Union Calendar No. 120
106TH CONGRESS
1ST SESSION
H. R. 1568
[Report No. 106–206, Part I]
A BILL
To provide technical, financial, and procurement as-
sistance to veteran owned small businesses, and
for other purposes.
JUNE 29, 1999
Reported from the Committee on Small Business with an
amendment
JUNE 29, 1999
Referral to the Committee on Veterans’ Affairs extended
for a period ending not later than June 29, 1999
JUNE 29, 1999
The Committee on Veterans’ Affairs discharged; com-
mitted to the Committee of the Whole House on the
State of the Union and ordered to be printed
IB
Union Calendar No. 120
106TH CONGRESS
1ST SESSION
H. R. 1568
[Report No. 106–206, Part I]
To provide technical, financial, and procurement assistance to veteran owned
small businesses, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 27, 1999
Mr. TALENT (for himself, Mr. STUMP, Mrs. MCCARTHY of New York, Mr.
EVANS, Mr. QUINN, Mr. PHELPS, Mr. MORAN of Kansas, Mr. FILNER,
Mr. BARTLETT of Maryland, Mrs. KELLY, and Mr. PASCRELL) intro-
duced the following bill; which was referred to the Committee on Small
Business, and in addition to the Committee on Veterans’ Affairs, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
JUNE 29, 1999
Additional sponsors: Ms. BROWN of Florida, Mr. ROMERO-BARCELO´, Mrs.
CHRISTENSEN, Mr. LEACH, Mr. SHOWS, Ms. MILLENDER-MCDONALD,
Mr. SPENCE, Ms. WOOLSEY, Mr. EWING, Mrs. THURMAN, Mrs. EMER-
SON, Ms. CARSON, Mr. FROST, Ms. DANNER, Mr. ENGLISH, Mr. RA-
HALL, Mr. GUTIERREZ, Mr. STUPAK, Mr. LIPINSKI, Ms. BERKLEY, Mr.
COOK, Mrs. BONO, Mr. SWEENEY, Mr. LOBIONDO, Mr. SMITH of Wash-
ington, Mr. ENGEL, Mr. COOKSEY, Mr. BROWN of Ohio, Mr. BISHOP,
Mr. REYES, Mr. SANDERS, Mr. BUYER, Mr. BAKER, Mr. LAHOOD, Mr.
PETERSON of Minnesota, Mr. PASTOR, Mr. GREEN of Texas, Mr. COM-
BEST, Mr. CUMMINGS, Mrs. MYRICK, Mr. FORBES, Mr. HILL of Mon-
tana, Mr. DOOLEY of California, Mr. DEMINT, Mrs. NAPOLITANO, Mr.
SANDLIN, Mr. LEWIS of California, Mr. LAZIO, Mr. LAMPSON, Mrs.
MORELLA, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. HULSHOF, Ms.
KAPTUR, Mr. HAYWORTH, Ms. LEE, Mr. HUNTER, and Mr. UNDERWOOD
JUNE 29, 1999
Reported from the Committee on Small Business with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
JUNE 29, 1999
Referral to the Committee on Veterans’ Affairs extended for a period ending
not later than June 29, 1999
JUNE 29, 1999
The Committee on Veterans’ Affairs discharged; committed to the Committee
of the Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on April 27, 1999]
A BILL
To provide technical, financial, and procurement assistance
to veteran owned small businesses, 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.
This Act may be cited as the ‘‘Veterans Entrepreneur-
ship and Small Business Development Act of 1999’’.
SEC. 2. TABLE OF CONTENTS.
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—GENERAL PROVISIONS
Sec. 101. Findings.
Sec. 102. Purpose.
Sec. 103. Definitions.
TITLE II—VETERANS BUSINESS DEVELOPMENT
Sec. 201. Veterans business development in the Small Business Administration.
Sec. 202. National Veterans Business Development Corporation.
Sec. 203. Advisory Committee on Veterans Business Affairs.
TITLE III—TECHNICAL ASSISTANCE
Sec. 301. SCORE program.
Sec. 302. Entrepreneurial assistance.
Sec. 303. Business development and management assistance for military reserv-
ists’ small businesses.
TITLE IV—FINANCIAL ASSISTANCE
Sec. 401. General business loan program.
Sec. 402. Assistance to active duty military reservists.
Sec. 403. Microloan program.
Sec. 404. Delta loan program.
Sec. 405. State development company program.
TITLE V—PROCUREMENT ASSISTANCE
Sec. 501. Subcontracting.
Sec. 502. Participation in Federal procurement.
TITLE VI—REPORTS AND DATA COLLECTION
Sec. 601. Reporting requirements.
Sec. 602. Report on small business and competition.
Sec. 603. Annual report of the Administrator.
Sec. 604. Data and information collection.
TITLE VII—MISCELLANEOUS PROVISIONS
Sec. 701. Administrator’s order.
Sec. 702. Small Business Administration Office of Advocacy.
Sec. 703. Study of fixed-asset small business loans.
TITLE I—GENERAL PROVISIONS
SEC. 101. FINDINGS.
Congress finds the following:
(1) Veterans of the United States Armed Forces
have been and continue to be vital to the small busi-
ness enterprises of the United States.
(2) In serving the United States, veterans often
faced great risks to preserve the American dream of
freedom and prosperity.
(3) The United States has done too little to assist
veterans, particularly service-disabled veterans, in
playing a greater role in the economy of the United
States by forming and expanding small business en-
terprises.
(4) Medical advances and new medical tech-
nologies have made it possible for service-disabled vet-
erans to play a much more active role in the forma-
tion and expansion of small business enterprises in
the United States.
(5) The United States must provide additional
assistance and support to veterans to better equip
them to form and expand small business enterprises,
thereby enabling them to realize the American dream
that they fought to protect.
SEC. 102. PURPOSE.
