<enum>I</enum><header>Lending</header> <section id="HD0E4C4F57342464D8733BEAEC449D433" section-type="subsequent-section"><enum>101.</enum><header>Microloan program for Puerto Rico small business concerns</header> <subsection id="HAB25EE51E6F34021B9DC48E22C1C66C9"><enum>(a)</enum><header>Increase in access to capital for certain intermediaries</header><text display-inline="yes-display-inline">Section 7(m)(3)(C) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(m)(3)(C)</external-xref>) is amended—</text> <paragraph id="H1F95C89373554B9992CA9C704F0C422C"><enum>(1)</enum><text>by inserting <quote>and except as provided in clause (ii)</quote> after <quote>subsection (a)(3)</quote>;</text> </paragraph> <paragraph id="H38643AB7C372413EB37B256EAE0A4D55"><enum>(2)</enum><text>by striking <quote>Notwithstanding</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H7D0E255E4B6246919C8953238A2C7779" style="OLC"> <clause id="H81898355E36A4C0B9B9637A057E5FA31"><enum>(i)</enum><header>In general</header><text>Notwithstanding</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph> <paragraph id="H1904AA8494DB44F299024737050DC565"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H714E09FE62C84D2D86F4756C622D62AE" style="OLC"> <clause id="HD44B22CA927444C1A5F608862784F0BC"><enum>(ii)</enum><header>Exception for certain Puerto Rico businesses</header> <subclause id="H7095232ECC3E4B959C46A242257CF8B4"><enum>(I)</enum><header>In general</header><text>No loan shall be made under this subsection if the total amount outstanding and committed to 1 covered intermediary (excluding outstanding grants) from the business loan and investment fund established by this Act would, as a result of such loan, exceed $6,000,000 in the remaining years of the covered intermediary's participation in the program.</text> </subclause> <subclause id="H911626A1F8204A2D9BA6BF1B1D63D906"><enum>(II)</enum><header>Definition</header><text display-inline="yes-display-inline">In this clause, the term <term>covered intermediary</term> means an intermediary that—</text> <item id="HC087DA43AFB74E3C89B4EEC13B6EADA2"><enum>(aa)</enum><text display-inline="yes-display-inline">is participating in the program; and</text> </item> <item id="HC07DBC3351644D92A6D979E90F7ED2E4"><enum>(bb)</enum><text display-inline="yes-display-inline">submits to the Administrator a certification that not less than 20 percent of the microloans made by the intermediary under this subsection, during such period as the Administrator may specify, will be made to Puerto Rico businesses.</text></item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection> <subsection display-inline="no-display-inline" id="H94B3DB0E65704E24B8965A57376561E4"><enum>(b)</enum><header>Waiver of 25/75 rule for microloans to Puerto Rico small business concerns</header> <paragraph id="H1A4B42D4B3764FD6BD0F2185334211EE"><enum>(1)</enum><header>Waiver authorized</header><text>Section 7(m)(4)(E) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(m)(4)(E)</external-xref>) is amended—</text> <subparagraph id="HE9149293A8AF4FABA401C5DFC55D7279"><enum>(A)</enum><text>in clause (i), by striking <quote>Each</quote> and inserting <quote>Except as provided in clause (iii), each</quote>; and</text> </subparagraph> <subparagraph id="HE428E0765E1D4754932D828D29FE8D1D"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H94CB7E0623AD4BFCBE23115757701ADD" style="OLC"> <clause id="H33F9CA93CE084E138A2D62407984DCFF"><enum>(iii)</enum><header>Exception for certain intermediaries</header><text display-inline="yes-display-inline">The Administrator shall waive the requirements of clause (i) for an intermediary for which not less than 25 percent of the loans made by the intermediary are made to Puerto Rico businesses.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph> <paragraph id="H96588B04FF2D4ED4B186543C6E393519"><enum>(2)</enum><header>Study</header><text display-inline="yes-display-inline">Not later than 18 months after the date of enactment of this Act, the Administrator shall submit to Congress a report on the impact of waiving the requirements of section 7(m)(4)(E)(i) of the Small Business Act for all intermediaries receiving grant funds under section 7(m)(1)(B)(ii) of the Small Business Act, which shall include an analysis of the effectiveness and feasibility of expanding the waiver to small business concerns nationwide.</text> </paragraph></subsection> <subsection id="HCAB063AC75CC49228BC7BDF8917FC30C"><enum>(c)</enum><header>Prospective repeal</header><text display-inline="yes-display-inline">Subsections (a) and (b) shall be repealed, and the provisions of law amended by such subsections shall be restored as if such subsections had not been enacted, on the Oversight Board termination date.</text> </subsection> <subsection id="H64B30FC5B9894986992224A559367D2D"><enum>(d)</enum><header>GAO study</header><text display-inline="yes-display-inline">Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall complete a study and submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the following:</text> <paragraph commented="no" id="HB3B05109EC234596B1FA62A471EFDA1D"><enum>(1)</enum><text display-inline="yes-display-inline">The operations (including services provided, structure, size, and area of operation) of a representative sample of—</text> <subparagraph commented="no" id="H6A55701C20904DAFA7CCC14449B46D50"><enum>(A)</enum><text display-inline="yes-display-inline">intermediaries that are eligible for participation in the microloan program under section 7(m) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(m)</external-xref>) and that participate in the microloan program; and</text> </subparagraph> <subparagraph commented="no" id="H5004A346586C436E98AF7490327A4A15"><enum>(B)</enum><text display-inline="yes-display-inline">intermediaries (including those operated for profit, operated as nonprofit organizations, and affiliated with a United States institution of higher learning (as defined in section 3452 of title 38, United States Code) that are so eligible and that do not participate in the microloan program.</text> </subparagraph></paragraph> <paragraph commented="no" id="H30AA0472CFE64548879A2AD47B62AC77"><enum>(2)</enum><text>The reasons why intermediaries described in paragraph (1)(B) choose not to participate in the microloan program.