[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3412 Reported in Senate (RS)]





                                                       Calendar No. 645

105th CONGRESS

  2d Session

                               H. R. 3412

                          [Report No. 105-347]

_______________________________________________________________________

                                 AN ACT

   To amend and make technical corrections in title III of the Small 
                        Business Investment Act.

_______________________________________________________________________

                           September 25, 1998

        Reported with an amendment and an amendment to the title





                                                       Calendar No. 645
105th CONGRESS
  2d Session
                                H. R. 3412

                          [Report No. 105-347]

   To amend and make technical corrections in title III of the Small 
                        Business Investment Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 25, 1998

  Received; read twice and referred to the Committee on Small Business

                           September 25, 1998

 Reported by Mr. Bond, with an amendment and an amendment to the title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 AN ACT


 
   To amend and make technical corrections in title III of the Small 
                        Business Investment Act.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Small Business Investment 
Company Technical Corrections Act of 1998''.</DELETED>

<DELETED>SEC. 2. TECHNICAL CORRECTIONS.</DELETED>

<DELETED>    Title III of the Small Business Investment Act of 1958 (15 
U.S.C. 661) is amended--</DELETED>
        <DELETED>    (1) in section 303(g) (15 U.S.C. 683(g)), by 
        striking subparagraph (13);</DELETED>
        <DELETED>    (2) in section 308 (15 U.S.C. 687) by adding at 
        the end the following:</DELETED>
<DELETED>    ``(j) For the purposes of sections 304 and 305, in a case 
in which an incorporated or unincorporated business is not required by 
law to pay Federal income taxes at the enterprise level but is required 
to pass income through to its shareholders or partners, an eligible 
small business or smaller enterprise may be determined by computing the 
after-tax income of such business by deducting from the net income an 
amount equal to the net income multiplied by the combined marginal 
Federal and State income tax rate for corporations.''; and</DELETED>
        <DELETED>    (3) in section 320 (15 U.S.C. 687m), by striking 
        ``6'' and inserting ``12''.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Year 2000 
Readiness and Small Business Programs Restructuring and Reform Act of 
1998''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

              TITLE I--SMALL BUSINESS YEAR 2000 READINESS

Sec. 101. Findings.
Sec. 102. Year 2000 computer problem loan guarantee program.
Sec. 103. Pilot program requirements.
Sec. 104. Section 7(a) loan program.

       TITLE II--SMALL BUSINESS PROGRAM RESTRUCTURING AND REFORM

Sec. 201. Women's business center program.
Sec. 202. SBIR program.
Sec. 203. SBIC program.
Sec. 204. Certified development company program.
Sec. 205. Small business Federal contract set-asides.
Sec. 206. Assistance for veterans.
Sec. 207. Section 7(a) loan program.
Sec. 208. Disaster mitigation pilot program.
Sec. 209. Microloan program.
Sec. 210. Real estate appraisals.
Sec. 211. Community development venture capital demonstration program.
Sec. 212. Technical amendments.

    TITLE III--SMALL BUSINESS ENVIRONMENTAL ASSISTANCE PILOT PROGRAM

Sec. 301. Pilot program.

              TITLE I--SMALL BUSINESS YEAR 2000 READINESS

SEC. 101. FINDINGS.

    Congress finds that--
            (1) the failure of many computer programs to recognize the 
        Year 2000 will have extreme negative financial consequences in 
        the Year 2000 and in subsequent years for both large and small 
        businesses;
            (2) small businesses are well behind larger businesses in 
        implementing corrective changes to their automated systems--85 
        percent of businesses with 200 employees or less have not 
        commenced inventorying the changes they must make to their 
        automated systems to avoid Year 2000 problems;
            (3) many small businesses do not have access to capital to 
        fix mission critical automated systems; and
            (4) the failure of a large number of small businesses will 
        have a highly detrimental effect on the economy in the Year 
        2000 and in subsequent years.

SEC. 102. YEAR 2000 COMPUTER PROBLEM LOAN GUARANTEE PROGRAM.

    (a) Program Established.--Section 7(a) of the Small Business Act 
(15 U.S.C. 636(a)) is amended by adding at the end the following:
            ``(27) Year 2000 computer problem pilot program.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the term `eligible lender' means any 
                        lender designated by the Administration as 
                        eligible to participate in--
                                    ``(I) the Preferred Lenders Program 
                                authorized by the proviso in section 
                                5(b)(7); or
                                    ``(II) the Certified Lenders 
                                Program authorized in paragraph (19); 
                                and
                            ``(ii) the term `Year 2000 computer 
                        problem' means, with respect to information 
                        technology, any problem that prevents the 
                        information technology from accurately 
                        processing, calculating, comparing, or 
                        sequencing date or time data--
                                    ``(I) from, into, or between--
                                            ``(aa) the 20th or 21st 
                                        centuries; or
                                            ``(bb) the years 1999 and 
                                        2000; or
                                    ``(II) with regard to leap year 
                                calculations.
                    ``(B) Establishment of program.--The Administration 
                shall--
                            ``(i) establish a pilot loan guarantee 
                        program, under which the Administration shall 
                        guarantee loans made by eligible lenders to 
                        small business concerns in accordance with this 
                        subsection; and
                            ``(ii) notify each eligible lender of the 
                        establishment of the program under this 
                        paragraph.
                    ``(C) Use of funds.--A small business concern that 
                receives a loan guaranteed under this paragraph shall 
                use the proceeds of the loan solely to address the Year 
                2000 computer problems of that small business concern, 
                including the repair or acquisition of information 
                technology systems and other automated systems.
                    ``(D) Maximum amount.--The total amount of a loan 
                made to a small business concern and guaranteed under 
                this paragraph shall not exceed $50,000.
                    ``(E) Guarantee limit.--The guarantee percentage of 
                a loan guaranteed under this paragraph shall not exceed 
                50 percent of the balance of the financing outstanding 
                at the time of disbursement of the loan.
                    ``(F) Report.--The Administration shall annually 
                submit to the Committees on Small Business of the House 
                of Representatives and the Senate a report on the 
                results of the program under this paragraph, which 
                shall include information relating to--
                            ``(i) the number and amount of loans 
                        guaranteed under this paragraph;
                            ``(ii) whether the loans guaranteed were 
                        made to repair or replace information 
                        technology and other automated systems; and
                            ``(iii) the number of eligible lenders 
                        participating in the program.''.
    (b) Regulations.--
            (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the Administrator of the Small Business 
        Administration shall implement the program under section 
        7(a)(27) of the Small Business Act, as added by this section.
            (2) Requirements.--Except to the extent inconsistent this 
        section or section 7(a)(27) of the Small Business Act, as added 
        by this section, in carrying out paragraph (1), the 
        Administrator shall ensure that the requirements governing the 
        program under section 7(a)(27) of the Small Business Act, as 
        added by this section, are substantially similar to the 
        requirements governing the FA$TRAK pilot program of the Small 
        Business Administration, or any successor program or pilot 
        program to that pilot program.
    (c) Repeal.--Effective on October 1, 2001, this section and the 
amendment made by this section are repealed.

SEC. 103. PILOT PROGRAM REQUIREMENTS.

    Section 7(a)(25) of the Small Business Act (15 U.S.C. 636(a)(25)) 
is amended by adding at the end the following:
                    ``(D) Notification of change.--Not later than 30 
                days prior to initiating any pilot program or making 
                any change in a pilot program under this subsection 
                that may affect the subsidy rate estimates for the loan 
program under this subsection, the Administration shall notify the 
Committees on Small Business of the House of Representatives and the 
Senate, which notification shall include--
                            ``(i) a description of the proposed change; 
                        and
                            ``(ii) an explanation, which shall be 
                        developed by the Administration in consultation 
                        with the Director of the Office of Management 
                        and Budget, of the estimated effect that the 
                        change will have on the subsidy rate.
                    ``(E) Report on pilot programs.--The Administration 
                shall annually submit to the Committees on Small 
                Business of the House of Representatives and the Senate 
                a report on each pilot program under this subsection, 
                which report shall include information relating to--
                            ``(i) the number and amount of loans made 
                        under the pilot program;
                            ``(ii) the number of lenders participating 
                        in the pilot program; and
                            ``(iii) the default rate, delinquency rate, 
                        and recovery rate for loans under each pilot 
                        program, as compared to those rates for other 
                        loan programs under this subsection.''.

