[House Report 114-526]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-526
======================================================================
DEVELOPING THE NEXT GENERATION OF SMALL BUSINESSES ACT OF 2016
_______
April 25, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Chabot, from the Committee on Small Business, submitted the
following
R E P O R T
[To accompany H.R. 207]
The Committee on Small Business, to whom was referred the
bill (H.R. 207) to amend the Small Business Act to provide for
improvements to small business development centers, having
considered the same, report favorably thereon with amendments
and recommend that the bill as amended do pass.
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Developing the Next
Generation of Small Businesses Act of 2016''.
(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 DEVELOPMENT CENTERS IMPROVEMENTS
Sec. 101. Short title.
Sec. 102. Use of authorized entrepreneurial development programs.
Sec. 103. Marketing of services.
Sec. 104. Data collection.
Sec. 105. Fees from private partnerships and cosponsorships.
Sec. 106. Equity for small business development centers.
Sec. 107. Confidentiality requirements.
Sec. 108. Limitation on award of grants to small business development
centers.
TITLE II--WOMEN'S BUSINESS CENTERS PROGRAM IMPROVEMENTS
Sec. 201. Short title.
Sec. 202. Office of Women's Business Ownership.
Sec. 203. Women's Business Center Program.
Sec. 204. Matching requirements under Women's Business Center Program.
TITLE III--SCORE PROGRAM REAUTHORIZATION
Sec. 301. Short title.
Sec. 302. SCORE Reauthorization.
Sec. 303. SCORE program.
Sec. 304. Online component.
Sec. 305. Study and report on the future role of the SCORE program.
Sec. 306. Technical and conforming amendments.
TITLE I--SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENTS
SEC. 101. SHORT TITLE.
This title may be cited as the ``Small Business Development Centers
Improvement Act of 2016''.
SEC. 102. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT PROGRAMS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by adding
at the end the following:
``SEC. 48. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT PROGRAMS.
``(a) Expanded Support for Entrepreneurs.--
``(1) In general.--Notwithstanding any other provision of
law, the Administrator shall only use the programs authorized
in sections 7(j), 7(m), 8(a), 8(b)(1), 21, 22, 29, and 32 of
this Act, and sections 358 and 389 of the Small Business
Investment Act to deliver entrepreneurial development services,
entrepreneurial education, support for the development and
maintenance of clusters, or business training.
``(2) Exception.--This section shall not apply to services
provided to assist small business concerns owned by an Indian
tribe (as such term is defined in section 8(a)(13)).
``(b) Annual Report.--Beginning on the first December 1 after the
date of enactment of this subsection, the Administrator shall annually
report to the Committee on Small Business of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate on all entrepreneurial development
activities undertaken in the current fiscal year. This report shall
include--
``(1) a description and operating details for each program
and activity;
``(2) operating circulars, manuals, and standard operating
procedures for each program and activity;
``(3) a description of the process used to award grants under
each program and activity;
``(4) a list of all awardees, contractors, and vendors
(including organization name and location) and the amount of
awards for the current fiscal year for each program and
activity;
``(5) the amount of funding obligated for the current fiscal
year for each program and activity; and
``(6) the names and titles for those individuals responsible
for each program and activity.''.
SEC. 103. MARKETING OF SERVICES.
Section 21 of the Small Business Act (15 U.S.C. 648) is amended by
adding at the end the following:
``(o) No Prohibition of Marketing of Services.--The Administrator
shall not prohibit applicants receiving grants under this section from
marketing and advertising their services to individuals and small
business concerns.''.
SEC. 104. DATA COLLECTION.
(a) In General.--Section 21(a)(3)(A) of the Small Business Act (15
U.S.C. 648(a)(3)(A)) is amended--
(1) by striking ``as provided in this section and'' and
inserting ``as provided in this section,''; and
(2) by inserting before the period at the end the following:
``, and (iv) governing data collection activities related to
applicants receiving grants under this section''.
(b) Annual Report on Data Collection.--Section 21 of the Small
Business Act (15 U.S.C. 648), as amended by section 103 of this Act, is
further amended by adding at the end the following:
``(p) Annual Report on Data Collection.--The Administrator shall
report annually to the Committee on Small Business of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate on any data collection activities
related to the Small Business Development Center program.''.
(c) Working Group to Improve Data Collection.--
(1) Establishment and study.--The Administrator of the Small
Business Administration shall establish a Data Collection
Working Group consisting of members from entrepreneurial
development grant recipients associations and organizations and
Administration officials, to carry out a study to determine the
best way to capture data collection and create or revise
existing systems dedicated to data collection.
(2) Report.--Not later than the end of the 180-day period
beginning on the date of the enactment of this Act, the Data
Collection Working Group shall issue a report to the Committee
on Small Business of the House of Representatives and the
Committee on Small Business and Entrepreneurship of the Senate
containing the findings and determinations made in carrying out
the study required under paragraph (1), including--
(A) recommendations for revising existing data
collection practices; and
(B) a proposed plan for the Small Business
Administration to implement such recommendations.
SEC. 105. FEES FROM PRIVATE PARTNERSHIPS AND COSPONSORSHIPS.
Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)(C)),
as amended by section 104, is further amended by adding at the end the
following:
``(D) Fees From Private Partnerships and Cosponsorships.--
Participation in private partnerships and cosponsorships with the
Administration shall not limit small business development centers from
collecting fees or other income related to the operation of such
private partnerships and cosponsorships.''.
SEC. 106. EQUITY FOR SMALL BUSINESS DEVELOPMENT CENTERS.
Subclause (I) of section 21(a)(4)(C)(v) of the Small Business Act (15
U.S.C. 648(a)(4)(C)(v)) is amended to read as follows:
``(I) In general.--Of the amounts made
available in any fiscal year to carry out this
section not more than $600,000 may be used by
the Administration to pay expenses enumerated
in subparagraphs (B) through (D) of section
20(a)(1).''.
SEC. 107. CONFIDENTIALITY REQUIREMENTS.
Section 21(a)(7)(A) of the Small Business Act (15 U.S.C.
648(a)(7)(A)) is amended by inserting after ``under this section'' the
following: ``to any State, local or Federal agency, or third party''.
SEC. 108. LIMITATION ON AWARD OF GRANTS TO SMALL BUSINESS DEVELOPMENT
CENTERS.
(a) In General.--Section 21 of the Small Business Act (15 U.S.C.
648), as amended by section 104, is further amended--
(1) in subsection (a)(1), by striking ``any women's business
center operating pursuant to section 29,'';
(2) by adding at the end the following:
``(q) Limitation on Award of Grants.--Except for not-for-profit
institutions of higher education, and notwithstanding any other
provision of law, the Administrator may not award grants (including
contracts and cooperative agreements) under this section to any entity
other than those that received grants (including contracts and
cooperative agreements) under this section prior to the date of the
enactment of this subsection, and that seek to renew such grants
(including contracts and cooperative agreements) after such date.''.
(b) Rule of Construction.--The amendments made by this section may
not be construed as prohibiting a women's business center from
receiving a subgrant from an entity receiving a grant under section 21
of the Small Business Act (15 U.S.C. 648).
TITLE II--WOMEN'S BUSINESS CENTERS PROGRAM IMPROVEMENTS
SEC. 201. SHORT TITLE.
This title may be cited as the ``Women's Business Centers
Improvements Act of 2016''.
SEC. 202. OFFICE OF WOMEN'S BUSINESS OWNERSHIP.
Section 29(g) of the Small Business Act (15 U.S.C. 656(g)) is
amended--
(1) in paragraph (2), by striking subparagraphs (B) and (C)
and inserting the following:
``(B) Responsibilities.--The responsibilities of the
Assistant Administrator shall be to administer the
programs and services of the Office of Women's Business
Ownership.
``(C) Duties.--The Assistant Administrator shall
perform the following functions with respect to the
Office of Women's Business Ownership:
``(i) Recommend the annual administrative and
program budgets of the Office and eligible
entities receiving a grant under the Women's
Business Center Program.
``(ii) Review the annual budgets submitted by
each eligible entity receiving a grant under
the Women's Business Center Program.
``(iii) Select applicants to receive grants
to operate a women's business center after
reviewing information required by this section,
including the budget of each applicant.
``(iv) Collaborate with other Federal
departments and agencies, State and local
governments, not-for-profit organizations, and
for-profit enterprises to maximize utilization
of taxpayer dollars and reduce (or eliminate)
any duplication among the programs overseen by
the Office of Women's Business Ownership and
those of other entities that provide similar
services to women entrepreneurs.
``(v) Maintain a clearinghouse to provide for
the dissemination and exchange of information
between women's business centers.
``(vi) Serve as the vice chairperson of the
Interagency Committee on Women's Business
Enterprise and as the liaison for the National
Women's Business Council.''; and
(2) by adding at the end the following:
``(3) Mission.--The mission of the Office of Women's Business
Ownership shall be to assist women entrepreneurs to start,
grow, and compete in global markets by providing quality
support with access to capital, access to markets, job
creation, growth, and counseling by--
``(A) fostering participation of women entrepreneurs
in the economy by overseeing a network of women's
business centers throughout States and territories;
``(B) creating public-private partnerships to support
women entrepreneurs and conduct outreach and education
to startup and existing small business concerns owned
and controlled by women; and
``(C) working with other programs overseen by the
Administrator to ensure women are well-represented and
being served and to identify gaps where participation
by women could be increased.
``(4) Accreditation program.--
``(A) Establishment.--Not later than 270 days after
the date of enactment of this paragraph, the
Administrator shall establish standards for an
accreditation program for accrediting eligible entities
receiving a grant under this section, after notice and
the opportunity for public comment of no less than 60
days.
``(B) Transition provision.--Before the date on which
standards are established under subparagraph (A), the
Administrator may not terminate a grant under this
section absent evidence of fraud or other criminal
misconduct by the recipient.
``(C) Contracting authority.--The Administrator may
provide financial assistance, by contract or otherwise,
to a relevant national women's business center
representative association to provide assistance in
establishing the standards required under subparagraph
(A) or for carrying out an accreditation program
pursuant to such standards.''.
SEC. 203. WOMEN'S BUSINESS CENTER PROGRAM.
(a) Definitions.--Section 29(a) of the Small Business Act (15 U.S.C.
656(a)) is amended--
(1) by striking paragraph (4);
(2) by redesignating paragraphs (2) and (3) as paragraphs (3)
and (4), respectively;
(3) by inserting after paragraph (1) the following:
``(2) the term `eligible entity' means--
``(A) an organization described in section 501(c) of
the Internal Revenue Code of 1986 and exempt from
taxation under section 501(a) of such Code;
``(B) a State, regional, or local economic
development organization, so long as the organization
certifies that grant funds received under this section
will not be co-mingled with other funds;
``(C) an institution of higher education, unless such
institution is currently receiving a grant under
section 21;
``(D) a development, credit, or finance corporation
chartered by a State, so long as the corporation
certifies that grant funds received under this section
will not be co-mingled with other funds; or
``(E) any combination of entities listed in
subparagraphs (A) through (D);''; and
(4) by adding at the end the following:
``(5) the term `women's business center' means the location
at which counseling and training on the management, operations
(including manufacturing, services, and retail), access to
capital, international trade, Government procurement
opportunities, and any other matter is needed to start,
maintain, or expand a small business concern owned and
controlled by women.''.
(b) Authority.--Section 29(b) of the Small Business Act (15 U.S.C.
656(b)) is amended--
(1) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively, and adjusting
the margins accordingly;
(2) by striking ``The Administration'' and all that follows
through ``5-year projects'' and inserting the following:
``(1) In general.--There is established a Women's Business
Center Program under which the Administrator may provide a
grant to any eligible entity to operate one or more women's
business centers'';
(3) by striking ``The projects shall'' and inserting the
following:
``(2) Use of funds.--The women's business centers shall be
designed to provide counseling and training that meets the
needs of women, especially socially or economically
disadvantaged women, and shall''; and
(4) by adding at the end the following:
``(3) Amount of grants.--
``(A) In general.--The amount of a grant provided
under this subsection to an eligible entity per project
year shall be not more than $185,000 (as such amount is
annually adjusted by the Administrator to reflect the
change in inflation).
``(B) Additional grants.--
``(i) In general.--Notwithstanding
subparagraph (A), with respect to an eligible
entity that has received $185,000 in grants
under this subsection in a project year, the
Administrator may award an additional grant
under this subsection of up to $65,000 during
such project year if the Administrator
determines that the eligible entity--
``(I) agrees to obtain, after its
application has been approved and
notice of award has been issued, cash
contributions from non-Federal sources
of 1 non-Federal dollar for each
Federal dollar;
``(II) is in good standing with the
Women's Business Center Program; and
``(III) has met performance goals for
the previous project year, if
applicable.
``(ii) Limitations.--The Administrator may
only award additional grants under clause (i)--
``(I) during the 3rd and 4th quarters
of the fiscal year; and
``(II) from unobligated amounts made
available to the Administrator to carry
out this section.
``(4) Notice and comment required.--The Administrator may
only make a change to the standards by which an eligible entity
obtains or maintains grants under this section, the standards
for accreditation, or any other requirement for the operation
of a women's business center if the Administrator first
provides notice and the opportunity for public comment, as set
forth in section 553(b) of title 5, United States Code, without
regard to any exceptions provided for under such section.''.
(c) Conditions of Participation.--Section 29(c) of the Small Business
Act (15 U.S.C. 656(c)) is amended--
(1) in paragraph (1)--
(A) by striking ``the recipient organization'' and
inserting ``an eligible entity''; and
(B) by striking ``financial assistance'' and
inserting ``a grant'';
(2) in paragraph (3)--
(A) by striking ``financial assistance authorized
pursuant to this section may be made by grant,
contract, or cooperative agreement and'' and inserting
``grants authorized pursuant to this section''; and
(B) in the second sentence, by striking ``a recipient
organization'' and inserting ``an eligible entity'';
(3) in paragraph (4)--
(A) by striking ``recipient of assistance'' and
inserting ``eligible entity'';
(B) by striking ``during any project, it shall not be
eligible thereafter'' and inserting ``during any
project for 2 consecutive years, the eligible entity
shall not be eligible at any time after that 2-year
period'';
(C) by striking ``such organization'' and inserting
``the eligible entity''; and
(D) by striking ``the recipient'' and inserting ``the
eligible entity''; and
(4) by adding at end the following:
``(5) Separation of project and funds.--An eligible entity
shall--
``(A) carry out a project under this section
separately from other projects, if any, of the eligible
entity; and
``(B) separately maintain and account for any grants
under this section.
``(6) Examination of eligible entities.--
``(A) Required site visit.--Each applicant, prior to
receiving a grant under this section, shall have a site
visit by an employee of the Administration, in order to
ensure that the applicant has sufficient resources to
provide the services for which the grant is being
provided.
``(B) Annual review.--An employee of the
Administration shall--
``(i) conduct an annual review of the
compliance of each eligible entity receiving a
grant under this section with the grant
agreement, including a financial examination;
and
``(ii) provide such review to the eligible
entity as required under subsection (l).
``(7) Remediation of problems.--
``(A) Plan of action.--If a review of an eligible
entity under paragraph (6)(B) identifies any problems,
the eligible entity shall, within 45 calendar days of
receiving such review, provide the Assistant
Administrator with a plan of action, including specific
milestones, for correcting such problems.
``(B) Plan of action review by the assistant
administrator.--The Assistant Administrator shall
review each plan of action submitted under subparagraph
(A) within 30 calendar days of receiving such plan
and--
``(i) if the Assistant Administrator
determines that such plan will bring the
eligible entity into compliance with all the
terms of the grant agreement, approve such
plan;
``(ii) if the Assistant Administrator
determines that such plan is inadequate to
remedy the problems identified in the annual
review to which the plan of action relates, the
Assistant Administrator shall set forth such
reasons in writing and provide such
determination to the eligible entity within 15
calendar days of such determination.
``(C) Amendment to plan of action.--An eligible
entity receiving a determination under subparagraph
(B)(ii) shall have 30 calendar days from the receipt of
the determination to amend the plan of action to
satisfy the problems identified by the Assistant
Administrator and resubmit such plan to the Assistant
Administrator.
``(D) Amended plan review by the assistant
administrator.--Within 15 calendar days of the receipt
of an amended plan of action under subparagraph (C),
the Assistant Administrator shall either approve or
reject such plan and provide such approval or rejection
in writing to the eligible entity.
``(E) Appeal of assistant administrator
determination.--
``(i) In general.--If the Assistant
Administrator rejects an amended plan under
subparagraph (D), the eligible entity shall
have the opportunity to appeal such decision to
the Administrator, who may delegate such appeal
to an appropriate officer of the
Administration.
``(ii) Opportunity for explanation.--Any
appeal described under clause (i) shall provide
an opportunity for the eligible entity to
provide, in writing, an explanation of why the
eligible entity's plan remedies the problems
identified in the annual review.
``(iii) Notice of determination.--The
determination of the appeal shall be provided
to the eligible entity, in writing, within 15
calendar days from the eligible entity's filing
of the appeal.
``(iv) Effect of failure to act.--If the
Administrator fails to act on an appeal made
under this subparagraph within the 15 calendar
day period specified under clause (iii), the
eligible entity's amended plan of action
submitted under subparagraph (C) shall be
deemed to be approved.
``(8) Termination of grant.--
``(A) In general.--The Administrator shall issue
regulations (after providing an opportunity for notice
and comment) to provide that, if an eligible entity
fails to comply with a plan of action approved by the
Assistant Administrator under paragraph (7)(B)(i) or an
amended plan of action approved by the Assistant
Administrator under paragraph (7)(D) or approved on
appeal under paragraph (7)(E), the Assistant
Administrator shall terminate the grant provided to the
eligible entity under this section.
``(B) Appeal of termination.--An eligible entity that
has a grant terminated under subparagraph (A) shall
have the opportunity to challenge the termination on
the record and after an opportunity for a hearing.
``(C) Final agency action.--The determination made
pursuant to subparagraph (B) shall be considered final
agency action for the purposes of chapter 7, title 5,
United States Code.''.
(d) Submission of 5-year Plan.--Section 29(e) of the Small Business
Act (15 U.S.C. 656(e)) is amended--
(1) by striking ``applicant organization'' and inserting
``eligible entity'';
(2) by striking ``a recipient organization'' and inserting
``an eligible entity'';
(3) by striking ``financial assistance'' and inserting
``grants''; and
(4) by striking ``site''.
(e) Applications and Criteria for Initial Grant.--Subsection (f) of
section 29 of the Small Business Act (15 U.S.C. 656) is amended to read
as follows:
``(f) Applications and Criteria for Initial Grant.--
``(1) Application.--Each eligible entity desiring a grant
under subsection (b) shall submit to the Administrator an
application that contains--
``(A) a certification that the eligible entity--
``(i) has designated an executive director or
program manager, who may be compensated using
grant funds under subsection (b) or other
sources, to manage the women's business center
for which a grant under subsection (b) is
sought;
``(ii) meets the accounting and reporting
requirements established by the Director of the
Office of Management and Budget;
``(B) information demonstrating that the eligible
entity has the ability and resources to meet the needs
of the market to be served by the women's business
center, including the ability to obtain the non-Federal
contribution required under subsection (c);
``(C) information relating to the assistance to be
provided by the women's business center in the area in
which the women's business center is located;
``(D) information demonstrating the experience and
effectiveness of the eligible entity in--
``(i) conducting the services described under
subsection (a)(5);
``(ii) providing training and services to a
representative number of women who are socially
or economically disadvantaged; and
``(iii) working with resource partners of the
Administration and other entities, such as
universities; and
``(E) a 5-year plan that describes the ability of the
eligible entity to provide the services described under
subsection (a)(3), including to a representative number
of women who are socially or economically
disadvantaged.
``(2) Review and approval of applications for initial
grants.--
``(A) Review and selection of eligible entities.--
``(i) In general.--The Administrator shall
review applications to determine whether the
applicant can meet obligations to perform the
activities required by a grant under this
section, including--
``(I) the experience of the applicant
in conducting activities required by
this section;
``(II) the amount of time needed for
the applicant to commence operations
should it be awarded a grant;
``(III) the capacity of the applicant
to meet the accreditation standards
established by the Administrator in a
timely manner;
``(IV) the ability of the applicant
to sustain operations for more than 5
years (including its ability to obtain
sufficient non-Federal funds for that
period);
``(V) the location of the women's
business center and its proximity to
other grant recipients under this
section; and
``(VI) the population density of the
area to be served by the women's
business center.
``(ii) Selection criteria.--
``(I) Rulemaking.--The Administrator
shall issue regulations (after
providing an opportunity for notice and
comment) to specify the criteria for
review and selection of applicants
under this subsection.
``(II) Modifications prohibited after
announcement.--With respect to a public
announcement of any opportunity to be
awarded a grant under this section made
by the Administrator pursuant to
subsection (l)(1), the Administrator
may not modify regulations issued
pursuant to subclause (I) with respect
to such opportunity unless required to
do so by an Act of Congress or an order
of a Federal court.
``(III) Rule of construction.--
Nothing in this clause may be construed
as prohibiting the Administrator from
modifying the regulations issued
pursuant to subclause (I) (after
providing an opportunity for notice and
comment) as such regulations apply to
an opportunity to be awarded a grant
under this section that the
Administrator has not yet publicly
announced pursuant to subsection
(l)(1).
``(B) Record retention.--
``(i) In general.--The Administrator shall
maintain a copy of each application submitted
under this subsection for not less than 5
years.
``(ii) Paperwork reduction.--The
Administrator shall take steps to reduce, to
the maximum extent practicable, the paperwork
burden associated with carrying out clause
(i).''.
(f) Notification Requirements Under the Women's Business Center
Program.--Section 29 of the Small Business Act (15 U.S.C. 656) is
amended by inserting after subsection (k) the following:
``(l) Notification Requirements Under the Women's Business Center
Program.--The Administrator shall provide--
``(1) a public announcement of any opportunity to be awarded
grants under this section, and such announcement shall include
the standards by which such award will be made, including the
regulations issued pursuant to subsection (f)(2)(A)(ii);
``(2) the opportunity for any applicant for a grant under
this section that failed to obtain such a grant a debriefing
with the Assistant Administrator to review the reasons for the
applicant's failure; and
``(3) with respect to any site visit or evaluation of an
eligible entity receiving a grant under this section that is
carried out by an officer or employee of the Administration
(other than the Inspector General), a copy of the site visit
report or evaluation, as applicable, within 30 calendar days of
the completion of such vision or evaluation.''.
(g) Continued Funding for Centers.--Section 29(m) of the Small
Business Act (15 U.S.C. 656(m)) is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) Application and approval for continuation grants.--
``(A) Solicitation of applications.--The
Administrator shall solicit applications and award
continuation grants under this subsection for the first
fiscal year beginning after the date of enactment of
this paragraph, and every third fiscal year thereafter.
``(B) Contents of application.--Each eligible entity
desiring a grant under this subsection shall submit to
the Administrator an application that contains--
``(i) a certification that the applicant--
``(I) is an eligible entity;
``(II) has designated an executive
director or program manager to manage
the women's business center operated by
the applicant; and
``(III) as a condition of receiving a
grant under this subsection, agrees--
``(aa) to receive a site
visit as part of the final
selection process, at the
discretion of the
Administrator; and
``(bb) to remedy any problem
identified pursuant to the site
visit under item (aa);
``(ii) information demonstrating that the
applicant has the ability and resources to meet
the needs of the market to be served by the
women's business center for which a grant under
this subsection is sought, including the
ability to obtain the non-Federal contribution
required under paragraph (4)(C);
``(iii) information relating to assistance to
be provided by the women's business center in
the geographic area served by the women's
business center for which a grant under this
subsection is sought;
``(iv) information demonstrating that the
applicant has worked with resource partners of
the Administration and other entities;
``(v) a 3-year plan that describes the
services provided by the women's business
center for which a grant under this subsection
is sought--
``(I) to serve women who are business
owners or potential business owners by
conducting training and counseling
activities; and
``(II) to provide training and
services to a representative number of
women who are socially or economically
disadvantaged; and
``(vi) any additional information that the
Administrator may reasonably require.
``(C) Review and approval of applications for
grants.--
``(i) In general.--The Administrator--
``(I) shall review each application
submitted under subparagraph (B), based
on the information described in such
subparagraph and the criteria set forth
under clause (ii) of this subparagraph;
and
``(II) as part of the final selection
process, may, at the discretion of the
Administrator, conduct a site visit to
each women's business center for which
a grant under this subsection is
sought, in particular to evaluate the
women's business center using the
selection criteria described in clause
(ii)(II).
``(ii) Selection criteria.--
``(I) In general.--The Administrator
shall evaluate applicants for grants
under this subsection in accordance
with selection criteria that are--
``(aa) established before the
date on which applicants are
required to submit the
applications;
``(bb) stated in terms of
relative importance; and
``(cc) publicly available and
stated in each solicitation for
applications for grants under
this subsection made by the
Administrator.
``(II) Required criteria.--The
selection criteria for a grant under
this subsection shall include--
``(aa) the total number of
entrepreneurs served by the
applicant;
``(bb) the total number of
new startup companies assisted
by the applicant;
``(cc) the percentage of
clients of the applicant that
are socially or economically
disadvantaged;
``(dd) the percentage of
individuals in the community
served by the applicant who are
socially or economically
disadvantaged;
``(ee) the successful
accreditation of the applicant
under the accreditation program
developed under subsection
(g)(5); and
``(ff) any additional
criteria that the Administrator
may reasonably require.
``(iii) Conditions for continued funding.--In
determining whether to make a grant under this
subsection, the Administrator--
``(I) shall consider the results of
the most recent evaluation of the
women's business center for which a
grant under this subsection is sought,
and, to a lesser extent, previous
evaluations; and
``(II) may withhold a grant under
this subsection, if the Administrator
determines that the applicant has
failed to provide the information
required to be provided under this
paragraph, or the information provided
by the applicant is inadequate.
``(D) Notification.--Not later than 60 calendar days
after the date of each deadline to submit applications
under this paragraph, the Administrator shall approve
or deny each submitted application and notify the
applicant for each such application of the approval or
denial.
``(E) Record retention.--
``(i) In general.--The Administrator shall
maintain a copy of each application submitted
under this paragraph for not less than 5 years.
``(ii) Paperwork reduction.--The
Administrator shall take steps to reduce, to
the maximum extent practicable, the paperwork
burden associated with carrying out clause
(i).''; and
(2) by striking paragraph (5) and inserting the following:
``(5) Award to previous recipients.--There shall be no
limitation on the number of times the Administrator may award a
grant to an applicant under this subsection.''.
(h) Technical and Conforming Amendments.--Section 29 of the Small
Business Act (15 U.S.C. 656) is amended--
(1) in subsection (h)(2), by striking ``to award a contract
(as a sustainability grant) under subsection (l) or'';
(2) in subsection (j)(1), by striking ``The Administration''
and inserting ``Not later than November 1 of each year, the
Administrator'';
(3) in subsection (k)--
(A) by striking paragraphs (1) and (4);
(B) by inserting before paragraph (2) the following:
``(1) In general.--There are authorized to be appropriated to
the Administration to carry out this section, to remain
available until expended, $21,750,000 for each of fiscal years
2017 through 2020.''; and
(D) in paragraph (2), by striking subparagraph (B)
and inserting the following:
``(B) Exceptions.--Of the amount made available under
this subsection for a fiscal year, the following
amounts shall be available for selection panel costs,
costs associated with maintaining an accreditation
program, and post-award conference costs:
``(i) For the first fiscal year beginning
after the date of the enactment of this
subparagraph, 2.65 percent.
``(ii) For the second fiscal year beginning
after the date of the enactment of this
subparagraph and each fiscal year thereafter
through fiscal year 2020, 2.5 percent.''; and
(4) in subsection (m)--
(A) in paragraph (2), by striking ``subsection (b) or
(l)'' and inserting ``this subsection or subsection
(b)''; and
(B) in paragraph (4)(D), by striking ``or subsection
(l)''.
(i) Effect on Existing Grants.--
(1) Terms and conditions.--A nonprofit organization receiving
a grant under section 29(m) of the Small Business Act (15
U.S.C. 656(m)), as in effect on the day before the date of
enactment of this Act, shall continue to receive the grant
under the terms and conditions in effect for the grant on the
day before the date of enactment of this Act, except that the
nonprofit organization may not apply for a continuation of the
grant under section 29(m)(5) of the Small Business Act (15
U.S.C. 656(m)(5)), as in effect on the day before the date of
enactment of this Act.
(2) Length of continuation grant.--The Administrator of the
Small Business Administration may award a grant under section
29(m) of the Small Business Act to a nonprofit organization
receiving a grant under section 29(m) of the Small Business Act
(15 U.S.C. 656(m)), as in effect on the day before the date of
enactment of this Act, for the period--
(A) beginning on the day after the last day of the
grant agreement under such section 29(m); and
(B) ending at the end of the third fiscal year
beginning after the date of enactment of this Act.
SEC. 204. MATCHING REQUIREMENTS UNDER WOMEN'S BUSINESS CENTER PROGRAM.
(a) In General.--Section 29(c) of the Small Business Act (15 U.S.C.
656(c)), as amended by section 204 of this Act, is amended--
(1) in paragraph (1), by striking ``As a condition'' and
inserting ``Subject to paragraph (6), as a condition''; and
(2) by adding at the end the following:
``(9) Waiver of non-federal share.--
``(A) In general.--Upon request by an eligible
entity, and in accordance with this paragraph, the
Administrator may waive, in whole or in part, the
requirement to obtain non-Federal funds under this
subsection for counseling and training activities of
the eligible entity carried out using a grant under
this section for a fiscal year. The Administrator may
not waive the requirement for an eligible entity to
obtain non-Federal funds under this paragraph for more
than a total of 2 consecutive fiscal years.
``(B) Considerations.--In determining whether to
waive the requirement to obtain non-Federal funds under
this paragraph, the Administrator shall consider--
``(i) the economic conditions affecting the
eligible entity;
``(ii) the impact a waiver under this
paragraph would have on the credibility of the
Women's Business Center Program under this
section;
``(iii) the demonstrated ability of the
eligible entity to raise non-Federal funds; and
``(iv) the performance of the eligible
entity.
``(C) Limitation.--The Administrator may not waive
the requirement to obtain non-Federal funds under this
paragraph if granting the waiver would undermine the
credibility of the Women's Business Center Program.
``(10) Solicitation.--Notwithstanding any other provision of
law, eligible entity may--
``(A) solicit cash and in-kind contributions from
private individuals and entities to be used to carry
out the activities of the eligible entity under the
project conducted under this section; and
``(B) use amounts made available by the Administrator
under this section for the cost of such solicitation
and management of the contributions received.
``(11) Excess non-federal dollars.--The amount of non-Federal
dollars obtained by an eligible entity that is above the amount
that is required to be obtained by the eligible entity under
this subsection shall not be subject to the requirements of
part 200 of title 2, Code of Federal Regulations, or any
successor thereto, if such amount of non-Federal dollars--
``(A) is not used as matching funds for purposes of
implementing the Women's Business Center Program; and
``(B) was not obtained using funds from the Women's
Business Center Program.''.
(b) Regulations.--
(1) In general.--The Administrator of Small Business
Administration shall--
(A) except as provided in paragraph (2), and not
later than 270 days after the date of enactment of this
Act, publish in the Federal Register proposed
regulations by the Administrator to carry out the
amendments made to section 29 of the Small Business Act
(15 U.S.C. 656) by this title; and
(B) accept public comments on such proposed
regulations for not less than 60 days.
(2) Existing proposed regulations.--Paragraph (1)(A) shall
not apply to the extent proposed regulations by the
Administrator have been published on the date of enactment of
this Act that are sufficient to carry out the amendments made
to section 29 of the Small Business Act (15 U.S.C. 656) by this
title.
TITLE III--SCORE PROGRAM REAUTHORIZATION
SEC. 301. SHORT TITLE.
This title may be cited as the ``SCORE for Small Business Act of
2016''.
SEC. 302. SCORE REAUTHORIZATION.
Section 20 of the Small Business Act (15 U.S.C. 631 note) is
amended--
(1) by redesignating subsection (j) as subsection (f); and
(2) by adding at the end the following:
``(g) SCORE Program.--There are authorized to be appropriated to the
Administrator to carry out the SCORE program authorized by section
8(b)(1) such sums as are necessary for the Administrator to make grants
or enter into cooperative agreements in a total amount that does not
exceed $10,500,000 in each of fiscal years 2017 and 2018.''.
SEC. 303. SCORE PROGRAM.
Section 8 of the Small Business Act (15 U.S.C. 637) is amended--
(1) in subsection (b)(1)(B), by striking ``a Service Corps of
Retired Executives (SCORE)'' and inserting ``the SCORE program
described in subsection (c)''; and
(2) by striking subsection (c) and inserting the following:
``(c) SCORE Program.--
``(1) Definition.--In this subsection:
``(A) SCORE association.--The term `SCORE
Association' means the Service Corps of Retired
Executives Association or any successor or other
organization who receives a grant from the
Administrator to operate the SCORE program under
paragraph (2)(A).
``(B) SCORE program.--The term `SCORE program' means
the SCORE program authorized by subsection (b)(1)(B).
``(2) Management and volunteers.--
``(A) In general.--The Administrator shall provide a
grant to the SCORE Association to manage the SCORE
program.
``(B) Volunteers.--A volunteer participating in the
SCORE program shall--
``(i) based on the business experience and
knowledge of the volunteer--
``(I) provide at no cost to
individuals who own, or aspire to own,
small business concerns personal
counseling, mentoring, and coaching
relating to the process of starting,
expanding, managing, buying, and
selling a business; and
``(II) facilitate low-cost education
workshops for individuals who own, or
aspire to own, small business concerns;
and
``(ii) as appropriate, use tools, resources,
and expertise of other organizations to carry
out the SCORE program.
``(3) Plans and goals.--The Administrator, in consultation
with the SCORE Association, shall ensure that the SCORE program
and each chapter of the SCORE program develop and implement
plans and goals to more effectively and efficiently provide
services to individuals in rural areas, economically
disadvantaged communities, and other traditionally underserved
communities, including plans for electronic initiatives, web-
based initiatives, chapter expansion, partnerships, and the
development of new skills by volunteers participating in the
SCORE program.
``(4) Annual report.--The SCORE Association shall submit to
the Administrator an annual report that contains--
``(A) the number of individuals counseled or trained
under the SCORE program;
``(B) the number of hours of counseling provided
under the SCORE program; and
``(C) to the extent possible--
``(i) the number of small business concerns
formed with assistance from the SCORE program;
``(ii) the number of small business concerns
expanded with assistance from the SCORE
program; and
``(iii) the number of jobs created with
assistance from the SCORE program.
``(5) Privacy requirements.--
``(A) In general.--Neither the Administrator nor the
SCORE Association may disclose the name, address, or
telephone number of any individual or small business
concern receiving assistance from the SCORE Association
without the consent of such individual or small
business concern, unless--
``(i) the Administrator is ordered to make
such a disclosure by a court in any civil or
criminal enforcement action initiated by a
Federal or State agency; or
``(ii) the Administrator determines such a
disclosure to be necessary for the purpose of
conducting a financial audit of the SCORE
program, in which case disclosure shall be
limited to the information necessary for the
audit.
``(B) Administrator use of information.--This
paragraph shall not--
``(i) restrict the access of the
Administrator to program activity data; or
``(ii) prevent the Administrator from using
client information to conduct client surveys.
``(C) Regulations.--
``(i) In general.--The Administrator shall
issue regulations to establish standards for--
``(I) disclosures with respect to
financial audits under subparagraph
(A)(ii); and
``(II) conducting client surveys,
including standards for oversight of
the surveys and for dissemination and
use of client information.
``(ii) Maximum privacy protection.--The
regulations issued under this subparagraph
shall, to the extent practicable, provide for
the maximum amount of privacy protection.''.
SEC. 304. ONLINE COMPONENT.
(a) In General.--Section 8(c) of the Small Business Act, as added by
section 303, is further amended by adding at the end the following:
``(6) Online component.--In carrying out this subsection, the
SCORE Association shall make use of online counseling,
including by developing and implementing webinars and an
electronic mentoring platform to expand access to services
provided under this subsection and to further support
entrepreneurs.''.
(b) Online Component Report.--
(1) In general.--At the end of fiscal year 2018, the SCORE
Association shall issue a report to the Committee on Small
Business of the House of Representatives and the Committee on
Small Business and Entrepreneurship of the Senate on the
effectiveness of the online counseling and webinars required as
part of the SCORE program, including--
(A) how the SCORE Association determines electronic
mentoring and webinar needs, develops training for
electronic mentoring, establishes webinar criteria
curricula, and evaluates webinar and electronic
mentoring results;
(B) describing the internal controls that are used
and a summary of the topics covered by the webinars;
and
(C) performance metrics, including the number of
small business concerns counseled by, the number of
small business concerns created by, the number of jobs
created and retained by, and the funding amounts
directed towards such online counseling and webinars.
(2) Definitions.--For purposes of this subsection, the terms
``SCORE Association'' and ``SCORE program'' have the meaning
given those terms, respectively, under section 8(c)(1) of the
Small Business Act (15 U.S.C. 637(c)(1)).
SEC. 305. STUDY AND REPORT ON THE FUTURE ROLE OF THE SCORE PROGRAM.
(a) Study.--The SCORE Association shall carry out a study on the
future role of the SCORE program and develop a strategic plan for how
the SCORE program will evolve to meet the needs of America's
entrepreneurs over the course of the next 5 years, with markers and
specific objectives for year 1, year 3, and year 5.
(b) Report.--Not later than the end of the 6-month period beginning
on the date of the enactment of this Act, the SCORE Association shall
issue a report to the Committee on Small Business of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate containing--
(1) all findings and determination made in carrying out the
study required under subsection (a);
(2) the strategic plan developed under subsection (a);
(3) an explanation of how the SCORE Association plans to
achieve the strategic plan, assuming both stagnant and
increased funding levels.
(c) Definitions.--For purposes of this section, the terms ``SCORE
Association'' and ``SCORE program'' have the meaning given those terms,
respectively, under section 8(c)(1) of the Small Business Act (15
U.S.C. 637(c)(1)).
SEC. 306. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Small Business Act.--The Small Business Act (15 U.S.C. 631 et
seq.) is amended--
(1) in section 7(m)(3)(A)(i)(VIII) (15 U.S.C.
636(m)(3)(A)(i)(VIII)), by striking ``Service Corps of Retired
Executives'' and inserting ``SCORE program''; and
(2) in section 22 (15 U.S.C. 649)--
(A) in subsection (b)--
(i) in paragraph (1), by striking ``Service
Corps of Retired Executives'' and inserting
``SCORE program''; and
(ii) in paragraph (3), by striking ``Service
Corps of Retired Executives'' and inserting
``SCORE program''; and
(B) in subsection (c)(12), by striking ``Service
Corps of Retired Executives'' and inserting ``SCORE
program''.
(b) Other Laws.--
(1) Section 621 of the Children's Health Insurance Program
Reauthorization Act of 2009 (15 U.S.C. 657p) is amended--
(A) in subsection (a), by striking paragraph (4) and
inserting the following:
``(4) the term `SCORE program' means the SCORE program
authorized by section 8(b)(1)(B) of the Small Business Act (15
U.S.C. 637(b)(1)(B));''; and
(B) in subsection (b)(4)(A)(iv), by striking
``Service Corps of Retired Executives'' and inserting
``SCORE program''.
(2) Section 337(d)(2)(A) of the Energy Policy and
Conservation Act (42 U.S.C. 6307(d)(2)(A)) is amended by
striking ``Service Corps of Retired Executives (SCORE)'' and
inserting ``SCORE program''.
Amend the title so as to read:
A bill to make improvements to Small Business Development
Centers, to reauthorize the Women's Business Center Program, to
reauthorize the SCORE Program, and for other purposes.
II. Purpose and Bill Summary
The purpose of H.R. 207, the ``Developing the Next
Generation of Small Businesses Act of 2016'' is to amend the
Small Business Act (the Act)\1\ to improve the entrepreneurial
development assistance provided to small businesses and
entrepreneurs by the Small Business Administration (SBA) and
its resource partners. Specifically, it provides improvements
to the Small Business Development Center (SBDC) program,
Women's Business Center (WBC) program, and SCORE program. Small
businesses\2\ employ 56.8 million employees, or nearly half of
the nation's private sector workforce,\3\ are responsible for
63 percent of net new private sector jobs, and produce 46
percent of private sector GDP.\4\ In fact, nearly 90 percent of
United States employers have less than 20 employees.\5\ In
2013, 1.1 million net new jobs were created by small
businesses.\6\ New and young firms are particularly important
as they account for almost all net new job creation and nearly
20 percent of gross job creation.\7\ In fact, over the past 30
years, firms that are less than one-year old have annually
generated an average of 1.5 million jobs.\8\ Thus, ensuring
that programs intended to foster new and emerging small
businesses operate properly should benefit the overall economy.
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\1\Originally, title II of the Act of July 30, 1953, c. 282, 67
Stat. 232 was designated as the Small Business Act of 1953. A plethora
of amendments in subsequent Congresses led to a rewrite in 1958. Pub.
L. No. 85-536, Sec. 1, 72 Stat. 384 (1958). The Act is codified at 15
U.S.C. Sec. Sec. 631-657s.
\2\The Act uses the term ``small business concern.'' However, this
report will use the terms ``small business'' and ``small business
concern'' interchangeably unless the context requires a specific
reference to the term ``small business concern.'' The United States
Small Business Administration (SBA) Office of Advocacy defines small
businesses as those with 500 employees or less. SBA, Office of
Advocacy, Frequently Asked Questions 1 (2014) [hereinafter Small
Business FAQ], available at https://www.sba.gov/sites/default/files/
advocacy/FAQ_March_2014_0.pdf.
\3\SBA, Office of Advocacy, Small Business Profile: United States
1, 3 (2016) [hereinafter United States 2016 Profile], available at
https://www.sba.gov/sites/default/files/advocacy/United_States.pdf.
There are 28.8 million small businesses in the United States. Of that
total, 5.8 million are employers, and 23 million are non-employers. Id.
Non-employers are businesses that have no paid employees, $1,000 or
more in annual receipts, and pay federal income taxes. https://
www.census.gov/epcd/nonemployer/view/define.html. Non-employers are
found in almost every major industry sector and include a variety of
small businesses such as manufacturers, construction firms, specialty
trade contractors, real estate agents, physicians, retailers, and home-
based businesses.
\4\Small Business FAQ, supra note 7, at 1.
\5\Of the total number of employers in the United States, 89.49
percent have less than 20 employees. This figure was calculated by
using the firm data in the United States Census Bureau's 2013
Statistics on U.S. Businesses. https://www.census.gov/econ/susb/.
\6\United States 2016 Profile, supra note 8, at 1.
\7\Ewing Marion Kauffman Foundation, Entrepreneurship Policy
Digest: The Importance of Young Firms for Economic Growth 1 (2015),
available at http://www.kauffman.org/what-we-do/resources/
entrepreneurship-policy-digest/the-importance-of-young-firms-for-
economic-growth.
\8\Id.
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III. Need for Legislation
H.R. 207, then titled as the ``Small Business Development
Centers Improvement Act of 2015'' by Ranking Member Nydia
Velazquez on January 8, 2015, and is substantially similar to
H.R. 4121 which was introduced and passed out of Committee
during the 113th Congress. This Chairman Chabot's amendment in
the nature of a substitute (ANS) includes further reforms on
three of the SBA's statutorily authorized entrepreneurial
development (ED) programs to promote oversight of SBA, direct
appropriated dollars, and ensure that the ED programs aid
entrepreneurs as envisioned by Congress rather than based on
the whims of the Administration.
The United States has consistently recognized the need to
encourage entrepreneurship as a means to combat unemployment
and promote economic development. Therefore, SBA's mission, as
evinced in the Act is to ``aid, counsel, assist, and protect,
insofar as is possible, the interests of small business
concerns.''\9\ In carrying out its mission to provide small
businesses with assistance, SBA oversees a number of programs
that offer counseling to potential entrepreneurs and extant
small business owners. SBA itself does not generally carry out
this training; in most circumstances, the agency enters into a
cooperative agreement with another organization to offer such
services. The cooperators are termed resource partners\10\ by
SBA and are required to obtain a significant portion of their
operating budgets from non-federal sources (be they private
donors or state funds).
---------------------------------------------------------------------------
\9\15 U.S.C. Sec. 631(a).
\10\In this case, resource partners refer to the non-federal
partners that provide training authorized by the Small Business Act and
funded, in part, by federal appropriations. These include SBDCs, WBCs,
VBOCs, and SCORE.
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The largest such program is the SBDC program, set out in
Sec. 21 of the Act.\11\ The SBDC grantees operate service
centers where small business owners and potential entrepreneurs
can receive free counseling.\12\ Typically, the grantee is an
institution of higher education (but not always) and the
grantee agrees to offer these services throughout a state or
through a portion of the state.\13\ Although their missions and
scope of service territories vary, the WBCs\14\ and Veteran
Business Outreach Centers (VBOCs) operate in a fashion akin to
that of the SBDCs.
---------------------------------------------------------------------------
\11\15 U.S.C. Sec. 648.
\12\SBDCs are responsible for providing an array of services which
are delineated in the Act. These include one-on-one counseling; aiding
individuals awareness of credit practices and requirements; assisting
in developing business plans, financial packages, credit applications,
and contract proposals; as well as working with SBA to develop and
provide information tools on starting or expanding a business or export
planning. Id. at Sec. 648(c)(3).
\13\The grantee agrees to provide services throughout a state; two
states--California and Texas--do not have statewide grantees.
\14\With respect to WBCs, it is important to note that at least 25
percent of their clients are men, according to testimony offered by the
WBCs in hearings before this Committee.
---------------------------------------------------------------------------
The other major entrepreneurial outreach program, SCORE,
operates somewhat differently. Although SCORE also offers free
advice (from volunteer active and retired business executives),
almost all of SCORE's funds are appropriated by Congress. The
SBA also is required to provide offices and other ancillary
services to SCORE at no charge to SCORE or their clients.
Despite this array of specifically authorized statutory ED
programs,\15\ SBA has felt the need to create and request funds
for new entrepreneurial training initiatives. In the FY 17
SBA's recent budget request, while the overall agency request
for specifically authorized ED programs is reduced by
$500,000,\16\ SBA requested an increase of $10 million from
what was appropriated in FY 2016 or SBA-created
initiatives.\17\ Thus, SBA continues to neglect the statutory
ED programs in favor of its initiatives.
---------------------------------------------------------------------------
\15\In addition to those already described, there are a number of
other initiatives that are specifically recognized in statute by which
the SBA educates small business owners. Under the Microloan Program
(Sec. 7(m) of the Small Business Act), microloan intermediaries are
appropriated funds to offer their borrowers education on operating a
business. The agency also is authorized to contract with third parties
to offer assistance to participants in the 8(a) government contracting
program the authority for which is found not in Sec. 8(a) but in
Sec. 7(j).
\16\SBA, FY 2017 Congressional Budget Justification and FY 15
Annual Performance Report 14 (2016), available at https://www.sba.gov/
sites/default/files/FY17-CBJ_FY15-APR.pdf.
\17\Id. at 19.
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In response to this ever-burgeoning effort at the agency to
create its own entrepreneurial outreach efforts, the Committee
requested a complete list of all efforts initiated by the SBA
to provide entrepreneurial training or outreach to small
businesses.\18\ SBA's response included twenty-two various
programs, with seventeen deemed by SBA as initiatives or
partnerships and being created by the SBA without specific
direction by Congress to develop any one of those nine
initiatives.\19\ Of those programs, the SBA has focused most of
its efforts and funding requests on four of its initiatives:
Entrepreneurial Education; Growth Accelerators; Boots to
Business; and Regional Innovation Clusters.\20\
---------------------------------------------------------------------------
\18\Letter from the Hon. Sam Graves, Chairman, Committee on Small
Business, to the Hon. Karen Mills, Administrator, SBA (Aug. 7, 2013)
(on file with Committee).