</text> </paragraph> <paragraph commented="no" id="HA903C47B94C5452BBA4CF468B8DCBE43"><enum>(3)</enum><text>Recommendations on how to encourage increased participation in the microloan program by intermediaries described in paragraph (1)(B).</text> </paragraph> <paragraph id="HB72942E63BC845E79E3A57489E90ECB3"><enum>(4)</enum><text>Recommendations for increasing the number of intermediaries located in the territories of the United States or in economically distressed areas (as defined in section 7(m)(11)(D) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(m)(11)(D)</external-xref>) that are eligible for participation in the microloan program under section 7(m) of such Act.</text> </paragraph> <paragraph commented="no" id="HFD72D9E9BF9C4A0E96DFD5A95A9603E1"><enum>(5)</enum><text>Recommendations on how to decrease the costs associated with participation in the microloan program for eligible intermediaries.</text> </paragraph></subsection></section> <section id="HD92D2290B08A4D5F86DF01B0459945E6"><enum>102.</enum><header>Fee reductions</header> <subsection id="HDA28EE3309D744FABFD27CAD89A62E54"><enum>(a)</enum><header>Administrative provisions for the Small Business Administration</header> <paragraph id="H7B1AC205854D4AF7A4CBE33A7CD07DD2"><enum>(1)</enum><header>Definition</header><text display-inline="yes-display-inline">In this subsection, the term <term>covered business loan</term> means a loan—</text> <subparagraph id="H3D1C392204204409B402E4414F813BBA"><enum>(A)</enum><text display-inline="yes-display-inline">of not more than $2,000,000;</text> </subparagraph> <subparagraph id="H51A4063F279E4FD3A957A86D73E9B19C"><enum>(B)</enum><text display-inline="yes-display-inline">that is guaranteed by the Administrator under section 7(a) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)</external-xref>);</text> </subparagraph> <subparagraph id="H3BB655441F3D4D09BDD7A44C90CE8988"><enum>(C)</enum><text display-inline="yes-display-inline">for which the application is approved on or after the date of enactment of this Act; and</text> </subparagraph> <subparagraph id="H16AEE45364AE4DD5922E9EFD5B310A10"><enum>(D)</enum><text>that is made to a Puerto Rico business.</text> </subparagraph></paragraph> <paragraph id="HCE4E087F15704BFD9B3183200A101151"><enum>(2)</enum><header>Fees</header><text display-inline="yes-display-inline">During the period beginning on the date of enactment of this Act and ending on the Oversight Board termination date, and to the extent that the cost of such elimination or reduction of fees is offset by appropriations, with respect to each covered business loan, the Administrator shall—</text> <subparagraph id="H571F6F7F37CB4191A3B12815656AD7EA"><enum>(A)</enum><text>in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act, collect no fee or reduce fees to the maximum extent possible; and</text> </subparagraph> <subparagraph commented="no" id="HBF29E83EBFA44B86AAD5338DBAE78AF3"><enum>(B)</enum><text>in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act, collect no fee or reduce fees to the maximum extent possible.</text> </subparagraph></paragraph></subsection> <subsection id="H300F7789FD5E4BE1B85B12012E131C8E"><enum>(b)</enum><header>Temporary fee elimination for the 504 loan program</header> <paragraph id="HEAE73E0DCB654B518AD44D30948C906A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">During the period beginning on the date of enactment of this Act and ending on the Oversight Board termination date, and to the extent the cost of such elimination in fees is offset by appropriations, with respect to each loan of not more than $2,000,000 guaranteed by the Administrator under title V of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/695">15 U.S.C. 695</external-xref> et seq.) with respect to a development company that has its principal office located in Puerto Rico and for which an application is approved or pending approval on or after the date of enactment of this Act—</text> <subparagraph id="HA0A3E5BE34464B38840AE90768A4568C"><enum>(A)</enum><text>the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(2) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/697">15 U.S.C. 697(d)(2)</external-xref>), collect no fee; and</text> </subparagraph> <subparagraph id="H35AD09B6F15446A3B14864D7441121C4"><enum>(B)</enum><text>a development company shall, in lieu of the processing fee under section 120.971(a)(1) of title 13, Code of Federal Regulations (relating to fees paid by borrowers), or any successor thereto, collect no fee.</text> </subparagraph></paragraph> <paragraph id="HFE471A1F0FCF4ED7934A82002150AA46"><enum>(2)</enum><header>Reimbursement for waived fees</header> <subparagraph id="H44522216849A498E897E499139402CC1"><enum>(A)</enum><header>In general</header><text>To the extent that the cost of such payments is offset by appropriations, the Administrator shall reimburse each development company that does not collect a processing fee under paragraph (1)(B).</text> </subparagraph> <subparagraph id="HF1889BBE49F0441BA55D63243CF0D1AA"><enum>(B)</enum><header>Amount</header><text>The reimbursement to a development company under subparagraph (A) shall be in an amount equal to 1.5 percent of the net debenture proceeds for which the development company does not collect a processing fee under paragraph (1)(B).</text> </subparagraph></paragraph></subsection> <subsection id="HA4BFC1CC0DAD4DAB9A492FF701BFEBA9"><enum>(c)</enum><header>Application of fee eliminations</header><text>To the extent that amounts are made available to the Administrator for the purpose of fee eliminations or reductions under subsection (a), the Administrator shall—</text> <paragraph id="H662392FE124241CDBE4645E245DEF854"><enum>(1)</enum><text display-inline="yes-display-inline">first use any amounts provided to eliminate or reduce fees paid by borrowers under clauses (i), (ii), and (iii) of section 7(a)(18)(A) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)(18)(A)</external-xref>), to the maximum extent possible;</text> </paragraph> <paragraph id="HA43726C7B66640F88691BCA1804AFDB7"><enum>(2)</enum><text display-inline="yes-display-inline">to the extent amounts provided remain after use in accordance with paragraph (1), use any amounts provided to eliminate or reduce fees under section 7(a)(23)(A) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)(23)(A)</external-xref>) paid by lenders with assets of not more than $1,000,000,000, as of the date of enactment of this Act; and</text> </paragraph> <paragraph id="H56BB1657A48541C48A51BD75ED1AC488"><enum>(3)</enum><text display-inline="yes-display-inline">to the extent amounts provided remain after use in accordance with paragraphs (1) and (2), use any remaining amounts provided to reduce fees under section 7(a)(23)(A) of the Small Business Act paid by lenders other than those described under paragraph (2).