[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2060 Enrolled Bill (ENR)]

        S.2060

                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
 the twenty-fifth day of January, one thousand nine hundred and ninety-
                                  four


                                 An Act

  
 
  To amend the Small Business Act and the Small Business Investment Act 
of 1958, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Administration Reauthorization and Amendments Act of 1994''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title; table of contents.

                         TITLE I--AUTHORIZATIONS

Sec. 101. Authorizations.

                 TITLE II--FINANCIAL ASSISTANCE PROGRAMS

Sec. 201. Microloan financing pilot.
Sec. 202. Eligibility of Native American Tribal Governments to be 
          microloan intermediaries.
Sec. 203. Microloan program extension.
Sec. 204. Microloan program funding and State limitations.
Sec. 205. Distribution of intermediaries.
Sec. 206. Microloan intermediary loan limitation.
Sec. 207. Microloan technical assistance to nonborrowers.
Sec. 208. Microloan technical assistance grants for intermediaries 
          serving economically distressed areas.
Sec. 209. Loans to exporters.
Sec. 210. Working capital international trade loans.
Sec. 211. Guarantees on international trade loans.
Sec. 212. Accredited lenders program.
Sec. 213. Interest rate on certified development company loans.
Sec. 214. Certifications of eligibility for SBIC and SSBIC financing.
Sec. 215. Participating securities for smaller SBICs.
Sec. 216. Report on SBIC program.
Sec. 217. Premier Certified Lenders Program.

              TITLE III--SIZE STANDARDS AND BOND GUARANTEES

Sec. 301. Establishment of size standards.
Sec. 302. Pilot preferred surety bond guarantee program extension.
Sec. 303. Manufacturing contracts through manufacturing application and 
          education centers.
Sec. 304. Pilot program for very small business concerns.
Sec. 305. Handicapped workshop participation in small business set aside 
          contracts.

                TITLE IV--BUSINESS DEVELOPMENT ASSISTANCE

                     Subtitle A--General Provisions

Sec. 401. Sunset on cosponsored training.
Sec. 402. Small business development center program level.
Sec. 403. Federal contracts with small business development centers.
Sec. 404. Small business development center program examination and 
          certification.
Sec. 405. Central European small business development.
Sec. 406. Mobile resource center pilot program.
Sec. 407. Information concerning franchising.

            Subtitle B--Development of Woman-Owned Businesses

Sec. 411. Extension of authority for demonstration projects.
Sec. 412. Establishment of Office of Women's Business Ownership.
Sec. 413. Development of women's business enterprise.
Sec. 414. Transition reimbursement.
Sec. 415. Gift authority.
Sec. 416. Conforming amendment.

           TITLE V--RELIEF FROM DEBENTURE PREPAYMENT PENALTIES

Sec. 501. Short title.
Sec. 502. Intention of Congress.
Sec. 503. Prepayment of development company debentures.

                   TITLE VI--MISCELLANEOUS AMENDMENTS

Sec. 601. SBA interest payments to Treasury.
Sec. 602. Imposition of fees.
Sec. 603. Job creation and community benefit.
Sec. 604. Microloan program amendments.
Sec. 605. Technical clarification.
Sec. 606. Study and data base: guaranteed business loan program and 
          development company program.
Sec. 607. SBIR vendors.
Sec. 608. Program extension.
Sec. 609. Prohibition on the use of funds for individuals not lawfully 
          within the United States.
Sec. 610. Office of Advocacy employees.
Sec. 611. Prohibition on the provision of assistance.
Sec. 612. Certification of compliance with child support obligations.
Sec. 613. Advocacy study of paperwork and tax impact.

                        TITLE I--AUTHORIZATIONS

SEC. 101. AUTHORIZATIONS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended by striking subsections (k) (as added by section 405(3) of the 
Small Business Credit and Business Opportunity Enhancement Act of 1992) 
through (p) and inserting the following:
    ``(l) The following program levels are authorized for fiscal year 
1995:
        ``(1) For the programs authorized by this Act, the 
    Administration is authorized to make--
            ``(A) $45,000,000 in technical assistance grants as 
        provided in section 7(m); and
            ``(B) $130,000,000 in direct and immediate participation 
        loans, and of such sum, the Administration is authorized to 
        make--
                ``(i) not more than $10,000,000 in loans, as provided 
            in section 7(a)(10); and
                ``(ii) not more than $120,000,000 in loans, as provided 
            in section 7(m).
        ``(2) For the programs authorized by this Act, the 
    Administration is authorized to make $13,420,000,000 in deferred 
    participation loans and other financings. Of such sum, the 
    Administration is authorized to make--
            ``(A) $9,150,000,000 in general business loans as provided 
        in section 7(a);
            ``(B) $2,250,000,000 in financings as provided in section 
        7(a)(13) and section 504 of the Small Business Investment Act 
        of 1958;
            ``(C) $2,000,000,000 in loans as provided in section 
        7(a)(21); and
            ``(D) $20,000,000 in loans as provided in section 7(m).
        ``(3) For the programs authorized by title III of the Small 
    Business Investment Act of 1958, the Administration is authorized 
    to make--
            ``(A) $23,000,000 in purchases of preferred securities;
            ``(B) $244,000,000 in guarantees of debentures, of which 
        $44,000,000 is authorized in guarantees of debentures from 
        companies operating pursuant to section 301(d) of such Act; and
            ``(C) $400,000,000 in guarantees of participating 
        securities.
        ``(4) 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 $1,800,000,000, 
    of which not more than $600,000,000 may be in bonds approved 
    pursuant to the provisions of section 411(a)(3) of such Act.
        ``(5) The Administration is authorized to make grants or enter 
    into cooperative agreements--
            ``(A) for the Service Corps of Retired Executives program 
        authorized by section 8(b)(1), $3,500,000;
            ``(B) for the Small Business Institute program authorized 
        by section 8(b)(1), $3,000,000; and
            ``(C) for activities of small business development centers 
        pursuant to section 21(c)(3)(G), $5,000,000, to remain 
        available until expended.
    ``(m)(1) There are authorized to be appropriated to the 
Administration for fiscal year 1995 such sums as may be necessary to 
carry out the provisions of this Act, including administrative expenses 
and necessary loan capital for disaster loans pursuant to section 7(b), 
and to carry out the provisions of the Small Business Investment Act of 
1958, including salaries and expenses of the Administration.
    ``(2) Notwithstanding paragraph (1), for fiscal year 1995--
        ``(A) no funds are authorized to be provided to carry out 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 
    subsection (l)(2)(A) is fully funded; and
        ``(B) the Administration may not approve loans on behalf of the 
    Administration or on behalf of any other 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 
    $1,250,000.
    ``(n) The following program levels are authorized for fiscal year 
1996:
        ``(1) For the programs authorized by this Act, the 
    Administration is authorized to make--
            ``(A) $65,000,000 in technical assistance grants as 
        provided in section 7(m); and
            ``(B) $191,000,000 in direct and immediate participation 
        loans, and of such sum, the Administration is authorized to 
        make--
                ``(i) $11,000,000 in loans, as provided in section 
            7(a)(10); and
                ``(ii) $180,000,000 in loans, as provided in section 
            7(m).
        ``(2) For the programs authorized by this Act, the 
    Administration is authorized to make $15,680,000,000 in deferred 
    participation loans and other financings. Of such sum, the 
    Administration is authorized to make--
            ``(A) $10,500,000,000 in general business loans as provided 
        in section 7(a);
            ``(B) $2,650,000,000 in financings as provided in section 
        7(a)(13) and section 504 of the Small Business Investment Act 
        of 1958;
            ``(C) $2,500,000,000 in loans as provided in section 
        7(a)(21); and
            ``(D) $30,000,000 in loans as provided in section 7(m).
        ``(3) For the programs authorized by title III of the Small 
    Business Investment Act of 1958, the Administration is authorized 
    to make--
            ``(A) $24,000,000 in purchases of preferred securities;
            ``(B) $256,000,000 in guarantees of debentures, of which 
        $46,000,000 is authorized in guarantees of debentures from 
        companies operating pursuant to section 301(d) of such Act; and
            ``(C) $650,000,000 in guarantees of participating 
        securities.
        ``(4) 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 $1,900,000,000, 
    of which not more than $625,000,000 may be in bonds approved 
    pursuant to the provisions of section 411(a)(3) of such Act.
        ``(5) The Administration is authorized to make grants or enter 
    cooperative agreements--
            ``(A) for the Service Corps of Retired Executives program 
        authorized by section 8(b)(1), $3,700,000;
            ``(B) for the Small Business Institute program authorized 
        by section 8(b)(1), $3,200,000; and
            ``(C) for activities of small business development centers 
        pursuant to section 21(c)(3)(G), not to exceed $10,000,000, to 
        remain available until expended.
    ``(o)(1) There are authorized to be appropriated to the 
Administration for fiscal year 1996 such sums as may be necessary to 
carry out the provisions of this Act, including administrative expenses 
and necessary loan capital for disaster loans pursuant to section 7(b), 
and to carry out the provisions of the Small Business Investment Act of 
1958, including salaries and expenses of the Administration.
    ``(2) Notwithstanding paragraph (1), for fiscal year 1996--
        ``(A) no funds are authorized to be provided to carry out 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 
    subsection (n)(2)(A) is fully funded; and
        ``(B) the Administration may not approve loans on behalf of the 
    Administration or on behalf of any other 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 
    $1,250,000.
    ``(p) The following program levels are authorized for fiscal year 
1997:
        ``(1) For the programs authorized by this Act, the 
    Administration is authorized to make--
            ``(A) $98,000,000 in technical assistance grants as 
        provided in section 7(m); and
            ``(B) $262,000,000 in direct and immediate participation 
        loans, and of such sum, the Administration is authorized to 
        make--
                ``(i) $12,000,000 in loans, as provided in section 
            7(a)(10); and
                ``(ii) $250,000,000 in loans, as provided in section 
            7(m).
        ``(2) For the programs authorized by this Act, the 
    Administration is authorized to make $19,390,000,000 in deferred 
    participation loans and other financings. Of such sum, the 
    Administration is authorized to make--
            ``(A) $13,100,000,000 in general business loans as provided 
        in section 7(a);
            ``(B) $3,250,000,000 in financings as provided in section 
        7(a)(13) and section 504 of the Small Business Investment Act 
        of 1958;
            ``(C) $3,000,000,000 in loans as provided in section 
        7(a)(21); and
            ``(D) $40,000,000 in loans as provided in section 7(m).
        ``(3) For the programs authorized by title III of the Small 
    Business Investment Act of 1958, the Administration is authorized 
    to make--
            ``(A) $25,000,000 in purchases of preferred securities;
            ``(B) $268,000,000 in guarantees of debentures, of which 
        $48,000,000 is authorized in guarantees of debentures from 
        companies operating pursuant to section 301(d) of such Act; and
            ``(C) $900,000,000 in guarantees of participating 
        securities.
        ``(4) 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 $2,000,000,000, 
    of which not more than $650,000,000 may be in bonds approved 
    pursuant to the provisions of section 411(a)(3) of such Act.
        ``(5) The Administration is authorized to make grants or enter 
    cooperative agreements--
            ``(A) for the Service Corps of Retired Executives program 
        authorized by section 8(b)(1), $3,900,000;
            ``(B) for the Small Business Institute program authorized 
        by section 8(b)(1), $3,400,000; and
            ``(C) for activities of small business development centers 
        pursuant to section 21(c)(3)(G), not to exceed $15,000,000, to 
        remain available until expended.
    ``(q)(1) There are authorized to be appropriated to the 
Administration for fiscal year 1997 such sums as may be necessary to 
carry out the provisions of this Act, including administrative expenses 
and necessary loan capital for disaster loans pursuant to section 7(b), 
and to carry out the provisions of the Small Business Investment Act of 
1958, including salaries and expenses of the Administration.
    ``(2) Notwithstanding paragraph (1), for fiscal year 1997--
        ``(A) no funds are authorized to be provided to carry out 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 
    subsection (p)(2)(A) is fully funded; and
        ``(B) the Administration may not approve loans on behalf of the 
    Administration or on behalf of any other 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 
    $1,250,000.''.