SEC. 104. SECTION 7(A) LOAN PROGRAM.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended, in the first sentence, by inserting ``and to assist small 
business concerns in meeting technology requirements for the Year 
2000,'' after ``and working capital,''.

       TITLE II--SMALL BUSINESS PROGRAM RESTRUCTURING AND REFORM

SEC. 201. WOMEN'S BUSINESS CENTER PROGRAM.

    (a) Findings.--Congress finds that--
            (1) with small business concerns owned and controlled by 
        women being created at a rapid rate in the United States, there 
        is a need to increase the authorization level for the women's 
        business center program under section 29 of the Small Business 
        Act (15 U.S.C. 656) in order to establish additional women's 
        business center sites throughout the Nation that focus on 
        entrepreneurial training programs for women; and
            (2) increased funding for the women's business center 
        program will ensure that--
                    (A) new women's business center sites can be 
                established to reach women located in geographic areas 
                not presently served by an existing women's business 
                center without jeopardizing the full funding of 
                existing women's business centers for the term 
                prescribed by law; and
                    (B) the Small Business Administration achieves the 
                goal of establishing at least 1 sustainable women's 
                business center in each State.
    (b) Authorization of Appropriations.--
            (1) In general.--Section 29(k)(1) of the Small Business Act 
        (15 U.S.C. 656(k)(1)) is amended to read as follows:
            ``(1) Authorization.--There is authorized to be 
        appropriated to carry out this section, $12,000,000 for fiscal 
        year 1999 and each fiscal year thereafter.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect on October 1, 1998.
    (c) Terms of Assistance.--
            (1) In general.--Section 308(b) of the Small Business 
        Reauthorization Act of 1997 (15 U.S.C. 656 note) is amended--
                    (A) by striking ``(b)'' and all that follows 
                through ``paragraph (2), any organization'' and 
                inserting the following:
    ``(b) Applicability.--Any organization''; and
                    (B) by striking paragraph (2).
            (2) Effective date.--The amendment made by this subsection 
        shall take effect as if included in the enactment of the Small 
        Business Reauthorization Act of 1997.
    (d) General Accounting Office Reporting Requirements.--
            (1) Baseline report.--Not later than October 31, 1999, the 
        Comptroller General of the United States shall--
                    (A) conduct a review of the administration of the 
                women's business center program under section 29 of the 
                Small Business Act (15 U.S.C. 656) by the Office of 
                Women's Business Ownership of the Small Business 
                Administration, which shall include an analysis of--
                            (i) the operation of the women's business 
                        center program by the Administration;
                            (ii) the efforts of the Administration to 
                        meet the legislative objectives established for 
                        the program;
                            (iii) the oversight role of the 
                        Administration of the operations of women's 
                        business centers;
                            (iv) the training and assistance provided 
                        by centers receiving funding from the 
                        Administration as compared to the activities of 
                        the centers that no longer receive funding from 
                        the Administration;
                            (v) the degree to which--
                                    (I) the Administration has taken 
                                the actions necessary to ensure that 
                                the annual report submitted by the 
                                Administrator under 29(j) of the Small 
                                Business Act (15 U.S.C. 656(j)) meets 
                                the requirements of that section; and
                                    (II) the annual report submitted by 
                                the Administrator under 29(j) of the 
                                Small Business Act (15 U.S.C. 656(j)) 
                                meets the requirements of that section; 
                                and
                            (vi) any other matters that the Comptroller 
                        General determines to be appropriate in 
                        consultation with and as directed by the 
                        Committees on Small Business of the Senate and 
                        House of Representatives; and
                    (B) submit to the Committees on Small Business of 
                the Senate and House of Representatives a report 
                describing the results of the review under subparagraph 
                (A).
            (2) Followup report.--Not later than October 31, 2002, the 
        Comptroller General of the United States shall--
                    (A) conduct a review of any changes, during the 
                period beginning on the date on which the report is 
                submitted under paragraph (1)(B) and ending on the date 
                on which the report is submitted under subparagraph (B) 
                of this paragraph, in the administration of the women's 
                business center program under section 29 of the Small 
                Business Act (15 U.S.C. 656) by the Office of Women's 
                Business Ownership of the Small Business 
                Administration, which shall include an analysis of any 
                changes during that period in--
                            (i) the operation of the women's business 
                        center program by the Administration;
                            (ii) the efforts of the Administration to 
                        meet the legislative objectives established for 
                        the program;
                            (iii) the oversight role of the 
                        Administration of the operations of women's 
                        business centers;
                            (iv) the training and assistance provided 
                        by centers receiving funding from the 
                        Administration as compared to the activities of 
                        the centers that no longer receive funding from 
                        the Administration;
                            (v) the degree to which--
                                    (I) the Administration has taken 
                                the actions necessary to ensure that 
                                the annual report submitted by the 
                                Administrator under 29(j) of the Small 
                                Business Act (15 U.S.C. 656(j)) meets 
                                the requirements of that section; and
                                    (II) the annual report submitted by 
                                the Administrator under 29(j) of the 
                                Small Business Act (15 U.S.C. 656(j)) 
                                meets the requirements of that section; 
                                and
                            (vi) any other matters that the Comptroller 
                        General determines to be appropriate in 
                        consultation with and as directed by the 
                        Committees on Small Business of the Senate and 
                        House of Representatives; and
                    (B) submit to the Committees on Small Business of 
                the Senate and House of Representatives a report 
                describing the results of the review under subparagraph 
                (A).

SEC. 202. SBIR PROGRAM.

    (a) Assistive Technology.--Section 9(c) of the Small Business Act 
(15 U.S.C. 638(c)) is amended by adding at the end the following: ``In 
order to carry out the purposes of this section, the Administration 
shall, to the maximum extent practicable, encourage Federal agencies to 
fund programs for the research and development of assistive and 
universally designed technology that is designed to result in the 
availability of new products for individuals with disabilities (as 
defined in section 3 of the Americans with Disabilities Act of 1990 (42 
U.S.C. 12102)).''.
    (b) Federal Agency Expenditures for the SBIR Program.--Section 
9(f)(1) of the Small Business Act (15 U.S.C. 638(f)(1)) is amended by 
adding at the end the following: ``Notwithstanding any other provision 
of law, any rule, regulation, or order promulgated by the Director of 
the Office of Management and Budget relating to the definition of the 
term `extramural budget' in subsection (e)(1) shall, except with 
respect to the Federal agencies specifically identified in that 
subsection, apply uniformly to all departments and agencies of the 
Federal Government that are subject to the requirements of this 
section.''.
    (c) Implementation of Outreach Authorities.--Existing procurement 
outreach activities of the Federal Government, including, but not 
limited to, electronic commerce resource centers and procurement 
technical assistance centers, shall conduct program outreach activities 
for the Small Business Innovation Research program using funds that are 
otherwise available for such existing procurement outreach activities.
    (d) Repeal of Termination Provision.--Section 9 of the Small 
Business Act (15 U.S.C. 638) is amended by striking subsection (m) and 
inserting the following:
    ``(m) [Reserved].''.

SEC. 203. SBIC PROGRAM.

