[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1568 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 1568
To provide technical, financial, and procurement assistance to veteran
owned small businesses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 27, 1999
Mr. Talent (for himself, Mr. Stump, Mrs. McCarthy, of New York, Mr.
Evans, Mr. Quinn, Mr. Phelps, Mr. Moran of Kansas, Mr. Filner, Mr.
Bartlett of Maryland, Mrs. Kelly, and Mr. Pascrell) introduced the
following bill; which was referred to the Committee on Small Business,
and in addition to the Committee on Veterans' Affairs, for a period to
be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To provide technical, financial, and procurement assistance to veteran
owned small businesses, 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.
This Act may be cited as the ``Veterans Entrepreneurship and Small
Business Development Act of 1999''.
SEC. 2. TABLE OF CONTENTS.
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--GENERAL PROVISIONS
Sec. 101. Findings.
Sec. 102. Purpose.
Sec. 103. Definitions.
TITLE II--VETERANS BUSINESS DEVELOPMENT
Sec. 201. Veterans business development in the Small Business
Administration.
Sec. 202. National Veterans Business Development Corporation.
Sec. 203. Advisory Committee on Veterans Business Affairs.
TITLE III--TECHNICAL ASSISTANCE
Sec. 301. SCORE program.
Sec. 302. Entrepreneurial assistance.
TITLE IV--FINANCIAL ASSISTANCE
Sec. 401. General business loan program.
Sec. 402. Loans to individuals called to active duty in the Armed
Forces.
Sec. 403. Microloan program.
Sec. 404. Delta loan program.
Sec. 405. State development company program.
TITLE V--PROCUREMENT ASSISTANCE
Sec. 501. Subcontracting.
Sec. 502. Participation in Federal procurement.
TITLE VI--REPORTS AND DATA COLLECTION
Sec. 601. Reporting requirements.
Sec. 602. Report on small business and competition.
Sec. 603. Annual report of the Administrator.
Sec. 604. Data and information collection.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Administrator's order.
Sec. 702. Small Business Administration Office of Advocacy.
Sec. 703. Study of fixed-asset small business loans.
TITLE I--GENERAL PROVISIONS
SEC. 101. FINDINGS.
Congress finds the following:
(1) Veterans of the United States Armed Forces have been
and continue to be vital to the small business enterprises of
the United States;
(2) In serving the United States, veterans often faced
great risks to preserve the American dream of freedom and
prosperity.
(3) The United States has done too little to assist
veterans, particularly service-disabled veterans, in playing a
greater role in the economy of the United States by forming and
expanding small business enterprises.
(4) Medical advances and new medical technologies have made
it possible for service-disabled veterans to play a much more
active role in the formation and expansion of small business
enterprises in the United States.
(5) The United States must provide additional assistance
and support to veterans to better equip them to form and expand
small business enterprises, thereby enabling them to realize
the American dream that they fought to protect.
SEC. 102. PURPOSE.
The purpose of this Act is to expand existing and establish new
assistance programs for veterans who own or operate small businesses.
This Act accomplishes this purpose by--
(1) expanding the eligibility for certain small business
assistance programs to include veterans;
(2) directing certain departments and agencies of the
United States to take actions that enhance small business
assistance to veterans; and
(3) establishing new institutions to provide small business
assistance to veterans or to support the institutions that
provide such assistance.
SEC. 103. DEFINITIONS.
(a) Small Business Act.--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.--For the purposes of this
Act the following definitions shall apply:
``(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 or, in the case of a veteran with permanent
and severe disability, the spouse or permanent
caregiver of such veteran.
``(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) Applicability to This Act.--In this Act, the definitions
contained in section 3(q) of the Small Business Act, as added by this
section, shall apply.
TITLE II--VETERANS BUSINESS DEVELOPMENT
SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE SMALL BUSINESS
ADMINISTRATION.
(a) In General.--Section 4(b)(1) of the Small Business Act (15
U.S.C. 633(b)(1)) is amended--
(1) in the 5th sentence, by striking ``four Associate
Administrators'' and inserting ``five Associate
Administrators''; and
(2) by inserting after the 5th sentence the following:
``One such Associate Administrator shall be the Associate
Administrator for Veterans Business Development, who shall
administer the Office of Veterans Business Development
established under section 32.''.
(b) Office of Veterans Business Development; Associate
Administrator.--The Small Business Act (15 U.S.C. 631 et seq.) is
further amended--
(1) by redesignating section 32 as section 34; and
(2) by inserting after section 31 the following:
``SEC. 32. VETERANS PROGRAMS.
