[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5545 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5545

    To provide for reauthorization of small business loan and other 
                   programs, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 25, 2000

  Mr. Talent (for himself and Ms. Velazquez) introduced the following 
      bill; which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
    To provide for reauthorization of small business loan and other 
                   programs, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Reauthorization Act of 2000''.
    (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 INNOVATION RESEARCH PROGRAM

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Extension of SBIR program.
Sec. 104. Annual report.
Sec. 105. Third phase assistance.
Sec. 106. Report on programs for annual performance plan.
Sec. 107. Output and outcome data.
Sec. 108. National Research Council reports.
Sec. 109. Federal agency expenditures for the SBIR program.
Sec. 110. Policy directive modifications.
Sec. 111. Federal and State technology partnership program.
Sec. 112. Mentoring networks.
Sec. 113. Simplified reporting requirements.
Sec. 114. Rural outreach program extension.
                    TITLE II--BUSINESS LOAN PROGRAMS

Sec. 201. Short title.
Sec. 202. Levels of participation.
Sec. 203. Loan amounts.
Sec. 204. Interest on defaulted loans.
Sec. 205. Prepayment of loans.
Sec. 206. Guarantee fees.
Sec. 207. Lease terms.
Sec. 208. Appraisals for loans secured by real property.
Sec. 209. Sale of guaranteed loans made for export purposes.
Sec. 210. Microloan program.
            TITLE III--CERTIFIED DEVELOPMENT COMPANY PROGRAM

Sec. 301. Short title.
Sec. 302. Women-owned businesses.
Sec. 303. Maximum debenture size.
Sec. 304. Fees.
Sec. 305. Premier certified lenders program.
Sec. 306. Sale of certain defaulted loans.
Sec. 307. Loan liquidation.
   TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Investment in small business investment companies.
Sec. 404. Subsidy fees.
Sec. 405. Distributions.
Sec. 406. Conforming amendment.
          TITLE V--REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

Sec. 501. Short title.
Sec. 502. Reauthorization of small business programs.
Sec. 503. Additional reauthorizations.
Sec. 504. Cosponsorship.
                       TITLE VI--HUBZONE PROGRAM

                 Subtitle A--HUBZones in Native America

Sec. 601. Short title.
Sec. 602. HUBZone small business concern.
Sec. 603. Qualified HUBZone small business concern.
Sec. 604. Other definitions.
                  Subtitle B--Other HUBZone Provisions

Sec. 611. Definitions.
Sec. 612. Eligible contracts.
Sec. 613. HUBZone redesignated areas.
Sec. 614. Community development.
Sec. 615. Reference corrections.
      TITLE VII--NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION

Sec. 701. Short title.
Sec. 702. Membership of the Council.
Sec. 703. Repeal of procurement project.
Sec. 704. Studies and other research.
Sec. 705. Authorization of appropriations.
                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Loan application processing.
Sec. 802. Application of ownership requirements.
Sec. 803. Subcontracting preference for veterans.
Sec. 804. Small Business Development Center Program funding.
Sec. 805. Surety bonds.
Sec. 806. Size standards.
Sec. 807. Native Hawaiian organizations under section 8(a).
Sec. 808. National Veterans Business Development Corporation 
                            correction.
Sec. 809. Private sector resources for SCORE.
Sec. 810. Contract data collection.
Sec. 811. Procurement program for women-owned small business concerns.
        TITLE IX--COMMUNITY RENEWAL AND NEW MARKETS INITIATIVES

Sec. 901. New markets venture capital program.
Sec. 902. BusinessLINC grants and cooperative agreements.

          TITLE I--SMALL BUSINESS INNOVATION RESEARCH PROGRAM

SECTION 101. SHORT TITLE.

    (a) Short Title.--This title may be cited as the ``Small Business 
Innovation Research Program Reauthorization Act of 2000''.

SEC. 102. FINDINGS.

    Congress finds that--
            (1) the small business innovation research program 
        established under the Small Business Innovation Development Act 
        of 1982, and reauthorized by the Small Business Research and 
        Development Enhancement Act of 1992 (in this title referred to 
        as the ``SBIR program'') is highly successful in involving 
        small businesses in federally funded research and development;
            (2) the SBIR program made the cost-effective and unique 
        research and development capabilities possessed by the small 
        businesses of the Nation available to Federal agencies and 
        departments;
            (3) the innovative goods and services developed by small 
        businesses that participated in the SBIR program have produced 
        innovations of critical importance in a wide variety of high-
        technology fields, including biology, medicine, education, and 
        defense;
            (4) the SBIR program is a catalyst in the promotion of 
        research and development, the commercialization of innovative 
        technology, the development of new products and services, and 
        the continued excellence of this Nation's high-technology 
        industries; and
            (5) the continuation of the SBIR program will provide 
        expanded opportunities for one of the Nation's vital resources, 
        its small businesses, will foster invention, research, and 
        technology, will create jobs, and will increase this Nation's 
        competitiveness in international markets.