</text> </paragraph></subsection></section> <section commented="no" id="H71A6B55D32AE480ABE95FC8ECE38FC16"><enum>103.</enum><header>Economic stimulus lending program for small businesses</header> <subsection commented="no" id="H166CECDC62AF4F85871DE74C44FABB6B"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">Notwithstanding section 7(a) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)</external-xref>), for a qualifying small business loan the Administrator may guarantee not more than 90 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 $2,000,000.</text> </subsection> <subsection commented="no" id="HB1A52CBD7E2A437A8F3FA983CA14B12F"><enum>(b)</enum><header>Qualifying small business loan defined</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>qualifying small business loan</term> means any loan to a Puerto Rico business made pursuant to section 7(a) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)</external-xref>), except for such loans made under section 7(a)(31) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)(31)</external-xref>).</text> </subsection> <subsection commented="no" id="H52D7727D21E14A9AAA42B3D0A434FC16"><enum>(c)</enum><header>Qualified borrowers</header> <paragraph commented="no" id="H9C903FA5E7C249BC92E96DEC4132A895"><enum>(1)</enum><header>Aliens unlawfully present in the United States</header><text>The Administrator may not guarantee a loan made under this section to a small business concern if an individual who is an alien unlawfully present in the United States—</text> <subparagraph commented="no" id="H5B12BF09A5C94CC5B83BF25ED9BEBCA1"><enum>(A)</enum><text>has an ownership interest in that concern; or</text> </subparagraph> <subparagraph commented="no" id="HB9650E0C0B6540A0927780499200345C"><enum>(B)</enum><text>has an ownership interest in another concern that itself has an ownership interest in that concern.</text> </subparagraph></paragraph> <paragraph commented="no" id="H936B8C82294D4F1EB6B5EF280925F280"><enum>(2)</enum><header>Firms in violation of immigration laws</header><text display-inline="yes-display-inline">The Administrator may not guarantee a loan made under this section to any entity, based on a determination by the Secretary of Homeland Security or the Attorney General, found to have engaged in a pattern or practice of hiring, recruiting, or referring for a fee for employment in the United States an alien, if such entity knows that the person is an unauthorized alien.</text> </paragraph></subsection> <subsection commented="no" id="H7A55309A68C0425AB2A0353DE337AD80"><enum>(d)</enum><header>Criminal background checks</header><text>Prior to guaranteeing a loan made under this section, 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.</text> </subsection> <subsection commented="no" id="H0265E912A4D949A4B92894F644CCD4E8"><enum>(e)</enum><header>Application of other law</header><text>Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990.</text> </subsection> <subsection commented="no" id="HC290B650788A4962BC67D94C8DC692C4"><enum>(f)</enum><header>Small Business Act provisions</header><text display-inline="yes-display-inline">Except as otherwise provided in this section, the requirements of section 7 of the Small Business Act (and regulations promulgated thereunder) applicable to loan guarantees on or before the date of enactment of this Act shall apply to loan guarantees made under this section.</text> </subsection> <subsection commented="no" id="H17BF7378E1CA48C5A45A858063C3ED14"><enum>(g)</enum><header>Sunset</header><text display-inline="yes-display-inline">The Administrator may not guarantee a loan made under this section after the Oversight Board termination date.</text> </subsection></section> <section id="H9D937422FB1E408F82F384AF66D9E8B8"><enum>104.</enum><header>Contribution percentages for 504 projects</header><text display-inline="no-display-inline">Notwithstanding section 502(3) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/696">15 U.S.C. 696(3)</external-xref>), during the period beginning on the date of enactment of this Act and ending on the Oversight Board termination date, the Administrator may guarantee a debenture issued by a development company that has its principal office located in Puerto Rico if, of the total cost of the project financed—</text> <paragraph id="HD3A751F4DE5B48A2A172226C23EEB316"><enum>(1)</enum><text>50 percent is derived from a loan from a private sector lender;</text> </paragraph> <paragraph id="H325594F1854C44C5907603A4FA4E3C49"><enum>(2)</enum><text display-inline="yes-display-inline">45 percent is derived from a loan made from the proceeds of such debenture issued by the development company; and</text> </paragraph> <paragraph id="HCFFF3BF39BF6418686F1C19124445F3F"><enum>(3)</enum><text>5 percent is provide by the borrower of such loans.</text> </paragraph></section> <section display-inline="no-display-inline" id="HC0830B2D2BCF45779A24E3B336A5B6FD" section-type="subsequent-section"><enum>105.</enum><header>Independent subsidy calculation</header><text display-inline="no-display-inline">In making calculations under section 7(a)(26) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)(26)</external-xref>) or section 503(g) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/697">15 U.S.C. 697(g)</external-xref>), the Director of the Office of Management and Budget shall make such calculations separately for loans purchased or guaranteed under the authority under section 102, 103, or 104 of this Act.</text> </section>