    (a) In General.--Section 308(i)(2) of the Small Business Investment 
Act of 1958 (15 U.S.C. 687(i)(2)) is amended by adding at the end the 
following: ``In this paragraph, the term `interest' includes only the 
maximum mandatory sum, expressed in dollars or as a percentage rate, 
that is payable with respect to the business loan amount received by 
the small business concern, and does not include the value, if any, of 
contingent obligations, including warrants, royalty, or conversion 
rights, granting the small business investment company an ownership 
interest in the equity or future revenue of the small business concern 
receiving the business loan.''.
    (b) Funding Levels.--Section 20 of the Small Business Act (15 
U.S.C. 631 note) is amended--
            (1) in subsection (d)(1)(C)(i), by striking 
        ``$800,000,000'' and inserting ``$1,000,000,000''; and
            (2) in subsection (e)(1)(C)(i), by striking 
        ``$900,000,000'' and inserting ``$1,200,000,000''.
    (c) Technical Corrections.--Title III of the Small Business 
Investment Act of 1958 (15 U.S.C. 661 et seq.) is amended--
            (1) in section 303(g) (15 U.S.C. 683(g)), by striking 
        paragraph (13);
            (2) in section 308 (15 U.S.C. 687) by adding at the end the 
        following:
    ``(j) For the purposes of sections 304 and 305, in any case in 
which an incorporated or unincorporated business is not required by law 
to pay Federal income taxes at the enterprise level, but is required to 
pass income through to its shareholders or partners, an eligible small 
business or smaller enterprise may be determined by computing the 
after-tax income of such business by deducting from the net income an 
amount equal to the net income multiplied by the combined marginal 
Federal and State income tax rate for corporations.''; and
            (3) in section 320 (15 U.S.C. 687m), by striking ``6'' and 
        inserting ``12''.

SEC. 204. CERTIFIED DEVELOPMENT COMPANY PROGRAM.

    (a) Liquidation and Foreclosure.--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:

``SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.

    ``(a) In General.--The Administration shall authorize qualified 
State and local development companies (as defined in section 503(e)) 
that meet the requirements of subsection (b) to foreclose and liquidate 
loans in their portfolios that are funded with the proceeds of 
debentures guaranteed by the Administration under section 503.
    ``(b) Requirements.--The requirements of this subsection are that--
            ``(1) the qualified State or local development company--
                    ``(A) participated in the loan liquidation pilot 
                program established by section 204 of the Small 
                Business Programs Improvement Act of 1996 (15 U.S.C. 
                695 note), as in effect on the day before the 
                promulgation of final regulations by the Administration 
                implementing this section;
                    ``(B) is participating in the Premier Certified 
                Lenders Program under section 508; or
                    ``(C) is participating in the Accredited Lenders 
                Program under section 507 and meets the requirements of 
                paragraph (2)(B); or
            ``(2)(A) during the 3 most recent fiscal years, the 
        qualified State or local development company has made an 
        average of not less than 10 loans per year that are funded with 
        the proceeds of debentures guaranteed under section 503; and
            ``(B) 1 or more of the employees of the qualified State or 
        local development company have--
                    ``(i) not less than 2 years of substantive, 
                decision-making experience in administering the 
                liquidation and workout of problem loans secured in a 
                manner substantially similar to loans funded with the 
                proceeds of debentures guaranteed under section 503; 
                and
                    ``(ii) completed a training program on loan 
                liquidation developed by the Administration in 
                conjunction with qualified State and local development 
                companies that meet the requirements of this 
                subsection.
    ``(c) Authority of Development Companies.--
            ``(1) In general.--Each qualified State or local 
        development company authorized to foreclose and liquidate loans 
        under this section shall, with respect to any loan described in 
        subsection (a) in the portfolio of the development company that 
        is in default--
                    ``(A) perform all liquidation and foreclosure 
                functions, including the purchase of any other 
                indebtedness secured by the property securing the loan, 
                in a reasonable and sound manner and according to 
                commercially accepted practices, pursuant to a 
                liquidation plan, which shall be approved in advance by 
                the Administration in accordance with paragraph (2)(A);
                    ``(B) litigate any matter relating to the 
                performance of the functions described in subparagraph 
                (A), except that the Administration may--
                            ``(i) assume the defense or prosecution of 
                        any case if--
                                    ``(I) the outcome of the litigation 
                                may adversely affect the 
                                Administration's management of the loan 
                                program established under section 502; 
                                or
                                    ``(II) the Administration is 
                                entitled to legal remedies not 
                                available for a qualified State or 
                                local development company and such 
                                remedies will benefit either the 
                                Administration or the qualified State 
                                or local development company in such 
                                litigation; or
                            ``(ii) oversee the conduct of any such 
                        litigation to which the qualified State or 
                        local development company is a party; and
                    ``(C) take other appropriate actions to mitigate 
                loan losses in lieu of total liquidation or 
                foreclosure, including restructuring the loan, which 
                such actions shall be in accordance with prudent loan 
                servicing practices and pursuant to a workout plan, 
                which shall be approved in advance by the 
                Administration in accordance with paragraph (2)(C).
            ``(2) Administration approval.--
                    ``(A) Liquidation plan.--
                            ``(i) In general.--In carrying out 
                        paragraph (1), a qualified State or local 
                        development company shall submit to the 
                        Administration a proposed liquidation plan.
                            ``(ii) Timing.--Any request under this 
                        subparagraph shall be approved or denied by the 
                        Administration not later than 15 business days 
                        after the date on which the request is received 
                        by the Administration. If the Administration 
                        does not approve or deny a request for approval 
                        of a liquidation plan before the expiration of 
                        the 15-business day period beginning on 
the date on which the request is received by the Administration, the 
Administration shall notify the qualified State or local development 
company, in writing, of the specific concerns of the Administration 
within that 15-business day period.
                            ``(iii) Routine actions.--A routine action 
                        under a liquidation plan approved in accordance 
                        with this subparagraph shall not require 
                        additional approval by the Administration.
                    ``(B) Purchase of indebtedness.--
                            ``(i) In general.--In carrying out 
                        paragraph (1)(A), a qualified State or local 
                        development company shall submit to the 
                        Administration a request for written approval 
                        from the Administration before committing the 
                        Administration to purchase any other 
                        indebtedness secured by the property securing 
                        the loan at issue.
                            ``(ii) Timing.--Any request under this 
                        subparagraph shall be approved or denied by the 
                        Administration not later than 15 business days 
                        after the date on which the request is received 
                        by the Administration. If the Administration 
                        does not approve or deny a request for purchase 
                        of indebtedness before the expiration of the 
                        15-business day period beginning on the date on 
                        which the request is received by the 
                        Administration, the Administration shall notify 
                        the qualified State or local development 
                        company, in writing, of the specific concerns 
                        of the Administration within that 15-business 
                        day period.
                    ``(C) Workout plan.--
                            ``(i) In general.--In carrying out 
                        paragraph (1)(C), a qualified State or local 
                        development company may submit to the 
                        Administration a proposed workout plan.
                            ``(ii) Timing.--Any request under this 
                        subparagraph shall be approved or denied by the 
                        Administration not later than 15 business days 
                        after the date on which the request is received 
                        by the Administration. If the Administration 
                        does not approve or deny a request for approval 
                        of a proposed workout plan before the 
                        expiration of the 15-business day period 
                        beginning on the date on which the request is 
                        received by the Administration, the 
                        Administration shall notify the qualified State 
                        or local development company, in writing, of 
                        the specific concerns of the Administration 
                        within that 15-business day period.
                    ``(D) Compromise of indebtedness.--In carrying out 
                paragraph (1)(A), a qualified State or local 
                development company may--
                            ``(i) consider an offer made by an obligor 
                        to compromise the debt for less than the full 
                        amount owing; and
                            ``(ii) pursuant to such an offer, release 
                        any obligor or other party contingently liable, 
                        if--
                                    ``(I) the State or local 
                                development company submits to the 
                                Administration a written request for 
                                that release; and
                                    ``(II) the Administration approves 
                                the request.
            ``(3) Conflict of interest.--A qualified State or local 
        development company that is liquidating or foreclosing a loan 
        under this section shall not take any action that would result 
        in an actual or apparent conflict of interest between the 
        qualified State or local development company, or any employee 
        thereof, and any third party lender, associate of a third party 
        lender, or any other person participating in any manner in the 
        liquidation or foreclosure of the loan.
    ``(d) Suspension or Revocation of Authority.--The authority of a 
qualified State or local development company to foreclose and liquidate 
loans under this section may be suspended or revoked by the 
Administration, if the Administration determines that the qualified 
State or local development company--
            ``(1) does not meet the requirements of subsection (b);
            ``(2) has failed to adhere to any applicable rule or 
        regulation of the Administration, or has violated any other 
        applicable provision of law; or
            ``(3) fails to comply with any reporting requirement that 
        may be established by the Administration relating to the 
        liquidation and foreclosure of loans.
    ``(e) Report.--
            ``(1) In general.--Based on information provided by the 
        qualified State and local development companies and the 
        Administration, the Administration shall annually submit to the 
        Committees on Small Business of the House of Representatives 
        and the Senate a report on the results of the delegation of 
        authority to qualified State and local development companies to 
        liquidate and foreclose loans under this section.
            ``(2) Information included.--Each report under this 
        paragraph shall include the following information:
                    ``(A) With respect to each qualified State or local 
                development company authorized to foreclose and 
                liquidate loans under this section, and in the 
                aggregate, for each loan foreclosed or liquidated by 
                the qualified State or local development company, or 
                for which loan losses were otherwise mitigated by the 
                qualified State or local development company pursuant 
                to a workout plan under this section--
                            ``(i) the total cost of each project 
                        financed with the loan;
                            ``(ii) the total original dollar amount 
                        guaranteed by the Administration;
                            ``(iii) the total dollar amount of the loan 
                        at the time transferred into liquidation, 
                        foreclosure, or mitigation;
                            ``(iv) the total dollar losses resulting 
                        from the liquidation, foreclosure, or 
                        mitigation; and
                            ``(v) the total recoveries resulting from 
                        the liquidation, foreclosure, or mitigation, 
                        both as a percentage of the amount guaranteed 
                        and the total cost of the project financed.
                    ``(B) A comparison between--
                            ``(i) the information described in clauses 
                        (i) through (v) of subparagraph (A) with 
                        respect to loans foreclosed and liquidated, or 
                        for which loan losses were otherwise mitigated 
                        pursuant to a workout plan, by qualified State 
                        and local development companies under this 
                        section during the 12-month period preceding 
                        the date on which the report is submitted; and
                            ``(ii) the same information with respect to 
                        loans foreclosed and liquidated by the 
                        Administration during that period.
                    ``(C) The number of times that the Administration 
                has failed to approve or deny a request for written 
                approval of a liquidation plan, purchase of 
                indebtedness, or workout plan within the time periods 
                described in subparagraphs (A), (B), and (C) of 
                subsection (c)(2).''.
    (b) Regulations.--
            (1) In general.--Not later than 150 days after the date of 
        enactment of this Act, the Administrator of the Small Business 
        Administration shall promulgate such regulations as may be 
        necessary to carry out section 510 of the Small Business 
        Investment Act of 1958, as added by subsection (a) of this 
        section.
            (2) Elimination of pilot program.--Effective on the date on 
        which final regulations are promulgated under paragraph (1), 
        section 204 of the Small Business Programs Improvement Act of 
        1996 (15 U.S.C. 695 note) is repealed.
    (c) Public Policy Goals.--Section 501(d)(3)(C) of the Small 
Business Investment Act of 1958 (15 U.S.C. 695(d)(3)(C)) is amended by 
inserting ``or women-owned business development'' before the comma.