The purpose of this Act is to expand existing and es-
tablish new assistance programs for veterans who own or
operate small businesses. This Act accomplishes this purpose
by—
(1) expanding the eligibility for certain small
business assistance programs to include veterans;
(2) directing certain departments and agencies of
the United States to take actions that enhance small
business assistance to veterans; and
(3) establishing new institutions to provide small
business assistance to veterans or to support the insti-
tutions that provide such assistance.
‘‘(3) SMALL
BUSINESS
CONCERN
OWNED
AND
CONTROLLED BY VETERANS.—The term ‘small busi-
ness concern owned and controlled by veterans’ means
a small business concern—
‘‘(A) not less than 51 percent of which is
owned by 1 or more veterans or, in the case of
any publicly owned business, not less than 51
percent of the stock of which is owned by 1 or
more veterans; and
‘‘(B) the management and daily business
operations of which are controlled by 1 or more
veterans.
‘‘(4) VETERAN.—The term ‘veteran’ has the
meaning given the term in section 101(2) of title 38,
United States Code.’’.
(b) APPLICABILITY TO THIS ACT.—In this Act, the
definitions contained in section 3(q) of the Small Business
Act, as added by this section, apply.
TITLE II—VETERANS BUSINESS
DEVELOPMENT
SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE
SMALL BUSINESS ADMINISTRATION.
(a) IN GENERAL.—Section 4(b)(1) of the Small Busi-
ness Act (15 U.S.C. 633(b)(1)) is amended—
(1) in the 5th sentence, by striking ‘‘four Asso-
ciate Administrators’’ and inserting ‘‘five Associate
Administrators’’; and
(2) by inserting after the 5th sentence the fol-
lowing: ‘‘One such Associate Administrator shall be
the Associate Administrator for Veterans Business De-
velopment, who shall administer the Office of Veterans
Business Development established under section 32.’’.
(b) OFFICE OF VETERANS BUSINESS DEVELOPMENT;
ASSOCIATE ADMINISTRATOR.—The Small Business Act (15
U.S.C. 631 et seq.) is further amended—
(1) by redesignating section 32 as section 34;
and
(2) by inserting after section 31 the following:
‘‘SEC. 32. VETERANS PROGRAMS.
‘‘(a) OFFICE
OF VETERANS BUSINESS DEVELOP-
MENT.—There is established in the Administration an Of-
fice of Veterans Business Development, which shall be ad-
ministered by the Associate Administrator for Veterans
Business Development (in this section referred to as the ‘As-
sociate Administrator’) appointed under section 4(b)(1).
‘‘(b) ASSOCIATE
ADMINISTRATOR
FOR
VETERANS
BUSINESS
DEVELOPMENT.—The 
Associate
Administrator—
‘‘(1) shall be an appointee in the Senior Execu-
tive Service;
‘‘(2) shall be responsible for the formulation, exe-
cution, and promotion of policies and programs of the
Administration that provide assistance to small busi-
ness concerns owned and controlled by veterans and
small business concerns owned and controlled by serv-
ice-disabled veterans. The Associate Administrator
shall act as an ombudsman for full consideration of
veterans in all programs of the Administration; and
‘‘(3) shall report to and be responsible directly to
the Administrator.’’.
SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT
CORPORATION.
The Small Business Act (15 U.S.C. 631 et seq.) is fur-
ther amended by adding after section 32 (as added by this
Act) the following:
‘‘SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT
CORPORATION.
‘‘(a) ESTABLISHMENT.—There is established a feder-
ally chartered corporation to be known as the National Vet-
erans Business Development Corporation (in this section re-
ferred to as the ‘Corporation’) which shall be incorporated
under the laws of the District of Columbia and which shall
have the powers granted in this section.
‘‘(b) PURPOSES OF THE CORPORATION.—The purposes
of the Corporation shall be—
‘‘(1) to expand the provision of and improve ac-
cess to technical assistance regarding entrepreneur-
ship for the Nation’s veterans; and
‘‘(2) to assist veterans, including service-disabled
veterans, with the formation and expansion of small
business concerns by working with and organizing
public and private resources, including those of the
Small Business Administration, the Department of
Veterans Affairs, the Department of Labor, the De-
partment of Commerce, the Department of Defense,
the Service Corps of Retired Executives (described in
section 8(b)(1)(B) of this Act), the Small Business
Development Centers (described in section 21 of this
Act), and the business development staffs of each de-
partment and agency of the United States.
‘‘(c) BOARD OF DIRECTORS.—
‘‘(1) IN GENERAL.—The management of the Cor-
poration shall be vested in a Board of Directors com-
posed of 9 voting members and 3 nonvoting ex officio
members.
‘‘(2) APPOINTMENT OF VOTING MEMBERS.—The
President shall appoint United States citizens to be
voting members of the Board of Directors as follows:
‘‘(A) 1 from a list of individuals nominated
by the chairman of the Committee on Small
Business of the House of Representatives.
‘‘(B) 1 from a list of individuals nominated
by the chairman of the Committee on Small
Business of the Senate.
‘‘(C) 1 from a list of individuals nominated
by the ranking minority member of the Com-
mittee on Small Business of the House of Rep-
resentatives.
‘‘(D) 1 from a list of individuals nominated
by the ranking minority members of the Com-
mittee on Small Business of the Senate.
‘‘(E) 1 from a list of individuals nominated
by the chairman of the Committee on Veterans’
Affairs of the House of Representatives.
‘‘(F) 1 from a list of individuals nominated
by the chairman of the Committee on Veterans’
Affairs of the Senate.
‘‘(G) 1 from a list of individuals nominated
by the ranking minority member of the Com-
mittee on Veterans’ Affairs of the House of Rep-
resentatives.
‘‘(H) 1 from a list of individuals nominated
the ranking minority member of the Committee
on Veterans’ Affairs of the Senate.
‘‘(I) 1 of the President’s own choosing.