116 HR 225 IH: Puerto Rico Small Business Assistance Act of 2019 U.S. House of Representatives 2019-01-03 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

Short title

This Act may be cited as the

Puerto Rico Small Business Assistance Act of 2019

Table of contents

The table of contents for this Act are as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Definitions.

Title I—Lending

Sec. 101. Microloan program for Puerto Rico small business concerns.

Sec. 102. Fee reductions.

Sec. 103. Economic stimulus lending program for small businesses.

Sec. 104. Contribution percentages for 504 projects.

Sec. 105. Independent subsidy calculation.

Title II—Procurement

Sec. 201. Contracting preference for Puerto Rico businesses.

Title III—Entrepreneurial Development

Sec. 301. Veteran Business Outreach Center in Puerto Rico.

Sec. 302. FAST grant program for Puerto Rico.

Definitions

In this Act: (1)

Administrator

The term Administrator means the Administrator of the Small Business Administration. (2)

Oversight Board termination date

The term Oversight Board termination date means the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates. (3)

Puerto Rico

The term Puerto Rico means the Commonwealth of Puerto Rico. (4)

Puerto Rico business

The term Puerto Rico business has the meaning given in section 3(ee) of the Small Business Act (15 U.S.C. 632(ee)). (5)

Small business concern

The term small business concern has the meaning given such term under section 3 of the Small Business Act (15 U.S.C. 632).

