I 
115TH CONGRESS 
1ST SESSION H. R. 2488 
To provide for small business concerns located in Puerto Rico, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 17, 2017 
Ms. VELA´ZQUEZ (for herself, Miss GONZA´LEZ-COLO´N of Puerto Rico, Mr. 
SERRANO, Mr. MACARTHUR, Mr. SOTO, Mr. DUFFY, and Mrs. MURPHY 
of Florida) introduced the following bill; which was referred to the Com-
mittee on Small Business 
A BILL 
To provide for small business concerns located in Puerto 
Rico, 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 ‘‘Puerto Rico Small 
Business Assistance Act of 2017’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Definitions. 
TITLE I—LENDING 
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Sec. 101. Microloan program for Puerto Rico small business concerns. 
Sec. 102. Fee reductions. 
Sec. 103. Economic stimulus lending program for small businesses. 
Sec. 104. Contribution percentages for 504 projects. 
Sec. 105. Independent subsidy calculation. 
TITLE II—PROCUREMENT 
Sec. 201. Contracting preference for Puerto Rico businesses. 
Sec. 202. Priority for surplus property transfers. 
Sec. 203. Subcontracting incentives for protege firms that are Puerto Rico 
businesses. 
Sec. 204. Additional mentor-protege relationships for protege firms that are 
Puerto Rico businesses. 
TITLE III—ENTREPRENEURIAL DEVELOPMENT 
Sec. 301. Veteran Business Outreach Center in Puerto Rico. 
Sec. 302. FAST grant program for Puerto Rico. 
TITLE IV—SMALL BUSINESS ADMINISTRATION OVERSIGHT 
Sec. 401. Requirement for the District Director of Puerto Rico. 
SEC. 3. DEFINITIONS. 
(a) THIS ACT.—In this subtitle: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
(2) OVERSIGHT BOARD TERMINATION DATE.— 
The term ‘‘Oversight Board termination date’’ 
means the date on which the Oversight Board estab-
lished under section 101 of the Puerto Rico Over-
sight, Management, and Economic Stability Act (48 
U.S.C. 2121) terminates. 
(3) PUERTO RICO.—The term ‘‘Puerto Rico’’ 
means the Commonwealth of Puerto Rico. 
(4) PUERTO RICO BUSINESS.—The term ‘‘Puer-
to Rico business’’ means a small business concern 
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that has its principal office located in the Common-
wealth of Puerto Rico. 
(5) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
such term under section 3 of the Small Business Act 
(15 U.S.C. 632). 
(b) SMALL BUSINESS ACT.—Section 3 of the Small 
Business Act (15 U.S.C. 632) is amended by adding at 
the end the following: 
‘‘(ee) PUERTO RICO BUSINESS.—In this Act, the 
term ‘Puerto Rico business’ means a small business con-
cern that has its principal office located in the Common-
wealth of Puerto Rico.’’. 
TITLE I—LENDING 
SEC. 101. MICROLOAN PROGRAM FOR PUERTO RICO SMALL 
BUSINESS CONCERNS. 
(a) INCREASE IN ACCESS TO CAPITAL FOR CERTAIN 
INTERMEDIARIES.—Section 7(m)(3)(C) of the Small Busi-
ness Act (15 U.S.C. 636(m)(3)(C)) is amended— 
(1) by inserting ‘‘and except as provided in 
clause (ii)’’ after ‘‘subsection (a)(3)’’; 
(2) by striking ‘‘Notwithstanding’’ and insert-
ing the following: 
‘‘(i) IN GENERAL.—Notwithstanding’’; 
and 
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(3) by adding at the end the following: 
‘‘(ii) EXCEPTION FOR CERTAIN PUER-
TO RICO BUSINESSES.— 
‘‘(I) IN GENERAL.—No loan shall 
be made under this subsection if the 
total amount outstanding and com-
mitted to 1 covered intermediary (ex-
cluding outstanding grants) from the 
business loan and investment fund es-
tablished by this Act would, as a re-
sult of such loan, exceed $6,000,000 
in the remaining years of the covered 
intermediary’s participation in the 
program. 
‘‘(II) 
DEFINITION.—In 
this 
clause, 
the 
term 
‘covered 
inter-
mediary’ 
means 
an 
intermediary 
that— 
‘‘(aa) is participating in the 
program; and 
‘‘(bb) submits to the Admin-
istrator a certification that not 
less than 20 percent of the 
microloans made by the inter-
mediary under this subsection, 
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during such period as the Admin-
istrator may specify, will be made 
to Puerto Rico businesses.’’. 