\19\Letter from the Hon. Karen Mills, Administrator, SBA, to the
Hon. Sam Graves, Chairman, Committee on Small Business (Aug. 30, 2013)
(on file with Committee).
\20\Letter from Marianne Markowitz, Acting Administrator, SBA to
the Hon. Sam Graves, Chairman, Committee on Small Business (Mar. 11,
2014) (on file with the Committee) [hereinafter SBA-created Initiatives
Response Letter]. The letter from Acting Administrator Markowitz was in
response to a joint request for more information on these programs sent
by Chairman Graves and Ranking Member Velazquez.
---------------------------------------------------------------------------
Consequently, while H.R. 207 does not prohibit new
initiatives, it does refocus and strengthen statutory programs
of the Act. Title I of H.R. 207 modernizes the SBDCs while
increasing SBA's compliance with data collection. Title II
reauthorizes the WBC program through FY 20 while making
substantial reforms to enhance training to entrepreneurs and
provide an accreditation process to ensure that no matter which
WBC an entrepreneur goes to across the country each WBC will
meet certain standards. Finally, title III of the bill
reauthorizes the SCORE program until FY 18 while requiring that
the SCORE program utilize its funding for online components and
demonstrate a strategic plan for increased funding levels in
the future.
IV. Hearings
In the 114th Congress, the Committee held four hearing that
looked at the issues covered by H.R. 207. On February 25, 2015,
the full Committee held a hearing titled ``The SBA Budget for
FY 2016: Does it Meet the Needs of America's Small
Businesses?'' that examined funding levels for the ED programs.
Additionally, on February 2, 2016, the Subcommittee on Economic
Growth, Tax and Capital Access held a hearing called ``SBA
Management Review: Oversight of SBA's Entrepreneurial
Development Offices'' that focused on key problems with the ED
programs.
V. Committee Consideration
The Committee on Small Business met in open session, with a
quorum being present, on March 23, 2016 and ordered H.R. 207
reported, as amended, to the House by a voice vote at 10:13 am.
During the markup, two amendments were offered, including an
amendment in the nature of a substitute. All amendments were
adopted. Disposition of the amendments is addressed below and
is based on the order amendments were filed with the Clerk of
the Committee and not necessarily in the order that they were
considered at the markup.
The amendment in the nature of a substitute officer by
Chairman Chabot (R-OH) was adopted by unanimous consent at
10:09 a.m. It added titles II and III to the bill, and made
other technical corrections.
Amendment Number One was offered by Ms. Chu (D-CA). It
amended section 203(e) of the bill to add a requirement that
SBA consider population density as a factor when considering
applications from new WBCs. The amendment passed by voice vote
at 10:13 a.m.
VI. Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report the legislation and amendments
thereto. There were no recorded votes on H.R. 207.
VII. Section-by-Section Analysis of H.R. 207 as Amended
TITLE I: SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENTS
Section 101. Short title
This section provides that the bill may be cited as the
``Small Business Development Centers Improvement Act of 2016.''
Section 102. Use of authorized entrepreneurial development programs
This section amends the Small Business Act (15 U.S.C.
Sec. Sec. 631-57s) by creating a new section 48 of the Act.
Subsection (a)--Expanded support for entrepreneurs
Currently, the Administrator is creating and separately
funding initiatives developed by the agency. Subsection (a)
changes this practice to prohibit the Administrator from
utilizing unauthorized programs to deliver entrepreneurial
development (ED) services, and provides that Small Business
Administration (SBA)-created initiatives must be delivered
through those authorized programs specifically cross-referenced
in this subsection. As resource partners are the only entities
with specific statutory authority to deliver ED support through
the SBA, this promotes operational efficiencies, benefitting
both small businesses and the taxpayer. Further, given the
abundance of ED programs across federal agencies as identified
by Government Accountability Office duplication reports, the
statutory restriction in new Sec. 48 will help reduce
overlapping and duplicative efforts without harming the ability
of small businesses to obtain the necessary counseling and
training they require. The only exception to this overall
prohibition, in subsection (a)(2)(A), relates to assistance
offered to small business concerns owned by an Indian tribe.
Subsection (b)--Annual report
Given that SBA-led initiatives are created under the SBA's
general authority to offer assistance to small businesses,
these programs do not contain the appropriate performance
metrics or operating standards that would result had Congress
specifically provided for their establishment. This subsection
makes an effort to fill that gap in part by requiring the SBA
to issue a report to Congress delineating all ED activities
during the current fiscal year. This subsection proscribes
items which must be included within the report including: a
description and operating details for each program and
activity; operating circulars, manuals, and standard operating
procedures for each program and activity; a list of all
awardees, contractors, and vendors (including organization name
and location) and the amounts of awards for the current fiscal
year for each program and activity; the amount of funding
obligated for the current fiscal year for each program and
activity; and the names and titles for those individuals
responsible for each program and activity. The data required in
the report will help ensure that the Committees of jurisdiction
have the necessary information to ascertain whether taxpayer
dollars are being spent wisely.
Section 103. Marketing of services
The Act is currently silent on the question of whether
SBDCs can market and advertise their products and services.
This section amends Sec. 21 of the Act by adding a new
subsection (o), which ensures the SBDCs are able to market and
advertise their products and services. Greater awareness of the
services available through the SBDCs will allow more small
businesses to receive entrepreneurial assistance without
imposing any more financial burdens on SBDCs, the SBA, or the
taxpayer.
Section 104. Data collection
In order for the SBA to provide Congress with information
to properly evaluate ED programs, SBA has been for the past few
years engaged in updating its Entrepreneurial Development
Management Information System (EDMIS) to gather better
performance data. During this process, there have been several
setbacks including a failed $1 million upgrade to the EDMIS
system in FY 2015, as well as concerns that some of the
required information in a revised EDMIS form would force SBDCs
to capture and report data that small businesses are reluctant
to share. In cases where this information is of little value to
the government, these requirements place an unnecessary burden
on the SBDCs and will dissuade small businesses from seeking
SBDC assistance.
To correct this problem, this section amends
Sec. 21(a)(3)(A) of the Act to require the Administrator to
consult with the Association of Small Business Development
Centers on the creation of documents governing data collection
activities related to SBDCs. Section 21 is further amended by
adding a new subsection (p) which requires the Administrator to
provide an annual report on data collection activities related
to the SBDC program to the appropriate Congressional
committees. Further, this section establishes a working group
on data collection consisting both of members of the SBA as
well as representatives from each of the affected resource
partners to develop a plan for data collection and submit this
plan to the Senate Committee on Small Business and
Entrepreneurship and the House Committee on Small Business
within 180 days.
Section 105. Fees from private partnerships and cosponsorships
In order to obtain funding, SBDC grantees must match funds
provided by the federal government with non-federal sources,
such as private donations or state funds. Therefore, SBDCs
often work alongside other community partners, such as a local
chamber of commerce, to host events as a partnership or a co-
sponsor. In these instances, a participation fee may be charged
to businesses by the partnership or cosponsoring party.
However, under current law SBDCs are not allowed to collect the
necessary fee. Therefore, this section amends Sec. 21(a)(3)(C)
of the Act to permit SBDCs to collect fees or other income
related to the operation of partnerships or cosponsorships.
This authorization does not alter the no-cost counseling
provided by SBDCs to individual small businesses.
Section 106. Equity for SBDCs
Under current law, up to $500,000 of authorized funding to
SBDCs could be utilized by the Administrator to pay $500,000 to
the ASBDC for the performance of accreditation services and an
additional $500,000 of authorized funding to SBDCs could be
utilized by the Administrator for financial examination
expenses associated with reviewing SBDCs. This section
eliminates the award of $500,000 of SBDC grant monies to
reimburse the SBA for program administration while raising the
amount of funding to $600,000 to be provided to the ASBDC for
accreditation. This promotes ongoing accreditation which is
necessary to ensure strong SBDCs across the country, while
promoting responsible spending as the SBA has sufficient
resources in its salaries and expense account to cover the cost
of administering the SBDC program.
Section 107. Confidentiality requirements
The SBA's current operational guidelines for the SBDC
program require that SBDCs collect certain information on the
businesses they counsel. This information is the basis for some
of the performance metrics the agency uses to determine the
effectiveness of the SBDCs in fulfilling their mission. Some of
the information collected for this purpose, while relevant and
necessary for the SBA and SBDCs, is sensitive information that
small businesses wish to have treated as confidential. The
Committee has become aware of instances in which the SBA is
sharing this information with third parties. This sensitive
information--such as the name of business--is not necessary to
develop performance metrics. However, its forced disclosure
could dissuade businesses from seeking assistance through the
SBDCs, thereby undermining the intent of Congress when it
created the SBDCs. Therefore, this section amends
Sec. 21(a)(7)(A) of the Act to prohibit the SBA from
distributing and sharing SBDC client information with other
parties. This reinforces the Committee's longstanding efforts
to ensure the confidentiality of information that small
businesses provide to SBDCs.
Section 108. Limitation on award of grants to SBDCs
A majority of SBDC grantees are partnered with higher
education institutions which bolster SBDCs ability to obtain
private matching funding as required under law. This section
adds a new subsection (q) to Sec. 21 of the Act by prohibiting
entities other than institutions of higher education from
becoming grantees under Sec. 21.
An exception is provided for current SBDC grantees who are
not institutions of higher education. These institutions may
continue to renew their status as a grantee until they no
longer wish to do so or the SBA determines that these
grandfathered grantees are incapable of providing such
services. Further, a rule of construction is added to make it
clear that while Women's Business Centers may not be a lead
center under the SBDC program, they are allowed to receive
funds from lead centers and to act as subgrantees.
TITLE II: WOMEN'S BUSINESS CENTERS IMPROVEMENTS
Section 201. Short title
This section provides that the bill may be cited as the
``Women's Business Center Improvements Act of 2016.''
Section 202. Office of Women's Business Ownership
This section amends Section 29(g) of the Small Business Act
to improve the Office of Women's Business Ownership (OWBO),
which is responsible for overseeing the Women's Business Center
(WBC) program, among other things. OWBO is overseen by an
Assistant Administrator and this section provides a mission for
OWBO to assist women entrepreneurs while clarifying the
responsibilities and duties of the individual serving as
Assistant Administrator to ensure that mission is met.
Specifically, this section directs the Office to work with
Administration officials and collaborate with entities other
than the Administration to ensure that the work of the Women's
Business Center program (maximizes taxypayer dollars) and
coordinates effectively with the efforts of other Federal
Government and private sector programs.
This section also requires the SBA Administrator to
establish through notice and comment rulemaking an
accreditation program for the WBC program and provide a
contract or financial assistance to an association which
represents a majority of WBCs. This model is based on the
success of a similar model utilized within the Small Business
Development Centers (SBDCs) program where the Association of
Small Business Development Centers (ASBDC) receives a contract
from SBA to run an accreditation program to ensure that SBDCs
across the country meet strong standards. The ASBDC has an
accreditation board, which includes both SBDC grant recipients
and SBA officials. Currently, while OWBO provides grants to
various institutions for the establishment of WBCs across the
country, there is little consistency instandards aside from
meeting the requirements of the grant. Given the success of the ASBDC
and the growing concern that SBA mismanagement may lead to weaker WBCs,
this section ensures that no matter which WBC an entrepreneur goes to
across the country each WBC will meet certain accreditation standards.
Additionally, this section provides transition time so that a current
WBC grantee who does not engage in criminal activity or fraud has time
to become accredited and comply with the standards.
Section 203. Women's Business Center Program
WBCs were originally established as a three-year pilot
program. In 1997, Congress kept the basic premise of the
demonstration projects but redesignated the names to Women's
Business Centers, extended the time frame for the demonstration
projects to five years, modified the matching contributions,
and imposed review requirements to ensure that Women's Business
Centers were meeting the obligations of their grants.
Currently, while the WBC program is mentioned in the Small
Business Act, there is no specific designation of the program
and little elaboration on how that program will function and
what various terms mean.
Subsection (a)--Definitions
This subsection amends section 29(a) of the Act to provide
definitions of various terms within the WBC program and align
the Act with how the WBC program truly operates.
Subsection (b)--Authority
This subsection amends section 29(b) of the Act to raise
the amount an eligible entity would be able to receive as a
grant from SBA from $150,000 to $185,000, as annually adjusted
for inflation. This is the first time since the program's
creation that the cap is being raised and this modest increase
in the cap simply allows the centers to continue receiving the
same dollar funding as inflation and changes in cost-of-living
have reduced the current value. Further, this section allows a
WBC to receive an additional $65,000 if they can provide a 1
for 1 match of funds during the fourth quarter of the fiscal
year, and if the SBA has unobligated funds which are meant for
WBC grantees that would otherwise go unused. For a standard WBC
grant, WBCs are required to provide a 1 to 1 match, and given
that the amount of the match is not always known until later in
the fiscal year, the SBA each year has been ending up with over
$500,000 in unobligated funds which is it unable to carry over
to the next year. This subsection ensures that these funds will
be utilized as intended for WBCs and go to WBCs who can
demonstrate a need and the requisite match. Further, this
subsection requires SBA to promulgate rules through notice and
comment rulemaking for any activity related to the WBC program.
Subsection (c)--Conditions of participation
Currently, the Act provides for certain conditions of
participation. This subsection amends section 29(c) of the Act
to expand upon those conditions to ensure strong oversight and
careful use of scarce taxpayer dollars. Specifically this
subsection prohibits eligible entities from co-mingling grant
funds and requires site visits and annual reviews by the SBA to
ensure compliance with grant agreements. Further, this
subsection is amended to promote due process by requiring the
SBA to establish a remediation plan through notice and comment
rulemaking to ensure that if a problem is found with a WBC
grant recipient, they have an opportunity to take corrective
action and come into compliance with the law. Only after this
remediation process may the SBA terminate the grant in
accordance with the rules that SBA must promulgate under this
subsection.
Subsection (d)--Submission of 5-year plan
This subsection amends section 29(e) of the Act to make
technical corrections to language so that terms are consistent
throughout the WBC program.
Subsection (e)--Applications and criteria for initial grant
This subsection amends section 29(f) of the Act to require
an eligible entity that is applying for a first time WBC grant
to: submit to the Administrator certification of designation of
an executive director or program manager; submit information
demonstrating that it has the ability and resources to meet the
needs of the market to be served as well as information
demonstrating its experiences and effectiveness in conducting
required services; demonstrate the ability to obtain non-
Federal contributions; and develop a five year plan
demonstrating the ability of the WBC to serve women who are
business owners or potential business owners and provide
training and services to women who are socially or economically
disadvantaged.
This subsection adds requisites for the SBA's review and
approval of applications which takes into account the
experience, the time needed between grant award and operational
commencement, sustainability after 5 years, location,
population density, and the capacity to meet accreditation
standards. Further, this subsection amends section 29(f) to
require the SBA to establish regulations in accordance with the
criteria to ensure that all eligible entities understand what
would be required of them to receive a grant.
Subsection (f)--Notification requirements under the Women's
Business Center program
Currently, the Act is silent on how eligible entities would
learn about the WBC program grants and what the SBA should
provide to eligible entities. This subsection amends Section 29
of the Act to add a new subsection (l) which requires the SBA
to provide public announcements of the grants availability, the
opportunity for anyone denied a grant to review with the
Assistant Administrator of OWBO the reasons for denial, and for
any eligible entity who receives a site visit or evaluation to
receive a copy of that report within 30 days of completion.
Subsection (g)--Continued funding for centers
Under current practice, an initial grant is awarded to an
eligible entity to serve as a WBC for 5 years. Following that
time period, incumbent WBCs are eligible to apply for another 3
year grant that continues funding the eligible entity as a WBC.
This subsection amends Section 29(m) of the Act, to formally
put into statute what is already occurring and modifies it so
that the continuation grant takes into account other changes
made within this bill to ensure that an existing WBC becomes
accredited, meets the requisite federal matching requirements,
develops a 3 year plan that describes how it intends to
continuing providing services, and thereby continues to meet
the revised standards. This provision also requires the
Administrator to look at prior evaluations and specific
criteria such as: the total number of entrepreneurs served;
total number of new startup companies assisted; percentage of
clients socially or economically disadvantaged; percentage of
individuals in the community socially or economically
disadvantaged; successful participation under the accreditation
program; and any additional criteria the Administrator
reasonably requires. Further, this subsection establishes that
there is no limitation on the number of times the Administrator
may award a grant to an applicant.
Subsection (h)--Technical and conforming amendments
This subsection authorizes $21,750,000 for each of fiscal
years 2016 to 2020 to be appropriated to the Administration. Of
the amount made available, the following amount shall be
available for selection panel costs, costs associated with
maintaining an accreditation program and post-award conference
costs. For fiscal year 2016, 2.65 percent of total appropriated
amount. For each of fiscal years 2017 to 2020, 2.5 percent.
Subsection (i)--Effect on existing grants
This subsection amends Section 29(m) to provide protections
for existing WBCs and ensure that existing WBCs have adequate
time to meet the new requirements provided within this bill.
Section 204. Matching requirements under Women's Business Center
program
The Small Business Jobs Act waived the 1 to 1 matching
requirements temporarily for the WBC program during the
economic downturn. While this waiver was seldom used, it
provided flexibility within the program to ensure that WBCs who
were adversely impacted but would be able to successfully
resume operations once the economy rebounded were not forced to
stop receiving their WBC grant. Given that, this section amends
29(c) of the Act to allow the Administrator to waive, in whole
or in part, the requirement to obtain non-Federal funds for
counseling and training activities of the recipient of
financial assistance. The Administrator may not waive the
requirement for a recipient organization to obtain non-Federal
funds for more than a total of 2 consecutive fiscal years. This
section also requires the Administrator to consider when
determining whether to waive the requirement to obtain non-
Federal funds: the economic conditions affecting the recipient;
the impact of a waiver would have on the credibility of the
women's business center program; the demonstrated ability of
the recipient to raise non-Federal funds; and the performance
of the recipient. Further, to safeguard both the taxpayer and
the other WBC grant recipients, it prohibits the Administrator
from waiving the requirement to obtain non-Federal funds if
granting the waiver would undermine the credibility of the WBC
program.
Additionally, this section exempts the amount of non-
Federal dollars obtained by the WBC grant recipient that is
above the amount required to be obtained, and which is not used
as matching funds for purposes of implementing the program,
from part 200 of title 2, Code of Federal Regulations, or any
successor. This corrects a longstanding compliance challenge by
which WBCs would be reluctant to raise additional funds as the
SBA would force them to include it as part of their budget even
though that money was not being used for purposes of the match.
In accordance with these changes, the section requires the SBA
to issue regulations within 270 days.
TITLE III: SCORE PROGRAM REAUTHORIZATION
Section 301. Short title
This section provides that the bill may be cited as the
``SCORE for Small Business Act of 2016.''
Section 302. SCORE reauthorization
This section reauthorizes the SCORE Program at $10.5
million for Fiscal Years (FYs) 2017 and 2018, respectively. As
SCORE received an appropriation funding level of $10.5 million
for FY 2016, this ensures that this valuable program continues
to have the ability to meet the needs of small business owners
with a continued level of funding for the next two FYs.
Section 303. SCORE program
This section amends Section 8 of the Small Business Act to
officially change the name of SCORE from Service Corps of
Retired Executives (SCORE) to SCORE. This change is reflective
of how the SCORE program has grown beyond merely just utilizing
retired executives for its volunteer base and today utilizes
entrepreneurs who may still be actively engaged in running
their businesses. This section also provides for the
definitions of terms used within the SCORE program and requires
the SCORE Association, which is defined as the entity who
receives the SCORE grant from Small Business Administration
(SBA), to provide an annual report on their activities.
Further, this section creates parity for SCORE with the other
entrepreneurial development (ED) programs within the SBA by
requiring the SBA to promulgate privacy regulation to ensure
that small businesses' valuable personal information is
safeguarded and secure.
Section 304. Online component
This section amends Section 8(c) of the Small Business Act
to require the SCORE Association to utilize webinars and
electronic mentoring as a way to increase SCORE's presence
across America. For FY 2017, the SCORE Association has
requested $1.3 million for technology, and this section ensures
that will occur by making technology an integral piece of the
SCORE program. Further, this section requires the SCORE
Association to provide a report at the end of FY 2018, which
coincides with the reauthorization of funds provided in this
bill, to the Senate Committee on Small Business and
Entrepreneurship and the House Committee on Small Business
regarding the results of this online component, including
performance metrics.
Section 305. Study and report on the future role of the SCORE program
This section requires the SCORE Association to provide a
report to the Senate Committee on Small Business and
Entrepreneurship and the House Committee on Small Business
within six months after enactment of this bill on the future
role and strategic plan for how the SCORE program will evolve
to meet the needs of America's entrepreneurs over the next ten
years with specific markers for year 1, year 3, and year 5.
Section 306. Technical and conforming amendments
This section makes technical and conforming amendments to
the Small Business Act reflective of other changes made in this
bill, such as the changing of the name of the program from
Service Corps of Retired Executives (SCORE) to SCORE.
VIII. Congressional Budget Office Cost Estimate
At the time H.R. 207 was reported to the House, the
Congressional Budget Office had not provided a cost estimate.
IX. Unfunded Mandates
H.R. 207 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act, Pub.
L. No. 104-4, and would impose no costs on state, local or
tribal governments.
X. New Budget Authority, Entitlement Authority and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement
authority and tax expenditures. While the Committee has not
received an estimate of new budget authority contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to 402 of the Congressional Budget Act
of 1974, the Committee does not believe that any additional
appropriation will be required due to the enactment of H.R.
207. H.R. 207 does not direct new spending, but instead
continues the authorization levels currently in place while
reallocating funds within the programs.
XI. Oversight Findings
In accordance with clause 2(b)(1) of rule X of the Rules of
the House, the oversight findings and recommendations of the
Committee on Small Business with respect to the subject matter
contained in H.R. 207 are incorporated into the descriptive
portions of this report.
XII. Statement of Constitutional Authority
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
authority for this legislation in Art. I, Sec. 8, cls. 3 of the
Constitution of the United States.
XIII. Congressional Accountability Act
H.R. 207 does not relate to the terms and conditions of
employment or access to public services or accommodations
within the meaning of Sec. 102(b)(3) of Pub. L. No. 104-1.
XIV. Federal Advisory Committee Act Statement
H.R. 207 does not establish or authorize the establishment
of any new advisory committees as that term is defined in the
Federal Advisory Committee Act, 5 U.S.C. App. 2.
XV. Statement of No Earmarks
Pursuant to clause 9 of rule XXI, H.R. 207 does not contain
any congressional earmarks, limited tax benefits or limited
tariff benefits as defined in subsections (d), (e) or (f) of
clause 9 of rule XXI of the Rules of the House.
XVI. Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House, the Committee establishes the following performance-
related goals and objectives for this legislation:
H.R. 207 includes a number of provisions designed to
improve the provision of entrepreneurial development
assistance pursuant to the Small Business Act, and to
improve agency compliance with the Small Business Act.
XVII. Changes to Existing Law
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
SMALL BUSINESS ACT
* * * * * * *
Sec. 7. (a) Loans to Small Business Concerns; Allowable
Purposes; Qualified Business; Restrictions and Limitations.--
The Administration is empowered to the extent and in such
amounts as provided in advance in appropriation Acts to make
loans for plant acquisition, construction, conversion, or
expansion, including the acquisition of land, material,
supplies, equipment, and working capital, and to make loans to
any qualified small business concern, including those owned by
qualified Indian tribes, for purposes of this Act. Such
financings may be made either directly or in cooperation with
banks or other financial institutions through agreements to
participate on an immediate or deferred (guaranteed) basis.
These powers shall be subject, however, to the following
restrictions, limitations, and provisions:
(1) In general.--
(A) Credit elsewhere.--
(i) In general.--No financial
assistance shall be extended pursuant
to this subsection if the applicant can
obtain credit elsewhere. No immediate
participation may be purchased unless
it is shown that a deferred
participation is not available; and no
direct financing may be made unless it
is shown that a participation is not
available.
(ii) Liquidity.--On and after October
1, 2015, the Administrator may not
guarantee a loan under this subsection
if the lender determines that the
borrower is unable to obtain credit
elsewhere solely because the liquidity
of the lender depends upon the
guaranteed portion of the loan being
sold on the secondary market.
(B) Background checks.--Prior to the approval
of any loan made pursuant to this subsection,
or section 503 of the Small Business Investment
Act of 1958, the Administrator 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.
(C) Lending limits of lenders.--On and after
October 1, 2015, the Administrator may not
guarantee a loan under this subsection if the
sole purpose for requesting the guarantee is to
allow the lender to exceed the legal lending
limit of the lender.
(2) Level of participation in guaranteed loans.--
(A) In general.--Except as provided in
subparagraphs (B), (D), and (E), in an
agreement to participate in a loan on a
deferred basis under this subsection (including
a loan made under the Preferred Lenders
Program), such participation by the
Administration shall be equal to--
(i) 75 percent of the balance of the
financing outstanding at the time of
disbursement of the loan, if such
balance exceeds $150,000; or
(ii) 85 percent of the balance of the
financing outstanding at the time of
disbursement of the loan, if such
balance is less than or equal to
$150,000.
(B) Reduced participation upon request.--
(i) In general.--The guarantee
percentage specified by subparagraph
(A) for any loan under this subsection
may be reduced upon the request of the
participating lender.
(ii) Prohibition.--The Administration
shall not use the guarantee percentage
requested by a participating lender
under clause (i) as a criterion for
establishing priorities in approving
loan guarantee requests under this
subsection.
(C) Interest rate under preferred lenders
program.--
(i) In general.--The maximum interest
rate for a loan guaranteed under the
Preferred Lenders Program shall not
exceed the maximum interest rate, as
determined by the Administration,
applicable to other loans guaranteed
under this subsection.
(ii) Export-import bank lenders.--Any
lender that is participating in the
Delegated Authority Lender Program of
the Export-Import Bank of the United
States (or any successor to the
Program) shall be eligible to
participate in the Preferred Lenders
Program.
(iii) Preferred lenders program
defined.--For purposes of this
subparagraph, the term ``Preferred
Lenders Program'' means any program
established by the Administrator, as
authorized under the proviso in section
5(b)(7), under which a written
agreement between the lender and the
Administration delegates to the
lender--
(I) complete authority to
make and close loans with a
guarantee from the
Administration without
obtaining the prior specific
approval of the Administration;
and
(II) complete authority to
service and liquidate such
loans without obtaining the
prior specific approval of the
Administration for routine
servicing and liquidation
activities, but shall not take
any actions creating an actual
or apparent conflict of
interest.
(D) Participation under export working
capital program.--In an agreement to
participate in a loan on a deferred basis under
the Export Working Capital Program established
pursuant to paragraph (14)(A), such
participation by the Administration shall be 90
percent.
(E) Participation in international trade
loan.--In an agreement to participate in a loan
on a deferred basis under paragraph (16), the
participation by the Administration may not
exceed 90 percent.
(3) No loan shall be made under this subsection--
(A) if the total amount outstanding and
committed (by participation or otherwise) to
the borrower from the business loan and
investment fund established by this Act would
exceed $3,750,000 (or if the gross loan amount
would exceed $5,000,000), except as provided in
subparagraph (B);
(B) if the total amount outstanding and
committed (on a deferred basis) solely for the
purposes provided in paragraph (16) to the
borrower from the business loan and investment
fund established by this Act would exceed
$4,500,000 (or if the gross loan amount would
exceed $5,000,000), of which not more than
$4,000,000 may be used for working capital,
supplies, or financings under section 7(a)(14)
for export purposes; and
(C) if effected either directly or in
cooperation with banks or other lending
institutions through agreements to participate
on an immediate basis if the amount would
exceed $350,000.
(4) Interest rates and prepayment charges.--
(A) Interest rates.--Notwithstanding the
provisions of the constitution of any State or
the laws of any State limiting the rate or
amount of interest which may be charged, taken,
received, or reserved, the maximum legal rate
of interest on any financing made on a deferred
basis pursuant to this subsection shall not
exceed a rate prescribed by the Administration,
and the rate of interest for the
Administration's share of any direct or
immediate participation loan shall not exceed
the current average market yield on outstanding
marketable obligations of the United States
with remaining periods to maturity comparable
to the average maturities of such loans and
adjusted to the nearest one-eighth of 1 per
centum, and an additional amount as determined
by the Administration, but not to exceed 1 per
centum per annum: Provided, That for those
loans to assist any public or private
organization for the handicapped or to assist
any handicapped individual as provided in
paragraph (10) of this subsection, the interest
rate shall be 3 per centum per annum.
(B) Payment of accrued interest.--
(i) In general.--Any bank or other
lending institution making a claim for
payment on the guaranteed portion of a
loan made under this subsection shall
be paid the accrued interest due on the
loan from the earliest date of default
to the date of payment of the claim at
a rate not to exceed the rate of
interest on the loan on the date of
default, minus one percent.
(ii) Loans sold on secondary
market.--If a loan described in clause
(i) is sold on the secondary market,
the amount of interest paid to a bank
or other lending institution described
in that clause from the earliest date
of default to the date of payment of
the claim shall be no more than the
agreed upon rate, minus one percent.
(iii) Applicability.--Clauses (i) and
(ii) shall not apply to loans made on
or after October 1, 2000.
(C) Prepayment charges.--
(i) In general.--A borrower who
prepays any loan guaranteed under this
subsection shall remit to the
Administration a subsidy recoupment fee
calculated in accordance with clause
(ii) if--
(I) the loan is for a term of
not less than 15 years;
(II) the prepayment is
voluntary;
(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
disbursement 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 disbursement;
(II) 3 percent of the amount
of prepayment, if the borrower
prepays during the second year
after disbursement; and
(III) 1 percent of the amount
of prepayment, if the borrower
prepays during the third year
after disbursement.
(5) No such loans including renewals and extensions
thereof may be made for a period or periods exceeding
twenty-five years, except that such portion of a loan
made for the purpose of acquiring real property or
constructing, converting, or expanding facilities may
have a maturity of twenty-five years plus such
additional period as is estimated may be required to
complete such construction, conversion, or expansion.
(6) All loans made under this subsection shall be of
such sound value or so secured as reasonably to assure
repayment: Provided, however, That--
(A) for loans to assist any public or private
organization or to assist any handicapped
individual as provided in paragraph (10) of
this subsection any reasonable doubt shall be
resolved in favor of the applicant;
(B) recognizing that greater risk may be
associated with loans for energy measures as
provided in paragraph (12) of this subsection,
factors in determining ``sound value'' shall
include, but not be limited to, quality of the
product or service; technical qualifications of
the applicant or his employees; sales
projections; and the financial status of the
business concern: Provided further, That such
status need not be as sound as that required
for general loans under this subsection; and
On that portion of the loan used to refinance existing
indebtedness held by a bank or other lending
institution, the Administration shall limit the amount
of deferred participation to 80 per centum of the
amount of the loan at the time of disbursement:
Provided further, That any authority conferred by this
subparagraph on the Administration shall be exercised
solely by the Administration and shall not be delegated
to other than Administration personnel.
(7) The Administration may defer payments on the
principal of such loans for a grace period and use such
other methods as it deems necessary and appropriate to
assure the successful establishment and operation of
such concern.
(8) The Administration may make loans under this
subsection to small business concerns owned and
controlled by disabled veterans (as defined in section
4211(3) of title 38, United States Code).
(9) The Administration may provide loans under this
subsection to finance residential or commercial
construction or rehabilitation for sale: Provided,
however, That such loans shall not be used primarily
for the acquisition of land.
(10) The Administration may provide guaranteed loans
under this subsection to assist any public or private
organization for the handicapped or to assist any
handicapped individual, including service-disabled
veterans, in establishing, acquiring, or operating a
small business concern.
(11) The Administration may provide loans under this
subsection to any small business concern, or to any
qualified person seeking to establish such a concern
when it determines that such loan will further the
policies established in section 2(c) of this Act, with
particular emphasis on the preservation or
establishment of small business concerns located in
urban or rural areas with high proportions of
unemployed or low-income individuals or owned by low-
income individuals.
(12)(A) The Administration may provide loans under
this subsection to assist any small business concern,
including start up, to enable such concern to design
architecturally or engineer, manufacture, distribute,
market, install, or service energy measures: Provided,
however, That such loan proceeds shall not be used
primarily for research and development.
(b) The Administration may provide deferred participation
loans under this subsection to finance the planning, design, or
installation of pollution control facilities for the purposes
set forth in section 404 of the Small Business Investment Act
of 1958. Notwithstanding the limitation expressed in paragraph
(3) of this subsection, a loan made under this paragraph may
not result in a total amount outstanding and committed to a
borrower from the business loan and investment fund of more
than $1,000,000.
(13) The Administration may provide financing under
this subsection to State and local development
companies for the purposes of, and subject to the
restrictions in, title V of the Small Business
Investment Act of 1958.
(14) Export working capital program.--
(A) In general.--The Administrator may
provide extensions of credit, standby letters
of credit, revolving lines of credit for export
purposes, and other financing to enable small
business concerns, including small business
export trading companies and small business
export management companies, to develop foreign
markets. A bank or participating lending
institution may establish the rate of interest
on such financings as may be legal and
reasonable.
(B) Terms.--
(i) Loan amount.--The Administrator
may not guarantee a loan under this
paragraph of more than $5,000,000.
(ii) Fees.--
(I) In general.--For a loan
under this paragraph, the
Administrator shall collect the
fee assessed under paragraph
(23) not more frequently than
once each year.
(II) Untapped credit.--The
Administrator may not assess a
fee on capital that is not
accessed by the small business
concern.
(C) Considerations.--When considering loan or
guarantee applications, the Administration
shall give weight to export-related benefits,
including opening new markets for United States
goods and services abroad and encouraging the
involvement of small businesses, including
agricultural concerns, in the export market.
(D) Marketing.--The Administrator shall
aggressively market its export financing
program to small businesses.
(15)(A) The Administration may guarantee loans under
this subsection to qualified employee trusts with
respect to a small business concern for the purpose of
purchasing stock of the concern under a plan approved
by the Administrator which, when carried out, results
in the qualified employee trust owning at least 51 per
centum of the stock of the concern.
(B) The plan requiring the Administrator's approval
under subparagraph (A) shall be submitted to the
Administration by the trustee of such trust with its
application for the guarantee. Such plan shall include
an agreement with the Administrator which is binding on
such trust and on the small business concern and which
provides that--
(i) not later than the date the loan
guaranteed under subparagraph (A) is repaid (or
as soon thereafter as is consistent with the
requirements of section 401(a) of the Internal
Revenue Code of 1954), at least 51 per centum
of the total stock of such concern shall be
allocated to the accounts of at least 51 per
centum of the employees of such concern who are
entitled to share in such allocation,
(ii) there will be periodic reviews of the
role in the management of such concern of
employees to whose accounts stock is allocated,
and
(iii) there will be adequate management to
assure management expertise and continuity.
(C) In determining whether to guarantee any loan
under this paragraph, the individual business
experience or personal assets of employee-owners shall
not be used as criteria, except inasmuch as certain
employee-owners may assume managerial responsibilities,
in which case business experience may be considered.
(D) For purposes of this paragraph, a corporation
which is controlled by any other person shall be
treated as a small business concern if such corporation
would, after the plan described in subparagraph (B) is
carried out, be treated as a small business concern.
(E) The Administration shall compile a separate list
of applications for assistance under this paragraph,
indicating which applications were accepted and which
were denied, and shall report periodically to the
Congress on the status of employee-owned firms assisted
by the Administration.
(16) International trade.--
(A) In general.--If the Administrator
determines that a loan guaranteed under this
subsection will allow an eligible small
business concern that is engaged in or
adversely affected by international trade to
improve its competitive position, the
Administrator may make such loan to assist such
concern--
(i) in the financing of the
acquisition, construction, renovation,
modernization, improvement, or
expansion of productive facilities or
equipment to be used in the United
States in the production of goods and
services involved in international
trade;
(ii) in the refinancing of existing
indebtedness that is not structured
with reasonable terms and conditions,
including any debt that qualifies for
refinancing under any other provision
of this subsection; or
(iii) by providing working capital.
(B) Security.--
(i) In general.--Except as provided
in clause (ii), each loan made under
this paragraph shall be secured by a
first lien position or first mortgage
on the property or equipment financed
by the loan or on other assets of the
small business concern.
(ii) Exception.--A loan under this
paragraph may be secured by a second
lien position on the property or
equipment financed by the loan or on
other assets of the small business
concern, if the Administrator
determines the lien provides adequate
assurance of the payment of the loan.
(C) Engaged in international trade.--For
purposes of this paragraph, a small business
concern is engaged in international trade if,
as determined by the Administrator, the small
business concern is in a position to expand
existing export markets or develop new export
markets.
(D) Adversely affected by international
trade.--For purposes of this paragraph, a small
business concern is adversely affected by
international trade if, as determined by the
Administrator, the small business concern--
(i) is confronting increased
competition with foreign firms in the
relevant market; and
(ii) is injured by such competition.
(E) Findings by certain federal agencies.--
For purposes of subparagraph (D)(ii) the
Administrator shall accept any finding of
injury by the International Trade Commission or
any finding of injury by the Secretary of
Commerce pursuant to chapter 3 of title II of
the Trade Act of 1974.
(F) List of export finance lenders.--
(i) Publication of list required.--
The Administrator shall publish an
annual list of the banks and
participating lending institutions
that, during the 1-year period ending
on the date of publication of the list,
have made loans guaranteed by the
Administration under--
(I) this paragraph;
(II) paragraph (14); or
(III) paragraph (34).
(ii) Availability of list.--The
Administrator shall--
(I) post the list published
under clause (i) on the website
of the Administration; and
(II) make the list published
under clause (i) available,
upon request, at each district
office of the Administration.
(17) The Administration shall authorize lending
institutions and other entities in addition to banks to
make loans authorized under this subsection.
(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 not to exceed 2
percent of the deferred participation
share of a total loan amount that is
not more than $150,000.
(ii) A guarantee fee not to exceed 3
percent 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 not to exceed
3.5 percent of the deferred
participation share of a total loan
amount that is more than $700,000.
(iv) In addition to the fee under
clause (iii), a guarantee fee equal to
0.25 percent of any portion of the
deferred participation share that is
more than $1,000,000.
(B) Retention of certain fees.--Lenders
participating in the programs established under
this subsection may retain not more than 25
percent of a fee collected under subparagraph
(A)(i).
(19)(A) In addition to the Preferred Lenders Program
authorized by the proviso in section 5(b)(7), the
Administration is authorized to establish a Certified
Lenders Program for lenders who establish their
knowledge of Administration laws and regulations
concerning the guaranteed loan program and their
proficiency in program requirements. The designation of
a lender as a certified lender shall be suspended or
revoked at any time that the Administration determines
that the lender is not adhering to its rules and
regulations or that the loss experience of the lender
is excessive as compared to other lenders, but such
suspension or revocation shall not affect any
outstanding guarantee.
(B) In order to encourage all lending institutions
and other entities making loans authorized under this
subsection to provide loans of $50,000 or less in
guarantees to eligible small business loan applicants,
the Administration shall develop and allow
participating lenders to solely utilize a uniform and
simplified loan form for such loans.
(C) Authority to liquidate loans.--
(i) In general.--The Administrator
may permit lenders participating in the
Certified Lenders Program to liquidate
loans made with a guarantee from the
Administration pursuant to a
liquidation plan approved by the
Administrator.
(ii) Automatic approval.--If the
Administrator does not approve or deny
a request for approval of a liquidation
plan within 10 business days of the
date on which the request is made (or
with respect to any routine liquidation
activity under such a plan, within 5
business days) such request shall be
deemed to be approved.
(20)(A) The Administration is empowered to make loans
either directly or in cooperation with banks or other
financial institutions through agreements to
participate on an immediate or deferred (guaranteed)
basis to small business concerns eligible for
assistance under subsection (j)(10) and section 8(a).
Such assistance may be provided only if the
Administration determines that--
(i) the type and amount of such assistance
requested by such concern is not otherwise
available on reasonable terms from other
sources;
(ii) with such assistance such concern has a
reasonable prospect for operating soundly and
profitably within a reasonable period of time;
(iii) the proceeds of such assistance will be
used within a reasonable time for plant
construction, conversion, or expansion,
including the acquisition of equipment,
facilities, machinery, supplies, or material or
to supply such concern with working capital to
be used in the manufacture of articles,
equipment, supplies, or material for defense or
civilian production or as may be necessary to
insure a well-balanced national economy; and
(iv) such assistance is of such sound value
as reasonably to assure that the terms under
which it is provided will not be breached by
the small business concern.
(B)(i) No loan shall be made under this paragraph if
the total amount outstanding and committed (by
participation or otherwise) to the borrower would
exceed $750,000.
(ii) Subject to the provisions of clause (i), in
agreements to participate in loans on a deferred
(guaranteed) basis, participation by the Administration
shall be not less than 85 per centum of the balance of
the financing outstanding at the time of disbursement.
(iii) The rate of interest on financings made on a
deferred (guaranteed) basis shall be legal and
reasonable.
(iv) Financings made pursuant to this paragraph shall
be subject to the following limitations:
(I) No immediate participation may be
purchased unless it is shown that a deferred
participation is not available.
(II) No direct financing may be made unless
it is shown that a participation is
unavailable.
(C) A direct loan or the Administration's share of an
immediate participation loan made pursuant to this
paragraph shall be any secured debt instrument--
(i) that is subordinated by its terms to all
other borrowings of the issuer;
(ii) the rate of interest on which shall not
exceed the current average market yield on
outstanding marketable obligations of the
United States with remaining periods to
maturity comparable to the average maturities
of such loan and adjusted to the nearest one-
eighth of 1 per centum;
(iii) the term of which is not more than
twenty-five years; and
(iv) the principal on which is amortized at
such rate as may be deemed appropriate by the
Administration, and the interest on which is
payable not less often than annually.
(21)(A) The Administration may make loans on a guaranteed
basis under the authority of this subsection--
(i) to a small business concern that has been (or can
reasonably be expected to be) detrimentally affected
by--
(I) the closure (or substantial reduction) of
a Department of Defense installation; or
(II) the termination (or substantial
reduction) of a Department of Defense program
on which such small business was a prime
contractor or subcontractor (or supplier) at
any tier; or
(ii) to a qualified individual or a veteran seeking
to establish (or acquire) and operate a small business
concern.
(B) Recognizing that greater risk may be associated with a
loan to a small business concern described in subparagraph
(A)(i), any reasonable doubts concerning the firm's proposed
business plan for transition to nondefense-related markets
shall be resolved in favor of the loan applicant when making
any determination regarding the sound value of the proposed
loan in accordance with paragraph (6).
(C) Loans pursuant to this paragraph shall be authorized in
such amounts as provided in advance in appropriation Acts for
the purposes of loans under this paragraph.
(D) For purposes of this paragraph a qualified individual
is--
(i) a member of the Armed Forces of the United
States, honorably discharged from active duty
involuntarily or pursuant to a program providing
bonuses or other inducements to encourage voluntary
separation or early retirement;
(ii) a civilian employee of the Department of Defense
involuntarily separated from Federal service or retired
pursuant to a program offering inducements to encourage
early retirement; or
(iii) an employee of a prime contractor,
subcontractor, or supplier at any tier of a Department
of Defense program whose employment is involuntarily
terminated (or voluntarily terminated pursuant to a
program offering inducements to encourage voluntary
separation or early retirement) due to the termination
(or substantial reduction) of a Department of Defense
program.
(E) Job creation and community benefit.--In providing
assistance under this paragraph, the Administration
shall develop procedures to ensure, to the maximum
extent practicable, that such assistance is used for
projects that--
(i) have the greatest potential for--
(I) creating new jobs for individuals
whose employment is involuntarily
terminated due to reductions in Federal
defense expenditures; or
(II) preventing the loss of jobs by
employees of small business concerns
described in subparagraph (A)(i); and
(ii) have substantial potential for
stimulating new economic activity in
communities most affected by reductions in
Federal defense expenditures.
(22) The Administration is authorized to permit
participating lenders to impose and collect a
reasonable penalty fee on late payments of loans
guaranteed under this subsection in an amount not to
exceed 5 percent of the monthly loan payment per month
plus interest.
(23) Yearly fee.--
(A) In general.--With respect to each loan
approved under this subsection, the
Administration shall assess, collect, and
retain a fee, not to exceed 0.55 percent per
year of the outstanding balance of the deferred
participation share of the loan, in an amount
established once annually by the Administration
in the Administration's annual budget request
to Congress, as necessary to reduce to zero the
cost to the Administration of making guarantees
under this subsection. As used in this
paragraph, the term ``cost'' has the meaning
given that term in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a).
(B) Payer.--The yearly fee assessed under
subparagraph (A) shall be payable by the
participating lender and shall not be charged
to the borrower.
(C) Lowering of borrower fees.--If the
Administration determines that fees paid by
lenders and by small business borrowers for
guarantees under this subsection may be
reduced, consistent with reducing to zero the
cost to the Administration of making such
guarantees--
(i) the Administration shall first
consider reducing fees paid by small
business borrowers under clauses (i)
through (iii) of paragraph (18)(A), to
the maximum extent possible; and
(ii) fees paid by small business
borrowers shall not be increased above
the levels in effect on the date of
enactment of this subparagraph.
(24) Notification requirement.--The Administration
shall notify the Committees on Small Business of the
Senate and the House of Representatives not later than
15 days before making any significant policy or
administrative change affecting the operation of the
loan program under this subsection.
(25) Limitation on conducting pilot projects.--
(A) In general.--Not more than 10 percent of
the total number of loans guaranteed in any
fiscal year under this subsection may be
awarded as part of a pilot program which is
commenced by the Administrator on or after
October 1, 1996.
(B) Pilot program defined.--In this
paragraph, the term ``pilot program'' means any
lending program initiative, project,
innovation, or other activity not specifically
authorized by law.
(C) Low documentation loan program.--The
Administrator may carry out the low
documentation loan program for loans of
$100,000 or less only through lenders with
significant experience in making small business
loans. Not later than 90 days after the date of
enactment of this subsection, the Administrator
shall promulgate regulations defining the
experience necessary for participation as a
lender in the low documentation loan program.
(26) Calculation of subsidy rate.--All fees,
interest, and profits received and retained by the
Administration under this subsection shall be included
in the calculations made by the Director of the Office
of Management and Budget to offset the cost (as that
term is defined in section 502 of the Federal Credit
Reform Act of 1990) to the Administration of purchasing
and guaranteeing loans under this Act.
(28) Leasing.--In addition to such other lease
arrangements as may be authorized by the
Administration, 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 percent
of the total business space in the property.
(29) Real estate appraisals.--With respect 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 Administration
in connection with any such loan for more than
$250,000; or
(B) may be required by the Administration or
the lender in connection with any such loan for
$250,000 or less, if such appraisal is
necessary for appropriate evaluation of
creditworthiness.
(30) Ownership requirements.--Ownership requirements
to determine the eligibility of a small business
concern that applies for assistance under any credit
program under this Act shall be determined 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.
(31) Express loans.--
(A) Definitions.--As used in this paragraph:
(i) The term ``disaster area'' means
the area for which the President has
declared a major disaster, during the
5-year period beginning on the date of
the declaration.
(ii) The term ``express lender''
means any lender authorized by the
Administration to participate in the
Express Loan Program.
(iii) The term ``express loan'' means
any loan made pursuant to this
paragraph in which a lender utilizes to
the maximum extent practicable its own
loan analyses, procedures, and
documentation.
(iv) The term ``Express Loan
Program'' means the program for express
loans established by the Administration
under paragraph (25)(B), as in
existence on April 5, 2004, with a
guaranty rate of not more than 50
percent.
(B) Restriction to express lender.--The
authority to make an express loan shall be
limited to those lenders deemed qualified to
make such loans by the Administration.
Designation as an express lender for purposes
of making an express loan shall not prohibit
such lender from taking any other action
authorized by the Administration for that
lender pursuant to this subsection.
(C) Grandfathering of existing lenders.--Any
express lender shall retain such designation
unless the Administration determines that the
express lender has violated the law or
regulations promulgated by the Administration
or modifies the requirements to be an express
lender and the lender no longer satisfies those
requirements.