                TITLE II--FINANCIAL ASSISTANCE PROGRAMS

SEC. 201. MICROLOAN FINANCING PILOT.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is 
amended by adding at the end the following new paragraph:
        ``(12) Deferred participation loan pilot.--In lieu of making 
    direct loans to intermediaries as authorized in paragraph (1)(B), 
    during fiscal years 1995 through 1997, 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.''.

SEC. 202. ELIGIBILITY OF NATIVE AMERICAN TRIBAL GOVERNMENTS TO BE 
              MICROLOAN INTERMEDIARIES.

    Section 7(m)(11)(A) of the Small Business Act (15 U.S.C. 
636(m)(11)(A)) is amended--
        (1) in clause (iii), by striking ``or'' at the end;
        (2) in clause (iv), by striking the comma at the end and 
    inserting ``; or''; and
        (3) by adding at the end the following new clause:
                ``(v) an agency of or nonprofit entity established by a 
            Native American Tribal Government,''.

SEC. 203. MICROLOAN PROGRAM EXTENSION.

    Section 609(j) of Public Law 102-140 (105 Stat. 831) is amended by 
striking ``5 years after the date of enactment of this Act'', and 
inserting ``on October 1, 1997''.

SEC. 204. MICROLOAN PROGRAM FUNDING AND STATE LIMITATIONS.

    Section 7(m)(7) of the Small Business Act (15 U.S.C. 636(m)(7)) is 
amended to read as follows:
        ``(7) Program funding for microloans.--
            ``(A) Number of participants.--During the demonstration 
        program authorized by this subsection, the Administration may 
        fund, on a competitive basis, not more than 200 microloan 
        programs.
            ``(B) State limitations.--During any fiscal year, a State 
        shall not receive new loan funds from the Administration that 
        exceed 125 percent of the State's pro rata share of the 
        microloan program authorization during such fiscal year, such 
        share to be based on the population of the State, as compared 
        to the total population of the United States.''.

SEC. 205. DISTRIBUTION OF INTERMEDIARIES.

    Section 7(m)(8) of the Small Business Act (15 U.S.C. 636(m)(8)) is 
amended to read as follows:
        ``(8) Equitable distribution of intermediaries.--In approving 
    microloan program applicants under this subsection, the 
    Administration shall select 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.''.

SEC. 206. MICROLOAN INTERMEDIARY LOAN LIMITATION.

    Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 
636(m)(3)(C)) is amended by striking ``$1,250,000'' and inserting ``$2, 
500,000''.

SEC. 207. MICROLOAN TECHNICAL ASSISTANCE TO NONBORROWERS.

    Section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)(4)) is 
amended by adding at the end the following new subparagraph:
            ``(E) Assistance to certain small business concerns.--Each 
        intermediary may expend an amount not to exceed 15 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.''.

SEC. 208. MICROLOAN TECHNICAL ASSISTANCE GRANTS FOR INTERMEDIARIES 
              SERVING ECONOMICALLY DISTRESSED AREAS.

    (a) Grant Eligibility.--Section 7(m)(4) of the Small Business Act 
(15 U.S.C. 636(m)(4)) is amended--
        (1) in subparagraph (B), by inserting ``except for a grant made 
    to an intermediary that provides not less than 50 percent of its 
    loans to small business concerns located in or owned by one or more 
    residents of an economically distressed area,'' after ``under 
    subparagraph (A),''; and
        (2) in subparagraph (C), by striking clause (i) and inserting 
    the following:
                ``(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 
                $7,500 during the period of the intermediary's 
                participation in the program.''.

    (b) Definition.--Section 7(m)(11) of the Small Business Act (15 
U.S.C. 636(m)(11)) is amended--
        (1) in subparagraph (C), by striking the period at the end and 
    inserting ``; and''; and
        (2) by adding at the end the following new subparagraph:
            ``(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.''.
    (c) Termination.--The amendments made by this section shall remain 
in effect during the period beginning on the date of enactment of this 
Act and ending on October 1, 1997.

SEC. 209. LOANS TO EXPORTERS.

    Section 7(a)(14)(A) of the Small Business Act (15 U.S.C. 
636(a)(14)(A)) is amended to read as follows:
        ``(14)(A) The Administration 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.''.

SEC. 210. WORKING CAPITAL INTERNATIONAL TRADE LOANS.

    Section 7(a)(3)(B) of the Small Business Act (15 U.S.C. 
636(a)(3)(B)) is amended to read as follows:
            ``(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 $1,250,000, of which not 
        more than $750,000 may be used for working capital, supplies, 
        or financings under section 7(a)(14) for export purposes; 
        and''.

SEC. 211. GUARANTEES ON INTERNATIONAL TRADE LOANS.

    Section 7(a)(2)(B)(iv) of the Small Business Act (15 U.S.C. 
636(a)(2)(B)(iv)) is amended to read as follows:
                ``(iv) not less than 85 percent nor more than 90 
            percent of the financing outstanding at the time of 
            disbursement if such financing is a loan under paragraph 
            (14) or (16).''.

SEC. 212. ACCREDITED LENDERS PROGRAM.

    (a) Establishment.--Title V of the Small Business Investment Act of 
1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the 
following new section:

``SEC. 507. ACCREDITED LENDERS PROGRAM.