(b) WAIVER OF 25/75 RULE FOR MICROLOANS TO 
PUERTO RICO SMALL BUSINESS CONCERNS.— 
(1) WAIVER AUTHORIZED.—Section 7(m)(4)(E) 
of the Small Business Act (15 U.S.C. 636(m)(4)(E)) 
is amended— 
(A) in clause (i), by striking ‘‘Each’’ and 
inserting ‘‘Except as provided in clause (iii), 
each’’; and 
(B) by adding at the end the following: 
‘‘(iii) 
EXCEPTION
FOR
CERTAIN 
INTERMEDIARIES.—The 
Administrator 
shall waive the requirements of clause (i) 
for an intermediary for which not less than 
25 percent of the loans made by the inter-
mediary are made to Puerto Rico busi-
nesses.’’. 
(2) STUDY.—Not later than 18 months after 
the date of enactment of this Act, the Administrator 
shall submit to Congress a report on the impact of 
waiving the requirements of section 7(m)(4)(E)(i) of 
the Small Business Act for all intermediaries receiv-
ing grant funds under section 7(m)(1)(B)(ii) of the 
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Small Business Act, which shall include an analysis 
of the effectiveness and feasibility of expanding the 
waiver to small business concerns nationwide. 
(c) PROSPECTIVE REPEAL.—Subsections (a) and (b) 
shall be repealed, and the provisions of law amended by 
such subsections shall be restored as if such subsections 
had not been enacted, on the Oversight Board termination 
date. 
(d) GAO STUDY.—Not later than 180 days after the 
date of enactment of this Act, the Comptroller General 
of the United States shall complete a study and submit 
to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business 
of the House of Representatives a report on the following: 
(1) The operations (including services provided, 
structure, size, and area of operation) of a rep-
resentative sample of— 
(A) intermediaries that are eligible for par-
ticipation in the microloan program under sec-
tion 7(m) of the Small Business Act (15 U.S.C. 
636(m)) and that participate in the microloan 
program; and 
(B) intermediaries (including those oper-
ated for profit, operated as nonprofit organiza-
tions, and affiliated with a United States insti-
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tution of higher learning (as defined in section 
3452 of title 38, United States Code) that are 
so eligible and that do not participate in the 
microloan program. 
(2) The reasons why intermediaries described in 
paragraph (1)(B) choose not to participate in the 
microloan program. 
(3) Recommendations on how to encourage in-
creased participation in the microloan program by 
intermediaries described in paragraph (1)(B). 
(4) Recommendations for increasing the num-
ber of intermediaries located in the territories of the 
United States or in economically distressed areas (as 
defined in section 7(m)(11)(D) of the Small Busi-
ness Act (15 U.S.C. 636(m)(11)(D)) that are eligi-
ble for participation in the microloan program under 
section 7(m) of such Act. 
(5) Recommendations on how to decrease the 
costs associated with participation in the microloan 
program for eligible intermediaries. 
SEC. 102. FEE REDUCTIONS. 
(a) ADMINISTRATIVE PROVISIONS FOR THE SMALL 
BUSINESS ADMINISTRATION.— 
(1) DEFINITION.—In this subsection, the term 
‘‘covered business loan’’ means a loan— 
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(A) of not more than $2,000,000; 
(B) that is guaranteed by the Adminis-
trator under section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)); 
(C) for which the application is approved 
on or after the date of enactment of this Act; 
and 
(D) that is made to a Puerto Rico busi-
ness. 
(2) FEES.—During the period beginning on the 
date of enactment of this Act and ending on the 
Oversight Board termination date, and to the extent 
that the cost of such elimination or reduction of fees 
is offset by appropriations, with respect to each cov-
ered business loan, the Administrator shall— 
(A) in lieu of the fee otherwise applicable 
under section 7(a)(23)(A) of the Small Busi-
ness Act, collect no fee or reduce fees to the 
maximum extent possible; and 
(B) in lieu of the fee otherwise applicable 
under section 7(a)(18)(A) of the Small Busi-
ness Act, collect no fee or reduce fees to the 
maximum extent possible. 
(b) TEMPORARY FEE ELIMINATION FOR THE 504 
LOAN PROGRAM.— 
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(1) IN GENERAL.—During the period beginning 
on the date of enactment of this Act and ending on 
the Oversight Board termination date, and to the ex-
tent the cost of such elimination in fees is offset by 
appropriations, with respect to each loan of not more 
than $2,000,000 guaranteed by the Administrator 
under title V of the Small Business Investment Act 
of 1958 (15 U.S.C. 695 et seq.) with respect to a 
development company that has its principal office lo-
cated in Puerto Rico and for which an application 
is approved or pending approval on or after the date 
of enactment of this Act— 
(A) the Administrator shall, in lieu of the 
fee otherwise applicable under section 503(d)(2) 
of the Small Business Investment Act of 1958 
(15 U.S.C. 697(d)(2)), collect no fee; and 
(B) a development company shall, in lieu 
of 
the 
processing 
fee 
under 
section 
120.971(a)(1) of title 13, Code of Federal Reg-
ulations (relating to fees paid by borrowers), or 
any successor thereto, collect no fee. 