<enum>I</enum><header>Lending</header> <section id="HD0E4C4F57342464D8733BEAEC449D433" section-type="subsequent-section"><enum>101.</enum><header>Microloan program for Puerto Rico small business concerns</header> <subsection id="HAB25EE51E6F34021B9DC48E22C1C66C9"><enum>(a)</enum><header>Increase in access to capital for certain intermediaries</header><text display-inline="yes-display-inline">Section 7(m)(3)(C) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(m)(3)(C)</external-xref>) is amended—</text> <paragraph id="H1F95C89373554B9992CA9C704F0C422C"><enum>(1)</enum><text>by inserting <quote>and except as provided in clause (ii)</quote> after <quote>subsection (a)(3)</quote>;</text> </paragraph> <paragraph id="H38643AB7C372413EB37B256EAE0A4D55"><enum>(2)</enum><text>by striking <quote>Notwithstanding</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H7D0E255E4B6246919C8953238A2C7779" style="OLC"> <clause id="H81898355E36A4C0B9B9637A057E5FA31"><enum>(i)</enum><header>In general</header><text>Notwithstanding</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph> <paragraph id="H1904AA8494DB44F299024737050DC565"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H714E09FE62C84D2D86F4756C622D62AE" style="OLC"> <clause id="HD44B22CA927444C1A5F608862784F0BC"><enum>(ii)</enum><header>Exception for certain Puerto Rico businesses</header> <subclause id="H7095232ECC3E4B959C46A242257CF8B4"><enum>(I)</enum><header>In general</header><text>No loan shall be made under this subsection if the total amount outstanding and committed to 1 covered intermediary (excluding outstanding grants) from the business loan and investment fund established by this Act would, as a result of such loan, exceed $6,000,000 in the remaining years of the covered intermediary's participation in the program.</text> </subclause> <subclause id="H911626A1F8204A2D9BA6BF1B1D63D906"><enum>(II)</enum><header>Definition</header><text display-inline="yes-display-inline">In this clause, the term <term>covered intermediary</term> means an intermediary that—</text> <item id="HC087DA43AFB74E3C89B4EEC13B6EADA2"><enum>(aa)</enum><text display-inline="yes-display-inline">is participating in the program; and</text> </item> <item id="HC07DBC3351644D92A6D979E90F7ED2E4"><enum>(bb)</enum><text display-inline="yes-display-inline">submits to the Administrator a certification that not less than 20 percent of the microloans made by the intermediary under this subsection, during such period as the Administrator may specify, will be made to Puerto Rico businesses.</text></item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection> <subsection display-inline="no-display-inline" id="H94B3DB0E65704E24B8965A57376561E4"><enum>(b)</enum><header>Waiver of 25/75 rule for microloans to Puerto Rico small business concerns</header> <paragraph id="H1A4B42D4B3764FD6BD0F2185334211EE"><enum>(1)</enum><header>Waiver authorized</header><text>Section 7(m)(4)(E) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(m)(4)(E)</external-xref>) is amended—</text> <subparagraph id="HE9149293A8AF4FABA401C5DFC55D7279"><enum>(A)</enum><text>in clause (i), by striking <quote>Each</quote> and inserting <quote>Except as provided in clause (iii), each</quote>; and</text> </subparagraph> <subparagraph id="HE428E0765E1D4754932D828D29FE8D1D"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H94CB7E0623AD4BFCBE23115757701ADD" style="OLC"> <clause id="H33F9CA93CE084E138A2D62407984DCFF"><enum>(iii)</enum><header>Exception for certain intermediaries</header><text display-inline="yes-display-inline">The Administrator shall waive the requirements of clause (i) for an intermediary for which not less than 25 percent of the loans made by the intermediary are made to Puerto Rico businesses.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph> <paragraph id="H96588B04FF2D4ED4B186543C6E393519"><enum>(2)</enum><header>Study</header><text display-inline="yes-display-inline">Not later than 18 months after the date of enactment of this Act, the Administrator shall submit to Congress a report on the impact of waiving the requirements of section 7(m)(4)(E)(i) of the Small Business Act for all intermediaries receiving grant funds under section 7(m)(1)(B)(ii) of the Small Business Act, which shall include an analysis of the effectiveness and feasibility of expanding the waiver to small business concerns nationwide.</text> </paragraph></subsection> <subsection id="HCAB063AC75CC49228BC7BDF8917FC30C"><enum>(c)</enum><header>Prospective repeal</header><text display-inline="yes-display-inline">Subsections (a) and (b) shall be repealed, and the provisions of law amended by such subsections shall be restored as if such subsections had not been enacted, on the Oversight Board termination date.</text> </subsection> <subsection id="H64B30FC5B9894986992224A559367D2D"><enum>(d)</enum><header>GAO study</header><text display-inline="yes-display-inline">Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall complete a study and submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the following:</text> <paragraph commented="no" id="HB3B05109EC234596B1FA62A471EFDA1D"><enum>(1)</enum><text display-inline="yes-display-inline">The operations (including services provided, structure, size, and area of operation) of a representative sample of—</text> <subparagraph commented="no" id="H6A55701C20904DAFA7CCC14449B46D50"><enum>(A)</enum><text display-inline="yes-display-inline">intermediaries that are eligible for participation in the microloan program under section 7(m) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(m)</external-xref>) and that participate in the microloan program; and</text> </subparagraph> <subparagraph commented="no" id="H5004A346586C436E98AF7490327A4A15"><enum>(B)</enum><text display-inline="yes-display-inline">intermediaries (including those operated for profit, operated as nonprofit organizations, and affiliated with a United States institution of higher learning (as defined in section 3452 of title 38, United States Code) that are so eligible and that do not participate in the microloan program.</text> </subparagraph></paragraph> <paragraph commented="no" id="H30AA0472CFE64548879A2AD47B62AC77"><enum>(2)</enum><text>The reasons why intermediaries described in paragraph (1)(B) choose not to participate in the microloan program.