(D) Maximum loan amount.--The maximum loan
amount under the Express Loan Program is
$350,000.
(E) Option to participate.--Except as
otherwise provided in this paragraph, the
Administration shall take no regulatory,
policy, or administrative action, without
regard to whether such action requires
notification pursuant to paragraph (24), that
has the effect of requiring a lender to make an
express loan pursuant to subparagraph (D).
(F) Express loans for renewable energy and
energy efficiency.--
(i) Definitions.--In this
subparagraph--
(I) the term ``biomass''--
(aa) means any
organic material that
is available on a
renewable or recurring
basis, including--
(AA)
agricultural
crops;
(BB) trees
grown for
energy
production;
(CC) wood
waste and wood
residues;
(DD) plants
(including
aquatic plants
and grasses);
(EE)
residues;
(FF) fibers;
(GG) animal
wastes and
other waste
materials; and
(HH) fats,
oils, and
greases
(including
recycled fats,
oils, and
greases); and
(bb) does not
include--
(AA) paper
that is
commonly
recycled; or
(BB)
unsegregated
solid waste;
(II) the term ``energy
efficiency project'' means the
installation or upgrading of
equipment that results in a
significant reduction in energy
usage; and
(III) the term ``renewable
energy system'' means a system
of energy derived from--
(aa) a wind, solar,
biomass (including
biodiesel), or
geothermal source; or
(bb) hydrogen derived
from biomass or water
using an energy source
described in item (aa).
(ii) Loans.--The Administrator may
make a loan under the Express Loan
Program for the purpose of--
(I) purchasing a renewable
energy system; or
(II) carrying out an energy
efficiency project for a small
business concern.
(G) Guarantee fee waiver for veterans.--
(i) Guarantee fee waiver.--The
Administrator may not collect a
guarantee fee described in paragraph
(18) in connection with a loan made
under this paragraph to a veteran or
spouse of a veteran on or after October
1, 2015.
(ii) Exception.--If the President's
budget for the upcoming fiscal year,
submitted to Congress pursuant to
section 1105(a) of title 31, United
States Code, includes a cost for the
program established under this
subsection that is above zero, the
requirements of clause (i) shall not
apply to loans made during such
upcoming fiscal year.
(iii) Definition.--In this
subparagraph, the term ``veteran or
spouse of a veteran'' means--
(I) a veteran, as defined in
section 3(q)(4);
(II) an individual who is
eligible to participate in the
Transition Assistance Program
established under section 1144
of title 10, United States
Code;
(III) a member of a reserve
component of the Armed Forces
named in section 10101 of title
10, United States Code;
(IV) the spouse of an
individual described in
subclause (I), (II), or (III);
or
(V) the surviving spouse (as
defined in section 101 of title
38, United States Code) of an
individual described in
subclause (I), (II), or (III)
who died while serving on
active duty or as a result of a
disability that is service-
connected (as defined in such
section).
(H) Recovery opportunity loans.--
(i) In general.--The Administrator
may guarantee an express loan to a
small business concern located in a
disaster area in accordance with this
subparagraph.
(ii) Maximums.--For a loan guaranteed
under clause (i)--
(I) the maximum loan amount
is $150,000; and
(II) the guarantee rate shall
be not more than 85 percent.
(iii) Overall cap.--A loan guaranteed
under clause (i) shall not be counted
in determining the amount of loans made
to a borrower for purposes of
subparagraph (D).
(iv) Operations.--A small business
concern receiving a loan guaranteed
under clause (i) shall certify that the
small business concern was in operation
on the date on which the applicable
major disaster occurred as a condition
of receiving the loan.
(v) Repayment ability.--A loan
guaranteed under clause (i) may only be
made to a small business concern that
demonstrates, to the satisfaction of
the Administrator, sufficient capacity
to repay the loan.
(vi) Timing of payment of
guarantees.--
(I) In general.--Not later
than 90 days after the date on
which a request for purchase is
filed with the Administrator,
the Administrator shall
determine whether to pay the
guaranteed portion of the loan.
(II) Recapture.--
Notwithstanding any other
provision of law, unless there
is a subsequent finding of
fraud by a court of competent
jurisdiction relating to a loan
guaranteed under clause (i), on
and after the date that is 6
months after the date on which
the Administrator determines to
pay the guaranteed portion of
the loan, the Administrator may
not attempt to recapture the
paid guarantee.
(vii) Fees.--
(I) In general.--Unless the
Administrator has waived the
guarantee fee that would
otherwise be collected by the
Administrator under paragraph
(18) for a loan guaranteed
under clause (i), and except as
provided in subclause (II), the
guarantee fee for the loan
shall be equal to the guarantee
fee that the Administrator
would collect if the guarantee
rate for the loan was 50
percent.
(II) Exception.--Subclause
(I) shall not apply if the cost
of carrying out the program
under this subsection in a
fiscal year is more than zero
and such cost is directly
attributable to the cost of
guaranteeing loans under clause
(i).
(viii) Rules.--Not later than 270
days after the date of enactment of
this subparagraph, the Administrator
shall promulgate rules to carry out
this subparagraph.
(32) Loans for energy efficient technologies.--
(A) Definitions.--In this paragraph--
(i) the term ``cost'' has the meaning
given that term in section 502 of the
Federal Credit Reform Act of 1990 (2
U.S.C. 661a);
(ii) the term ``covered energy
efficiency loan'' means a loan--
(I) made under this
subsection; and
(II) the proceeds of which
are used to purchase energy
efficient designs, equipment,
or fixtures, or to reduce the
energy consumption of the
borrower by 10 percent or more;
and
(iii) the term ``pilot program''
means the pilot program established
under subparagraph (B)
(B) Establishment.--The Administrator shall
establish and carry out a pilot program under
which the Administrator shall reduce the fees
for covered energy efficiency loans.
(C) Duration.--The pilot program shall
terminate at the end of the second full fiscal
year after the date that the Administrator
establishes the pilot program.
(D) Maximum participation.--A covered energy
efficiency loan shall include the maximum
participation levels by the Administrator
permitted for loans made under this subsection.
(E) Fees.--
(i) In general.--The fee on a covered
energy efficiency loan shall be equal
to 50 percent of the fee otherwise
applicable to that loan under paragraph
(18).
(ii) Waiver.--The Administrator may
waive clause (i) for a fiscal year if--
(I) for the fiscal year
before that fiscal year, the
annual rate of default of
covered energy efficiency loans
exceeds that of loans made
under this subsection that are
not covered energy efficiency
loans;
(II) the cost to the
Administration of making loans
under this subsection is
greater than zero and such cost
is directly attributable to the
cost of making covered energy
efficiency loans; and
(III) no additional sources
of revenue authority are
available to reduce the cost of
making loans under this
subsection to zero.
(iii) Effect of waiver.--If the
Administrator waives the reduction of
fees under clause (ii), the
Administrator--
(I) shall not assess or
collect fees in an amount
greater than necessary to
ensure that the cost of the
program under this subsection
is not greater than zero; and
(II) shall reinstate the fee
reductions under clause (i)
when the conditions in clause
(ii) no longer apply.
(iv) No increase of fees.--The
Administrator shall not increase the
fees under paragraph (18) on loans made
under this subsection that are not
covered energy efficiency loans as a
direct result of the pilot program.
(F) GAO report.--
(i) In general.--Not later than 1
year after the date that the pilot
program terminates, the Comptroller
General of the United States shall
submit to the Committee on Small
Business of the House of
Representatives and the Committee on
Small Business and Entrepreneurship of
the Senate a report on the pilot
program.
(ii) Contents.--The report submitted
under clause (i) shall include--
(I) the number of covered
energy efficiency loans for
which fees were reduced under
the pilot program;
(II) a description of the
energy efficiency savings with
the pilot program;
(III) a description of the
impact of the pilot program on
the program under this
subsection;
(IV) an evaluation of the
efficacy and potential fraud
and abuse of the pilot program;
and
(V) recommendations for
improving the pilot program.
(33) Increased veteran participation program.--
(A) Definitions.--In this paragraph--
(i) the term ``cost'' has the meaning
given that term in section 502 of the
Federal Credit Reform Act of 1990 (2
U.S.C. 661a);
(ii) the term ``pilot program'' means
the pilot program established under
subparagraph (B); and
(iii) the term ``veteran
participation loan'' means a loan made
under this subsection to a small
business concern owned and controlled
by veterans of the Armed Forces or
members of the reserve components of
the Armed Forces.
(B) Establishment.--The Administrator shall
establish and carry out a pilot program under
which the Administrator shall reduce the fees
for veteran participation loans.
(C) Duration.--The pilot program shall
terminate at the end of the second full fiscal
year after the date that the Administrator
establishes the pilot program.
(D) Maximum participation.--A veteran
participation loan shall include the maximum
participation levels by the Administrator
permitted for loans made under this subsection.
(E) Fees.--
(i) In general.--The fee on a veteran
participation loan shall be equal to 50
percent of the fee otherwise applicable
to that loan under paragraph (18).
(ii) Waiver.--The Administrator may
waive clause (i) for a fiscal year if--
(I) for the fiscal year
before that fiscal year, the
annual estimated rate of
default of veteran
participation loans exceeds
that of loans made under this
subsection that are not veteran
participation loans;
(II) the cost to the
Administration of making loans
under this subsection is
greater than zero and such cost
is directly attributable to the
cost of making veteran
participation loans; and
(III) no additional sources
of revenue authority are
available to reduce the cost of
making loans under this
subsection to zero.
(iii) Effect of waiver.--If the
Administrator waives the reduction of
fees under clause (ii), the
Administrator--
(I) shall not assess or
collect fees in an amount
greater than necessary to
ensure that the cost of the
program under this subsection
is not greater than zero; and
(II) shall reinstate the fee
reductions under clause (i)
when the conditions in clause
(ii) no longer apply.
(iv) No increase of fees.--The
Administrator shall not increase the
fees under paragraph (18) on loans made
under this subsection that are not
veteran participation loans as a direct
result of the pilot program.
(F) GAO report.--
(i) In general.--Not later than 1
year after the date that the pilot
program terminates, the Comptroller
General of the United States shall
submit to the Committee on Small
Business of the House of
Representatives and the Committee on
Small Business and Entrepreneurship of
the Senate a report on the pilot
program.
(ii) Contents.--The report submitted
under clause (i) shall include--
(I) the number of veteran
participation loans for which
fees were reduced under the
pilot program;
(II) a description of the
impact of the pilot program on
the program under this
subsection;
(III) an evaluation of the
efficacy and potential fraud
and abuse of the pilot program;
and
(IV) recommendations for
improving the pilot program.
(34) Export express program.--
(A) Definitions.--In this paragraph--
(i) the term ``export development
activity'' includes--
(I) obtaining a standby
letter of credit when required
as a bid bond, performance
bond, or advance payment
guarantee;
(II) participation in a trade
show that takes place outside
the United States;
(III) translation of product
brochures or catalogues for use
in markets outside the United
States;
(IV) obtaining a general line
of credit for export purposes;
(V) performing a service
contract from buyers located
outside the United States;
(VI) obtaining transaction-
specific financing associated
with completing export orders;
(VII) purchasing real estate
or equipment to be used in the
production of goods or services
for export;
(VIII) providing term loans
or other financing to enable a
small business concern,
including an export trading
company and an export
management company, to develop
a market outside the United
States; and
(IX) acquiring, constructing,
renovating, modernizing,
improving, or expanding a
production facility or
equipment to be used in the
United States in the production
of goods or services for
export; and
(ii) the term ``express loan'' means
a loan in which a lender uses to the
maximum extent practicable the loan
analyses, procedures, and documentation
of the lender to provide expedited
processing of the loan application.
(B) Authority.--The Administrator may
guarantee the timely payment of an express loan
to a small business concern made for an export
development activity.
(C) Level of participation.--
(i) Maximum amount.--The maximum
amount of an express loan guaranteed
under this paragraph shall be $500,000.
(ii) Percentage.--For an express loan
guaranteed under this paragraph, the
Administrator shall guarantee--
(I) 90 percent of a loan that
is not more than $350,000; and
(II) 75 percent of a loan
that is more than $350,000 and
not more than $500,000.
(b) Except as to agricultural enterprises as defined in
section 18(b)(1) of this Act, the Administration also is
empowered to the extent and in such amounts as provided in
advance in appropriation Acts--
(1)(A) to make such loans (either directly or in
cooperation with banks or other lending institutions
through agreements to participate on an immediate or
deferred (guaranteed) basis) as the Administration may
determine to be necessary or appropriate to repair,
rehabilitate or replace property, real or personal,
damaged or destroyed by or as a result of natural or
other disasters: Provided, That such damage or
destruction is not compensated for by insurance or
otherwise: And provided further, That the
Administration may increase the amount of the loan by
up to an additional 20 per centum of the aggregate
costs of such damage or destruction (whether or not
compensated for by insurance or otherwise) if it
determines such increase to be necessary or appropriate
in order to protect the damaged or destroyed property
from possible future disasters by taking mitigating
measures, including--
(i) construction of retaining walls and sea
walls;
(ii) grading and contouring land; and
(iii) relocating utilities and modifying
structures, including construction of a safe
room or similar storm shelter designed to
protect property and occupants from tornadoes
or other natural disasters, if such safe room
or similar storm shelter is constructed in
accordance with applicable standards issued by
the Federal Emergency Management Agency;
(B) to refinance any mortgage or other lien against a
totally destroyed or substantially damaged home or
business concern: Provided, That no loan or guarantee
shall be extended unless the Administration finds that
(i) the applicant is not able to obtain credit
elsewhere; (ii) such property is to be repaired,
rehabilitated, or replaced; (iii) the amount refinanced
shall not exceed the amount of physical loss sustained;
and (iv) such amount shall be reduced to the extent
such mortgage or lien is satisfied by insurance or
otherwise; and
(C) during fiscal years 2000 through 2004, to
establish a predisaster mitigation program to make such
loans (either directly or in cooperation with banks or
other lending institutions through agreements to
participate on an immediate or deferred (guaranteed)
basis), as the Administrator may determine to be
necessary or appropriate, to enable small businesses to
use mitigation techniques in support of a formal
mitigation program established by the Federal Emergency
Management Agency, except that no loan or guarantee may
be extended to a small business under this subparagraph
unless the Administration finds that the small business
is otherwise unable to obtain credit for the purposes
described in this subparagraph;
(2) to make sure loans (either directly or in
cooperation with banks or other lending institutions
through agreements to participate on an immediate or
deferred (guaranteed) basis) as the Administration may
determine to be necessary or appropriate to any small
business concern, private nonprofit organization, or
small agricultural cooperative located in an area
affected by a disaster, (including drought), with
respect to both farm-related and nonfarm-related small
business concerns, if the Administration determines
that the concern, the organization, or the cooperative
has suffered a substantial economic injury as a result
of such disaster and if such disaster constitutes--
(A) a major disaster, as determined by the
President under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.); or
(B) a natural disaster, as determined by the
Secretary of Agriculture pursuant to section
321 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961), in which case,
assistance under this paragraph may be provided
to farm-related and nonfarm-related small
business concerns, subject to the other
applicable requirements of this paragraph; or
(C) a disaster, as determined by the
Administrator of the Small Business
Administration; or
(D) if no disaster declaration has been
issued pursuant to subparagraph (A), (B), or
(C), the Governor of a State in which a
disaster has occurred may certify to the Small
Business Administration that small business
concerns, private nonprofit organizations, or
small agricultural cooperatives (1) have
suffered economic injury as a result of such
disaster, and (2) are in need of financial
assistance which is not available on reasonable
terms in the disaster stricken area. Not later
than 30 days after the date of receipt of such
certification by a Governor of a State, the
Administration shall respond in writing to that
Governor on its determination and the reasons
therefore, and may then make such loans as
would have been available under this paragraph
if a disaster declaration had been issued.
Provided, That no loan or guarantee shall be extended
pursuant to this paragraph (2) unless the
Administration finds that the applicant is not able to
obtain credit elsewhere.
(3)(A) In this paragraph--
(i) the term ``essential employee'' means an
individual who is employed by a small business
concern and whose managerial or technical
expertise is critical to the successful day-to-
day operations of that small business concern;
(ii) the term ``period of military conflict''
has the meaning given the term in subsection
(n)(1); and
(iii) the term ``substantial economic
injury'' means an economic harm to a business
concern that results in the inability of the
business concern--
(I) to meet its obligations as they
mature;
(II) to pay its ordinary and
necessary operating expenses; or
(III) to market, produce, or provide
a product or service ordinarily
marketed, produced, or provided by the
business concern.
(B) The Administration may make such disaster loans
(either directly or in cooperation with banks or other
lending institutions through agreements to participate
on an immediate or deferred basis) to assist a small
business concern that has suffered or that is likely to
suffer substantial economic injury as the result of an
essential employee of such small business concern being
ordered to active military duty during a period of
military conflict.
(C) A small business concern described in
subparagraph (B) shall be eligible to apply for
assistance under this paragraph during the period
beginning on the date on which the essential employee
is ordered to active duty and ending on the date that
is 1 year after the date on which such essential
employee is discharged or released from active duty.
The Administrator may, when appropriate (as determined
by the Administrator), extend the ending date specified
in the preceding sentence by not more than 1 year.
(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 paragraph, either
directly or in cooperation with banks or other lending
institutions through agreements to participate on an
immediate or deferred basis, if the total amount
outstanding and committed to the borrower under this
subsection would exceed $1,500,000, unless such
applicant constitutes, or have become due to changed
economic circumstances, a major source of employment in
its surrounding area, as determined by the
Administration, in which case the Administration, in
its discretion, may waive the $1,500,000 limitation.
(F) For purposes of assistance under this paragraph,
no declaration of a disaster area shall be required.
(G)(i) Notwithstanding any other provision of
law, the Administrator may make a loan under
this paragraph of not more than $50,000 without
collateral.
(ii) The Administrator may defer payment of
principal and interest on a loan described in
clause (i) during the longer of--
(I) the 1-year period beginning on
the date of the initial disbursement of
the loan; and
(II) the period during which the
relevant essential employee is on
active duty.
(H) The Administrator shall give priority to
any application for a loan under this paragraph
and shall process and make a determination
regarding such applications prior to processing
or making a determination on other loan
applications under this subsection, on a
rolling basis.
(4) Coordination with fema.--
(A) In general.--Notwithstanding any other
provision of law, for any disaster declared
under this subsection or major disaster
(including any major disaster relating to which
the Administrator declares eligibility for
additional disaster assistance under paragraph
(9)), the Administrator, in consultation with
the Administrator of the Federal Emergency
Management Agency, shall ensure, to the maximum
extent practicable, that all application
periods for disaster relief under this Act
correspond with application deadlines
established under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5121 et seq.), or as extended by the
President.
(B) Deadlines.--Notwithstanding any other
provision of law, not later than 10 days before
the closing date of an application period for a
major disaster (including any major disaster
relating to which the Administrator declares
eligibility for additional disaster assistance
under paragraph (9)), the Administrator, in
consultation with the Administrator of the
Federal Emergency Management Agency, shall
submit to the Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives a report that includes--
(i) the deadline for submitting
applications for assistance under this
Act relating to that major disaster;
(ii) information regarding the number
of loan applications and disbursements
processed by the Administrator relating
to that major disaster for each day
during the period beginning on the date
on which that major disaster was
declared and ending on the date of that
report; and
(iii) an estimate of the number of
potential applicants that have not
submitted an application relating to
that major disaster.
(5) Public awareness of disasters.--If a disaster is
declared under this subsection or the Administrator
declares eligibility for additional disaster assistance
under paragraph (9), the Administrator shall make every
effort to communicate through radio, television, print,
and web-based outlets, all relevant information needed
by disaster loan applicants, including--
(A) the date of such declaration;
(B) cities and towns within the area of such
declaration;
(C) loan application deadlines related to
such disaster;
(D) all relevant contact information for
victim services available through the
Administration (including links to small
business development center websites);
(E) links to relevant Federal and State
disaster assistance websites, including links
to websites providing information regarding
assistance available from the Federal Emergency
Management Agency;
(F) information on eligibility criteria for
Administration loan programs, including where
such applications can be found; and
(G) application materials that clearly state
the function of the Administration as the
Federal source of disaster loans for homeowners
and renters.
(6) Authority for qualified private contractors.--
(A) Disaster loan processing.--The
Administrator may enter into an agreement with
a qualified private contractor, as determined
by the Administrator, to process loans under
this subsection in the event of a major
disaster (including any major disaster relating
to which the Administrator declares eligibility
for additional disaster assistance under
paragraph (9)), under which the Administrator
shall pay the contractor a fee for each loan
processed.
(B) Loan loss verification services.--The
Administrator may enter into an agreement with
a qualified lender or loss verification
professional, as determined by the
Administrator, to verify losses for loans under
this subsection in the event of a major
disaster (including any major disaster relating
to which the Administrator declares eligibility
for additional disaster assistance under
paragraph (9)), under which the Administrator
shall pay the lender or verification
professional a fee for each loan for which such
lender or verification professional verifies
losses.
(7) Disaster assistance employees.--
(A) In general.--In carrying out this
section, the Administrator may, where
practicable, ensure that the number of full-
time equivalent employees--
(i) in the Office of the Disaster
Assistance is not fewer than 800; and
(ii) in the Disaster Cadre of the
Administration is not fewer than 1,000.
(B) Report.--In carrying out this subsection,
if the number of full-time employees for either
the Office of Disaster Assistance or the
Disaster Cadre of the Administration is below
the level described in subparagraph (A) for
that office, not later than 21 days after the
date on which that staffing level decreased
below the level described in subparagraph (A),
the Administrator shall submit to the Committee
on Appropriations and the Committee on Small
Business and Entrepreneurship of the Senate and
the Committee on Appropriations and Committee
on Small Business of the House of
Representatives, a report--
(i) detailing staffing levels on that
date;
(ii) requesting, if practicable and
determined appropriate by the
Administrator, additional funds for
additional employees; and
(iii) containing such additional
information, as determined appropriate
by the Administrator.
(8) Increased loan caps.--
(A) Aggregate loan amounts.--Except as
provided in subparagraph (B), and
notwithstanding any other provision of law, the
aggregate loan amount outstanding and committed
to a borrower under this subsection may not
exceed $2,000,000.
(B) Waiver authority.--The Administrator may,
at the discretion of the Administrator,
increase the aggregate loan amount under
subparagraph (A) for loans relating to a
disaster to a level established by the
Administrator, based on appropriate economic
indicators for the region in which that
disaster occurred.
(9) Declaration of eligibility for additional
disaster assistance.--
(A) In general.--If the President declares a
major disaster, the Administrator may declare
eligibility for additional disaster assistance
in accordance with this paragraph.
(B) Threshold.--A major disaster for which
the Administrator declares eligibility for
additional disaster assistance under this
paragraph shall--
(i) have resulted in extraordinary
levels of casualties or damage or
disruption severely affecting the
population (including mass
evacuations), infrastructure,
environment, economy, national morale,
or government functions in an area;
(ii) be comparable to the description
of a catastrophic incident in the
National Response Plan of the
Administration, or any successor
thereto, unless there is no successor
to such plan, in which case this clause
shall have no force or effect; and
(iii) be of such size and scope
that--
(I) the disaster assistance
programs under the other
paragraphs under this
subsection are incapable of
providing adequate and timely
assistance to individuals or
business concerns located
within the disaster area; or
(II) a significant number of
business concerns outside the
disaster area have suffered
disaster-related substantial
economic injury as a result of
the incident.
(C) Additional economic injury disaster loan
assistance.--
(i) In general.--If the Administrator
declares eligibility for additional
disaster assistance under this
paragraph, the Administrator may make
such loans under this subparagraph
(either directly or in cooperation with
banks or other lending institutions
through agreements to participate on an
immediate or deferred basis) as the
Administrator determines appropriate to
eligible small business concerns
located anywhere in the United States.
(ii) Processing time.--
(I) In general.--If the
Administrator determines that
the average processing time for
applications for disaster loans
under this subparagraph
relating to a specific major
disaster is more than 15 days,
the Administrator shall give
priority to the processing of
such applications submitted by
eligible small business
concerns located inside the
disaster area, until the
Administrator determines that
the average processing time for
such applications is not more
than 15 days.
(II) Suspension of
applications from outside
disaster area.--If the
Administrator determines that
the average processing time for
applications for disaster loans
under this subparagraph
relating to a specific major
disaster is more than 30 days,
the Administrator shall suspend
the processing of such
applications submitted by
eligible small business
concerns located outside the
disaster area, until the
Administrator determines that
the average processing time for
such applications is not more
than 15 days.
(iii) Loan terms.--A loan under this
subparagraph shall be made on the same
terms as a loan under paragraph (2).
(D) Definitions.--In this paragraph--
(i) the term ``disaster area'' means
the area for which the applicable major
disaster was declared;
(ii) the term ``disaster-related
substantial economic injury'' means
economic harm to a business concern
that results in the inability of the
business concern to--
(I) meet its obligations as
it matures;
(II) meet its ordinary and
necessary operating expenses;
or
(III) market, produce, or
provide a product or service
ordinarily marketed, produced,
or provided by the business
concern because the business
concern relies on materials
from the disaster area or sells
or markets in the disaster
area; and
(iii) the term ``eligible small
business concern'' means a small
business concern--
(I) that has suffered
disaster-related substantial
economic injury as a result of
the applicable major disaster;
and
(II)(aa) for which not less
than 25 percent of the market
share of that small business
concern is from business
transacted in the disaster
area;
(bb) for which not less than
25 percent of an input into a
production process of that
small business concern is from
the disaster area; or
(cc) that relies on a
provider located in the
disaster area for a service
that is not readily available
elsewhere.
(10) Reducing closing and disbursement delays.--The
Administrator shall provide a clear and concise
notification on all application materials for loans
made under this subsection and on relevant websites
notifying an applicant that the applicant may submit
all documentation necessary for the approval of the
loan at the time of application and that failure to
submit all documentation could delay the approval and
disbursement of the loan.
(11) Increasing transparency in loan approvals.--The
Administrator shall establish and implement clear,
written policies and procedures for analyzing the
ability of a loan applicant to repay a loan made under
this subsection.
(12) Additional awards to small business development
centers, women's business centers, and score for
disaster recovery.--
(A) In general.--The Administration may
provide financial assistance to a small
business development center, a women's business
center described in section 29, the Service
Corps of Retired Executives, or any proposed
consortium of such individuals or entities to
spur disaster recovery and growth of small
business concerns located in an area for which
the President has declared a major disaster.
(B) Form of financial assistance.--Financial
assistance provided under this paragraph shall
be in the form of a grant, contract, or
cooperative agreement.
(C) No matching funds required.--Matching
funds shall not be required for any grant,
contract, or cooperative agreement under this
paragraph.
(D) Requirements.--A recipient of financial
assistance under this paragraph shall provide
counseling, training, and other related
services, such as promoting long-term
resiliency, to small business concerns and
entrepreneurs impacted by a major disaster.
(E) Performance.--
(i) In general.--The Administrator,
in cooperation with the recipients of
financial assistance under this
paragraph, shall establish metrics and
goals for performance of grants,
contracts, and cooperative agreements
under this paragraph, which shall
include recovery of sales, recovery of
employment, reestablishment of business
premises, and establishment of new
small business concerns.
(ii) Use of estimates.--The
Administrator shall base the goals and
metrics for performance established
under clause (i), in part, on the
estimates of disaster impact prepared
by the Office of Disaster Assistance
for purposes of estimating loan-making
requirements.
(F) Term.--
(i) In general.--The term of any
grant, contract, or cooperative
agreement under this paragraph shall be
for not more than 2 years.
(ii) Extension.--The Administrator
may make 1 extension of a grant,
contract, or cooperative agreement
under this paragraph for a period of
not more than 1 year, upon a showing of
good cause and need for the extension.
(G) Exemption from other program
requirements.--Financial assistance provided
under this paragraph is in addition to, and
wholly separate from, any other form of
assistance provided by the Administrator under
this Act.
(H) Competitive basis.--The Administration
shall award financial assistance under this
paragraph on a competitive basis.
(13) Supplemental assistance for contractor
malfeasance.--
(A) In general.--If a contractor or other
person engages in malfeasance in connection
with repairs to, rehabilitation of, or
replacement of real or personal property
relating to which a loan was made under this
subsection and the malfeasance results in
substantial economic damage to the recipient of
the loan or substantial risks to health or
safety, upon receiving documentation of the
substantial economic damage or the substantial
risk to health and safety from an independent
loss verifier, and subject to subparagraph (B),
the Administrator may increase the amount of
the loan under this subsection, as necessary
for the cost of repairs, rehabilitation, or
replacement needed to address the cause of the
economic damage or health or safety risk.
(B) Requirements.--The Administrator may only
increase the amount of a loan under
subparagraph (A) upon receiving an appropriate
certification from the borrower and person
performing the mitigation attesting to the
reasonableness of the mitigation costs and an
assignment of any proceeds received from the
person engaging in the malfeasance. The
assignment of proceeds recovered from the
person engaging in the malfeasance shall be
equal to the amount of the loan under this
section. Any mitigation activities shall be
subject to audit and independent verification
of completeness and cost reasonableness.
(14) Business recovery centers.--
(A) In general.--The Administrator, acting
through the district offices of the
Administration, shall identify locations that
may be used as recovery centers by the
Administration in the event of a disaster
declared under this subsection or a major
disaster.
(B) Requirements for identification.--Each
district office of the Administration shall--
(i) identify a location described in
subparagraph (A) in each county,
parish, or similar unit of general
local government in the area served by
the district office; and
(ii) ensure that the locations
identified under subparagraph (A) may
be used as a recovery center without
cost to the Government, to the extent
practicable.
(15) Increased oversight of economic injury disaster
loans.--The Administrator shall increase oversight of
entities receiving loans under paragraph (2), and may
consider--
(A) scheduled site visits to ensure borrower
eligibility and compliance with requirements
established by the Administrator; and
(B) reviews of the use of the loan proceeds
by an entity described in paragraph (2) to
ensure compliance with requirements established
by the Administrator.
No loan under this subsection, including renewals and
extensions thereof, may be made for a period or periods
exceeding thirty years: Provided, That the Administrator may
consent to a suspension in the payment of principal and
interest charges on, and to an extension in the maturity of,
the Federal share of any loan under this subsection for a
period not to exceed five years, if (A) the borrower under such
loan is a homeowner or a small business concern, (B) the loan
was made to enable (i) such homeowner to repair or replace his
home, or (ii) such concern to repair or replace plant or
equipment which was damaged or destroyed as the result of a
disaster meeting the requirements of clause (A) or (B) of
paragraph (2) of this subsection, and (C) the Administrator
determines such action is necessary to avoid severe financial
hardship: Provided further, That the provisions of paragraph
(1) of subsection (d) of this section shall not be applicable
to any such loan having a maturity in excess of twenty years.
Notwithstanding any other provision of law, and except as
provided in subsection (d), the interest rate on the
Administration's share of any loan made under subsection (b),
shall not exceed the average annual interest rate on all
interest-bearing obligations of the United States then forming
a part of the public debt as computed at the end of the fiscal
year next preceding the date of the loan and adjusted to the
nearest one-eight of 1 per centum plus one-quarter of 1 per
centum: Provided, however, That the interest rate for loans
made under paragraphs (1) and (2) hereof shall not exceed the
rate of interest which is in effect at the time of the
occurrence of the disaster. In agreements to participate in
loans on a deferred basis under this subsection, such
participation by the Administration shall not be in excess of
90 per centum of the balance of the loan outstanding at the
time of disbursement. Notwithstanding any other provision of
law, the interest rate on the Administration's share of any
loan made pursuant to paragraph (1) of this subsection to
repair or replace a primary residence and/or replace or repair
damaged or destroyed personal property, less the amount of
compensation by insurance or otherwise, with respect to a
disaster occurring on or after July 1, 1976, and prior to
October 1, 1978, shall be: 1 per centum on the amount of such
loan not exceeding $10,000, and 3 per centum on the amount of
such loan over $10,000 but not exceeding $40,000. The interest
rate on the Administration's share of the first $250,000 of all
other loans made pursuant to paragraph (1) of this subsection,
with respect to a disaster occurring on or after July 1, 1976,
and prior to October 1, 1978, shall be 3 per centum. All
repayments of principal on the Administration's share of any
loan made under the above provisions shall first be applied to
reduce the principal sum of such loan which bears interest at
the lower rates provided in this paragraph. The principal
amount of any loan made pursuant to paragraph (1) in connection
with a disaster which occurs on or after April 1, 1977, but
prior to January 1, 1978, may be increased by such amount, but
not more than $2,000, as the Administration determines to be
reasonable in light of the amount and nature of loss, damage,
or injury sustained in order to finance the installation of
insulation in the property which was lost, damaged, or injured,
if the uninsured, damaged portion of the property is 10 per
centum or more of the market value of the property at the time
of the disaster. No later than June 1, 1978, the Administration
shall prepare and transmit to the Select Committee on Small
Business of the Senate, the Committee on Small Business of the
House of Representatives, and the Committee of the Senate and
House of Representatives having jurisdiction over measures
relating to energy conservation, a report on its activities
under this paragraph, including therein an evaluation of the
effect of such activities on encouraging the installation of
insulation in property which is repaired or replaced after a
disaster which is subject to this paragraph, and its
recommendations with respect to the continuation, modification,
or termination of such activities.
In the administration of the disaster loan program under
paragraphs (1) and (2) of this subsection, in the case of
property loss or damage or injury resulting from a major
disaster as determined by the President or a disaster as
determined by the Administrator which occurs on or after
January 1, 1971, and prior to July 1, 1973, the Small Business
Administration, to the extent such loss or damage or injury is
not compensated for by insurance or otherwise--
(A) may make any loan for repair, rehabilitation, or
replacement of property damaged or destroyed without
regard to whether the required financial assistance is
otherwise available from private sources;
(B) may, in the case of the total destruction or
substantial property damage of a home or business
concern, refinance any mortgage or other liens
outstanding against the destroyed or damaged property
if such project is to be repaired, rehabilitated, or
replaced, except that (1) in the case of a business
concern, the amount refinanced shall not exceed the
amount of the physical loss sustained, and (2) in the
case of a home, the amount of each monthly payment of
principal and interest on the loan after refinancing
under this clause shall be not less than the amount of
each such payment made prior to such refinancing;
(C) may, in the case of a loan made under clause (A)
or a mortgage or other lien refinanced under clause (B)
in connection with the destruction of, or substantial
damage to, property owned and used as a residence by an
individual who by reason of retirement, disability, or
other similar circumstances relies for support on
survivor, disability, or retirement benefits under a
pension, insurance, or other program, consent to the
suspension of the payments of the principal of that
loan, mortgage, or lien during the lifetime of that
individual and his souse for so long as the
Administration determines that making such payments
would constitute a substantial hardship;
(D) shall, notwithstanding the provisions of any
other law and upon presentation by the applicant of
proof of loss or damage or injury and a bona fide
estimate of cost of repair, rehabilitation, or
replacement, cancel the principal of any loan made to
cover a loss or damage or injury resulting from such
disaster, except that--
(i) with respect to a loan made in connection
with a disaster occurring on or after January
1, 1971 but prior to January 1, 1972, the total
amount so canceled shall not exceed $2,500, and
the interest on the balance of the loan shall
be at a rate of 3 per centum per annum; and
(ii) with respect to a loan made in
connection with a disaster occurring on or
after January 1, 1972 but prior to July 1,
1973, the total amount so canceled shall not
exceed $5,000, and the interest on the balance
of the loan shall be at a rate of 1 per centum
per annum.
With respect to any loan referred to in clause (D) which is
outstanding on the date of enactment of this paragraph, the
Administrator shall--
(i) make sure change in the interest rate on the
balance of such loan as is required under that clause
effective as of such date of enactment; and
(ii) in applying the limitation set forth in that
clause with respect to the total amount of such loan
which may be canceled, consider as part of the amount
so canceled any part of such loan which was previously
canceled pursuant to section 231 of the Disaster Relief
Act of 1970.
Whoever wrongfully misapplies the proceeds of a loan obtained
under this subsection shall be civilly liable to the
Administrator in an amount equal to one-and-one-half times the
original principal amount of the loan.
(E) A State grant made on or prior to July 1, 1979,
shall not be considered compensation for the purpose of
applying the provisions of section 312(a) of the
Disaster Relief and Emergency Assistance Act to a
disaster loan under paragraph (1) (2)of this
subsection.
(c) Private Disaster Loans.--
(1) Definitions.--In this subsection--
(A) the term ``disaster area'' means any area
for which the President declared a major
disaster relating to which the Administrator
declares eligibility for additional disaster
assistance under subsection (b)(9), during the
period of that major disaster declaration;
(B) the term ``eligible individual'' means an
individual who is eligible for disaster
assistance under subsection (b)(1) relating to
a major disaster relating to which the
Administrator declares eligibility for
additional disaster assistance under subsection
(b)(9);
(C) the term ``eligible small business
concern'' means a business concern that is--
(i) a small business concern, as
defined under this Act; or
(ii) a small business concern, as
defined in section 103 of the Small
Business Investment Act of 1958;
(D) the term ``preferred lender'' means a
lender participating in the Preferred Lender
Program;
(E) the term ``Preferred Lender Program'' has
the meaning given that term in subsection
(a)(2)(C)(ii); and
(F) the term ``qualified private lender''
means any privately-owned bank or other lending
institution that--
(i) is not a preferred lender; and
(ii) the Administrator determines
meets the criteria established under
paragraph (10).
(2) Program required.--The Administrator shall carry
out a program, to be known as the Private Disaster
Assistance program, under which the Administration may
guarantee timely payment of principal and interest, as
scheduled, on any loan made to an eligible small
business concern located in a disaster area and to an
eligible individual.
(3) Use of loans.--A loan guaranteed by the
Administrator under this subsection may be used for any
purpose authorized under subsection (b).
(4) Online applications.--
(A) Establishment.--The Administrator may
establish, directly or through an agreement
with another entity, an online application
process for loans guaranteed under this
subsection.
(B) Other federal assistance.--The
Administrator may coordinate with the head of
any other appropriate Federal agency so that
any application submitted through an online
application process established under this
paragraph may be considered for any other
Federal assistance program for disaster relief.
(C) Consultation.--In establishing an online
application process under this paragraph, the
Administrator shall consult with appropriate
persons from the public and private sectors,
including private lenders.
(5) Maximum amounts.--
(A) Guarantee percentage.--The Administrator
may guarantee not more than 85 percent of a
loan under this subsection.
(B) Loan amount.--The maximum amount of a
loan guaranteed under this subsection shall be
$2,000,000.
(6) Terms and conditions.--A loan guaranteed under
this subsection shall be made under the same terms and
conditions as a loan under subsection (b).
(7) Lenders.--
(A) In general.--A loan guaranteed under this
subsection made to--
(i) a qualified individual may be
made by a preferred lender; and
(ii) a qualified small business
concern may be made by a qualified
private lender or by a preferred lender
that also makes loans to qualified
individuals.
(B) Compliance.--If the Administrator
determines that a preferred lender knowingly
failed to comply with the underwriting
standards for loans guaranteed under this
subsection or violated the terms of the
standard operating procedure agreement between
that preferred lender and the Administration,
the Administrator shall do 1 or more of the
following:
(i) Exclude the preferred lender from
participating in the program under this
subsection.
(ii) Exclude the preferred lender
from participating in the Preferred
Lender Program for a period of not more
than 5 years.
(8) Fees.--
(A) In general.--The Administrator may not
collect a guarantee fee under this subsection.
(B) Origination fee.--The Administrator may
pay a qualified private lender or preferred
lender an origination fee for a loan guaranteed
under this subsection in an amount agreed upon
in advance between the qualified private lender
or preferred lender and the Administrator.
(9) Documentation.--A qualified private lender or
preferred lender may use its own loan documentation for
a loan guaranteed by the Administrator under this
subsection, to the extent authorized by the
Administrator. The ability of a lender to use its own
loan documentation for a loan guaranteed under this
subsection shall not be considered part of the criteria
for becoming a qualified private lender under the
regulations promulgated under paragraph (10).
(10) Implementation regulations.--
(A) In general.--Not later than 1 year after
the date of enactment of the Small Business
Disaster Response and Loan Improvements Act of
2008, the Administrator shall issue final
regulations establishing permanent criteria for
qualified private lenders.
(B) Report to congress.--Not later than 6
months after the date of enactment of the Small
Business Disaster Response and Loan
Improvements Act of 2008, the Administrator
shall submit a report on the progress of the
regulations required by subparagraph (A) to the
Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives.
(11) Authorization of appropriations.--
(A) In general.--Amounts necessary to carry
out this subsection shall be made available
from amounts appropriated to the Administration
to carry out subsection (b).
(B) Authority to reduce interest rates and
other terms and conditions.--Funds appropriated
to the Administration to carry out this
subsection, may be used by the Administrator to
meet the loan terms and conditions specified in
paragraph (6).
(12) Purchase of loans.--The Administrator may enter
into an agreement with a qualified private lender or
preferred lender to purchase any loan guaranteed under
this subsection.
(d)(1) The Administration may further extend the maturity of
or renew any loan made pursuant to this section, or any loan
transferred to the Administration pursuant to Reorganization
Plan Numbered 2 of 1954, or Reorganization Plan Numbered 1 of
1957, for additional periods not to exceed ten years beyond the
period stated therein, if such extension or renewal will aid in
the orderly liquidation of such loan.
(2) During any period in which principal and interest
charges are suspended on the Federal share of any loan,
as provided in subsection (b), the Administrator shall,
upon the request of any person, firm, or corporation
having a participation in such loan, purchase such
participation, or assume the obligation of the
borrower, for the balance of such period, to make
principal and interest payments on the non-Federal
share of such loan: Provided, That no such payments
shall be made by the Administrator in behalf of any
borrower unless (i) the Administrator determines that
such action is necessary in order to avoid a default,
and (ii) the borrower agrees to make payments to the
Administration in an agreegate amount equal to the
amount paid in its behalf by the Administrator, in such
manner and at such time (during or after the term of
the loan) as the Administrator shall determine having
due regard to the purposes sought to be achieved by
this paragraph.
(3) With respect to a disaster occurring on or after
October 1, 1978, and prior the effective date of this
Act, on the Administration's share of loans made
pursuant to paragraph (1) of subsection (b)--
(A) if the loan proceeds are to
repair or replace a primary residence
and/or repair or replace damaged or
destroyed personal property, the
interest rate shall be 3 percent on the
first $55,000 of such loan;
(B) if the loan proceeds are to
repair or replace property damaged or
destroyed and if the applicant is a
business concern which is unable to
obtain sufficient credit elsewhere, the
interest rate shall be as determined by
the Administration, but not in excess
of 5 percent per annum; and
(C) if the loan proceeds are to repair or
replace property damaged or destroyed and if
the applicant is a business concern which is
able to obtain sufficient credit elsewhere, the
interest rate shall not exceed the current
average market yield on outstanding marketable
obligations of the United States with remaining
periods to maturity comparable to the average
maturities of such loans and adjusted to the
nearest one-eight of 1 percent, and an
additional amount as determined by the
Administration, but not to exceed 1 percent:
Provided, That three years after such loan is
fully disbursed and every two years thereafter
for the term of the loan, if the Administration
determines that the borrower is able to obtain
a loan from one-Federal sources at reasonable
rates and terms for loans of similar purposes
and periods of time, the borrower shall, upon
request by the Administration, apply for and
accept such a loan in sufficient amount to
repay the Administration: Provided further,
That no loan under subsection (b)(1) shall be
made, either directly or in cooperation with
banks or other lending institutions through
agreements to participate on an immediate or
deferred basis, if the total amount outstanding
and committed to the borrower under such
subsection would exceed $500,000 for each
disaster, unless an applicant constitutes a
major source of employment in an area suffering
a disaster, in which case the Administration,
in its discretion, may waive the $500,000
limitation.
(4) Notwithstanding the provisions of any other law,
the interest rate on the Federal share of any loan made
under subsection (b) shall be--
(A) in the case of a homeowner unable to
secure credit elsewhere, the rate prescribed by
the Administration but not more than one-half
the rate determined by the Secretary of the
Treasury taking into consideration the current
average market yield on outstanding marketable
obligations of the United States with remaining
periods to maturity comparable to the average
maturities of such loans plus an additional
charge of not to exceed 1 per centum per annum
as determined by the Administrator, and
adjusted to the nearest one-eight of 1 per
centum but not to exceed 8 per centum per
annum;
(B) in the case of a homeowner able to secure
credit elsewhere, the rate prescribed by the
Administration but not more than the rate
determined by the Secretary of the Treasury
taking into consideration the current average
market yield on outstanding marketable
obligations of the United States with remaining
periods to maturity comparable to the average
maturities of such loans plus an additional
charge of not to exceed 1 per centum per annum
as determined by the Administrator, and
adjusted to the nearest one-eighth of 1 per
centum;
(C) in the case of a business concern unable
to obtain credit elsewhere, not to exceed 8 per
centum per annum;
(D) in the case of a business concern able to
obtain credit elsewhere, the rate prescribed by
the Administration but not in excess of the
rate prevailing in private market for similar
loans and not more than the rate prescribed by
the Administration as the maximum interest rate
for deferred participation (guaranteed) loans
under section 7(a) of this Act. Loans under
this subparagraph shall be limited to a maximum
term of three years.
(5) Notwithstanding the provisions of any other law,
the interest rate on the Federal share of any loan made
under subsection (b)(1) and (b)(2) on account of a
disaster commencing on or after October 1, 1982, shall
be--
(A) in the case of a homeowner unable to
secure credit elsewhere, the rate prescribed by
the Administration but not more than one-half
the rate determined by the Secretary of the
Treasury taking into consideration the current
average market yield on outstanding marketable
obligations of the United States with remaining
periods to maturity comparable to the average
maturities of such loan plus an additional
charge of not to exceed 1 per centum per annum
as determined by the Administrator, and
adjusted to the nearest one-eighth of 1 per
centum, but not to exceed 4 per centum per
annum;
(B) in the case of a homeowner, able to
secure credit elsewhere, the rate prescribed by
the Administration but not more than the rate
determined by the Secretary of the Treasury
taking into consideration the current average
market yield on outstanding marketable
obligations of the United States with remaining
periods to maturity comparable to the average
maturities of such loans plus an additional
charge of not to exceed 1 per centum per annum
as determined by the Administrator, and
adjusted to the nearest one-eighth of 1 per
centum, but not to exceed 8 per centum per
annum;
(C) in the case of a business, private
nonprofit organization, or other concern,
including agricultural cooperatives, unable to
obtain credit elsewhere, not to exceed 4 per
centum per annum;
(D) in the case of a business concern able to
obtain credit elsewhere, the rate prescribed by
the Administration but not in excess of the
lowest of (i) the rate prevailing in the
private market for similar loans, (ii) the rate
prescribed by the Administration as the maximum
interest rate for deferred participation
(guaranteed) loans under section 7(a) of this
Act, or (iii) 8 per centum per annum. Loans
under this subparagraph shall be limited to a
maximum term of 7 years.
(6) Notwithstanding the provisions of any other law,
such loans, subject to the reductions required by
subparagraphs (A) and (B) of paragraph 7(b)(1), shall
be in amounts equal to 100 per centum of loss. The
interest rate for loans made under paragraphs 7(b)(1)
and (2), as determined pursuant to paragraph (5), shall
be the rate of interest which is in effect on the date
of the disaster commenced: Provided, That no loan under
paragraphs 7(b) (1) and (2) shall be made, either
directly or in cooperation with banks or other lending
institutions through agreements to participate on an
immediate or deferred (guaranteed) basis, if the total
amount outstanding and committed to the borrower under
subsection 7(b) would exceed $500,000 for each disaster
unless an applicant constitutes a major source of
employment in an area suffering a disaster, in which
case the Administration, in its discretion, may waive
the $500,000 limitation: Provided further, That the
Administration, subject to the reductions required by
subparagraphs (A) and (B) of paragraph 7(b)(1), shall
not reduce the amount of eligibility for any homeowner
on account of loss of real estate to less than $100,000
for each disaster nor for any homeowner or lessee on
account of loss of personal property to less than
$20,000 for each disaster, such sums being in addition
to any eligible refinancing: Provided further, That the
Administration shall not require collateral for loans
of $25,000 or less (or such higher amount as the
Administrator determines appropriate in the event of a
disaster) which are made under paragraph (1) of
subsection (b): Provided further, That the
Administrator, in obtaining the best available
collateral for a loan of not more than $200,000 under
paragraph (1) or (2) of subsection (b) relating to
damage to or destruction of the property of, or
economic injury to, a small business concern, shall not
require the owner of the small business concern to use
the primary residence of the owner as collateral if the
Administrator determines that the owner has other
assets of equal quality and with a value equal to or
greater than the amount of the loan that could be used
as collateral for the loan: Provided further, That
nothing in the preceding proviso may be construed to
reduce the amount of collateral required by the
Administrator in connection with a loan described in
the preceding proviso or to modify the standards used
to evaluate the quality (rather than the type) of such
collateral. Employees of concerns sharing a common
business premises shall be aggregated in determining
``major source of employment'' status for nonprofit
applicants owning such premises.
