ and inserting the fol-
lowing:
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), in any’’; and
(2) by adding at the end the following:
‘‘(B) PROCUREMENT OF COMMODITIES.—
For purchases by the Secretary of Agriculture
of agricultural commodities, the price evaluation
preference shall be—
‘‘(i) 10 percent, for the portion of a
contract to be awarded that is not greater
than 25 percent of the total volume being
procured for each commodity in a single
invitation;
‘‘(ii) 5 percent, for the portion of a
contract to be awarded that is greater than
25 percent, but not greater than 40 per-
cent, of the total volume being procured
for each commodity in a single invitation;
and
‘‘(iii) zero, for the portion of a con-
tract to be awarded that is greater than 40
percent of the total volume being procured
for each commodity in a single invitation.
‘‘(C) TREATMENT
OF
PREFERENCE.—A
contract awarded to a HUBZone small business
concern under a preference described in sub-
paragraph (B) shall not be counted toward the
fulfillment of any requirement partially set
aside for competition restricted to small busi-
ness concerns.’’.
(b) DEFINITIONS.—Section 3(p) of the Small Busi-
ness Act (15 U.S.C. 632(p)), as amended by this Act, is
amended—
(1) in paragraph (5)(A)(i)(III)—
(A) in item (aa), by striking ‘‘and’’ at the
end; and
(B) by adding at the end the following:
‘‘(cc) in the case of a con-
tract for the procurement by the
Secretary of Agriculture of agri-
cultural commodities, none of the
commodity being procured will be
obtained by the prime contractor
through a subcontract for the
purchase of the commodity in
substantially the final form in
which it is to be supplied to the
Government; and’’; and
(2) by adding at the end the following:
‘‘(7) AGRICULTURAL
COMMODITY.—The term
‘agricultural commodity’ has the same meaning as in
section 102 of the Agricultural Trade Act of 1978
(7 U.S.C. 5602).’’.
SEC. 613. HUBZONE REDESIGNATED AREAS.
Section 3(p) of the Small Business Act (15 U.S.C.
632(p)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (B), by striking ‘‘or’’
at the end;
(B) in subparagraph (C), by striking the
period at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(D) redesignated areas.’’; and
(2) in paragraph (4), by adding at the end the
following:
‘‘(C) REDESIGNATED
AREA.—The term
‘redesignated area’ means any census tract that
ceases to be qualified under subparagraph (A)
and any nonmetropolitan county that ceases to
be qualified under subparagraph (B), except
that a census tract or a nonmetropolitan county
may be a ‘redesignated area’ only for the 3-year
period following the date on which the census
tract or nonmetropolitan county ceased to be so
qualified.’’.
SEC. 614. COMMUNITY DEVELOPMENT.
Section 3(p) of the Small Business Act (15 U.S.C.
632(p)), as amended by this Act, is amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking ‘‘or’’
at the end;
(B) in subparagraph (C), by striking the
period at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(D) a small business concern that is—
‘‘(i) wholly owned by a community de-
velopment corporation that has received fi-
nancial assistance under Part 1 of Sub-
chapter A of the Community Economic De-
velopment Act of 1981 (42 U.S.C. 9805 et
seq.); or
‘‘(ii) owned in part by 1 or more com-
munity development corporations, if all
other owners are either United States citi-
zens or small business concerns.’’; and
(2) in paragraph (5)(A)(i)(I)(aa), by striking
‘‘subparagraph (A) or (B)’’ and inserting ‘‘subpara-
graph (A), (B), or (D)’’.
SEC. 615. REFERENCE CORRECTIONS.
(a) SECTION 3.—Section 3(p)(5)(C) of the Small
Business Act (15 U.S.C. 632(p)(5)(C)) is amended by
striking ‘‘subclause (IV) and (V) of subparagraph (A)(i)’’
and inserting ‘‘items (aa) and (bb) of subparagraph
(A)(i)(III)’’.
(b) SECTION 8.—Section 8(d)(4)(D) of the Small
Business Act (15 U.S.C. 637(d)(4)(D)) is amended by in-
serting ‘‘qualified HUBZone small business concerns,’’
after ‘‘small business concerns,’’.
TITLE VII—NATIONAL WOMEN’S
BUSINESS 
COUNCIL 
REAU-
THORIZATION
SEC. 701. SHORT TITLE.
This title may be cited as the ‘‘National Women’s
Business Council Reauthorization Act of 2000’’.
SEC. 702. MEMBERSHIP OF THE COUNCIL.
Section 407 of the Women’s Business Ownership Act
of 1988 (15 U.S.C. 631 note) is amended—
(1) in subsection (a), by striking ‘‘Not later’’
and all that follows through ‘‘the President’’ and in-
serting ‘‘The President’’;
(2) in subsection (b)—
(A) by striking ‘‘Not later’’ and all that
follows through ‘‘the Administrator’’ and insert-
ing ‘‘The Administrator’’; and
(B) by striking ‘‘the Assistant Adminis-
trator of the Office of Women’s Business Own-
ership and’’;
(3) in subsection (d), by striking ‘‘, except
that’’ and all that follows through the end of the
subsection and inserting a period; and
(4) in subsection (h), by striking ‘‘Not later’’
and all that follows through ‘‘the Administrator’’
and inserting ‘‘The Administrator’’.
SEC. 703. REPEAL OF PROCUREMENT PROJECT.
Section 409 of the Women’s Business Ownership Act
of 1988 (15 U.S.C. 631 note) is repealed.
SEC. 704. STUDIES AND OTHER RESEARCH.
Section 410 of the Women’s Business Ownership Act
of 1988 (15 U.S.C. 631 note) is amended to read as fol-
lows:
‘‘SEC. 409. STUDIES AND OTHER RESEARCH.
‘‘(a) IN GENERAL.—The Council may conduct such
studies and other research relating to the award of Fed-
eral prime contracts and subcontracts to women-owned
businesses, to access to credit and investment capital by
women entrepreneurs, or to other issues relating to
women-owned businesses, as the Council determines to be
appropriate.
‘‘(b) CONTRACT AUTHORITY.—In conducting any
study or other research under this section, the Council
may contract with 1 or more public or private entities.’’.
SEC. 705. AUTHORIZATION OF APPROPRIATIONS.
Section 411 of the Women’s Business Ownership Act
of 1988 (15 U.S.C. 631 note) is amended to read as fol-
lows:
‘‘SEC. 410. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There is authorized to be appro-
priated to carry out this title $1,000,000, for each of fiscal
years 2001 through 2003, of which $550,000 shall be
available in each such fiscal year to carry out section 409.
‘‘(b) BUDGET REVIEW.—No amount made available
under this section for any fiscal year may be obligated or
expended by the Council before the date on which the
Council reviews and approves the operating budget of the
Council to carry out the responsibilities of the Council for
that fiscal year.’’.
TITLE VIII—MISCELLANEOUS
PROVISIONS
SEC. 801. LOAN APPLICATION PROCESSING.
(a) STUDY.—The Administrator of the Small Busi-
ness Administration shall conduct a study to determine
the average time that the Administration requires to proc-
ess an application 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 enactment of this Act, the Administrator shall
transmit to Congress the results of the study conducted
under subsection (a).
SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS.
(a) SMALL BUSINESS ACT.—Section 7(a) of the
Small Business Act (15 U.S.C. 636(a)) is amended by
adding at the end the following:
‘‘(30) OWNERSHIP
REQUIREMENTS.—Owner-
ship requirements to determine the eligibility of a
small business concern that applies for assistance
under any credit program under this Act shall be de-
termined without regard to any ownership interest of
a spouse arising solely from the application of the
community property laws of a State for purposes of
determining marital interests.’’.
(b) SMALL BUSINESS INVESTMENT ACT OF 1958.—
Section 502 of the Small Business Investment Act of 1958
(15 U.S.C. 696) is amended by adding at the end the fol-
lowing:
‘‘(6) OWNERSHIP REQUIREMENTS.—Ownership
requirements to determine the eligibility of a small
business concern that applies for assistance under
any credit program under this title shall be deter-
mined without regard to any ownership interest of a
spouse arising solely from the application of the
community property laws of a State for purposes of
determining marital interests.’’.
SEC. 803. 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 sen-
tences;
(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 vet-
erans,’’ in each of the first and second sen-
tences; and
(B) in subparagraph (F), by inserting
‘‘small business concern owned and controlled
by service-disabled veterans,’’ after ‘‘small busi-
ness concern owned and controlled by vet-
erans,’’; and
(3) in each of paragraphs (4)(D), (4)(E),
(6)(A), (6)(C), (6)(F), and (10)(B), by inserting
‘‘small business concerns owned and controlled by
service-disabled veterans,’’ after ‘‘small business con-
cerns owned and controlled by veterans,’’.
SEC. 804. 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 amend-
ed by striking ‘‘For fiscal year 1985’’ and all that
follows through ‘‘expended.’’ and inserting the fol-
lowing: ‘‘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
exceed the annual funding level, as specified in sec-
tion 21(a);
‘‘(B) to pay the expenses of the National Small
Business Development Center Advisory Board, as
provided in section 21(i);
‘‘(C) to pay the expenses of the information
sharing 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
certification 
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
amended by moving the margins of paragraphs (3)
and (4), including 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
Business Development Center Program,
less any reductions made for expenses au-
thorized by clause (v) of this subpara-
graph, shall be divided on a pro rata basis,
based on the percentage of the population
of each State, as compared to the popu-
lation of the United States.
‘‘(II) If the pro rata amount cal-
culated under subclause (I) for any State
is less than the minimum funding level
under clause (iii), the Administration shall
determine the aggregate amount necessary
to achieve that minimum funding level for
each such State.
‘‘(III) The aggregate amount cal-
culated under subclause (II) shall be de-
ducted 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 compared 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
funding 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 determined under clause (i), subject to
any modifications 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 accordance with clause (iv). The
amount of a grant received by a State under
any provision of this subparagraph shall not ex-
ceed the amount of matching funds from
sources other than the Federal Government, as
required under subparagraph (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
fiscal year to carry out this section, as follows:
100
‘‘(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
funding level shall be the sum of $500,000
plus a percentage of $500,000 equal to the
percentage 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
101
distribute such remaining funds, on a pro
rata basis, based on the percentage of
shortage 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 fis-
cal year 2000, or until such funds are ex-
hausted, whichever first occurs.
‘‘(II) If any funds remain after the
application of subclause (I), the remaining
amount may be distributed as supple-
mental grants to any State, as the Admin-
istration determines, in its discretion, to be
appropriate, after consultation with the as-
sociation 
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-
102
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 de-
scribed in subclause (I) may be used for
examination 
expenses 
under 
section
20(a)(1)(E) if the usage would reduce the
amount of grants made available under
clause (i)(I) of this subparagraph 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 de-
velopment center program) or would fur-
ther 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 (a)(6) or
(c)(3)(G), or for supplemental grants set forth
in clause (iv)(II) of this subparagraph, shall not
be included in the calculation of maximum
103
funding for a State under clause (ii) of this
subparagraph.
‘‘(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 sev-
eral States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Virgin Islands,
Guam, and American Samoa.’’.
SEC. 805. 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’’.
104
SEC. 806. SIZE STANDARDS.
(a) INDUSTRY CLASSIFICATIONS.—Section 15(a) of
the Small Business Act (15 U.S.C. 644(a)) is amended
in the eighth sentence, by striking ‘‘four-digit standard’’
and all that follows through ‘‘published’’ and inserting
‘‘definition of a ‘United States industry’ under the North
American Industry Classification System, as established’’.
(b) ANNUAL RECEIPTS.—Section 3(a)(1) of the
Small Business Act (15 U.S.C. 632(a)(1)) is amended by
striking ‘‘$500,000’’ and inserting ‘‘$750,000’’.
SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SEC-
TION 8(a).
Section 8(a)(15)(A) of the Small Business Act (15
U.S.C. 637(a)(15)(A)) is amended to read as follows:
‘‘(A) is a nonprofit corporation that has filed
articles of incorporation with the director (or the
designee thereof) of the Hawaii Department of Com-
merce and Consumer Affairs, or any successor agen-
cy,’’.
SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT
CORPORATION CORRECTION.
Section 33(k) of the Small Business Act (15 U.S.C.
657c(k)) is amended—
(1) by striking paragraph (1) and inserting the
following:
105
‘‘(1) IN GENERAL.—Subject to paragraph (2),
there are authorized to be appropriated to the Cor-
poration to carry out this section—
‘‘(A) $4,000,000 for fiscal year 2001;
‘‘(B) $4,000,000 for fiscal year 2002;
‘‘(C) $2,000,000 for fiscal year 2003; and
‘‘(D) $2,000,000 for fiscal year 2004.’’;
(2) in paragraph (2)(A), by striking ‘‘2001’’
each place it appears and inserting ‘‘2002’’; and
(3) in paragraph (2)(B), by striking ‘‘2002 or
2003’’ and inserting ‘‘2003 or 2004’’.
SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE.
Section 8(b)(1)(B) of the Small Business Act (15
U.S.C. 637(b)(1)(B)) is amended by adding at the end
the following: ‘‘Notwithstanding any other provision of
law, SCORE may solicit cash and in-kind contributions
from the private sector to be used to carry out its func-
tions under this Act, and may use payments made by the
Administration pursuant to this subparagraph for such so-
licitation.’’.
SEC. 810. CONTRACT DATA COLLECTION.
(a) DEFINITION OF BUNDLED CONTRACT.—Section
3(o)(1) of the Small Business Act (15 U.S.C. 632(o)(1))
is amended to read as follows:
106
‘‘(1) BUNDLED CONTRACT.—The term ‘bundled
contract’ means a contract, or a modification of an
existing contract, that is entered into to meet—
‘‘(A) requirements that are consolidated in
a bundling of contract requirements regardless
of whether the contracting agency has con-
ducted a study of the effects of the solicitation
for the contract on civilian or military personnel
of the United States; or
‘‘(B) any procurement requirement that
permits the consolidation of 2 or more procure-
ment requirements.’’.