</text> </paragraph> <paragraph commented="no" id="HA903C47B94C5452BBA4CF468B8DCBE43"><enum>(3)</enum><text>Recommendations on how to encourage increased participation in the microloan program by intermediaries described in paragraph (1)(B).</text> </paragraph> <paragraph id="HB72942E63BC845E79E3A57489E90ECB3"><enum>(4)</enum><text>Recommendations for increasing the number of intermediaries located in the territories of the United States or in economically distressed areas (as defined in section 7(m)(11)(D) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(m)(11)(D)</external-xref>) that are eligible for participation in the microloan program under section 7(m) of such Act.</text> </paragraph> <paragraph commented="no" id="HFD72D9E9BF9C4A0E96DFD5A95A9603E1"><enum>(5)</enum><text>Recommendations on how to decrease the costs associated with participation in the microloan program for eligible intermediaries.</text> </paragraph></subsection></section> <section id="HD92D2290B08A4D5F86DF01B0459945E6"><enum>102.</enum><header>Fee reductions</header> <subsection id="HDA28EE3309D744FABFD27CAD89A62E54"><enum>(a)</enum><header>Administrative provisions for the Small Business Administration</header> <paragraph id="H7B1AC205854D4AF7A4CBE33A7CD07DD2"><enum>(1)</enum><header>Definition</header><text display-inline="yes-display-inline">In this subsection, the term <term>covered business loan</term> means a loan—</text> <subparagraph id="H3D1C392204204409B402E4414F813BBA"><enum>(A)</enum><text display-inline="yes-display-inline">of not more than $2,000,000;</text> </subparagraph> <subparagraph id="H51A4063F279E4FD3A957A86D73E9B19C"><enum>(B)</enum><text display-inline="yes-display-inline">that is guaranteed by the Administrator under section 7(a) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)</external-xref>);</text> </subparagraph> <subparagraph id="H3BB655441F3D4D09BDD7A44C90CE8988"><enum>(C)</enum><text display-inline="yes-display-inline">for which the application is approved on or after the date of enactment of this Act; and</text> </subparagraph> <subparagraph id="H16AEE45364AE4DD5922E9EFD5B310A10"><enum>(D)</enum><text>that is made to a Puerto Rico business.</text> </subparagraph></paragraph> <paragraph id="HCE4E087F15704BFD9B3183200A101151"><enum>(2)</enum><header>Fees</header><text display-inline="yes-display-inline">During the period beginning on the date of enactment of this Act and ending on the Oversight Board termination date, and to the extent that the cost of such elimination or reduction of fees is offset by appropriations, with respect to each covered business loan, the Administrator shall—</text> <subparagraph id="H571F6F7F37CB4191A3B12815656AD7EA"><enum>(A)</enum><text>in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act, collect no fee or reduce fees to the maximum extent possible; and</text> </subparagraph> <subparagraph commented="no" id="HBF29E83EBFA44B86AAD5338DBAE78AF3"><enum>(B)</enum><text>in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act, collect no fee or reduce fees to the maximum extent possible.</text> </subparagraph></paragraph></subsection> <subsection id="H300F7789FD5E4BE1B85B12012E131C8E"><enum>(b)</enum><header>Temporary fee elimination for the 504 loan program</header> <paragraph id="HEAE73E0DCB654B518AD44D30948C906A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">During the period beginning on the date of enactment of this Act and ending on the Oversight Board termination date, and to the extent the cost of such elimination in fees is offset by appropriations, with respect to each loan of not more than $2,000,000 guaranteed by the Administrator under title V of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/695">15 U.S.C. 695</external-xref> et seq.) with respect to a development company that has its principal office located in Puerto Rico and for which an application is approved or pending approval on or after the date of enactment of this Act—</text> <subparagraph id="HA0A3E5BE34464B38840AE90768A4568C"><enum>(A)</enum><text>the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(2) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/697">15 U.S.C. 697(d)(2)</external-xref>), collect no fee; and</text> </subparagraph> <subparagraph id="H35AD09B6F15446A3B14864D7441121C4"><enum>(B)</enum><text>a development company shall, in lieu of the processing fee under section 120.971(a)(1) of title 13, Code of Federal Regulations (relating to fees paid by borrowers), or any successor thereto, collect no fee.</text> </subparagraph></paragraph> <paragraph id="HFE471A1F0FCF4ED7934A82002150AA46"><enum>(2)</enum><header>Reimbursement for waived fees</header> <subparagraph id="H44522216849A498E897E499139402CC1"><enum>(A)</enum><header>In general</header><text>To the extent that the cost of such payments is offset by appropriations, the Administrator shall reimburse each development company that does not collect a processing fee under paragraph (1)(B).</text> </subparagraph> <subparagraph id="HF1889BBE49F0441BA55D63243CF0D1AA"><enum>(B)</enum><header>Amount</header><text>The reimbursement to a development company under subparagraph (A) shall be in an amount equal to 1.5 percent of the net debenture proceeds for which the development company does not collect a processing fee under paragraph (1)(B).</text> </subparagraph></paragraph></subsection> <subsection id="HA4BFC1CC0DAD4DAB9A492FF701BFEBA9"><enum>(c)</enum><header>Application of fee eliminations</header><text>To the extent that amounts are made available to the Administrator for the purpose of fee eliminations or reductions under subsection (a), the Administrator shall—</text> <paragraph id="H662392FE124241CDBE4645E245DEF854"><enum>(1)</enum><text display-inline="yes-display-inline">first use any amounts provided to eliminate or reduce fees paid by borrowers under clauses (i), (ii), and (iii) of section 7(a)(18)(A) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)(18)(A)</external-xref>), to the maximum extent possible;</text> </paragraph> <paragraph id="HA43726C7B66640F88691BCA1804AFDB7"><enum>(2)</enum><text display-inline="yes-display-inline">to the extent amounts provided remain after use in accordance with paragraph (1), use any amounts provided to eliminate or reduce fees under section 7(a)(23)(A) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)(23)(A)</external-xref>) paid by lenders with assets of not more than $1,000,000,000, as of the date of enactment of this Act; and</text> </paragraph> <paragraph id="H56BB1657A48541C48A51BD75ED1AC488"><enum>(3)</enum><text display-inline="yes-display-inline">to the extent amounts provided remain after use in accordance with paragraphs (1) and (2), use any remaining amounts provided to reduce fees under section 7(a)(23)(A) of the Small Business Act paid by lenders other than those described under paragraph (2).