    ``(a) Establishment.--The Administration is authorized to establish 
an Accredited Lenders Program for qualified State and local development 
companies that meet the requirements of subsection (b).
    ``(b) Requirements.--The Administration may designate a qualified 
State or local development company as an accredited lender if such 
company--
        ``(1) has been an active participant in the Development Company 
    Program authorized by sections 502, 503, and 504 for not less than 
    the preceding 12 months;
        ``(2) has well-trained, qualified personnel who are 
    knowledgeable in the Administration's lending policies and 
    procedures for such Development Company Program;
        ``(3) has the ability to process, close, and service financing 
    for plant and equipment under such Development Company Program;
        ``(4) has a loss rate on the company's debentures that is 
    reasonable and acceptable to the Administration;
        ``(5) has a history of submitting to the Administration 
    complete and accurate debenture guaranty application packages; and
        ``(6) has demonstrated the ability to serve small business 
    credit needs for financing plant and equipment through the 
    Development Company Program.
    ``(c) Expedited Processing of Loan Applications.--The 
Administration shall develop an expedited procedure for processing a 
loan application or servicing action submitted by a qualified State or 
local development company that has been designated as an accredited 
lender in accordance with subsection (b).
    ``(d) Suspension or Revocation of Designation.--
        ``(1) In general.--The designation of a qualified State or 
    local development company as an accredited lender may be suspended 
    or revoked if the Administration determines that--
            ``(A) the development company has not continued to meet the 
        criteria for eligibility under subsection (b); or
            ``(B) the development company has failed to adhere to the 
        Administration's rules and regulations or is violating any 
        other applicable provision of law.
        ``(2) Effect.--A suspension or revocation under paragraph (1) 
    shall not affect any outstanding debenture guarantee.
    ``(e) Definition.--For purposes of this section, the term 
`qualified State or local development company' has the same meaning as 
in section 503(e).''.
    (b) Regulations.--Not later than 120 days after the date of 
enactment of this Act, the Administration shall promulgate final 
regulations to carry out this section.
    (c) Report.--Not later than 1 year after the effective date of 
regulations promulgated under subsection (b), and biennially 
thereafter, the Administration shall report to the Committees on Small 
Business of the Senate and the House of Representatives on the 
implementation of this section. Such report shall include data on the 
number of development companies designated as accredited lenders, their 
debenture guarantee volume, their loss rates, the average processing 
time on their guarantee applications, and such other information as the 
Administration deems appropriate.

SEC. 213. INTEREST RATE ON CERTIFIED DEVELOPMENT COMPANY LOANS.

    Section 112(c) of the Small Business Administration Reauthorization 
and Amendment Act of 1988 (102 Stat. 2996) is amended--
        (1) in paragraph (1), by striking ``(1) In General.--Section 
    503'' and inserting ``Section 503''; and
        (2) by striking paragraph (2).

SEC. 214. CERTIFICATIONS OF ELIGIBILITY FOR SBIC AND SSBIC FINANCING.

    Section 308 of the Small Business Investment Act of 1958 (15 U.S.C. 
687) is amended by adding at the end the following new subsection:
    ``(h) Certifications of Eligibility.--
        ``(1) Certification by small business concern.--Prior to 
    receiving financial assistance from a company licensed pursuant to 
    subsection (c) or (d) of section 301, a small business concern 
    shall certify in writing that it meets the eligibility requirements 
    of the Small Business Investment Company Program or the Specialized 
    Small Business Investment Company Program, as applicable.
        ``(2) Certification by company.--Prior to providing financial 
    assistance to a small business concern under this Act, a company 
    licensed pursuant to subsection (c) or (d) of section 301 shall 
    certify in writing that it has reviewed the application for 
    assistance of the small business concern and that all documentation 
    and other information supports the eligibility of the applicant.
        ``(3) Retention of certifications.--Certificates made pursuant 
    to paragraphs (1) and (2) shall be retained by the company licensed 
    pursuant to subsection (c) or (d) of section 301 for the duration 
    of the financial assistance.''.

SEC. 215. PARTICIPATING SECURITIES FOR SMALLER SBICS.

    Section 303(g) of the Small Business Investment Act of 1958 (15 
U.S.C. 683(g)) is amended by adding at the end the following new 
paragraph:
        ``(13) Participating securities for smaller small business 
    investment companies.--
            ``(A) In general.--Subject to the provisions of 
        subparagraph (B), of the amount of the annual program level of 
        participating securities approved in appropriations Acts, 50 
        percent shall be reserved for funding small business investment 
        companies with private capital of not more than $20,000,000.
            ``(B) Exception.--During the last quarter of each fiscal 
        year, if the Administrator determines that there is a lack of 
        qualified applicants with private capital of not more than 
        $20,000,000, the Administrator may utilize all or any part of 
        the program level for securities reserved under subparagraph 
        (A) for qualified applicants with private capital of more than 
        $20,000,000.''.

SEC. 216. REPORT ON SBIC PROGRAM.

    Not later than May 15, 1995, the Small Business Administration 
shall submit to the Committees on Small Business of the House of 
Representatives and the Senate a comprehensive report on--
        (1) the status and disposition of all small business investment 
    companies participating in the Small Business Investment Company 
    Program under subsections (c) and (d) of section 301 of the Small 
    Business Investment Act of 1958, whether active or in liquidation;
        (2) a complete accounting of the assets in and the basis of the 
    portfolios of such companies;
        (3) the projected and actual loss rates for all portfolios in 
    liquidation or active; and
        (4) a detailed accounting of valuation of the Small Business 
    Investment Company Program's investments.

SEC. 217. PREMIER CERTIFIED LENDERS PROGRAM.

    (a) In General.--Title V of the Small Business Investment Act of 
1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the 
following new section:

``SEC. 508. PREMIER CERTIFIED LENDERS PROGRAM.

    ``(a) Establishment.--On a pilot program basis, the Administration 
may establish a Premier Certified Lenders Program for not more than 15 
certified development companies that meet the requirements of 
subsection (b).
    ``(b) Requirements.--
        ``(1) Application.--To be eligible to participate in the 
    Premier Certified Lenders Program established under subsection (a), 
    a certified development company shall prepare and submit to the 
    Administration an application at such time, in such manner, and 
    containing such information as the Administration may require.
        ``(2) Designation.--The Administration may designate a 
    certified development company as a premier certified lender if such 
    company--
            ``(A) has been an active participant in the accredited 
        lenders program during the 12-month period preceding the date 
        on which the company submits an application under paragraph 
        (1), except that, prior to January 1, 1996, the Administration 
        may waive this requirement if the company is qualified to 
        participate in the accredited lenders program;
            ``(B) has a history of submitting to the Administration 
        adequately analyzed debenture guarantee application packages; 
        and
            ``(C) agrees to assume and to reimburse the Administration 
        for 10 percent of any loss sustained by the Administration as a 
        result of default by the company in the payment of principal or 
        interest on a debenture issued by such company and guaranteed 
        by the Administration under this section.
    ``(c) Loss Reserve.--
        ``(1) Establishment.--A company designated as a premier 
    certified lender shall establish a loss reserve for financings 
    approved pursuant to this section.
        ``(2) Amount.--The amount of the loss reserve shall be based 
    upon the greater of--
            ``(A) the historic loss rate on debentures issued by such 
        company; or
            ``(B) 10 percent of the amount of the company's exposure as 
        determined under subsection (b)(2)(C).
        ``(3) Assets.--The loss reserve shall be comprised of 
    segregated assets of the company which shall be securitized in 
    favor of the Administration.
        ``(4) Contributions.--The company shall make contributions to 
    the loss reserve in the following amounts and at the following 
    intervals:
            ``(A) 50 percent when a debenture is closed.
            ``(B) 25 percent not later than 1 year after a debenture is 
        closed.
            ``(C) 25 percent not later than 2 years after a debenture 
        is closed.
    ``(d) Loan Approval Authority.--
        ``(1) In general.--Notwithstanding section 503(b)(6), and 
    subject to such terms and conditions as the Administration may 
    establish, the Administration may permit a company designated as a 
    premier certified lender under this section to approve loans that 
    are funded with the proceeds of a debenture issued by such company 
    and may authorize the guarantee of such debenture.
        ``(2) Scope of review.--The approval of a loan by a premier 
    certified lender shall be subject to final approval as to 
    eligibility of any guarantee by the Administration pursuant to 
    section 503(a), but such final approval shall not include review of 
    decisions by the lender involving creditworthiness, loan closing, 
    or compliance with legal requirements imposed by law or regulation.
    ``(e) Review.--After the issuance and sale of debentures under this 
section, the Administration, at intervals not greater than 12 months, 
shall review the financings made by each premier certified lender. The 
review shall include the lender's credit decisions and general 
compliance with the eligibility requirements for each financing 
approved under the program authorized under this section. The 
Administration shall consider the findings of the review in carrying 
out its responsibilities under subsection (f), but such review shall 
not affect any outstanding debenture guarantee.
    ``(f) Suspension or Revocation.--The designation of a State or 
local development company as a premier certified lender may be 
suspended or revoked if the Administration determines that the 
company--
        ``(1) has not continued to meet the criteria for eligibility 
    under subsection (b);
        ``(2) has not established or maintained the loss reserve 
    required under subsection (c);
        ``(3) is failing to adhere to the Administration's rules and 
    regulations; or
        ``(4) is violating any other applicable provision of law.
    ``(g) Effect of Suspension or Designation.--A suspension or 
revocation under subsection (f) shall not affect any outstanding 
debenture guarantee.
    ``(h) Regulations.--Not later than 180 days after the date of 
enactment of this section, the Administration shall promulgate 
regulations to carry out this section.
    ``(i) Report.--Not later than 1 year after the date of enactment of 
this Act, and annually thereafter, the Administration shall report to 
the Committees on Small Business of the Senate and the House of 
Representatives on the implementation of this section. Each report 
shall include--
        ``(1) the number of certified development companies designated 
    as premier certified lenders;
        ``(2) the debenture guarantee volume of such companies;
        ``(3) a comparison of the loss rate for premier certified 
    lenders to the loss rate for accredited and other lenders; and
        ``(4) such other information as the Administration deems 
    appropriate.''.
    (b) Repeal.--Effective on October 1, 1997, section 508 of the Small 
Business Investment Act of 1958, as added by subsection (a), is 
repealed.