(b) ANALYSIS REQUIRED WITH RESPECT TO BUN-
DLED CONTRACTS.—Section 15(e)(2)(A) of the Small
Business Act (15 U.S.C. 644(e)(2)(A)) is amended—
(1) by striking ‘‘(A) IN GENERAL.—’’ and in-
serting the following:
‘‘(A) DETERMINATION OF NECESSITY.—
‘‘(i) IN GENERAL.—’’; and
(2) by adding at the end the following:
‘‘(ii) IDENTIFICATION OF DISPLACED
PRIME
CONTRACTORS.—The market re-
search required by clause (i) shall identify
each small business concern that will be
displaced as a prime contractor as a result
107
of the award of a contract described in
such clause, and the Administrator shall
maintain such data for a period of not less
than 10 years.
‘‘(iii) BUNDLED CONTRACTS SUBJECT
TO RECOMPETITION.—
‘‘(I) IN GENERAL.—Not less than
30 days before issuing a solicitation to
recompete a previously bundled con-
tract as a contract that continues to
contain the bundling of contract re-
quirements of the original bundled
contract, the head of the agency shall
notify the Administrator and transmit
a report to the Administrator con-
taining the results of the market re-
search required under clause (i).
‘‘(II) REVIEW AND DETERMINA-
TION.—The Administrator shall, not
later than 30 days after notification
under 
subclause 
(I), 
review 
and
determine—
‘‘(aa) the amount of savings
and benefits (in accordance with
this subsection) achieved under
108
the bundling of contract require-
ments; and
‘‘(bb) whether such savings
and benefits will continue to be
realized if the contract remains
bundled and whether such bene-
fits would be greater if the pro-
curement requirements were di-
vided into separate solicitations
suitable for award to small busi-
ness concerns.
‘‘(II) APPEAL.—
‘‘(aa) 
IN
GENERAL.—If,
after conducting a review under
subclause (II), the Administrator
reaches a conclusion with respect
to the savings and benefits of the
recompeted bundle different than
that reached by the head of the
contracting agency as part of the
market analysis required under
clause (i) and such head proceeds
with a solicitation for the con-
tract, the Administrator shall file
an appeal with the Administrator
109
of the Office of Federal Procure-
ment Policy.
‘‘(bb) NOTICE.—If the Ad-
ministrator files an appeal under
item 
(aa), 
the 
Administrator
shall notify the head of the con-
tracting agency.
‘‘(cc) 
FILING
OF
RE-
PORTS.—Not less than 5 cal-
endar days after notice is given
under item (bb), the Adminis-
trator shall submit a report con-
taining information on the Ad-
ministrator’s conclusions and de-
terminations 
under 
subclause
(II), and the head of the con-
tracting agency shall submit the
report described in subclause (I),
to the Administrator of the Of-
fice of Federal Procurement Pol-
icy.
‘‘(dd) DECISION.—Not later
than 7 calendar days after the
submission of reports under item
(cc), the Administrator of the Of-
110
fice of Federal Procurement Pol-
icy shall determine whether the
subject contract shall be recom-
peted as bundled contract.’’.
(c) ANNUAL REPORT ON CONTRACT BUNDLING.—
Section 15 of the Small Business Act (15 U.S.C. 644) is
amended by adding at the end the following:
‘‘(p) ANNUAL REPORT ON CONTRACT BUNDLING.—
‘‘(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this subsection, and annu-
ally in March thereafter, the Administration shall
transmit a report on contract bundling to the Com-
mittees on Small Business of the House of Rep-
resentatives and the Senate.
‘‘(2) CONTENTS.—Each report transmitted
under paragraph (1) shall include—
‘‘(A) data on the number, arranged by in-
dustrial classification, of small business con-
cerns displaced as prime contractors as a result
of the award of bundled contracts by Federal
agencies; and
‘‘(B) a description of the activities with re-
spect to previously bundled contracts of each
Federal agency during the preceding year,
including—
111
‘‘(i) data on the number and total dol-
lar amount of all contract requirements
that were bundled; and
‘‘(ii) with respect to each bundled con-
tract, data or information on—
‘‘(I) the justification for the bun-
dling of contract requirements;
‘‘(II) the cost savings realized by
bundling the contract requirements
over the life of the contract;
‘‘(III) the extent to which main-
taining the bundled status of contract
requirements is projected to result in
continued cost savings;
‘‘(IV) the extent to which the
bundling of contract requirements
complied with the contracting agen-
cy’s small business subcontracting
plan, including the total dollar value
awarded to small business concerns as
subcontractors and the total dollar
value previously awarded to small
business concerns as prime contrac-
tors; and
112
‘‘(V) the impact of the bundling
of contract requirements on small
business concerns unable to compete
as prime contractors for the consoli-
dated requirements and on the indus-
tries of such small business concerns,
including a description of any changes
to the proportion of any such industry
that is composed of small business
concerns.’’.
(d) REPORTING OF BUNDLED CONTRACT OPPORTU-
NITIES.—Section 414(a) of the Small Business Reauthor-
ization Act of 1997 (4 U.S.C. 405 note) is amended—
(1) by striking ‘‘$5,000,000’’ and inserting
‘‘$25,000’’; and
(2) by striking ‘‘bundling of contract require-
ments’’ and inserting ‘‘bundled contract’’.
(e) PROVISION OF DATA.—Upon the request of the
Administrator of the Small Business Administration, the
head of any contracting agency shall promptly provide to
the Administrator such information as the Administrator
determines to be necessary to carry out this section or the
amendments made by this section.
113
SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED
SMALL BUSINESS CONCERNS.
Section 8 of the Small Business Act (15 U.S.C. 637)
is amended by adding at the end the following:
‘‘(m) PROCUREMENT PROGRAM FOR WOMEN-OWNED
SMALL BUSINESS CONCERNS.—
‘‘(1) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply:
‘‘(A) CONTRACTING OFFICER.—The term
‘contracting officer’ has the meaning given such
term in section 27(f)(5) of the Office of Federal
Procurement Policy Act (41 U.S.C. 423(f)(5)).
‘‘(B) SMALL BUSINESS CONCERN OWNED
AND
CONTROLLED
BY
WOMEN.—The term
‘small business concern owned and controlled by
women’ has the meaning given such term in
section 3(n), except that ownership shall be de-
termined without regard to any community
property law.
‘‘(2) AUTHORITY TO RESTRICT COMPETITION.—
In accordance with this subsection, a contracting of-
ficer may restrict competition for any contract for
the procurement of goods or services by the Federal
Government to small business concerns owned and
controlled by women, if—
114
‘‘(A) each of the concerns is not less than
51 percent owned by 1 or more women who are
economically disadvantaged (and such owner-
ship is determined without regard to any com-
munity property law);
‘‘(B) the contracting officer has a reason-
able expectation that 2 or more small business
concerns owned and controlled by women will
submit offers for the contract;
‘‘(C) the contract is for the procurement of
goods or services with respect to an industry
identified by the Administrator pursuant to
paragraph (3);
‘‘(D) the anticipated award price of the
contract (including options) does not exceed—
‘‘(i) $5,000,000, in the case of a con-
tract assigned an industrial classification
code for manufacturing; or
‘‘(ii) $3,000,000, in the case of all
other contracts;
‘‘(E) in the estimation of the contracting
officer, the contract award can be made at a
fair and reasonable price; and
‘‘(F) each of the concerns—
115
‘‘(i) is certified by a Federal agency,
a State government, or a national certi-
fying entity approved by the Adminis-
trator, as a small business concern owned
and controlled by women; or
‘‘(ii) certifies to the contracting officer
that it is a small business concern owned
and controlled by women and provides ade-
quate documentation, in accordance with
standards established by the Administra-
tion, to support such certification.