</text> </paragraph></subsection></section> <section commented="no" id="H71A6B55D32AE480ABE95FC8ECE38FC16"><enum>103.</enum><header>Economic stimulus lending program for small businesses</header> <subsection commented="no" id="H166CECDC62AF4F85871DE74C44FABB6B"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">Notwithstanding section 7(a) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)</external-xref>), for a qualifying small business loan the Administrator may guarantee not more than 90 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 $2,000,000.</text> </subsection> <subsection commented="no" id="HB1A52CBD7E2A437A8F3FA983CA14B12F"><enum>(b)</enum><header>Qualifying small business loan defined</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>qualifying small business loan</term> means any loan to a Puerto Rico business made pursuant to section 7(a) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)</external-xref>), except for such loans made under section 7(a)(31) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)(31)</external-xref>).</text> </subsection> <subsection commented="no" id="H52D7727D21E14A9AAA42B3D0A434FC16"><enum>(c)</enum><header>Qualified borrowers</header> <paragraph commented="no" id="H9C903FA5E7C249BC92E96DEC4132A895"><enum>(1)</enum><header>Aliens unlawfully present in the United States</header><text>The Administrator may not guarantee a loan made under this section to a small business concern if an individual who is an alien unlawfully present in the United States—</text> <subparagraph commented="no" id="H5B12BF09A5C94CC5B83BF25ED9BEBCA1"><enum>(A)</enum><text>has an ownership interest in that concern; or</text> </subparagraph> <subparagraph commented="no" id="HB9650E0C0B6540A0927780499200345C"><enum>(B)</enum><text>has an ownership interest in another concern that itself has an ownership interest in that concern.</text> </subparagraph></paragraph> <paragraph commented="no" id="H936B8C82294D4F1EB6B5EF280925F280"><enum>(2)</enum><header>Firms in violation of immigration laws</header><text display-inline="yes-display-inline">The Administrator may not guarantee a loan made under this section to any entity, based on a determination by the Secretary of Homeland Security or the Attorney General, found to have engaged in a pattern or practice of hiring, recruiting, or referring for a fee for employment in the United States an alien, if such entity knows that the person is an unauthorized alien.</text> </paragraph></subsection> <subsection commented="no" id="H7A55309A68C0425AB2A0353DE337AD80"><enum>(d)</enum><header>Criminal background checks</header><text>Prior to guaranteeing a loan made under this section, 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.</text> </subsection> <subsection commented="no" id="H0265E912A4D949A4B92894F644CCD4E8"><enum>(e)</enum><header>Application of other law</header><text>Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990.</text> </subsection> <subsection commented="no" id="HC290B650788A4962BC67D94C8DC692C4"><enum>(f)</enum><header>Small Business Act provisions</header><text display-inline="yes-display-inline">Except as otherwise provided in this section, the requirements of section 7 of the Small Business Act (and regulations promulgated thereunder) applicable to loan guarantees on or before the date of enactment of this Act shall apply to loan guarantees made under this section.</text> </subsection> <subsection commented="no" id="H17BF7378E1CA48C5A45A858063C3ED14"><enum>(g)</enum><header>Sunset</header><text display-inline="yes-display-inline">The Administrator may not guarantee a loan made under this section after the Oversight Board termination date.</text> </subsection></section> <section id="H9D937422FB1E408F82F384AF66D9E8B8"><enum>104.</enum><header>Contribution percentages for 504 projects</header><text display-inline="no-display-inline">Notwithstanding section 502(3) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/696">15 U.S.C. 696(3)</external-xref>), during the period beginning on the date of enactment of this Act and ending on the Oversight Board termination date, the Administrator may guarantee a debenture issued by a development company that has its principal office located in Puerto Rico if, of the total cost of the project financed—</text> <paragraph id="HD3A751F4DE5B48A2A172226C23EEB316"><enum>(1)</enum><text>50 percent is derived from a loan from a private sector lender;</text> </paragraph> <paragraph id="H325594F1854C44C5907603A4FA4E3C49"><enum>(2)</enum><text display-inline="yes-display-inline">45 percent is derived from a loan made from the proceeds of such debenture issued by the development company; and</text> </paragraph> <paragraph id="HCFFF3BF39BF6418686F1C19124445F3F"><enum>(3)</enum><text>5 percent is provide by the borrower of such loans.</text> </paragraph></section> <section display-inline="no-display-inline" id="HC0830B2D2BCF45779A24E3B336A5B6FD" section-type="subsequent-section"><enum>105.</enum><header>Independent subsidy calculation</header><text display-inline="no-display-inline">In making calculations under section 7(a)(26) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)(26)</external-xref>) or section 503(g) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/697">15 U.S.C. 697(g)</external-xref>), the Director of the Office of Management and Budget shall make such calculations separately for loans purchased or guaranteed under the authority under section 102, 103, or 104 of this Act.</text> </section> <enum>II</enum><header>Procurement</header> <section id="HDCB2BC61B7114AD1BD2B7BD302FEA2F6"><enum>201.