With respect to any loan which is outstanding on the date of
enactment of this paragraph and which was made on account of a
disaster commencing on or after October 1, 1982, the
Administrator shall made such change in the interest rate on
the balance of such loan as is required herein effective as of
the date of enactment.
(7) The Administration shall not withhold disaster assistance
pursuant to this paragraph to nurseries who are victims of
drought disasters. As used in section 7(b)(2) the term ``an
area affected by a disaster'' includes any county, or county
contiguous thereto, determined to be a disaster by the
President, the Secretary of Agriculture or the Administrator of
the Small Business Administration.
(8) Disaster loans for superstorm sandy.--
(A) In general.--Notwithstanding any other
provision of law, and subject to the same
requirements and procedures that are used to
make loans pursuant to subsection (b), a small
business concern, homeowner, nonprofit entity,
or renter that was located within an area and
during the time period with respect to which a
major disaster was declared by the President
under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5170) by reason of Superstorm Sandy
may apply to the Administrator--
(i) for a loan to repair,
rehabilitate, or replace property
damaged or destroyed by reason of
Superstorm Sandy; or
(ii) if such a small business concern
has suffered substantial economic
injury by reason of Superstorm Sandy,
for a loan to assist such a small
business concern.
(B) Timing.--The Administrator shall select
loan recipients and make available loans for a
period of not less than 1 year after the date
on which the Administrator carries out this
authority.
(C) Inspector general review.--Not later than
6 months after the date on which the
Administrator begins carrying out this
authority, the Inspector General of the
Administration shall initiate a review of the
controls for ensuring applicant eligibility for
loans made under this paragraph.
(e) The Administration shall not fund any Small Business
Development Center or any variation thereof, except as
authorized in section 21 of this Act.
(f) Additional Requirements for 7(b) Loans.--
(1) Increased deferment authorized.--
(A) In general.--In making loans under
subsection (b), the Administrator may provide,
to the person receiving the loan, an option to
defer repayment on the loan.
(B) Period.--The period of a deferment under
subparagraph (A) may not exceed 4 years.
(g) Net Earnings Clauses Prohibited for 7(b) Loans.--In
making loans under subsection (b), the Administrator shall not
require the borrower to pay any non-amortized amount for the
first five years after repayment begins.
(e) [RESERVED].
(f) [RESERVED].
(h)(1) The Administration also is empowered, where other
financial assistance is not available on reasonable terms, to
make such loans (either directly or in cooperation with Banks
or other lending institutions through agreements to participate
on an immediate or deferred basis) as the Administration may
determine to be necessary or appropriate--
(A) to assist any public or private organization--
(i) which is organized under the laws of the
United States or of any State, operated in the
interest of handicapped individuals, the net
income of which does not inure in whole or in
part to the benefit of any shareholder or other
individual;
(ii) which complies with any applicable
occupational health and safety standard
prescribed by the Secretary of Labor; and
(iii) which, in the production of commodities
and in the provision of services during any
fiscal year in which it receives financial
assistance under this subsection, employs
handicapped individuals for not less than 75
per centum of the man-hours required for the
production or provision of the commodities or
services; or
(B) to assist any handicapped individual in
establishing, acquiring, or operating a small business
concern.
(2) The Administration's share of any loan made under this
subsection shall not exceed $350,000, nor may any such loan be
made if the total amount outstanding and committed (by
participation or otherwise) to the borrower from the business
loan and investment fund established by section 4(c)(1)(B) of
this Act would exceed $350,000. In agreements to participate in
loans on a deferred basis under this subsection, the
Administration's participation may total 100 per centum of the
balance of the loan at the time of disbursement. The
Administration's share of any loan made under this subsection
shall bear interest at the rate of 3 per centum per annum. The
maximum term of any such loan, including extensions and
renewals thereof, may not exceed fifteen years. All loans made
under this subsection shall be of such sound value or so
secured as reasonably to assure repayment: Provided, however,
That any reasonable doubt shall be resolved in favor of the
applicant.
(3) For purposes of this subsection, the term ``handicapped
individual'' means a person who has a physical, mental, or
emotional impairment, defect, ailment, disease, or disability
of a permanent nature which in any way limits the selection of
any type of employment for which the person would otherwise be
qualified or qualifiable.
(i)(1) The Administration also is empowered to make,
participate (on an immediate basis) in, or guarantee loans,
repayable in not more than fifteen years, to any small business
concern, or to any qualified person seeking to establish such a
concern, when it determines that such loans will further the
policies established in section 2(b) of this Act, with
particular emphasis on the preservation or establishment of
small business concerns located in urban or rural areas with
high proportions of unemployed or low-income individuals, or
owned by low-income individuals: Provided, however, That no
such loans shall be made, participated in, or guaranteed if the
total of such Federal assistance to a single borrower
outstanding at any one time would exceed $100,000. The
Administration may defer payments on the principal of such
loans for a grace period and use such other methods as it deems
necessary and appropriate to assure the successful
establishment and operation of such concern. The Administration
may, in its discretion, as a condition of such financial
assistance, require that the borrower take steps to improve his
management skills by participating in a management training
program approved by the Administration: Provided, however, That
any management training program so approved must be of
sufficient scope and duration to provide reasonable opportunity
for the individuals served to develop entrepreneurial and
managerial self-sufficiency.
(2) The Administration shall encourage, as far as possible,
the participation of the private business community in the
program of assistance to such concerns, and shall seek to
stimulate new private lending activities to such concerns
through the use of the loan guarantees, participations in
loans, and pooling arrangements authorized by this subsection.
(3) To insure an equitable distribution between urban and
rural areas for loans between $3,500 and $100,000 made under
this subsection, the Administration is authorized to use the
agencies and agreements and delegations developed under title
III of the Economic Opportunity Act of 1964, as amended, as it
shall determine necessary.
(4) The Administration shall provide for the continuing
evaluation of programs under this subsection, including full
information on the location, income characteristics, and types
of businesses and individuals assisted, and on new private
lending activity stimulated, and the results of such evaluation
together with recommendations shall be included in the report
required by section 10(a) of this Act.
(5) Loans made pursuant to this subsection (including
immediate participation in and guarantees of such loans) shall
have such terms and conditions as the Administration shall
determine, subject to the following limitations--
(A) there is reasonable assurance of repayment of the
loan;
(B) the financial assistance is not otherwise
available on reasonable terms from private sources or
other Federal, State, or local programs;
(C) the amount of the loan, together with other funds
available, is adequate to assure completion of the
project or achievement of the purposes for which the
loan is made;
(D) the loan bears interest at a rate not less than
(i) a rate determined by the Secretary of the Treasury,
taking into consideration the average market yield on
outstanding Treasury obligations of comparable
maturity, plus (ii) such additional charge, if any,
toward covering other costs of the program as the
Administration may determine to be consistent with its
purposes: Provided, however, That the rate of interest
charged on loans made in redevelopment areas designated
under the Public Works and Economic Development Act of
1965 (42 U.S.C. 3108 et seq.) shall not exceed the rate
currently applicable to new loans made under section
201 of that Act (42 U.S.C. 3142); and
(E) fees not in excess of amounts necessary to cover
administrative expenses and probable losses may be
required on loan guarantees.
(6) The Administration shall take such steps as may be
necessary to insure that, in any fiscal year, at least 50 per
centum of the amounts loaned or guaranteed pursuant to this
subsection are allotted to small business concerns located in
urban areas identified by the Administration as having high
concentrations of unemployed or low-income individuals or to
small business concerns owned by low-income individuals. The
Administration shall define the meaning of low income as it
applies to owners of small business concerns eligible to be
assisted under this subsection.
(7) No financial assistance shall be extended pursuant to
this subsection when the Administration determines that the
assistance will be used in relocating establishments from one
area to another if such relocation would result in an increase
in unemployment in the area of original location.
(j)(1) the Administration shall provide financial assistance
to public or private organizations to pay all or part of the
cost of projects designated to provide technical or management
assistance to individuals or enterprises eligible for
assistance under sections 7(i), 7(j)(10), and 8(a) of this Act,
with special attention to small businesses located in areas of
high concentration of unemployed or low-income individuals, to
small businesses eligible to receive contracts pursuant to
section 8(a) of this Act.
(2) Financial assistance under this subsection may be
provided for projects, including, but not limited to--
(A) planning and research, including feasibility
studies and market research;
(B) the identification and development of new
business opportunities;
(C) the furnishing of centralized services with
regard to public services and Federal Government
programs including programs authorized under sections
7(i), (7)(j)(10), and 8(a) of this Act;
(D) the establishment and strengthening of business
service agencies, including trade associations and
cooperative; and
(E) the furnishing of business counseling, management
training, and legal and other related services, with
special emphasis on the development of management
training programs using the resources of the business
community, including the development of management
training opportunities in existing business, and with
emphasis in all cases upon providing management
training of sufficient scope and duration to develop
entrepreneurial and managerial self-sufficiency on the
part of the individuals served.
(3) The Administration shall encourage the placement of
subcontracts by businesses with small business concerns located
in area of high concentration of unemployed or low-income
individuals, with small businesses owned by low-income
individuals, and with small businesses eligible to receive
contracts pursuant to section 8(a) of this Act. The
Administration may provide incentives and assistance to such
businesses that will aid in the training and upgrading of
potential subcontractors or other small business concerns
eligible for assistance under section 7(i), 7(j), and 8(a), of
this Act.
(4) The Administration shall give preference to projects
which promote the ownership, participation in ownership, or
management of small businesses owned by low-income individuals
and small businesses eligible to receive contracts pursuant to
section 8(a) of this Act.
(5) The financial assistance authorized for projects under
this subsection includes assistance advanced by grant,
agreement, or contract.
(6) The Administration is authorized to make payments under
grants and contracts entered into under this subsection in lump
sum or installments, and in advance or by way of reimbursement,
and in the case of grants, with necessary adjustments on
account of overpayments or underpayments.
(7) To the extent feasible, services under this subsection
shall be provided in a location which is easily accessible to
the individuals and small business concerns served.
(9) The Administration shall take such steps as may be
necessary and appropriate, in coordination and cooperation with
the heads of other Federal departments and agencies, to insure
that contracts, subcontracts, and deposits made by the Federal
Government or with programs aided with Federal funds are placed
in such way as to further the purposes of sections 7(i), 7(j),
and 8(a) of this Act.
(10) There is established with the Administration a small
business and capital ownership development program (hereinafter
referred to as the ``Program'') which shall provide assistance
exclusively for small business concerns eligible to receive
contracts pursuant to section 8(a) of this Act. The program,
and all other services and activities authorized under section
7(j) and 8(a) of this Act, shall be managed by the Associate
Administrator for Minority Small Business and Capital Ownership
Development under the supervision of, and responsible to, the
Administrator.
(A) The Program shall--
(i) assist small business concerns
participating in the Program (either through
public or private organizations) to develop and
maintain comprehensive business plans which set
forth the Program Participant's specific
business targets, objectives, and goals
developed and maintained in conformity with
subparagraph (D).
(ii) provide for such other nonfinancial
services as deemed necessary for the
establishment, preservation, and growth of
small business concerns participating in the
Program, including but not limited to (I) loan
packaging, (II) financing counseling, (III)
accounting and bookkeeping assistance, (IV)
marketing assistance, and (V) management
assistance;
(iii) assist small business concerns
participating in the Program to obtain equity
and debt financing;
(iv) establish regular performance monitoring
and reporting systems for small business
concerns participating in the Program to assure
compliance with their business plans;
(v) analyze and report the causes of success
and failure of small business concerns
participating in the Program; and
(vi) provide assistance necessary to help
small business concerns participating in the
Program to procure surety bonds, with such
assistance including, but not limited to, (I)
the preparation of application forms required
to receive a surety bond, (II) special
management and technical assistance designed to
meet the specific needs of small business
concerns participating in the Program and which
have received or are applying to receive a
surety bond, and (III) guarantee from the
Administration pursuant to title IV, part B of
the Small Business Investment Act of 1958.
(B) Small business concerns eligible to receive
contracts pursuant to section 8(a) of this Act shall
participate in the Program.
(C)(i) A small business concern participating in any
program or activity conducted under the authority of
this paragraph or eligible for the award of contracts
pursuant to section 8(a) on September 1, 1988, shall be
permitted continued participation and eligibility in
such program or activity for a period of time which is
the greater of--
(I) 9 years less the number of years since
the award of its first contract pursuant to
section 8(a); or
(II) its original fixed program participation
term (plus any extension thereof) assigned
prior to the effective date of this paragraph
plus eighteen months.
(ii) Nothing contained in this subparagraph shall be
deemed to prevent the Administration from instituting a
termination or graduation pursuant to subparagraph (F)
or (H) for issues unrelated to the expiration of any
time period limitation.
(D)(i) Promptly after certification under paragraph
(11) a Program Participant shall submit a business plan
(hereinafter referred to as the plan'') as described in
clause (ii) of this subparagraph for review by the
Business Opportunity Specialist assigned to assist such
Program Participant. The plan may be a revision of a
preliminary business plan submitted by the Program
Participant or required by the Administration as a part
of the application for certification under this section
and shall be designed to result in the Program
Participant eliminating the conditions or circumstances
upon which the Administration determined eligibility
pursuant to section 8(a)(6). Such plan, and subsequent
modifications submitted under clause (iii) of this
subparagraph, shall be approved by the business
opportunity specialist prior to the Program Participant
being eligible for award of a contract pursuant to
section 8(a).
(ii) The plans submitted under this
subparagraph shall include the following:
(I) An analysis of market potential,
competitive environment, and other
business analyses estimating the
Program Participant's prospects for
profitable operations during the term
of program participation and after
graduation.
(II) An analysis of the Program
Participant's strengths and weaknesses
with particular attention to correcting
any financial, managerial, technical,
or personnel conditions which are
likely to impede the small business
concern from receiving contracts other
than those awarded under section 8(a).
(III) Specific targets, objectives,
and goals, for the business development
of the Program Participant during the
next and succeeding years utilizing the
results of the analyses conducted
pursuant to subclauses (I) and (II).
(IV) A transition management plan
outlining specific steps to assure
profitable business operations after
graduation (to be incorporated into the
Program Participant's plan during the
first year of the transitional stage of
Program participation).
(V) Estimates of contract awards
pursuant to section 8(a) and from other
sources, which the Program Participant
will require to meet the specific
targets, objectives, and goals for the
years covered by its plan. The
estimates established shall be
consistent with the provisions of
subparagraph (I) and section 8(a).
(iii) Each Program Participant shall annually
review its currently approved plan with its
Business Opportunity Specialist and modify such
plan as may be appropriate. Any modified plan
shall be submitted to the Administration for
approval. The currently approved plan shall be
considered valid until such time as a modified
plan is approved by the Business Opportunity
Specialist. Annual reviews pertaining to years
in the transitional stage of program
participation shall require, as appropriate, a
written verification that such Program
Participant has complied with the requirements
of subparagraph (I) relating to attaining
business activity from sources other than
contracts awarded pursuant to section 8(a).
(iv) Each Program Participant shall annually
forecast its needs for contract awards under
section 8(a) for the next program year and the
succeeding program year during the review of
its business plan, conducted pursuant to clause
(iii). Such forecast shall be known as the
section 8(a) contract support level and shall
be included in the Program Participant's
business plan. Such forecast shall include--
(I) the aggregate dollar value of
contract support to be sought on a
noncompetitive basis under section
8(a), reflecting compliance with the
requirements of subparagraph (I)
relating to attaining business activity
from sources other than contracts
awarded pursuant to section 8(a),
(II) the types of contract
opportunities being sought, identified
by Standard Industrial Classification
(SIC) Code or otherwise,
(III) an estimate of the dollar value
of contract support to be sought on a
competitive basis, and
(IV) such other information as may be
requested by the Business Opportunity
Specialist to provide effective
business development assistance to the
Program Participant.
(E) A small business concern participating in the
program conducted under the authority of this paragraph
and eligible for the award of contracts pursuant to
section 8(a) shall be denied all such assistance if
such concern--
(i) voluntarily elects not to continue
participation;
(ii) completes the period of Program
participation as prescribed by paragraph (15);
(iii) is terminated pursuant to a termination
proceeding conducted in accordance with section
8(a)(9); or
(iv) is graduated pursuant to a graduation
proceeding conducted in accordance with section
8(a)(9).
(F) For the purposes of section and 8(a), the terms
``terminated'' or ``termination'' means the total
denial or suspension of assistance under this paragraph
or under section 8(a) prior to the graduation of the
participating small business concern or prior to the
expiration of the maximum program participation in
term. An action for termination shall be based upon
good cause, including--
(i) the failure by such concern to maintain
its eligibility for Program participation;
(ii) the failure of the concern to engage in
business practices that will promote its
competitiveness within a reasonable period of
time as evidenced by, among other indicators, a
pattern of unjustified delinquent performance
or terminations for default with respect to
contracts awarded under the authority of
section 8(a);
(iii) a demonstrated pattern of failing to
make required submissions or responses to the
Administration in a timely manner;
(iv) the willful violation of any rule or
regulation of the Administration pertaining to
material issues;
(v) the debarment of the concern or its
disadvantaged owners by any agency pursuant to
subpart 9.4 of title 48, Code of Federal
Regulations (or any successor regulation); or
(vi) the conviction of the disadvantaged
owner or an officer of the concern for any
offense indicating a lack of business integrity
including any conviction for embezzlement,
theft, forgery, bribery, falsification or
violation of section 16. For purposes of this
clause, no termination action shall be taken
with respect to a disadvantaged owner solely
because of the conviction of an officer of the
concern (who is other than a disadvantaged
owner) unless such owner conspired with,
abetted, or otherwise knowingly acquiesced in
the activity or omission that was the basis of
such officer's conviction.
(G) The Director of the Division may initiate a
termination proceeding by recommending such action to
the Associate Administrator for Minority Small Business
and Capital Ownership Development. Whenever the
Associate Administrator, or a designee of such officer,
determines such termination is appropriate, within 15
days after making such a determination the Program
Participant shall be provided a written notice of
intent to terminate, specifying the reasons for such
action. No Program Participant shall be terminated from
the Program pursuant to subparagraph (F) without first
being afforded an opportunity for a hearing in
accordance with section 8(a)(9).
(H) For the purposes of sections 7(j) and 8(a) the
term ``graduated'' or ``graduation'' means that the
Program Participant is recognized as successfully
completing the program by substantially achieving the
targets, objectives, and goals contained in the
concern's business plan thereby demonstrating its
ability to compete in the marketplace without
assistance under this section or section 8(a).
(I)(i) During the developmental stage of its
participation in the Program, a Program Participant
shall take all reasonable efforts within its control to
attain the targets contained in its business plan for
contracts awarded other than pursuant to section 8(a)
(hereinafter referred to as ``business activity
targets.''). Such efforts shall be made a part of the
business plan and shall be sufficient in scope and
duration to satisfy the Administration that the Program
Participant will engage a reasonable marketing strategy
that will maximize its potential to achieve its
business activity targets.
(ii) During the transitional stage of the Program a
Program Participant shall be subject to regulations
regarding business activity targets that are
promulgated by the Administration pursuant to clause
(iii);
(iii) The regulations referred to in clause (ii)
shall:
(I) establish business activity targets
applicable to Program Participants during the
fifth year and each succeeding year of Program
Participation; such targets, for such period of
time, shall reflect a reasonably consistent
increase in contracts awarded other than
pursuant to section 8(a), expressed as a
percentage of total sales; when promulgating
business activity targets the Administration
may establish modified targets for Program
Participants that have participated in the
Program for a period of longer than four years
on the effective date of this subparagraph;
(II) require a Program Participant to attain
its business activity targets;
(III) provide that, before the receipt of any
contract to be awarded pursuant to section
8(a), the Program Participant (if it is in the
transitional stage) must certify that it has
complied with the regulations promulgated
pursuant to subclause (II), or that it is in
compliance with such remedial measures as may
have been ordered pursuant to regulations
issued under subclause (V);
(IV) require the Administration to review
each Program Participant's performance
regarding attainment of business activity
targets during periodic reviews of such
Participant's business plan; and
(V) authorize the Administration to take
appropriate remedial measures with respect to a
Program Participant that has failed to attain a
required business activity target for the
purpose of reducing such Participant's
dependence on contracts awarded pursuant to
section 8(a); such remedial actions may
include, but are not limited to assisting the
Program Participant to expand the dollar volume
of its competitive business activity or
limiting the dollar volume of contracts awarded
to the Program Participant pursuant to section
8(a); except for actions that would constitute
a termination, remedial measures taken pursuant
to this subclause shall not be reviewable
pursuant to section 8(a)(9).
(J)(i) The Administration shall conduct an evaluation
of a Program Participant's eligibility for continued
participation in the Program whenever it receives
specific and credible information alleging that such
Program Participant no longer meets the requirements
for Program eligibility. Upon making a finding that a
Program Participant is no longer eligible, the
Administration shall initiate a termination proceeding
in accordance with subparagraph (F). A Program
Participant's eligibility for award of any contract
under the authority of section 8(a) may be suspended
pursuant to subpart 9.4 of title 48, Code of Federal
Regulations (or any successor regulation).
(ii)(I) Except as authorized by subclauses (II) or
(III), no award shall be made pursuant to section 8(a)
to a concern other than a small business concern.
(II) In determining the size of a small business
concern owned by a socially and economically
disadvantaged Indian tribe (or a wholly owned business
entity of such tribe), each firm's size shall be
independently determined without regard to its
affiliation with the tribe, any entity of the tribal
government, or any other business enterprise owned by
the tribe, unless the Administrator determines that one
or more such tribally owned business concerns have
obtained, or are likely to obtain, a substantial unfair
competitive advantage within an industry category.
(III) Any joint venture established under the
authority of section 602(b) of Public Law 100-656, the
``Business Opportunity Development Reform Act of
1988'', shall be eligible for award of a contract
pursuant to section 8(a).
(11)(A) The Associate Administrator for Minority Small
Business and Capital Ownership Development shall be responsible
for coordinating and formulating policies relating to Federal
assistance to small business concerns eligible for assistance
under section 7(i) of this Act and small business concerns
eligible to receive contracts pursuant to section 8(a) of this
Act.
(B)(i) Except as provided in clause (iii), no
individual who was determined pursuant to section 8(a)
to be socially and economically disadvantaged before
the effective date of this subparagraph shall be
permitted to assert such disadvantage with respect to
any other concern making application for certification
after such effective date.
(ii) Except as provided in clause (iii), any
individual upon whom eligibility is based
pursuant to section 8(a)(4) shall be permitted
to assert such eligibility for only one small
business concern.
(iii) A socially and economically
disadvantaged Indian tribe may own more than
one small business concern eligible for
assistance pursuant to section 7(j)(10) and
section 8(a) if--
(I) the Indian tribe does not own
another firm in the same industry which
has been determined to be eligible to
receive contracts under this program,
and
(II) the individuals responsible for
the management and daily operations of
the concern do not manage more than two
Program Participants.
(C) No concern, previously eligible for the award of
contracts pursuant to section 8(a), shall be subsequently
recertified for program participation if its prior
participation in the program was concluded for any of the
reasons described in paragraph (10)(E).
(D) A concern eligible for the award of contracts pursuant to
this subsection shall remain eligible for such contracts if
there is a transfer of ownership and control (as defined
pursuant to section 8(a)(4)) to individuals who are determined
to be socially and economically disadvantaged pursuant to
section 8(a). In the event of such a transfer, the concern, if
not terminated or graduated, shall be eligible for a period of
continued participation in the program not to exceed the time
limitations prescribed in paragraph (15).
(E) There is established a Division of Program Certification
and Eligibility (hereinafter referred to in this paragraph as
the Division'') that shall be made part of the Office of
Minority Small Business and Capital Ownership Development. The
Division shall be headed by a Director who shall report
directly to the Associate Administrator for Minority Small
Business and Capital Ownership Development. The Division shall
establish field offices within such regional offices of the
Administration as may be necessary to perform efficiently its
functions and responsibilities.
(F) Subject to the provisions of section 8(a)(9), the
functions and responsibility of the Division are to--
(i) receive, review and evaluate applications for
certification pursuant to paragraphs (4), (5), (6) and
(7) of section 8(a);
(ii) advise each program applicant within 15 days
after the receipt of an application as to whether such
application is complete and suitable for evaluation
and, if not, what matters must be rectified;
(iii) render recommendations on such applications to
the Associate Administrator for Minority Small Business
and Capital Ownership Development;
(iv) review and evaluate financial statements and
other submissions from concerns participating in the
program established by paragraph (10) to ascertain
continued eligibility to receive subcontracts pursuant
to section 8(a);
(v) make a request for the initiation of termination
or graduation proceedings, as appropriate, to the
Associate Administrator for Minority Small Business and
Capital Ownership Development;
(vi) make recommendations to the Associate
Administrator for Minority Small Business and Capital
Ownership Development concerning protests from
applicants that have been denied program admission;
(vii) decide protests regarding the status of a
concern as a disadvantaged concern for purposes of any
program or activity conducted under the authority of
subsection (d) of section 8, or any other provision of
Federal law that references such subsection for a
definition of program eligibility; and
(vii) implement such policy directives as may be
issued by the Associate Administrator for Minority
Small Business and Capital Ownership Development
pursuant to subparagraph (I) regarding, among other
things, the geographic distribution of concerns to be
admitted to the program and the industrial make-up of
such concerns.
(G) An applicant shall not be denied admission into the
program established by paragraph (10) due solely to a
determination by the Division that specific contract
opportunities are unavailable to assist in the development of
such concern unless--
(i) the Government has not previously procured and is
unlikely to procure the types of products or services
offered by the concern; or
(ii) the purchases of such products or services by
the Federal Government will not be in quantities
sufficient to support the developmental needs of the
applicant and other Program Participants providing the
same or similar items or services.
(H) Not later than 90 days after receipt of a
completed application for Program certification, the
Associate Administrator for Minority Small Business and
Capital Ownership Development shall certify a small
business concern as a Program Participant or shall deny
such application.
(I) Thirty days before the conclusion of each fiscal year,
the Director of the Division shall review all concerns that
have been admitted into the Program during the preceding 12-
month period. The review shall ascertain the number of
entrants, their geographic distribution and industrial
classification. The Director shall also estimate the expected
growth of the Program during the next fiscal year and the
number of additional Business Opportunity Specialists, if any,
that will be needed to meet the anticipated demand for the
Program. The findings and conclusions of the Director shall be
reported to the Associate Administrator for Minority Small
Business and Capital Ownership Development by September 30 of
each year. Based on such report and such additional data as may
be relevant, the Associate Administrator shall, by October 31
of each year, issue policy and program directives applicable to
such fiscal year that--
(i) establish priorities for the solicitation of
program applications from underrepresented regions and
industry categories;
(ii) assign staffing levels and allocate other
program resources as necessary to meet program needs;
and
(iii) establish priorities in the processing and
admission of new Program Participants as may be
necessary to achieve an equitable geographic
distribution of concerns and a distribution of concerns
across all industry categories in proportions needed to
increase significantly contract awards to small
business concerns owned and controlled by socially and
economically disadvantaged individuals. When
considering such increase the Administration shall give
due consideration to those industrial categories where
Federal purchases have been substantial but where the
participation rate of such concerns has been limited.
(12)(A) The Administration shall segment the Capital
Ownership Development Program into two stages: a developmental
stage; and a transitional stage.
(B) The developmental stage of program participation shall be
designed to assist the concern in its effort to overcome its
economic disadvantage by providing such assistance as may be
necessary and appropriate to access its markets and to
strengthen its financial and managerial skills.
(C) The transitional stage of program participation shall be
designed to overcome, insofar as practicable, the remaining
elements of economic disadvantage and to prepare such concern
for graduation from the program.
(13) A Program Participant, if otherwise eligible, shall be
qualified to receive the following assistance during the stages
of program participation specified in paragraph 12:
(A) Contract support pursuant to section 8(a).
(B) Financial assistance pursuant to section
7(a)(20).
(C) A maximum of two exemptions from the requirements
of section 1(a) of the Act entitled ``An Act providing
conditions for the purchase of supplies and the making
of contracts by the United States, and for other
purposes'', approved June 30, 1936 (49 Stat. 2036),
which exemptions shall apply only to contracts awarded
pursuant to section (8)(a) and shall only be used to
allow for contingent agreements by a small business
concern to acquire the machinery, equipment,
facilities, or labor needed to perform such contracts.
No exemption shall be made pursuant to this
subparagraph if the contract to which it pertains has
an anticipated value in excess of $10,000,000. This
subparagraph shall cease to be effective on October 1,
1992.
(D) A maximum of five exemptions from the
requirements of the Act entitled ``An Act requiring
contracts for the construction, alteration and repair
of any public building or public work of the United
States to be accompanied by a performance bond
protecting the United States and by an additional bond
for the protection of persons furnishing material and
labor for the construction, alteration, or repair of
said public buildings or public works'', approved
August 24, 1935 (49 Stat. 793), which exemptions shall
apply only to contracts awarded pursuant to section
8(a), except that, such exemptions may be granted under
this subparagraph only if--
(i) the Administration finds that such
concern is unable to obtain the requisite bond
or bonds from a surety and that no surety is
willing to issue a bond subject to the
guarantee provision of title IV of the Small
Business Investment Act of 1958 (15 U.S.C. 692
et seq.);
(ii) the Administration and the agency
providing the contracting opportunity have
provided for the protection of persons
furnishing materials or labor to the Program
Participant by arranging for the direct
disbursement of funds due to such persons by
the procuring agency or through any bank the
deposits of which are insured by the Federal
Deposit Insurance Corporation; and
(iii) the contract to which it pertains does
not exceed $3,000,000 in amount. This
subparagraph shall cease to be effective on
October 1, 1994.
(E) Financial assistance whereby the Administration
may purchase in whole or in part, and on behalf of such
concerns, skills training or upgrading for employees or
potential employees of such concerns. Such assistance
may be made without regard to section 18(a). Assistance
may be made by direct payment to the training provider
or by reimbursing the Program Participant or the
Participant's employee, if such reimbursement is found
to be reasonable and appropriate. For purposes of this
subparagraph the term ``training provider'' shall mean
an institution of higher education, a community or
vocational college, or an institution eligible to
provide skills training or upgrading under title I of
the Workforce Innovation and Opportunity Act. The
Administration shall, in consultation with the
Secretary of Labor, promulgate rules and regulations to
implement this subparagraph that establish acceptable
training and upgrading performance standards and
provide for such monitoring or audit requirements as
may be necessary to ensure the integrity of the
training effort. No financial assistance shall be
granted under the subparagraph unless the Administrator
determines that--
(i) such concern has documented that it has
first explored the use of existing cost-free or
cost-subsidized training programs offered by
public and private sector agencies working with
programs of employment and training and
economic development;
(ii) no more than five employees or potential
employees of such concern are recipients of any
benefits under this subparagraph at any one
time;
(iii) no more than $2,500 shall be made
available for any one employee or potential
employee;
(iv) the length of training or upgrading
financed by this subparagraph shall be no less
than one month nor more than six months;
(v) such concern has given adequate assurance
it will employ the trainee or upgraded employee
for at least six months after the training or
upgrading financed by this subparagraph has
been completed and each trainee or upgraded
employee has provided a similar assurance to
remain within the employ of such concern for
such period; if such concern, trainee, or
upgraded employee breaches this agreement, the
Administration shall be entitled to and shall
make diligent efforts to obtain from the
violating party the repayment of all funds
expended on behalf of the violating party, such
repayment shall be made to the Administration
together with such interest and costs of
collection as may be reasonable; the violating
party shall be barred from receiving any
further assistance under this subparagraph;
(vi) the training to be financed may take
place either at such concern's facilities or at
those of the training provider; and
(vii) such concern will maintain such records
as the Administration deems appropriate to
ensure that the provisions of this paragraph
and any other applicable law have not been
violated.
(F)(i) The transfer of technology or surplus property
owned by the United States to such a concern.
Activities designed to effect such transfer shall be
developed in cooperation with the heads of Federal
agencies and shall include the transfer by grant,
license, or sale of such technology or property to such
a concern. Such property may be transferred to Program
Participants on a priority basis. Technology or
property transferred under this subparagraph shall be
used by the concern during the normal conduct of its
business operation and shall not be sold or transferred
to any other party (other than the Government) during
such concern's term of participation in the Program and
for one year thereafter.
(ii)(I) In this clause--
(aa) the term ``covered period''
means the 2-year period beginning on
the date on which the President
declared the applicable major disaster;
and
(bb) the term ``disaster area'' means
the area for which the President has
declared a major disaster, during the
covered period.
(II) The Administrator may transfer
technology or surplus property under clause (i)
on a priority basis to a small business concern
located in a disaster area if--
(aa) the small business concern meets
the requirements for such a transfer,
without regard to whether the small
business concern is a Program
Participant; and
(bb) for a small business concern
that is a Program Participant, on and
after the date on which the President
declared the applicable major disaster,
the small business concern has not
received property under this
subparagraph on the basis of the status
of the small business concern as a
Program Participant.
(III) For any transfer of property under this
clause to a small business concern, the terms
and conditions shall be the same as a transfer
to a Program Participant, except that the small
business concern shall agree not to sell or
transfer the property to any party other than
the Federal Government during the covered
period.
(IV) A small business concern that receives a
transfer of property under this clause may not
receive a transfer of property under clause (i)
during the covered period.
(V) If a small business concern sells or
transfers property in violation of the
agreement described in subclause (III), the
Administrator may initiate proceedings to
prohibit the small business concern from
receiving a transfer of property under this
clause or clause (i), in addition to any other
remedy available to the Administrator.
(G) Training assistance whereby the Administration
shall conduct training sessions to assist individuals
and enterprises eligible to receive contracts under
section 8(a) in the development of business principles
and strategies to enhance their ability to successfully
compete for contracts in the marketplace.
(H) Joint ventures, leader-follower arrangements, and
teaming agreements between the Program Participant and
other Program Participants and other business concerns
with respect to contracting opportunities for the
research, development, full-scale engineering or
production of major systems. Such activities shall be
undertaken on the basis of programs developed by the
agency responsible for the procurement of the major
system, with the assistance of the Administration.
(I) Transitional management business planning
training and technical assistance.
(J) Program Participants in the developmental stage
of Program participation shall be eligible for the
assistance provided by subparagraphs (A), (B), (C),
(D), (E), (F), and (G).
(14) Program Participants in the transitional stage of
Program participation shall be eligible for the assistance
provided by subparagraphs (A), (B), (F), (G), (H), and (I) of
paragraph (13).
(15) Subject to the provisions of paragraph (10)(C), a small
business concern may receive developmental assistance under the
Program and contracts under section 8(a) for a total period of
not longer than nine years, measured from the date of its
certification under the authority of such section, of which--
(A) no more than four years may be spent in the
developmental stage of Program Participation; and
(B) no more than five years may be spent in the
transitional stage of Program Participation.
(16)(A) The Administrator shall develop and implement a
process for the systematic collection of data on the operations
of the Program established pursuant to paragraph (10).
(B) Not later than April 30 of each year, the Administrator
shall submit a report to the Congress on the Program that shall
include the following:
(i) The average personal net worth of individuals who
own and control concerns that were initially certified
for participation in the Program during the immediately
preceding fiscal year. The Administrator shall also
indicate the dollar distribution of net worths, at
$50,000 increments, of all such individuals found to be
socially and economically disadvantaged. For the first
report required pursuant to this paragraph the
Administrator shall also provide the data specified in
the preceding sentence for all eligible individuals in
the Program as of the effective date of this paragraph.
(ii) A description and estimate of the benefits and
costs that have accrued to the economy and the
Government in the immediately preceding fiscal year due
to the operations of those business concerns that were
performing contracts awarded pursuant to section 8(a).
(iii) A compilation and evaluation of those business
concerns that have exited the Program during the
immediately preceding three fiscal years. Such
compilation and evaluation shall detail the number of
concerns actively engaged in business operations, those
that have ceased or substantially curtailed such
operations, including the reasons for such actions, and
those concerns that have been acquired by other firms
or organizations owned and controlled by other than
socially and economically disadvantaged individuals.
For those businesses that have continued operations
after they exited from the Program, the Administrator
shall also separately detail the benefits and costs
that have accrued to the economy during the immediately
preceding fiscal year due to the operations of such
concerns.
(iv) A listing of all participants in the Program
during the preceding fiscal year identifying, by State
and by Region, for each firm: the name of the concern,
the race or ethnicity, and gender of the disadvantaged
owners, the dollar value of all contracts received in
the preceding year, the dollar amount of advance
payments received by each concern pursuant to contracts
awarded under section 8(a), and a description including
(if appropriate) an estimate of the dollar value of all
benefits received pursuant to paragraphs (13) and (14)
and section 7(a)(20) during such year.
(v) The total dollar value of contracts and options
awarded during the preceding fiscal year pursuant to
section 8(a) and such amount expressed as a percentage
of total sales of (I) all firms participating in the
Program during such year; and (II) of firms in each of
the nine years of program participation.
(vi) A description of such additional resources or
program authorities as may be required to provide the
types of services needed over the next two-year period
to service the expected portfolio of firms certified
pursuant to section 8(a).
(vii) The total dollar value of contracts and options
awarded pursuant to section 8(a), at such dollar
increments as the Administrator deems appropriate, for
each four digit standard industrial classification code
under which such contracts and options were classified.
(C) The first report required by subparagraph (B) shall
pertain to fiscal year 1990.
(k) In carrying out its functions under subsections 7(i),
7(j), and 8(a) of this Act, the Administration is authorized--
(1) to utilize, with their consent, the services and
facilities of Federal agencies without reimbursement,
and, with the consent of any State or political
subdivision of a State, accept and utilize the services
and facilities of such State or subdivision without
reimbursement;
(2) to accept, in the name of the Administration, and
employ or dispose of in furtherance of the purposes of
this Act, any money or property, real, personal, or
mixed, tangible, or intangible, received by gift,
device, bequest, or otherwise;
(3) to accept voluntary and uncompensated services,
notwithstanding the provisions of section 3679(b) of
the Revised Statutes (31 U.S.C. 655(b)); and
(4) to employ experts and consultants or
organizations thereof as authorized by section 15 of
the Administrative Expenses Act of 1946 (5 U.S.C. 55a),
except that no individual may be employed under the
authority of this subsection for more than one hundred
days in any fiscal year; to compensate individuals so
employed at rates not in excess of the daily equivalent
of the highest rate payable under section 5332 of title
5, United States Code, including traveltime; and to
allow them, while away from their homes or regular
places of business, travel expenses (including per diem
in lieu of subsistence) a authorized by section 5 of
such Act (5 U.S.C. 73b-2) for persons in the Government
service employed intermittently, while so employed:
Provided, however, That contracts for such employment
may be renewed annually.
(l) Small Business Intermediary Lending Pilot Program.--
(1) Definitions.--In this subsection--
(A) the term ``eligible intermediary''--
(i) means a private, nonprofit entity
that--
(I) seeks or has been awarded
a loan from the Administrator
to make loans to small business
concerns under this subsection;
and
(II) has not less than 1 year
of experience making loans to
startup, newly established, or
growing small business
concerns; and
(ii) includes--
(I) a private, nonprofit
community development
corporation;
(II) a consortium of private,
nonprofit organizations or
nonprofit community development
corporations; and
(III) an agency of or
nonprofit entity established by
a Native American Tribal
Government; and
(B) the term ``Program'' means the small
business intermediary lending pilot program
established under paragraph (2).
(2) Establishment.--There is established a 3-year
small business intermediary lending pilot program,
under which the Administrator may make direct loans to
eligible intermediaries, for the purpose of making
loans to startup, newly established, and growing small
business concerns.
(3) Purposes.--The purposes of the Program are--
(A) to assist small business concerns in
areas suffering from a lack of credit due to
poor economic conditions or changes in the
financial market; and
(B) to establish a loan program under which
the Administrator may provide loans to eligible
intermediaries to enable the eligible
intermediaries to provide loans to startup,
newly established, and growing small business
concerns for working capital, real estate, or
the acquisition of materials, supplies, or
equipment.
(4) Loans to eligible intermediaries.--
(A) Application.--Each eligible intermediary
desiring a loan under this subsection shall
submit an application to the Administrator that
describes--
(i) the type of small business
concerns to be assisted;
(ii) the size and range of loans to
be made;
(iii) the interest rate and terms of
loans to be made;
(iv) the geographic area to be served
and the economic, poverty, and
unemployment characteristics of the
area;
(v) the status of small business
concerns in the area to be served and
an analysis of the availability of
credit; and
(vi) the qualifications of the
applicant to carry out this subsection.
(B) Loan limits.--No loan may be made to an
eligible intermediary under this subsection if
the total amount outstanding and committed to
the eligible intermediary by the Administrator
would, as a result of such loan, exceed
$1,000,000 during the participation of the
eligible intermediary in the Program.
(C) Loan duration.--Loans made by the
Administrator under this subsection shall be
for a term of 20 years.
(D) Applicable interest rates.--Loans made by
the Administrator to an eligible intermediary
under the Program shall bear an annual interest
rate equal to 1.00 percent.
(E) Fees; collateral.--The Administrator may
not charge any fees or require collateral with
respect to any loan made to an eligible
intermediary under this subsection.
(F) Delayed payments.--The Administrator
shall not require the repayment of principal or
interest on a loan made to an eligible
intermediary under the Program during the 2-
year period beginning on the date of the
initial disbursement of funds under that loan.
(G) Maximum participants and amounts.--During
each of fiscal years 2011, 2012, and 2013, the
Administrator may make loans under the
Program--
(i) to not more than 20 eligible
intermediaries; and
(ii) in a total amount of not more
than $20,000,000.
(5) Loans to small business concerns.--
(A) In general.--The Administrator, through
an eligible intermediary, shall make loans to
startup, newly established, and growing small
business concerns for working capital, real
estate, and the acquisition of materials,
supplies, furniture, fixtures, and equipment.
(B) Maximum loan.--An eligible intermediary
may not make a loan under this subsection of
more than $200,000 to any 1 small business
concern.
(C) Applicable interest rates.--A loan made
by an eligible intermediary to a small business
concern under this subsection, may have a fixed
or a variable interest rate, and shall bear an
interest rate specified by the eligible
intermediary in the application of the eligible
intermediary for a loan under this subsection.
(D) Review restrictions.--The Administrator
may not review individual loans made by an
eligible intermediary to a small business
concern before approval of the loan by the
eligible intermediary.
(6) Termination.--The authority of the Administrator
to make loans under the Program shall terminate 3 years
after the date of enactment of the Small Business Job
Creation and Access to Capital Act of 2010.
(m) Microloan Program.--
(1)(A) Purposes.--The purposes of the Microloan
Program are--
(i) to assist women, low-income, veteran
(within the meaning of such term under section
3(q)), and minority entrepreneurs and business
owners and other individuals possessing the
capability to operate successful business
concerns;
(ii) to assist small business concerns in
those areas suffering from a lack of credit due
to economic downturns;
(iii) to establish a microloan program to be
administered by the Small Business
Administration--
(I) to make loans to eligible
intermediaries to enable such
intermediaries to provide small-scale
loans, particularly loans in amounts
averaging not more than $10,000, to
startup, newly established, or growing
small business concerns for working
capital or the acquisition of
materials, supplies, or equipment;
(II) to make grants to eligible
intermediaries that, together with non-
Federal matching funds, will enable
such intermediaries to provide
intensive marketing, management, and
technical assistance to microloan
borrowers;
(III) to make grants to eligible
nonprofit entities that, together with
non-Federal matching funds, will enable
such entities to provide intensive
marketing, management, and technical
assistance to assist low-income
entrepreneurs and other low-income
individuals obtain private sector
financing for their businesses, with or
without loan guarantees; and
(IV) to report to the Committees on
Small Business of the Senate and the
House of Representatives on the
effectiveness of the microloan program
and the advisability and feasibility of
implementing such a program nationwide;
and
(iv) to establish a welfare-to-work microloan
initiative, which shall be administered by the
Administration, in order to test the
feasibility of supplementing the technical
assistance grants provided under clauses (ii)
and (iii) of subparagraph (B) to individuals
who are receiving assistance under the State
program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), or
under any comparable State funded means tested
program of assistance for low-income
individuals, in order to adequately assist
those individuals in--
(I) establishing small businesses;
and
(II) eliminating their dependence on
that assistance.
(B) Establishment.--There is established a microloan
program, under which the Administration may--
(i) make direct loans to eligible
intermediaries, as provided under paragraph
(3), for the purpose of making short-term,
fixed interest rate microloans to startup,
newly established, and growing small business
concerns under paragraph (6);
(ii) in conjunction with such loans and
subject to the requirements of paragraph (4),
make grants to such intermediaries for the
purpose of providing intensive marketing,
management, and technical assistance to small
business concerns that are borrowers under this
subsection; and
(iii) subject to the requirements of
paragraph (5), make grants to nonprofit
entities for the purpose of providing
marketing, management, and technical assistance
to low-income individuals seeking to start or
enlarge their own businesses, if such
assistance includes working with the grant
recipient to secure loans in amounts not to
exceed $50,000 from private sector lending
institutions, with or without a loan guarantee
from the nonprofit entity.
(2) Eligibility for participation.--An intermediary
shall be eligible to receive loans and grants under
subparagraphs (B)(i) and (B)(ii) of paragraph (1) if
it--
(A) meets the definition in paragraph (10);
and
(B) has at least 1 year of experience making
microloans to startup, newly established, or
growing small business concerns and providing,
as an integral part of its microloan program,
intensive marketing, management, and technical
assistance to its borrowers.
(3) Loans to intermediaries.--
(A) Intermediary applications.--(i) In
general.--As part of its application for a
loan, each intermediary shall submit a
description to the Administration of--
(I) the type of businesses to be
assisted;
(II) the size and range of loans to
be made;
(III) the geographic area to be
served and its economic, proverty, and
unemployment characteristics;
(IV) the status of small business
concerns in the area to be served and
an analysis of their credit and
technical assistance needs;
(V) any marketing, management, and
technical assistance to be provided in
connection with a loan made under this
subsection;
(VI) the local economic credit
markets, including the costs associated
with obtaining credit locally;
(VII) the qualifications of the
applicant to carry out the purpose of
this subsection; and
(VIII) any plan to involve other
technical assistance providers (such as
counselors from the [Service Corps of
Retired Executives] SCORE program or
small business development centers) or
private sector lenders in assisting
selected business concerns.
(ii) Selection of intermediaries.--In
selecting intermediaries to participate in the
program established under this subsection, the
Administration shall give priority to those
applicants that provide loans in amounts
averaging not more than $10,000.
(B) Intermediary contribution.--As a
condition of any loan made to an intermediary
under subparagraph (B)(i) of paragraph (1), the
Administrator shall require the intermediary to
contribute not less than 15 percent of the loan
amount in cash from non-Federal sources.
(C) Loan limits.--Notwithstanding subsection
(a)(3), no loan shall be made under this
subsection if the total amount outstanding and
committed to one intermediary (excluding
outstanding grants) from the business loan and
investment fund established by this Act would,
as a result of such loan, exceed $750,000 in
the first year of such intermediary's
participation in the program, and $5,000,000 in
the remaining years of the intermediary's
participation in the program.