             TITLE III--SIZE STANDARDS AND BOND GUARANTEES

SEC. 301. ESTABLISHMENT OF SIZE STANDARDS.

    Section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2)) is 
amended to read as follows:
        ``(2) Establishment of size standards.--
            ``(A) In general.--In addition to the criteria specified in 
        paragraph (1), the Administrator may specify detailed 
        definitions or standards by which a business concern may be 
        determined to be a small business concern for the purposes of 
        this Act or any other Act.
            ``(B) Additional criteria.--The standards described in 
        paragraph (1) may utilize number of employees, dollar volume of 
        business, net worth, net income, a combination thereof, or 
        other appropriate factors.
            ``(C) Requirements.--Unless specifically authorized by 
        statute, no Federal department or agency may prescribe a size 
        standard for categorizing a business concern as a small 
        business concern, unless such proposed size standard--
                ``(i) is proposed after an opportunity for public 
            notice and comment;
                ``(ii) provides for determining--

                    ``(I) the size of a manufacturing concern as 
                measured by the manufacturing concern's average 
                employment based upon employment during each of the 
                manufacturing concern's pay periods for the preceding 
                12 months;
                    ``(II) the size of a business concern providing 
                services on the basis of the annual average gross 
                receipts of the business concern over a period of not 
                less than 3 years;
                    ``(III) the size of other business concerns on the 
                basis of data over a period of not less than 3 years; 
                or
                    ``(IV) other appropriate factors; and

                ``(iii) is approved by the Administrator.''.

SEC. 302. PILOT PREFERRED SURETY BOND GUARANTEE PROGRAM EXTENSION.

    Section 207 of the Small Business Administration Reauthorization 
and Amendment Act of 1988 (15 U.S.C. 694b note) is amended by striking 
``September 30, 1994'' and inserting ``September 30, 1995''.

SEC. 303. MANUFACTURING CONTRACTS THROUGH MANUFACTURING APPLICATION AND 
              EDUCATION CENTERS.

    (a) In General.--The Small Business Administration shall promote 
the award of Federal manufacturing contracts to small business concerns 
that participate in manufacturing application and education centers by 
working with the Department of Commerce and other agencies to identify 
components and subsystems that are both critical and currently foreign-
sourced.
    (b) Qualifications.--In order to qualify as a manufacturing 
application and education center under this section, an entity shall 
have the capacity to assist small business concerns in a shared-use 
production environment and to offer the following services:
        (1) Technology demonstration.
        (2) Technology education.
        (3) Technology application support.
        (4) Technology advancement support.
    (c) Inapplicability of Certain Requirements.--The requirements of 
section 15(o)(1)(B) of the Small Business Act shall not apply with 
respect to any manufacturing contract carried out by a small business 
concern in conjunction with a manufacturing application and education 
center under this section.
    (d) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the Small Business 
Administration shall promulgate final regulations to carry out this 
section.
    (e) Termination of Authority.--The authority of the Small Business 
Administration under this section shall terminate on September 30, 
1997.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Small Business Administration, such sums as may be 
necessary to carry out this section.

SEC. 304. PILOT PROGRAM FOR VERY SMALL BUSINESS CONCERNS.

    (a) Establishment.--The Administrator shall establish and carry out 
a pilot program in accordance with the requirements of this section to 
provide improved access to Federal contract opportunities for very 
small business concerns.
    (b) Procurement Contracts.--
        (1) In general.--In carrying out subsection (a), the 
    Administrator shall identify procurement contracts of Federal 
    agencies for award under the program.
        (2) Contract awards.--Under the program established pursuant to 
    this section, the award of a procurement contract of a Federal 
    agency identified by the Administration pursuant to paragraph (1) 
    shall be made by the agency to an eligible program participant 
    selected, and determined to be responsible, by the agency.
        (3) Competition.--All contract opportunities offered for award 
    under the program shall be awarded on the basis of competition 
    among eligible very small business concerns.
    (c) Eligibility.--Only a very small business concern shall be 
eligible to compete for a contract to be awarded under the program. A 
contracting officer may rely in good faith on a written certification 
that a small business concern is a very small business concern.
    (d) Delegation of Authority.--The authority of the Administrator 
under subsections (b)(1) and (c) shall be delegated to not less than 5 
and not more than 10 districts of the Administration to promote the 
award of contracts that can be performed by very small business 
concerns.
    (e) Financial Assistance.--In order to assist very small business 
concerns receiving contract awards under the program, the Administrator 
shall establish a preauthorization program for such concerns for the 
purpose of receiving financial assistance under section 7(a) of the 
Small Business Act.
    (f) Attainment of Contract Goals.--All contract awards made under 
the program shall be counted toward the attainment of the goals 
specified in section 15(g) of the Small Business Act.
    (g) Regulations.--The Administrator shall--
        (1) issue proposed regulations to carry out this section not 
    later than 180 days after the date of enactment of this Act; and
        (2) issue final regulations to carry out this section not later 
    than 270 days after the date of enactment of this Act.
    (h) Report to Congress.--Not later than April 30, 1997, the 
Administrator shall transmit to the Congress a report on the results of 
the program, together with such recommendations as the Administrator 
deems appropriate.
    (i) Program Term.--Implementation of the program shall begin not 
later than August 30, 1995. The program authorized by this section 
shall expire on September 30, 1998.
    (j) Definitions.--For purposes of this section, the following 
definitions shall apply:
        (1) Administration.--The term ``Administration'' means the 
    Small Business Administration.
        (2) Administrator.--The term ``Administrator'' means the 
    Administrator of the Small Business Administration.
        (3) Program.--The term ``program'' means a program established 
    pursuant to subsection (a).
        (4) Very small business concern.--The term ``very small 
    business concern'' means a small business concern that--
            (A) has not more than 15 employees; and
            (B) has average annual receipts that total not more than 
        $1,000,000.

SEC. 305. HANDICAPPED WORKSHOP PARTICIPATION IN SMALL BUSINESS SET 
              ASIDE CONTRACTS.

    Section 15(c) of the Small Business Act (15 U.S.C. 644(c)) is 
amended--
        (1) by amending paragraph (2)(A) to read as follows:
    ``(2)(A) During fiscal year 1995, public or private organizations 
for the handicapped shall be eligible to participate in programs 
authorized under this section in an aggregate amount not to exceed 
$40,000,000.''; and
        (2) by adding at the end the following new paragraph:
    ``(7) Agencies awarding one or more contracts to such an 
organization pursuant to the provisions of this subsection may use 
multiyear contracts, if appropriate.''.

               TITLE IV--BUSINESS DEVELOPMENT ASSISTANCE
                     Subtitle A--General Provisions

SEC. 401. SUNSET ON COSPONSORED TRAINING.

    (a) In General.--
        (1) Repeal.--The amendments made by section 5(a) of Small 
    Business Computer Security and Education Act of 1984 (15 U.S.C. 633 
    note) are hereby repealed.
        (2) Effective date.--Paragraph (1) shall take effect on 
    September 30, 1997.
    (b) Conforming Amendment.--Section 7(b) of the Small Business 
Computer Security and Education Act of 1984 (15 U.S.C. 633 note) is 
amended in the second sentence by striking ``and the amendments made to 
section 8(b)(1)(A) of the Small Business Act by section 5(a)(2) of this 
Act are'' and inserting ``is''.

SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM LEVEL.