``(a) Office of Veterans Business Development.--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).
``(b) Associate Administrator for Veterans Business Development.--
The Associate Administrator--
``(1) shall be an appointee in the Senior Executive
Service;
``(2) shall be responsible for the formulation, execution,
and promotion of 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. The Associate
Administrator shall act as an ombudsman for full consideration
of veterans in all programs of the Administration; and
``(3) shall report to and be responsible directly to the
Administrator.''.
SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.
The Small Business Act (15 U.S.C. 631 et seq.) is further amended
by adding after section 32 (as added by this Act) the following:
``SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.
``(a) Establishment.--There is established a federally chartered
corporation known as the National Veterans Business Development
Corporation (in this section referred to as the ``Corporation'') which
shall be incorporated under the laws of the District of Columbia and
which shall have the powers granted in this section.
``(b) Purposes of the Corporation.--The purposes of the Corporation
shall be--
``(1) to expand the provision of and improve access to
technical assistance regarding entrepreneurship for the
Nation's veterans; and
``(2) to work with and organize public and private
resources, including but not limited to those of the Small
Business Administration, the Department of Veterans Affairs,
the Department of Labor, the Department of Commerce, the
Department of Defense, the Service Corps of Retired Executives
(described in section 8(b)(1)(B) of this Act), the Small
Business Development Centers (described in section 21 of this
Act), and the business development staffs of each department
and agency of the United States, to assist veterans, including
service-disabled veterans, with the formation and expansion of
small business concerns.
``(c) Board of Directors.--
``(1) In general.--The management of the Corporation shall
be vested in a Board of Directors composed of 9 voting members
and 3 nonvoting ex officio members.
``(2) Appointment of voting members.--The President shall
appoint United States citizens to be voting members of the
Board of Directors as follows:
``(A) 1 from a list of individuals nominated by the
chairman of the Committee on Small Business of the
House of Representatives.
``(B) 1 from a list of individuals nominated by the
chairman of the Committee on Small Business of the
Senate.
``(C) 1 from a list of individuals nominated by the
ranking minority member of the Committee on Small
Business of the House of Representatives.
``(D) 1 from a list of individuals nominated by the
ranking minority members of the Committee on Small
Business of the Senate.
``(E) 1 from a list of individuals nominated by the
chairman of the Committee on Veterans' Affairs of the
House of Representatives.
``(F) 1 from a list of individuals nominated by the
chairman of the Committee on Veterans' Affairs of the
Senate.
``(G) 1 from a list of individuals nominated by the
ranking minority member of the Committee on Veterans'
Affairs of the House of Representatives.
``(H) 1 from a list of individuals nominated the
ranking minority member of the Committee on Veterans'
Affairs of the Senate.
``(I) 1 of the President's own choosing.
``(3) Ex officio members.--The Administrator of the Small
Business Administration, the Secretary of Defense, and the
Secretary of Veterans Affairs shall serve as the nonvoting ex
officio members of the Board of Directors.
``(4) Chairperson.--The members of the Board of Directors
appointed under paragraph (2) shall elect one such member to
serve as chairperson of the Board of Directors for a term of 2
years.
``(5) Terms of appointed members.--
``(A) In general.--Each member of the Board of
Directors appointed under paragraph (2) shall serve a
term of 6 years, except as provided in subparagraph
(B).
``(B) Terms of initial appointees.--As designated
by the President at the time of appointment, of the
members first appointed--
``(i) 3 shall be for a term of 2 years; and
``(ii) 3 shall be for a term of 4 years.
``(C) Unexpired terms.--Any member of the Board of
Directors appointed to fill a vacancy occurring before
the expiration of the term for which the member's
predecessor was appointed shall be appointed only for
the remainder of the term. A member may serve after the
expiration of that member's term until a successor has
taken office.
``(6) Vacancies.--Any vacancy on the Board of Directors
shall be filled in the manner in which the original appointment
was made. In the case of a vacancy in the office of the
Administrator of the Small Business Administration or the
Secretary of Veterans Affairs, and pending the appointment of a
successor, an acting appointee for such vacancy may serve as an
ex officio member.
``(7) Ineligibility for other offices.--No voting member of
the Board of Directors may be an officer or employee of the
United States while serving as a member of the Board of
Directors or during the two-year period preceding such service.