(D)(i) In general.--The Administrator shall,
by regulation, require each intermediary to
establish a loan loss reserve fund, and to
maintain such reserve fund until all
obligations owed to the Administration under
this subsection are repaid.
(ii) Level of loan loss reserve fund.--
(I) In general.--Subject to subclause
(III), the Administrator shall require
the loan loss reserve fund of an
intermediary to be maintained at a
level equal to 15 percent of the
outstanding balance of the notes
receivable owed to the intermediary.
(II) Review of loan loss reserve.--
After the initial 5 years of an
intermediary's participation in the
program authorized by this subsection,
the Administrator shall, at the request
of the intermediary, conduct a review
of the annual loss rate of the
intermediary. Any intermediary in
operation under this subsection prior
to October 1, 1994, that requests a
reduction in its loan loss reserve
shall be reviewed based on the most
recent 5-year period preceding the
request.
(III) Reduction of loan loss
reserve.--Subject to the requirements
of clause IV, the Administrator may
reduce the annual loan loss reserve
requirement of an intermediary to
reflect the actual average loan loss
rate for the intermediary during the
preceding 5-year period, except that in
no case shall the loan loss reserve be
reduced to less than 10 percent of the
outstanding balance of the notes
receivable owed to the intermediary.
(IV) Requirements.--The Administrator
may reduce the annual loan loss reserve
requirement of an intermediary only if
the intermediary demonstrates to the
satisfaction of the Administrator
that--
(aa) the average annual loss
rate for the intermediary
during the preceding 5-year
period is less than 15 percent;
and
(bb) that no other factors
exist that may impair the
ability of the intermediary to
repay all obligations owed to
the Administration under this
subsection.
(E) Unavailability of comparable credit.--An
intermediary may make a loan under this
subsection of more than $20,000 to a small
business concern only if such small business
concern demonstrates that it is unable to
obtain credit elsewhere at comparable interest
rates and that it has good prospects for
success. In no case shall an intermediary make
a loan under this subsection of more than
$50,000, or have outstanding or committed to
any 1 borrower more than $50,000.
(F) Loan duration; interest rates.--
(i) Loan duration.--Loans made by the
Administration under this subsection
shall be for a term of 10 years.
(ii) Applicable interest rates.--
Except as provided in clause (iii),
loans made by the Administration under
this subsection to an intermediary
shall bear an interest rate equal to
1.25 percentage points below the rate
determined by the Secretary of the
Treasury for obligations of the United
States with a period of maturity of 5
years, adjusted to the nearest one-
eighth of 1 percent.
(iii) Rates applicable to certain
small loans.--Loans made by the
Administration to an intermediary that
makes loans to small business concerns
and entrepreneurs averaging not more
than $7,500, shall bear an interest
rate that is 2 percentage points below
the rate determined by the Secretary of
the Treasury for obligations of the
United States with a period of maturity
of 5 years, adjusted to the nearest
one-eighth of 1 percent.
(iv) Rates applicable to multiple
sites or offices.--The interest rate
prescribed in clause (ii) or (iii)
shall apply to each separate loan-
making site or office of 1 intermediary
only if such site or office meets the
requirements of that clause.
(v) Rate basis.--The applicable rate
of interest under this paragraph
shall--
(I) be applied retroactively
for the first year of an
intermediary's participation in
the program, based upon the
actual lending practices of the
intermediary as determined by
the Administration prior to the
end of such year; and
(II) be based in the second
and subsequent years of an
intermediary's participation in
the program, upon the actual
lending practices of the
intermediary during the term of
the intermediary's
participation in the program.
(vii) Covered intermediaries.--The
interest rates prescribed in this
subparagraph shall apply to all loans
made to intermediaries under this
subsection on or after October 28,
1991.
(G) Delayed payments.--The Administration
shall not require repayment of interest or
principal of a loan made to an intermediary
under this subsection during the first year of
the loan.
(H) Fees; collateral.--Except as provided in
subparagraphs (B) and (D), the Administration
shall not charge any fees or require collateral
other than an assignment of the notes
receivable of the microloans with respect to
any loan made to an intermediary under this
subsection.
(4) Marketing, management and technical assistance
grants to intermediaries.--Grants made in accordance
with subparagraph (B)(ii) of paragraph (1) shall be
subject to the following requirements:
(A) Grant amounts.--Except as otherwise
provided in subparagraph (C) and subject to
subparagraph (B), each intermediary that
receives a loan under subparagraph (B)(i) of
paragraph (1) shall be eligible to receive a
grant to provide marketing, management, and
technical assistance to small business concerns
that are borrowers under this subsection.
Except as provided in subparagraph (C), each
intermediary meeting the requirements of
subparagraph (B) may receive a grant of not
more than 25 percent of the total outstanding
balance of loans made to it under this
subsection.
(B) Contribution.--As a condition of a grant
made under subparagraph (A), the Administrator
shall require the intermediary to contribute an
amount equal to 25 percent of the amount of the
grant, obtained solely from non-Federal
sources. In addition to cash or other direct
funding, the contribution may include indirect
costs or in-kind contributions paid for under
non-Federal programs.
(C) Additional technical assistance grants
for making certain loans.--
(i) In general.--In addition to
grants made under subparagraph (A),
each intermediary shall be eligible to
receive a grant equal to 5 percent of
the total outstanding balance of loans
made to the intermediary under this
subsection if--
(I) the intermediary provides
not less than 25 percent of its
loans to small business
concerns located in or owned by
one or more residents of an
economically distressed area;
or
(II) the intermediary has a
portfolio of loans made under
this subsection that averages
not more than $10,000 during
the period of the
intermediary's participation in
the program.
(ii) Purposes.--A grant awarded under
clause (i) may be used to provide
marketing, management, and technical
assistance to small business concerns
that are borrowers under this
subsection.
(iii) Contribution exception.--The
contribution requirements in
subparagraph (B) do not apply to grants
made under this subparagraph.
(D) Eligibility for multiple sites or
offices.--The eligibility for a grant described
in subparagraph (A) or (C) shall be determined
separately for each loan-making site or office
of 1 intermediary.
(E) Assistance to certain small business
concerns.--
(i) In general.--Each intermediary
may expend an amount not to exceed 25
percent of the grant funds received
under paragraph (1)(B)(ii) to provide
information and technical assistance to
small business concerns that are
prospective borrowers under this
subsection.
(ii) Technical assistance.--An
intermediary may expend not more than
25 percent of the funds received under
paragraph (1)(B)(ii) to enter into
third party contracts for the provision
of technical assistance.
(F) Supplemental grant.--
(i) In general.--The Administration
may accept any funds transferred to the
Administration from other departments
or agencies of the Federal Government
to make grants in accordance with this
subparagraph and section 202(b) of the
Small Business Reauthorization Act of
1997 to participating intermediaries
and technical assistance providers
under paragraph (5), for use in
accordance with clause (iii) to provide
additional technical assistance and
related services to recipients of
assistance under a State program
described in paragraph (1)(A)(iv) at
the time they initially apply for
assistance under this subparagraph.
(ii) Eligible recipients; grant
amounts.--In making grants under this
subparagraph, the Administration may
select, from among participating
intermediaries and technical assistance
providers described in clause (i), not
more than 20 grantees in fiscal year
1998, not more than 25 grantees in
fiscal year 1999, and not more than 30
grantees in fiscal year 2000, each of
whom may receive a grant under this
subparagraph in an amount not to exceed
$200,000 per year.
(iii) Use of grant amounts.--Grants
under this subparagraph--
(I) are in addition to other
grants provided under this
subsection and shall not
require the contribution of
matching amounts as a condition
of eligibility; and
(II) may be used by a
grantee--
(aa) to pay or
reimburse a portion of
child care and
transportation costs of
recipients of
assistance described in
clause (i), to the
extent such costs are
not otherwise paid by
State block grants
under the Child Care
Development Block Grant
Act of 1990 (42 U.S.C.
9858 et seq.) or under
part A of title IV of
the Social Security Act
(42 U.S.C. 601 et
seq.); and
(bb) for marketing,
management, and
technical assistance to
recipients of
assistance described in
clause (i).
(iv) Memorandum of understanding.--
Prior to accepting any transfer of
funds under clause (i) from a
department or agency of the Federal
Government, the Administration shall
enter into a Memorandum of
Understanding with the department or
agency, which shall--
(I) specify the terms and
conditions of the grants under
this subparagraph; and
(II) provide for appropriate
monitoring of expenditures by
each grantee under this
subparagraph and each recipient
of assistance described in
clause (i) who receives
assistance from a grantee under
this subparagraph, in order to
ensure compliance with this
subparagraph by those grantees
and recipients of assistance.
(5) Private sector borrowing technical assistance
grants.--Grants made in accordance with subparagraph
(B)(iii) of paragraph (1) shall be subject to the
following requirements:
(A) Grant amounts.--Subject to the
requirements of subparagraph (B), the
Administration may make not more than 55 grants
annually, each in amounts not to exceed
$200,000 for the purposes specified in
subparagraph (B)(iii) of paragraph (1).
(B) Contribution.--As a condition of any
grant made under subparagraph (A), the
Administration shall require the grant
recipient to contribute an amount equal to 20
percent of the amount of the grant, obtained
solely from non-Federal sources. In addition to
cash or other direct funding, the contribution
may include indirect costs or in-kind
contributions paid for under non-Federal
programs.
(6) Loans to small business concerns from eligible
intermediaries.--
(A) In general.--An eligible intermediary
shall make short-term, fixed rate loans to
startup, newly established, and growing small
business concerns from the funds made available
to it under subparagraph (B)(i) of paragraph
(1) for working capital and the acquisition of
materials, supplies, furniture, fixtures, and
equipment.
(B) Portfolio requirement.--To the extent
practicable, each intermediary that operates a
microloan program under this subsection shall
maintain a microloan portfolio with an average
loan size of not more than $15,000.
(C) Interest limit.--Notwithstanding any
provision of the laws of any State or the
constitution of any State pertaining to the
rate or amount of interest that may be charged,
taken, received, or reserved on a loan, the
maximum rate of interest to be charged on a
microloan funded under this subsection shall
not exceed the rate of interest applicable to a
loan made to an intermediary by the
Administration--
(i) in the case of a loan of more
than $7,500 made by the intermediary to
a small business concern or
entrepreneur by more than 7.75
percentage points; and
(ii) in the case of a loan of not
more than $7,500 made by the
intermediary to a small business
concern or entrepreneur by more than
8.5 percentage points.
(D) Review restriction.--The Administration
shall not review individual microloans made by
intermediaries prior to approval.
(E) Establishment of child care or
transportation businesses.--In addition to
other eligible small businesses concerns,
borrowers under any program under this
subsection may include individuals who will use
the loan proceeds to establish for-profit or
nonprofit child care establishments or
businesses providing for-profit transportation
services.
(7) Program funding for microloans.--
(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) Allocation.--
(i) Minimum allocation.--Subject to
the availability of appropriations, of
the total amount of new loan funds made
available for award under this
subsection in each fiscal year, the
Administration shall make available for
award in each State (including the
District of Columbia, the Commonwealth
of Puerto Rico, the United States
Virgin Islands, Guam, and American
Samoa) an amount equal to the sum of--
(I) the lesser of--
(aa) $800,000; or
(bb) \1/55\ of the
total amount of new
loan funds made
available for award
under this subsection
for that fiscal year;
and
(II) any additional amount,
as determined by the
Administration.
(ii) Redistribution.--If, at the
beginning of the third quarter of a
fiscal year, the Administration
determines that any portion of the
amount made available to carry out this
subsection is unlikely to be made
available under clause (i) during that
fiscal year, the Administration may
make that portion available for award
in any one or more States (including
the District of Columbia, the
Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, and
American Samoa) without regard to
clause (i).
(8) Equitable distribution of intermediaries.--In
approving microloan program applicants and providing
funding to intermediaries under this subsection, the
Administration shall select and provide funding to such
intermediaries as will ensure appropriate availability
of loans for small businesses in all industries located
throughout each State, particularly those located in
urban and in rural areas.
(9) Grants for management, marketing, technical
assistance, and related services.--
(A) In general.--The Administration may
procure technical assistance for intermediaries
participating in the Microloan Program to
ensure that such intermediaries have the
knowledge, skills, and understanding of
microlending practices necessary to operate
successful microloan programs.
(B) Assistance amount.--The Administration
shall transfer 7 percent of its annual
appropriation for loans and loan guarantees
under this subsection to the Administration's
Salaries and Expense Account for the specific
purpose of providing 1 or more technical
assistance grants to experienced microlending
organizations and national and regional
nonprofit organizations that have demonstrated
experience in providing training support for
microenterprise development and financing. to
achieve the purpose set forth in subparagraph
(A).
(C) Welfare-to-work microloan initiative.--Of
amounts made available to carry out the
welfare-to-work microloan initiative under
paragraph (1)(A)(iv) in any fiscal year, the
Administration may use not more than 5 percent
to provide technical assistance, either
directly or through contractors, to welfare-to-
work microloan initiative grantees, to ensure
that, as grantees, they have the knowledge,
skills, and understanding of microlending and
welfare-to-work transition, and other related
issues, to operate a successful welfare-to-work
microloan initiative.
(10) Report to congress.--On November 1, 1995, the
Administration shall submit to the Committees on Small
Business of the Senate and the House of Representatives
a report, including the Administration's evaluation of
the effectiveness of the first 3\1/2\ years of the
microloan program and the following:
(A) the numbers and locations of the
intermediaries funded to conduct microloan
programs;
(B) the amounts of each loan and each grant
to intermediaries;
(C) a description of the matching
contributions of each intermediary;
(D) the numbers and amounts of microloans
made by the intermediaries to small business
concern borrowers;
(E) the repayment history of each
intermediary;
(F) a description of the loan portfolio of
each intermediary including the extent to which
it provides microloans to small business
concerns in rural areas; and
(G) any recommendations for legislative
changes that would improve program operations.
(11) Definitions.--For purposes of this subsection--
(A) the term ``intermediary'' means--
(i) a private, nonprofit entity;
(ii) a private, nonprofit community
development corporation;
(iii) a consortium of private,
nonprofit organizations or nonprofit
community development corporations;
(iv) a quasi-governmental economic
development entity (such as a planning
and development district), other than a
State, county, municipal government, or
any agency thereof, if--
(I) no application is
received from an eligible
nonprofit organization; or
(II) the Administration
determines that the needs of a
region or geographic area are
not adequately served by an
existing, eligible nonprofit
organization that has submitted
an application; or
(v) an agency of or nonprofit entity
established by a Native American Tribal
Government,
that seeks to borrow or has borrowed funds from
the Administration to make microloans to small
business concerns under this subsection;
(B) the term ``microloan'' means a short-
term, fixed rate loan of not more than $50,000,
made by an intermediary to a startup, newly
established, or growing small business concern;
(C) the term ``rural area'' means any
political subdivision or unincorporated area--
(i) in a nonmetropolitan county (as
defined by the Secretary of
Agriculture) or its equivalent thereof;
or
(ii) in a metropolitan county or its
equivalent that has a resident
population of less than 20,000 if the
Small Business Administration has
determined such political subdivision
or area to be rural; and
(D) the term ``economically distressed
area'', as used in paragraph (4), means a
county or equivalent division of local
government of a State in which the small
business concern is located, in which,
according to the most recent data available
from the Bureau of the Census, Department of
Commerce, not less than 40 percent of residents
have an annual income that is at or below the
poverty level.
(12) Deferred participation loan pilot.--In lieu of
making direct loans to intermediaries as authorized in
paragraph (1)(B), during fiscal years 1998 through
2000, the Administration may, on a pilot program basis,
participate on a deferred basis of not less than 90
percent and not more than 100 percent on loans made to
intermediaries by a for-profit or nonprofit entity or
by alliances of such entities, subject to the following
conditions:
(A) Number of loans.--In carrying out this
paragraph, the Administration shall not
participate in providing financing on a
deferred basis to more than 10 intermediaries
in urban areas or more than 10 intermediaries
in rural areas.
(B) Term of loans.--The term of each loan
shall be 10 years. During the first year of the
loan, the intermediary shall not be required to
repay any interest or principal. During the
second through fifth years of the loan, the
intermediary shall be required to pay interest
only. During the sixth through tenth years of
the loan, the intermediary shall be required to
make interest payments and fully amortize the
principal.
(C) Interest rate.--The interest rate on each
loan shall be the rate specified by paragraph
(3)(F) for direct loans.
(13) Evaluation of welfare-to-work microloan
initiative.--On January 31, 1999, and annually
thereafter, the Administration shall submit to the
Committees on Small Business of the House of
Representatives and the Senate a report on any monies
distributed pursuant to paragraph (4)(F).
(n) Repayment Deferred for Active Duty Reservists.--
(1) Definitions.--In this subsection:
(A) Eligible reservist.--The term ``eligible
reservist'' means a member of a reserve
component of the Armed Forces ordered to active
duty during a period of military conflict.
(B) Essential employee.--The term ``essential
employee'' means an individual who is employed
by a small business concern and whose
managerial or technical 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 the
Congress;
(ii) a period of national emergency
declared by the Congress or by the
President; or
(iii) a period of a contingency
operation, as defined in section 101(a)
of title 10, United States Code.
(D) Qualified borrower.--The term ``qualified
borrower'' means--
(i) an individual who is an eligible
reservist and who received a direct
loan under subsection (a) or (b) before
being ordered to active duty; or
(ii) a small business concern that
received a direct loan under subsection
(a) or (b) before an eligible
reservist, who is an essential
employee, was ordered to active duty.
(2) Deferral of direct loans.--
(A) In general.--The Administration shall,
upon written request, defer repayment of
principal and interest due on a direct loan
made under subsection (a) or (b), if such loan
was incurred by a qualified borrower.
(B) Period of deferral.--The period of
deferral for repayment under this paragraph
shall begin on the date on which the eligible
reservist is ordered to active duty and shall
terminate on the date that is 180 days after
the date such eligible reservist is discharged
or released from active duty.
(C) Interest rate reduction during
deferral.--Notwithstanding any other provision
of law, during the period of deferral described
in subparagraph (B), the Administration may, in
its discretion, reduce the interest rate on any
loan qualifying for a deferral under this
paragraph.
(3) Deferral of loan guarantees and other
financings.--The Administration shall--
(A) encourage intermediaries participating in
the program under subsection (m) to defer
repayment of a loan made with proceeds made
available under that subsection, if such loan
was incurred by a small business concern that
is eligible to apply for assistance under
subsection (b)(3); and
(B) not later than 30 days after the date of
the enactment of this subsection, establish
guidelines to--
(i) encourage lenders and other
intermediaries to defer repayment of,
or provide other relief relating to,
loan guarantees under subsection (a)
and financings under section 504 of the
Small Business Investment Act of 1958
that were incurred by small business
concerns that are eligible to apply for
assistance under subsection (b)(3), and
loan guarantees provided under
subsection (m) if the intermediary
provides relief to a small business
concern under this paragraph; and
(ii) implement a program to provide
for the deferral of repayment or other
relief to any intermediary providing
relief to a small business borrower
under this paragraph.
Sec. 8. (a)(1) It shall be the duty of the Administration and
it is hereby empowered, whenever it determines such action is
necessary or appropriate--
(A) to enter into contracts with the United States
Government and any department, agency, or officer
thereof having procurement powers obligating the
Administration to furnish articles, equipment,
supplies, services, or materials to the Government or
to perform construction work for the Government. In any
case in which the Administration certifies to any
officer of the Government having procurement powers
that the Administration is competent and responsible to
perform any specific Government procurement contract to
be let by any such officer, such officer shall be
authorized in his discretion to let such procurement
contract to the Administration upon such terms and
conditions as may be agreed upon between the
Administration and the procurement officer. Whenever
the Administration and such procurement officer fail to
agree, the matter shall be submitted for determination
to the Secretary or the head of the appropriate
department or agency by the Administrator. Not later
than 5 days from the date the Administration is
notified of a procurement officer's adverse decision,
the Administration may notify the contracting officer
of the intent to appeal such adverse decision, and
within 15 days of such date the Administrator shall
file a written request for a reconsideration of the
adverse decision with the Secretary of the department
or agency head. For the purposes of this subparagraph,
a procurement officer's adverse decision includes a
decision not to make available for award pursuant to
this subsection a particular procurement requirement or
the failure to agree on the terms and conditions of a
contract to be awarded noncompetitively under the
authority of this subsection. Upon receipt of the
notice of intent to appeal, the Secretary of the
department or the agency head shall suspend further
action regarding the procurement until a written
decision on the Administrator's request for
reconsideration has been issued by such Secretary or
agency head, unless such officer makes a written
determination that urgent and compelling circumstances
which significantly affect interests of the United
States will not permit waiting for a reconsideration of
the adverse decision. If the Administrator's request
for reconsideration is denied, the Secretary of the
department or agency head shall specify the reasons why
the selected firm was determined to be incapable to
perform the procurement requirement, and the findings
supporting such determination, which shall be made a
part of the contract file for the requirement. A
contract may not be awarded under this subsection if
the award of the contract would result in a cost to the
awarding agency which exceeds a fair market price;
(B) to arrange for the performance of such
procurement contracts by negotiating or otherwise
letting subcontracts to socially and economically
disadvantaged small business concerns for construction
work, services, or the manufacture, supply, assembly of
such articles, equipment, supplies, materials, or parts
thereof, or servicing or processing in connection
therewith, or such management services as may be
necessary to enable the Administration to perform such
contracts;
(C) to make an award to a small business
concern owned and controlled by socially and
economically disadvantaged individuals which
has completed its period of Program
Participation as prescribed by section
7(j)(15), if--
(i) the contract will be awarded as a
result of an offer (including price)
submitted in response to a published
solicitation relating to a competition
conducted pursuant to subparagraph (D);
and
(ii) the prospective contract awardee
was a Program Participant eligible for
award of the contract on the date
specified for receipt of offers
contained in the contract solicitation;
and
(D)(i) A contract opportunity offered for award
pursuant to this subsection shall be awarded on the
basis of competition restricted to eligible Program
Participants if--
(I) there is a reasonable expectation that at
least two eligible Program Participants will
submit offers and that award can be made at a
fair market price, and
(II) the anticipated award price of the
contract (including options) will exceed
$5,000,000 in the case of a contract
opportunity assigned a standard industrial
classification code for manufacturing and
$3,000,000 (including options) in the case of
all other contract opportunities.
(ii) The Associate Administrator for Minority Small
Business and Capital Ownership Development, on a
nondelegable basis, is authorized to approve a request
from an agency to award a contract opportunity under
this subsection on the basis of a competition
restricted to eligible Program Participants even if the
anticipated award price is not expected to exceed the
dollar amounts specified in clause (i)(II). Such
approvals shall be granted only on a limited basis.
(2) Notwithstanding subsections (a) and (c) of the first
section of the Act entitled ``An Act requiring contracts for
the construction, alteration, and repair of any public building
or public work of the United States to be accompanied by a
performance bond protecting the United States and by additional
bond for the protection of persons furnishing material and
labor for the construction, alteration, or repair of said
public buildings or public work,'' approved August 24, 1935 (49
Stat. 793), no small business concern shall be required to
provide any amount of any bond as a condition or receiving any
subcontract under this subsection if the Administrator
determines that such amount is inappropriate for such concern
in performing such contract: Provided, That the Administrator
shall exercise the authority granted by the paragraph only if--
(A) the Administration takes such measures as it
deems appropriate for the protection of persons
furnishing materials and labor to a small business
receiving any benefit pursuant to this paragraph;
(B) the Administration assists, insofar as
practicable, a small business receiving the benefits of
this paragraph to develop, within a reasonable period
of time, such financial and other capability as may be
needed to obtain such bonds as the Administration may
subsequently require for the successful completion of
any program conducted under the authority of this
subsection;
(C) the Administration finds that such small business
is unable to obtain the requisite bond or bonds from a
surety and that no surety is willing to issue such bond
or bonds subject to the guarantee provisions of Title
IV of the Small Business Investment Act of 1958; and
(D) that small business is determined to be a start-
up concern and such concern has not been participating
in any program conducted under the authority of this
subsection for a period exceeding one year.
The authority to waive bonds provided in this paragraph (2) may
not be exercised after September 30, 1988.
(3)(A) Any Program Participant selected by the Administration
to perform a contract to be let noncompetitively pursuant to
this subsection shall, when practicable, participate in any
negotiation of the terms and conditions of such contract.
(B)(i) For purposes of paragraph (1) a ``fair market price''
shall be determined by the agency offering the procurement
requirement to the Administration, in accordance with clauses
(ii) and (iii).
(ii) The estimate of a current fair market price for a new
procurement requirement, or a requirement that does not have a
satisfactory procurement history, shall be derived from a price
or cost analysis. Such analysis may take into account
prevailing market conditions, commercial prices for similar
products or services, or data obtained from any other agency.
Such analysis shall consider such cost or pricing data as may
be timely submitted by the Administration.
(iii) The estimate of a current fair market price for a
procurement requirement that has a satisfactory procurement
history shall be based on recent award prices adjusted to
insure comparability. Such adjustments shall take into account
differences in quantities, performance times, plans,
specifications, transportation costs, packaging and packing
costs, labor and materials costs, overhead costs, and any other
additional costs which may be deemed appropriate.
(C) An agency offering a procurement requirement for
potential award pursuant to this subsection shall, upon the
request of the Administration, promptly submit to the
Administration a written statement detailing the method used by
the agency to estimate the current fair market price for such
contract, identifying the information, studies, analyses, and
other data used by such agency. The agency's estimate of the
current fair market price (and any supporting data furnished to
the Administration) shall not be disclosed to any potential
offeror (other than the Administration).
(D) A small business concern selected by the Administration
to perform or negotiate a contract to be let pursuant to this
subsection may request the Administration to protest the
agency's estimate of the fair market price for such contract
pursuant to paragraph (1)(A).
(4)(A) For purposes of this section, the term ``socially and
economically disadvantaged small business concern'' means any
small business concern which meets the requirements of
subparagraph (B) and--
(i) which is at least 51 per centum unconditionally
owned by--
(I) one or more socially and economically
disadvantaged individuals,
(II) an economically disadvantaged Indian
tribe (or a wholly owned business entity of
such tribe), or
(III) an economically disadvantaged Native
Hawaiian organization, or
(ii) in the case of any publicly owned business, at
least 51 per centum of the stock of which is
unconditionally owned by--
(I) one or more socially and economically
disadvantaged individuals,
(II) an economically disadvantaged Indian
tribe (or a wholly owned business entity of
such tribe), or
(III) an economically disadvantaged Native
Hawaiian organization.
(B) A small business concern meets the requirements of this
subparagraph if the management and daily business operations of
such small business concern are controlled by one or more--
(i) socially and economically disadvantaged
individuals described in subparagraph (A)(i)(I) or
subparagraph (A)(ii)(I),
(ii) members of an economically disadvantaged Indian
tribe described in subparagraph (A)(i)(II) or
subparagraph (A)(ii)(II), or
(iii) Native Hawaiian organizations described in
subparagraph (A)(i)(III) or subparagraph (A)(ii)(III).
(C) Each Program Participant shall certify, on an annual
basis, that it meets the requirements of this paragraph
regarding ownership and control.
(5) Socially disadvantaged individuals are those who have
been subjected to racial or ethnic prejudice or cultural bias
because of their identity as a member of a group without regard
to their individual qualities.
(6)(A) Economically disadvantaged individuals are those
socially disadvantaged individuals whose ability to compete in
the free enterprise system has been impaired due to diminished
capital and credit opportunities as compared to others in the
same business area who are not socially disadvantaged. In
determining the degree of diminished credit and capital
opportunities the Administration shall consider, but not be
limited to, the assets and net worth of such socially
disadvantaged individual. In determining the economic
disadvantage of an Indian tribe, the Administration shall
consider, where available, information such as the following:
the per capita income of members of the tribe excluding
judgment awards, the percentage of the local Indian population
below the poverty level, and the tribe's access to capital
markets.
(B) Each Program Participant shall annually submit to the
Administration--
(i) a personal financial statement for each
disadvantaged owner;
(ii) a record of all payments made by the Program
Participant to each of its disadvantaged owners or to
any person or entity affiliated with such owners; and
(iii) such other information as the Administration
may deem necessary to make the determinations required
by this paragraph.
(C)(i) Whenever, on the basis of information provided by a
Program Participant pursuant to subparagraph (B) or otherwise,
the Administration has reason to believe that the standards to
establish economic disadvantage pursuant to subparagraph (A)
have not been met, the Administration shall conduct a review to
determine whether such Program Participant and its
disadvantaged owners continue to be impaired in their ability
to compete in the free enterprise system due to diminished
capital and credit opportunities when compared to other
concerns in the same business area, which are not socially
disadvantaged.
(ii) If the Administration determines, pursuant to such
review, that a Program Participant and its disadvantaged owners
are no longer economically disadvantaged for the purpose of
receiving assistance under this subsection, the Program
Participant shall be graduated pursuant to section 7(j)(10)(G)
subject to the right to a hearing as provided for under
paragraph (9).
(D)(i) Whenever, on the basis of information provided by a
Program Participant pursuant to subparagraph (B) or otherwise,
the Administration has reason to believe that the amount of
funds or other assets withdrawn from a Program Participant for
the personal benefit of its disadvantaged owners or any person
or entity affiliated with such owners may have been unduly
excessive, the Administration shall conduct a review to
determine whether such withdrawal of funds or other assets was
detrimental to the achievement of the targets, objectives, and
goals contained in such Program Participant's business plan.
(ii) If the Administration determines, pursuant to such
review, that funds or other assets have been withdrawn to the
detriment of the Program Participant's business, the
Administration shall--
(I) initiate a proceeding to terminate the Program
Participant pursuant to section 7(j)(10)(F), subject to
the right to a hearing under paragraph (9); or
(II) require an appropriate reinvestment of funds or
other assets and such other steps as the Administration
may deem necessary to ensure the protection of the
concern.
(E) Whenever the Administration computes personal net worth
for any purpose under this paragraph, it shall exclude from
such computation--
(i) the value of investments that disadvantaged
owners have in their concerns, except that such value
shall be taken into account under this paragraph when
comparing such concerns to other concerns in the same
business area that are owned by other than socially
disadvantaged persons;
(ii) the equity that disadvantaged owners have in
their primary personal residences, except that any
portion of such equity that is attributable to unduly
excessive withdrawals from a Program Participant or a
concern applying for program participation shall be
taken into account.
(7)(A) No small business concern shall be deemed eligible for
any assistance pursuant to this subsection unless the
Administration determines that with contract, financial,
technical, and management support the small business concern
will be able to perform contracts which may be awarded to such
concern under paragraph (1)(C) and has reasonable prospects for
success in competing in the private sector.
(B) Limitations established by the Administration in its
regulations and procedures restricting the award of contracts
pursuant to this subsection to a limited number of standard
industrial classification codes in an approved business plan
shall not be applied in a manner that inhibits the logical
business progression by a participating small business concern
into areas of industrial endeavor where such concern has the
potential for success.
(8) All determinations made pursuant to paragraph (5) with
respect to whether a group has been subjected to prejudice or
bias shall be made by the Administrator after consultation with
the Associate Administrator for Minority Small Business and
Capital Ownership Development. All other determinations made
pursuant to paragraphs (4), (5), (6), and (7) shall be made by
the Associate Administrator for Minority Small Business and
Capital Ownership Development under the supervision of, and
responsible to, the Administrator.
(9)(A) Subject to the provisions of subparagraph (E), the
Administration, prior to taking any action described in
subparagraph (B), shall provide the small business concern that
is the subject of such action, an opportunity for a hearing on
the record, in accordance with chapter 5 of title 5, United
States Code.
(B) The actions referred to in subparagraph (A) are--
(i) denial of program admission based upon a negative
determination pursuant to paragraph (4), (5), or (6);
(ii) a termination pursuant to section 7(j)(10)(F);
(iii) a graduation pursuant to section 7(j)(10)(G);
and
(iv) the denial of a request to issue a waiver
pursuant to paragraph (21)(B).
(C) The Administration's proposed action, in any proceeding
conducted under the authority of this paragraph, shall be
sustained unless it is found to be arbitrary, capricious, or
contrary to law.
(D) A decision rendered pursuant to this paragraph shall be
the final decision of the Administration and shall be binding
upon the Administration and those within its employ.
(E) The adjudicator selected to preside over a proceeding
conducted under the authority of this paragraph shall decline
to accept jurisdiction over any matter that--
(i) does not, on its face, allege facts that, if
proven to be true, would warrant reversal or
modification of the Administration's position;
(ii) is untimely filed;
(iii) is not filed in accordance with the rules of
procedure governing such proceedings; or
(iv) has been decided by or is the subject of an
adjudication before a court of competent jurisdiction
over such matters.
(F) Proceedings conducted pursuant to the authority of this
paragraph shall be completed and a decision rendered, insofar
as practicable, within ninety days after a petition for a
hearing is filed with the adjudicating office.
(10) The Administration shall develop and implement an
outreach program to inform and recruit small business concerns
to apply for eligibility for assistance under this subsection.
Such program shall make a sustained and substantial effort to
solicit applications for certification from small business
concerns located in areas of concentrated unemployment or
underemployment or within labor surplus areas and within States
having relatively few Program Participants and from small
disadvantaged business concerns in industry categories that
have not substantially participated in the award of contracts
let under the authority of this subsection.
(11) To the maximum extent practicable, construction
subcontracts awarded by the Administration pursuant to this
subsection shall be awarded within the county or State where
the work is to be performed.
(12)(A) The Administration shall require each concern
eligible to receive subcontracts pursuant to this subsection to
annually prepare and submit to the Administration a capability
statement. Such statement shall briefly describe such concern's
various contract performance capabilities and shall contain the
name and telephone number of the Business Opportunity
Specialist assigned such concern. The Administration shall
separate such statements by those primarily dependent upon
local contract support and those primarily requiring a national
marketing effort. Statements primarily dependent upon local
contract support shall be disseminated to appropriate buying
activities in the marketing area of the concern. The remaining
statements shall be disseminated to the Directors of Small and
Disadvantaged Business Utilization for the appropriate agencies
who shall further distribute such statements to buying
activities with such agencies that may purchase the types of
items or services described on the capability statements.
(B) Contracting activities receiving capability statements
shall, within 60 days after receipt, contact the relevant
Business Opportunity Specialist to indicate the number, type,
and approximate dollar value of contract opportunities that
such activities may be awarding over the succeeding 12-month
period and which may be appropriate to consider for award to
those concerns for which it has received capability statements.
(C) Each executive agency reporting to the Federal
Procurement Data System contract actions with an aggregate
value in excess of $50,000,000 in fiscal year 1988, or in any
succeeding fiscal year, shall prepare a forecast of expected
contract opportunities or classes of contract opportunities for
the next and succeeding fiscal years that small business
concerns, including those owned and controlled by socially and
economically disadvantaged individuals, are capable of
performing. Such forecast shall be periodically revised during
such year. To the extent such information is available, the
agency forecasts shall specify:
(i) The approximate number of individual contract
opportunities (and the number of opportunities within a
class).
(ii) The approximate dollar value, or range of dollar
values, for each contract opportunity or class of
contract opportunities.
(iii) The anticipated time (by fiscal year quarter)
for the issuance of a procurement request.
(iv) The activity responsible for the award and
administration of the contract.
(D) The head of each executive agency subject to the
provisions of subparagraph (C) shall within 10 days of
completion furnish such forecasts to--
(i) the Director of the Office of Small and
Disadvantaged Business Utilization established pursuant
to section 15(k) for such agency; and
(ii) the Administrator.
(E) The information reported pursuant to subparagraph (D) may
be limited to classes of items and services for which there are
substantial annual purchases.
(F) Such forecasts shall be available to small business
concerns.
(13) For purposes of this subsection, the term ``Indian
tribe'' means any Indian tribe, band, nation, or other
organized group or community of Indians, including any Alaska
Native village or regional or village corporation (within the
meaning of the Alaska Native Claims Settlement Act) which--
(A) is recognized as eligible for the special
programs and services provided by the United States to
Indians because of their status as Indians, or
(B) is recognized as such by the State in which such
tribe, band, nation, group, or community resides.
(14) Limitations on subcontracting.--A concern may
not be awarded a contract under this subsection as a
small business concern unless the concern agrees to
satisfy the requirements of section 46.
(15) For purposes of this subsection, the term ``Native
Hawaiian Organization'' means any community service
organization serving Native Hawaiians in the State of Hawaii
which--
(A) is a nonprofit corporation that has filed
articles of incorporation with the director (or the
designee thereof) of the Hawaii Department of Commerce
and Consumer Affairs, or any successor agency,
(B) is controlled by Native Hawaiians, and
(C) whose business activities will principally
benefit such Native Hawaiians.
(16)(A) The Administration shall award sole source contracts
under this section to any small business concern recommended by
the procuring agency offering the contract opportunity if--
(i) the Program Participant is determined to be a
responsible contractor with respect to performance of
such contract opportunity;
(ii) the award of such contract would be consistent
with the Program Participant's business plan; and
(iii) the award of the contract would not result in
the Program Participant exceeding the requirements
established by section 7(j)(10)(I).
(B) To the maximum extent practicable, the Administration
shall promote the equitable geographic distribution of sole
source contracts awarded pursuant to this subsection.
(17)(A) An otherwise responsible business concern that is in
compliance with the requirements of subparagraph (B) shall not
be denied the opportunity to submit and have considered its
offer for any procurement contract, which contract has as its
principal purpose the supply of a product to be let pursuant to
this subsection, subsection (m), section 15(a), section 31, or
section 36, solely because such concern is other than the
actual manufacturer or processor of the product to be supplied
under the contract.
(B) To be in compliance with the requirements referred to in
subparagraph (A), such a business concern shall--
(i) be primarily engaged in the wholesale or retail
trade;
(ii) be a small business concern under the numerical
size standard for the Standard Industrial
Classification Code assigned to the contract
solicitation on which the offer is being made;
(iii) be a regular dealer, as defined pursuant to
section 35(a) of title 41, United States Code
(popularly referred to as the Walsh-Healey Public
Contracts Act), in the product to be offered the
Government or be specifically exempted from such
section by section 7(j)(13)(C); and
(iv) represent that it will supply the product of a
domestic small business manufacturer or processor,
unless a waiver of such requirement is granted--
(I) by the Administrator, after reviewing a
determination by the contracting officer that
no small business manufacturer or processor can
reasonably be expected to offer a product
meeting the specifications (including period
for performance) required of an offeror by the
solicitation; or
(II) by the Administrator for a product (or
class of products), after determining that no
small business manufacturer or processor is
available to participate in the Federal
procurement market.
(C) Limitation.--This paragraph shall not apply to a
contract that has as its principal purpose the
acquisition of services or construction.
(18)(A) No person within the employ of the Administration
shall, during the term of such employment and for a period of
two years after such employment has been terminated, engage in
any activity or transaction specified in subparagraph (B) with
respect to any Program Participant during such person's term of
employment, if such person participated personally (either
directly or indirectly) in decision-making responsibilities
relating to such Program Participant or with respect to the
administration of any assistance provided to Program
Participants generally under this subsection, section 7(j)(10),
or section 7(a)(20).
(B) The activities and transactions prohibited by
subparagraph (A) include--
(i) the buying, selling, or receiving (except by
inheritance) of any legal or beneficial ownership of
stock or any other ownership interest or the right to
acquire any such interest;
(ii) the entering into or execution of any written or
oral agreement (whether or not legally enforceable) to
purchase or otherwise obtain any right or interest
described in clause (i); or
(iii) the receipt of any other benefit or right that
may be an incident of ownership.
(C)(i) The employees designated in clause (ii) shall annually
submit a written certification to the Administration regarding
compliance with the requirements of this paragraph.
(ii) The employees referred to in clause (i) are--
(I) regional administrators;
(II) district directors;
(III) the Associate Administrator for Minority Small
Business and Capital Ownership Development;
(IV) employees whose principal duties relate to the
award of contracts or the provision of other assistance
pursuant to this subsection or section 7(j)(10); and
(V) such other employees as the Administrator may
deem appropriate.
(iii) Any present or former employee of the Administration
who violates this paragraph shall be subject to a civil
penalty, assessed by the Attorney General, that shall not
exceed 300 per centum of the maximum amount of gain such
employee realized or could have realized as a result of
engaging in those activities and transactions prescribed by
subparagraph (B).
(iv) In addition to any other remedy or sanction provided for
under law or regulation, any person who falsely certifies
pursuant to clause (i) shall be subject to a civil penalty
under the Program Fraud Civil Remedies Act of 1986 (31 U.S.C.
3801-3812).
(19)(A) Any employee of the Administration who has authority
to take, direct others to take, recommend, or approve any
action with respect to any program or activity conducted
pursuant to this subsection or section 7(j), shall not, with
respect to any such action, exercise or threaten to exercise
such authority on the basis of the political activity or
affiliation of any party. Employees of the Administration shall
expeditiously report to the Inspector General of the
Administration any such action for which such employee's
participation has been solicitated or directed.
(B) Any employee who willfully and knowingly violates
subparagraph (A) shall be subject to disciplinary action, which
may consist of separation from service, reduction in grade,
suspension, or reprimand.
(C) Subparagraph (A) shall not apply to any action taken as a
penalty or other enforcement of a violation of any law, rule,
or regulation prohibiting or restricting political activity.
(D) The prohibitions of subparagraph (A), and remedial
measures provided for under subparagraphs (B) and (C) with
regard to such prohibitions, shall be in addition to, and not
in lieu of, any other prohibitions, measures or liabilities
that may arise under any other provision of law.
(20)(A) Small business concerns participating in the Program
under section 7(j)(10) and eligible to receive contracts
pursuant to this section shall semiannually report to their
assigned Business Opportunity Specialist the following:
(i) A listing of any agents, representatives,
attorneys, accountants, consultants, and other parties
(other than employees) receiving compensation to assist
in obtaining a Federal contract for such Program
Participant.
(ii) The amount of compensation received by any
person listed under clause (i) during the relevant
reporting period and a description of the activities
performed in return for such compensation.
(B) The Business Opportunity Specialist shall promptly review
and forward such report to the Associate Administrator for
Minority Small Business and Capital Ownership Development. Any
report that raises a suspicion of improper activity shall be
reported immediately to the Inspector General of the
Administration.
(C) The failure to submit a report pursuant to the
requirements of this subsection and applicable regulations
shall be considered ``good cause'' for the initiation of a
termination proceeding pursuant to section 7(j)(10)(F).
(21)(A) Subject to the provisions of subparagraph (B), a
contract (including options) awarded pursuant to this
subsection shall be performed by the concern that initially
received such contract. Notwithstanding the provisions of the
preceding sentence, if the owner or owners upon whom
eligibility was based relinquish ownership or control of such
concern, or enter into any agreement to relinquish such
ownership or control, such contract or option shall be
terminated for the convenience of the Government, except that
no repurchase costs or other damages may be assessed against
such concerns due solely to the provisions of this
subparagraph.
(B) The Administrator may, on a nondelegable basis, waive the
requirements of subparagraph (A) only if one of the following
conditions exist:
(i) When it is necessary for the owners of the
concern to surrender partial control of such concern on
a temporary basis in order to obtain equity financing.
(ii) The head of the contracting agency for which the
contract is being performed certifies that termination
of the contract would severely impair attainment of the
agency's program objectives or missions;
(iii) Ownership and control of the concern that is
performing the contract will pass to another small
business concern that is a program participant, but
only if the acquiring firm would otherwise be eligible
to receive the award directly pursuant to subsection
(a);
(iv) The individuals upon whom eligibility was based
are no longer able to exercise control of the concern
due to incapacity or death; or
(v) When, in order to raise equity capital, it is
necessary for the disadvantaged owners of the concern
to relinquish ownership of a majority of the voting
stock of such concern, but only if--
(I) such concern has exited the Capital
Ownership Development Program;
(II) the disadvantaged owners will maintain
ownership of the largest single outstanding
block of voting stock (including stock held by
affiliated parties); and
(III) the disadvantaged owners will maintain
control of daily business operations.
(C) The Administrator may waive the requirements of
subparagraph (A) if--
(i) in the case of subparagraph (B) (i), (ii)
and (iv), he is requested to do so prior to the
actual relinquishment of ownership or control;
and
(ii) in the case of subparagraph (B)(iii), he
is requested to do so as soon as possible after
the incapacity or death occurs.
(D) Concerns performing contracts awarded pursuant to this
subsection shall be required to notify the Administration
immediately upon entering an agreement (either oral or in
writing) to transfer all or part of its stock or other
ownership interest to any other party.
(E) Notwithstanding any other provision of law, for the
purposes of determining ownership and control of a concern
under this section, any potential ownership interests held by
investment companies licensed under the Small Business
Investment Act of 1958 shall be treated in the same manner as
interests held by the individuals upon whom eligibility is
based.
(b) It shall also be the duty of the Administration and it is
hereby empowered, whenever it determines such action is
necessary--
(1)(A) to provide--
(i) technical, managerial, and informational
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,
professional, educational, and
other nonprofit organizations,
associations, and institutions
(except that the Administration
shall take such actions as it
determines necessary to ensure
that such cooperation does not
constitute or imply an
endorsement by the
Administration of the
organization or its products or
services, and shall ensure that
it receives appropriate
recognition 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
information, including through
recognition events, and by other
activities that the Administration
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
determines 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
cosponsor is avoided; and
(dd) utilization of any one
cosponsor in a marketing area
is minimized; and
(II) develop an agreement, executed
on behalf of the Administration by an
employee of the Administration in
Washington, the District of Columbia,
that provides, at a minimum, that--
(aa) any printed material to
announce the cosponsorship or
to be distributed 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 concern to cover the
direct costs of providing the
assistance;
(dd) the Administration may
provide to the cosponsorship
mailing labels, but not lists
of names and addresses of small
business concerns compiled by
the Administration;
(ee) all printed materials
containing the names of both
the Administration and the
cosponsor shall include a
prominent disclaimer that the
cooperation does not constitute
or imply an endorsement by the
Administration of any product
or service of the cosponsor;
and
(ff) the Administration shall
ensure that it receives
appropriate recognition in all
cosponsorship printed
materials.
(B) To establish, conduct, and publicize, and to
recruit, select, and train volunteers for (and to enter
into contracts, grants, or cooperative agreements
therefor), volunteer programs, including [a Service
Corps of Retired Executives (SCORE)] the SCORE program
described in subsection (c) and an Active Corps of
Executive (ACE) for the purposes of section 8(b)(1)(A)
of this Act. To facilitate the implementation of such
volunteer programs the Administration shall maintain at
its headquarters and pay the salaries, benefits, and
expenses of a volunteer and professional staff to
manage and oversee the program. Any such payments made
pursuant to this subparagraph shall be effective only
to such extent or in such amounts as are provided in
advance in appropriation Acts. 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 functions under this Act, and may use
payments made by the Administration pursuant to this
subparagraph for such solicitation and the management
of the contributions received.
(C) To allow any individual or group of persons
participating with it in furtherance of the purposes of
subparagraphs (A) and (B) to use the Administration's
office facilities and related material and services as
the Administration deems appropriate, including
clerical and stenographic service:
(i) such volunteers, while carrying out
activities under section 8(b)(1) of this Act
shall be deemed Federal employees for the
purposes of the Federal tort claims provisions
in title 28, United States Code; and for the
purposes of subchapter I of chapter 81 of title
5, United States Code (relative to compensation
to Federal employees for work injuries) shall
be deemed civil employees of the United States
within the meaning of the term ``employee'' as
defined in section 8101 of title 5, United
States Code, and the provisions of that
subchapter shall apply except that in computing
compensation benefits for disability or death,
the monthly pay of a volunteer shall be deemed
that received under the entrance salary for a
grade GS-11 employee:
(ii) the Administrator is authorized to
reimburse such volunteers for all necessary
out-of-pocket expenses incident to their
provision of services under this Act, or in
connection with attendance at meetings
sponsored by the Administration, or for the
cost of malpractice insurance, as the
Administrator shall determine, in accordance
with regulations which he or she shall
prescribe, and, while they are carrying out
such activities away from their homes or
regular places of business, for travel expenses
(including per diem in lieu of subsistence) as
authorized by section 5703 of title 5, United
States Code, for individuals serving without
pay; and
(iii) such volunteers shall in no way provide
services to a client of such Administration
with a delinquent loan outstanding, except upon
a specific request signed by such client for
assistance in connection with such matter.