‘‘(3) EX OFFICIO MEMBERS.—The Administrator
of the Small Business Administration, the Secretary
of Defense, and the Secretary of Veterans Affairs shall
serve as the nonvoting ex officio members of the Board
of Directors.
‘‘(4) CHAIRPERSON.—The members of the Board
of Directors appointed under paragraph (2) shall
elect one such member to serve as chairperson of the
Board of Directors for a term of 2 years.
‘‘(5) TERMS OF APPOINTED MEMBERS.—
‘‘(A) IN
GENERAL.—Each member of the
Board of Directors appointed under paragraph
(2) shall serve a term of 6 years, except as pro-
vided in subparagraph (B).
‘‘(B) TERMS OF INITIAL APPOINTEES.—As
designated by the President at the time of ap-
pointment, of the members first appointed—
‘‘(i) 3 shall be for a term of 2 years;
and
‘‘(ii) 3 shall be for a term of 4 years.
‘‘(C) UNEXPIRED TERMS.—Any member of
the Board of Directors appointed to fill a va-
cancy occurring before the expiration of the term
for which the member’s predecessor was ap-
pointed shall be appointed only for the remain-
der of the term. A member may serve after the
expiration of that member’s term until a suc-
cessor has taken office.
‘‘(6) VACANCIES.—Any vacancy on the Board of
Directors shall be filled in the manner in which the
original appointment was made. In the case of a va-
cancy in the office of the Administrator of the Small
Business Administration or the Secretary of Veterans
Affairs, and pending the appointment of a successor,
an acting appointee for such vacancy may serve as
an ex officio member.
‘‘(7) INELIGIBILITY
FOR
OTHER
OFFICES.—No
voting member of the Board of Directors may be an
officer or employee of the United States while serving
as a member of the Board of Directors or during the
2-year period preceding such service.
‘‘(8) IMPARTIALITY AND NONDISCRIMINATION.—
The Board of Directors shall administer the affairs of
the Corporation fairly and impartially and without
discrimination.
‘‘(9) OBLIGATIONS AND EXPENSES.—The Board
of Directors shall prescribe the manner in which the
obligations of the Corporation may be incurred and
in which its expenses shall be allowed and paid.
‘‘(10) QUORUM.—5 voting members of the Board
of Directors shall constitute a quorum, but a lesser
number may hold hearings.
‘‘(d) CORPORATE POWERS.—On October 1, 1999, the
Corporation shall become a body corporate and as such
shall have the authority to do the following:
‘‘(1) To adopt and use a corporate seal.
‘‘(2) To have succession until dissolved by an Act
of Congress.
‘‘(3) To make contracts or grants.
‘‘(4) To sue and be sued, and to file and defend
against lawsuits in State or Federal court.
‘‘(5) To appoint, through the actions of its Board
of Directors, officers and employees of the Corpora-
tion, to define their duties and responsibilities, fix
their compensations, and to dismiss at will such offi-
cers or employees.
‘‘(6) To prescribe, through the actions of its
Board of Directors, bylaws not inconsistent with Fed-
eral law and the law of the State of incorporation,
regulating the manner in which its general business
may be conducted and the manner in which the privi-
leges granted to it by law may be exercised.
‘‘(7) To exercise, through the actions of its Board
of Directors or duly authorized officers, all powers
specifically granted by the provisions of this section,
and such incidental powers as shall be necessary.
‘‘(8) To solicit, receive, and disburse funds from
private, Federal, State and local organizations.
‘‘(9) To accept and employ or dispose of in fur-
therance of the purposes of this section any money or
property, real, personal, or mixed, tangible or intan-
gible, received by gift, devise, bequest, or otherwise.
‘‘(10) To accept voluntary and uncompensated
services.
‘‘(e) CORPORATE FUNDS.—
‘‘(1) DEPOSIT OF FUNDS.—The Board of Direc-
tors shall deposit all funds of the Corporation in fed-
erally chartered and insured depository institutions
until such funds are disbursed under paragraph (2).
‘‘(2) DISBURSEMENT OF FUNDS.—Funds of the
Corporation may be disbursed only for purposes that
are—
‘‘(A) approved by the Board of Directors by
a recorded vote with a quorum present; and
‘‘(B) in accordance with the purposes of the
Corporation as specified in subsection (b).
‘‘(f) NETWORK
OF INFORMATION
AND ASSISTANCE
CENTERS.—In carrying out the purpose described in sub-
section (b), the Corporation shall establish and maintain
a network of information and assistance centers for use by
veterans and the public.
‘‘(g) ANNUAL REPORT.—On or before October 1 of each
year, the Board of Directors shall transmit a report to the
President and Congress describing the activities and accom-
plishments of the Corporation for the preceding year and
the Corporation’s findings regarding the efforts of Federal,
State and private organizations to assist veterans in the
formation and expansion of small business concerns.
‘‘(h) ASSUMPTION
OF DUTIES
OF ADVISORY COM-
MITTEE.—On October 1, 2004, the Corporation established
under this section shall assume the duties, responsibilities,
and authority of the Advisory Committee on Veterans Af-
fairs established under section 203 of this Act.
‘‘(i) USE OF MAILS.—The Corporation may use the
United States mails in the same manner and under the
same conditions as the departments and agencies of the
United States.
‘‘(j) 
PROFESSIONAL
CERTIFICATION
ADVISORY
BOARD.—
‘‘(1) IN GENERAL.—Acting through the Board of
Directors, the Corporation shall establish a Profes-
sional Certification Advisory Board to create uniform
guidelines and standards for the professional certifi-
cation of members of the Armed Services to aid in
their efficient and orderly transition to civilian occu-
pations and professions and to remove potential bar-
riers in the areas of licensure and certification.