‘‘(3) WAIVER.—With respect to a small busi-
ness concern owned and controlled by women, the
Administrator may waive subparagraph (2)(A) if the
Administrator determines that the concern is in an
industry in which small business concerns owned
and controlled by women are substantially underrep-
resented.
‘‘(4) IDENTIFICATION
OF
INDUSTRIES.—The
Administrator shall conduct a study to identify in-
dustries in which small business concerns owned and
controlled by women are underrepresented with re-
spect to Federal procurement contracting.
‘‘(5) ENFORCEMENT; PENALTIES.—
116
‘‘(A) VERIFICATION
OF
ELIGIBILITY.—In
carrying out this subsection, the Administrator
shall establish procedures relating to—
‘‘(i) the filing, investigation, and dis-
position by the Administration of any chal-
lenge to the eligibility of a small business
concern to receive assistance under this
subsection (including a challenge, filed by
an interested party, relating to the veracity
of a certification made or information pro-
vided to the Administration by a small
business concern under paragraph (2)(F));
and
‘‘(ii) verification by the Administrator
of the accuracy of any certification made
or information provided to the Administra-
tion by a small business concern under
paragraph (2)(F).
‘‘(B) EXAMINATIONS.—The procedures es-
tablished under subparagraph (A) may provide
for program examinations (including random
program examinations) by the Administrator of
any small business concern making a certifi-
cation or providing information to the Adminis-
trator under paragraph (2)(F).
117
‘‘(C) PENALTIES.—In addition to the pen-
alties described in section 16(d), any small busi-
ness concern that is determined by the Admin-
istrator to have misrepresented the status of
that concern as a small business concern owned
and controlled by women for purposes of this
subsection, shall be subject to—
‘‘(i) section 1001 of title 18, United
States Code; and
‘‘(ii) sections 3729 through 3733 of
title 31, United States Code.
‘‘(6) PROVISION OF DATA.—Upon the request
of the Administrator, the head of any Federal de-
partment or agency shall promptly provide to the
Administrator such information as the Adminis-
trator determines to be necessary to carry out this
subsection.’’.
TITLE 
IX—COMMUNITY 
RE-
NEWAL AND NEW MARKETS
INITIATIVES
SEC. 901. NEW MARKETS VENTURE CAPITAL PROGRAM.
(a) SHORT TITLE.—This section may be cited as the
‘‘New Markets Venture Capital Program Act of 2000’’.
118
(b) NEW MARKETS VENTURE CAPITAL PROGRAM.—
Title III of the Small Business Investment Act of 1958
(15 U.S.C. 681 et seq.) is amended—
(1) in the heading for the title, by striking
‘‘SMALL BUSINESS INVESTMENT COMPA-
NIES’’ and inserting ‘‘INVESTMENT DIVISION
PROGRAMS’’;
(2) by inserting before the heading for section
301 the following:
‘‘PART A—SMALL BUSINESS INVESTMENT COMPANIES’’;
and
(3) by adding at the end the following:
‘‘PART B—NEW MARKETS VENTURE CAPITAL PROGRAM
‘‘SEC. 351. DEFINITIONS.
‘‘In this part, the following definitions apply:
‘‘(1) DEVELOPMENTAL
VENTURE
CAPITAL.—
The term ‘developmental venture capital’ means cap-
ital in the form of equity capital investments in busi-
nesses made with a primary objective of fostering
economic development in low-income geographic
areas. For the purposes of this paragraph, the term
‘equity capital’ has the same meaning given such
term in section 303(g)(4).
119
‘‘(2) LOW-INCOME
INDIVIDUAL.—The term
‘low-income individual’ means an individual whose
income (adjusted for family size) does not exceed—
‘‘(A) for metropolitan areas, 80 percent of
the area median income; and
‘‘(B) for nonmetropolitan areas, the great-
er of—
‘‘(i) 80 percent of the area median in-
come; or
‘‘(ii) 80 percent of the statewide non-
metropolitan area median income.
‘‘(3) LOW-INCOME
GEOGRAPHIC
AREA.—The
term ‘low-income geographic area’ means—
‘‘(A) any population census tract (or in the
case of an area that is not tracted for popu-
lation census tracts, the equivalent county divi-
sion, as defined by the Bureau of the Census of
the Department of Commerce for purposes of
defining poverty areas), if—
‘‘(i) the poverty rate for that census
tract is not less than 20 percent;
‘‘(ii) in the case of a tract—
‘‘(I) that is located within a met-
ropolitan area, 50 percent or more of
the households in that census tract
120
have an income equal to less than 60
percent of the area median gross in-
come; or
‘‘(II) that is not located within a
metropolitan area, the median house-
hold income for such tract does not
exceed 80 percent of the statewide
median household income; or
‘‘(iii) as determined by the Adminis-
trator based on objective criteria, a sub-
stantial population of low-income individ-
uals reside, an inadequate access to invest-
ment capital exists, or other indications of
economic distress exist in that census
tract; or
‘‘(B) any area located within—
‘‘(i) a HUBZone (as defined in sec-
tion 3(p) of the Small Business Act and
the implementing regulations issued under
that section);
‘‘(ii) an urban empowerment zone or
urban enterprise community (as designated
by the Secretary of Housing and Urban
Development); or
121
‘‘(iii) a rural empowerment zone or
rural enterprise community (as designated
by the Secretary of Agriculture).
‘‘(4) NEW MARKETS VENTURE CAPITAL COM-
PANY.—The term ‘New Markets Venture Capital
company’ means a company that—
‘‘(A) has been granted final approval by
the Administrator under section 354(e); and
‘‘(B) has entered into a participation
agreement with the Administrator.
‘‘(5) OPERATIONAL
ASSISTANCE.—The term
‘operational assistance’ means management, mar-
keting, and other technical assistance that assists a
small business concern with business development.
‘‘(6) PARTICIPATION
AGREEMENT.—The term
‘participation agreement’ means an agreement, be-
tween the Administrator and a company granted
final approval under section 354(e), that—
‘‘(A) details the company’s operating plan
and investment criteria; and
‘‘(B) requires the company to make invest-
ments in smaller enterprises at least 80 percent
of which are located in low-income geographic
areas.
122
‘‘(7) SPECIALIZED
SMALL
BUSINESS
INVEST-
MENT COMPANY.—The term ‘specialized small busi-
ness investment company’ means any small business
investment company that—
‘‘(A) invests solely in small business con-
cerns that contribute to a well-balanced na-
tional economy by facilitating ownership in such
concerns by persons whose participation in the
free enterprise system is hampered because of
social or economic disadvantages;
‘‘(B) is organized or chartered under State
business or nonprofit corporations statutes, or
formed as a limited partnership; and
‘‘(C) was licensed under section 301(d), as
in effect before September 30, 1996.