(2) REIMBURSEMENT FOR WAIVED FEES.— 
(A) IN GENERAL.—To the extent that the 
cost of such payments is offset by appropria-
tions, the Administrator shall reimburse each 
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development company that does not collect a 
processing fee under paragraph (1)(B). 
(B) AMOUNT.—The reimbursement to a 
development company under subparagraph (A) 
shall be in an amount equal to 1.5 percent of 
the net debenture proceeds for which the devel-
opment company does not collect a processing 
fee under paragraph (1)(B). 
(c) APPLICATION OF FEE ELIMINATIONS.—To the 
extent that amounts are made available to the Adminis-
trator for the purpose of fee eliminations or reductions 
under subsection (a), the Administrator shall— 
(1) first use any amounts provided to eliminate 
or reduce fees paid by borrowers under clauses (i), 
(ii), and (iii) of section 7(a)(18)(A) of the Small 
Business Act (15 U.S.C. 636(a)(18)(A)), to the 
maximum extent possible; 
(2) to the extent amounts provided remain after 
use in accordance with paragraph (1), use any 
amounts provided to eliminate or reduce fees under 
section 7(a)(23)(A) of the Small Business Act (15 
U.S.C. 636(a)(23)(A)) paid by lenders with assets of 
not more than $1,000,000,000, as of the date of en-
actment of this Act; and 
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(3) to the extent amounts provided remain after 
use in accordance with paragraphs (1) and (2), use 
any remaining amounts provided to reduce fees 
under section 7(a)(23)(A) of the Small Business Act 
paid by lenders other than those described under 
paragraph (2). 
SEC. 103. ECONOMIC STIMULUS LENDING PROGRAM FOR 
SMALL BUSINESSES. 
(a) AUTHORITY.—Notwithstanding section 7(a) of 
the Small Business Act (15 U.S.C. 636(a)), for a quali-
fying small business loan the Administrator may guar-
antee not more than 90 percent of the balance of the fi-
nancing outstanding at the time of disbursement of the 
loan, if such balance is less than or equal to $2,000,000. 
(b) QUALIFYING
SMALL
BUSINESS
LOAN
DE-
FINED.—For purposes of this section, the term ‘‘quali-
fying small business loan’’ means any loan to a Puerto 
Rico business made pursuant to section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)), except for such loans 
made under section 7(a)(31) of such Act (15 U.S.C. 
636(a)(31)). 
(c) QUALIFIED BORROWERS.— 
(1) ALIENS
UNLAWFULLY
PRESENT
IN
THE 
UNITED STATES.—The Administrator may not guar-
antee a loan made under this section to a small busi-
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ness concern if an individual who is an alien unlaw-
fully present in the United States— 
(A) has an ownership interest in that con-
cern; or 
(B) has an ownership interest in another 
concern that itself has an ownership interest in 
that concern. 
(2) FIRMS
IN
VIOLATION
OF
IMMIGRATION 
LAWS.—The Administrator may not guarantee a 
loan made under this section to any entity, based on 
a determination by the Secretary of Homeland Secu-
rity or the Attorney General, found to have engaged 
in a pattern or practice of hiring, recruiting, or re-
ferring for a fee for employment in the United 
States an alien, if such entity knows that the person 
is an unauthorized alien. 
(d) CRIMINAL
BACKGROUND
CHECKS.—Prior to 
guaranteeing a loan made under this section, the Adminis-
trator may verify the applicant’s criminal background, or 
lack thereof, through the best available means, including, 
if possible, use of the National Crime Information Center 
computer system at the Federal Bureau of Investigation. 
(e) APPLICATION OF OTHER LAW.—Nothing in this 
section shall be construed to exempt any activity of the 
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Administrator under this section from the Federal Credit 
Reform Act of 1990. 
(f) SMALL BUSINESS ACT PROVISIONS.—Except as 
otherwise provided in this section, the requirements of sec-
tion 7 of the Small Business Act (and regulations promul-
gated thereunder) applicable to loan guarantees on or be-
fore the date of enactment of this Act shall apply to loan 
guarantees made under this section. 
(g) SUNSET.—The Administrator may not guarantee 
a loan made under this section after the Oversight Board 
termination date. 
SEC. 
104. 
CONTRIBUTION 
PERCENTAGES 
FOR 
504 
PROJECTS. 
Notwithstanding section 502(3) of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 696(3)), during 
the period beginning on the date of enactment of this Act 
and ending on the Oversight Board termination date, the 
Administrator may guarantee a debenture issued by a de-
velopment company that has its principal office located in 
Puerto Rico if, of the total cost of the project financed— 
(1) 50 percent is derived from a loan from a 
private sector lender; 
(2) 45 percent is derived from a loan made 
from the proceeds of such debenture issued by the 
development company; and 
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(3) 5 percent is provide by the borrower of such 
loans. 