‘‘(2) MEMBERSHIP.—The members of the Advi-
sory Board shall serve without compensation, shall
meet in the District of Columbia no less than quar-
terly, and shall be appointed by the Board of Direc-
tors as follows:
‘‘(A) PRIVATE
SECTOR
MEMBERS.—The
Corporation shall appoint not less than 7 mem-
bers for terms of 2 years to represent private sec-
tor organizations and associations, including the
American Association of Community Colleges,
the Society for Human Resource Managers, the
Coalition for Professional Certification, and the
Council on Licensure and Enforcement.
‘‘(B) PUBLIC SECTOR MEMBERS.—The Cor-
poration shall invite public sector members to
serve at the discretion of their departments or
agencies and shall—
‘‘(i) encourage the participation of the
Under Secretary of Defense for Personnel
and Readiness;
‘‘(ii) encourage the participation of 2
officers from each branch of the Armed
Forces to represent the Training Commands
of their branch; and
‘‘(iii) seek the participation and guid-
ance of the Assistant Secretary of Labor for
Veterans’ Employment and Training.
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to the Corporation to carry out this sec-
tion the following amounts:
‘‘(A) $2,000,000 for fiscal year 2000;
‘‘(B) $4,000,000 for fiscal year 2001;
‘‘(C) $4,000,000 for fiscal year 2002; and
‘‘(D) $2,000,000 for fiscal year 2003.
‘‘(2) PRIVATIZATION.—The Corporation shall in-
stitute and implement a plan to raise private funds
and become a self-sustaining corporation.’’.
SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS
AFFAIRS.
(a) IN GENERAL.—There is established an advisory
committee to be known as the ‘‘Advisory Committee on Vet-
erans Business Affairs’’ (in this section referred to as the
‘‘Committee’’), which shall serve as an independent source
of advice and policy recommendations to—
(1) the Administrator of the Small Business Ad-
ministration (in this section referred to as the ‘‘Ad-
ministrator’’);
(2) the Associate Administrator for Veterans
Business Development of the Small Business Admin-
istration;
(3) Congress;
(4) the President; and
(5) other United States policymakers.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Committee shall be com-
posed of 15 members, of whom—
(A) 8 shall be veterans who are owners of
small business concerns (within the meaning of
the term under section 3 of the Small Business
Act (15 U.S.C. 632)); and
(B) 7 shall be representatives of veterans or-
ganizations.
(2) APPOINTMENT.—
(A) IN
GENERAL.—The members of the
Committee shall be appointed by the Adminis-
trator in accordance with this section.
(B) INITIAL
APPOINTMENTS.—Not later
than 90 days after the date of enactment of this
Act, the Administrator shall appoint the initial
members of the Committee.
(3) POLITICAL AFFILIATION.—Not more than 8
members of the Committee shall be of the same polit-
ical party as the President.
(4) PROHIBITION ON FEDERAL EMPLOYMENT.—
(A) IN GENERAL.—Except as provided in
subsection (B), no member of the Committee may
serve as an officer or employee of the United
States.
(B) EXCEPTION.—A member of the Com-
mittee who accepts a position as an officer or
employee of the United States after the date of
the member’s appointment to the Committee may
continue to serve on the Committee for not more
than 30 days after such acceptance.
(5) TERM OF SERVICE.—
(A) IN GENERAL.—Subject to subparagraph
(B), the term of service of each member of the
Committee shall be 3 years.
(B) TERMS
OF
INITIAL
APPOINTEES.—As
designated by the Administrator at the time of
appointment, of the members first appointed—
(i) 6 shall be appointed for a term of
4 years; and
(ii) 5 shall be appointed for a term of
5 years.
(6) VACANCIES.—The Administrator shall fill
any vacancies on the membership of the Committee
not later than 30 days after the date on which such
vacancy occurs.
(7) CHAIRPERSON.—
(A) IN
GENERAL.—The members of the
Committee shall elect one of the members to be
Chairperson of the Committee.
(B) VACANCIES
IN
OFFICE
OF
CHAIR-
PERSON.—Any vacancy in the office of the
Chairperson of the Committee shall be filled by
the Committee at the first meeting of the Com-
mittee following the date on which the vacancy
occurs.
(c) DUTIES.—The duties of the Committee shall be the
following:
(1) Review, coordinate, and monitor plans and
programs developed in the public and private sectors,
that affect the ability of small business concerns
owned and controlled by veterans to obtain capital
and credit and to access markets.
(2) Promote the collection of business informa-
tion and survey data as they relate to veterans and
small business concerns owned and controlled by vet-
erans.
(3) Monitor and promote plans, programs, and
operations of the departments and agencies of the
United States that may contribute to the formation
and growth of small business concerns owned and
controlled by veterans.
(4) Develop and promote initiatives, policies,
programs, and plans designed to foster small business
concerns owned and controlled by veterans.
(5) In cooperation with the National Veterans
Business Development Corporation, develop a com-
prehensive plan, to be updated annually, for joint
public-private sector efforts to facilitate growth and
development of small business concerns owned and
controlled by veterans.
(d) POWERS.—
(1) HEARINGS.—Subject to subsection (e), the
Committee may hold such hearings, sit and act at
such times and places, take such testimony, and re-
ceive such evidence as the Committee considers advis-
able to carry out its duties.
(2) INFORMATION FROM FEDERAL AGENCIES.—
Upon request of the Chairperson of the Committee, the
head of any department or agency of the United
States shall furnish such information to the Com-
mittee as the Committee considers to be necessary to
carry out its duties.
(3) USE OF MAILS.—The Committee may use the
United States mails in the same manner and under
the same conditions as other departments and agen-
cies of the United States.
(4) GIFTS.—The Committee may accept, use,
and dispose of gifts or donations of services or prop-
erty.
(e) MEETINGS.—
(1) IN GENERAL.—The Committee shall meet, not
less than three times per year, at the call of the
Chairperson or at the request of the Administrator.
(2) LOCATION.—Each meeting of the full Com-
mittee shall be held at the headquarters of the Small
Business Administration located in Washington, Dis-
trict of Columbia. The Administrator shall provide
suitable meeting facilities and such administrative
support as may be necessary for each full meeting of
the Committee.
