[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1568 Referred in Senate (RFS)]
1st Session
H. R. 1568
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 30, 1999
Received; read twice and referred to the Committee on Small Business
_______________________________________________________________________
AN ACT
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.
Sec. 303. Business development and management assistance for military
reservists' small businesses.
TITLE IV--FINANCIAL ASSISTANCE
Sec. 401. General business loan program.
Sec. 402. Assistance to active duty military reservists.
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.--In this Act, the following
definitions 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
one 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 one or more
service-disabled veterans; and
``(B) the management and daily business operations
of which are controlled by one 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
one 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 one or more veterans; and
``(B) the management and daily business operations
of which are controlled by one 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, 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 fifth sentence, by striking ``four Associate
Administrators'' and inserting ``five Associate
Administrators''; and
(2) by inserting after the fifth 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 to be 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 assist veterans, including service-disabled
veterans, with the formation and expansion of small business
concerns by working with and organizing public and private
resources, including 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.
``(c) Board of Directors.--
``(1) In general.--The management of the Corporation shall
be vested in a Board of Directors composed of nine voting
members and three 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) One from a list of individuals nominated by
the chairman of the Committee on Small Business of the
House of Representatives.
``(B) One from a list of individuals nominated by
the chairman of the Committee on Small Business of the
Senate.
``(C) One from a list of individuals nominated by
the ranking minority member of the Committee on Small
Business of the House of Representatives.
``(D) One from a list of individuals nominated by
the ranking minority members of the Committee on Small
Business of the Senate.
``(E) One from a list of individuals nominated by
the chairman of the Committee on Veterans' Affairs of
the House of Representatives.
``(F) One from a list of individuals nominated by
the chairman of the Committee on Veterans' Affairs of
the Senate.
``(G) One from a list of individuals nominated by
the ranking minority member of the Committee on
Veterans' Affairs of the House of Representatives.
``(H) One from a list of individuals nominated the
ranking minority member of the Committee on Veterans'
Affairs of the Senate.
``(I) One 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) three shall be for a term of 2 years;
and
``(ii) three 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 2-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.--Five voting members of the Board of
Directors shall constitute a quorum, but a lesser number may
hold hearings.
``(d) Corporate Powers.--On October 1, 1999, the Corporation shall
become a body corporate and as such shall have the authority to do the
following:
``(1) To adopt and use a corporate seal.
``(2) To have succession until dissolved by an Act of
Congress.
``(3) To make contracts or grants.
``(4) To sue and be sued, and to file and defend against
lawsuits in State or Federal court.
``(5) 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.
``(6) 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.
``(7) 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.
``(8) To solicit, receive, and disburse funds from private,
Federal, State and local organizations.
``(9) 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.
``(10) 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 the
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) Assumption of Duties of Advisory Committee.--On October 1,
2004, the Corporation established under this section shall assume the
duties, responsibilities, and authority of the Advisory Committee on
Veterans Affairs established under section 203 of this Act.
``(i) 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.
``(j) Professional Certification Advisory Board.--
``(1) In general.--Acting through the Board of Directors,
the Corporation shall establish a Professional Certification
Advisory Board to create uniform guidelines and standards for
the professional certification of members of the Armed Services
to aid in their efficient and orderly transition to civilian
occupations and professions and to remove potential barriers in
the areas of licensure and certification.
``(2) Membership.--The members of the Advisory Board shall
serve without compensation, shall meet in the District of
Columbia no less than quarterly, and shall be appointed by the
Board of Directors as follows:
``(A) Private sector members.--The Corporation
shall appoint not less than seven members for terms of
2 years to represent private sector organizations and
associations, including the American Association of
Community Colleges, the Society for Human Resource
Managers, the Coalition for Professional Certification,
the Council on Licensure and Enforcement, and the
American Legion.