``(8) Impartiality and nondiscrimination.--The Board of
Directors shall administer the affairs of the Corporation
fairly and impartially and without discrimination.
``(9) Obligations and expenses.--The Board of Directors
shall prescribe the manner in which the obligations of the
Corporation may be incurred and in which its expenses shall be
allowed and paid.
``(10) Quorum.--5 voting members of the Board of Directors
shall constitute a quorum, but a lesser number may hold
hearings.
``(d) Corporate Powers.--
``(1) In general.--On October 1, 1999 the Corporation shall
become a body corporate and as such shall have the authority to
do the following:
``(A) To adopt and use a corporate seal.
``(B) To have succession until dissolved by an Act
of Congress.
``(C) To make contracts or grants.
``(D) To sue and be sued, and to file and defend
against lawsuits in State or Federal court.
``(E) To appoint, through the actions of its Board
of Directors, officers and employees of the
Corporation, to define their duties and
responsibilities, fix their compensations, and to
dismiss at will such officers or employees.
``(F) To prescribe, through the actions of its
Board of Directors, bylaws not inconsistent with
Federal law and the law of the State of incorporation,
regulating the manner in which its general business may
be conducted and the manner in which the privileges
granted to it by law may be exercised.
``(G) To exercise, through the actions of its Board
of Directors or duly authorized officers, all powers
specifically granted by the provisions of this section,
and such incidental powers as shall be necessary.
``(H) To solicit, receive, and disburse funds from
private, Federal, State and local organizations.
``(I) To accept and employ or dispose of in
furtherance of the purposes of this section any money
or property, real, personal, or mixed, tangible or
intangible, received by gift, devise, bequest, or
otherwise.
``(J) To accept voluntary and uncompensated
services.
``(e) Corporate Funds.--
``(1) Deposit of funds.--The Board of Directors shall
deposit all funds of the Corporation in federally chartered and
insured depository institutions until such funds are disbursed
under paragraph (2).
``(2) Disbursement of funds.--Funds of the Corporation may
be disbursed only for purposes that are--
``(A) approved by the Board of Directors by a
recorded vote with a quorum present; and
``(B) in accordance with the purposes of the
Corporation as specified in subsection (b).
``(f) Network of Information and Assistance Centers.--In carrying
out the purpose described in subsection (b), the Corporation shall
establish and maintain a network of information and assistance centers
for use by veterans and the public.
``(g) Annual Report.--On or before October 1 of each year, the
Board of Directors shall transmit a report to the President and
Congress describing the activities and accomplishments of the
Corporation for the preceding year and the Corporation's findings
regarding the efforts of Federal, State and private organizations to
assist veterans in the formation and expansion of small business
concerns.
``(h) Use of Mails.--The Corporation may use the United States
mails in the same manner and under the same conditions as the
departments and agencies of the United States.
``(i) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the Corporation to carry out this section the following
amounts:
``(A) $2,000,000 for fiscal year 2000;
``(B) $4,000,000 for fiscal year 2001;
``(C) $4,000,000 for fiscal year 2002; and
``(D) $2,000,000 for fiscal year 2003.
``(2) Privatization.--The Corporation shall institute and
implement a plan to raise private funds and become a self-
sustaining corporation.''.
SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS.
(a) In General.--There is established an advisory committee to be
known as the ``Advisory Committee on Veterans Business Affairs'' (in
this section referred to as the ``Committee''), which shall serve as an
independent source of advice and policy recommendations to--
(1) the Administrator of the Small Business Administration
(in this section referred to as the ``Administrator'');
(2) the Associate Administrator for Veterans Business
Development of the Small Business Administration;
(3) Congress;
(4) the President; and
(5) other United States policymakers.
(b) Membership.--
(1) In general.--The Committee shall be composed of 15
members, of whom--
(A) 8 shall be veterans who are owners of small
business concerns (within the meaning of the term under
section 3 of the Small Business Act (15 U.S.C. 632));
and
(B) 7 shall be representatives of veterans
organizations.
(2) Appointment.--
(A) In general.--The members of the Committee shall
be appointed by the Administrator in accordance with
this section.
(B) 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) Political affiliation.--Not more than 8 members of the
Committee shall be of the same political party as the
President.
(4) Prohibition on federal employment.--
(A) In general.--Except as provided in subsection
(B), no member of the Committee may serve as an officer
or employee of the United States.