(3) TASK GROUPS.—The Committee may, from
time to time, establish temporary task groups as may
be necessary in order to carry out its duties.
(f) COMPENSATION AND EXPENSES.—
(1) NO COMPENSATION.—Members of the Com-
mittee shall serve without compensation for their serv-
ice to the Committee.
(2) EXPENSES.—The members of the Committee
shall be reimbursed for travel and subsistence expenses
in accordance with section 5703 of title 5, United
States Code.
(g) REPORT.—Not later than 30 days after the end of
each fiscal year beginning after the date of enactment of
this section, the Committee shall transmit to Congress and
the President a report describing the activities of the Com-
mittee and any recommendations developed by the Com-
mittee for the promotion of small business concerns owned
and controlled by veterans.
(h) TERMINATION.—The Committee shall terminate its
business on September 30, 2004.
TITLE III—TECHNICAL
ASSISTANCE
SEC. 301. SCORE PROGRAM.
(a) IN GENERAL.—The Administrator of the Small
Business Administration shall enter into a memorandum
of understanding with the Service Core of Retired Execu-
tives (described in section 8(b)(1)(B) of the Small Business
Act (15 U.S.C. 637(b)(1)(B)) and in this section referred
to as ‘‘SCORE’’) to provide for the following:
(1) The appointment by SCORE in its national
office of an individual to act as National Veterans
Business Coordinator, whose duties shall relate exclu-
sively to veterans business matters, and who shall be
responsible for the establishment and administration
of a program to coordinate counseling and training
regarding entrepreneurship to veterans through the
chapters of SCORE throughout the United States.
(2) The assistance of SCORE in the establishing
and maintaining a toll-free telephone number and an
Internet website to provide access for veterans to in-
formation about the counseling and training regard-
ing entrepreneurship available to veterans through
SCORE.
(3) The collection of statistics concerning services
provided by SCORE to veterans, including service-
disabled veterans, for inclusion in each annual report
published 
by 
the 
Administrator 
under 
section
4(b)(2)(B) of the Small Business Act (15 U.S.C.
633(b)(2)(B)).
(b) RESOURCES.—The Administrator shall provide to
SCORE such resources as the Administrator determines
necessary for SCORE to carry out the requirements of the
memorandum of understanding specified in paragraph (1).
SEC. 302. ENTREPRENEURIAL ASSISTANCE.
Not later than 180 days after the date of enactment
of this Act, the Secretary of Veterans Affairs, the Adminis-
trator of the Small Business Administration, and the head
of the association formed pursuant to section 21(a)(3)(A)
of the Small Business Act (15 U.S.C. 648(a)(3)(A)) shall
enter into a memorandum of understanding with respect
to entrepreneurial assistance to veterans, including service-
disabled veterans, through Small Business Development
Centers (described in section 21 of the Small Business Act
(15 U.S.C. 648)) and facilities of the Department of Vet-
erans Affairs. Such assistance shall include the following:
(1) Conducting of studies and research, and the
distribution of information generated by such studies
and research, on the formation, management, financ-
ing, marketing, and operation of small business con-
cerns by veterans.
(2) Provision of training and counseling to vet-
erans concerning the formation, management, financ-
ing, marketing, and operation of small business con-
cerns.
(3) Provision of management and technical as-
sistance to the owners and operators of small business
concerns regarding international markets, the pro-
motion of exports, and the transfer of technology.
(4) Provision of assistance and information to
veterans regarding procurement opportunities with
Federal, State, and local agencies, especially such
agencies funded in whole or in part with Federal
funds.
(5) Establishment of an information clearing-
house to collect and distribute information, including
by electronic means, on the assistance programs of
Federal, State, and local governments, and of the pri-
vate sector, including information on office locations,
key personnel, telephone numbers, mail and electronic
addresses, and contracting and subcontracting oppor-
tunities.
(6) Provision of Internet or other distance learn-
ing academic instruction for veterans in business sub-
jects, including accounting, marketing, and business
fundamentals.
(7) Compilation of a list of small business con-
cerns owned and controlled by service-disabled vet-
erans that provide products or services that could be
procured by the United States and delivery of such
list to each department and agency of the United
States. Such list shall be delivered in hard copy and
electronic form and shall include the name and ad-
dress of each such small business concern and the
products or services that it provides.
SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT AS-
SISTANCE FOR MILITARY RESERVISTS’ SMALL
BUSINESSES.
(a) IN GENERAL.—Section 8 of the Small Business Act
(15 U.S.C. 637) is amended by adding at the end the fol-
lowing:
‘‘(l) MANAGEMENT ASSISTANCE
FOR SMALL BUSI-
NESSES AFFECTED BY MILITARY OPERATIONS.—The Ad-
ministration shall utilize, as appropriate, its entrepre-
neurial development and management assistance programs,
including programs involving State or private sector part-
ners, to provide business counseling and training to any
small business concern adversely affected by the deployment
of units of the Armed Forces of the United States in support
of a period of military conflict (as defined in section
7(n)(1)).’’.
(b) ENHANCED PUBLICITY DURING OPERATION AL-
LIED FORCE.—For the duration of Operation Allied Force
and for 120 days thereafter, the Administration shall en-
hance its publicity of the availability of assistance provided
pursuant to the amendment made by this section, including
information regarding the appropriate local office at which
affected small businesses may seek such assistance.
(c) GUIDELINES.—Not later than 30 days after the
date of enactment of this section, the Administrator of the
Small Business Administration shall issue such guidelines
as the Administrator determines to be necessary to carry
out this section and the amendment made by this section.
TITLE IV—FINANCIAL
ASSISTANCE
SEC. 401. GENERAL BUSINESS LOAN PROGRAM.