``(B) Public sector members.--The Corporation shall
invite public sector members to serve at the discretion
of their departments or agencies and shall--
``(i) encourage the participation of the
Under Secretary of Defense for Personnel and
Readiness;
``(ii) encourage the participation of two
officers from each branch of the Armed Forces
to represent the Training Commands of their
branch; and
``(iii) seek the participation and guidance
of the Assistant Secretary of Labor for
Veterans' Employment and Training.
``(k) 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) the 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) eight 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) seven 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 90 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 eight 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) six shall be appointed for a term of 4
years; and
(ii) five 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 the 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.
(h) Termination.--The Committee shall terminate its business on
September 30, 2004.
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.
SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT ASSISTANCE FOR MILITARY
RESERVISTS' SMALL BUSINESSES.
(a) In General.--Section 8 of the Small Business Act (15 U.S.C.
637) is amended by adding at the end the following:
``(l) Management Assistance for Small Businesses Affected by
Military Operations.--The Administration shall utilize, as appropriate,
its entrepreneurial development and management assistance programs,
including programs involving State or private sector partners, to
provide business counseling and training to any small business concern
adversely affected by the deployment of units of the Armed Forces of
the United States in support of a period of military conflict (as
defined in section 7(n)(1)).''.
(b) Enhanced Publicity During Operation Allied Force.--For the
duration of Operation Allied Force and for 120 days thereafter, the
Administration shall enhance its publicity of the availability of
assistance provided pursuant to the amendment made by this section,
including information regarding the appropriate local office at which
affected small businesses may seek such assistance.
(c) Guidelines.--Not later than 30 days after the date of enactment
of this section, the Administrator of the Small Business Administration
shall issue such guidelines as the Administrator determines to be
necessary to carry out this section and the amendment made by this
section.
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--
(1) by inserting ``guaranteed'' after ``provide''; and
(2) by inserting, ``, including service-disabled
veterans,'' after ``handicapped individual''.
SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERVISTS.
(a) Repayment Deferral for Active Duty Reservists.--Section 7 of
the Small Business Act (15 U.S.C. 636) is amended by adding at the end
the following:
``(n) Repayment Deferred for Active Duty Reservists.--
``(1) Definitions.--In this subsection:
``(A) Eligible reservist.--The term `eligible
reservist' means a member of a reserve component of the
Armed Forces ordered to active duty during a period of
military conflict.
``(B) Essential employee.--The term `essential
employee' means an individual who is employed by a
small business concern and whose managerial or
technical expertise is critical to the successful day-
to-day operations of that small business concern.
``(C) Period of military conflict.--The term
`period of military conflict' means--
``(i) a period of war declared by the
Congress;
``(ii) a period of national emergency
declared by the Congress or by the President;
or
``(iii) a period of a contingency
operation, as defined in section 101(a) of
title 10, United States Code.
``(D) Qualified borrower.--The term `qualified
borrower' means--
``(i) an individual who is an eligible
reservist and who received a direct loan under
subsection (a) or (b) before being ordered to
active duty; or
``(ii) a small business concern that
received a direct loan under subsection (a) or
(b) before an eligible reservist, who is an
essential employee, was ordered to active duty.
``(2) Deferral of direct loans.--
``(A) In general.--The Administration shall, upon
written request, defer repayment of principal and
interest due on a direct loan made under subsection (a)
or (b), if such loan was incurred by a qualified
borrower.
``(B) Period of deferral.--The period of deferral
for repayment under this paragraph shall begin on the
date on which the eligible reservist is ordered to
active duty and shall terminate on the date that is 180
days after the date such eligible reservist is
discharged or released from active duty.
``(C) Interest rate reduction during deferral.--
Notwithstanding any other provision of law, during the
period of deferral described in subparagraph (B), the
Administration may, in its discretion, reduce the
interest rate on any loan qualifying for a deferral
under this paragraph.