(B) Exception.--A member of the Committee who
accepts a position as an officer or employee of the
United States after the date of the member's
appointment to the Committee may continue to serve on
the Committee for not more than 30 days after such
acceptance.
(5) Term of service.--
(A) In general.--Subject to subparagraph (B), the
term of service of each member of the Committee shall
be 3 years.
(B) Terms of initial appointees.--As designated by
the Administrator at the time of appointment, of the
members first appointed--
(i) 6 shall be appointed for a term of 4
years; and
(ii) 5 shall be appointed for a term of 5
years.
(6) Vacancies.--The Administrator shall fill any vacancies
on the membership of the Committee not later than 30 days after
the date on which such vacancy occurs.
(7) Chairperson.--
(A) In general.--The members of the Committee shall
elect one of the members to be Chairperson of the
Committee.
(B) Vacancies in office of chairperson.--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.
(c) Duties.--The duties of the Committee shall be the following:
(1) Review, coordinate, and monitor plans and programs
developed in the public and private sectors, that affect the
ability of small business concerns owned and controlled by
veterans to obtain capital and credit and to access markets.
(2) Promote the collection of business information and
survey data as they relate to veterans and small business
concerns owned and controlled by veterans.
(3) Monitor and promote plans, programs, and operations of
the departments and agencies of the United States that may
contribute to the formation and growth of small business
concerns owned and controlled by veterans.
(4) Develop and promote initiatives, policies, programs,
and plans designed to foster small business concerns owned and
controlled by veterans.
(5) In cooperation with the National Veterans Business
Development Corporation, develop a comprehensive plan, to be
updated annually, for joint public-private sector efforts to
facilitate growth and development of small business concerns
owned and controlled by veterans.
(d) Powers.--
(1) Hearings.--Subject to subsection (e), 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 its duties.
(2) Information from federal agencies.--Upon request of the
Chairperson of the Committee, the head of any department or
agency of the United States shall furnish such information to
the Committee as the Committee considers to be necessary to
carry out its duties.
(3) Use of mails.--The Committee may use the United States
mails in the same manner and under the same conditions as other
departments and agencies of the United States.
(4) Gifts.--The Committee may accept, use, and dispose of
gifts or donations of services or property.
(e) Meetings.--
(1) In general.--The Committee shall meet, not less than
three times per year, at the call of the Chairperson or at the
request of the Administrator.
(2) Location.--Each meeting of the full Committee shall be
held at the headquarters of the Small Business Administration
located in Washington, District of Columbia. The Administrator
shall provide suitable meeting facilities and such
administrative support as may be necessary for each full
meeting of the Committee.
(3) Task groups.--The Committee may, from time to time,
establish temporary task groups as may be necessary in order to
carry out its duties.
(f) Compensation and Expenses.--
(1) No compensation.--Members of the Committee shall serve
without compensation for their service to the Committee.
(2) Expenses.--The members of the Committee shall be
reimbursed for travel and subsistence expenses in accordance
with section 5703 of title 5, United States Code.
(g) Report.--Not later than 30 days after the end of each fiscal
year beginning after the date of enactment of this section, the
Committee shall transmit to Congress and the President a report
describing the activities of the Committee and any recommendations
developed by the Committee for the promotion of small business concerns
owned and controlled by veterans.
TITLE III--TECHNICAL ASSISTANCE
SEC. 301. SCORE PROGRAM.
(a) In General.--The Administrator of the Small Business
Administration shall enter into a memorandum of understanding with the
Service Core of Retired Executives (described in section 8(b)(1)(B) of
the Small Business Act (15 U.S.C. 637(b)(1)(B)) and in this section
referred to as ``SCORE'') to provide for the following:
(1) The appointment by SCORE in its national office of an
individual to act as National Veterans Business Coordinator,
whose duties shall relate exclusively to veterans business
matters, and who shall be responsible for the establishment and
administration of a program to coordinate counseling and
training regarding entrepreneurship to veterans through the
chapters of SCORE throughout the United States.
(2) The assistance of SCORE in the establishing and
maintaining a toll-free telephone number and an Internet
website to provide access for veterans to information about the
counseling and training regarding entrepreneurship available to
veterans through SCORE.
(3) The collection of statistics concerning services
provided by SCORE to veterans, including service-disabled
veterans, for inclusion in each annual report published by the
Administrator under section 4(b)(2)(B) of the Small Business
Act (15 U.S.C. 633(b)(2)(B)).