(D) Notwithstanding any other provision of law, no
payment for supportive services or reimbursement of
out-of-pocket expenses made to persons serving pursuant
to section 8(b)(1) of this Act shall be subject to any
tax or charge or be treated as wages or compensation
for the purposes of unemployment, disability,
retirement, public assistance, or similar benefit
payments, or minimum wage laws.
(E) In carrying out its functions under subparagraph
(A), to make grants (including contracts and
cooperative agreements) to any public or private
institution of higher education for the establishment
and operation of a small business institute, which
shall be used to provide business counseling and
assistance to small business concerns through the
activities of students enrolled at the institution,
which students shall be entitled to receive educational
credits for their activities.
(F) Notwithstanding any other provision of law and
pursuant to regulations which the Administrator shall
provide, counsel may be employed and counsel fees,
court costs, bail, and other expenses incidental to the
defense of volunteers may be paid in judicial or
Administrative proceedings arising directly out of the
performance of activities pursuant to section 8(b)(1)
of this Act, as amended (15 U.S.C. 637(b)(1)) to which
volunteers have been made parties.
(G) In carrying out its functions under this Act and
to carry out the activities authorized by title IV of
the Women's Business Ownership Act of 1988, the
Administration is authorized to accept, in the name of
the Administration, and employ or dispose of in
furtherance of the purposes of this Act, any money or
property, real, personal, or mixed, tangible, or
intangible, received by gift, devise, bequest, or
otherwise; and, further, to accept gratuitous services
and facilities.
(2) to make a complete inventory of all productive
facilities of small-business concerns or to arrange for
such inventory to be made by any other governmental
agency which has the facilities. In making any such
inventory, the appropriate agencies in the several
States may be requested to furnish an inventory of the
productive facilities of small-business concerns in
each respective State if such an inventory is available
or in prospect;
(3) to coordinate and to ascertain the means by which
the productive capacity of small-business concerns can
be most effectively utilized;
(4) to consult and cooperative with officers of the
Government having procurement or property disposal
powers, in order to utilize the potential productive
capacity of plants operated by small-business concerns;
(5) to obtain information as to methods and practices
which Government prime contractors utilize in letting
subcontracts and to take action to encourage the
letting of subcontracts by prime contractors to small-
business concerns at prices and on conditions and terms
which are fair and equitable;
(6) to determine within any industry the concerns,
firms, persons, corporations, partnerships,
cooperatives, or other business enterprises which are
to be designated ``small-business concerns'' for the
purpose of effectuating the provisions of this Act. To
carry out this purpose the Administrator, when
requested to do so, shall issue in response to each
such request an appropriate certificate certifying an
individual concern as a ``small-business concern'' in
accordance with the criteria expressed in this Act. Any
such certificate shall be subject to revocation when
the concern covered thereby ceases to be a ``small-
business concern.'' Offices of the Government having
procurement or lending powers, or engaging in the
disposal of Federal property or allocating materials or
supplies, or promulgating regulations affecting the
distribution of materials or supplies, shall accept as
conclusive the Administration's determination as to
which enterprises are to be designated ``small-business
concerns'', as authorized and directed under this
paragraph;
(7)(A) to certify to Government procurement officers,
and officers engaged in the sale and disposal of
Federal property, with respect to all elements of
responsibility, including, but not limited to,
capability, competency, capacity, credit, integrity,
perseverance, and tenacity, of any small business
concern or group of such concerns to receive and
perform a specific Government contract. A Government
procurement officer or an officer engaged in the sale
and disposal of Federal property may not, for any
reason specified in the preceding sentence, preclude
any small business concern or group of such concerns
from being awarded such contract without referring the
matter for a final disposition to the Administration.
(B) if a Government procurement officer finds that an
otherwise qualified small business concern may be
ineligible due to the provisions of section 35(a) of
title 41, United States Code (the Walsh-Healey Public
Contracts Act), he shall notify the Administration in
writing of such finding. The Administration shall
review such finding and shall either dismiss it and
certify the small business concern to be an eligible
Government contractor for a specific Government
contract or if it concurs in the finding, forward the
matter to the Secretary of Labor for final disposition,
in which case the Administration may certify the small
business concern only if the Secretary of Labor finds
the small business concern not to be in violation.
(C) in any case in which a small business concern or
group of such concerns has been certified by the
Administration pursuant to (A) or (B) to be a
responsible or eligible Government contractor as to a
specific Government contract, the officers of the
Government having procurement or property disposal
powers are directed to accept such certification as
conclusive, and shall let such Government contract to
such concern or group of concerns without requiring it
to meet any other requirement of responsibility or
eligibility. Notwithstanding the first sentence of this
subparagraph, the Administration may not establish an
exemption from referral or notification or refuse to
accept a referral or notification from a Government
procurement officer made pursuant to subparagraph (A)
or (B) of this paragraph, but nothing in this paragraph
shall require the processing of an application for
certification if the small business concern to which
the referral pertains declines to have the application
processed.
(8) to obtain from any Federal department,
establishment, or agency engaged in procurement or in
the financing of procurement or production such reports
concerning the letting of contracts and subcontracts
and the making of loans to business concerns as it may
deem pertinent in carrying out its functions under this
Act;
(9) to obtain from any Federal department,
establishment, or agency engaged in the disposal of
Federal property such reports concerning the
solicitation of bids, time of sale, or otherwise as it
may deem pertinent in carrying out its functions under
this Act;
(10) to obtain from suppliers of materials
information pertaining to the method of filling orders
and the bases for allocating their supply, whenever it
appears that any small business is unable to obtain
materials from its normal sources;
(11) to make studies and recommendations to the
appropriate Federal agencies to insure that a fair
proportion of the total purchases and contracts for
property and services for the Government be placed with
small-business enterprises, to insure that a fair
proportion of Government contacts for research and
development be placed with small-business concerns, to
insure that a fair proportion of the total sales of
Government property be made to small-business concerns,
and to insure a fair and equitable share of materials,
supplies, and equipment to small-business concerns;
(12) to consult and cooperate with all Government
agencies for the purpose of insuring that small-
business concerns shall receive fair and reasonable
treatment from such agencies;
(13) to establish such advisory boards and committees
as may be necessary to achieve the purposes of this Act
and of the Small Business Investment Act of 1958; to
call meetings of such boards and committees from time
to time; to pay the transportation expenses and a per
diem allowance in accordance with section 5703 of title
5, United States Code, to the members of such boards
and committees for travel and subsistence expenses
incurred at the request of the Administration in
connection with travel to points more than fifty miles
distant from the homes of such members in attending the
meetings of such boards and committees; and to rent
temporarily, within the District of Columbia or
elsewhere, such hotel or other accommodations as are
needed to facilitate the conduct of such meetings;
(14) to provide at the earliest practicable time such
information and assistance as may be appropriate,
including information concerning eligibility for loans
under section 7(b)(3), to local public agencies (as
defined in section 110(h) of the Housing Act of 1949)
and to small-business concerns to be displaced by
federally aided urban renewal projects in order to
assist such small-business concerns in reestablishing
their operations;
(15) to disseminate, without regard to the provisions
of section 3204 of title 39, United States Code, data
and information, in such form as it shall deem
appropriate, to public agencies, private organizations,
and the general public;
(16) to make studies of matters materially affecting
the competitive strength of small business, and of the
effect on small business of Federal laws, programs, and
regulations, and to make recommendations to the
appropriate Federal agency or agencies for the
adjustment of such programs and regulations to the
needs of small business; and
(17) to make grants to, and enter into contracts and
cooperative agreements with, educational institutions,
private businesses, veterans' nonprofit community-based
organizations, and Federal, State, and local
departments and agencies for the establishment and
implementation of outreach programs for disabled
veterans (as defined in section 4211(3) of title 38,
United States Code), veterans, and members of a reserve
component of the Armed Forces.
[(c) ]
(c) SCORE Program.--
(1) Definition.--In this subsection:
(A) SCORE association.--The term ``SCORE
Association'' means the Service Corps of
Retired Executives Association or any successor
or other organization who receives a grant from
the Administrator to operate the SCORE program
under paragraph (2)(A).
(B) SCORE program.--The term ``SCORE
program'' means the SCORE program authorized by
subsection (b)(1)(B).
(2) Management and volunteers.--
(A) In general.--The Administrator shall
provide a grant to the SCORE Association to
manage the SCORE program.
(B) Volunteers.--A volunteer participating in
the SCORE program shall--
(i) based on the business experience
and knowledge of the volunteer--
(I) provide at no cost to
individuals who own, or aspire
to own, small business concerns
personal counseling, mentoring,
and coaching relating to the
process of starting, expanding,
managing, buying, and selling a
business; and
(II) facilitate low-cost
education workshops for
individuals who own, or aspire
to own, small business
concerns; and
(ii) as appropriate, use tools,
resources, and expertise of other
organizations to carry out the SCORE
program.
(3) Plans and goals.--The Administrator, in
consultation with the SCORE Association, shall ensure
that the SCORE program and each chapter of the SCORE
program develop and implement plans and goals to more
effectively and efficiently provide services to
individuals in rural areas, economically disadvantaged
communities, and other traditionally underserved
communities, including plans for electronic
initiatives, web-based initiatives, chapter expansion,
partnerships, and the development of new skills by
volunteers participating in the SCORE program.
(4) Annual report.--The SCORE Association shall
submit to the Administrator an annual report that
contains--
(A) the number of individuals counseled or
trained under the SCORE program;
(B) the number of hours of counseling
provided under the SCORE program; and
(C) to the extent possible--
(i) the number of small business
concerns formed with assistance from
the SCORE program;
(ii) the number of small business
concerns expanded with assistance from
the SCORE program; and
(iii) the number of jobs created with
assistance from the SCORE program.
(5) Privacy requirements.--
(A) In general.--Neither the Administrator
nor the SCORE Association may disclose the
name, address, or telephone number of any
individual or small business concern receiving
assistance from the SCORE Association without
the consent of such individual or small
business concern, unless--
(i) the Administrator is ordered to
make such a disclosure by a court in
any civil or criminal enforcement
action initiated by a Federal or State
agency; or
(ii) the Administrator determines
such a disclosure to be necessary for
the purpose of conducting a financial
audit of the SCORE program, in which
case disclosure shall be limited to the
information necessary for the audit.
(B) Administrator use of information.--This
paragraph shall not--
(i) restrict the access of the
Administrator to program activity data;
or
(ii) prevent the Administrator from
using client information to conduct
client surveys.
(C) Regulations.--
(i) In general.--The Administrator
shall issue regulations to establish
standards for--
(I) disclosures with respect
to financial audits under
subparagraph (A)(ii); and
(II) conducting client
surveys, including standards
for oversight of the surveys
and for dissemination and use
of client information.
(ii) Maximum privacy protection.--The
regulations issued under this
subparagraph shall, to the extent
practicable, provide for the maximum
amount of privacy protection.
(6) Online component.--In carrying out this
subsection, the SCORE Association shall make use of
online counseling, including by developing and
implementing webinars and an electronic mentoring
platform to expand access to services provided under
this subsection and to further support entrepreneurs.
(d)(1) It is the policy of the United States that small
business concerns, small business concerns owned and controlled
by veterans, small business concerns owned and controlled by
service-disabled veterans, qualified HUBZone small business
concerns, small business concerns owned and controlled by
socially and economically disadvantaged individuals, and small
business concerns owned and controlled by women, shall have the
maximum practicable opportunity to participate in the
performance of contracts let by any Federal agency, including
contracts and subcontracts for subsystems, assemblies,
components, and related services for major systems. It is
further the policy of the United States that its prime
contractors establish procedures to ensure the timely payment
of amounts due pursuant to the terms of their subcontracts with
small business concerns, small business concerns owned and
controlled by veterans, small business concerns owned and
controlled by service-disabled veterans, qualified HUBZone
small business concerns, small business concerns owned and
controlled by socially and economically disadvantaged
individuals, and small business concerns owned and controlled
by women.
(2) The clause stated in paragraph (3) shall be included in
all contracts let by any Federal agency except any contract
which--
(A) does not exceed the simplified acquisition
threshold;
(B) including all subcontracts under such contracts
will be performed entirely outside of any State,
territory, or possession of the United States, the
District of Columbia, or the Commonwealth of Puerto
Rico; or
(C) is for services which are personal in nature.
(3) The clause required by paragraph (2) shall be as follows:
(A) It is the policy of the United States that small
business concerns, small business concerns owned and
controlled by veterans, small business concerns owned
and controlled by service-disabled veterans, qualified
HUBZone small business concerns, small business
concerns owned and controlled by socially and
economically disadvantaged individuals, and small
business concerns owned and controlled by women shall
have the maximum practicable opportunity to participate
in the performance of contracts let by any Federal
agency, including contracts and subcontracts for
subsystems, assemblies, components, and related
services for major systems. It is further the policy of
the United States that its prime contractors establish
procedures to ensure the timely payment of amounts due
pursuant to the terms of their subcontracts with small
business concerns, small business concerns owned and
controlled by veterans, small business concerns owned
and controlled by service-disabled veterans, qualified
HUBZone small business concerns, small business
concerns owned and controlled by socially and
economically disadvantaged individuals, and small
business concerns owned and controlled by women.
(B) The contractor hereby agrees to carry out this
policy in the awarding of subcontracts to the fullest
extent consistent with the efficient performance of
this contract. The contractor further agrees to
cooperate in any studies or surveys as may be conducted
by the United States Small Business Administration or
the awarding agency of the United States as may be
necessary to determine the extent of the contractor's
compliance with this clause.
(C) As used in this contract, the term ``small
business concern'' shall mean a small business as
defined pursuant to section 3 of the Small Business Act
and relevant regulations promulgated pursuant thereto.
The term ``small business concern owned and controlled
by socially and economically disadvantaged
individuals'' shall mean a small business concern--
(i) which is at least 51 per centum owned by
one or more socially and economically
disadvantaged individuals; 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 socially and economically disadvantaged
individuals; and
(ii) whose management and daily business
operations are controlled by one or more of
such individuals.
The contractor shall presume that socially and
economically disadvantaged individuals include Black
Americans, Hispanic Americans, Native Americans, Asian
Pacific Americans, and other minorities, or any other
individual found to be disadvantaged by the
Administration pursuant to section 8(a) of the Small
Business Act.
(D) The term ``small business concern owned and
controlled by women'' shall mean a small business
concern--
(i) which is at least 51 per centum owned by
one or more women; 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
women; and
(ii) whose management and daily business
operations are controlled by one or more women.
(E) The term ``small business concern owned and
controlled by veterans'' shall mean a small business
concern--
(i) which is at least 51 per centum owned by
one or more eligible veterans; or, in the case
of any publicly owned business, at least 51 per
centum of the stock of which is owned by one or
more veterans; and
(ii) whose management and daily business
operations are controlled by such veterans. The
contractor shall treat as veterans all
individuals who are veterans within the meaning
of the term under section 3(q) of the Small
Business Act.
(F) Contractors acting in good faith may rely on
written representations by their subcontractors
regarding their status as either a small business
concern, small business concern owned and controlled by
veterans, small business concern owned and controlled
by service-disabled veterans, a small business concern
owned and controlled by socially and economically
disadvantaged individuals, or a small business concern
owned and controlled by women.
(G) In this contract, the term ``qualified HUBZone
small business concern'' has the meaning given that
term in section 3(p) of the Small Business Act.
(4)(A) Each solicitation of an offer for a contract to be let
by a Federal agency which is to be awarded pursuant to the
negotiated method of procurement and which may exceed
$1,000,000, in the case of a contract for the construction of
any public facility, or $500,000, in the case of all other
contracts, shall contain a clause notifying potential offering
companies of the provisions of this subsection relating to
contracts awarded pursuant to the negotiated method of
procurement.
(B) Before the award of any contract to be let, or any
amendment or modification to any contract let, by any Federal
agency which--
(i) is to be awarded, or was let, pursuant to the
negotiated method of procurement,
(ii) is required to include the clause stated in
paragraph (3),
(iii) may exceed $1,000,000 in the case of a contract
for the construction of any public facility, or
$500,000 in the case of all other contracts, and
(iv) which offers subcontracting possibilities,
the apparent successful offeror shall negotiate with the
procurement authority a subcontracting plan which incorporates
the information prescribed in paragraph (6). The subcontracting
plan shall be included in and made a material part of the
contract.
(C) If, within the time limit prescribed in regulations of
the Federal agency concerned, the apparent successful offeror
fails to negotiate the subcontracting plan required by this
paragraph, such offeror shall become ineligible to be awarded
the contract. Prior compliance of the offeror with other such
subcontracting plans shall be considered by the Federal agency
in determining the responsibility of that offeror for the award
of the contract.
(D) No contract shall be awarded to any offeror unless the
procurement authority determines that the plan to be negotiated
by the offeror pursuant to this paragraph provides the maximum
practicable opportunity for small business concerns, qualified
HUBZone small business concerns, small business concerns owned
and controlled by veterans, small business concerns owned and
controlled by service-disabled veterans, small business
concerns owned and controlled by socially and economically
disadvantaged individuals, and small business concerns owned
and controlled by women to participate in the performance of
the contract.
(E) Notwithstanding any other provisions of law, every
Federal agency, in order to encourage subcontracting
opportunities for small business concerns, small business
concerns owned and controlled by veterans, small business
concerns owned and controlled by service-disabled veterans,
qualified HUBZone small business concerns, and small business
concerns owned and controlled by the socially and economically
disadvantaged individuals as defined in paragraph (3) of this
subsection and for small business concerns owned and controlled
by women, is hereby authorized to provide such incentives as
such Federal agency may deem appropriate in order to encourage
such subcontracting opportunities as may be commensurate with
the efficient and economical performance of the contact:
Provided, That, this subparagraph shall apply only to contracts
let pursuant to the negotiated method of procurement.
(F)(i) Each contract subject to the requirements of this
paragraph or paragraph (5) shall contain a clause for the
payment of liquidated damages upon a finding that a prime
contractor has failed to make a good faith effort to comply
with the requirements imposed on such contractor by this
subsection.
(ii) The contractor shall be afforded an opportunity to
demonstrate a good faith effort regarding compliance prior to
the contracting officer's final decision regarding the
impositon of damages and the amount thereof. The final decision
of a contracting officer regarding the contractor's obligation
to pay such damages, or the amounts thereof, shall be subject
to the Contract Disputes Act of 1978 (41 U.S.C. 601-613).
(iii) Each agency shall ensure that the goals offered by the
apparent successful bidder or offeror are attainable in
relation to--
(I) the subcontracting opportunities available to the
contractor, commensurate with the efficient and
economical performance of the contract;
(II) the pool of eligible subcontractors available to
fulfill the subcontracting opportunities; and
(III) the actual performance of such contractor in
fulfilling the subcontracting goals specified in prior
plans.
(G) The following factors shall be designated by the
Federal agency as significant factors for purposes of
evaluating offers for a bundled contract where the head
of the agency determines that the contract offers a
significant opportunity for subcontracting:
(i) A factor that is based on the rate
provided under the subcontracting plan for
small business participation in the performance
of the contract.
(ii) For the evaluation of past performance
of an offeror, a factor that is based on the
extent to which the offeror attained applicable
goals for small business participation in the
performance of contracts.
(5)(A) Each solicitation of a bid for any contract to be let,
or any amendment or modification to any contract let, by any
Federal agency which--
(i) is to be awarded pursuant to the formal
advertising method of procurement,
(ii) is required to contain the clause stated in
paragraph (3) of this subsection,
(iii) may exceed $1,000,000 in the case of a contract
for the construction of any public facility, or
$500,000, in the case of all other contracts, and
(iv) offers subcontracting possibilities,
shall contain a clause requiring any bidder who is selected to
be awarded a contract to submit to the Federal agency concerned
a subcontracting plan which incorporates the information
prescribed in paragraph (6).
(B) If, within the time limit prescribed in regulations of
the Federal agency concerned, the bidder selected to be awarded
the contract fails to submit the subcontracting plan required
by this paragraph, such bidder shall become ineligible to be
awarded the contract. Prior compliance of the bidder with other
such subcontracting plans shall be considered by the Federal
agency in determining the responsibility of such bidder for the
award of the contract. The subcontracting plan of the bidder
awarded the contract shall be included in and made a material
part of the contract.
(6) Each subcontracting plan required under paragraph (4) or
(5) shall include--
(A) percentage goals for the utilization as
subcontractors of small business concerns, small
business concerns owned and controlled by veterans,
small business concerns owned and controlled by
service-disabled veterans, qualified HUBZone small
business concerns, small business concerns owned and
controlled by socially and economically disadvantaged
individuals, and small business concerns owned and
controlled by women;
(B) the name of an individual within the employ of
the offeror or bidder who will administer the
subcontracting program of the offeror or bidder and a
description of the duties of such individual;
(C) a description of the efforts the offeror or
bidder will take to assure that small business
concerns, small business concerns owned and controlled
by veterans, small business concerns owned and
controlled by service-disabled veterans, qualified
HUBZone small business concerns, small business
concerns owned and controlled by socially and
economically disadvantaged individuals, and small
business concerns owned and controlled by women will
have an equitable opportunity to compete for
subcontracts;
(D) assurances that the offeror or bidder will
include the clause required by paragraph (2) of this
subsection in all subcontracts which offer further
subcontracting opportunities, and that the offeror or
bidder will require all subcontractors (except small
business concerns) who receive subcontracts in excess
of $1,000,000 in the case of a contract for the
construction of any public facility, or in excess of
$500,000 in the case of all other contracts, to adopt a
plan similar to the plan required under paragraph (4)
or (5), and assurances at a minimum that the offeror or
bidder, and all subcontractors required to maintain
subcontracting plans pursuant to this paragraph, will--
(i) review and approve subcontracting plans
submitted by their subcontractors;
(ii) monitor subcontractor compliance with
their approved subcontracting plans;
(iii) ensure that subcontracting reports are
submitted by their subcontractors when
required;
(iv) acknowledge receipt of their
subcontractors' reports;
(v) compare the performance of their
subcontractors to subcontracting plans and
goals; and
(vi) discuss performance with subcontractors
when necessary to ensure their subcontractors
make a good faith effort to comply with their
subcontracting plans;
(E) assurances that the offeror or bidder will submit
such periodic reports and cooperate in any studies or
surveys as may be required by the Federal agency or the
Administration in order to determine the extent of
compliance by the offeror or bidder with the
subcontracting plan;
(F) a recitation of the types of records the
successful offeror or bidder will maintain to
demonstrate procedures which have been adopted to
comply with the requirements and goals set forth in
this plan, including the establishment of source lists
of small business concerns, small business concerns
owned and controlled by veterans, small business
concerns owned and controlled by service-disabled
veterans, qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged individuals,
and small business concerns owned and controlled by
women; and efforts to identify and award subcontracts
to such small business concerns;
(G) a recitation of the types of records the
successful offeror or bidder will maintain to
demonstrate procedures which have been adopted to
ensure subcontractors at all tiers comply with the
requirements and goals set forth in the plan
established in accordance with subparagraph (D) of this
paragraph, including--
(i) the establishment of source lists of
small business concerns, small business
concerns owned and controlled by veterans,
small business concerns owned and controlled by
service-disabled veterans, qualified HUBZone
small business concerns, small business
concerns owned and controlled by socially and
economically disadvantaged individuals, and
small business concerns owned and controlled by
women; and
(ii) efforts to identify and award
subcontracts to such small business concerns;
and
(H) a representation that the offeror or bidder
will--
(i) make a good faith effort to acquire
articles, equipment, supplies, services, or
materials, or obtain the performance of
construction work from the small business
concerns used in preparing and submitting to
the contracting agency the bid or proposal, in
the same amount and quality used in preparing
and submitting the bid or proposal; and
(ii) provide to the contracting officer a
written explanation if the offeror or bidder
fails to acquire articles, equipment, supplies,
services, or materials or obtain the
performance of construction work as described
in clause (i).
(7) The head of the contracting agency shall ensure
that--
(A) the agency collects and reports data on
the extent to which contractors of the agency
meet the goals and objectives set forth in
subcontracting plans submitted pursuant to this
subsection; and
(B) the agency periodically reviews data
collected and reported pursuant to subparagraph
(A) for the purpose of ensuring that such
contractors comply in good faith with the
requirements of this subsection and
subcontracting plans submitted by the
contractors pursuant to this subsection.
(8) The provisions of paragraphs (4), (5), and (6) shall not
apply to offerors or bidders who are small business concerns.
(9) The failure of any contractor or subcontractor to comply
in good faith with--
(A) the clause contained in paragraph (3) of this
subsection, or
(B) any plan required of such contractor pursuant to
the authority of this subsection to be included in its
contract or subcontract,
shall be a material breach of such contract or subcontract and
may be considered in any past performance evaluation of the
contractor.
(10) Nothing contained in this subsection shall be construed
to supersede the requirements of Defense Manpower Policy Number
4A (32A CFR Chap. 1) or any successor policy.
(11) In the case of contracts within the provisions of
paragraphs (4), (5), and (6), the Administration is authorized
to--
(A) assist Federal agencies and businesses in
complying with their responsibilities under the
provisions of this subsection, including the
formulation of subcontracting plans pursuant to
paragraph (4);
(B) review any solicitation for any contract to be
let pursuant to paragraphs (4) and (5) to determine the
maximum practicable opportunity for small business
concerns, small business concerns owned and controlled
by veterans, small business concerns owned and
controlled by service-disabled veterans, qualified
HUBZone small business concerns, small business
concerns owned and controlled by socially and
economically disadvantaged individuals, and small
business concerns owned and controlled by women to
participate as subcontractors in the performance of any
contract resulting from any solicitation, and to submit
its findings, which shall be advisory in nature, to the
appropriate Federal agency; and
(C) evaluate compliance with subcontracting plans as
a supplement to evaluations performed by the
contracting agency, either on a contract-by-contract
basis or, in the case of contractors having multiple
contracts, on an aggregate basis.
(12) For purposes of determining the attainment of a
subcontract utilization goal under any subcontracting plan
entered into with any executive agency pursuant to this
subsection, a mentor firm providing development assistance to a
protege firm under the pilot Mentor-Protege Program established
pursuant to section 831 of the National Defense Authorization
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301
note) shall be granted credit for such assistance in accordance
with subsection (g) of such section.
(13) Payment of Subcontractors.--
(A) Definition.--In this paragraph, the term
``covered contract'' means a contract relating to which
a prime contractor is required to develop a
subcontracting plan under paragraph (4) or (5).
(B) Notice.--
(i) In general.--A prime contractor for a
covered contract shall notify in writing the
contracting officer for the covered contract if
the prime contractor pays a reduced price to a
subcontractor for goods and services upon
completion of the responsibilities of the
subcontractor or the payment to a subcontractor
is more than 90 days past due for goods or
services provided for the covered contract for
which the Federal agency has paid the prime
contractor.
(ii) Contents.--A prime contractor shall
include the reason for the reduction in a
payment to or failure to pay a subcontractor in
any notice made under clause (i).
(C) Performance.--A contracting officer for a covered
contract shall consider the unjustified failure by a
prime contractor to make a full or timely payment to a
subcontractor in evaluating the performance of the
prime contractor.
(D) Control of funds.--If the contracting officer for
a covered contract determines that a prime contractor
has a history of unjustified, untimely payments to
contractors, the contracting officer shall record the
identity of the contractor in accordance with the
regulations promulgated under subparagraph (E).
(E) Regulations.--Not later than 1 year after the
date of enactment of this paragraph, the Federal
Acquisition Regulatory Council established under
section 25(a) of the Office of Federal Procurement
Policy Act (41 U.S.C. 421(a)) shall amend the Federal
Acquisition Regulation issued under section 25 of such
Act to--
(i) describe the circumstances under which a
contractor may be determined to have a history
of unjustified, untimely payments to
subcontractors;
(ii) establish a process for contracting
officers to record the identity of a contractor
described in clause (i); and
(iii) require the identity of a contractor
described in clause (i) to be incorporated in,
and made publicly available through, the
Federal Awardee Performance and Integrity
Information System, or any successor thereto.
(14) An offeror for a covered contract that intends
to identify a small business concern as a potential
subcontractor in a bid or proposal for the contract, or
in a plan submitted pursuant to this subsection in
connection with the contract, shall notify the small
business concern prior to making such identification.
(15) The Administrator shall establish a reporting
mechanism that allows a subcontractor or potential
subcontractor to report fraudulent activity or bad
faith by a contractor with respect to a subcontracting
plan submitted pursuant to this subsection.
(16) Credit for Certain Subcontractors.--
(A) For purposes of determining whether or not a
prime contractor has attained the percentage goals
specified in paragraph (6)--
(i) if the subcontracting goals pertain only
to a single contract with the executive agency,
the prime contractor shall receive credit for
small business concerns performing as first
tier subcontractors or subcontractors at any
tier pursuant to the subcontracting plans
required under paragraph (6)(D) in an amount
equal to the dollar value of work awarded to
such small business concerns; and
(ii) if the subcontracting goals pertain to
more than one contract with one or more
executive agencies, or to one contract with
more than one executive agency, the prime
contractor may only count first tier
subcontractors that are small business
concerns.
(B) Nothing in this paragraph shall abrogate the
responsibility of a prime contractor to make a good-
faith effort to achieve the first tier small business
subcontracting goals negotiated under paragraph (6)(A),
or the requirement for subcontractors with further
opportunities for subcontracting to make a good-faith
effort to achieve the goals established under paragraph
(6)(D).
(e)(1) Except as provided in subsection (g)--
(A) an executive agency intending to--
(i) solicit bids or proposals for a contract
for property or services for a price expected
to exceed $25,000; or
(ii) place an order, expected to exceed
$25,000, under a basic agreement, basis
ordering agreement, or similar arrangement,
shall publish a notice described in subsection (f);
(B) an executive agency intending to solicit bids or
proposals for a contract for property or services shall
post, for a period of not less than ten days, in a
public place at the contracting office issuing the
solicitation a notice of solicitation described in
subsection (f)--
(i) in the case of an executive agency other
than the Department of Defense, if the contract
is for a price expected to exceed $10,000, but
not to exceed $25,000; and
(ii) in the case of the Department of
Defense, if the contract is for a price
expected to exceed $5,000, but not to exceed
$25,000; and
(C) an executive agency awarding a contract for
property or services for a price exceeding $100,000, or
placing an order referred to in clause (A)(ii)
exceeding $100,000, shall furnish for publication by
the Secretary of Commerce a notice announcing the award
or order if there is likely to be any subcontract under
such contract or order.
(2)(A) A notice of solicitation required to be published
under paragraph (1) may be published--
(i) by electronic means that meet the accessibility
requirements under section 18(a)(7) of the Office of
Federal Procurement Policy Act (41 U.S.C. 416(a)(7));
or
(ii) by the Secretary of Commerce in the Commerce
Business Daily.
(B) The Secretary of Commerce shall promptly publish in the
Commerce Business Daily each notice or announcement received
under this subsection for publication by that means.
(3) Whenever an executive agency is required by paragraph
(1)(A) to publish a notice of solicitation, such executive
agency may not--
(A) issue the solicitation earlier than 15 days after
the date on which the notice is published; or
(B) in the case of a contract or order estimated to
be greater than the simplified acquisition threshold,
establish a deadline for the submission of all bids or
proposals in response to the notice required by
paragraph (1)(A) that--
(i) in the case of an order under a basic
agreement, basic ordering agreement, or similar
arrangement, is earlier than the date 30 days
after the date the notice required by paragraph
(1)(A)(ii) is published;
(ii) in the case of a solicitation for
research and development, is earlier than the
date 45 days after the date the notice required
by paragraph (1)(A)(i) is published; or
(iii) in any other case, is earlier than the
date 30 days after the date the solicitation is
issued.
(f) Each notice of solicitation required by subparagraph (A)
or (B) of subsection (e)(1) shall include--
(1) an accurate description of the property or
services to be contracted for, which description (A)
shall not be unnecessarily restrictive of competition,
and (B) shall include, as appropriate, the agency
nomenclature, National Stock Number or other part
number, and a brief description of the item's form,
fit, or function, physical dimensions, predominant
material of manufacture, or similar information that
will assist a prospective contractor to make an
informed business judgment as to whether a copy of the
solicitation should be requested;
(2) provisions that--
(A) state whether the technical data required
to respond to the solicitation will not be
furnished as part of such solicitation, and
identify the source in the Government, if any,
from which the technical data may be obtained;
and
(B) state whether an offeror, its product, or
service must meet a qualification requirement
in order to be eligible for award, and, if so,
identify the office from which a qualification
requirement may be obtained;
(3) the name, business address, and telephone number
of the contracting officer;
(4) a statement that all responsible sources may
submit a bid, proposal, or quotation (as appropriate)
which shall be considered by the agency;
(5) in the case of a procurement using procedures
other than competitive procedures, a statement of the
reason justifying the use of such procedures and the
identity of the intended source; and
(6) in the case of a contract in an amount estimated
to be greater than $25,000 but not greater than the
simplified acquisition threshold--
(A) a description of the procedures to be
used in awarding the contract; and
(B) a statement specifying the periods for
prospective offerors and the contracting
officer to take the necessary preaward and
award actions.
(g)(1) A notice is not required under subsection (e)(1) if--
(A) the proposed procurement is for an amount not
greater than the simplified acquisition threshold and
is to be conducted by--
(i) using widespread electronic public notice
of the solicitation in a form that allows
convenient and universal user access through a
single, Government-wide point of entry; and
(ii) permitting the public to respond to the
solicitation electronically.
(B) the notice would disclose the executive agency's
needs and the disclosure of such needs would compromise
the national security;
(C) the proposed procurement would result from
acceptance of--
(i) any unsolicited proposal that
demonstrates a unique and innovative research
concept and the publication of any notice of
such unsolicited research proposal would
disclose the originality of thought or
innovativeness of the proposal or would
disclose proprietary information associated
with the proposal; or
(ii) a proposal submitted under section 9 of
this Act;
(D) the procurement is made against an order placed
under a requirements contract;
(E) the procurement is made for perishable
subsistence supplies;
(F) the procurement is for utility services, other
than telecommunication services, and only one source is
available; or
(G) the procurement is for the services of an expert
for use in any litigation or dispute (including
preparation for any foreseeable litigation or dispute)
that involves or could involve the Federal Government
in any trial, hearing, or proceeding before any court,
administrative tribunal, or agency, or in any part of
an alternative dispute resolution process, whether or
not the expert is expected to testify.
(2) The requirements of subsection (a)(1)(A) do not apply to
any procurement under conditions described in paragraph (2),
(3), (4), (5), or (7) of section 303(c) of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253(c)) or
paragraph (2), (3), (4), (5), and (7) of section 2304(c) of
title 10, United States Code.
(3) The requirements of subsection (a)(1)(A) shall not apply
in the case of any procurement for which the head of the
executive agency makes a determination in writing, after
consultation with the Administrator for Federal Procurement
Policy and the Administrator of the Small Business
Administration, that it is not appropriate or reasonable to
publish a notice before issuing a solicitation.
(h)(1) An executive agency may not award a contract using
procedures other than competitive procedures unless--
(A) except as provided in paragraph (2), a written
justification for the use of such procedures has been
approved--
(i) in the case of a contract for an amount
exceeding $100,000 (but equal to or less than
$1,000,000), by the advocate for competition
for the procuring activity (without further
delegation);
(ii) in the case of a contract for an amount
exceeding $1,000,000 (but equal to or less than
$10,000,000), by the head of the procuring
activity or a delegate who, if a member of the
Armed Forces, is a general or flag officer, or,
if a civilian, is serving in a position in
grade GS-16 or above under the General Schedule
(or in a comparable or higher position under
another schedule); or
(iii) in the case of a contract for an amount
exceeding $10,000,000, by the senior
procurement executive of the agency designated
pursuant to section 16(3) of the Office of
Federal Procurement Policy Act (41 U.S.C.
414(3)) (without further delegation); and
(B) all other requirements applicable to the use of
such procedures under title III of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 251
et sq.) or chapter 137 of title 10, United States Code,
as appropriate, have been satisfied.
(2) The same exceptions as are provided in section 303(f)(2)
of the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253(f)(2)) or section 2304(f)(2) of title 10, United
States Code, shall apply with respect to the requirements of
paragraph (1)(A) of this subsection in the same manner as such
exceptions apply to the requirements of section 303(f)(1) of
such Act or section 2304(f)(1) of such title, as appropriate.
(i) An executive agency shall make available to any business
concern, or the authorized representative of such concern, the
complete solicitation package for any on-going procurement
announced pursuant to a notice under subsection (e). An
executive agency may require the payment of a fee, not
exceeding the actual cost of duplication, for a copy of such
package.
(j) For purposes of this section, the term ``executive
agency'' has the meaning provided such term in section 4(1) of
the Office of Federal Procurement Policy Act (41 U.S.C.
403(1)).
(k) Notices of Subcontracting Opportunities.--
(1) In general.--Notices of subcontracting
opportunities may be submitted for publication on the
appropriate Federal Web site (as determined by the
Administrator) by--
(A) a business concern awarded a contract by
an executive agency subject to subsection
(e)(1)(C); and
(B) a business concern that is a
subcontractor or supplier (at any tier) to such
contractor having a subcontracting opportunity
in excess of $10,000.
(2) Content of notice.--The notice of a
subcontracting opportunity shall include--
(A) a description of the business opportunity
that is comparable to the description specified
in paragraphs (1), (2), (3), and (4) of
subsection (f); and
(B) the due date for receipt of offers.
(l) Management Assistance for Small Businesses Affected by
Military Operations.--The Administration shall utilize, as
appropriate, its entrepreneurial development and management
assistance programs, including programs involving State or
private sector partners, to provide business counseling and
training to any small business concern adversely affected by
the deployment of units of the Armed Forces of the United
States in support of a period of military conflict (as defined
in section 7(n)(1)).
(m) Procurement Program for Women-owned Small Business
Concerns.--
(1) Definitions.--In this subsection, the following
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 determined without
regard to any community property law.
(2) Authority to restrict competition.--In accordance
with this subsection, a contracting officer 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--
(A) each of the concerns is not less than 51
percent owned by one or more women who are
economically disadvantaged (and such ownership
is determined without regard to any community
property law);
(B) the contracting officer has a reasonable
expectation that two 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) in the estimation of the contracting
officer, the contract award can be made at a
fair and reasonable price; and
(E) each of the concerns is certified by a
Federal agency, a State government, the
Administrator, or a national certifying entity
approved by the Administrator as a small
business concern owned and controlled by women.
(3) Waiver.--With respect to a small business 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 underrepresented.
(4) Identification of industries.--The Administrator
shall conduct a study to identify industries in which
small business concerns owned and controlled by women
are underrepresented with respect to Federal
procurement contracting.
(5) Enforcement; penalties.--
(A) Verification of eligibility.--In carrying
out this subsection, the Administrator shall
establish procedures relating to--
(i) the filing, investigation, and
disposition by the Administration of
any challenge 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 provided to the
Administration by a small business
concern under paragraph (2)(E)); and
(ii) verification by the
Administrator of the accuracy of any
certification made or information
provided to the Administration by a
small business concern under paragraph
(2)(E).
(B) Examinations.--The procedures established
under subparagraph (A) may provide for program
examinations (including random program
examinations) by the Administrator of any small
business concern making a certification or
providing information to the Administrator
under paragraph (2)(E).
(C) Penalties.--In addition to the penalties
described in section 16(d), any small business
concern that is determined by the Administrator
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 department or
agency shall promptly provide to the Administrator such
information as the Administrator determines to be
necessary to carry out this subsection.
(7) Authority for sole source contracts for
economically disadvantaged small business concerns
owned and controlled by women.--A contracting officer
may award a sole source contract under this subsection
to any small business concern owned and controlled by
women described in paragraph (2)(A) and certified under
paragraph (2)(E) if--
(A) such concern is determined to be a
responsible contractor with respect to
performance of the contract opportunity and the
contracting officer does not have a reasonable
expectation that 2 or more businesses described
in paragraph (2)(A) will submit offers;
(B) the anticipated award price of the
contract (including options) will not exceed--
(i) $6,500,000, in the case of a
contract opportunity assigned a
standard industrial classification code
for manufacturing; or
(ii) $4,000,000, in the case of any
other contract opportunity; and
(C) in the estimation of the contracting
officer, the contract award can be made at a
fair and reasonable price.
(8) Authority for sole source contracts for small
business concerns owned and controlled by women in
substantially underrepresented industries.--A
contracting officer may award a sole source contract
under this subsection to any small business concern
owned and controlled by women certified under paragraph
(2)(E) that is in an industry in which small business
concerns owned and controlled by women are
substantially underrepresented (as determined by the
Administrator under paragraph (3)) if--
(A) such concern is determined to be a
responsible contractor with respect to
performance of the contract opportunity and the
contracting officer does not have a reasonable
expectation that 2 or more businesses in an
industry that has received a waiver under
paragraph (3) will submit offers;
(B) the anticipated award price of the
contract (including options) will not exceed--
(i) $6,500,000, in the case of a
contract opportunity assigned a
standard industrial classification code
for manufacturing; or
(ii) $4,000,000, in the case of any
other contract opportunity; and
(C) in the estimation of the contracting
officer, the contract award can be made at a
fair and reasonable price.
(n) Business 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 coalition of private
entities, public entities, or any combination of
private and public entities--
(A) to expand business-to-business
relationships between large and small
businesses; and
(B) to provide businesses, directly or
indirectly, with online information and a
database of companies that are interested in
mentor-protege programs or community-based,
statewide, 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 paragraph (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
expended, for each of fiscal years 2001 through 2006.
* * * * * * *
Sec. 20. (a)(1) 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 Development
Center Program under section 21, but not to exceed the
annual funding level, as specified in section 21(a);
(B) to pay the expenses of the National Small
Business Development Center Advisory Board, as 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 referred
to in section 21(a)(3)(A) for conducting the
accreditation program, as provided in section 21(k)(2);
(E) to pay the expenses of the Administration,
including salaries of examiners, for conducting
examinations as part of the accreditation program
conducted by the association referred to in section
21(a)(3)(A); and
(F) to pay for small business development
center grants as mandated or directed by
Congress.
(2) Notwithstanding any other provision of law, the
Administration shall enter into commitments for direct loans
and to guarantee loans, debentures, payment of rentals, or
other amounts due under qualified contracts and other types of
financial assistance and enter into commitments to purchase
debentures and preferred securities and to guarantee sureties
against loss pursuant to programs under this Act and the Small
Business Investment Act of 1958, in the full amounts provided
by law subject only to (A) the availability of qualified
applications, and (B) limitations contained in appropriations
Acts. Nothing in this paragraph authorizes the Administration
to reduce or limit its authority to enter into such
commitments. Subject to approval in appropriations Acts,
amounts authorized for preferred securities, debentures or
participating securities under title III of the Small Business
Investment Act of 1958 may be obligated in one fiscal year and
disbursed or guaranteed in any 1 or more of the 4 subsequent
fiscal years.
(3) There are authorized to be transferred from the disaster
loan revolving fund such sums as may be necessary and
appropriate for administrative expenses of the Administration.
(4) Except as may be otherwise specifically provided by law,
the amount of deferred participation loans authorized in this
section--
(A) shall mean the net amount of the loan principal
guaranteed by the Small Business Administration (and
does not include any amount which is not guaranteed);
and
(B) shall be available for a national program, except
that the Administration may use not more than an amount
equal to 10 percent of the amount authorized each year
for any special or pilot program directed to identified
sectors of the small business community or to specific
geographic regions of the United States.
(b) There are authorized to be appropriated to the
Administration for fiscal year 1991 such sums as may be
necessary to carry out the provisions of this Act and the Small
Business Investment Act of 1958. There also are hereby
authorized to be appropriated such sums as may be necessary and
appropriate for the carrying out of the provisions and
purposes, including administrative expenses, of sections
7(b)(1) and 7(b)(2) of this Act; and there are authorized to be
transferred from the disaster loan revolving fund such sums as
may be necessary and appropriate for such administrative
expenses.
(c) Disaster Mitigation Pilot Program.--The following program
levels are authorized for loans under section 7(b)(1)(C):
(1) $15,000,000 for fiscal year 2005.
(2) $15,000,000 for fiscal year 2006.
(d) Fiscal Year 2005.--
(1) Program levels.--The following program levels are
authorized for fiscal year 2005:
(A) For the programs authorized by this Act,
the Administration is authorized to make--
(i) $75,000,000 in technical
assistance grants, as provided in
section 7(m); and
(ii) $105,000,000 in direct loans, as
provided in 7(m).
(B) For the programs authorized by this Act,
the Administration is authorized to make
$23,050,000,000 in deferred participation loans
and other financings. Of such sum, the
Administration is authorized to make--
(i) $16,500,000,000 in general
business loans, as provided in section
7(a);
(ii) $6,000,000,000 in certified
development company financings, as
provided in section 7(a)(13) and as
provided in section 504 of the Small
Business Investment Act of 1958;
(iii) $500,000,000 in loans, as
provided in section 7(a)(21); and
(iv) $50,000,000 in loans, as
provided in section 7(m).
(C) For the programs authorized by title III
of the Small Business Investment Act of 1958,
the Administration is authorized to make--
(i) $4,250,000,000 in purchases of
participating securities; and
(ii) $3,250,000,000 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
percent may be in bonds approved pursuant to
section 411(a)(3) of that Act.
(E) The Administration is authorized to make
grants or enter into cooperative agreements for
a total amount of $7,000,000 for the Service
Corps of Retired Executives program authorized
by section 8(b)(1).
(2) Additional authorizations.--
(A) There are authorized to be appropriated
to the Administration for fiscal year 2005 such
sums as may be necessary to carry out the
provisions of this Act not elsewhere provided
for, including administrative expenses and
necessary loan capital for disaster loans
pursuant to section 7(b), and to carry out the
Small Business Investment Act of 1958,
including salaries and expenses of the
Administration.
(B) Notwithstanding any other provision of
this paragraph, for fiscal year 2005--
(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 business
loans under paragraph (1)(B)(i) is
fully funded; and
(ii) the Administration may not
approve loans on its own behalf or on
behalf of any other Federal department
or agency, by contract or otherwise,
under terms and conditions other than
those specifically 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 $2,000,000.
(e) Fiscal Year 2006.--
(1) Program levels.--The following program levels are
authorized for fiscal year 2006:
(A) For the programs authorized by this Act,
the Administration is authorized to make--
(i) $80,000,000 in technical
assistance grants, as provided in
section 7(m); and
(ii) $110,000,000 in direct loans, as
provided in 7(m).
(B) For the programs authorized by this Act,
the Administration is authorized to make
$25,050,000,000 in deferred participation loans
and other financings. Of such sum, the
Administration is authorized to make--
(i) $17,000,000,000 in general
business loans, as provided in section
7(a);
(ii) $7,500,000,000 in certified
development company financings, as
provided in section 7(a)(13) and as
provided in section 504 of the Small
Business Investment Act of 1958;
(iii) $500,000,000 in loans, as
provided in section 7(a)(21); and
(iv) $50,000,000 in loans, as
provided in section 7(m).
(C) For the programs authorized by title III
of the Small Business Investment Act of 1958,
the Administration is authorized to make--
(i) $4,500,000,000 in purchases of
participating securities; and
(ii) $3,500,000,000 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
$6,000,000,000, of which not more than 50
percent may be in bonds approved pursuant to
section 411(a)(3) of that Act.
(E) The Administration is authorized to make
grants or enter into cooperative agreements for
a total amount of $7,000,000 for the Service
Corps of Retired Executives program authorized
by section 8(b)(1).
(2) Additional authorizations.--
(A) There are authorized to be appropriated
to the Administration for fiscal year 2006 such
sums as may be necessary to carry out the
provisions of this Act not elsewhere provided
for, including administrative expenses and
necessary loan capital for disaster loans
pursuant to section 7(b), and to carry out the
Small Business Investment Act of 1958,
including salaries and expenses of the
Administration.