(a) DEFINITION OF HANDICAPPED INDIVIDUAL.—Sec-
tion 3(f) of the Small Business Act (15 U.S.C. 632(f)) is
amended to read as follows:
‘‘(f) For purposes of section 7 of this Act, the term
‘handicapped individual’ means an individual—
‘‘(1) who has a physical, mental, or emotional
impairment, defect, ailment, disease, or disability of
a permanent nature which in any way limits the se-
lection of any type of employment for which the per-
son would otherwise be qualified or qualifiable; or
‘‘(2) who is a service-disabled veteran.’’.
(b) AUTHORIZATION
TO
MAKE
LOANS.—Section
7(a)(10) of the Small Business Act (15 U.S.C. 636(a)(10))
is amended—
(1) by inserting ‘‘guaranteed’’ after ‘‘provide’’;
and
(2) by inserting, ‘‘, including service-disabled
veterans,’’ after ‘‘handicapped individual’’.
SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERV-
ISTS.
(a) REPAYMENT DEFERRAL FOR ACTIVE DUTY RE-
SERVISTS.—Section 7 of the Small Business Act (15 U.S.C.
636) is amended by adding at the end the following:
‘‘(n) REPAYMENT DEFERRED FOR ACTIVE DUTY RE-
SERVISTS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) ELIGIBLE RESERVIST.—The term ‘eli-
gible reservist’ means a member of a reserve com-
ponent of the Armed Forces ordered to active
duty during a period of military conflict.
‘‘(B) ESSENTIAL EMPLOYEE.—The term ‘es-
sential employee’ means an individual who is
employed by a small business concern and whose
managerial or technical expertise is critical to
the successful day-to-day operations of that small
business concern.
‘‘(C) PERIOD OF MILITARY CONFLICT.—The
term ‘period of military conflict’ means—
‘‘(i) a period of war declared by Con-
gress;
‘‘(ii) a period of national emergency
declared by Congress or by the President; or
‘‘(iii) a period of a contingency oper-
ation, as defined in section 101(a) of title
10, United States Code.
‘‘(D) QUALIFIED
BORROWER.—The term
‘qualified borrower’ means—
‘‘(i) an individual who is an eligible
reservist and who received a direct loan
under subsection (a) or (b) before being or-
dered to active duty; or
‘‘(ii) a small business concern that re-
ceived a direct loan under subsection (a) or
(b) before an eligible reservist, who is an es-
sential employee, was ordered to active
duty.
‘‘(2) DEFERRAL OF DIRECT LOANS.—
‘‘(A) IN
GENERAL.—The Administration
shall, upon written request, defer repayment of
principal and interest due on a direct loan made
under subsection (a) or (b), if such loan was in-
curred by a qualified borrower.
‘‘(B) PERIOD OF DEFERRAL.—The period of
deferral for repayment under this paragraph
shall begin on the date on which the eligible re-
servist is ordered to active duty and shall termi-
nate on the date that is 180 days after the date
such eligible reservist is discharged or released
from active duty.
‘‘(C) INTEREST RATE REDUCTION DURING
DEFERRAL.—Notwithstanding any other provi-
sion of law, during the period of deferral de-
scribed in subparagraph (B), the Administration
may, in its discretion, reduce the interest rate on
any loan qualifying for a deferral under this
paragraph.
‘‘(3) DEFERRAL
OF
LOAN
GUARANTEES
AND
OTHER FINANCINGS.—The Administration shall—
‘‘(A) encourage intermediaries participating
in the program under subsection (m) to defer re-
payment of a loan made with proceeds made
available under that subsection, if such loan was
incurred by a small business concern that is eli-
gible to apply for assistance under subsection
(b)(3); and
‘‘(B) not later than 30 days after the date
of enactment of this subsection, establish guide-
lines to—
‘‘(i) encourage lenders and other inter-
mediaries to defer repayment of, or provide
other relief relating to, loan guarantees
under subsection (a) and financings under
section 504 of the Small Business Invest-
ment Act of 1958 that were incurred by
small business concerns that are eligible to
apply for assistance under subsection (b)(3),
and loan guarantees provided under sub-
section (m) if the intermediary provides re-
lief to a small business concern under this
paragraph; and
‘‘(ii) implement a program to provide
for the deferral of repayment or other relief
to any intermediary providing relief to a
small business borrower under this para-
graph.’’.
(b) DISASTER LOAN ASSISTANCE FOR MILITARY RE-
SERVISTS’ SMALL BUSINESSES.—Section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) is amended by inserting
after the undesignated paragraph that begins with ‘‘Pro-
vided, That no loan’’, the following:
‘‘(3)(A) In this paragraph—
‘‘(i) the term ‘essential employee’ means an
individual who is employed by a small business
concern and whose managerial or technical ex-
pertise is critical to the successful day-to-day op-
erations of that small business concern;
‘‘(ii) the term ‘period of military conflict’
has the meaning given the term in subsection
(n)(1); and
‘‘(iii) the term ‘substantial economic injury’
means an economic harm to a business concern
that results in the inability of the business
concern—
‘‘(I) to meet its obligations as they ma-
ture;
‘‘(II) to pay its ordinary and nec-
essary operating expenses; or
‘‘(III) to market, produce, or provide a
product or service ordinarily marketed, pro-
duced, or provided by the business concern.
‘‘(B) The Administration may make such dis-
aster loans (either directly or in cooperation with
banks or other lending institutions through agree-
ments to participate on an immediate or deferred
basis) to assist a small business concern that has suf-
fered or that is likely to suffer substantial economic
injury as the result of an essential employee of such
small business concern being ordered to active mili-
tary duty during a period of military conflict.
‘‘(C) A small business concern described in sub-
paragraph (B) shall be eligible to apply for assistance
under this paragraph during the period beginning on
the date on which the essential employee is ordered
to active duty and ending on the date that is 90 days
after the date on which such essential employee is dis-
charged or released from active duty.
‘‘(D) Any loan or guarantee extended pursuant
to this paragraph shall be made at the same interest
rate as economic injury loans under paragraph (2).