(b) Resources.--The Administrator shall provide to SCORE such
resources as the Administrator determines necessary for SCORE to carry
out the requirements of the memorandum of understanding specified in
paragraph (1).
SEC. 302. ENTREPRENEURIAL ASSISTANCE.
Not later than 180 days after the date of enactment of this Act,
the Secretary of Veterans Affairs, the Administrator of the Small
Business Administration, and the head of the association formed
pursuant to section 21(a)(3)(A) of the Small Business Act (15 U.S.C.
648(a)(3)(A)) shall enter into a memorandum of understanding with
respect to entrepreneurial assistance to veterans, including service-
disabled veterans, through Small Business Development Centers
(described in section 21 of the Small Business Act (15 U.S.C. 648)) and
facilities of the Department of Veterans Affairs. Such assistance shall
include the following:
(1) Conducting of studies and research, and the
distribution of information generated by such studies and
research, on the formation, management, financing, marketing,
and operation of small business concerns by veterans.
(2) Provision of training and counseling to veterans
concerning the formation, management, financing, marketing, and
operation of small business concerns.
(3) Provision of management and technical assistance to the
owners and operators of small business concerns regarding
international markets, the promotion of exports, and the
transfer of technology.
(4) Provision of assistance and information to veterans
regarding procurement opportunities with Federal, State, and
local agencies, especially such agencies funded in whole or in
part with Federal funds.
(5) Establishment of an information clearinghouse to
collect and distribute information, including by electronic
means, on the assistance programs of Federal, State, and local
governments, and of the private sector, including information
on office locations, key personnel, telephone numbers, mail and
electronic addresses, and contracting and subcontracting
opportunities.
(6) Provision of Internet or other distance learning
academic instruction for veterans in business subjects,
including accounting, marketing, and business fundamentals.
(7) Compilation of a list of small business concerns owned
and controlled by service-disabled veterans that provide
products or services that could be procured by the United
States and delivery of such list to each department and agency
of the United States. Such list shall be delivered in hard copy
and electronic form and shall include the name and address of
each such small business concern and the products or services
that it provides.
TITLE IV--FINANCIAL ASSISTANCE
SEC. 401. GENERAL BUSINESS LOAN PROGRAM.
(a) Definition of Handicapped Individual.--Section 3(f) of the
Small Business Act (15 U.S.C. 632(f)) is amended to read as follows:
``(f) For purposes of section 7 of this Act, the term `handicapped
individual' means an individual--
``(1) who has a physical, mental, or emotional impairment,
defect, ailment, disease, or disability of a permanent nature
which in any way limits the selection of any type of employment
for which the person would otherwise be qualified or
qualifiable; or
``(2) who is a service-disabled veteran.''.
(b) Authorization To Make Loans.--Section 7(a)(10) of the Small
Business Act (15 U.S.C. 636(a)(10)) is amended by inserting, ``,
including service-disabled veterans,'' after ``handicapped
individual''.
SEC. 402. LOANS TO INDIVIDUALS CALLED TO ACTIVE DUTY IN THE ARMED
FORCES.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting after the undesignated paragraph that begins with
``Provided, That no loan'' the following:
``(3) The Administration is empowered to make loans to
qualified individuals to assist with potential losses and
disruptions caused by mobilization or the return to active duty
in the Armed Forces. For the purposes of this paragraph,
qualified individuals are individuals--
``(A) who are self-employed or who are owners of
small business concerns; and
``(B) who are called to active duty under section
688, 12301, 12302, or 12303 of title 10, United States
Code.
Loans made under this paragraph shall have the same terms and
rates of interest as loans made under paragraph (2).''.
SEC. 403. 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 inserting ``veteran (within the meaning
of such term under section 3(q)),'' after ``low-income,''.
SEC. 404. DELTA LOAN PROGRAM.
Section 7(a)(21)(A) Small Business Act (15 U.S.C. 636(a)(21)(A)) is
amended in subclause (ii) by inserting ``or a veteran'' after
``qualified individual''.
SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.
Section 501(d)(3) of the Small Business Investment Act (15 U.S.C.
696(d)(3)) is amended--
(1) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (F), (G), and (H), respectively; and
(2) by inserting after subparagraph (D) the following:
``(E) expansion of small business concerns owned
and controlled by veterans, as defined in section 3(q)
of the Small Business Act (15 U.S.C. 632(q)),
especially service-disabled veterans, as defined in
such section 3(q),''.