‘‘(8) STATE.—The term ‘‘State’’ means each of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and any other common-
wealth, territory, or possession of the United States;
‘‘SEC. 352. PURPOSES.
‘‘The purposes of the New Markets Venture Capital
Program established under this part are—
125
‘‘(3) the company has a primary objective of
economic development of low-income geographic
areas.
‘‘(b) APPLICATION.—To participate, as a New Mar-
kets Venture Capital company, in the program established
under this part a company meeting the eligibility require-
ments set forth in subsection (a) shall submit an applica-
tion to the Administrator that includes—
‘‘(1) a business plan describing how the com-
pany intends to make successful developmental ven-
ture capital investments in identified low-income ge-
ographic areas;
‘‘(2) information regarding the community de-
velopment finance or relevant venture capital quali-
fications and general reputation of the company’s
management;
‘‘(3) a description of how the company intends
to work with community organizations and to seek
to address the unmet capital needs of the commu-
nities served;
‘‘(4) a proposal describing how the company in-
tends to use the grant funds provided under this
part to provide operational assistance to smaller en-
terprises financed by the company, including infor-
mation regarding whether the company intends to
126
use licensed professionals, when necessary, on the
company’s staff or from an outside entity;
‘‘(5) with respect to binding commitments to be
made to the company under this part, an estimate
of the ratio of cash to in-kind contributions;
‘‘(6) a description of the criteria to be used to
evaluate whether and to what extent the company
meets the objectives of the program established
under this part;
‘‘(7) information regarding the management
and financial strength of any parent firm, affiliated
firm, or any other firm essential to the success of
the company’s business plan; and
‘‘(8) such other information as the Adminis-
trator may require.
‘‘(c) CONDITIONAL APPROVAL.—
‘‘(1) IN
GENERAL.—From among companies
submitting applications under subsection (b), the
Administrator shall, in accordance with this sub-
section, conditionally approve companies to partici-
pate in the New Markets Venture Capital Program.
‘‘(2) SELECTION CRITERIA.—In selecting com-
panies under paragraph (1), the Administrator shall
consider the following:
127
‘‘(A) The likelihood that the company will
meet the goals of its business plan.
‘‘(B) The experience and background of
the company’s management team.
‘‘(C) The need for developmental venture
capital investments in the geographic areas in
which the company intends to invest.
‘‘(D) The extent to which the company will
concentrate its activities on serving the geo-
graphic areas in which it intends to invest.
‘‘(E) The likelihood that the company will
be able to satisfy the conditions under sub-
section (d).
‘‘(F) The extent to which the activities
proposed by the company will expand economic
opportunities in the geographic areas in which
the company intends to invest.
‘‘(G) The strength of the company’s pro-
posal to provide operational assistance under
this part as the proposal relates to the ability
of the applicant to meet applicable cash require-
ments and properly utilize in-kind contribu-
tions, including the use of resources for the
services of licensed professionals, when nec-
essary, whether provided by persons on the
128
company’s staff or by persons outside of the
company.
‘‘(H) Any other factors deemed appro-
priate by the Administrator.
‘‘(3) NATIONWIDE DISTRIBUTION.—The Admin-
istrator shall select companies under paragraph (1)
in such a way that promotes investment nationwide.
‘‘(d) REQUIREMENTS TO BE MET FOR FINAL AP-
PROVAL.—The Administrator shall grant each condi-
tionally approved company a period of time, not to exceed
2 years, to satisfy the following requirements:
‘‘(1) CAPITAL
REQUIREMENT.—Each condi-
tionally approved company shall raise not less than
$5,000,000 of private capital or binding capital com-
mitments from one or more investors (other than
agencies or departments of the Federal Government)
who meet criteria established by the Administrator.
‘‘(2) NONADMINISTRATION
RESOURCES
FOR
OPERATIONAL ASSISTANCE.—
‘‘(A) IN
GENERAL.—In order to provide
operational assistance to smaller enterprises ex-
pected to be financed by the company, each
conditionally approved company—
‘‘(i) shall have binding commitments
(for contribution in cash or in kind)—
129
‘‘(I) from any sources other than
the Small Business Administration
that meet criteria established by the
Administrator;
‘‘(II) payable or available over a
multiyear period acceptable to the Ad-
ministrator (not to exceed 10 years);
and
‘‘(III) in an amount not less than
30 percent of the total amount of cap-
ital and commitments raised under
paragraph (1);
‘‘(ii) 
shall 
have 
purchased 
an
annuity—
‘‘(I) from an insurance company
acceptable to the Administrator;
‘‘(II) using funds (other than the
funds raised under paragraph (1))
from any source other than the Ad-
ministrator; and
‘‘(III) that yields cash payments
over a multiyear period acceptable to
the Administrator (not to exceed 10
years) in an amount not less than 30
percent of the total amount of capital
130
and commitments raised under para-
graph (1); or
‘‘(iii) shall have binding commitments
(for contributions in cash or in kind) of the
type described in clause (i) and shall have
purchased an annuity of the type described
in clause (ii), which in the aggregate make
available, over a multiyear period accept-
able to the Administrator (not to exceed 10
years), an amount not less than 30 percent
of the total amount of capital and commit-
ments raised under paragraph (1).
‘‘(B) 
EXCEPTION.—The 
Administrator
may, in the discretion of the Administrator and
based upon a showing of special circumstances
and good cause, consider an applicant to have
satisfied the requirements of subparagraph (A)
if the applicant has—
‘‘(i) a viable plan that reasonably
projects the capacity of the applicant to
raise the amount (in cash or in-kind) re-
quired under subparagraph (A); and
‘‘(ii) binding commitments in an
amount equal to not less than 20 percent
131
of the total amount required under para-
graph (A).
‘‘(C) LIMITATION.—In order to comply
with the requirements of subparagraphs (A)
and (B), the total amount of a company’s in-
kind contributions may not exceed 50 percent
of the company’s total contributions.
‘‘(e) FINAL APPROVAL; DESIGNATION.—The Admin-
istrator shall, with respect to each applicant conditionally
approved to operate as a New Markets Venture Capital
company under subsection (c), either—
‘‘(1) grant final approval to the applicant to op-
erate as a New Markets Venture Capital company
under this part and designate the applicant as such
a company, if the applicant—
‘‘(A) satisfies the requirements of sub-
section (d) on or before the expiration of the
time period described in that subsection; and
‘‘(B) enters into a participation agreement
with the Administrator; or
‘‘(2) if the applicant fails to satisfy the require-
ments of subsection (d) on or before the expiration
of the time period described in that subsection, re-
voke the conditional approval granted under that
subsection.
132
‘‘SEC. 355. DEBENTURES.
‘‘(a) IN GENERAL.—The Administrator may guar-
antee the timely payment of principal and interest, as
scheduled, on debentures issued by any New Markets Ven-
ture Capital company.
‘‘(b) TERMS AND CONDITIONS.—The Administrator
may make guarantees under this section on such terms
and conditions as it deems appropriate, except that the
term of any debenture guaranteed under this section shall
not exceed 15 years.
‘‘(c) FULL FAITH AND CREDIT OF THE UNITED
STATES.—The full faith and credit of the United States
is pledged to pay all amounts that may be required to be
paid under any guarantee under this part.