SEC. 105. INDEPENDENT SUBSIDY CALCULATION. 
In making calculations under section 7(a)(26) of the 
Small Business Act (15 U.S.C. 636(a)(26)) or section 
503(g) of the Small Business Investment Act of 1958 (15 
U.S.C. 697(g)), the Director of the Office of Management 
and Budget shall make such calculations separately for 
loans purchased or guaranteed under the authority under 
section 102, 103, or 104 of this Act. 
TITLE II—PROCUREMENT 
SEC. 201. CONTRACTING PREFERENCE FOR PUERTO RICO 
BUSINESSES. 
Section 15 of the Small Business Act (15 U.S.C. 644) 
is amended by adding at the end the following: 
‘‘(u) CONTRACTING PREFERENCE FOR PUERTO RICO 
BUSINESSES.— 
‘‘(1) CONTRACTING PREFERENCE.—An agency 
shall provide a contracting preference for a Puerto 
Rico business during the period beginning on the 
date of enactment of this subsection and ending on 
the date on which the Oversight Board established 
under section 101 of the Puerto Rico Oversight, 
Management, and Economic Stability Act (48 
U.S.C. 2121) terminates. The preference under this 
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subsection shall take priority over any preference for 
purchasing from the procurement list established 
pursuant to section 8503 of title 41, United States 
Code, or the Federal Prison Industries catalog de-
scribed under section 4124(d) of title 18, United 
States Code. 
‘‘(2) CREDIT
FOR
MEETING
CONTRACTING 
GOALS.—If an agency awards a contract to a Puerto 
Rico business as described in paragraph (1), the 
value of the contract shall be doubled for purposes 
of determining compliance with the goals for pro-
curement contracts under subsection (g)(1)(A).’’. 
SEC. 202. PRIORITY FOR SURPLUS PROPERTY TRANSFERS. 
Section 7(j)(13)(F) of the Small Business Act (15 
U.S.C. 636(j)(13)(F)) is amended by adding at the end 
the following: 
‘‘(iii)(I) In this clause, the term ‘covered period’ 
means the period beginning on the date of enact-
ment of this clause and ending on the date on which 
the Oversight Board established under section 101 
of the Puerto Rico Oversight, Management, and 
Economic Stability Act (48 U.S.C. 2121) termi-
nates. 
‘‘(II) The Administrator may transfer tech-
nology or surplus property under clause (i) on a pri-
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ority basis to a Puerto Rico business if the Puerto 
Rico business meets the requirements for such a 
transfer, without regard to whether the Puerto Rico 
business is a Program Participant.’’. 
SEC. 203. SUBCONTRACTING INCENTIVES FOR PROTEGE 
FIRMS THAT ARE PUERTO RICO BUSINESSES. 
Section 45(a) of the Small Business Act (15 U.S.C. 
657r(a)) is amended by adding at the end the following: 
‘‘(3) PUERTO RICO BUSINESSES.— 
‘‘(A) IN GENERAL.—During the period be-
ginning on the date of enactment of this para-
graph and ending on the date on which the 
Oversight Board established under section 101 
of the Puerto Rico Oversight, Management, and 
Economic Stability Act (48 U.S.C. 2121) termi-
nates, the Administrator shall provide addi-
tional incentives to covered mentors, including 
providing additional credit for subcontracts 
awarded to covered proteges and costs incurred 
for providing training to covered proteges. 
‘‘(B) DEFINITIONS.—In this paragraph— 
‘‘(i) the term ‘covered mentor’ means 
a mentor that enters into an agreement 
under this Act, or under any mentor-pro-
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tege program approved under subsection 
(b)(1), with a covered protege; and 
‘‘(ii) the term ‘covered protege’ means 
a protege— 
‘‘(I) of a covered mentor; and 
‘‘(II) that has its principal office 
located in the Commonwealth of Puer-
to Rico.’’. 
SEC. 204. ADDITIONAL MENTOR-PROTEGE RELATIONSHIPS 
FOR PROTEGE FIRMS THAT ARE PUERTO 
RICO BUSINESSES. 
Section 45(b)(3)(A) of the Small Business Act (15 
U.S.C. 657r(b)(3)(A)) is amended by inserting ‘‘, except 
that such restrictions shall not apply to a relationship that 
was entered into before the date on which the Oversight 
Board established under section 101 of the Puerto Rico 
Oversight, Management, and Economic Stability Act (48 
U.S.C. 2121) terminates and in which the principal office 
of the protege is located in the Commonwealth of Puerto 
Rico’’ after ‘‘each participant’’. 
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