‘‘(E) No loan may be made under this para-
graph, either directly or in cooperation with banks or
other lending institutions through agreements to par-
ticipate on an immediate or deferred basis, if the
total amount outstanding and committed to the bor-
rower under this subsection would exceed $1,500,000,
unless such applicant constitutes a major source of
employment in its surrounding area, as determined
by the Administration, in which case the Administra-
tion, in its discretion, may waive the $1,500,000 lim-
itation.
‘‘(F) For purposes of assistance under this para-
graph, no declaration of a disaster area shall be re-
quired.’’.
(c) ENHANCED PUBLICITY DURING OPERATION AL-
LIED FORCE.—For the duration of Operation Allied Force
and for 120 days thereafter, the Administration shall en-
hance its publicity of the availability of assistance provided
pursuant to the amendments made by this section, includ-
ing information regarding the appropriate local office at
which affected small businesses may seek such assistance.
(d) GUIDELINES.—Not later than 30 days after the
date of enactment of this section, the Administrator of the
Small Business Administration shall issue such guidelines
as the Administrator determines to be necessary to carry
out this section and the amendments made by this section.
(e) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
take effect on the date of the enactment of this section.
(2) DISASTER LOANS.—The amendments made
by subsection (b) shall apply to economic injury suf-
fered or likely to be suffered as the result of a period
of military conflict occurring or ending on or after
March 24, 1999.
SEC. 403. MICROLOAN PROGRAM.
Section 7(m)(1)(A)(i) of the Small Business Act (15
U.S.C. 636(m)(1)(A)(i)) is amended by inserting ‘‘veteran
(within the meaning of such term under section 3(q)),’’ after
‘‘low-income,’’.
SEC. 404. DELTA LOAN PROGRAM.
Section 7(a)(21)(A) Small Business Act (15 U.S.C.
636(a)(21)(A)) is amended in subclause (ii) by inserting
‘‘or a veteran’’ after ‘‘qualified individual’’.
SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.
Section 501(d)(3) of the Small Business Investment
Act (15 U.S.C. 695(d)(3)) is amended—
(1) by redesignating subparagraphs (E), (F),
and (G) as subparagraphs (F), (G), and (H), respec-
tively; and
(2) by inserting after subparagraph (D) the fol-
lowing:
‘‘(E) expansion of small business concerns
owned and controlled by veterans, as defined in
section 3(q) of the Small Business Act (15 U.S.C.
632(q)), especially service-disabled veterans, as
defined in such section 3(q),’’.
TITLE V—PROCUREMENT
ASSISTANCE
SEC. 501. SUBCONTRACTING.
(a) STATEMENT OF POLICY.—Section 8(d)(1) of the
Small Business Act (15 U.S.C. 637(d)(1)) is amended by
inserting ‘‘small business concerns owned and controlled by
service-disabled veterans,’’ after ‘‘small business concerns,’’
the first place it appears in the first and second sentences.
(b) CONTRACT CLAUSE.—The contract clause specified
in section 8(d)(3) of the Small Business Act (15 U.S.C.
637(d)(3)) is amended as follows:
(1) Subparagraph (A) of such clause is amended
by inserting ‘‘small business concerns owned and con-
trolled by veterans,’’ after ‘‘small business concerns,’’
the first place it appears in the first and second sen-
tences.
(2) Subparagraphs (E) and (F) of such clause
are redesignated as subparagraphs (F) and (G), re-
spectively, and the following new subparagraph is in-
serted after subparagraph (D) of such clause:
‘‘(E) The term ‘small business concern owned
and controlled by veterans’ shall mean a small busi-
ness concern—
‘‘(i) which is at least 51 per centum owned
by one or more eligible veterans; or, in the case
of any publicly owned business, at least 51 per
centum of the stock of which is owned by one or
more veterans; and
‘‘(ii) whose management and daily business
operations are controlled by such veterans. The
contractor shall treat as veterans all individuals
who are veterans within the meaning of the term
under section 3(q) of the Small Business Act.’’.
(3) Subparagraph (F) of such clause, as redesig-
nated by paragraph (2) of this subsection, is amended
by inserting ‘‘small business concern owned and con-
trolled by veterans,’’ after ‘‘small business concern,’’
the first place it appears.
(c) CONFORMING AMENDMENTS.—Section 8(d) of the
Small Business Act (15 U.S.C. 637(d)) is further amended
by inserting ‘‘small business concerns owned and controlled
by veterans,’’ after ‘‘small business concerns,’’ the first place
it appears in paragraphs (4)(D), (4)(E), (6)(A), (6)(C),
(6)(F), and (10)(B).
SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.
(a) GOVERNMENT-WIDE
PARTICIPATION
GOALS.—
Subsection (g)(1) of section 15 of the Small Business Act
(15 U.S.C. 644) is amended—
(1) in the first sentence, by inserting ‘‘small
business concerns owned and controlled by service dis-
abled veterans,’’ after ‘‘small business concerns,’’ the
first place it appears;
(2) by inserting after the second sentence, the fol-
lowing: ‘‘The Government-wide goal for participation
by small business concerns owned and controlled by
service-disabled veterans shall be established at not
less than 5 percent of the total value of all prime con-
tract and subcontract awards for each fiscal year.’’;
and
(3) in the second to last sentence, by inserting
‘‘small business concerns owned and controlled by
service-disabled veterans,’’ after ‘‘small business con-
cerns,’’ the first place it appears.
(b) 
AGENCY
PARTICIPATION
GOALS.—Subsection
(g)(2) of section 15 of the Small Business Act (15 U.S.C.
644) is amended—
(1) in the first sentence, by inserting ‘‘by small
business concerns owned and controlled by service-dis-
abled veterans,’’ after ‘‘small business concerns,’’; the
first place it appears;
(2) in the second sentence, by inserting ‘‘small
business concerns owned and controlled by service-dis-
abled veterans,’’ after ‘‘small business concerns,’’ the
first place it appears; and
(3) in the fourth sentence, by inserting ‘‘small
business concerns owned and controlled by service-dis-
abled veterans, by’’ after ‘‘including participation
by’’.