‘‘(d) MAXIMUM GUARANTEE.—
‘‘(1) IN GENERAL.—Under this section, the Ad-
ministrator may guarantee the debentures issued by
a New Markets Venture Capital company only to the
extent that the total face amount of outstanding
guaranteed debentures of such company does not ex-
ceed 150 percent of the private capital of the com-
pany, as determined by the Administrator.
‘‘(2) 
TREATMENT
OF
CERTAIN
FEDERAL
FUNDS.—For the purposes of paragraph (1), private
capital shall include capital that is considered to be
Federal funds, if such capital is contributed by an
133
investor other than an agency or department of the
Federal Government.
‘‘SEC. 356. ISSUANCE AND GUARANTEE OF TRUST CERTIFI-
CATES.
‘‘(a) ISSUANCE.—The Administrator may issue trust
certificates representing ownership of all or a fractional
part of debentures issued by a New Markets Venture Cap-
ital company and guaranteed by the Administrator under
this part, if such certificates are based on and backed by
a trust or pool approved by the Administrator and com-
posed solely of guaranteed debentures.
‘‘(b) GUARANTEE.—
‘‘(1) IN
GENERAL.—The Administrator may,
under such terms and conditions as it deems appro-
priate, guarantee the timely payment of the principal
of and interest on trust certificates issued by the
Administrator or its agents for purposes of this sec-
tion.
‘‘(2) LIMITATION.—Each guarantee under this
subsection shall be limited to the extent of principal
and interest on the guaranteed debentures that com-
pose the trust or pool.
‘‘(3) PREPAYMENT OR DEFAULT.—In the event
that a debenture in a trust or pool is prepaid, or in
the event of default of such a debenture, the guar-
134
antee of timely payment of principal and interest on
the trust certificates shall be reduced in proportion
to the amount of principal and interest such prepaid
debenture represents in the trust or pool. Interest on
prepaid or defaulted debentures shall accrue and be
guaranteed by the Administrator only through the
date of payment of the guarantee. At any time dur-
ing its term, a trust certificate may be called for re-
demption due to prepayment or default of all deben-
tures.
‘‘(c) FULL FAITH AND CREDIT OF THE UNITED
STATES.—The full faith and credit of the United States
is pledged to pay all amounts that may be required to be
paid under any guarantee of a trust certificate issued by
the Administrator or its agents under this section.
‘‘(d) FEES.—The Administrator shall not collect a fee
for any guarantee of a trust certificate under this section,
but any agent of the Administrator may collect a fee ap-
proved by the Administrator for the functions described
in subsection (f)(2).
‘‘(e) SUBROGATION AND OWNERSHIP RIGHTS.—
‘‘(1) SUBROGATION.—In the event the Adminis-
trator pays a claim under a guarantee issued under
this section, it shall be subrogated fully to the rights
satisfied by such payment.
135
‘‘(2) OWNERSHIP RIGHTS.—No Federal, State,
or local law shall preclude or limit the exercise by
the Administrator of its ownership rights in the de-
bentures residing in a trust or pool against which
trust certificates are issued under this section.
‘‘(f) MANAGEMENT AND ADMINISTRATION.—
‘‘(1) REGISTRATION.—The Administrator may
provide for a central registration of all trust certifi-
cates issued under this section.
‘‘(2) CONTRACTING OF FUNCTIONS.—
‘‘(A) IN
GENERAL.—The Administrator
may contract with an agent or agents to carry
out on behalf of the Administrator the pooling
and the central registration functions provided
for in this section including, notwithstanding
any other provision of law—
‘‘(i) maintenance, on behalf of and
under the direction of the Administrator,
of such commercial bank accounts or in-
vestments in obligations of the United
States as may be necessary to facilitate the
creation of trusts or pools backed by de-
bentures guaranteed under this part; and
136
‘‘(ii) the issuance of trust certificates
to facilitate the creation of such trusts or
pools.
‘‘(B) FIDELITY BOND OR INSURANCE RE-
QUIREMENT.—Any agent performing functions
on behalf of the Administrator under this para-
graph shall provide a fidelity bond or insurance
in such amounts as the Administrator deter-
mines to be necessary to fully protect the inter-
ests of the United States.
‘‘(3) REGULATION
OF
BROKERS
AND
DEAL-
ERS.—The Administrator may regulate brokers and
dealers in trust certificates issued under this section.
‘‘(4) ELECTRONIC REGISTRATION.—Nothing in
this subsection may be construed to prohibit the use
of a book-entry or other electronic form of registra-
tion for trust certificates issued under this section.
‘‘SEC. 357. FEES.
‘‘Except as provided in section 356(d), the Adminis-
trator may charge such fees as it deems appropriate with
respect to any guarantee or grant issued under this part.
‘‘SEC. 358. OPERATIONAL ASSISTANCE GRANTS.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY.—In accordance with this sec-
tion, the Administrator may make grants to New
137
Markets Venture Capital companies and to other en-
tities, as authorized by this part, to provide oper-
ational assistance to smaller enterprises financed, or
expected to be financed, by such companies or other
entities.
‘‘(2) TERMS.—Grants made under this sub-
section shall be made over a multiyear period not to
exceed 10 years, under such other terms as the Ad-
ministrator may require.
‘‘(3) GRANTS TO SPECIALIZED SMALL BUSINESS
INVESTMENT COMPANIES.—
‘‘(A) AUTHORITY.—In accordance with
this section, the Administrator may make
grants to specialized small business investment
companies to provide operational assistance to
smaller enterprises financed, or expected to be
financed, by such companies after the effective
date of the New Markets Venture Capital Pro-
gram Act of 2000.
‘‘(B) USE OF FUNDS.—The proceeds of a
grant made under this paragraph may be used
by the company receiving such grant only to
provide operational assistance in connection
with an equity investment (made with capital
raised after the effective date of the New Mar-
138
kets Venture Capital Program Act of 2000) in
a business located in a low-income geographic
area.
‘‘(C) SUBMISSION OF PLANS.—A special-
ized small business investment company shall
be eligible for a grant under this section only if
the company submits to the Administrator, in
such form and manner as the Administrator
may require, a plan for use of the grant.
‘‘(4) GRANT AMOUNT.—
‘‘(A) NEW
MARKETS
VENTURE
CAPITAL
COMPANIES.—The amount of a grant made
under this subsection to a New Markets Ven-
ture Capital company shall be equal to the re-
sources (in cash or in kind) raised by the com-
pany under with section 354(d)(2).
‘‘(B) OTHER ENTITIES.—The amount of a
grant made under this subsection to any entity
other than a New Markets Venture capital com-
pany shall be equal to the resources (in cash or
in kind) raised by the entity in accordance with
the requirements applicable to New Markets
Venture Capital companies set forth in section
354(d)(2).
139
‘‘(5) PRO RATA REDUCTIONS.—If the amount
made available to carry out this section is insuffi-
cient for the Administrator to provide grants in the
amounts provided for in paragraph (4), the Adminis-
trator shall make pro rata reductions in the amounts
otherwise payable to each company and entity under
such paragraph.