    Section 21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) is 
amended to read as follows:
    ``(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) National program.--
            ``(i) In general.--Except as provided in clause (ii), no 
        State receiving funds under this section shall receive a grant 
        that exceeds--
                ``(I) for fiscal year 1995, the sum of such State's pro 
            rata share of a national program based upon the population 
            of the State as compared to the total population in the 
            United States, and $125,000; or
                ``(II) in each succeeding fiscal year, the sum of such 
            State's pro rata share of a national program based upon the 
            population of the State as compared to the total population 
            in the United States, and $200,000.
            ``(ii) Exception.--Grants provided to a small business 
        development center by the Administration or another agency to 
        carry out the provisions of subsection (c)(3)(G) shall not be 
        included in the calculation of maximum funding of a small 
        business development center.
            ``(iii) Amount.--The amount of the national program shall 
        be--
                ``(I) $70,000,000 through September 30, 1996;
                ``(II) $77,500,000 from October 1, 1996 through 
            September 30, 1997; and
                ``(III) $85,000,000 beginning October 1, 1997.
        The amount for which a small business development center is 
        eligible under this paragraph shall be based upon the amount of 
        the national program in effect as of the date for commencement 
        of performance of the small business development center's 
        grant.''.

SEC. 403. FEDERAL CONTRACTS WITH SMALL BUSINESS DEVELOPMENT CENTERS.

    Section 21(a)(5) of the Small Business Act (15 U.S.C. 648(a)(5)) is 
amended to read as follows:
    ``(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).''.

SEC. 404. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM EXAMINATION AND 
              CERTIFICATION.

    Section 21(k) of the Small Business Act (15 U.S.C. 648(k)) is 
amended to read as follows:
    ``(k) Program Examination and Certification.--
        ``(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) Certification.--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 certification program.
        ``(3) Extension or renewal of cooperative agreements.--In 
    extending or renewing a cooperative agreement of a small business 
    development center, the Administration shall consider the results 
    of the examination and certification program conducted pursuant to 
    paragraphs (1) and (2).''.

SEC. 405. CENTRAL EUROPEAN SMALL BUSINESS DEVELOPMENT.

    Section 25(i) of the Small Business Act (15 U.S.C. 652(i)) is 
amended by striking ``and $2,000,000 for each of fiscal years 1993 and 
1994'' and inserting ``, $2,000,000 for each of fiscal years 1993 and 
1994, and $1,000,000 for fiscal year 1995''.

SEC. 406. MOBILE RESOURCE CENTER PILOT PROGRAM.

    (a) Establishment.--The Administrator of the Small Business 
Administration may establish and carry out in each of fiscal years 
1995, 1996, and 1997 a mobile resource pilot program (hereafter in this 
section referred to as the ``program'') in accordance with the 
requirements of this section.
    (b) Mobile Resource Center Vehicles.--Under the program, the 
Administration may use mobile resource center vehicles to provide 
technical assistance, information, and other services available from 
the Small Business Administration to traditionally underserved 
populations. Two of such vehicles should be utilized in rural areas and 
2 of such vehicles should be utilized in urban areas.
    (c) Report to Congress.--If the Administrator conducts the program 
authorized in this section, the Administrator shall, not later than 
December 31, 1996, transmit to the Congress a report containing the 
results of such program, together with recommendations for appropriate 
legislative and administrative action.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $900,000 for each of fiscal 
years 1995, 1996, and 1997, such sums to remain available until 
expended. Of such sums--
        (1) $800,000 may be made available for the purchase or lease of 
    mobile resource center vehicles and operating expenses; and
        (2) $100,000 may be made available for studies, startup 
    expenses, and other administrative expenses.

SEC. 407. INFORMATION CONCERNING FRANCHISING.

    Section 8(b)(1)(A) of the Small Business Act (15 U.S.C. 
637(b)(1)(A)) is amended by inserting ``including information on the 
benefits and risks of franchising,'' after ``small-business 
enterprises,''.

           Subtitle B--Development of Woman-Owned Businesses

SEC. 411. EXTENSION OF AUTHORITY FOR DEMONSTRATION PROJECTS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
        (1) by redesignating section 28 (as added by section 2 of the 
    Women's Business Development Act of 1991) as section 29; and
        (2) in section 29(g), as redesignated, by striking ``1995'' and 
    inserting ``1997''.

SEC. 412. ESTABLISHMENT OF OFFICE OF WOMEN'S BUSINESS OWNERSHIP.

    Section 29 of the Small Business Act (15 U.S.C. 656), as 
redesignated by section 411 of this Act, is amended by adding at the 
end the following new subsection:
    ``(h) Office of Women's Business Ownership.--There is hereby 
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 such term is defined in section 408 of the Women's 
Business Ownership Act of 1988. The Office of Women's Business 
Ownership shall be administered by an Assistant Administrator, who 
shall be appointed by the Administrator.''.

SEC. 413. DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISE.

    Title IV of the Women's Business Ownership Act of 1988 (15 U.S.C. 
631 note) is amended to read as follows:

         ``TITLE IV--DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISE

``SEC. 401. ESTABLISHMENT OF THE INTERAGENCY COMMITTEE.

    ``There is established an interagency committee to be known as the 
Interagency Committee on Women's Business Enterprise.

``SEC. 402. DUTIES OF THE INTERAGENCY COMMITTEE.

    ``(a) In General.--The Interagency Committee shall--
        ``(1) monitor, coordinate, and promote the plans, programs, and 
    operations of the departments and agencies of the Federal 
    Government that may contribute to the establishment and growth of 
    women's business enterprise;
        ``(2) develop and promote new public sector initiatives, 
    policies, programs, and plans designed to foster women's business 
    enterprise;
        ``(3) review, monitor, and coordinate plans and programs, 
    developed in the public sector, which affect the ability of women-
    owned businesses to obtain capital and credit;
        ``(4) promote and assist, as appropriate, in the development of 
    surveys of women-owned business; and
        ``(5) design a comprehensive plan for a joint public-private 
    sector effort to facilitate growth and development of women's 
    business enterprise, which plan shall, not later than 1 year after 
    the effective date of the Small Business Administration 
    Reauthorization and Amendments Act of 1994, be submitted to the 
    President for review.
    ``(b) Meetings.--The Interagency Committee shall meet not less than 
biannually at such times as the Interagency Committee determines to be 
necessary to perform the duties under subsection (a). A majority of the 
members of the Committee shall constitute a quorum for the approval of 
recommendations or reports issued pursuant to this section.
    ``(c) Interaction With Council.--In performing its duties under 
subsection (a), the Interagency Committee shall consult with the 
Council. The Interagency Committee may meet jointly with the Council at 
the discretion of the chairperson of the Interagency Committee and the 
chairperson of the Council, but not less frequently than twice 
annually. The chairperson of the Interagency Committee shall serve as 
chairperson of any joint meetings of the Interagency Committee and the 
Council.

``SEC. 403. MEMBERSHIP OF THE INTERAGENCY COMMITTEE.

    ``(a) In General.--
        ``(1) Participants.--The Interagency Committee shall be 
    composed of 1 representative from each of the following:
            ``(A) The Department of Commerce.
            ``(B) The Department of Defense.
            ``(C) The Department of Health and Human Services.
            ``(D) The Department of Labor.
            ``(E) The Small Business Administration.
            ``(F) The Department of Transportation.
            ``(G) The Department of the Treasury.
            ``(H) The General Services Administration.
            ``(I) The Board of Governors of the Federal Reserve.
            ``(J) The Executive staff of the President engaged in 
        policymaking activities.
        ``(2) Appointments.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the head of each department and agency listed in paragraph (1) 
        shall, not later than 45 days after the date of enactment of 
        the Small Business Administration Reauthorization and 
        Amendments Act of 1994, designate a representative who shall be 
        a policymaking official within the department or agency.
            ``(B) Small business administration.--With respect to the 
        Small Business Administration, the representative shall be the 
        Assistant Administrator of the Office of Women's Business 
        Ownership, who also shall serve as the vice chairperson of the 
        Interagency Committee.
        ``(3) Other participation.--Other representatives of the 
    Federal Government not listed in paragraph (1) may participate in 
    the meetings and functions of the Interagency Committee on a 
    temporary basis as needed to carry out specific Interagency 
    Committee goals.
    ``(b) Appointment of Chairperson.--Not later than 45 days after 
enactment of the Small Business Administration Reauthorization and 
Amendments Act of 1994, the President, in consultation with the 
Administrator of the Small Business Administration, shall appoint 1 of 
the members of the Interagency Committee to serve as chairperson.
    ``(c) Noncompensation.--The members of the Interagency Committee 
shall serve without additional pay for such membership.
    ``(d) Detail of Federal Employees.--Upon request by the chairperson 
of the Interagency Committee, the head of any Federal department or 
agency may detail any of the personnel of such agency to assist the 
Interagency Committee in carrying out its duties under this title 
without regard to section 3341 of title 5, United States Code.