SEC. 205. SMALL BUSINESS FEDERAL CONTRACT SET-ASIDES.

    Section 15(h) of the Small Business Act (15 U.S.C. 644(h)) is 
amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (2) by inserting after paragraph (1) the following:
    ``(2)(A) Not later than 180 days after the last day of each fiscal 
year, based on the reports submitted under paragraph (1) for that 
fiscal year, the Administration shall submit to the Committees on Small 
Business of the House of Representatives and the Senate a report, which 
shall include--
            ``(i) the information required by paragraph (3);
            ``(ii) a detailed description of the procurement data that 
        is included in the reports submitted under paragraph (1) for 
        that fiscal year, which shall identify--
                    ``(I) any data on contracts from Federal agencies 
                that is excluded from those reports, accompanied by an 
                explanation for such exclusion; and
                    ``(II) each Federal agency that has submitted a 
                report that deviates from the requirements of 
                paragraphs (3) and (4), accompanied by an explanation 
                of the reasons for each such deviation;
            ``(iii) a detailed description of any change in statistical 
        methodology used by any Federal agency that is reflected in any 
        statistic in the report submitted under paragraph (1) for that 
        fiscal year, including any inclusion or exclusion of the value 
        of any contracts or types of contracts in any statistic 
        represented by the Federal agency in the report submitted under 
        paragraph (1) as the total value of contracts or subcontracts 
        awarded by the Federal agency or as the total value of 
        contracts or subcontracts awarded to small business concerns; 
        and
            ``(iv) with respect to each change in statistical 
        methodology by a Federal agency described in clause (iii), a 
        separate calculation (which shall be provided to the 
        Administration by the Federal agency) of the total value of 
        contracts for that fiscal year, using the statistical 
        methodology used by the Federal agency during each of the 2 
        preceding fiscal years.
    ``(B)(i) Not less than 45 days before issuing any waiver or 
permissive letter allowing any Federal agency or group of agencies to 
make any change in statistical methodology described in subparagraph 
(A)(iii), the Administration shall submit to the Committees on Small 
Business of the House of Representatives and the Senate, and to the 
Chief Counsel for Advocacy of the Administration, a copy of that waiver 
or letter.
    ``(ii) Not later than 30 days after the submission of a waiver or 
letter under clause (i), the Chief Counsel for Advocacy of the 
Administration shall submit to the Committees on Small Business of the 
House of Representatives and the Senate, and to each affected Federal 
agency, the written comments of the Chief Counsel regarding the 
appropriateness of the decision of the Administration to issue the 
waiver or letter.''; and
            (3) in paragraph (4), as redesignated, by striking 
        ``paragraph (2)'' and inserting ``paragraphs (2) and (3)''.

SEC. 206. ASSISTANCE FOR VETERANS.

    (a) Definitions.--Section 3 of the Small Business Act (15 U.S.C. 
632) is amended by adding at the end the following:
    ``(q) Definitions Relating to Veterans.--In this Act:
            ``(1) Service-disabled veteran.--The term `service-disabled 
        veteran' means a veteran with a disability that is service-
        connected (as defined in section 101(16) of title 38, United 
        States Code).
            ``(2) Small business concern owned and controlled by 
        service-disabled veterans.--The term `small business concern 
        owned and controlled by service-disabled veterans' means a 
        small business concern--
                    ``(A) not less than 51 percent of which is owned by 
                1 or more service-disabled veterans or, in the case of 
                any publicly owned business, not less than 51 percent 
                of the stock of which is owned by 1 or more service-
                disabled veterans; and
                    ``(B) the management and daily business operations 
                of which are controlled by 1 or more service-disabled 
                veterans.
            ``(3) Small business concern owned and controlled by 
        veterans.--The term `small business concern owned and 
        controlled by veterans' means a small business concern--
                    ``(A) not less than 51 percent of which is owned by 
                1 or more veterans or, in the case of any publicly 
                owned business, not less than 51 percent of the stock 
                of which is owned by 1 or more veterans; and
                    ``(B) the management and daily business operations 
                of which are controlled by 1 or more veterans.
            ``(4) Veteran.--The term `veteran' has the meaning given 
        the term in section 101(2) of title 38, United States Code.''.
    (b) Office of Veterans Business Development.--
            (1) Associate administrator for veterans business 
        development.--Section 4(b)(1) of the Small Business Act (15 
        U.S.C. 633(b)(1)) is amended--
                    (A) in the fifth sentence, by striking ``four'' and 
                inserting ``5''; and
                    (B) by inserting after the fifth sentence the 
                following: ``One shall be the Associate Administrator 
                for Veterans Business Development, who shall administer 
                the Office of Veterans Business Development established 
                under section 32.''.
            (2) Establishment of office.--The Small Business Act (15 
        U.S.C. 631 et seq.) is amended--
                    (A) by redesignating section 32 as section 33; and
                    (B) by inserting after section 31 the following:

``SEC. 32. VETERANS PROGRAMS.