TITLE VI—REPORTS AND DATA
COLLECTION
SEC. 601. REPORTING REQUIREMENTS.
(a) REPORTS
TO SMALL BUSINESS ADMINISTRA-
TION.—Subsection (h)(1) of section 15 of the Small Busi-
ness Act (15 U.S.C. 644) is amended by inserting ‘‘small
business concerns owned and controlled by veterans (includ-
ing service-disabled veterans),’’ after ‘‘small business con-
cerns,’’ the first place it appears.
(b) REPORTS TO THE PRESIDENT AND CONGRESS.—
Subsection (h)(2) of section 15 of the Small Business Act
(15 U.S.C. 644) is amended—
(1) by inserting ‘‘and Congress’’ before the period
at the end of the first sentence; and
(2) in subparagraphs (A), (D), and (E), by in-
serting ‘‘small business concerns owned and controlled
by service-disabled veterans,’’ after ‘‘small business
concerns,’’ the first place it appears.
SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.
Section 303(e) of the Small Business Economic Policy
Act of 1980 (15 U.S.C. 631b(e)) is amended—
(2) the percentage and dollar value of Federal
contracts awarded to such small business concerns
during the preceding 12-month period; and
(3) proposals to improve the access of such small
business concerns to the assistance made available by
the United States.
SEC. 604. DATA AND INFORMATION COLLECTION.
(a) INFORMATION ON FEDERAL PROCUREMENT PRAC-
TICES.—The Administrator of the Small Business Adminis-
tration shall, for each fiscal year—
(1) collect information concerning the procure-
ment practices and procedures of each department
and agency of the United States having procurement
authority;
(2) publish and disseminate such information to
procurement officers in all Federal agencies; and
(3) make such information available to any
small business concern requesting such information.
(b) IDENTIFICATION OF SMALL BUSINESS CONCERNS
OWNED BY ELIGIBLE VETERANS.—Each fiscal year, the
Secretary of Veterans Affairs shall, in consultation with the
Assistant Secretary of Labor for Veterans’ Employment and
Training and the Administrator of the Small Business Ad-
ministration, identify small business concerns owned and
controlled by veterans in the United States. The Secretary
shall inform each small business concern identified under
this paragraph that information on Federal procurement
is available from the Administrator.
(c) SELF-EMPLOYMENT OPPORTUNITIES.—The Sec-
retary of Labor, the Secretary of Veterans Affairs, and the
Administrator of the Small Business Administration shall
enter into a memorandum of understanding to provide for
coordination of vocational rehabilitation services, technical
and managerial assistance, and financial assistance to vet-
erans, including service-disabled veterans, seeking to employ
themselves by forming or expanding small business con-
cerns. The memorandum of understanding shall include rec-
ommendations for expanding existing programs or estab-
lishing new programs to provide such services or assistance
to such veterans.
TITLE VII—MISCELLANEOUS
PROVISIONS
SEC. 701. ADMINISTRATOR’S ORDER.
The Administrator of the Small Business Administra-
tion shall strengthen and reissue the Administrator’s order
regarding the 3d sentence of section 4(b)(1) of the Small
Business Act (15 U.S.C. 633(b)(1)), relating to non-
discrimination and special considerations for veterans, and
take all necessary steps to ensure that its provisions are
fully and vigorously implemented.
SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF
ADVOCACY.
Section 202 of Public Law 94–305 (15 U.S.C. 634b)
is amended—
(1) in paragraph (10), by striking ‘‘and’’ at the
end;
(2) in paragraph (11), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(12) evaluate the efforts of each department and
agency of the United States, and of private industry,
to assist small business concerns owned and controlled
by veterans, as defined in section 3(q) of the Small
Business Act (15 U.S.C. 632(q)), and small business
concerns owned and controlled by serviced-disabled
veterans, as defined in such section 3(q), and to pro-
vide statistical information on the utilization of such
programs by such small business concerns, and to
make appropriate recommendations to the Adminis-
trator of the Small Business Administration and to
Congress in order to promote the establishment and
growth of those small business concerns.’’.
SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.
(a) IN GENERAL.—The Comptroller General shall con-
duct a study on whether there would exist any additional
risk or cost to the United States if—
(1) up to 10 percent of the loans guaranteed
under chapter 37 of title 38, United States Code, were
made for the acquisition or construction of fixed as-
sets used in a trade or business rather than for the
construction or purchase of residential buildings; and
(2) such loans for acquisition or construction of
fixed assets were for a term of not more than 10 years
and the terms regarding eligibility, loan limits, inter-
est, fees, and down payment were the same as for
other loans guaranteed under such chapter.
(b) REPORT.—
(1) IN GENERAL.—Not later than 180 days after
the enactment of this Act, the Comptroller General
shall transmit the report described in subsection (a)
to the Committees on Veterans’ Affairs and the Com-
mittees on Small Business of the House of Represent-
atives and the Senate.
(2) CONTENTS OF REPORT.—The report required
by paragraph (1) shall specifically address the fol-
lowing:
(A) With respect to the change in the vet-
erans’ housing loan program contemplated under
subsection (a):
(i) The increase or decrease in admin-
istrative costs to the Department of Veterans
Affairs.
(ii) The increase or decrease in the de-
gree of exposure of the United States as the
guarantor of the loans.
(iii) The increase or decrease in the
Federal subsidy rate that would be possible.
(iv) Any increase in the interest rate
or fees charged to the borrower or lender
that would be required to maintain present
program costs.
(B) Information regarding the delinquency
rates, default rates, length of time required for
recovery after default, for fixed-asset business
loans, of a size and duration comparable to those
contemplated under subsection (a), made avail-
able in the private market or under section 503
of the Small Business Investment Act.