(B) Notwithstanding any other provision of
this paragraph, for fiscal year 2006--
(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 business
loans under paragraph (1)(B)(i) is
fully funded; and
(ii) the Administration may not
approve loans on its own behalf or on
behalf of any other Federal department
or agency, by contract or otherwise,
under terms and conditions other than
those specifically 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 $2,000,000.
[(j)] (f) Fiscal Year 2004 Purchase and Guarantee Authority
Under Title III of Small Business Investment Act of 1958.--For
fiscal year 2004, for the programs authorized by title III of
the Small Business Investment Act of 1958 (15 U.S.C. 681 et
seq.), the Administration is authorized to make--
(1) $4,000,000,000 in purchases of participating
securities; and
(2) $3,000,000,000 in guarantees of debentures.
(g) SCORE Program.--There are authorized to be appropriated
to the Administrator to carry out the SCORE program authorized
by section 8(b)(1) such sums as are necessary for the
Administrator to make grants or enter into cooperative
agreements in a total amount that does not exceed $10,500,000
in each of fiscal years 2017 and 2018.
Sec. 21. (a)(1) The Administration is authorized to make
grants (including contracts and cooperative agreements) to any
State government or any agency thereof, any regional entity,
any State-chartered development, credit or finance corporation,
[any women's business center operating pursuant to section 29,]
any public or private institution of higher education,
including but not limited to any land-grant college or
university, any college or school of business, engineering,
commerce, or agriculture, community college or junior college,
or to any entity formed by two or more of the above entities
(herein referred to as ``applicants'') to assist in
establishing small business development centers and to any such
labor for: small business oriented employment or natural
resources development programs; studies, research, and
counseling concerning the managing, financing, and operation of
small business enterprises, management and technical assistance
regarding small business participation in international
markets, export promotion and technology transfer; delivery or
distribution of such services and information; and providing
access to business analysts who can refer small business
concerns to available experts: Provided, That after December
31, 1990, the Administration shall not make a grant to any
applicant other than an institution of higher education or a
women's business center operating pursuant to section 29 as a
Small Business Development Center unless the applicant was
receiving a grant (including a contract or cooperative
agreement) on such date. The Administration shall require any
applicant for a small business development center grant with
performance commencing on or after January 1, 1992 to have its
own budget and to primarily utilize institutions of higher
education and women's business centers operating pursuant to
section 29 to provide services to the small business community.
The term of such grants shall be made on a calendar year basis
or to coincide with the Federal fiscal year.
(2) Cooperation to provide international trade
services.--
(A) Information and services.--The small
business development centers shall work in
close cooperation with the Administration's
regional and local offices, the Department of
Commerce, appropriate Federal, State and local
agencies (including State trade agencies), and
the small business community to serve as an
active information dissemination and service
delivery mechanism for existing trade
promotion, trade finance, trade adjustment,
trade remedy and trade data collection programs
of particular utility for small businesses.
(B) Cooperation with state trade agencies and
export assistance centers.--A small business
development center that counsels a small
business concern on issues relating to
international trade shall--
(i) consult with State trade agencies
and Export Assistance Centers to
provide appropriate services to the
small business concern; and
(ii) as necessary, refer the small
business concern to a State trade
agency or an Export Assistance Center
for further counseling or assistance.
(C) Definition.--In this paragraph, the term
``Export Assistance Center'' has the same
meaning as in section 22.
(3) The Small Business Development Center Program shall be
under the general management and oversight of the
Administration for the delivery of programs and services to the
small business community. Such programs and services shall be
jointly developed, negotiated, and agreed upon, with full
participation of both parties, pursuant to an executed
cooperative agreement between the Small Business Development
Center applicant and the Administration.
(A) Small business development centers are authorized to form
an association to pursue matters of common concern. If more
than a majority of the small business development centers which
are operating pursuant to agreements with the Administration
are members of such an association, the Administration is
authorized and directed to recognize the existence and
activities of such an association and to consult with it and
develop documents (i) announcing the annual scope of activities
pursuant to this section, (ii) requesting proposals to deliver
assistance [as provided in this section and] as provided in
this section, (iii) governing the general operations and
administration of the Small Business Development Center
Program, specifically including the development of regulations
and a uniform negotiated cooperative agreement for use on an
annual basis when entering into individual negotiated
agreements with small business development centers, and (iv)
governing data collection activities related to applicants
receiving grants under this section.
(B) Provisions governing audits, cost principles and
administrative requirements for Federal grants, contracts and
cooperative agreements which are included in uniform
requirements of Office of Management and Budget (OMB) Circulars
shall be incorporated by reference and shall not be set forth
in summary or other form in regulations.
(C) Whereas On an annual basis, the Small Business
Development Center shall review and coordinate public
and private partnerships and cosponsorships with the
Administration for the purpose of more efficiently
leveraging available resources on a National and a
State basis.
(D) Fees from private partnerships and cosponsorships.--
Participation in private partnerships and cosponsorships with
the Administration shall not limit small business development
centers from collecting fees or other income related to the
operation of such private partnerships and cosponsorships.
(4) Small business development center program level.--
(A) In general.--The Administration shall require as
a condition of any grant (or amendment or modification
thereof) made to an applicant under this section, that
a matching amount (excluding any fees collected from
recipients of such assistance) equal to the amount of
such grant be provided from sources other than the
Federal Government, to be comprised of not less than 50
percent cash and not more than 50 percent of indirect
costs and in-kind contributions.
(B) Restriction.--The matching amount described in
subparagraph (A) shall not include any indirect costs
or in-kind contributions derived from any Federal
program.
(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 available
under section 20(a) for the Small
Business Development Center Program,
less any reductions made for expenses
authorized by clause (v) of this
subparagraph, shall be divided on a pro
rata basis, based on the percentage of
the population of each State, as
compared to the population of the
United States.
(II) If the pro rata amount
calculated under subclause (I) for any
State is less than the minimum funding
level under clause (iii), the
Administration shall determine the
aggregate amount necessary to achieve
that minimum funding level for each
such State.
(III) The aggregate amount calculated
under subclause (II) shall be deducted
from the amount calculated under
subclause (I) for States eligible to
receive more than the minimum funding
level. The deductions shall be made on
a pro rata basis, based on the
population of each such State, as
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 exceed
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:
(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
funding 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
Administration shall distribute the remaining
funds as follows:
(I) If the grant to any State is less
than the amount received by that State
in fiscal year 2000, the Administration
shall distribute such remaining funds,
on a pro rata basis, based on the
percentage of 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 fiscal
year 2000, or until such funds are
exhausted, whichever first occurs.
(II) If any funds remain after the
application of subclause (I), the
remaining amount may be distributed as
supplemental grants to any State, as
the Administration determines, in its
discretion, to be appropriate, after
consultation with the association
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 subparagraphs (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 enumerated
in section 20(a)(1)(E).]
(I) In general.--Of the amounts made
available in any fiscal year to carry
out this section not more than $600,000
may be used by the Administration to
pay expenses enumerated in
subparagraphs (B) through (D) of
section 20(a)(1).
(II) Limitation.--No funds described
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, or accompanying
report language, for specific
institutions or for purposes other than
the general small business development
center program) or would further reduce
the amount of such grants below such
amount.
(vi) Exclusions.--Grants provided to a State
by the Administration or another Federal agency
to carry out subsection (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 funding
for a State under clause (ii) of this
subparagraph.
(vii) Authorization of appropriations.--There
are authorized to be appropriated to carry out
this subparagraph--
(I) $130,000,000 for fiscal year
2005; and
(II) $135,000,000 for fiscal year
2006.
(viii) Limitation.--From the funds
appropriated pursuant to clause (vii), the
Administration shall reserve not less than
$1,000,000 in each fiscal year to develop
portable assistance for startup and
sustainability non-matching grant programs to
be conducted by eligible small business
development centers in communities that are
economically challenged as a result of a
business or government facility down sizing or
closing, which has resulted in the loss of jobs
or small business instability. A non-matching
grant under this clause shall not exceed
$100,000, and shall be used for small business
development center personnel expenses and
related small business programs and services.
(ix) State defined.--In this subparagraph,
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.
(5) Federal contracts with small business development
centers.--
(A) In general.--Subject to the conditions set forth
in subparagraph (B), a small business development
center may enter into a contract with a Federal
department or agency to provide specific assistance to
small business concerns.
(B) Contract prerequisites.--Before bidding on a
contract described in subparagraph (A), a small
business development center shall receive approval from
the Associate Administrator of the small business
development center program of the subject and general
scope of the contract. Each approval under subparagraph
(A) shall be based upon a determination that the
contract will provide assistance to small business
concerns and that performance of the contract will not
hinder the small business development center in
carrying out the terms of the grant received by the
small business development center from the
Administration.
(C) Exemption from matching requirement.--A contract
under this paragraph shall not be subject to the
matching funds or eligibility requirements of paragraph
(4).
(D) Additional provision.--Notwithstanding any other
provision of law, a contract for assistance under this
paragraph shall not be applied to any Federal
department or agency's small business, woman-owned
business, or socially and economically disadvantaged
business contracting goal under section 15(g).
(6) Any applicant which is funded by the
Administration as a Small Business Development Center
may apply for an additional grant to be used solely to
assist--
(A) with the development and enhancement of
exports by small business concerns;
(B) in technology transfer; and
(C) with outreach, development, and
enhancement of minority-owned small business
startups or expansions, HUBZone small business
concerns, veteran-owned small business startups
or expansions, and women-owned small business
startups or expansions, in communities impacted
by base closings or military or corporate
downsizing, or in rural or underserved
communities;
as provided under subparagraphs (B) through (G) of
subsection (c)(3). Applicants for such additional
grants shall comply with all of the provisions of this
section, including providing matching funds, except
that funding under this paragraph shall be effective
for any fiscal year to the extent provided in advance
in appropriations Acts and shall be in addition to the
dollar program limitations specified in paragraphs (4)
and (5). No recipient of funds under this paragraph
shall receive a grant which would exceed its pro rata
share of a $15,000,000 program based upon the
populations to be served by the Small Business
Development Center as compared to the total population
of the United States. The minimum amount of eligibility
for any State shall be $100,000.
(7) Privacy requirements.--
(A) In general.--A small business development
center, consortium of small business
development centers, or contractor or agent of
a small business development center may not
disclose the name, address, or telephone number
of any individual or small business concern
receiving assistance under this section to any
State, local or Federal agency, or third party
without the consent of such individual or small
business concern, unless--
(i) the Administrator is ordered to
make such a disclosure by a court in
any civil or criminal enforcement
action initiated by a Federal or State
agency; or
(ii) the Administrator considers such
a disclosure to be necessary for the
purpose of conducting a financial audit
of a small business development center,
but a disclosure under this clause
shall be limited to the information
necessary for such audit.
(B) Administrator use of information.--This
section shall not--
(i) restrict Administrator access to
program activity data; or
(ii) prevent the Administrator from
using client information to conduct
client surveys.
(C) Regulations.--
(i) In general.--The Administrator
shall issue regulations to establish
standards--
(I) for disclosures with
respect to financial audits
under subparagraph (A)(ii); and
(II) for client surveys under
subparagraph (B)(ii), including
standards for oversight of such
surveys and for dissemination
and use of client information.
(ii) Maximum privacy protection.--
Regulations under this subparagraph,
shall, to the extent practicable,
provide for the maximum amount of
privacy protection.
(iii) Inspector general.--Until the
effective date of regulations under
this subparagraph, any client survey
and the use of such information shall
be approved by the Inspector General
who shall include such approval in his
semi-annual report.
(b)(1) Financial assistance shall not be made available to
any applicant if approving such assistance would be
inconsistent with a plan for the area involved which has been
adopted by an agency recognized by the State government as
authorized to do so and approved by the Administration in
accordance with the standards and requirements established
pursuant to this section.
(2) An applicant may apply to participate in the program by
submitting to the Administration for approval a plan naming
those authorized in subsection (a) to participate in the
program, the geographic area to be served, the services that it
would provide, the method for delivering services, a budget,
and any other information and assurances the Administration may
require to insure that the applicant will carry out the
activities eligible for assistance. The Administration is
authorized to approve, conditionally approve or reject a plan
or combination of plans submitted. In all cases, the
Administration shall review plans for conformity with the plan
submitted pursuant to paragraph (1) of this subsection, and
with a view toward providing small business with the most
comprehensive and coordinated assistance in the State or part
thereof to be served.
(3) Assistance to out-of-state small business
concerns.--
(A) In general.--At the discretion of the
Administration, the Administration is
authorized to permit a small business
development center to provide advice,
information and assistance, as described in
subsection (c), to small businesses located
outside the State, but only to the extent such
businesses are located within close
geographical proximity to the small business
development center, as determined by the
Administration.
(B) Disaster recovery assistance.--
(i) In general.--At the discretion of
the Administrator, the Administrator
may authorize a small business
development center to provide advice,
information, and assistance, as
described in subsection (c), to a small
business concern located outside of the
State, without regard to geographic
proximity to the small business
development center, if the small
business concern is located in an area
for which the President has declared a
major disaster.
(ii) Term.--
(I) In general.--A small
business development center may
provide advice, information,
and assistance to a small
business concern under clause
(i) for a period of not more
than 2 years after the date on
which the President declared a
major disaster for the area in
which the small business
concern is located.
(II) Extension.--The
Administrator may, at the
discretion of the
Administrator, extend the
period described in subclause
(I).
(iii) Continuity of services.--A
small business development center that
provides counselors to an area
described in clause (i) shall, to the
maximum extent practicable, ensure
continuity of services in any State in
which the small business development
center otherwise provides services.
(iv) Access to disaster recovery
facilities.--For purposes of this
subparagraph, the Administrator shall,
to the maximum extent practicable,
permit the personnel of a small
business development center to use any
site or facility designated by the
Administrator for use to provide
disaster recovery assistance.
(c)(1) Applicants receiving grants under this section shall
assist small businesses in solving problems concerning
operations, manufacturing, engineering, technology exchange and
development, personnel administration, marketing, sales,
merchandising, finance, accounting, business strategy
development, and other disciplines required for small business
growth and expansion, innovation, increased productivity, and
management improvement, and for decreasing industry economic
concentrations. Applicants receiving grants under this section
may also assist small businesses by providing, where
appropriate, education on the requirements applicable to small
businesses under the regulations issued under section 38 of the
Arms Export Control Act (22 U.S.C. 2778) and on compliance with
those requirements.
(2) A small business development center shall provide
services as close as possible to small businesses by providing
extension services and utilizing satellite locations when
necessary. The facilities and staff of each Small Business
Development Center shall be located in such places as to
provide maximum accessibility and benefits to the small
businesses which the center is intended to serve. To the extent
possible, it also shall make full use of other Federal and
State government programs that are concerned with aiding small
business. A small business development center shall have--
(A) a full-time staff, including a full-time director
who shall have the authority to make expenditures under
the center's budget and who shall manage the program
activities;
(B) access to business analysts to counsel, assist,
and inform small business clients;
(C) access to technology transfer agent to provide
state or art technology to small businesses through
coupling with national and regional technology data
sources;
(D) access to information specialists to assist in
providing information searches and referrals to small
business;
(E) access to part-time professional specialists to
conduct research or to provide counseling assistance
whenever the need arises; and
(F) access to laboratory and adaptive engineering
facilities.
(3) Services provided by a small business development center
shall include, but shall not be limited to--
(A) furnishing one-to-one individual counseling to
small businesses, including--
(i) working with individuals to increase
awareness of basic credit practices and credit
requirements;
(ii) working with individuals to develop
business plans, financial packages, credit
applications, and contract proposals;
(iii) working with the Administration to
develop and provide informational tools for use
in working with individuals on pre-business
startup planning, existing business expansion,
and export planning; and
(iv) working with individuals referred by the
local offices of the Administration and
Administration participating lenders;
(B) assisting in technology transfer, research and
development, including applied research, and coupling
from existing sources to small businesses, including--
(i) working to increase the access of small
businesses to the capabilities of automated
flexible manufacturing systems;
(ii) working through existing networks and
developing new networks for technology transfer
that encourage partnership between the small
business and academic communities to help
commercialize university-based research and
development and introduce university-based
engineers and scientists to their counterparts
in small technology-based firms; and
(iii) exploring the viability of developing
shared production facilities, under appropriate
circumstances;
(C) in cooperation with the Department of Commerce
and other relevant Federal agencies, actively assisting
small businesses in exporting by identifying and
developing potential export markets, facilitating
export transactions, developing linkages between United
States small business firms and prescreened foreign
buyers, assisting small businesses to participate in
international trade shows, assisting small businesses
in obtaining export financing, and facilitating the
development or reorientation of marketing and
production strategies; where appropriate, the Small
Business Development Center and the Administration may
work in cooperation with the State to establish a State
international trade center for these purposes;
(D) developing a program in conjunction with the
Export-Import Bank and local and regional
Administration offices that will enable Small Business
Development Centers to serve as an information network
and to assist small business applicants for Export-
Import Bank financing programs, and otherwise identify
and help to make available export financing programs to
small businesses;
(E) working closely with the small business
community, small business consultants, State agencies,
universities and other appropriate groups to make
translation services more readily available to small
business firms doing business, or attempting to develop
business, in foreign markets;
(F) in providing assistance under this subsection,
applicants shall cooperate with the Department of
Commerce and other relevant Federal agencies to
increase access to available export market information
systems, including the CIMS system;
(G) assisting small businesses to develop and
implement strategic business plans to timely and
effectively respond to the planned closure (or
reduction) of a Department of Defense facility within
the community, or actual or projected reductions in
such firms' business base due to the actual or
projected termination (or reduction) of a Department of
Defense program or a contract in support of such
program--
(i) by developing broad economic assessments
of the adverse impacts of--
(I) the closure (or reduction) of the
Department of Defense facility on the
small business concerns providing goods
or services to such facility or to the
military and civilian personnel
currently stationed or working at such
facility; and
(II) the termination (or reduction)
of a Department of Defense program (or
contracts under such program) on the
small business concerns participating
in such program as a prime contractor,
subcontractor or supplier at any tier;
(ii) by developing, in conjunction with
appropriate Federal, State, and local
governmental entities and other private sector
organizations, the parameters of a transition
adjustment program adaptable to the needs of
individual small business concerns;
(iii) by conducting appropriate programs to
inform the affected small business community
regarding the anticipated adverse impacts
identified under clause (i) and the economic
adjustment assistance available to such firms;
and
(iv) by assisting small business concerns to
develop and implement an individualized
transition business plan.
(H) maintaining current information concerning
Federal, State, and local regulations that affect small
businesses and counsel small businesses on methods of
compliance. Counseling and technology development shall
be provided when necessary to help small businesses
find solutions for complying with environmental,
energy, health, safety, and other Federal, State, and
local regulations;
(I) coordinating and conducting research into
technical and general small business problems for which
there are no ready solutions;
(J) providing and maintaining a comprehensive library
that contains current information and statistical data
needed by small businesses;
(K) maintaining a working relationship and open
communications with the financial and investment
communities, legal associations, local and regional
private consultants, and local and regional small
business groups and associations in order to help
address the various needs of the small business
community;
(L) conducting in-depth surveys for local small
business groups in order to develop general information
regarding the local economy and general small
businesses strengths and weaknesses in the locality;
(M) in cooperation with the Department of Commerce,
the Administration and other relevant Federal agencies,
actively assisting rural small businesses in exporting
by identifying and developing potential export markets
for rural small businesses, facilitating export
transactions for rural small businesses, developing
linkages between United States' rural small businesses
and prescreened foreign buyers, assisting rural small
businesses to participate in international trade shows,
assisting rural small businesses in obtaining export
financing and developing marketing and production
strategies;
(N) assisting rural small businesses--
(i) in developing marketing and production
strategies that will enable them to better
compete in the domestic market--
(ii) by providing technical assistance needed
by rural small businesses;
(iii) by making available managerial
assistance to rural small business concerns;
and
(iv) by providing information and assistance
in obtaining financing for business startups
and expansion;
(O) in conjunction with the United States Travel and
Tourism Administration, assist rural small business in
developing the tourism potential of rural communities
by--
(i) identifying the cultural, historic,
recreational, and scenic resources of such
communities;
(ii) providing assistance to small businesses
in developing tourism marketing and promotion
plans relating to tourism in rural areas; and
(iii) assisting small business concerns to
obtain capital for starting or expanding
businesses primarily serving tourists;
(P) maintaining lists of local and regional private
consultants to whom small business can be referred;
(Q) providing information to small business concerns
regarding compliance with regulatory requirements;
(R) developing informational publications,
establishing resource centers of reference materials,
and distributing compliance guides published under
section 312(a) of the Small Business Regulatory
Enforcement Fairness Act of 1996;
(S) providing small business owners with access to a
wide variety of export-related information by
establishing on-line computer linkages between small
business development centers and an international trade
data information network with ties to the Export
Assistance Center program; and
(T) providing information and assistance to small
business concerns with respect to establishing drug-
free workplace programs on or before October 1, 2006.
(4) A small business development center shall continue to
upgrade and modify its services, as needed, in order to meet
the changing and evolving needs of the small business
community.
(5) In addition to the methods prescribed in section
21(c)(2), a small business development center shall utilize and
compensate as one of its resources qualified small business
vendors, including but not limited to, private management
consultants, private consulting engineers and private testing
laboratories, to provide services as described in this
subsection to small businesses on behalf of such small business
development center.
(6) In any State (A) in which the Administration has not made
a grant pursuant to paragraph (1) of subsection (a), or (B) in
which no application for a grant has been made by a Small
Business Development Center pursuant to paragraph (6) of such
subsection within 60 days after the effective date of any grant
under subsection (a)(1) to such center or the date the
Administration notifies the grantee funded under subsection
(a)(1) that funds are available for grant applications pursuant
to subsection (a)(6), whichever date occurs last, the
Administration may make grants to a non-profit entity in that
State to carry out the activities specified in paragraph (6) of
subsection (a). Any such applicants shall comply with the
matching funds requirement of paragraph (4) of subsection (a).
Such grants shall be effective for any fiscal year only to the
extent provided in advance in appropriations Acts, and each
State shall be limited to the pro rata share provisions of
paragraph (6) of subsection (a).
(7) In performing the services identified in
paragraph (3), the Small Business Development Centers
shall work in close cooperation with the
Administration's regional and local offices, the local
small business community, and appropriate State and
local agencies.
(8) The Associate Administrator for Small Business
Development Centers, in consultation with the Small
Business Development Centers, shall develop and
implement an information sharing system. Subject to
amounts approved in advance in appropriations Acts, the
Administration may make grants or enter cooperative
agreements with one or more centers to carry out the
provisions of this paragraph. Said grants or
cooperative agreements shall be awarded for periods of
no more than five years duration. The matching funds
provisions of subsection (a) shall not be applicable to
grants or cooperative agreements under this paragraph.
The system shall--
(A) allow Small Business Development Centers
participating in the program to exchange
information about their programs; and
(B) provide information central to technology
transfer.
(d) Where appropriate, the Small Business Development Centers
shall work in conjunction with the relevant State agency and
the Department of Commerce to develop a comprehensive plan for
enhancing the export potential of small businesses located
within the State. This plan may involve the cofunding and
staffing of a State Office of International Trade within the
State Small Business Development Center, using joint State and
Federal funding, and any other appropriate measures directed at
improving the export performance of small businesses within the
State.
(e) Laboratories operated and funded by the Federal
Government are authorized and directed to cooperate with the
Administration in developing and establishing programs to
support small business development centers by making facilities
and equipment available; providing experiment station
capabilities in adaptive engineering; providing library and
technical information processing capabilities; and providing
professional staff for consulting. The Administration is
authorized to reimburse the laboratories for such services.
(f) The National Science Foundation is authorized and
directed to cooperate with the Administration and with the
Small Business Development Centers in developing and
establishing programs to support the centers.
(g) National Aeronautics and Space Administration and
Regional Technology Transfer Centers.--The National Aeronautics
and Space Administration and regional technology transfer
centers supported by the National Aeronautics and Space
Administration are authorized and directed to cooperate with
small business development centers participating in the
program.
(h) Associate Administrator for Small Business Development
Centers.--
(1) Appointment and compensation.--The Administrator
shall appoint an Associate Administrator for Small
Business Development Centers who shall report to an
official who is not more than one level below the
Office of the Administrator and who shall serve without
regard to the provisions of title 5, governing
appointments in the competitive service, and without
regard to chapter 51, and subchapter III of chapter 53
of such title relating to classification and General
Schedule pay rates, but at a rate not less than the
rate of GS-17 of the General Schedule.
(2) Duties.--
(A) In general.--The sole responsibility of
the Associate Administrator for Small Business
Development Centers shall be to administer the
small business development center program.
Duties of the position shall include
recommending the annual program budget,
reviewing the annual budgets submitted by each
applicant, establishing appropriate funding
levels therefore, selecting applicants to
participate in this program, implementing the
provisions of this section, maintaining a
clearinghouse to provide for the dissemination
and exchange of information between small
business development centers and conducting
audits of recipients of grants under this
section.
(B) Consultation requirements.--In carrying
out the duties described in this subsection,
the Associate Administrator shall confer with
and seek the advice of the Board established by
subsection (i) and Administration officials in
areas served by the small business development
centers; however, the Associate Administrator
shall be responsible for the management and
administration of the program and shall not be
subject to the approval or concurrence of such
Administration officials.
(i)(1) There is established a National Small Business
Development Center Advisory Board (herein referred to as
``Board'') which shall consist of nine members appointed from
civilian life by the Administrator and who shall be persons of
outstanding qualifications known to be familiar and sympathetic
with small business needs and problems. No more than three
members shall be from universities or their affiliates and six
shall be from small businesses or associations representing
small businesses. At the time of the appointment of the Board,
the Administrator shall designate one-third of the members and
at least one from each category whose term shall end in two
years from the date of appointment, a second third whose term
shall end in three years from the date of appointment, and the
final third whose term shall end in four years from the date of
appointment. Succeeding Boards shall have three-year terms,
with one-third of the Board changing each year.
(2) The Board shall elect a Chairman and advise, counsel, and
confer with the Associate Administrator for Small Business
Development Centers in carrying out the duties described in
this section. The Board shall meet at least semiannually and at
the call of the Chairman of the Board. Each member of the Board
shall be entitled to be compensated at the rate not in excess
of the per diem equivalent of the highest rate of pay for
individuals occupying the position under GS-18 of the General
Schedule for each day engaged in activities of the Board and
shall be entitled to be reimbursed for expenses as a member of
the Board.
(j)(1) Each small business development center shall establish
an advisory board.
(2) Each small business development center advisory board
shall elect a chairman and advise, counsel, and confer with the
director of the small business development center on all policy
matters pertaining to the operation of the small business
development center, including who may be eligible to receive
assistance from, and how local and regional private consultants
may participate with the small business development center.
(k) Program Examination and Accreditation.--
(1) Examination.--Not later than 180 days after the
date of enactment of this subsection, the
Administration shall develop and implement a biennial
programmatic and financial examination of each small
business development center established pursuant to
this section.
(2) Accreditation.--The Administration may provide
financial support, by contract or otherwise, to the
association authorized by subsection (a)(3)(A) for the
purpose of developing a small business development
center accreditation program.
(3) Extension or renewal of cooperative agreements.--
(A) In general.--In extending or renewing a
cooperative agreement of a small business
development center, the Administration shall
consider the results of the examination and
accreditation program conducted pursuant to
paragraphs (1) and (2).
(B) Accreditation requirement.--After
September 30, 2000, the Administration may not
renew or extend any cooperative agreement with
a small business development center unless the
center has been approved under the
accreditation program conducted pursuant to
this subsection, except that the Associate
Administrator for Small Business Development
Centers may waive such accreditation
requirement, in the discretion of the Associate
Administrator, upon a showing that the center
is making a good faith effort to obtain
accreditation.
(l) Contract Authority.--The authority to enter into
contracts shall be in effect for each fiscal year only to the
extent and in the amounts as are provided in advance in
appropriations Acts. After the administration has entered a
contract, either as a grant or a cooperative agreement, with
any applicant under this section, it shall not suspend,
terminate, or fail to renew or extend any such contract unless
the Administration provides the applicant with written
notification setting forth the reasons therefore and affording
the applicant an opportunity for a hearing, appeal, or other
administrative proceeding under the provisions of chapter 5 of
title 5, United States Code. If any contract or cooperative
agreement under this section with an entity that is covered by
this section is not renewed or extended, any award of a
successor contract or cooperative agreement under this section
to another entity shall be made on a competitive basis.
(m) Prohibition on Certain Fees.--A small business
development center shall not impose or otherwise collect a fee
or other compensation in connection with the provision of
counseling services under this section.
(n) Veterans Assistance and Services Program.--
(1) In general.--A small business development center
may apply for a grant under this subsection to carry
out a veterans assistance and services program.
(2) Elements of program.--Under a program carried out
with a grant under this subsection, a small business
development center shall--
(A) create a marketing campaign to promote
awareness and education of the services of the
center that are available to veterans, and to
target the campaign toward veterans, service-
disabled veterans, military units, Federal
agencies, and veterans organizations;
(B) use technology-assisted online counseling
and distance learning technology to overcome
the impediments to entrepreneurship faced by
veterans and members of the Armed Forces; and
(C) increase coordination among organizations
that assist veterans, including by establishing
virtual integration of service providers and
offerings for a one-stop point of contact for
veterans who are entrepreneurs or owners of
small business concerns.
(3) Amount of grants.--A grant under this subsection
shall be for not less than $75,000 and not more than
$250,000.
(4) Funding.--Subject to amounts approved in advance
in appropriations Acts, the Administration may make
grants or enter into cooperative agreements to carry
out the provisions of this subsection.
(o) No Prohibition of Marketing of Services.--The
Administrator shall not prohibit applicants receiving grants
under this section from marketing and advertising their
services to individuals and small business concerns.
(p) Annual Report on Data Collection.--The Administrator
shall report annually to the Committee on Small Business of the
House of Representatives and the Committee on Small Business
and Entrepreneurship of the Senate on any data collection
activities related to the Small Business Development Center
program.
(q) Limitation on Award of Grants.--Except for not-for-profit
institutions of higher education, and notwithstanding any other
provision of law, the Administrator may not award grants
(including contracts and cooperative agreements) under this
section to any entity other than those that received grants
(including contracts and cooperative agreements) under this
section prior to the date of the enactment of this subsection,
and that seek to renew such grants (including contracts and
cooperative agreements) after such date.
SEC. 22. OFFICE OF INTERNATIONAL TRADE.
(a) Establishment.--
(1) Office.--There is established within the
Administration an Office of International Trade which
shall implement the programs pursuant to this section
for the primary purposes of increasing--
(A) the number of small business concerns
that export; and
(B) the volume of exports by small business
concerns.
(2) Associate administrator.--The head of the Office
shall be the Associate Administrator for International
Trade, who shall be responsible to the Administrator.
(b) Trade Distribution Network.--The Associate Administrator,
working in close cooperation with the Secretary of Commerce,
the United States Trade Representative, the Secretary of
Agriculture, the Secretary of State, the President of the
Export-Import Bank of the United States, the President of the
Overseas Private Investment Corporation, Director of the United
States Trade and Development Agency, and other relevant Federal
agencies, small business development centers engaged in export
promotion efforts, Export Assistance Centers, regional and
district offices of the Administration, the small business
community, and relevant State and local export promotion
programs, shall--
(1) maintain a distribution network, using regional
and district offices of the Administration, the small
business development center network, networks of
women's business centers, the [Service Corps of Retired
Executives] SCORE program authorized by section
8(b)(1), and Export Assistance Centers, for programs
relating to--
(A) trade promotion;
(B) trade finance;
(C) trade adjustment assistance;
(D) trade remedy assistance; and
(E) trade data collection;
(2) aggressively market the programs described in
paragraph (1) and disseminate information, including
computerized marketing data, to small business concerns
on exporting trends, market-specific growth, industry
trends, and international prospects for exports;
(3) promote export assistance programs through the
district and regional offices of the Administration,
the small business development center network, Export
Assistance Centers, the network of women's business
centers, chapters of the [Service Corps of Retired
Executives] SCORE program, State and local export
promotion programs, and partners in the private sector;
and
(4) give preference in hiring or approving the
transfer of any employee into the Office or to a
position described in subsection (c)(9) to otherwise
qualified applicants who are fluent in a language in
addition to English, to--
(A) accompany small business concerns on
foreign trade missions; and
(B) translate documents, interpret
conversations, and facilitate multilingual
transactions, including by providing referral
lists for translation services, if required.
(c) Promotion of Sales Opportunities.--The Associate
Administrator shall promote sales opportunities for small
business goods and services abroad. To accomplish this
objective the office shall--
(1) establish annual goals for the Office relating
to--
(A) enhancing the exporting capability of
small business concerns and small
manufacturers;
(B) facilitating technology transfers;
(C) enhancing programs and services to assist
small business concerns and small manufacturers
to compete effectively and efficiently in
foreign markets;
(D) increasing the ability of small business
concerns to access capital; and
(E) disseminating information concerning
Federal, State, and private programs and
initiatives;
(2) in cooperation with the Department of Commerce,
other relevant agencies, regional and local
Administration offices, the Small Business Development
Center network, and State programs, develop a mechanism
for--
(A) identifying subsectors of the small
business community with strong export
potential;
(B) identifying areas of demand in foreign
markets;
(C) prescreening foreign buyers for
commercial and credit purposes; and
(D) assisting in increasing international
marketing by disseminating relevant information
regarding market leads, linking potential
sellers and buyers, and catalyzing the
formation of joint ventures, where appropriate;
(3) in cooperation with the Department of Commerce,
actively assist small business concerns in forming and
using export trading companies, export management
companies and research and development pools authorized
under section 9 of this Act;
(4) work in conjunction with other Federal agencies,
regional and district offices of the Administration,
the small business development center network, and the
private sector to identify and publicize translation
services, including those available through colleges
and universities participating in the small business
development center program;
(5) work closely with the Department of Commerce and
other relevant Federal agencies to--
(A) collect, analyze and periodically update
relevant data regarding the small business
share of United States exports and the nature
of State exports (including the production of
Gross State Product figures) and disseminate
that data to the public and to Congress;
(B) make recommendations to the Secretary of
Commerce and to Congress regarding revision of
the North American Industry Classification
System codes to encompass industries currently
overlooked and to create North American
Industry Classification System codes for export
trading companies and export management
companies;
(C) improve the utility and accessibility of
existing export promotion programs for small
business concerns; and
(D) increase the accessibility of the Export
Trading Company contact facilitation service;
(6) make available to the small business community
information regarding conferences on exporting and
international trade sponsored by the public and private
sector;
(7) provide small business concerns with access to up
to date and complete export information by--
(A) making available, at the regional and
district offices of the Administration through
cooperation with the Department of Commerce,
export information, including, but not limited
to, the worldwide information and trade system
and world trade data reports;
(B) maintaining a list of financial
institutions that finance export operations;
(C) maintaining a directory of all Federal,
regional, State and private sector programs
that provide export information and assistance
to small business concerns; and
(D) preparing and publishing such reports as
it determines to be necessary concerning market
conditions, sources of financing, export
promotion programs, and other information
pertaining to the needs of small business
export firms so as to insure that the maximum
information is made available to small business
concerns in a readily usable form;
(8) encourage through cooperation with the Department
of Commerce, greater small business participation in
trade fairs, shows, missions, and other domestic and
overseas export development activities of the
Department of Commerce;
(9) facilitate decentralized delivery of export
information and assistance to small business concerns
by assigning primary responsibility for export
development to one individual in each district office
and providing each Administration regional office with
a full-time export development specialist, who shall--
(A) assist small business concerns in
obtaining export information and assistance
from other Federal departments and agencies;
(B) maintain a directory of all programs
which provide export information and assistance
to small business concerns in the region;
(C) encourage financial institutions to
develop and expand programs for export
financing;
(D) provide advice to personnel of the
Administration involved in making loans, loan
guarantees, and extensions and revolving lines
of credit, and providing other forms of
assistance to small business concerns engaged
in exports;
(E) within one hundred and eighty days of
their appointment, participate in training
programs designed by the Administrator, in
conjunction with the Department of Commerce and
other Federal departments and agencies, to
study export programs and to examine the needs
of small business concerns for export
information and assistance;
(F) participate, jointly with employees of
the Office, in an annual training program that
focuses on current small business needs for
exporting; and
(G) develop and conduct training programs for
exporters and lenders, in cooperation with the
Export Assistance Centers, the Department of
Commerce, the Department of Agriculture, small
business development centers, women's business
centers, the Export-Import Bank of the United
States, the Overseas Private Investment
Corporation, and other relevant Federal
agencies;
(10) make available on the website of the
Administration the name and contact information of each
individual described in paragraph (9);
(11) carry out a nationwide marketing effort using
technology, online resources, training, and other
strategies to promote exporting as a business
development opportunity for small business concerns;
(12) disseminate information to the small business
community through regional and district offices of the
Administration, the small business development center
network, Export Assistance Centers, the network of
women's business centers, chapters of the [Service
Corps of Retired Executives] SCORE program authorized
by section 8(b)(1), State and local export promotion
programs, and partners in the private sector regarding
exporting trends, market-specific growth, industry
trends, and prospects for exporting; and
(13) establish and carry out training programs for
the staff of the regional and district offices of the
Administration and resource partners of the
Administration on export promotion and providing
assistance relating to exports.
(d) Export Financing Programs.--
(1) In general.--The Associate Administrator shall
work in cooperation with the Export-Import Bank of the
United States, the Department of Commerce, other
relevant Federal agencies, and the States to develop a
program through which export specialists in the
regional offices of the Administration, regional and
local loan officers, and Small Business Development
Center personnel can facilitate the access of small
businesses to relevant export financing programs of the
Export-Import Bank of the United States and to export
and pre-export financing programs available from the
Administration and the private sector.
(2) Trade finance specialist.--To accomplish the goal
established under paragraph (1), the Associate
Administrator shall--
(A) designate at least 1 individual within
the Administration as a trade finance
specialist to oversee international loan
programs and assist Administration employees
with trade finance issues; and
(B) work in cooperation with the Export-
Import Bank and the small business community,
including small business trade associations,
to--
(i) aggressively market existing
Administration export financing and
pre-export financing programs;
(ii) identify financing available
under various Export-Import Bank
programs, and aggressively market those
programs to small businesses;
(iii) assist in the development of
financial intermediaries and facilitate
the access of those intermediaries to
existing financing programs;
(iv) promote greater participation by
private financial institutions,
particularly those institutions already
participating in loan programs under
this Act, in export finance; and
(v) provide for the participation of
appropriate Administration personnel in
training programs conducted by the
Export-Import Bank.
(e) Trade Remedies.--The Associate Administrator shall--
(1) work in cooperation with other Federal agencies
and the private sector to counsel small businesses with
respect to initiating and participating in any
proceedings relating to the administration of the
United States trade laws; and
(2) work with the Department of Commerce, the Office
of the United States Trade Representative, and the
International Trade Commission to increase access to
trade remedy proceedings for small businesses.
(f) Reporting Requirement.--The Associate Administrator shall
submit an annual report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives that contains--
(1) a description of the progress of the Office in
implementing the requirements of this section;
(2) a detailed account of the results of export
growth activities of the Administration, including the
activities of each district and regional office of the
Administration, based on the performance measures
described in subsection (i);
(3) an estimate of the total number of jobs created
or retained as a result of export assistance provided
by the Administration and resource partners of the
Administration;
(4) for any travel by the staff of the Office, the
destination of such travel and the benefits to the
Administration and to small business concerns resulting
from such travel; and
(5) a description of the participation by the Office
in trade negotiations.
(g) Studies.--The Associate Administrator, in cooperation,
where appropriate, with the Division of Economic Research of
the Office of Advocacy, and with other Federal agencies, shall
undertake studies regarding the following issues and shall
report to the Committees on Small Business of the House of
Representatives and the Senate, and to other relevant
Committees of the House and Senate within 6 months after the
date of enactment of the Small Business International Trade and
Competitiveness Act with specific recommendations on--
(1) the viability and cost of establishing an annual,
competitive small business export incentive program
similar to the Small Business Innovation Research
program and alternative methods of structuring such a
program;
(2) methods of streamlining trade remedy proceedings
to increase access for, and reduce expenses incurred
by, smaller firms;
(3) methods of improving the current small business
foreign sales corporation tax incentives and providing
small businesses with greater benefits from this
initiative;
(4) methods of identifying potential export markets
for United States small businesses; maintaining and
disseminating current foreign market data; and devising
a comprehensive export marketing strategy for United
States small business goods and services, and shall
include data on the volume and dollar amount of goods
and services, identified by type, imported by United
States trading partners over the past 10 years; and
(5) the results of a survey of major United States
trading partners to identify the domestic policies,
programs and incentives, and the private sector
initiatives, which exist to encourage the formation and
growth of small business.
(h) Discharge of International Trade Responsibilities of
Administration.--The Administrator shall ensure that--
(1) the responsibilities of the Administration
regarding international trade are carried out by the
Associate Administrator;
(2) the Associate Administrator has sufficient
resources to carry out such responsibilities; and
(3) the Associate Administrator has direct
supervision and control over--
(A) the staff of the Office; and
(B) any employee of the Administration whose
principal duty station is an Export Assistance
Center, or any successor entity.
(i) Export and Trade Counseling.--
(1) Definition.--In this subsection--
(A) the term ``lead small business
development center'' means a small business
development center that has received a grant
from the Administration; and
(B) the term ``lead women's business center''
means a women's business center that has
received a grant from the Administration.
(2) Certification program.--The Administrator shall
establish an export and trade counseling certification
program to certify employees of lead small business
development centers and lead women's business centers
in providing export assistance to small business
concerns.
(3) Number of certified employees.--The Administrator
shall ensure that the number of employees of each lead
small business development center who are certified in
providing export assistance is not less than the lesser
of--
(A) 5; or
(B) 10 percent of the total number of
employees of the lead small business
development center.
(4) Reimbursement for certification.--
(A) In general.--Subject to the availability
of appropriations, the Administrator shall
reimburse a lead small business development
center or a lead women's business center for
costs relating to the certification of an
employee of the lead small business center or
lead women's business center in providing
export assistance under the program established
under paragraph (2).
(B) Limitation.--The total amount reimbursed
by the Administrator under subparagraph (A) may
not exceed $350,000 in any fiscal year.
(j) Performance Measures.--
(1) In general.--The Associate Administrator shall
develop performance measures for the Administration to
support export growth goals for the activities of the
Office under this section that include--
(A) the number of small business concerns
that--
(i) receive assistance from the
Administration;
(ii) had not exported goods or
services before receiving the
assistance described in clause (i); and
(iii) export goods or services;
(B) the number of small business concerns
receiving assistance from the Administration
that export goods or services to a market
outside the United States into which the small
business concern did not export before
receiving the assistance;
(C) export revenues by small business
concerns assisted by programs of the
Administration;
(D) the number of small business concerns
referred to an Export Assistance Center or a
small business development center by the staff
of the Office;
(E) the number of small business concerns
referred to the Administration by an Export
Assistance Center or a small business
development center; and
(F) the number of small business concerns
referred to the Department of Commerce, the
Department of Agriculture, the Department of
State, the Export-Import Bank of the United
States, the Overseas Private Investment
Corporation, or the United States Trade and
Development Agency by the staff of the Office,
an Export Assistance Center, or a small
business development center.
(2) Joint performance measures.--The Associate
Administrator shall develop joint performance measures
for the district offices of the Administration and the
Export Assistance Centers that include the number of
export loans made under--
(A) section 7(a)(16);
(B) the Export Working Capital Program
established under section 7(a)(14);
(C) the Preferred Lenders Program, as defined
in section 7(a)(2)(C)(ii); and
(D) the export express program established
under section 7(a)(34).
(3) Consistency of tracking.--The Associate
Administrator, in coordination with the departments and
agencies that are represented on the Trade Promotion
Coordinating Committee established under section 2312
of the Export Enhancement Act of 1988 (15 U.S.C. 4727)
and the small business development center network,
shall develop a system to track exports by small
business concerns, including information relating to
the performance measures developed under paragraph (1),
that is consistent with systems used by the departments
and agencies and the network.
(k) Export Assistance Centers.--
(1) Export finance specialists.--
(A) Minimum number of export finance
specialists.--On and after the date that is 90
days after the date of enactment of this
subsection, the Administrator, in coordination
with the Secretary of Commerce, shall ensure
that the number of export finance specialists
is not less than the number of such employees
so assigned on January 1, 2003.
(B) Export finance specialists assigned to
each region of the administration.--On and
after the date that is 2 years after the date
of enactment of this subsection, the
Administrator, in coordination with the
Secretary of Commerce, shall ensure that there
are not fewer than 3 export finance specialists
in each region of the Administration.
(2) Placement of export finance specialists.--
(A) Priority.--The Administrator shall give
priority, to the maximum extent practicable, to
placing employees of the Administration at any
Export Assistance Center that--
(i) had an Administration employee
assigned to the Export Assistance
Center before January 2003; and
(ii) has not had an Administration
employee assigned to the Export
Assistance Center during the period
beginning January 2003, and ending on
the date of enactment of this
subsection, either through retirement
or reassignment.
(B) Needs of exporters.--The Administrator
shall, to the maximum extent practicable,
strategically assign Administration employees
to Export Assistance Centers, based on the
needs of exporters.
(C) Rule of construction.--Nothing in this
subsection may be construed to require the
Administrator to reassign or remove an export
finance specialist who is assigned to an Export
Assistance Center on the date of enactment of
this subsection.
(3) Goals.--The Associate Administrator shall work
with the Department of Commerce, the Export-Import Bank
of the United States, and the Overseas Private
Investment Corporation to establish shared annual goals
for the Export Assistance Centers.
(4) Oversight.--The Associate Administrator shall
designate an individual within the Administration to
oversee all activities conducted by Administration
employees assigned to Export Assistance Centers.
(l) State Trade Expansion Program.--
(1) Definitions.--In this subsection--
(A) the term ``eligible small business
concern'' means a business concern that--
(i) is organized or incorporated in
the United States;
(ii) is operating in the United
States;
(iii) meets--
(I) the applicable industry-
based small business size
standard established under
section 3; or
(II) the alternate size
standard applicable to the
program under section 7(a) of
this Act and the loan programs
under title V of the Small
Business Investment Act of 1958
(15 U.S.C. 695 et seq.);
(iv) has been in business for not
less than 1 year, as of the date on
which assistance using a grant under
this subsection commences; and
(v) has access to sufficient
resources to bear the costs associated
with trade, including the costs of
packing, shipping, freight forwarding,
and customs brokers;
(B) the term ``program'' means the State
Trade Expansion Program established under
paragraph (2);
(C) the term ``rural small business concern''
means an eligible small business concern
located in a rural area, as that term is
defined in section 1393(a)(2) of the Internal
Revenue Code of 1986;
(D) the term ``socially and economically
disadvantaged small business concern'' has the
meaning given that term in section 8(a)(4)(A)
of the Small Business Act (15 U.S.C.
637(a)(4)(A)); and
(E) the term ``State'' means each of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin
Islands, Guam, the Commonwealth of the Northern
Mariana Islands, and American Samoa.
(2) Establishment of program.--The Associate
Administrator shall establish a trade expansion
program, to be known as the ``State Trade Expansion
Program'', to make grants to States to carry out
programs that assist eligible small business concerns
in--
(A) participation in foreign trade missions;
(B) a subscription to services provided by
the Department of Commerce;
(C) the payment of website fees;
(D) the design of marketing media;
(E) a trade show exhibition;
(F) participation in training workshops;
(G) a reverse trade mission;
(H) procurement of consultancy services
(after consultation with the Department of
Commerce to avoid duplication); or
(I) any other initiative determined
appropriate by the Associate Administrator.
(3) Grants.--
(A) Joint review.--In carrying out the
program, the Associate Administrator may make a
grant to a State to increase the number of
eligible small business concerns in the State
exploring significant new trade opportunities.