    ``(a) Office of Veterans Business Development.--
            ``(1) Establishment.--There is established in the 
        Administration an Office of Veterans Business Development, 
        which shall be administered by the Associate Administrator for 
        Veterans Business Development (in this section referred to as 
        the `Associate Administrator') appointed under section 4(b)(1).
            ``(2) Associate administrator for veterans business 
        development.--The Associate Administrator shall be--
                    ``(A) a career appointee in the competitive service 
                or in the Senior Executive Service; and
                    ``(B) responsible for the formulation and execution 
                of the policies and programs of the Administration that 
                provide assistance to small business concerns owned and 
                controlled by veterans and small business concerns 
                owned and controlled by service-disabled veterans.
    ``(b) Advisory Committee on Veterans Business Affairs.--
            ``(1) In general.--There is established an advisory 
        committee to be known as the Advisory Committee on Veterans 
        Business Affairs (in this subsection referred to as the 
        `Committee'), which shall serve as an independent source of 
        advice and policy recommendations to the Administrator (through 
        the Associate Administrator), to Congress, and to the 
        President.
            ``(2) Membership.--
                    ``(A) In general.--The Committee shall be composed 
                of 15 members, each of whom shall be appointed by the 
                Administrator, of whom--
                            ``(i) 8 shall be veterans who are owners of 
                        small business concerns; and
                            ``(ii) 7 shall be representatives of 
                        national veterans service organizations.
                    ``(B) Political affiliation.--Not more than 8 
                members of the Committee shall be of the same political 
                party as the President.
                    ``(C) Prohibition on federal employment.--No member 
                of the Committee may be an officer or employee of the 
                Federal Government. If any member of the Committee 
                commences employment as an officer or employee of the 
                Federal Government after the date on which the member 
                is appointed to the Committee, the member may continue 
                to serve as a member of the Committee for not more than 
                30 days after the date on which the member commences 
                employment as such an officer or employee.
                    ``(D) Service term.--Each member of the Committee 
                shall serve for a term of 3 years.
                    ``(E) Vacancies.--Not later than 30 days after the 
                date on which a vacancy in the membership of the 
                Committee occurs, the vacancy be filled in the same 
                manner as the original appointment.
                    ``(F) Chairperson.--The Committee shall select a 
                Chairperson from among the members of the Committee. 
                Any vacancy in the office of the Chairperson of the 
                Committee shall be filled by the Committee at the first 
                meeting of the Committee following the date on which 
                the vacancy occurs.
                    ``(G) Initial appointments.--Not later than 60 days 
                after the date of enactment of this Act, the 
                Administrator shall appoint the initial members of the 
                Committee.
            ``(3) Duties.--The Committee shall--
                    ``(A) review, coordinate, and monitor plans and 
                programs developed in the public and private sectors, 
                that affect the ability of veteran-owned business 
                enterprises to obtain capital and credit;
                    ``(B) promote and assist in the development of 
                business information and surveys relating to veterans;
                    ``(C) monitor 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 veteran's business enterprises;
                    ``(D) develop and promote new initiatives, 
                policies, programs, and plans designed to foster 
                veteran's business enterprises; and
                    ``(E) advise and assist in the design of a 
                comprehensive plan, which shall be updated annually, 
                for joint public-private sector efforts to facilitate 
                growth and development of veteran's business 
                enterprises.
            ``(4) Powers.--
                    ``(A) Hearings.--The Committee may hold such 
                hearings, sit and act at such times and places, take 
                such testimony, and receive such evidence as the 
                Committee considers advisable to carry out the duties 
                of the Committee under this subsection.
                    ``(B) Information from federal agencies.--The 
                Committee may secure directly from any department or 
                agency of the Federal Government such information as 
                the Committee considers to be necessary to carry out 
                the duties of the Committee under this subsection. Upon 
                request of the Chairperson of the Committee, the head 
                of such department or agency shall furnish such 
                information to the Committee.
                    ``(C) Postal services.--The Committee may use the 
                United States mails in the same manner and under the 
                same conditions as other departments and agencies of 
                the Federal Government.
                    ``(D) Gifts.--The Committee may accept, use, and 
                dispose of gifts or donations of services or property.
            ``(5) Meetings.--
                    ``(A) In general.--The Committee shall meet not 
                less than biannually at the call of the Chairperson, 
                and otherwise upon the request of the Administrator.
                    ``(B) Location.--Each meeting of the full Committee 
                shall be held at the headquarters of the Administration 
                located in Washington, District of Columbia. The 
                Administrator shall provide suitable meeting facilities 
                and such administrative support as may be necessary for 
                each meeting of the Committee.
            ``(6) Personnel matters.--
                    ``(A) No compensation.--Members of the Committee 
                shall serve without compensation for their services to 
                the Committee.
                    ``(B) Travel expenses.--The members of the 
                Committee shall be reimbursed for travel and 
                subsistence expenses in the same manner and to the same 
                extent as members of advisory boards and committees 
                under section 8(b)(13).
    ``(c) Score Program.--The Administrator shall enter into a 
memorandum of understanding with the Service Core of Retired Executives 
(in this subsection referred to as `SCORE') participating in the 
program under section 8(b)(1)(B) for--
            ``(1) the appointment by SCORE in its national office of a 
        National Veterans Business Coordinator, whose exclusive duties 
        shall be those relating to veterans' business matters, and who 
        shall be responsible for the establishment and administration 
        of a program to provide entrepreneurial counseling and training 
        to veterans through the chapters of SCORE throughout the United 
        States;
            ``(2) the establishment and maintenance of a toll-free 
        telephone number and an Internet website to provide access for 
        veterans to information about the entrepreneurial services 
        available to veterans through SCORE; and
            ``(3) the collection of statistics concerning services 
        provided by SCORE to veterans and service-disabled veterans and 
        the inclusion of those statistics in each annual report 
        published by the Administrator under section 4(b)(2)(B).
    ``(d) Annual Report.--Beginning on March 31, 2000, and on March 31 
of each year thereafter, the Administrator shall submit to the 
Committees on Small Business of the House of Representative and the 
Senate a report on the needs of small business concerns owned by 
controlled by veterans and small business concerns owned and controlled 
by service-disabled veterans, which shall include--
            ``(1) the availability of programs of the Administration 
        for and the degree of utilization of those programs by those 
        small business concerns during the 12-month period preceding 
        the date on which the report is submitted;
            ``(2) the percentage and dollar value of Federal contracts 
        awarded to those small business concerns during the 12-month 
        period preceding the date on which the report is submitted; and
            ``(3) proposed methods to improve delivery of all Federal 
        programs and services that could benefit those small business 
        concerns.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,500,000 for each fiscal 
year.''.
    (c) Office of Advocacy.--Section 202 of Public Law 94-305 (15 
U.S.C. 634b) is amended--
            (1) in paragraph (10), by striking ``and'' at the end;
            (2) in paragraph (11), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(12) evaluate the efforts of each Federal agency and of 
        private industry to assist small business concerns owned and 
        controlled by veterans and small business concerns owned and 
        controlled by service-disabled veterans, and make appropriate 
        recommendations to the Administrator and to Congress in order 
        to promote the establishment and growth of those small business 
        concerns.''.
    (d) Microloan Program.--Section 7(m)(1)(A)(i) of the Small Business 
Act (15 U.S.C. 636(m)(1)(A)(i)) is amended by striking ``low-income, 
and'' and inserting ``low-income individuals, veterans,''.

SEC. 207. SECTION 7(A) LOAN PROGRAM.