</enum><header>Contracting preference for Puerto Rico businesses</header><text display-inline="no-display-inline">Section 15(x) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/644">15 U.S.C. 644(x)</external-xref>) is amended—</text> <paragraph id="H5DD6A1D199D0415AA7AA207C55606F91"><enum>(1)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Small Business Credit</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Contracting</header-in-text></quote>;</text> </paragraph> <paragraph id="H87755E80A268408D91B5D83799A7B1AE"><enum>(2)</enum><text>by redesignating paragraph (2) as subparagraph (B) (and conforming the margins accordingly);</text> </paragraph> <paragraph id="H6D8A1BB1269746E2B61C86653187FB28"><enum>(3)</enum><text>by striking <quote>If an agency</quote> and inserting:</text> <quoted-block display-inline="no-display-inline" id="H2203408C4EBD4D57BF44C54E7E137DFE" style="OLC"> <subparagraph id="HDC4D5BDC6727473A83AAF88BB4940C32"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">If an agency</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph> <paragraph id="HE3A63612E90C44D2BCC396891FC3AF14"><enum>(4)</enum><text>in subparagraph (B), as so redesignated—</text> <subparagraph id="H19C0A19D57AB443F8D675A082F5F3C61"><enum>(A)</enum><text>by striking <quote>paragraph (1)</quote> and inserting <quote>subparagraph (A)</quote>; and</text> </subparagraph> <subparagraph id="H760ABB0C4CB24F7E95D85E7B2F382DB6"><enum>(B)</enum><text>by striking <quote>paragraph</quote> and inserting <quote>subparagraph</quote>; and</text> </subparagraph></paragraph> <paragraph id="HA584DCE72316437082379362EC650E73"><enum>(5)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HFD411C82A97F46179EBD76CCBE2C37DB" style="OLC"> <paragraph commented="no" id="H6F20E16EA8464E7CAABCD44671E60562"><enum>(2)</enum><header>Contracting preference for Puerto Rico businesses</header><text display-inline="yes-display-inline">An agency shall provide a contracting preference for a Puerto Rico business during the period beginning on the date of enactment of this paragraph and ending on the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (<external-xref legal-doc="usc" parsable-cite="usc/48/2121">48 U.S.C. 2121</external-xref>) terminates. The preference under this paragraph shall take priority over any preference for purchasing from the procurement list established pursuant to section 8503 of title 41, United States Code, or the Federal Prison Industries catalog described under section 4124(d) of title 18, United States Code.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section> <enum>III</enum><header>Entrepreneurial Development</header> <section id="H803FA3CDB99A476A8A3652D80CEC8117" section-type="subsequent-section"><enum>301.</enum><header>Veteran Business Outreach Center in Puerto Rico</header> <subsection id="H23BC7AD2956A4169A7BCBCF45CB3F2DC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 32 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657b">15 U.S.C. 657b</external-xref>) is amended—</text> <paragraph id="HE767348A041F40708FBC49A534855E2E"><enum>(1)</enum><text>by redesignating subsection (f) as subsection (g); and</text> </paragraph> <paragraph id="H7C7800BC15334D2884335C13F4389C74"><enum>(2)</enum><text>by inserting after subsection (e) the following:</text> <quoted-block display-inline="no-display-inline" id="H99D31ADC78FA4D1DBEAA81210218EED7" style="OLC"> <subsection id="HF4F836041C6643088F6F3095877E1DC2"><enum>(f)</enum><header>Veteran Business Outreach Center in Puerto Rico</header><text display-inline="yes-display-inline">The Administrator shall partner with an organization to establish a Veteran Business Outreach Center in the Commonwealth of Puerto Rico to provide entrepreneurial development services to small business concerns owned and controlled by service-disabled veterans and small business concerns owned and controlled by veterans located in the Commonwealth of Puerto Rico. If the Administrator cannot partner with an organization, the Administrator shall use amounts appropriated to carry out this subsection to provide such services to veterans who own or are considering starting a Puerto Rico business.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection> <subsection id="HAD0A82D591FC4C31B908955FF6445728"><enum>(b)</enum><header>Prospective repeal</header><text display-inline="yes-display-inline">Subsection (a) shall be repealed, and the provisions of law amended by such subsection shall be restored as if such subsection had not been enacted, on the Oversight Board termination date.</text> </subsection></section> <section id="H3674F03B6EB74A6EA57BD218AA1E3825"><enum>302.</enum><header>FAST grant program for Puerto Rico</header> <subsection id="H827841FC41F54C48B6C230ED27F5EBFC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 34 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657d">15 U.S.C. 657d</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H4B41068FAE6B4C3384B35B871F580DEE" style="OLC"> <subsection id="H6119C5E2B4194A9A8FE5D4E363F0B051"><enum>(j)</enum><header>FAST grant program for Puerto Rico</header> <paragraph id="HA02AF2A13C7A4987879D270E7E2E8ED7"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Administrator shall establish a program that shall be part of the FAST program to make awards to, or enter into cooperative agreements with, a Puerto Rico business.</text> </paragraph> <paragraph id="H9B4495CDA30F424F8824E627BAE5AC12"><enum>(2)</enum><header>Technical assistance</header><text>If no applicant is selected to receive assistance under this subsection, the Administrator shall use amounts appropriated to carry out this subsection to provide business advice and counseling to a Puerto Rico business.</text> </paragraph> <paragraph id="H85FE84AA5E524DE99C9A15B7C09EAE0E"><enum>(3)</enum><header>Waiver of matching requirements</header><text display-inline="yes-display-inline">The Administrator may, upon application, waive the matching requirements under subsection (e)(2) for an applicant that receives an award or has in effect a cooperative agreement under this subsection.</text> </paragraph> <paragraph id="H1C1127E9267240A4B53EB513C160677E"><enum>(4)</enum><header>Funding</header><text>There is authorized to be appropriated $100,000 for fiscal year 2020, and each fiscal year thereafter, to carry out this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection> <subsection id="H78D2E0B5F23C408191C41995A2AA2B72"><enum>(b)</enum><header>Prospective repeal</header><text display-inline="yes-display-inline">Subsection (a) shall be repealed, and the provisions of law amended by such subsection shall be restored as if such subsection had not been enacted, on the Oversight Board termination date.</text> </subsection></section>