``(3) Deferral of loan guarantees and other financings.--
The Administration shall--
``(A) encourage intermediaries participating in the
program under subsection (m) to defer repayment of a
loan made with proceeds made available under that
subsection, if such loan was incurred by a small
business concern that is eligible to apply for
assistance under subsection (b)(3); and
``(B) not later than 30 days after the date of
enactment of this subsection, establish guidelines to--
``(i) encourage lenders and other
intermediaries to defer repayment of, or
provide other relief relating to, loan
guarantees under subsection (a) and financings
under section 504 of the Small Business
Investment Act of 1958 that were incurred by
small business concerns that are eligible to
apply for assistance under subsection (b)(3),
and loan guarantees provided under subsection
(m) if the intermediary provides relief to a
small business concern under this paragraph;
and
``(ii) implement a program to provide for
the deferral of repayment or other relief to
any intermediary providing relief to a small
business borrower under this paragraph.''.
(b) Disaster Loan Assistance for Military Reservists' Small
Businesses.--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)(A) In this paragraph--
``(i) the term `essential employee' means an
individual who is employed by a small business concern
and whose managerial or technical expertise is critical
to the successful day-to-day operations of that small
business concern;
``(ii) the term `period of military conflict' has
the meaning given the term in subsection (n)(1); and
``(iii) the term `substantial economic injury'
means an economic harm to a business concern that
results in the inability of the business concern--
``(I) to meet its obligations as they
mature;
``(II) to pay its ordinary and necessary
operating expenses; or
``(III) to market, produce, or provide a
product or service ordinarily marketed,
produced, or provided by the business concern.
``(B) The Administration may make such disaster loans
(either directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis) to assist a small business concern that has
suffered or that is likely to suffer substantial economic
injury as the result of an essential employee of such small
business concern being ordered to active military duty during a
period of military conflict.
``(C) A small business concern described in subparagraph
(B) shall be eligible to apply for assistance under this
paragraph during the period beginning on the date on which the
essential employee is ordered to active duty and ending on the
date that is 90 days after the date on which such essential
employee is discharged or released from active duty.
``(D) Any loan or guarantee extended pursuant to this
paragraph shall be made at the same interest rate as economic
injury loans under paragraph (2).
``(E) No loan may be made under this paragraph, either
directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis, if the total amount outstanding and
committed to the borrower under this subsection would exceed
$1,500,000, unless such applicant constitutes a major source of
employment in its surrounding area, as determined by the
Administration, in which case the Administration, in its
discretion, may waive the $1,500,000 limitation.
``(F) For purposes of assistance under this paragraph, no
declaration of a disaster area shall be required.''.
(c) Enhanced Publicity During Operation Allied Force.--For the
duration of Operation Allied Force and for 120 days thereafter, the
Administration shall enhance its publicity of the availability of
assistance provided pursuant to the amendments made by this section,
including information regarding the appropriate local office at which
affected small businesses may seek such assistance.
(d) Guidelines.--Not later than 30 days after the date of enactment
of this section, the Administrator of the Small Business Administration
shall issue such guidelines as the Administrator determines to be
necessary to carry out this section and the amendments made by this
section.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this section.
(2) Disaster loans.--The amendments made by subsection (b)
shall apply to economic injury suffered or likely to be
suffered as the result of a period of military conflict
occurring or ending on or after March 24, 1999.
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.
695(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) 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) 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 the Congress.--Subsection (h)(2)
of section 15 of the Small Business Act (15 U.S.C. 644) is amended--
(1) by inserting ``and the 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, including statistical
information on such utilization as compared to the small
business community as a whole;
(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;
(2) publish and disseminate such information to procurement
officers in all Federal agencies; and
(3) 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 third
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 to
provide statistical information on the utilization of such
programs by such small business concerns, and to make
appropriate recommendations to the Administrator of the Small
Business Administration and to the 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.
Passed the House of Representatives June 29, 1999.
Attest:
JEFF TRANDAHL,
Clerk.