TITLE V--PROCUREMENT ASSISTANCE
SEC. 501. SUBCONTRACTING.
(a) Statement of Policy.--Section 8(d)(1) of the Small Business Act
(15 U.S.C. 637(d)(1)) is amended by inserting ``small business concerns
owned and controlled by service-disabled veterans,'' after ``small
business concerns,'' the first place it appears in the first and second
sentences.
(b) Contract Clause.--The contract clause specified in section
8(d)(3) of the Small Business Act (15 U.S.C. 637(d)(3)) is amended as
follows:
(1) Subparagraph (A) of such clause is amended by inserting
``small business concerns owned and controlled by veterans,''
after ``small business concerns,'' the first place it appears
in the first and second sentences.
(2) Subparagraphs (E) and (F) of such clause are
redesignated as subparagraphs (F) and (G), respectively, and
the following new subparagraph is inserted after subparagraph
(D) of such clause:
``(E) The term `small business concern owned and
controlled by veterans' shall mean a small business
concern--
``(i) which is at least 51 per centum owned
by one or more eligible veterans; or, in the
case of any publicly owned business, at least
51 per centum of the stock of which is owned by
one or more veterans; and
``(ii) whose management and daily business
operations are controlled by such veterans. The
contractor shall treat as veterans all
individuals who are veterans within the meaning
of the term under section 3(q) of the Small
Business Act.''.
(3) Subparagraph (F) of such clause, as redesignated by
paragraph (2) of this subsection, is amended by inserting
``small business concern owned and controlled by veterans,''
after ``small business concern,'' the first place it appears.
(c) Conforming Amendments.--Section 8(d) of the Small Business Act
(15 U.S.C. 637(d)) is further amended by inserting ``small business
concerns owned and controlled by veterans,'' after ``small business
concerns,'' the first place it appears in paragraphs (4)(D), (4)(E),
(6)(A), (6)(C), (6)(F), and (10)(B).
SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.
(a) Government-Wide Participation Goals.--Subsection (g)(1) of
section 15 of the Small Business Act (15 U.S.C. 644(g)(1)) is amended--
(1) in the first sentence, by inserting ``small business
concerns owned and controlled by service disabled veterans,''
after ``small business concerns,'' the first place it appears;
(2) by inserting after the second sentence the following:
``The Government-wide goal for participation by small
business concerns owned and controlled by service-disabled
veterans shall be established at not less than 5 percent of the
total value of all prime contract and subcontract awards for
each fiscal year.''; and
(3) in the second to last sentence, by inserting;
``small business concerns owned and controlled by service-
disabled veterans,'' after ``small business concerns,'' the
first place it appears.
(b) Agency Participation Goals.--Subsection (g)(2) of section 15 of
the Small Business Act (15 U.S.C. 644) is amended--
(1) in the first sentence, by inserting ``by small business
concerns owned and controlled by service-disabled veterans,''
after ``small business concerns,''; the first place it appears;
(2) in the second sentence, by inserting ``small business
concerns owned and controlled by service-disabled veterans,''
after ``small business concerns,'' the first place it appears;
and
(3) in the fourth sentence, by inserting ``small business
concerns owned and controlled by service-disabled veterans,
by'' after ``including participation by''.
TITLE VI--REPORTS AND DATA COLLECTION
SEC. 601. REPORTING REQUIREMENTS.
(a) Reports to Small Business Administration.--
Subsection (h)(1) of section 15 of the Small Business Act (15
U.S.C. 644(h)(1)) is amended by inserting ``small business concerns
owned and controlled by veterans (including service-disabled
veterans),'' after ``small business concerns,'' the first place it
appears.
(b) Reports to the President and Congress.--Subsection (h)(2) of
section 15 of the Small Business Act (15 U.S.C. 644(h)(2)) is amended--
(1) by inserting ``and Congress'' before the period at the
end of first sentence; and
(2) in subparagraphs (A), (D), and (E), by inserting
``small business concerns owned and controlled by service-
disabled veterans,'' after ``small business concerns,'' the
first place it appears.
SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.
Section 303(e) of the Small Business Economic Policy Act of 1980
(15 U.S.C. 631b(e)) is amended--
(1) in paragraph (1), by striking ``and'' after the
semicolon;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) small business concerns owned and controlled by
veterans, as defined in section 3(q) of the Small Business Act
(15 U.S.C. 632(q)), and small business concerns owned and
controlled by service-disabled veterans, as defined in such
section 3(q).''.
SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.
The Administrator of the Small Business Administration shall
transmit annually to the Committees on Small Business and Veterans
Affairs of the House of Representatives and the Senate a report on the
needs of small business concerns owned and controlled by veterans and
small business concerns owned and controlled by service-disabled
veterans, which shall include information on--
(1) the availability of Small Business Administration
programs for such small business concerns and the degree of
utilization of such programs by such small business concerns
during the preceding 12-month period;
(2) the percentage and dollar value of Federal contracts
awarded to such small business concerns during the preceding
12-month period; and
(3) proposals to improve the access of such small business
concerns to the assistance made available by the United States.
SEC. 604. DATA AND INFORMATION COLLECTION.
(a) Information on Federal Procurement Practices.--The
Administrator of the Small Business Administration shall, for each
fiscal year--
(1) collect information concerning the procurement
practices and procedures of each department and agency of the
United States having procurement authority; and
(2) make such information available to any small business
concern requesting such information.
(b) Identification of Small Business Concerns Owned by Eligible
Veterans.--Each Fiscal year the Secretary of Veterans Affairs shall, in
consultation with the Assistant Secretary of Labor for Veterans'
Employment and Training and the Administrator of the Small Business
Administration, identify small business concerns owned and controlled
by veterans in the United States. The Secretary shall inform each small
business concern identified under this paragraph that information on
Federal procurement is available from the Administrator.
(c) Self-Employment Opportunities.--The Secretary of Labor, the
Secretary of Veterans Affairs, and the Administrator of the Small
Business Administration shall enter into a memorandum of understanding
to provide for coordination of vocational rehabilitation services,
technical and managerial assistance, and financial assistance to
veterans, including service-disabled veterans, seeking to employ
themselves by forming or expanding small business concerns. The
memorandum of understanding shall include recommendations for expanding
existing programs or establishing new programs to provide such services
or assistance to such veterans.
TITLE VII--MISCELLANEOUS PROVISIONS
SEC. 701. ADMINISTRATOR'S ORDER.
The Administrator of the Small Business Administration shall
strengthen and reissue the Administrator's order regarding the 3rd
sentence of section 4(b)(1) of the Small Business Act (15 U.S.C.
633(b)(1)), relating to nondiscrimination and special considerations
for veterans, and take all necessary steps to ensure that its
provisions are fully and vigorously implemented.
SEC. 702. SMALL BUSINESS ADMINISTRATION 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 department and agency
of the United States, and of private industry, to assist small
business concerns owned and controlled by veterans, as defined
in section 3(q) of the Small Business Act (15 U.S.C. 632(q)),
and small business concerns owned and controlled by serviced-
disabled veterans, as defined in such section 3(q), and make
appropriate recommendations to the Administrator of the Small Business
Administration and to Congress in order to promote the establishment
and growth of those small business concerns.''.
SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.
(a) In General.--The Comptroller General shall conduct a study on
whether there would exist any additional risk or cost to the United
States if--
(1) up to 10 percent of the loans guaranteed under chapter
37 of title 38, United States Code, were made for the
acquisition or construction of fixed assets used in a trade or
business rather than for the construction or purchase of
residential buildings; and
(2) such loans for acquisition or construction of fixed
assets were for a term of not more than 10 years and the terms
regarding eligibility, loan limits, interest, fees, and down
payment were the same as for other loans guaranteed under such
chapter.
(b) Report.--
(1) In general.--Not later than 180 days after the
enactment of this Act, the Comptroller General shall transmit
the report described in subsection (a) to the Committees on
Veterans' Affairs and the Committees on Small Business of the
House of Representatives and the Senate.
(2) Contents of report.--The report required by paragraph
(1) shall specifically address the following:
(A) With respect to the change in the veterans'
housing loan program contemplated under subsection (a):
(i) The increase or decrease in
administrative costs to the Department of
Veterans Affairs.
(ii) The increase or decrease in the degree
of exposure of the United States as the
guarantor of the loans.
(iii) The increase or decrease in the
Federal subsidy rate that would be possible.
(iv) Any increase in the interest rate or
fees charged to the borrower or lender that
would be required to maintain present program
costs.
(B) Information regarding the delinquency rates, default
rates, length of time required for recovery after default, for
fixed-asset business loans, of a size and duration comparable
to those contemplated under subsection (a), made available in
the private market or under section 503 of the Small Business
Investment Act.
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