``SEC. 404. REPORTS FROM THE INTERAGENCY COMMITTEE.

    ``Not later than September 30, 1995, and annually thereafter, the 
Interagency Committee shall transmit to the President and to the 
Committees on Small Business of the Senate and the House of 
Representatives, a report containing--
        ``(1) any recommendations of the Council and any comments of 
    the Interagency Committee thereon;
        ``(2) a detailed description of the activities of the 
    Interagency Committee;
        ``(3) the findings and conclusions of the Interagency 
    Committee; and
        ``(4) the Interagency Committee's recommendations for such 
    legislation and administrative actions as the Interagency Committee 
    considers appropriate to promote the development of small business 
    concerns owned and controlled by women.

``SEC. 405. ESTABLISHMENT OF THE NATIONAL WOMEN'S BUSINESS COUNCIL.

    ``There is established a council to be known as the National 
Women's Business Council, which shall serve as an independent source of 
advice and policy recommendations to the Interagency Committee, to the 
Administrator through the Assistant Administrator of the Office of 
Women's Business Ownership, to the Congress, and to the President.

``SEC. 406. DUTIES OF THE COUNCIL.

    ``(a) In General.--The Council shall advise and consult with the 
Interagency Committee on matters relating to the activities, functions, 
and policies of the Interagency Committee, as provided in this title. 
The Council shall meet jointly with the Interagency Committee at the 
discretion of the chairperson of the Council and the chairperson of the 
Interagency Committee, but not less than biannually.
    ``(b) Meetings.--The Council shall meet separately at such times as 
the Council deems necessary. A majority of the members of the Council 
shall constitute a quorum for the approval of recommendations or 
reports issued pursuant to this section.
    ``(c) Recommendations.--The Council shall make annual 
recommendations for consideration by the Interagency Committee. The 
Council shall also provide reports and make such other recommendations 
as it deems appropriate to the Interagency Committee, to the President, 
to the Administrator, and to the Committees on Small Business of the 
Senate and the House of Representatives.
    ``(d) Other Duties.--The Council shall--
        ``(1) review, coordinate, and monitor plans and programs 
    developed in the public and private sectors, which affect the 
    ability of women-owned business enterprises to obtain capital and 
    credit;
        ``(2) promote and assist in the development of a women's 
    business census and other surveys of women-owned businesses;
        ``(3) monitor and promote the plans, programs, and operations 
    of the departments and agencies of the Federal Government which may 
    contribute to the establishment and growth of women's business 
    enterprise;
        ``(4) develop and promote new initiatives, policies, programs, 
    and plans designed to foster women's business enterprise; and
        ``(5) advise and consult with the Interagency Committee in the 
    design of a comprehensive plan for a joint public-private sector 
    effort to facilitate growth and development of women's business 
    enterprise.

``SEC. 407. MEMBERSHIP OF THE COUNCIL.

    ``(a) Chairperson.--Not later than 45 days after the date of 
enactment of the Small Business Administration Reauthorization and 
Amendments Act of 1994, the President shall appoint an individual to 
serve as chairperson of the Council, in consultation with the 
Administrator. The chairperson of the Council shall be a prominent 
business woman who is qualified to head the Council by virtue of her 
education, training, and experience.
    ``(b) Other Members.--Not later than 60 days after the date of 
enactment of the Small Business Administration Reauthorization and 
Amendments Act of 1994, the Administrator shall appoint, in 
consultation with the Assistant Administrator of the Office of Women's 
Business Ownership and the chairperson of the Council appointed under 
subsection (a), 9 members of the Council, of whom--
        ``(1) 2 shall be--
            ``(A) owners of small businesses, as such term is defined 
        in section 3 of the Small Business Act; and
            ``(B) members of the same political party as the President;
        ``(2) 2 shall--
            ``(A) be owners of small businesses, as such term is 
        defined in section 3 of the Small Business Act; and
            ``(B) not be members of the same political party as the 
        President; and
        ``(3) 5 shall be representatives of national women's business 
    organizations.
    ``(c) Diversity.--In appointing members of the Council, the 
Administrator shall, to the extent possible, ensure that the members 
appointed reflect geographic, racial, economic, and sectoral diversity.
    ``(d) Service Term.--The term of service of the members of the 
Council shall be 3 years.
    ``(e) Other Federal Service.--If any member of the Council 
subsequently becomes an officer or employee of the Federal Government 
or of the Congress, such individual may continue as a member of the 
Council for not longer than the 30-day period beginning on the date on 
which such individual becomes such an officer or employee.
    ``(f) Vacancies.--A vacancy on the Council shall, not later than 30 
days after the date on which the vacancy occurs, be filled in the same 
manner in which the original appointment was made.
    ``(g) Reimbursements.--Members of the Council shall serve without 
pay for such membership, except that members shall be entitled to 
reimbursement for travel, subsistence, and other necessary expenses 
incurred by them in carrying out the functions of the Council, in the 
same manner as persons serving on advisory boards pursuant to section 
8(b) of the Small Business Act.
    ``(h) Executive Director.--Not later than 60 days after the date of 
enactment of the Small Business Administration Reauthorization Act of 
1994, the Administrator, in consultation with the chairperson of the 
Council, shall appoint an executive director of the Council. Upon the 
recommendation by the executive director, the chairperson of the 
Council may appoint and fix the pay of 4 additional employees of the 
Council, at a rate of pay not to exceed the maximum rate of pay payable 
for a position at GS-15 of the General Schedule. All such appointments 
shall be subject to the appropriation of funds.
    ``(i) Rates of Pay.--The executive director and staff of the 
Council may be appointed without regard to the provisions of title 5, 
United States Code, governing appointments in the competitive service, 
and except as provided in subsection (e), may be paid without regard to 
the provisions of chapter 51 and subchapter III of chapter 53 of such 
title relating to classification and General Schedule pay rates, except 
that the executive director may not receive pay in excess of the annual 
rate of basic pay payable for a position at ES-3 of the Senior 
Executive Pay Schedule under section 5832 of title 5, United States 
Code.

``SEC. 408. DEFINITIONS.

    ``For purposes of this title--
        ``(1) the term `Administration' means the Small Business 
    Administration;
        ``(2) the term `Administrator' means the Administrator of the 
    Small Business Administration;
        ``(3) the term `control' means exercising the power to make 
    policy decisions concerning a business;
        ``(4) the term `Council' means the National Women's Business 
    Council, established under section 405;
        ``(5) the term `Interagency Committee' means the Interagency 
    Committee on Women's Business Enterprise, established under section 
    401;
        ``(6) the term `operate' means being actively involved in the 
    day-to-day management of a business;
        ``(7) the term `women's business enterprise' means--
            ``(A) a business or businesses owned by a woman or a group 
        of women; or
            ``(B) the establishment, maintenance, or development of a 
        business or businesses by a woman or a group of women; and
        ``(8) the term `women-owned business' means a small business 
    which a woman or a group of women--
            ``(A) control and operate; and
            ``(B) own not less than 51 percent of the business.

``SEC. 409. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for each of fiscal years 
1995 through 1997, to carry out this title, $350,000.''.

SEC. 414. TRANSITION REIMBURSEMENT.

    (a) In General.--Subject to the limitation contained in subsection 
(b), in order to provide continuity in the development of women-owned 
business, the Administration may approve reasonable amounts made 
available to carry out title IV of the Women's Business Ownership Act 
of 1988 to be used to pay the salaries, if any, and expenses of the 
members and staff of the National Women's Business Council that are 
appointed on or before the date of enactment of this Act.
    (b) Time Period.--No payments shall be made under subsection (a) 
after the expiration of the 90-day period beginning on the date of 
enactment of this Act.

SEC. 415. GIFT AUTHORITY.

    Section 8(b)(1)(G) of the Small Business Act (15 U.S.C. 
637(b)(1)(G)) is amended by striking ``section 8(b)(1) of this Act'' 
and by inserting ``this Act and to carry out the activities authorized 
by title IV of the Women's Business Ownership Act of 1988''.

SEC. 416. CONFORMING AMENDMENT.

    The table of contents for the Women's Business Ownership Act of 
1988 (15 U.S.C. 631 note) is amended by striking the items relating to 
title IV and inserting the following:

         ``TITLE IV--DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISE

    ``Sec. 401.  Establishment of the Interagency Committee.
    ``Sec. 402.  Duties of the Interagency Committee.
    ``Sec. 403.  Membership of the Interagency Committee.
    ``Sec. 404.  Reports from the Interagency Committee.
    ``Sec. 405.  Establishment of the National Women's Business Council.
    ``Sec. 406.  Duties of the Council.
    ``Sec. 407.  Membership of the Council.
    ``Sec. 408.  Definitions.
    ``Sec. 409.  Authorization of Appropriations.''.