    Section 7(a)(4) of the Small Business Act (15 U.S.C. 636(a)(4)) is 
amended--
            (1) by striking ``(4)'' and all that follows through 
        ``Notwithstanding'' and inserting the following:
            ``(4) Interest rates.--Notwithstanding''; and
            (2) by striking subparagraph (B).

SEC. 208. DISASTER MITIGATION PILOT PROGRAM.

    (a) In General.--Section 7(b)(1) of the Small Business Act (15 
U.S.C. 636(b)(1)) is amended--
            (1) in subparagraph (B), by adding ``and'' at the end; and
            (2) by adding at the end the following:
            ``(C) during fiscal years 1999 through 2003, to establish a 
        pre-disaster mitigation program to make such loans (either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred (guaranteed) basis), as the Administrator may 
        determine to be necessary or appropriate, to enable small 
        businesses to install mitigation devices or to take preventive 
        measures to protect against disasters, in support of a formal 
        mitigation program established by the Federal Emergency 
        Management Agency, except that no loan or guarantee shall be 
        extended to a small business under this subparagraph unless the 
        Administration finds that the small business is otherwise 
        unable to obtain credit for the purposes described in this 
        subparagraph;''.
    (b) Authorization of Appropriations.--Section 20 of the Small 
Business Act (15 U.S.C. 631 note) is amended by adding at the end the 
following:
    ``(f) Disaster Mitigation Pilot Program.--The following program 
levels are authorized for loans under section 7(b)(1)(C):
            ``(1) $15,000,000 for fiscal year 1999.
            ``(2) $15,000,000 for fiscal year 2000.
            ``(3) $15,000,000 for fiscal year 2001.
            ``(4) $15,000,000 for fiscal year 2002.
            ``(5) $15,000,000 for fiscal year 2003.''.
    (c) Evaluation.--On January 31, 2001, the Administrator of the 
Small Business Administration shall submit to the Committees on Small 
Business of the House of Representatives and the Senate a report on the 
effectiveness of the pilot program authorized by section 7(b)(1)(C) of 
the Small Business Act (15 U.S.C. 636(b)(1)(C)), as added by subsection 
(a) of this subsection, which report shall include--
            (1) information relating to--
                    (A) the areas served under the pilot program;
                    (B) the number and dollar value of loans made under 
                the pilot program; and
                    (C) the estimated savings to the Federal Government 
                resulting from the pilot program; and
            (2) other such information as the Administrator determines 
        to be appropriate in evaluating the pilot program.

SEC. 209. MICROLOAN PROGRAM.

    (a) In General.--Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended--
            (1) in paragraph (7)--
                    (A) by striking ``(7)'' and all that follows 
                through ``During the program'' and inserting the 
                following:
            ``(7) Program funding for microloans.--During the 
        program''; and
                    (B) by striking subparagraph (B); and
            (2) in paragraph (8)--
                    (A) by inserting ``and providing funding to 
                intermediaries'' after ``program applicants''; and
                    (B) by inserting ``and provide funding to'' after 
                ``shall select''.
    (b) Loan Loss Reserve.--Section 7(m)(3)(D) of the Small Business 
Act (15 U.S.C. 636(m)(3)(D)) is amended--
            (1) in the first sentence, by striking ``The 
        Administrator'' and inserting the following:
                            ``(i) In general.--The Administrator''; and
            (2) by striking the second sentence and inserting the 
        following:
                            ``(ii) Level of loan loss reserve fund.--
                                    ``(I) In general.--Subject to 
                                subclause (II), the Administration 
                                shall require the loan loss reserve 
                                fund to be maintained at a level equal 
                                to not more than 15 percent of the 
                                outstanding balance of the microloans 
                                owed to the intermediary.
                                    ``(II) Reduction of loan loss 
                                reserve requirement.--After the initial 
                                5 years of an intermediary's 
                                participation in the program under this 
                                subsection, upon the initial request of 
                                the intermediary made at any time after 
                                that period, the Administrator shall 
                                annually conduct a review of the 
                                average annual loss rate of the 
                                intermediary and, if the intermediary 
                                demonstrates to the satisfaction of the 
                                Administrator that the average annual 
                                loss rate for the intermediary during 
                                the preceding 5-year period is less 
                                than 15 percent, and the Administrator 
                                determines that no other factor exists 
                                that is likely to impair the ability of 
                                the intermediary to repay all 
                                obligations owed to the Administration 
                                under this subsection, the 
                                Administrator shall reduce that annual 
                                loan loss reserve requirement to 
                                reflect the actual average annual loss 
                                rate for that intermediary during that 
                                period, except that in no case shall 
                                the loan loss reserve requirement for 
                                an intermediary be reduced to less than 
                                10 percent of the outstanding balance 
                                of the microloans owed to the 
                                intermediary.''.

SEC. 210. REAL ESTATE APPRAISALS.

    (a) Small Business Investment Act of 1958.--Section 502(3) of the 
Small Business Investment Act of 1958 (15 U.S.C. 696(3)) is amended by 
adding at the end the following:
                    ``(F) Real estate appraisals.--
                            ``(i) Loans exceeding $250,000.--
                        Notwithstanding any other provision of law, if 
                        a loan under this section involves the use of 
                        more than $250,000 of the loan proceeds for a 
                        real estate transaction, prior to disbursement 
                        of the loan, the Administrator shall require an 
                        appraisal of the real estate by a State 
                        licensed or certified appraiser.
                            ``(ii) Loans of $250,000 or less.--
                        Notwithstanding any other provision of law, if 
                        a loan under this subsection involves the use 
                        of $250,000 or less of the loan proceeds for a 
                        real estate transaction, prior to disbursement 
                        of the loan, the participating lender may, in 
                        accordance with the policy of the participating 
                        lender with respect to loans made without a 
                        government guarantee, require an appraisal of 
the real estate by a State licensed or certified appraiser.
                            ``(iii) Definition.--In this subparagraph, 
                        the term `real estate transaction' includes the 
                        acquisition or construction of land or a 
                        building and any improvement to land or to a 
                        building.''.
    (b) Small Business Act.--Section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) is amended by adding at the end the following:
            ``(27) Real estate appraisals.--
                    ``(A) Loans exceeding $250,000.--Notwithstanding 
                any other provision of law, if a loan guaranteed under 
                this subsection involves the use of more than $250,000 
                of the loan proceeds for a real estate transaction, 
                prior to disbursement of the loan, the Administrator 
                shall require an appraisal of the real estate by a 
                State licensed or certified appraiser.
                    ``(B) Loans of $250,000 or less.--Notwithstanding 
                any other provision of law, if a loan guaranteed under 
                this subsection involves the use of $250,000 or less of 
                the loan proceeds for a real estate transaction, prior 
                to disbursement of the loan, the participating lender 
                may, in accordance with the policy of the participating 
                lender with respect to loans made without a government 
                guarantee, require an appraisal of the real estate by a 
                State licensed or certified appraiser.
                    ``(C) Definition.--In this paragraph, the term 
                `real estate transaction' includes the acquisition or 
                construction of land or a building and any improvement 
                to land or to a building.''.

SEC. 211. COMMUNITY DEVELOPMENT VENTURE CAPITAL DEMONSTRATION PROGRAM.

    (a) Findings.--Congress finds that--
            (1) there is a need for the development and expansion of 
        organizations that provide private equity capital to smaller 
        businesses in areas in which equity-type capital is scarce, 
        such as inner cities and rural areas, in order to create and 
        retain jobs for low-income residents of those areas;
            (2) to invest successfully in smaller businesses, 
        particularly in inner cities and rural areas, requires highly 
        specialized investment and management skills;
            (3) there is a shortage of professionals who possess such 
        skills and there are few training grounds for individuals to 
        obtain those skills;
            (4) providing assistance to organizations that provide 
        specialized technical assistance and training to individuals 
        and organizations seeking to enter or expand in this segment of 
        the market would stimulate small business development and 
        entrepreneurship in economically distressed communities; and
            (5) assistance from the Federal Government could act as a 
        catalyst to attract investment from the private sector and 
        would help to develop a specialized venture capital industry 
        focused on creating jobs, increasing business ownership, and 
        generating wealth in low-income communities.
    (b) Community Development Venture Capital Activities.--The Small 
Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 33 (as redesignated by section 
        206(b)(2) of this Act) as section 34; and
            (2) by inserting after section 32 (as added by section 
        206(b)(2) of this Act) the following:

``SEC. 33. COMMUNITY DEVELOPMENT VENTURE CAPITAL ACTIVITIES.