‘‘(b) SUPPLEMENTAL GRANTS.—
‘‘(1) IN
GENERAL.—The Administrator may
make supplemental grants to New Markets Venture
Capital companies and to other entities, as author-
ized by this part, under such terms as the Adminis-
trator may require, to provide additional operational
assistance to smaller enterprises financed, or ex-
pected to be financed, by the companies.
‘‘(2) MATCHING REQUIREMENT.—The Adminis-
trator may require, as a condition of any supple-
mental grant made under this subsection, that the
company or entity receiving the grant provide from
resources (in cash or in kind), other than those pro-
vided by the Administrator, a matching contribution
equal to the amount of the supplemental grant.
‘‘(c) LIMITATION.—None of the assistance made
available under this section may be used for any overhead
or general and administrative expense of a New Markets
140
Venture Capital company or a specialized small business
investment company.
‘‘SEC. 359. BANK PARTICIPATION.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), any national bank, any member bank of the Federal
Reserve System, and (to the extent permitted under appli-
cable State law) any insured bank that is not a member
of such system, may invest in any New Markets Venture
Capital company, or in any entity established to invest
solely in New Markets Venture Capital companies.
‘‘(b) LIMITATION.—No bank described in subsection
(a) may make investments described in such subsection
that are greater than 5 percent of the capital and surplus
of the bank.
‘‘SEC. 360. FEDERAL FINANCING BANK.
‘‘Section 318 shall not apply to any debenture issued
by a New Markets Venture Capital company under this
part.
‘‘SEC. 361. REPORTING REQUIREMENTS.
‘‘Each New Markets Venture Capital company that
participates in the program established under this part
shall provide to the Administrator such information as the
Administrator may require, including—
141
‘‘(1) information related to the measurement
criteria that the company proposed in its program
application; and
‘‘(2) in each case in which the company under
this part makes an investment in, or a loan or grant
to, a business that is not located in a low-income ge-
ographic area, a report on the number and percent-
age of employees of the business who reside in such
areas.
‘‘SEC. 362. EXAMINATIONS.
‘‘(a) IN GENERAL.—Each New Markets Venture
Capital company that participates in the program estab-
lished under this part shall be subject to examinations
made at the direction of the Investment Division of the
Small Business Administration in accordance with this
section.
‘‘(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES.—
Examinations under this section may be conducted with
the assistance of a private sector entity that has both the
qualifications and the expertise necessary to conduct such
examinations.
‘‘(c) COSTS.—
‘‘(1) ASSESSMENT.—
‘‘(A) IN
GENERAL.—The Administrator
may assess the cost of examinations under this
142
section, including compensation of the exam-
iners, against the company examined.
‘‘(B) PAYMENT.—Any company against
which the Administrator assesses costs under
this paragraph shall pay such costs.
‘‘(2) DEPOSIT
OF
FUNDS.—Funds collected
under this section shall be deposited in the account
for salaries and expenses of the Small Business Ad-
ministration.
‘‘SEC. 363. INJUNCTIONS AND OTHER ORDERS.
‘‘(a) IN GENERAL.—Whenever, in the judgment of
the Administrator, a New Markets Venture Capital com-
pany or any other person has engaged or is about to en-
gage in any acts or practices which constitute or will con-
stitute a violation of any provision of this Act, or of any
rule or regulation under this Act, or of any order issued
under this Act, the Administrator may make application
to the proper district court of the United States or a
United States court of any place subject to the jurisdiction
of the United States for an order enjoining such acts or
practices, or for an order enforcing compliance with such
provision, rule, regulation, or order, and such courts shall
have jurisdiction of such actions and, upon a showing by
the Administrator that such New Markets Venture Capital
company or other person has engaged or is about to en-
143
gage in any such acts or practices, a permanent or tem-
porary injunction, restraining order, or other order, shall
be granted without bond.
‘‘(b) JURISDICTION.—In any proceeding under sub-
section (a), the court as a court of equity may, to such
extent as it deems necessary, take exclusive jurisdiction
of the New Market Venture Capital company and the as-
sets thereof, wherever located, and the court shall have
jurisdiction in any such proceeding to appoint a trustee
or receiver to hold or administer under the direction of
the court the assets so possessed.
‘‘(c) ADMINISTRATOR AS TRUSTEE OR RECEIVER.—
‘‘(1) AUTHORITY.—The Administrator may act
as trustee or receiver of a New Markets Venture
Capital company.
‘‘(2) APPOINTMENT.—Upon request of the Ad-
ministrator, the court may appoint the Adminis-
trator to act as a trustee or receiver of a New Mar-
kets Venture Capital company unless the court
deems such appointment inequitable or otherwise in-
appropriate by reason of the special circumstances
involved.
‘‘SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.
‘‘(a) IN GENERAL.—With respect to any New Mar-
kets Venture Capital company that violates or fails to
144
comply with any of the provisions of this Act, of any regu-
lation issued under this Act, or of any participation agree-
ment entered into under this Act, the Administrator may
in accordance with this section—
‘‘(1) void the participation agreement between
the Administrator and the company; and
‘‘(2) cause the company to forfeit all of the
rights and privileges derived by the company from
this Act.
‘‘(b) ADJUDICATION OF NONCOMPLIANCE.—
‘‘(1) IN GENERAL.—Before the Administrator
may cause a New Markets Venture Capital company
to forfeit rights or privileges under subsection (a), a
court of the United States of competent jurisdiction
must find that the company committed a violation,
or failed to comply, in a cause of action brought for
that purpose in the district, territory, or other place
subject to the jurisdiction of the United States, in
which the principal office of the company is located.
‘‘(2) PARTIES AUTHORIZED TO FILE CAUSES OF
ACTION.—Each cause of action brought by the
United States under this subsection shall be brought
by the Administrator or by the Attorney General.
145
‘‘SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF
FIDUCIARY DUTY.
‘‘(a) PARTIES DEEMED TO COMMIT A VIOLATION.—
Whenever any New Markets Venture Capital company vio-
lates any provision of this Act, of a regulation issued
under this Act, or of a participation agreement entered
into under this Act, by reason of its failure to comply with
its terms or by reason of its engaging in any act or prac-
tice that constitutes or will constitute a violation thereof,
such violation shall also be deemed to be a violation and
an unlawful act committed by any person who, directly
or indirectly, authorizes, orders, participates in, causes,
brings about, counsels, aids, or abets in the commission
of any acts, practices, or transactions that constitute or
will constitute, in whole or in part, such violation.
‘‘(b) FIDUCIARY DUTIES.—It shall be unlawful for
any officer, director, employee, agent, or other participant
in the management or conduct of the affairs of a New
Markets Venture Capital company to engage in any act
or practice, or to omit any act or practice, in breach of
the person’s fiduciary duty as such officer, director, em-
ployee, agent, or participant if, as a result thereof, the
company suffers or is in imminent danger of suffering fi-
nancial loss or other damage.