(B) Considerations.--In making grants under
this subsection, the Associate Administrator
may give priority to an application by a State
that proposes a program that--
(i) focuses on eligible small
business concerns as part of a trade
expansion program;
(ii) demonstrates intent to promote
trade expansion by--
(I) socially and economically
disadvantaged small business
concerns;
(II) small business concerns
owned or controlled by women;
and
(III) rural small business
concerns;
(iii) promotes trade facilitation
from a State that is not 1 of the 10
States with the highest percentage of
eligible small business concerns that
are engaged in international trade,
based upon the most recent data from
the Department of Commerce; and
(iv) includes--
(I) activities which have
resulted in the highest return
on investment based on the most
recent year; and
(II) the adoption of shared
best practices included in the
annual report of the
Administration.
(C) Limitations.--
(i) Single application.--A State may
not submit more than 1 application for
a grant under the program in any 1
fiscal year.
(ii) Proportion of amounts.--The
total value of grants made under the
program during a fiscal year to the 10
States with the highest percentage of
eligible small business concerns, based
upon the most recent data available
from the Department of Commerce, shall
be not more than 40 percent of the
amounts appropriated for the program
for that fiscal year.
(iii) Duration.--The Associate
Administrator shall award a grant under
this program for a period of not more
than 2 years.
(D) Application.--
(i) In general.--A State desiring a
grant under the program shall submit an
application at such time, in such
manner, and accompanied by such
information as the Associate
Administrator may establish.
(ii) Consultation to reduce
duplication.--A State desiring a grant
under the program shall--
(I) before submitting an
application under clause (i),
consult with applicable trade
agencies of the Federal
Government on the scope and
mission of the activities the
State proposes to carry out
using the grant, to ensure
proper coordination and reduce
duplication in services; and
(II) document the
consultation conducted under
subclause (I) in the
application submitted under
clause (i).
(4) Competitive basis.--The Associate Administrator
shall award grants under the program on a competitive
basis.
(5) Federal share.--The Federal share of the cost of
a trade expansion program carried out using a grant
under the program shall be--
(A) for a State that has a high trade volume,
as determined by the Associate Administrator,
not more than 65 percent; and
(B) for a State that does not have a high
trade volume, as determined by the Associate
Administrator, not more than 75 percent.
(6) Non-federal share.--The non-Federal share of the
cost of a trade expansion program carried out using a
grant under the program shall be comprised of not less
than 50 percent cash and not more than 50 percent of
indirect costs and in-kind contributions, except that
no such costs or contributions may be derived from
funds from any other Federal program.
(7) Reports.--
(A) Initial report.--Not later than 120 days
after the date of enactment of this subsection,
the Associate Administrator shall submit to the
Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives a report, which shall include--
(i) a description of the structure of
and procedures for the program;
(ii) a management plan for the
program; and
(iii) a description of the merit-
based review process to be used in the
program.
(B) Annual reports.--
(i) In general.--The Associate
Administrator shall publish on the
website of the Administration an annual
report regarding the program, which
shall include--
(I) the number and amount of
grants made under the program
during the preceding year;
(II) a list of the States
receiving a grant under the
program during the preceding
year, including the activities
being performed with each
grant;
(III) the effect of each
grant on the eligible small
business concerns in the State
receiving the grant;
(IV) the total return on
investment for each State; and
(V) a description of best
practices by States that showed
high returns on investment and
significant progress in helping
more eligible small business
concerns.
(ii) Notice to congress.--On the date
on which the Associate Administrator
publishes a report under clause (i),
the Associate Administrator shall
notify the Committee on Small Business
and Entrepreneurship of the Senate and
the Committee on Small Business of the
House of Representatives that the
report has been published.
(8) Reviews by inspector general.--
(A) In general.--The Inspector General of the
Administration shall conduct a review of--
(i) the extent to which recipients of
grants under the program are measuring
the performance of the activities being
conducted and the results of the
measurements; and
(ii) the overall management and
effectiveness of the program.
(B) Reports.--
(i) Pilot program.--Not later than 6
months after the date of enactment of
this subsection, the Inspector General
of the Administration shall submit to
the Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the
House of Representatives a report
regarding the use of amounts made
available under the State Trade and
Export Promotion Grant Program under
section 1207 of the Small Business Jobs
Act of 2010 (15 U.S.C. 649b note).
(ii) New step program.--Not later
than 18 months after the date on which
the first grant is awarded under this
subsection, the Inspector General of
the Administration shall submit to the
Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the
House of Representatives a report
regarding the review conducted under
subparagraph (A).
(9) Authorization of appropriations.--There is
authorized to be appropriated to carry out the program
$30,000,000 for each of fiscal years 2016 through 2020.
(m) Definitions.--In this section--
(1) the term ``Associate Administrator'' means the
Associate Administrator for International Trade
described in subsection (a)(2);
(2) the term ``Export Assistance Center'' means a
one-stop shop for United States exporters established
by the United States and Foreign Commercial Service of
the Department of Commerce pursuant to section
2301(b)(8) of the Omnibus Trade and Competitiveness Act
of 1988 (15 U.S.C. 4721(b)(8));
(3) the term ``export finance specialist'' means a
full-time equivalent employee of the Office assigned to
an Export Assistance Center to carry out the duties
described in subsection (e); and
(4) the term ``Office'' means the Office of
International Trade established under subsection
(a)(1).
* * * * * * *
SEC. 29. WOMEN'S BUSINESS CENTER PROGRAM.
(a) Definitions.--In this section--
(1) the term ``Assistant Administrator'' means the
Assistant Administrator of the Office of Women's
Business Ownership established under subsection (g);
(2) the term ``eligible entity'' means--
(A) an organization described in section
501(c) of the Internal Revenue Code of 1986 and
exempt from taxation under section 501(a) of
such Code;
(B) a State, regional, or local economic
development organization, so long as the
organization certifies that grant funds
received under this section will not be co-
mingled with other funds;
(C) an institution of higher education,
unless such institution is currently receiving
a grant under section 21;
(D) a development, credit, or finance
corporation chartered by a State, so long as
the corporation certifies that grant funds
received under this section will not be co-
mingled with other funds; or
(E) any combination of entities listed in
subparagraphs (A) through (D);
[(2)] (3) the term ``private nonprofit organization''
means an entity that is described in section 501(c) of
the Internal Revenue Code of 1986 and exempt from
taxation under section 501(a) of such Code;
[(3)] (4) the term ``small business concern owned and
controlled by women'', either startup or existing,
includes any small business concern--
(A) that is not less than 51 percent owned by
1 or more women; and
(B) the management and daily business
operations of which are controlled by 1 or more
women; and
[(4) the term ``women's business center site'' means
the location of--
[(A) a women's business center; or
[(B) 1 or more women's business centers,
established in conjunction with another women's
business center in another location within a
State or region--
[(i) that reach a distinct population
that would otherwise not be served;
[(ii) whose services are targeted to
women; and
[(iii) whose scope, function, and
activities are similar to those of the
primary women's business center or
centers in conjunction with which it
was established.]
(5) the term ``women's business center'' means the
location at which counseling and training on the
management, operations (including manufacturing,
services, and retail), access to capital, international
trade, Government procurement opportunities, and any
other matter is needed to start, maintain, or expand a
small business concern owned and controlled by women.
(b) Authority.--[The Administration may provide financial
assistance to private nonprofit organizations to conduct 5-year
projects]
(1) In general._There is established a Women's
Business Center Program under which the Administrator
may provide a grant to any eligible entity to operate
one or more women's business centers for the benefit of
small business concerns owned and controlled by women.
[The projects shall]
(2) Use of funds._The women's business centers shall
be designed to provide counseling and training that
meets the needs of women, especially socially or
economically disadvantaged women, and shall provide--
[(1)] (A) financial assistance, including
training and counseling in how to apply for and
secure business credit and investment capital,
preparing and presenting financial statements,
and managing cash flow and other financial
operations of a business concern;
[(2)] (B) management assistance, including
training and counseling in how to plan,
organize, staff, direct, and control each major
activity and function of a small business
concern; and
[(3)] (C) marketing assistance, including
training and counseling in identifying and
segmenting domestic and international market
opportunities, preparing and executing
marketing plans, developing pricing strategies,
locating contract opportunities, negotiating
contracts, and utilizing varying public
relations and advertising techniques.
(3) Amount of grants.--
(A) In general.--The amount of a grant
provided under this subsection to an eligible
entity per project year shall be not more than
$185,000 (as such amount is annually adjusted
by the Administrator to reflect the change in
inflation).
(B) Additional grants.--
(i) In general.--Notwithstanding
subparagraph (A), with respect to an
eligible entity that has received
$185,000 in grants under this
subsection in a project year, the
Administrator may award an additional
grant under this subsection of up to
$65,000 during such project year if the
Administrator determines that the
eligible entity--
(I) agrees to obtain, after
its application has been
approved and notice of award
has been issued, cash
contributions from non-Federal
sources of 1 non-Federal dollar
for each Federal dollar;
(II) is in good standing with
the Women's Business Center
Program; and
(III) has met performance
goals for the previous project
year, if applicable.
(ii) Limitations.--The Administrator
may only award additional grants under
clause (i)--
(I) during the 3rd and 4th
quarters of the fiscal year;
and
(II) from unobligated amounts
made available to the
Administrator to carry out this
section.
(4) Notice and comment required.--The Administrator
may only make a change to the standards by which an
eligible entity obtains or maintains grants under this
section, the standards for accreditation, or any other
requirement for the operation of a women's business
center if the Administrator first provides notice and
the opportunity for public comment, as set forth in
section 553(b) of title 5, United States Code, without
regard to any exceptions provided for under such
section.
(c) Conditions of Participation.--
(1) Non-federal contributions.--[As a condition]
Subject to paragraph (6), as a condition of receiving
[financial assistance] a grant authorized by this
section, [the recipient organization] an eligible
entity shall agree to obtain, after its application has
been approved and notice of award has been issued, cash
contributions from non-Federal sources as follows:
(A) in the first and second years, 1 non-
Federal dollar for each 2 Federal dollars; and
(B) in the third, fourth, and fifth years, 1
non-Federal dollar for each Federal dollar.
(2) Form of non-federal contributions.--Not more than
one-half of the non-Federal sector matching assistance
may be in the form of in-kind contributions that are
budget line items only, including office equipment and
office space.
(3) Form of federal contributions.--The [financial
assistance authorized pursuant to this section may be
made by grant, contract, or cooperative agreement and]
grants authorized pursuant to this section may contain
such provision, as necessary, to provide for payments
in lump sum or installments, and in advance or by way
of reimbursement. The Administration may disburse up to
25 percent of each year's Federal share awarded to [a
recipient organization] an eligible entity after notice
of the award has been issued and before the non-Federal
sector matching funds are obtained.
(4) Failure to obtain non-federal funding.--If any
[recipient of assistance] eligible entity fails to
obtain the required non-Federal contribution [during
any project, it shall not be eligible thereafter]
during any project for 2 consecutive years, the
eligible entity shall not be eligible at any time after
that 2-year period for advance disbursements pursuant
to paragraph (3) during the remainder of that project,
or for any other project for which it is or may be
funded by the Administration, and prior to approving
assistance to [such organization] the eligible entity
for any other projects, the Administration shall
specifically determine whether the Administration
believes that [the recipient] the eligible entity will
be able to obtain the requisite non-Federal funding and
enter a written finding setting forth the reasons for
making such determination.
(5) Separation of project and funds.--An eligible
entity shall--
(A) carry out a project under this section
separately from other projects, if any, of the
eligible entity; and
(B) separately maintain and account for any
grants under this section.
(6) Examination of eligible entities.--
(A) Required site visit.--Each applicant,
prior to receiving a grant under this section,
shall have a site visit by an employee of the
Administration, in order to ensure that the
applicant has sufficient resources to provide
the services for which the grant is being
provided.
(B) Annual review.--An employee of the
Administration shall--
(i) conduct an annual review of the
compliance of each eligible entity
receiving a grant under this section
with the grant agreement, including a
financial examination; and
(ii) provide such review to the
eligible entity as required under
subsection (l).
(7) Remediation of problems.--
(A) Plan of action.--If a review of an
eligible entity under paragraph (6)(B)
identifies any problems, the eligible entity
shall, within 45 calendar days of receiving
such review, provide the Assistant
Administrator with a plan of action, including
specific milestones, for correcting such
problems.
(B) Plan of action review by the assistant
administrator.--The Assistant Administrator
shall review each plan of action submitted
under subparagraph (A) within 30 calendar days
of receiving such plan and--
(i) if the Assistant Administrator
determines that such plan will bring
the eligible entity into compliance
with all the terms of the grant
agreement, approve such plan;
(ii) if the Assistant Administrator
determines that such plan is inadequate
to remedy the problems identified in
the annual review to which the plan of
action relates, the Assistant
Administrator shall set forth such
reasons in writing and provide such
determination to the eligible entity
within 15 calendar days of such
determination.
(C) Amendment to plan of action.--An eligible
entity receiving a determination under
subparagraph (B)(ii) shall have 30 calendar
days from the receipt of the determination to
amend the plan of action to satisfy the
problems identified by the Assistant
Administrator and resubmit such plan to the
Assistant Administrator.
(D) Amended plan review by the assistant
administrator.--Within 15 calendar days of the
receipt of an amended plan of action under
subparagraph (C), the Assistant Administrator
shall either approve or reject such plan and
provide such approval or rejection in writing
to the eligible entity.
(E) Appeal of assistant administrator
determination.--
(i) In general.--If the Assistant
Administrator rejects an amended plan
under subparagraph (D), the eligible
entity shall have the opportunity to
appeal such decision to the
Administrator, who may delegate such
appeal to an appropriate officer of the
Administration.
(ii) Opportunity for explanation.--
Any appeal described under clause (i)
shall provide an opportunity for the
eligible entity to provide, in writing,
an explanation of why the eligible
entity's plan remedies the problems
identified in the annual review.
(iii) Notice of determination.--The
determination of the appeal shall be
provided to the eligible entity, in
writing, within 15 calendar days from
the eligible entity's filing of the
appeal.
(iv) Effect of failure to act.--If
the Administrator fails to act on an
appeal made under this subparagraph
within the 15 calendar day period
specified under clause (iii), the
eligible entity's amended plan of
action submitted under subparagraph (C)
shall be deemed to be approved.
(8) Termination of grant.--
(A) In general.--The Administrator shall
issue regulations (after providing an
opportunity for notice and comment) to provide
that, if an eligible entity fails to comply
with a plan of action approved by the Assistant
Administrator under paragraph (7)(B)(i) or an
amended plan of action approved by the
Assistant Administrator under paragraph (7)(D)
or approved on appeal under paragraph (7)(E),
the Assistant Administrator shall terminate the
grant provided to the eligible entity under
this section.
(B) Appeal of termination.--An eligible
entity that has a grant terminated under
subparagraph (A) shall have the opportunity to
challenge the termination on the record and
after an opportunity for a hearing.
(C) Final agency action.--The determination
made pursuant to subparagraph (B) shall be
considered final agency action for the purposes
of chapter 7, title 5, United States Code.
(9) Waiver of non-federal share.--
(A) In general.--Upon request by an eligible
entity, and in accordance with this paragraph,
the Administrator may waive, in whole or in
part, the requirement to obtain non-Federal
funds under this subsection for counseling and
training activities of the eligible entity
carried out using a grant under this section
for a fiscal year. The Administrator may not
waive the requirement for an eligible entity to
obtain non-Federal funds under this paragraph
for more than a total of 2 consecutive fiscal
years.
(B) Considerations.--In determining whether
to waive the requirement to obtain non-Federal
funds under this paragraph, the Administrator
shall consider--
(i) the economic conditions affecting
the eligible entity;
(ii) the impact a waiver under this
paragraph would have on the credibility
of the Women's Business Center Program
under this section;
(iii) the demonstrated ability of the
eligible entity to raise non-Federal
funds; and
(iv) the performance of the eligible
entity.
(C) Limitation.--The Administrator may not
waive the requirement to obtain non-Federal
funds under this paragraph if granting the
waiver would undermine the credibility of the
Women's Business Center Program.
(10) Solicitation.--Notwithstanding any other
provision of law, eligible entity may--
(A) solicit cash and in-kind contributions
from private individuals and entities to be
used to carry out the activities of the
eligible entity under the project conducted
under this section; and
(B) use amounts made available by the
Administrator under this section for the cost
of such solicitation and management of the
contributions received.
(11) Excess non-federal dollars.--The amount of non-
Federal dollars obtained by an eligible entity that is
above the amount that is required to be obtained by the
eligible entity under this subsection shall not be
subject to the requirements of part 200 of title 2,
Code of Federal Regulations, or any successor thereto,
if such amount of non-Federal dollars--
(A) is not used as matching funds for
purposes of implementing the Women's Business
Center Program; and
(B) was not obtained using funds from the
Women's Business Center Program.
(d) Contract Authority.--A women's business center may enter
into a contract with a Federal department or agency to provide
specific assistance to women and other underserved small
business concerns. Performance of such contract should not
hinder the women's business centers in carrying out the terms
of the grant received by the women's business centers from the
Administration.
(e) Submission of 5-Year Plan.--Each [applicant organization]
eligible entity initially shall submit a 5-year plan to the
Administration on proposed fundraising and training activities,
and [a recipient organization] an eligible entity may receive
[financial assistance] grants under this program for a maximum
of 5 years per women's business center [site].
[(f) Criteria.--The Administration shall evaluate and rank
applicants in accordance with predetermined selection criteria
that shall be stated in terms of relative importance. Such
criteria and their relative importance shall be made publicly
available and stated in each solicitation for applications made
by the Administration. The criteria shall include--
[(1) the experience of the applicant in conducting
programs or ongoing efforts designed to impart or
upgrade the business skills of women business owners or
potential owners;
[(2) the present ability of the applicant to commence
a project within a minimum amount of time;
[(3) the ability of the applicant to provide training
and services to a representative number of women who
are both socially and economically disadvantaged; and
[(4) the location for the women's business center
site proposed by the applicant.]
(f) Applications and Criteria for Initial Grant.--
(1) Application.--Each eligible entity desiring a
grant under subsection (b) shall submit to the
Administrator an application that contains--
(A) a certification that the eligible
entity--
(i) has designated an executive
director or program manager, who may be
compensated using grant funds under
subsection (b) or other sources, to
manage the women's business center for
which a grant under subsection (b) is
sought;
(ii) meets the accounting and
reporting requirements established by
the Director of the Office of
Management and Budget;
(B) information demonstrating that the
eligible entity has the ability and resources
to meet the needs of the market to be served by
the women's business center, including the
ability to obtain the non-Federal contribution
required under subsection (c);
(C) information relating to the assistance to
be provided by the women's business center in
the area in which the women's business center
is located;
(D) information demonstrating the experience
and effectiveness of the eligible entity in--
(i) conducting the services described
under subsection (a)(5);
(ii) providing training and services
to a representative number of women who
are socially or economically
disadvantaged; and
(iii) working with resource partners
of the Administration and other
entities, such as universities; and
(E) a 5-year plan that describes the ability
of the eligible entity to provide the services
described under subsection (a)(3), including to
a representative number of women who are
socially or economically disadvantaged.
(2) Review and approval of applications for initial
grants.--
(A) Review and selection of eligible
entities.--
(i) In general.--The Administrator
shall review applications to determine
whether the applicant can meet
obligations to perform the activities
required by a grant under this section,
including--
(I) the experience of the
applicant in conducting
activities required by this
section;
(II) the amount of time
needed for the applicant to
commence operations should it
be awarded a grant;
(III) the capacity of the
applicant to meet the
accreditation standards
established by the
Administrator in a timely
manner;
(IV) the ability of the
applicant to sustain operations
for more than 5 years
(including its ability to
obtain sufficient non-Federal
funds for that period);
(V) the location of the
women's business center and its
proximity to other grant
recipients under this section;
and
(VI) the population density
of the area to be served by the
women's business center.
(ii) Selection criteria.--
(I) Rulemaking.--The
Administrator shall issue
regulations (after providing an
opportunity for notice and
comment) to specify the
criteria for review and
selection of applicants under
this subsection.
(II) Modifications prohibited
after announcement.--With
respect to a public
announcement of any opportunity
to be awarded a grant under
this section made by the
Administrator pursuant to
subsection (l)(1), the
Administrator may not modify
regulations issued pursuant to
subclause (I) with respect to
such opportunity unless
required to do so by an Act of
Congress or an order of a
Federal court.
(III) Rule of construction.--
Nothing in this clause may be
construed as prohibiting the
Administrator from modifying
the regulations issued pursuant
to subclause (I) (after
providing an opportunity for
notice and comment) as such
regulations apply to an
opportunity to be awarded a
grant under this section that
the Administrator has not yet
publicly announced pursuant to
subsection (l)(1).
(B) Record retention.--
(i) In general.--The Administrator
shall maintain a copy of each
application submitted under this
subsection for not less than 5 years.
(ii) Paperwork reduction.--The
Administrator shall take steps to
reduce, to the maximum extent
practicable, the paperwork burden
associated with carrying out clause
(i).
(g) Office of Women's Business Ownership.--
(1) Establishment.--There is established within the
Administration an Office of Women's Business Ownership,
which shall be responsible for the administration of
the Administration's programs for the development of
women's business enterprises (as defined in section 408
of the Women's Business Ownership Act of 1988 (15
U.S.C. 631 note)). The Office of Women's Business
Ownership shall be administered by an Assistant
Administrator, who shall be appointed by the
Administrator.
(2) Assistant administrator of the office of women's
business ownership.--
(A) Qualification.--The position of Assistant
Administrator shall be a Senior Executive
Service position under section 3132(a)(2) of
title 5, United States Code. The Assistant
Administrator shall serve as a noncareer
appointee (as defined in section 3132(a)(7) of
that title).
[(B) Responsibilities and duties.--
[(i) Responsibilities.--The
responsibilities of the Assistant
Administrator shall be to administer
the programs and services of the Office
of Women's Business Ownership
established to assist women
entrepreneurs in the areas of--
[(I) starting and operating a
small business;
[(II) development of
management and technical
skills;
[(III) seeking Federal
procurement opportunities; and
[(IV) increasing the
opportunity for access to
capital.
[(ii) Duties.--The Assistant
Administrator shall--
[(I) administer and manage
the Women's Business Center
program;
[(II) recommend the annual
administrative and program
budgets for the Office of
Women's Business Ownership
(including the budget for the
Women's Business Center
program);
[(III) establish appropriate
funding levels therefore;
[(IV) review the annual
budgets submitted by each
applicant for the Women's
Business Center program;
[(V) select applicants to
participate in the program
under this section;
[(VI) implement this section;
[(VII) maintain a
clearinghouse to provide for
the dissemination and exchange
of information between women's
business centers;
[(VIII) serve as the vice
chairperson of the Interagency
Committee on Women's Business
Enterprise;
[(IX) serve as liaison for
the National Women's Business
Council; and
[(X) advise the Administrator
on appointments to the Women's
Business Council.
[(C) Consultation requirements.--In carrying
out the responsibilities and duties described
in this paragraph, the Assistant Administrator
shall confer with and seek the advice of the
Administration officials in areas served by the
women's business centers.]
(B) Responsibilities.--The responsibilities
of the Assistant Administrator shall be to
administer the programs and services of the
Office of Women's Business Ownership.
(C) Duties.--The Assistant Administrator
shall perform the following functions with
respect to the Office of Women's Business
Ownership:
(i) Recommend the annual
administrative and program budgets of
the Office and eligible entities
receiving a grant under the Women's
Business Center Program.
(ii) Review the annual budgets
submitted by each eligible entity
receiving a grant under the Women's
Business Center Program.
(iii) Select applicants to receive
grants to operate a women's business
center after reviewing information
required by this section, including the
budget of each applicant.
(iv) Collaborate with other Federal
departments and agencies, State and
local governments, not-for-profit
organizations, and for-profit
enterprises to maximize utilization of
taxpayer dollars and reduce (or
eliminate) any duplication among the
programs overseen by the Office of
Women's Business Ownership and those of
other entities that provide similar
services to women entrepreneurs.
(v) Maintain a clearinghouse to
provide for the dissemination and
exchange of information between women's
business centers.
(vi) Serve as the vice chairperson of
the Interagency Committee on Women's
Business Enterprise and as the liaison
for the National Women's Business
Council.
(3) Mission.--The mission of the Office of Women's
Business Ownership shall be to assist women
entrepreneurs to start, grow, and compete in global
markets by providing quality support with access to
capital, access to markets, job creation, growth, and
counseling by--
(A) fostering participation of women
entrepreneurs in the economy by overseeing a
network of women's business centers throughout
States and territories;
(B) creating public-private partnerships to
support women entrepreneurs and conduct
outreach and education to startup and existing
small business concerns owned and controlled by
women; and
(C) working with other programs overseen by
the Administrator to ensure women are well-
represented and being served and to identify
gaps where participation by women could be
increased.
(4) Accreditation program.--
(A) Establishment.--Not later than 270 days
after the date of enactment of this paragraph,
the Administrator shall establish standards for
an accreditation program for accrediting
eligible entities receiving a grant under this
section, after notice and the opportunity for
public comment of no less than 60 days.
(B) Transition provision.--Before the date on
which standards are established under
subparagraph (A), the Administrator may not
terminate a grant under this section absent
evidence of fraud or other criminal misconduct
by the recipient.
(C) Contracting authority.--The Administrator
may provide financial assistance, by contract
or otherwise, to a relevant national women's
business center representative association to
provide assistance in establishing the
standards required under subparagraph (A) or
for carrying out an accreditation program
pursuant to such standards.
(h) Program Examination.--
(1) In general.--The Administration shall--
(A) develop and implement an annual
programmatic and financial examination of each
women's business center established pursuant to
this section, pursuant to which each such
center shall provide to the Administration--
(i) an itemized cost breakdown of
actual expenditures for costs incurred
during the preceding year; and
(ii) documentation regarding the
amount of matching assistance from non-
Federal sources obtained and expended
by the center during the preceding year
in order to meet the requirements of
subsection (c) and, with respect to any
in-kind contributions described in
subsection (c)(2) that were used to
satisfy the requirements of subsection
(c), verification of the existence and
valuation of those contributions; and
(B) analyze the results of each such
examination and, based on that analysis, make a
determination regarding the programmatic and
financial viability of each women's business
center.
(2) Conditions for continued funding.--In determining
whether [to award a contract (as a sustainability
grant) under subsection (l) or] to renew a contract
(either as a grant or cooperative agreement) under this
section with a women's business center, the
Administration--
(A) shall consider the results of the most
recent examination of the center under
paragraph (1); and
(B) may withhold such award or renewal, if
the Administration determines that--
(i) the center has failed to provide
any information required to be provided
under clause (i) or (ii) of paragraph
(1)(A), or the information provided by
the center is inadequate; or
(ii) the center has failed to provide
any information required to be provided
by the center for purposes of the
report of the Administration under
subsection (j), or the information
provided by the center is inadequate.
(i) Contract Authority.--The authority of the Administrator
to enter into contracts shall be in effect for each fiscal year
only to the extent and in the amounts as are provided in
advance in appropriations Acts. After the Administrator has
entered into a contract, either as a grant or a cooperative
agreement, with any applicant under this section, it shall not
suspend, terminate, or fail to renew or extend any such
contract unless the Administrator provides the applicant with
written notification setting forth the reasons therefore and
affords the applicant an opportunity for a hearing, appeal, or
other administrative proceeding under chapter 5 of title 5,
United States Code.
(j) Management Report.--
(1) In general.--[The Administration] Not later than
November 1 of each year, the Administrator shall
prepare and submit to the Committees on Small Business
of the House of Representatives and the Senate a report
on the effectiveness of all projects conducted under
this section.
(2) Contents.--Each report submitted under paragraph
(1) shall include information concerning, with respect
to each women's business center established pursuant to
this section--
(A) the number of individuals receiving
assistance;
(B) the number of startup business concerns
formed;
(C) the gross receipts of assisted concerns;
(D) the employment increases or decreases of
assisted concerns;
(E) to the maximum extent practicable,
increases or decreases in profits of assisted
concerns; and
(F) the most recent analysis, as required
under subsection (h)(1)(B), and the subsequent
determination made by the Administration under
that subsection.
(k) Authorization of Appropriations.--
[(1) In general.--There is authorized to be
appropriated, to remain available until the expiration
of the pilot program under subsection (l)--
[(A) $12,000,000 for fiscal year 2000;
[(B) $12,800,000 for fiscal year 2001;
[(C) $13,700,000 for fiscal year 2002; and
[(D) $14,500,000 for fiscal year 2003.]
(1) In general.--There are authorized to be
appropriated to the Administration to carry out this
section, to remain available until expended,
$21,750,000 for each of fiscal years 2017 through 2020.
(2) Use of amounts.--
(A) In general.--Except as provided in
subparagraph (B), amounts made available under
this subsection for fiscal year 1999, and each
fiscal year thereafter, may only be used for
grant awards and may not be used for costs
incurred by the Administration in connection
with the management and administration of the
program under this section.
[(B) Exceptions.--Of the amount made
available under this subsection for a fiscal
year, the following amounts shall be available
for selection panel costs, post-award
conference costs, and costs related to
monitoring and oversight:
[(i) For fiscal year 2000, 2 percent.
[(ii) For fiscal year 2001, 1.9
percent.
[(iii) For fiscal year 2002, 1.9
percent.
[(iv) For fiscal year 2003, 1.6
percent.]
(B) Exceptions.--Of the amount made available
under this subsection for a fiscal year, the
following amounts shall be available for
selection panel costs, costs associated with
maintaining an accreditation program, and post-
award conference costs:
(i) For the first fiscal year
beginning after the date of the
enactment of this subparagraph, 2.65
percent.
(ii) For the second fiscal year
beginning after the date of the
enactment of this subparagraph and each
fiscal year thereafter through fiscal
year 2020, 2.5 percent.
(3) Expedited acquisition.--Notwithstanding any other
provision of law, the Administrator, acting through the
Assistant Administrator, may use such expedited
acquisition methods as the Administrator determines to
be appropriate to carry out this section, except that
the Administrator shall ensure that all small business
sources are provided a reasonable opportunity to submit
proposals.
[(4) Reservation of funds for sustainability pilot
program.--
[(A) In general.--Subject to subparagraph
(B), of the total amount made available under
this subsection for a fiscal year, the
following amounts shall be reserved for
sustainability grants under subsection (l):
[(i) For fiscal year 2000, 17
percent.
[(ii) For fiscal year 2001, 18.8
percent.
[(iii) For fiscal year 2002, 30.2
percent.
[(iv) For fiscal year 2003, 30.2
percent.
[(B) Use of unawarded funds for
sustainability pilot program grants.--If the
amount reserved under subparagraph (A) for any
fiscal year is not fully awarded to private
nonprofit organizations described in subsection
(l)(1)(B), the Administration is authorized to
use the unawarded amount to fund additional
women's business center sites or to increase
funding of existing women's business center
sites under subsection (b).]
(l) Notification Requirements Under the Women's Business
Center Program.--The Administrator shall provide--
(1) a public announcement of any opportunity to be
awarded grants under this section, and such
announcement shall include the standards by which such
award will be made, including the regulations issued
pursuant to subsection (f)(2)(A)(ii);
(2) the opportunity for any applicant for a grant
under this section that failed to obtain such a grant a
debriefing with the Assistant Administrator to review
the reasons for the applicant's failure; and
(3) with respect to any site visit or evaluation of
an eligible entity receiving a grant under this section
that is carried out by an officer or employee of the
Administration (other than the Inspector General), a
copy of the site visit report or evaluation, as
applicable, within 30 calendar days of the completion
of such vision or evaluation.
(m) Continued Funding for Centers.--
(1) In general.--A nonprofit organization described
in paragraph (2) shall be eligible to receive, subject
to paragraph (3), a 3-year grant under this subsection.
(2) Applicability.--A nonprofit organization
described in this paragraph is a nonprofit organization
that has received funding under [subsection (b) or (l)]
this subsection or subsection (b).
[(3) Application and approval criteria.--
[(A) Criteria.--Subject to subparagraph (B),
the Administrator shall develop and publish
criteria for the consideration and approval of
applications by nonprofit organizations under
this subsection.
[(B) Contents.--Except as otherwise provided
in this subsection, the conditions for
participation in the grant program under this
subsection shall be the same as the conditions
for participation in the program under
subsection (l), as in effect on the date of
enactment of this Act.
[(C) Notification.--Not later than 60 days
after the date of the deadline to submit
applications for each fiscal year, the
Administrator shall approve or deny any
application under this subsection and notify
the applicant for each such application.]
(3) Application and approval for continuation
grants.--
(A) Solicitation of applications.--The
Administrator shall solicit applications and
award continuation grants under this subsection
for the first fiscal year beginning after the
date of enactment of this paragraph, and every
third fiscal year thereafter.
(B) Contents of application.--Each eligible
entity desiring a grant under this subsection
shall submit to the Administrator an
application that contains--
(i) a certification that the
applicant--
(I) is an eligible entity;
(II) has designated an
executive director or program
manager to manage the women's
business center operated by the
applicant; and
(III) as a condition of
receiving a grant under this
subsection, agrees--
(aa) to receive a
site visit as part of
the final selection
process, at the
discretion of the
Administrator; and
(bb) to remedy any
problem identified
pursuant to the site
visit under item (aa);
(ii) information demonstrating that
the applicant has the ability and
resources to meet the needs of the
market to be served by the women's
business center for which a grant under
this subsection is sought, including
the ability to obtain the non-Federal
contribution required under paragraph
(4)(C);
(iii) information relating to
assistance to be provided by the
women's business center in the
geographic area served by the women's
business center for which a grant under
this subsection is sought;
(iv) information demonstrating that
the applicant has worked with resource
partners of the Administration and
other entities;
(v) a 3-year plan that describes the
services provided by the women's
business center for which a grant under
this subsection is sought--
(I) to serve women who are
business owners or potential
business owners by conducting
training and counseling
activities; and
(II) to provide training and
services to a representative
number of women who are
socially or economically
disadvantaged; and
(vi) any additional information that
the Administrator may reasonably
require.
(C) Review and approval of applications for
grants.--
(i) In general.--The Administrator--
(I) shall review each
application submitted under
subparagraph (B), based on the
information described in such
subparagraph and the criteria
set forth under clause (ii) of
this subparagraph; and
(II) as part of the final
selection process, may, at the
discretion of the
Administrator, conduct a site
visit to each women's business
center for which a grant under
this subsection is sought, in
particular to evaluate the
women's business center using
the selection criteria
described in clause (ii)(II).
(ii) Selection criteria.--
(I) In general.--The
Administrator shall evaluate
applicants for grants under
this subsection in accordance
with selection criteria that
are--
(aa) established
before the date on
which applicants are
required to submit the
applications;
(bb) stated in terms
of relative importance;
and
(cc) publicly
available and stated in
each solicitation for
applications for grants
under this subsection
made by the
Administrator.
(II) Required criteria.--The
selection criteria for a grant
under this subsection shall
include--
(aa) the total number
of entrepreneurs served
by the applicant;
(bb) the total number
of new startup
companies assisted by
the applicant;
(cc) the percentage
of clients of the
applicant that are
socially or
economically
disadvantaged;
(dd) the percentage
of individuals in the
community served by the
applicant who are
socially or
economically
disadvantaged;
(ee) the successful
accreditation of the
applicant under the
accreditation program
developed under
subsection (g)(5); and
(ff) any additional
criteria that the
Administrator may
reasonably require.
(iii) Conditions for continued
funding.--In determining whether to
make a grant under this subsection, the
Administrator--
(I) shall consider the
results of the most recent
evaluation of the women's
business center for which a
grant under this subsection is
sought, and, to a lesser
extent, previous evaluations;
and
(II) may withhold a grant
under this subsection, if the
Administrator determines that
the applicant has failed to
provide the information
required to be provided under
this paragraph, or the
information provided by the
applicant is inadequate.
(D) Notification.--Not later than 60 calendar
days after the date of each deadline to submit
applications under this paragraph, the
Administrator shall approve or deny each
submitted application and notify the applicant
for each such application of the approval or
denial.
(E) Record retention.--
(i) In general.--The Administrator
shall maintain a copy of each
application submitted under this
paragraph for not less than 5 years.
(ii) Paperwork reduction.--The
Administrator shall take steps to
reduce, to the maximum extent
practicable, the paperwork burden
associated with carrying out clause
(i).
(4) Award of grants.--
(A) In general.--Subject to the availability
of appropriations, the Administrator shall make
a grant for the Federal share of the cost of
activities described in the application to each
applicant approved under this subsection.
(B) Amount.--A grant under this subsection
shall be for not more than $150,000, for each
year of that grant.
(C) Federal share.--The Federal share under
this subsection shall be not more than 50
percent.
(D) Priority.--In allocating funds made
available for grants under this section, the
Administrator shall give applications under
this subsection [or subsection (l)] priority
over first-time applications under subsection
(b).
[(5) Renewal.--
[(A) In general.--The Administrator may renew
a grant under this subsection for additional 3-
year periods, if the nonprofit organization
submits an application for such renewal at such
time, in such manner, and accompanied by such
information as the Administrator may establish.
[(B) Unlimited renewals.--There shall be no
limitation on the number of times a grant may
be renewed under subparagraph (A).]
(5) Award to previous recipients.--There shall be no
limitation on the number of times the Administrator may
award a grant to an applicant under this subsection.
(n) Privacy Requirements.--
(1) In general.--A women's business center may not
disclose the name, address, or telephone number of any
individual or small business concern receiving
assistance under this section without the consent of
such individual or small business concern, unless--
(A) the Administrator is ordered to make such
a disclosure by a court in any civil or
criminal enforcement action initiated by a
Federal or State agency; or
(B) the Administrator considers such a
disclosure to be necessary for the purpose of
conducting a financial audit of a women's
business center, but a disclosure under this
subparagraph shall be limited to the
information necessary for such audit.
(2) Administration use of information.--This
subsection shall not--
(A) restrict Administration access to program
activity data; or
(B) prevent the Administration from using
client information (other than the information
described in subparagraph (A)) to conduct
client surveys.
(3) Regulations.--The Administrator shall issue
regulations to establish standards for requiring
disclosures during a financial audit under paragraph
(1)(B).
(o) Study and Report on Representation of Women.--
(1) Study.--The Administrator shall periodically
conduct a study to identify industries, as defined
under the North American Industry Classification
System, underrepresented by small business concerns
owned and controlled by women.
(2) Report.--Not later than 3 years after the date of
enactment of this subsection, and every 5 years
thereafter, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House
of Representatives a report on the results of each
study under paragraph (1) conducted during the 5-year
period ending on the date of the report.
* * * * * * *
SEC. 48. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT PROGRAMS.
(a) Expanded Support for Entrepreneurs.--
(1) In general.--Notwithstanding any other provision
of law, the Administrator shall only use the programs
authorized in sections 7(j), 7(m), 8(a), 8(b)(1), 21,
22, 29, and 32 of this Act, and sections 358 and 389 of
the Small Business Investment Act to deliver
entrepreneurial development services, entrepreneurial
education, support for the development and maintenance
of clusters, or business training.
(2) Exception.--This section shall not apply to
services provided to assist small business concerns
owned by an Indian tribe (as such term is defined in
section 8(a)(13)).
(b) Annual Report.--Beginning on the first December 1 after
the date of enactment of this subsection, the Administrator
shall annually report to the Committee on Small Business of the
House of Representatives and the Committee on Small Business
and Entrepreneurship of the Senate on all entrepreneurial
development activities undertaken in the current fiscal year.
This report shall include--
(1) a description and operating details for each
program and activity;
(2) operating circulars, manuals, and standard
operating procedures for each program and activity;
(3) a description of the process used to award grants
under each program and activity;
(4) a list of all awardees, contractors, and vendors
(including organization name and location) and the
amount of awards for the current fiscal year for each
program and activity;
(5) the amount of funding obligated for the current
fiscal year for each program and activity; and
(6) the names and titles for those individuals
responsible for each program and activity.
* * * * * * *
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CHILDREN'S HEALTH INSURANCE PROGRAM REAUTHORIZATION ACT OF 2009
* * * * * * *
TITLE VI--PROGRAM INTEGRITY AND OTHER MISCELLANEOUS PROVISIONS
* * * * * * *
Subtitle C--Other Provisions
SEC. 621. OUTREACH REGARDING HEALTH INSURANCE OPTIONS AVAILABLE TO
CHILDREN.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and
``Administrator'' means the Small Business
Administration and the Administrator thereof,
respectively;
(2) the term ``certified development company'' means
a development company participating in the program
under title V of the Small Business Investment Act of
1958 (15 U.S.C. 695 et seq.);
(3) the term ``Medicaid program'' means the program
established under title XIX of the Social Security Act
(42 U.S.C. 1396 et seq.);
[(4) the term ``Service Corps of Retired Executives''
means the Service Corps of Retired Executives
authorized by section 8(b)(1) of the Small Business Act
(15 U.S.C. 637(b)(1));]
(4) the term ``SCORE program'' means the SCORE
program authorized by section 8(b)(1)(B) of the Small
Business Act (15 U.S.C. 637(b)(1)(B));
(5) the term ``small business concern'' has the
meaning given that term in section 3 of the Small
Business Act (15 U.S.C. 632);
(6) the term ``small business development center''
means a small business development center described in
section 21 of the Small Business Act (15 U.S.C. 648);
(7) the term ``State'' has the meaning given that
term for purposes of title XXI of the Social Security
Act (42 U.S.C. 1397aa et seq.);
(8) the term ``State Children's Health Insurance
Program'' means the State Children's Health Insurance
Program established under title XXI of the Social
Security Act (42 U.S.C. 1397aa et seq.);
(9) the term ``task force'' means the task force
established under subsection (b)(1); and
(10) the term ``women's business center'' means a
women's business center described in section 29 of the
Small Business Act (15 U.S.C. 656).
(b) Establishment of Task Force.--
(1) Establishment.--There is established a task force
to conduct a nationwide campaign of education and
outreach for small business concerns regarding the
availability of coverage for children through private
insurance options, the Medicaid program, and the State
Children's Health Insurance Program.
(2) Membership.--The task force shall consist of the
Administrator, the Secretary of Health and Human
Services, the Secretary of Labor, and the Secretary of
the Treasury.
(3) Responsibilities.--The campaign conducted under
this subsection shall include--
(A) efforts to educate the owners of small
business concerns about the value of health
coverage for children;
(B) information regarding options available
to the owners and employees of small business
concerns to make insurance more affordable,
including Federal and State tax deductions and
credits for health care-related expenses and
health insurance expenses and Federal tax
exclusion for health insurance options
available under employer- sponsored cafeteria
plans under section 125 of the Internal Revenue
Code of 1986;
(C) efforts to educate the owners of small
business concerns about assistance available
through public programs; and
(D) efforts to educate the owners and
employees of small business concerns regarding
the availability of the hotline operated as
part of the Insure Kids Now program of the
Department of Health and Human Services.
(4) Implementation.--In carrying out this subsection,
the task force may--
(A) use any business partner of the
Administration, including--
(i) a small business development
center;
(ii) a certified development company;
(iii) a women's business center; and
(iv) the [Service Corps of Retired
Executives] SCORE program;
(B) enter into--
(i) a memorandum of understanding
with a chamber of commerce; and
(ii) a partnership with any
appropriate small business concern or
health advocacy group; and
(C) designate outreach programs at regional
offices of the Department of Health and Human
Services to work with district offices of the
Administration.
(5) Website.--The Administrator shall ensure that
links to information on the eligibility and enrollment
requirements for the Medicaid program and State
Children's Health Insurance Program of each State are
prominently displayed on the website of the
Administration.
(6) Report.--
(A) In general.--Not later than 2 years after
the date of enactment of this Act, and every 2
years thereafter, the Administrator shall
submit to the Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives a report on the status of the
nationwide campaign conducted under paragraph
(1).
(B) Contents.--Each report submitted under
subparagraph (A) shall include a status update
on all efforts made to educate owners and
employees of small business concerns on options
for providing health insurance for children
through public and private alternatives.
* * * * * * *
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ENERGY POLICY AND CONSERVATION ACT
* * * * * * *
TITLE III--IMPROVING ENERGY EFFICIENCY
* * * * * * *
Part B--Energy Conservation Program for Consumer Products Other Than
Automobiles
* * * * * * *
Consumer Education
Sec. 337. (a) In General.--The Secretary shall, in close
cooperation and coordination with the Commission and
appropriate industry trade associations and industry members,
including retailers, and interested consumer and environmental
organizations, carry out a program to educate consumers and
other persons with respect to--
(1) the significance of estimated annual operating
costs;
(2) the way in which comparative shopping, including
comparisons of estimated annual operating costs, can
save energy for the Nation and money for consumers; and
(3) such other matters as the Secretary determines
may encourage the conservation of energy in the use of
consumer products.
Such steps to educate consumers may include publications,
audiovisual presentations, demonstrations, and the sponsorship
of national and regional conferences involving manufacturers,
distributors, retailers, and consumers, and State, local, and
Federal Government representatives. Nothing in this section may
be construed to require the compilation of lists which compare
the estimated annual operating costs of consumer products by
model or manufacturer's name.
(b) State and Local Incentive Programs.--(1) The Secretary
shall, not later than one year after the date of the enactment
of this subsection, issue recommendations to the States for
establishing State and local incentive programs designed to
encourage the acceleration of voluntary replacement, by
consumers, of existing showerheads, faucets, water closets, and
urinals with those products that meet the standards established
for such products pursuant to subsections (j) and (k) of
section 325.
(2) In developing such recommendations, the Secretary shall
consult with the heads of other federal agencies, including the
Administrator of the Environmental Protection Agency; State
officials; manufacturers, suppliers, and installers of plumbing
products; and other interested parties.
(c) HVAC Maintenance.--(1) To ensure that installed air
conditioning and heating systems operate at maximum rated
efficiency levels, the Secretary shall, not later than 180 days
after the date of enactment of this subsection, carry out a
program to educate homeowners and small business owners
concerning the energy savings from properly conducted
maintenance of air conditioning, heating, and ventilating
systems.
(2) The Secretary shall carry out the program under paragraph
(1), on a cost-shared basis, in cooperation with the
Administrator of the Environmental Protection Agency and any
other entities that the Secretary determines to be appropriate,
including industry trade associations, industry members, and
energy efficiency organizations.
(d) Small Business Education and Assistance.--(1) The
Administrator of the Small Business Administration, in
consultation with the Secretary and the Administrator of the
Environmental Protection Agency, shall develop and coordinate a
Government-wide program, building on the Energy Star for Small
Business Program, to assist small businesses in--
(A) becoming more energy efficient;
(B) understanding the cost savings from improved
energy efficiency;
(C) understanding and accessing Federal procurement
opportunities with regard to Energy Star technologies
and products; and
(D) identifying financing options for energy
efficiency upgrades.
(2) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration shall--
(A) make program information available to small
business concerns directly through the district offices
and resource partners of the Small Business
Administration, including small business development
centers, women's business centers, and the [Service
Corps of Retired Executives (SCORE)] SCORE program, and
through other Federal agencies, including the Federal
Emergency Management Agency and the Department of
Agriculture; and
(B) coordinate assistance with the Secretary of
Commerce for manufacturing-related efforts, including
the Manufacturing Extension Partnership Program.
(3) The Secretary, on a cost shared basis in cooperation with
the Administrator of the Environmental Protection Agency, shall
provide to the Small Business Administration all advertising,
marketing, and other written materials necessary for the
dissemination of information under paragraph (2).
(4) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration, as part of the outreach to small business
concerns under the Energy Star Program for Small Business
Program, may enter into cooperative agreements with qualified
resources partners (including the National Center for
Appropriate Technology) to establish, maintain, and promote a
Small Business Energy Clearinghouse (in this subsection
referred to as the ``Clearinghouse'').
(5) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration shall ensure that the Clearinghouse provides a
centralized resource where small business concerns may access,
telephonically and electronically, technical information and
advice to help increase energy efficiency and reduce energy
costs.
(6) There are authorized to be appropriated such sums as are
necessary to carry out this subsection, to remain available
until expended.
* * * * * * *
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