    ``(a) Definitions.--In this section:
            ``(1) Community development venture capital organization.--
        The term `community development venture capital organization' 
        means a privately-controlled organization that--
                    ``(A) has a primary mission of promoting community 
                development in low-income communities, as defined by 
                the Administrator, through investment in private 
                business enterprises; or
                    ``(B) administers or is in the process of 
                establishing a community development venture capital 
                fund for the purpose of making equity investments in 
                private business enterprises in such communities.
            ``(2) Developmental organization.--The term `developmental 
        organization'--
                    ``(A) means a public or private entity, including a 
                college or university, that provides technical 
                assistance to community development venture capital 
                organizations or that conducts research or training in 
                community development venture capital investment; and
                    ``(B) may include an intermediary organization.
            ``(3) Intermediary organization.--The term `intermediary 
        organization'--
                    ``(A) means a private, nonprofit entity that has--
                            ``(i) a primary mission of promoting 
                        community development through investment in 
                        private businesses in low-income communities; 
                        and
                            ``(ii) significant prior experience in 
                        providing technical assistance or financial 
                        assistance to community development venture 
                        capital organizations;
                    ``(B) may include community development venture 
                capital organizations.
    ``(b) Authority.--In order to promote the development of community 
development venture capital organizations, the Administrator, may--
            ``(1) enter into contracts with 1 or more developmental 
        organizations to carry out training and research activities 
        under subsection (c); and
            ``(2) make grants in accordance with this section--
                    ``(A) to developmental organizations to carry out 
                training and research activities under subsection (c); 
                and
                    ``(B) to intermediary organizations to provide 
                intensive marketing, management, and technical 
                assistance and training to community development 
                venture capital organizations under subsection (d).
    ``(c) Training and Research Activities.--
            ``(1) In general.--Subject to paragraph (2), a 
        developmental organization that receives a grant under 
        subsection (b) shall use the funds made available through the 
        grant for 1 or more of the following training and research 
        activities:
                    ``(A) Strengthening professional skills.--Creating 
                and operating training programs to enhance the 
                professional skills for individuals in community 
                development venture capital organizations or operating 
                private community development venture capital funds.
                    ``(B) Increasing interest in community development 
                venture capital.--Creating and operating a program to 
                select and place students and recent graduates from 
                business and related professional schools as interns 
                with community development venture capital 
                organizations and intermediary organizations for a 
                period of up to 1 year, and to provide stipends for 
                such interns during the internship period.
                    ``(C) Promoting `best practices'.--Organizing an 
                annual national conference for community development 
                venture capital organizations to discuss and share 
                information on the best practices regarding issues 
                relevant to the creation and operation of community 
                development venture capital organizations.
                    ``(D) Mobilizing academic resources.--Encouraging 
                the formation of 1 or more centers for the study of 
                community development venture capital at graduate 
                schools of business and management; providing funding 
                for the development of materials for courses on topics 
                in this area; and providing funding for research on 
                economic, operational, and policy issues relating to 
                community development venture capital.
            ``(2) Limitation.--The Administrator shall ensure that not 
        more than 25 percent of the amount made available to carry out 
        this section is used for activities described in paragraph (1).
    ``(d) Intensive Marketing, Management, and Technical Assistance and 
Training.--An intermediary organization that receives a grant under 
subsection (b) shall use the funds made available through the grant to 
provide intensive marketing, management, and technical assistance and 
training to promote the development of community development venture 
capital organizations, which assistance may include grants to community 
development venture capital organizations for the start up costs and 
operating support of those organizations.
    ``(e) Matching Requirement.--The Administrator shall require, as a 
condition of any grant made to an intermediary organization under this 
section, that a matching amount equal to the amount of such grant be 
provided from sources other than the Federal Government.
    ``(f) Requirements.--The Administrator may promulgate such 
regulations as may be necessary to carry out this section, which 
regulations may take effect upon issuance.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section a total of $20,000,000 for 
fiscal years 1999 through 2002.''.

SEC. 212. TECHNICAL AMENDMENTS.

    (a) Small Business Act.--Section 3(p) of the Small Business Act (15 
U.S.C. 632(p)) is amended--
            (1) in paragraph (1)(A), by inserting ``located in a 
        metropolitan statistical area (as defined in section 
        143(k)(2)(B) of the Internal Revenue Code of 1986)'' before the 
        semicolon;
            (2) in paragraph (3)(B), by striking ``; or'' at the end 
        and inserting a period; and
            (3) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``(I)''; and
                    (B) in subparagraph (B)--
                            (i) in clause (ii), by striking ``(ii)'' 
                        and inserting ``(II)''; and
                            (ii) in clause (i), by striking 
                        ``Department of Commerce'' and all that follows 
                        through ``median household'' and inserting the 
                        following: ``Department of Commerce, is not 
                        located in a metropolitan statistical area (as 
                        defined in section 143(k)(2)(B) of the Internal 
                        Revenue Code of 1986); and
                            ``(ii)(I) in which the median household''.
    (b) Small Business Investment Act of 1958.--Section 101 of the 
Small Business Investment Act of 1958 (15 U.S.C. 661 note) is amended 
by striking the table of contents.

    TITLE III--SMALL BUSINESS ENVIRONMENTAL ASSISTANCE PILOT PROGRAM

SEC. 301. PILOT PROGRAM.

    The Small Business Act (15 U.S.C. 637 et seq.) is amended by 
inserting after section 21A the following:

``SEC. 21B. SMALL BUSINESS ENVIRONMENTAL ASSISTANCE PILOT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Advisory committee.--The term `Advisory Committee' 
        means the Advisory Committee on Small Business Environmental 
        Assistance Programs established under subsection (b).
            ``(2) Advocacy chair.--The term `Advocacy Chair' means the 
        Chair of Small Business Advocacy of the Environmental 
        Protection Agency.
            ``(3) Assistant administrator.--The term `Assistant 
        Administrator' means the Assistant Administrator for Small 
        Business Development Centers of the Administration.
            ``(4) Chief counsel.--The term `Chief Counsel' means the 
        Chief Counsel of the Office of Advocacy of the Administration.
            ``(5) EPA administrator.--The term `EPA Administrator' 
        means the Administrator of the Environmental Protection Agency.
            ``(6) Participating small business development center.--The 
        term `participating small business development center' means a 
        small business development center selected under subsection (c) 
        to participate in the demonstration program under this section.
            ``(7) Small business development center.--The term `small 
        business development center'--
                    ``(A) means a small business development center 
                established pursuant to section 21; and
                    ``(B) includes a consortium of 2 or more small 
                business development centers.
    ``(b) Advisory Committee on Small Business Environmental Assistance 
Programs.--
            ``(1) In general.--There is established an advisory 
        committee to be known as the Advisory Committee on Small 
        Business Environmental Assistance Programs which shall provide 
        advice and recommendations to the Administration, the EPA 
        Administrator, and Congress on the manner in which to enhance 
        existing programs designed to improve the environmental 
        performance of small businesses.
            ``(2) Membership.--
                    ``(A) In general.--The Advisory Committee shall be 
                composed of the following members:
                            ``(i) 1 member shall be the Chief Counsel, 
                        who shall serve as the Chairperson of the 
                        Advisory Committee.
                            ``(ii) 1 member shall be the Assistant 
                        Administrator.
                            ``(iii) 1 member shall be the Advocacy 
                        Chair.
                            ``(iv) Not more than 15 additional members, 
                        each of whom shall be appointed by the Chief 
                        Counsel after consultation with the Assistant 
                        Administrator and the Advocacy Chair, of whom--
                                    ``(I) not more than 7 members shall 
                                be representatives of small business 
                                concerns or trade associations of small 
                                business concerns;
                                    ``(II) not more than 4 members 
                                shall be representatives of small 
                                business development centers selected 
                                by the Assistant Administrator; and
                                    ``(III) not more than 4 members 
                                shall be representatives of small 
                                business technical assistance programs 
                                selected by the EPA Administrator.
                    ``(B) Service of members.--Each member of the 
                Advisory Committee shall serve for a term of 1 year.
                    ``(C) Vacancies.--If a vacancy in the membership of 
                the Advisory Committee occurs, the vacancy shall be 
                filled at the discretion of the Advisory Committee.
                    ``(D) Appointments.--Not later than 60 days after 
                the date of enactment of this subsection, the Chief 
                Counsel shall appoint the members of the Advisory 
                Committee.
            ``(3) Duties.--The Advisory Committee shall--
                    ``(A) review each program under the jurisdiction of 
                the Administration or the EPA Administrator that is 
                designed to assist the small business concerns in 
                complying with environmental laws and regulations or to 
                enhance the environmental performance of small business 
                concerns, including the programs established under 
                section 21 of this Act, section 213 of the Small 
                Business Regulatory Enforcement Fairness Act of 1996, 
                and section 507 of the Clean Air Act;
                    ``(B) develop a strategy to enhance the efficacy of 
                the programs described in subparagraph (A) in assisting 
                small businesses to comply with environmental laws and 
                regulations and improve their environmental performance 
                through such means as--
                            ``(i) improved techniques for measuring 
                        program achievement;
                            ``(ii) innovative compliance assistance 
                        demonstration projects; and
                            ``(iii) strengthening the capabilities of 
                        State and local programs;
                    ``(C) develop recommendations regarding the types 
                of pilot programs that would implement the strategy 
                developed under subparagraph (B); and
                    ``(D) not later than September 30, 1999, submit to 
                the Administration, the EPA Administrator, and the 
                Committees on Small Business of the House of 
                Representatives and the Senate, a report on the 
                strategy developed under subparagraph (B) and the 
                recommendations developed under subparagraph (C).
            ``(4) Powers.--
                    ``(A) Information from federal agencies.--The 
                Advisory Committee may secure directly from any 
                department or agency of the Federal Government such 
                information as the Advisory Committee considers to be 
                necessary to carry out the duties of the Advisory 
                Committee under this subsection. Upon request of the 
                Chairperson of the Advisory Committee, the head of such 
                department or agency shall furnish such information to 
                the Advisory Committee.
                    ``(B) Gifts and donations.--The Advisory Committee 
                may accept, use, and dispose of gifts or donations of 
                services or property.
            ``(5) Meetings.--
                    ``(A) In general.--The Advisory Committee shall 
                meet not less than twice during fiscal year 1999, and 
                otherwise upon request of the Chief Counsel.
                    ``(B) Location.--Each meeting of the Advisory 
                Committee shall be held at the office of the Chief 
                Counsel located in Washington, D.C., or such other 
                location as the Chief Counsel may specify. The Chief 
                Counsel shall provide suitable meeting facilities and 
                such administrative support as may be necessary for 
                each meeting of the Advisory Committee.
            ``(6) Personnel matters.--
                    ``(A) No compensation.--Members of the Advisory 
                Committee shall serve without compensation for their 
                services to the Advisory Committee.
                    ``(B) Travel expenses.--The members of the Advisory 
                Committee shall be reimbursed for travel and 
                subsistence expenses in the same manner and to the same 
                extent as members of Regional Small Business Regulatory 
                Fairness Boards established under section 30(c).
                    ``(C) Independent national assessment.--Not later 
                than March 1, 2003, the Comptroller General of the 
                United States shall submit to the Committees on Small 
                Business of the House of Representatives and the Senate 
                an evaluation of the demonstration program established 
                under this section. The criteria for such evaluation 
                shall be based on the strategy and recommendation in 
                the Advisory Committee report and developed under the 
                direction of the Committees on Small Business of the 
                House of Representatives and the Senate.
            ``(7) Termination.--The Advisory Committee shall terminate 
        on the date on which the report is submitted under subsection 
        (b)(3)(D).
    ``(c) Demonstration Program.--
            ``(1) Notice of program establishment.--Not later than 60 
        days after the date on which the Advisory Committee submits the 
        report under subsection (b)(3)(D), the Administration shall 
        publish in the Federal Register a notice of the demonstration 
        program under this section, which shall include application 
        requirements for small business development centers seeking to 
        participate in the program, including selection criteria based 
        on the strategy and recommendation included in the report of 
        the Advisory Committee under subsection (b)(3)(D).
            ``(2) Applications.--Not later than 60 days after the date 
        on which the notice is published under paragraph (1), each 
        small business development center seeking to participate in the 
        pilot program under this section shall submit to the 
        Administration an application that meets the requirements 
        described in paragraph (1).
            ``(3) Selection of participating small business development 
        centers.--
                    ``(A) In general.--Not later than 90 days after the 
                date on which the notice is published under paragraph 
                (1), the Administration shall select, from among 
                applicants under paragraph (2), 10 small business 
                development centers to participate in the demonstration 
                program under this section.
                    ``(B) Additional selection criteria.--In carrying 
                out subparagraph (A), the Administration shall--
                            ``(i) give highest priority to applicants 
                        that--
                                    ``(I) form a partnership between 
                                small business development centers and 
                                State small business stationary source 
                                technical and compliance assistance 
                                programs (established under section 507 
                                of the Clean Air Act) or other 
                                environmental assistance providers, 
                                including trade associations; and
                                    ``(II) demonstrate a cooperative 
                                approach utilizing the relative 
                                strengths of each; and
                            ``(ii) to the extent practicable, select 1 
                        small business development center from each 
                        region of the United States for which there is 
                        a regional office of the Environmental 
                        Protection Agency.
    ``(d) Grants to Participating Small Business Development Centers.--
            ``(1) In general.--Not later than 60 days after the date on 
        which the Administration selects a small business development 
        center to receive a grant, the Administration shall make a 
        grant to the participating small business development center.
            ``(2) Grant amount.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                total amount made available under this subsection to a 
                participating small business development center for any 
                fiscal year shall be not more than $400,000.
                    ``(B) Exception.--Amounts made available to a small 
                business development center by the Administration or 
                another agency to carry out section 21(c)(3)(G) shall 
                not be included in the calculation of maximum funding 
                of a small business development center under 
                subparagraph (A).
                    ``(C) No matching requirement.--Notwithstanding 
                section 21(a)(4), the Administration shall not require, 
                as a condition of any grant made to a small business 
                development center under this subsection, that a 
                matching amount be provided from sources other than the 
                Federal Government.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section--
                    ``(A) $500,000 for fiscal year 1999, which shall be 
                used for direct support and reimbursement for costs of 
                the Advisory Committee; and
                    ``(B) $4,000,000 for each of fiscal years 2000 
                through 2003, of which not more than 6 percent may be 
                used for administrative expenses.
            ``(2) Administrative costs.--
                    ``(A) In general.--Not more than 6 percent of the 
                amount made available under paragraph (1)(B) in each 
                fiscal year may be used by the Administration for the 
                costs of administration, evaluation, and reporting 
                under this section, which shall include costs 
                associated with the employee designated under 
                subparagraph (B).
                    ``(B) Full-time employee.--The Administration shall 
                designate an employee of the Administration to assist 
                in administering the pilot program under this section 
                on a full-time basis.''.
            Amend the title to read as follows: ``An Act to amend the 
        Small Business Act and the Small Business Investment Act of 
        1958 to provide for a pilot loan guarantee program to address 
        Year 2000 problems of small business concerns and to improve 
        the programs of the Small Business Administration, and for 
        other purposes.''.