‘‘(c) UNLAWFUL ACTS.—Except with the written con-
sent of the Administrator, it shall be unlawful—
146
‘‘(1) for any person to take office as an officer,
director, or employee of any New Markets Venture
Capital company, or to become an agent or partici-
pant in the conduct of the affairs or management of
such a company, if the person—
‘‘(A) has been convicted of a felony, or any
other criminal offense involving dishonesty or
breach of trust, or
‘‘(B) has been found civilly liable in dam-
ages, or has been permanently or temporarily
enjoined by an order, judgment, or decree of a
court of competent jurisdiction, by reason of
any act or practice involving fraud, or breach of
trust; and
‘‘(2) for any person continue to serve in any of
the capacities described in paragraph (1), if—
‘‘(A) the person is convicted of a felony, or
any other criminal offense involving dishonesty
or breach of trust, or
‘‘(B) the person is found civilly liable in
damages, or is permanently or temporarily en-
joined by an order, judgment, or decree of a
court of competent jurisdiction, by reason of
any act or practice involving fraud or breach of
trust.
147
‘‘SEC. 366. REMOVAL OR SUSPENSION OF DIRECTORS OR
OFFICERS.
‘‘Using the procedures for removing or suspending a
director or an officer of a licensee set forth in section 313
(to the extent such procedures are not inconsistent with
the requirements of this part), the Administrator may re-
move or suspend any director or officer of any New Mar-
kets Venture Capital company.
‘‘SEC. 367. REGULATIONS.
‘‘The Administrator may issue such regulations as it
deems necessary to carry out the provisions of this part
in accordance with its purposes.
‘‘SEC. 368. AUTHORIZATIONS OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated for fiscal years 2001 through 2006, to remain
available until expended, the following sums:
‘‘(1) Such subsidy budget authority as may be
necessary to guarantee $150,000,000 of debentures
under this part.
‘‘(2) $30,000,000 to make grants under this
part.
‘‘(b) FUNDS COLLECTED
FOR EXAMINATIONS.—
Funds deposited under section 362(c)(2) are authorized
to be appropriated only for the costs of examinations
under section 362 and for the costs of other oversight ac-
148
tivities with respect to the program established under this
part.’’.
(c) CONFORMING AMENDMENT.—Section 20(e)(1)(C)
of the Small Business Act (15 U.S.C 631 note) is amend-
ed by inserting ‘‘part A of’’ before ‘‘title III’’.
(d) CALCULATION OF MAXIMUM AMOUNT OF SBIC
LEVERAGE.—
(1) MAXIMUM
LEVERAGE.—Section 303(b)(2)
of the Small Business Investment Act of 1958 (15
U.S.C. 683(b)(2)) is amended to read as follows:
‘‘(2) MAXIMUM LEVERAGE.—
‘‘(A) IN
GENERAL.—After March 31,
1993, the maximum amount of outstanding le-
verage made available to a company licensed
under section 301(c) of this Act shall be deter-
mined by the amount of such company’s private
capital—
‘‘(i) if the company has private capital
of not more than $15,000,000, the total
amount of leverage shall not exceed 300
percent of private capital;
‘‘(ii) if the company has private cap-
ital of more than $15,000,000 but not
more than $30,000,000, the total amount
of leverage shall not exceed $45,000,000
149
plus 200 percent of the amount of private
capital over $15,000,000; and
‘‘(iii) if the company has private cap-
ital of more than $30,000,000, the total
amount of leverage shall not exceed
$75,000,000 plus 100 percent of the
amount of private capital over $30,000,000
but 
not 
to 
exceed 
an 
additional
$15,000,000.
‘‘(B) ADJUSTMENTS.—
‘‘(i) 
IN
GENERAL.—The 
dollar
amounts in clauses (i), (ii), and (iii) of
subparagraph (A) shall be adjusted annu-
ally to reflect increases in the Consumer
Price Index established by the Bureau of
Labor Statistics of the Department of
Labor.
(ii) INITIAL ADJUSTMENTS.—The ini-
tial adjustments made under this subpara-
graph after the date of the enactment of
the Small Business Reauthorization Act of
1997 shall reflect only increases from
March 31, 1993.
‘‘(C) INVESTMENTS IN LOW-INCOME GEO-
GRAPHIC
AREAS.—In 
calculating 
the 
out-
150
standing leverage of a company for the pur-
poses of subparagraph (A), the Administrator
shall not include the amount of the cost basis
of any equity investment made by the company
in a smaller enterprise located in a low-income
geographic area (as defined in section 351), to
the extent that the total of such amounts does
not exceed 50 percent of the company’s private
capital.’’.
(2) MAXIMUM AGGREGATE LEVERAGE.—Section
303(b)(4) of the Small Business Investment Act of
1958 (15 U.S.C. 683(b)(4)) is amended by adding
at the end the following new subparagraph:
‘‘(D) INVESTMENTS IN LOW-INCOME GEO-
GRAPHIC AREAS.—In calculating the aggregate
outstanding leverage of a company for the pur-
poses of subparagraph (A), the Administrator
shall not include the amount of the cost basis
of any equity investment made by the company
in a smaller enterprise located in a low-income
geographic area (as defined in section 351), to
the extent that the total of such amounts does
not exceed 50 percent of the company’s private
capital.’’.
151
(e) BANKRUPTCY EXEMPTION FOR NEW MARKETS
VENTURE CAPITAL COMPANIES.—Section 109(b)(2) of
title 11, United States Code, is amended by inserting ‘‘a
New Markets Venture Capital company as defined in sec-
tion 351 of the Small Business Investment Act of 1958,’’
after ‘‘homestead association,’’.
(f) 
FEDERAL
SAVINGS
ASSOCIATIONS.—Section
5(c)(4) of the Home Owners’ Loan Act (12 U.S.C.
1464(c)(4)) is amended by adding at the end the fol-
lowing:
‘‘(F) NEW
MARKETS
VENTURE
CAPITAL
COMPANIES.—A Federal savings association
may invest in stock, obligations, or other securi-
ties of any New Markets Venture Capital com-
pany as defined in section 351 of the Small
Business investment Act of 1958, except that a
Federal savings association may not make any
investment under this subparagraph if its ag-
gregate outstanding investment under this sub-
paragraph would exceed 5 percent of the capital
and surplus of such savings association.’’.
SEC. 902. BUSINESSLINC GRANTS AND COOPERATIVE
AGREEMENTS.
Section 8 of the Small Business Act (15 U.S.C. 637)
is amended by adding at the end the following:
152
‘‘(n) BUSINESSLINC GRANTS
AND COOPERATIVE
AGREEMENTS.—
‘‘(1) IN
GENERAL.—In accordance with this
subsection, the Administrator may make grants to
and enter into cooperative agreements with any coa-
lition of private entities, public entities, or any com-
bination of private and public entities—
‘‘(A) to expand business-to-business rela-
tionships between large and small businesses;
and
‘‘(B) to provide businesses, directly or indi-
rectly, with online information and a database
of companies that are interested in mentor-
prote´ge´ programs or community-based, state-
wide, or local business development programs.
‘‘(2) MATCHING
REQUIREMENT.—Subject to
subparagraph (B), the Administrator may make a
grant to a coalition under paragraph (1) only if the
coalition provides for activities described in para-
graph (1)(A) or (1)(B) an amount, either in kind or
in cash, equal to the grant amount.
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection $6,600,000, to remain available until
153
expended, for each of fiscal years 2001 through
2006.’’.
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