          TITLE V--RELIEF FROM DEBENTURE PREPAYMENT PENALTIES

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Small Business Prepayment Penalty 
Relief Act of 1994''.

SEC. 502. INTENTION OF CONGRESS.

    (a) In General.--The Small Business Administration shall fully 
utilize the $30,000,000 appropriated in Public Law 103-317 to reduce, 
in accordance with this title and the amendments made by this title, 
prepayment penalties imposed in connection with debentures issued 
under--
        (1) section 303 or 503 of the Small Business Investment Act of 
    1958, which have been purchased by the Federal Financing Bank; and
        (2) title III to companies operating under section 301(d) of 
    such Act, which have been purchased by the Small Business 
    Administration.
    (b) Equal Opportunity.--In order to provide an equal opportunity to 
participate in the program authorized under this title, the Small 
Business Administration shall afford each borrower or issuer of a 
debenture subject to this title, not less than 45 days to elect to 
participate and to provide an earnest money deposit. The Administration 
shall subsequently allow a period of not less than 4 months, during 
which those borrowers or issuers that elect to participate shall be 
allowed to complete the prepayment process.
    (c) Restrictions on Participation.--In no event shall the Small 
Business Administration--
        (1) allow any borrower or issuer to participate in the program 
    if the borrower or issuer fails to--
            (A) make a timely election and provide the deposit on a 
        timely basis; or
            (B) complete the prepayment process within the required 
        time; or
        (2) allow any borrower or issuer to participate in the program 
    at a percentage rate other than the rate finally determined to be 
    applicable to all other borrowers or issuers with similar terms of 
    years.

SEC. 503. PREPAYMENT OF DEVELOPMENT COMPANY DEBENTURES.

    Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 
et seq.), as amended by section 217, is amended by adding at the end 
the following new section:

``SEC. 509. PREPAYMENT OF DEVELOPMENT COMPANY DEBENTURES.

    ``(a) In General.--
        ``(1) Prepayment authorized.--Subject to the requirements set 
    forth in subsection (b), an issuer of a debenture purchased by the 
    Federal Financing Bank and guaranteed by the Administration under 
    this Act may, at the election of the borrower (in the case of a 
    loan under section 503) or the issuer (in the case of a small 
    business investment company) and with the approval of the 
    Administration, prepay such debenture in accordance with the 
    provisions of this section. A small business investment company 
    operating under the authority of section 301(d) that has issued a 
    debenture that was purchased by and is held by the Administration, 
    may, under the same terms and conditions, prepay such debenture, 
    and the penalty as provided in this section, and shall thereafter 
    be immediately eligible to apply for additional assistance from the 
    Administration.
        ``(2) Procedure.--
            ``(A) In general.--In making a prepayment under paragraph 
        (1)--
                ``(i) the borrower (in the case of a loan under section 
            503) or the issuer (in the case of a small business 
            investment company) shall pay to the Federal Financing Bank 
            an amount that is equal to the sum of the unpaid principal 
            balance due on the debenture as of the date of the 
            prepayment (plus accrued interest at the coupon rate on the 
            debenture) and the amount of the repurchase premium 
            described in subparagraph (B); and
                ``(ii) the Administration shall pay to the Federal 
            Financing Bank the difference between the repurchase 
            premium paid by the borrower under this subsection and the 
            repurchase premium that the Federal Financing Bank would 
            otherwise have received.
            ``(B) Repurchase premium.--
                ``(i) In general.--For purposes of subparagraph (A)(i), 
            the repurchase premium is the amount equal to the product 
            of--

                    ``(I) the unpaid principal balance due on the 
                debenture on the date of prepayment; and
                    ``(II) the applicable percentage rate, as 
                determined in accordance with clauses (ii) and (iii).

                ``(ii) Applicable percentage rate.--For purposes of 
            clause (i)(II), the applicable percentage rate means--

                    ``(I) with respect to a 10-year term loan, 8.5 
                percent;
                    ``(II) with respect to a 15-year term loan, 9.5 
                percent;
                    ``(III) with respect to a 20-year term loan, 10.5 
                percent; and
                    ``(IV) with respect to a 25-year term loan, 11.5 
                percent.

                ``(iii) Adjustments to applicable percentage rate.--The 
            percentage rates described in clause (ii) shall be 
            increased or decreased by the Administration by a factor 
            not to exceed one-third, if the same factor is applied in 
            each case and if the Administration determines that an 
            adjustment is necessary, based on the number of borrowers 
            having given notice of their intent to participate, in 
            order to make the program (including the amounts 
            appropriated for this purpose under Public Law 103-317) 
            result in no substantial net gain or loss of revenue to the 
            Federal Financing Bank or to the Administration. Amounts 
            collected in excess of the amount necessary to ensure 
            revenue neutrality shall be refunded to the borrowers.
    ``(b) Requirements.--For purposes of subsection (a), the 
requirements of this subsection are that--
        ``(1) the debenture is outstanding and neither the loan that 
    secures the debenture, if any, nor the debenture is in default on 
    the date on which the prepayment is made;
        ``(2) State, local, or personal funds, or the proceeds of a 
    refinancing in accordance with subsection (d) of this section under 
    the programs authorized by this title, are used to prepay or roll 
    over the debenture; and
        ``(3) with respect to a debenture issued under section 503, the 
    issuer certifies that the benefits, net of fees and expenses 
    authorized herein, associated with prepayment of the debenture are 
    entirely passed through to the borrower.
    ``(c) No Prepayment Fees or Penalties.--No fees or penalties other 
than those specified in this section may be imposed on the issuer, the 
borrower, the Administration, or any fund or account administered by 
the Administration as the result of a prepayment under this section.
    ``(d) Refinancing Limitations.--
        ``(1) In general.--The refinancing of a debenture under 
    sections 504 and 505, in accordance with subsection (b)(2)--
            ``(A) shall not exceed the amount necessary to prepay 
        existing debentures, including all costs associated with the 
        refinancing and any applicable prepayment penalty or repurchase 
        premium; and
            ``(B) except as provided in paragraphs (2) and (3), shall 
        be subject to the provisions of sections 504 and 505 and the 
        rules and regulations promulgated thereunder, including rules 
        and regulations governing payment of authorized expenses, 
        commissions, fees, and discounts to brokers and dealers in 
        trust certificates issued pursuant to section 505.
        ``(2) Job creation.--An applicant for refinancing under section 
    504 of a loan made pursuant to section 503 shall not be required to 
    demonstrate that a requisite number of jobs will be created with 
    the proceeds of a refinancing.
        ``(3) Loan processing fee.--To cover the cost of loan 
    packaging, processing, and other administrative functions, a 
    development company that provides refinancing under subsection 
    (b)(2) may impose a one-time loan processing fee, not to exceed 0.5 
    percent of the principal amount of the loan.
        ``(4) New debentures.--Issuers of debentures under title III 
    may issue new debentures in accordance with such title in order to 
    prepay existing debentures as authorized in this section.
        ``(5) Preliminary notice.--
            ``(A) In general.--The Administration shall use certified 
        mail and other reasonable means to notify each eligible 
        borrower of the prepayment program provided in this title. Each 
        preliminary notice shall specify the range and dollar amount of 
        repurchase premiums which could be required of that borrower in 
        order to participate in the program. In carrying out this 
        program, the Administration shall provide a period of not less 
        than 45 days following the receipt of such notice by the 
        borrower during which the borrower must notify the 
        Administration of the borrower's intent to participate in the 
        program. The Administration shall require that a borrower who 
        gives notice of its intent to participate to make an earnest 
        money deposit of $1,000 which shall not be refundable but which 
        shall be credited toward the final repurchase premium.
            ``(B) Definition.--For purposes of this paragraph, the term 
        `borrower', in the case of a small business investment company 
        or a specialized small business investment company, means 
        `issuer'.
        ``(6) Final notice.--Based upon the response to the preliminary 
    notice under paragraph (5), the Administration shall make a final 
    computation of the necessary prepayment premiums and shall notify 
    each qualified respondent of the results of such computation. Each 
    qualified respondent shall be afforded not less than 4 months to 
    complete the prepayment.
    ``(e) Definitions.--For purposes of this section--
        ``(1) the term `issuer' means--
            ``(A) the qualified State or local development company that 
        issued a debenture pursuant to section 503, which has been 
        purchased by the Federal Financing Bank; and
            ``(B) a small business investment company licensed pursuant 
        to subsection (c) or (d) of section 301; or
        ``(2) the term `borrower' means a small business concern whose 
    loan secures a debenture issued pursuant to section 503.
    ``(f) Regulations.--Not later than 30 days after the date of 
enactment of this section, the Administration shall promulgate such 
regulations as may be necessary to carry out this section.
    ``(g) Authorization.--There are authorized to be appropriated 
$30,000,000 to carry out the provisions of The Small Business 
Prepayment Penalty Relief Act of 1994.''.

                   TITLE VI--MISCELLANEOUS AMENDMENTS

SEC. 601. SBA INTEREST PAYMENTS TO TREASURY.

    Section 4(c)(5)(B)(ii) of the Small Business Act (15 U.S.C. 
633(c)(5)(B)(ii)) is amended to read as follows:
    ``(ii) Following the close of each fiscal year, the Administration 
shall pay into the miscellaneous receipts of the United States Treasury 
the actual interest that the Administration collects during that fiscal 
year on all financings made under this Act.''.

SEC. 602. IMPOSITION OF FEES.

    Section 5(b) of the Small Business Act (15 U.S.C. 634(b)) is 
amended--
        (1) in paragraph (10), by striking ``and'' at the end;
        (2) in paragraph (11), by striking the period at the end and 
    inserting a semicolon; and
        (3) by adding at the end the following new paragraphs:
        ``(12) impose, retain, and use only those fees which are 
    specifically authorized by law or which are in effect on September 
    30, 1994, and in the amounts and at the rates in effect on such 
    date, except that the Administrator may, subject to approval in 
    appropriations Acts, impose, retain, and utilize, additional fees--
            ``(A) not to exceed $100 for each loan servicing action 
        (other than a loan assumption) requested after disbursement of 
        the loan, including any substitution of collateral, release or 
        substitution of a guarantor, reamortization, or similar action;
            ``(B) not to exceed $300 for loan assumptions;
            ``(C) not to exceed 1 percent of the amount of requested 
        financings under title III of the Small Business Investment Act 
        of 1958 for which the applicant requests a commitment from the 
        Administration for funding during the following year; and
            ``(D) to recover the direct, incremental cost involved in 
        the production and dissemination of compilations of information 
        produced by the Administration under the authority of this Act 
        and the Small Business Investment Act of 1958; and
        ``(13) collect, retain and utilize, subject to approval in 
    appropriations Acts, any amounts collected by fiscal transfer 
    agents and not used by such agent as payment of the cost of loan 
    pooling or debenture servicing operations, except that amounts 
    collected under this paragraph and paragraph (12) shall be utilized 
    solely to facilitate the administration of the program that 
    generated the excess amounts.''.

SEC. 603. JOB CREATION AND COMMUNITY BENEFIT.

    Section 7(a)(21) of the Small Business Act (15 U.S.C. 636(a)(21)) 
is amended by adding at the end the following new subparagraph:
            ``(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.''.

SEC. 604. MICROLOAN PROGRAM AMENDMENTS.

    Section 7(m)(9)(B) of the Small Business Act (15 U.S.C. 
636(m)(9)(B)) is amended--
        (1) by inserting ``and loan guarantees'' after ``for loans''; 
    and
        (2) by inserting after ``experienced microlending 
    organizations'' the following: ``and national and regional 
    nonprofit organizations that have demonstrated experience in 
    providing training support for microenterprise development and 
    financing.''.

SEC. 605. TECHNICAL CLARIFICATION.

    (a) Defense Conversion.--Section 7(a)(21)(A) of the Small Business 
Act (15 U.S.C. 636(a)(21)(A)) is amended by striking ``under the'' and 
inserting ``on a guaranteed basis under the''.
    (b) Additional Technical Clarification.--Section 204 of Public Law 
94-305 (15 U.S.C. 634d) is amended by striking ``section 202'' and 
inserting ``this title''.

SEC. 606. STUDY AND DATA BASE: GUARANTEED BUSINESS LOAN PROGRAM AND 
              DEVELOPMENT COMPANY PROGRAM.

    (a) Study Authorized.--The Administration shall conduct a study 
of--
        (1) the Guaranteed Business Loan program under section 7(a) of 
    the Small Business Act; and
        (2) the Development Company program under sections 502, 503, 
    and 504 of the Small Business Investment Act of 1958.
    (b) Evaluation.--For purposes of the study conducted under 
subsection (a), the Administration shall evaluate the performance of 
the programs described in paragraphs (1) and (2) of subsection (a), 
using data from the most recent 4-year period. Such evaluation shall 
focus on the following factors:
        (1) The number, dollar amount, and average size of the loans or 
    financings under each program.
        (2) The number, dollar amount, and average size of the loans or 
    financings made to woman-owned and minority-owned businesses under 
    each program.
        (3) The geographic distribution of the loans or financings 
    under each program.
        (4) The jobs created or maintained attributable to the loans or 
    financings under each program.
        (5) The number, dollar amount, and average size of the loans or 
    financings on which borrowers defaulted under each program.
        (6) The amounts recovered by the Administration after default, 
    foreclosure, or otherwise under each program.
        (7) The number of companies which are no longer in business 
    despite receiving the loans or financings under each program.
        (8) The taxes paid by businesses which received the loans or 
    financings under each program.
        (9) Such other information as the Administration determines to 
    be appropriate for a complete evaluation of each program.
    (c) Contracting With Independent Entities.--In carrying out 
subsections (a) and (b), the Administration may contract with an 
independent entity or entities--
        (1) to conduct the study pursuant to subsection (a); and
        (2) to develop a database of information to enable the 
    Administration to maintain and access, on an ongoing basis, current 
    information relating to the factors set forth in subsection (b).
    (d) Date.--The study authorized by subsection (a) shall be 
completed not later than September 30, 1995.

SEC. 607. SBIR VENDORS.

    Section 9(q)(2) of the Small Business Act (15 U.S.C. 638(q)(2)) is 
amended to read as follows:
        ``(2) Vendor selection.--Each agency may select a vendor to 
    assist small business concerns to meet the goals listed in 
    paragraph (1) for a term not to exceed 3 years. Such selection 
    shall be competitive and shall utilize merit-based criteria.''.

SEC. 608. PROGRAM EXTENSION.

    Section 602(e) of the Business Opportunity Development Reform Act 
of 1988 (15 U.S.C. 637 note) is amended by striking ``September 30, 
1994'', and inserting ``September 30, 1997''.

SEC. 609. PROHIBITION ON THE USE OF FUNDS FOR INDIVIDUALS NOT LAWFULLY 
              WITHIN THE UNITED STATES.

    Section 2 of the Small Business Act (15 U.S.C. 631) is amended by 
adding at the end the following new subsection:
    ``(i) Prohibition on the Use of Funds for Individuals Not Lawfully 
Within the United States.--None of the funds made available pursuant to 
this Act may be used to provide any direct benefit or assistance to any 
individual in the United States if the Administrator or the official to 
which the funds are made available receives notification that the 
individual is not lawfully within the United States.''.

SEC. 610. OFFICE OF ADVOCACY EMPLOYEES.

    Section 204 of Public Law 94-305 (15 U.S.C. 634d) is amended--
        (1) in the matter preceding paragraph (1), by striking ``after 
    consultation with and subject to the approval of the 
    Administrator,''; and
        (2) in paragraph (1), by striking ``ten'' and inserting ``14''.

SEC. 611. PROHIBITION ON THE PROVISION OF ASSISTANCE.

    Section 4 of the Small Business Act (15 U.S.C. 633) is amended by 
adding at the end the following new subsection:
    ``(e) Prohibition on the Provision of Assistance.--Notwithstanding 
any other provision of law, the Administration is prohibited from 
providing any financial or other assistance to any business concern or 
other person engaged in the production or distribution of any product 
or service that has been determined to be obscene by a court of 
competent jurisdiction.''.

SEC. 612. CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT OBLIGATIONS.

    Section 4 of the Small Business Act (15 U.S.C. 633), as amended by 
section 611, is amended by adding at the end the following new 
subsection:
    ``(f) Certification of Compliance With Child Support Obligations.--
        ``(1) In general.--For financial assistance approved after the 
    promulgation of final regulations to implement this section, each 
    recipient of financial assistance under this Act, including a 
    recipient of a direct loan or a loan guarantee, shall certify that 
    the recipient is not more than 60 days delinquent under the terms 
    of any--
            ``(A) administrative order;
            ``(B) court order; or
            ``(C) repayment agreement entered into between the 
        recipient and the custodial parent or State agency providing 
        child support enforcement services,
    that requires the recipient to pay child support, as such term is 
    defined in section 462(b) of the Social Security Act.
        ``(2) Enforcement.--Not later than 6 months after the date of 
    enactment of this subsection, the Administration shall promulgate 
    such regulations as may be necessary to enforce compliance with the 
    requirements of this subsection.''.

SEC. 613. ADVOCACY STUDY OF PAPERWORK AND TAX IMPACT.

    The Chief Counsel for Advocacy of the Small Business Administration 
shall conduct a study of the impact of all Federal regulatory, 
paperwork, and tax requirements upon small business, and report its 
findings to the Congress not later than 1 year after the date of 
enactment of this Act.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.