SEC. 103. EXTENSION OF SBIR PROGRAM.

    Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) is 
amended to read as follows:
    ``(m) Termination.--The authorization to carry out the Small 
Business Innovation Research Program established under this section 
shall terminate on September 30, 2008.''.

SEC. 104. ANNUAL REPORT.

    Section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)) is 
amended by striking ``and the Committee on Small Business of the House 
of Representatives'' and inserting ``, and to the Committee on Science 
and the Committee on Small Business of the House of Representatives,''.

SEC. 105. THIRD PHASE ASSISTANCE.

    Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C. 
638(e)(4)(C)(i)) is amended by striking ``; and'' and inserting ``; 
or''.

SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN.

    Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is 
amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(9) include, as part of its annual performance plan as 
        required by subsections (a) and (b) of section 1115 of title 
        31, United States Code, a section on its SBIR program, and 
        shall submit such section to the Committee on Small Business of 
        the Senate, and the Committee on Science and the Committee on 
        Small Business of the House of Representatives; and''.

SEC. 107. OUTPUT AND OUTCOME DATA.

    (a) Collection.--Section 9(g) of the Small Business Act (15 U.S.C. 
638(g)), as amended by section 106 of this Act, is further amended by 
adding at the end the following:
            ``(10) collect, and maintain in a common format in 
        accordance with subsection (v), such information from awardees 
        as is necessary to assess the SBIR program, including 
        information necessary to maintain the database described in 
        subsection (k).''.
    (b) Report to Congress.--Section 9(b)(7) of the Small Business Act 
(15 U.S.C. 638(b)(7)), as amended by section 104 of this Act, is 
further amended by inserting before the period at the end ``, including 
the data on output and outcomes collected pursuant to subsections 
(g)(10) and (o)(9), and a description of the extent to which Federal 
agencies are providing in a timely manner information needed to 
maintain the database described in subsection (k)''.
    (c) Database.--Section 9(k) of the Small Business Act (15 U.S.C. 
638(k)) is amended to read as follows:
    ``(k) Database.--
            ``(1) Public database.--Not later than 180 days after the 
        date of enactment of the Small Business Innovation Research 
        Program Reauthorization Act of 2000, the Administrator shall 
        develop, maintain, and make available to the public a 
        searchable, up-to-date, electronic database that includes--
                    ``(A) the name, size, location, and an identifying 
                number assigned by the Administrator, of each small 
                business concern that has received a first phase or 
                second phase SBIR award from a Federal agency;
                    ``(B) a description of each first phase or second 
                phase SBIR award received by that small business 
                concern, including--
                            ``(i) an abstract of the project funded by 
                        the award, excluding any proprietary 
                        information so identified by the small business 
                        concern;
                            ``(ii) the Federal agency making the award; 
                        and
                            ``(iii) the date and amount of the award;
                    ``(C) an identification of any business concern or 
                subsidiary established for the commercial application 
                of a product or service for which an SBIR award is 
                made; and
                    ``(D) information regarding mentors and Mentoring 
                Networks, as required by section 35(d).
            ``(2) Government database.--Not later than 180 days after 
        the date of enactment of the Small Business Innovation Research 
        Program Reauthorization Act of 2000, the Administrator, in 
        consultation with Federal agencies required to have an SBIR 
        program pursuant to subsection (f)(1), shall develop and 
        maintain a database to be used solely for SBIR program 
        evaluation that--
                    ``(A) contains for each second phase award made by 
                a Federal agency--
                            ``(i) information collected in accordance 
                        with paragraph (3) on revenue from the sale of 
                        new products or services resulting from the 
                        research conducted under the award;
                            ``(ii) information collected in accordance 
                        with paragraph (3) on additional investment 
                        from any source, other than first phase or 
                        second phase SBIR or STTR awards, to further 
                        the research and development conducted under 
                        the award; and
                            ``(iii) any other information received in 
                        connection with the award that the 
                        Administrator, in conjunction with the SBIR 
                        program managers of Federal agencies, considers 
                        relevant and appropriate;
                    ``(B) includes any narrative information that a 
                small business concern receiving a second phase award 
                voluntarily submits to further describe the outputs and 
                outcomes of its awards;
                    ``(C) includes for each applicant for a first phase 
                or second phase award that does not receive such an 
                award--
                            ``(i) the name, size, and location, and an 
                        identifying number assigned by the 
                        Administration;
                            ``(ii) an abstract of the project; and
                            ``(iii) the Federal agency to which the 
                        application was made;
                    ``(D) includes any other data collected by or 
                available to any Federal agency that such agency 
                considers may be useful for SBIR program evaluation; 
                and
                    ``(E) is available for use solely for program 
                evaluation purposes by the Federal Government or, in 
                accordance with policy directives issued by the 
                Administration, by other authorized persons who are 
                subject to a use and nondisclosure agreement with the 
                Federal Government covering the use of the database.
            ``(3) Updating information for database.--
                    ``(A) In general.--A small business concern 
                applying for a second phase award under this section 
                shall be required to update information in the database 
                established under this subsection for any prior second 
                phase award received by that small business concern. In 
                complying with this paragraph, a small business concern 
                may apportion sales or additional investment 
                information relating to more than one second phase 
                award among those awards, if it notes the apportionment 
                for each award.
                    ``(B) Annual updates upon termination.--A small 
                business concern receiving a second phase award under 
                this section shall--
                            ``(i) update information in the database 
                        concerning that award at the termination of the 
                        award period; and
                            ``(ii) be requested to voluntarily update 
                        such information annually thereafter for a 
                        period of 5 years.
            ``(4) Protection of information.--Information provided 
        under paragraph (2) shall be considered privileged and 
        confidential and not subject to disclosure pursuant to section 
        552 of title 5, United States Code.
            ``(5) Rule of construction.--Inclusion of information in 
        the database under this subsection shall not be considered to 
        be publication for purposes of subsection (a) or (b) of section 
        102 of title 35, United States Code.''.

SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.

    (a) Study and Recommendations.--The head of each agency with a 
budget of more than $50,000,000 for its SBIR program for fiscal year 
1999, in consultation with the Small Business Administration, shall, 
not later than 6 months after the date of enactment of this Act, 
cooperatively enter into an agreement with the National Academy of 
Sciences for the National Research Council to--
            (1) conduct a comprehensive study of how the SBIR program 
        has stimulated technological innovation and used small 
        businesses to meet Federal research and development needs, 
        including--
                    (A) a review of the value to the Federal research 
                agencies of the research projects being conducted under 
                the SBIR program, and of the quality of research being 
                conducted by small businesses participating under the 
                program, including a comparison of the value of 
                projects conducted under the SBIR program to those 
                funded by other Federal research and development 
                expenditures;
                    (B) to the extent practicable, an evaluation of the 
                economic benefits achieved by the SBIR program, 
                including the economic rate of return, and a comparison 
                of the economic benefits, including the economic rate 
                of return, achieved by the SBIR program with the 
                economic benefits, including the economic rate of 
                return, of other Federal research and development 
                expenditures;
                    (C) an evaluation of the noneconomic benefits 
                achieved by the SBIR program over the life of the 
                program;
                    (D) a comparison of the allocation for fiscal year 
                2000 of Federal research and development funds to small 
                businesses with such allocation for fiscal year 1983, 
                and an analysis of the factors that have contributed to 
                such allocation; and
                    (E) an analysis of whether Federal agencies, in 
                fulfilling their procurement needs, are making 
                sufficient effort to use small businesses that have 
                completed a second phase award under the SBIR program; 
                and
            (2) make recommendations with respect to--
                    (A) measures of outcomes for strategic plans 
                submitted under section 306 of title 5, United States 
                Code, and performance plans submitted under section 
                1115 of title 31, United States Code, of each Federal 
                agency participating in the SBIR program;
                    (B) whether companies who can demonstrate project 
                feasibility, but who have not received a first phase 
                award, should be eligible for second phase awards, and 
                the potential impact of such awards on the competitive 
                selection process of the program;
                    (C) whether the Federal Government should be 
                permitted to recoup some or all of its expenses if a 
                controlling interest in a company receiving an SBIR 
                award is sold to a foreign company or to a company that 
                is not a small business concern;
                    (D) how to increase the use by the Federal 
                Government in its programs and procurements of 
                technology-oriented small businesses; and
                    (E) improvements to the SBIR program, if any are 
                considered appropriate.
    (b) Participation by Small Business.--
            (1) In general.--In a manner consistent with law and with 
        National Research Council study guidelines and procedures, 
        knowledgeable individuals from the small business community 
        with experience in the SBIR program shall be included--
                    (A) in any panel established by the National 
                Research Council for the purpose of performing the 
                study conducted under this section; and
                    (B) among those who are asked by the National 
                Research Council to peer review the study.
            (2) Consultation.--To ensure that the concerns of small 
        business are appropriately considered under this subsection, 
        the National Research Council shall consult with and consider 
        the views of the Office of Technology and the Office of 
        Advocacy of the Small Business Administration and other 
        interested parties, including entities, organizations, and 
        individuals actively engaged in enhancing or developing the 
        technological capabilities of small business concerns.
    (c) Progress Reports.--The National Research Council shall provide 
semiannual progress reports on the study conducted under this section 
to the Committee on Science and the Committee on Small Business of the 
House of Representatives, and to the Committee on Small Business of the 
Senate.
    (d) Report.--The National Research Council shall transmit to the 
heads of agencies entering into an agreement under this section and to 
the Committee on Science and the Committee on Small Business of the 
House of Representatives, and to the Committee on Small Business of the 
Senate--
            (1) not later than 3 years after the date of enactment of 
        this Act, a report including the results of the study conducted 
        under subsection (a)(1) and recommendations made under 
        subsection (a)(2); and
            (2) not later than 6 years after that date of enactment, an 
        update of such report.

SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR PROGRAM.

    Section 9(i) of the Small Business Act (15 U.S.C. 638(i)) is 
amended--
            (1) by striking ``(i) Each Federal'' and inserting the 
        following:
    ``(i) Annual Reporting.--
            ``(1) In general.--Each Federal''; and
            (2) by adding at the end the following:
            ``(2) Calculation of extramural budget.--
                    ``(A) Methodology.--Not later than 4 months after 
                the date of enactment of each appropriations Act for a 
                Federal agency required by this section to have an SBIR 
                program, the Federal agency shall submit to the 
                Administrator a report, which shall include a 
                description of the methodology used for calculating the 
                amount of the extramural budget of that Federal agency.
                    ``(B) Administrator's analysis.--The Administrator 
                shall include an analysis of the methodology received 
                from each Federal agency referred to in subparagraph 
                (A) in the report required by subsection (b)(7).''.

SEC. 110. POLICY DIRECTIVE MODIFICATIONS.

    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is 
amended by adding at the end the following:
            ``(3) Additional modifications.--Not later than 120 days 
        after the date of enactment of the Small Business Innovation 
        Research Program Reauthorization Act of 2000, the Administrator 
        shall modify the policy directives issued pursuant to this 
        subsection--
                    ``(A) to clarify that the rights provided for under 
                paragraph (2)(A) apply to all Federal funding awards 
                under this section, including the first phase (as 
                described in subsection (e)(4)(A)), the second phase 
                (as described in subsection (e)(4)(B)), and the third 
                phase (as described in subsection (e)(4)(C));
                    ``(B) to provide for the requirement of a succinct 
                commercialization plan with each application for a 
                second phase award that is moving toward 
                commercialization;
                    ``(C) to require agencies to report to the 
                Administration, not less frequently than annually, all 
                instances in which an agency pursued research, 
                development, or production of a technology developed by 
                a small business concern using an award made under the 
                SBIR program of that agency, and determined that it was 
                not practicable to enter into a follow-on non-SBIR 
                program funding agreement with the small business 
                concern, which report shall include, at a minimum--
                            ``(i) the reasons why the follow-on funding 
                        agreement with the small business concern was 
                        not practicable;
                            ``(ii) the identity of the entity with 
                        which the agency contracted to perform the 
                        research, development, or production; and
                            ``(iii) a description of the type of 
                        funding agreement under which the research, 
                        development, or production was obtained; and
                    ``(D) to implement subsection (v), including 
                establishing standardized procedures for the provision 
                of information pursuant to subsection (k)(3).''.

SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

    (a) Findings.--Congress finds that--
            (1) programs to foster economic development among small 
        high-technology firms vary widely among the States;
            (2) States that do not aggressively support the development 
        of small high-technology firms, including participation by 
        small business concerns in the SBIR program, are at a 
        competitive disadvantage in establishing a business climate 
        that is conducive to technology development; and
            (3) building stronger national, State, and local support 
        for science and technology research in these disadvantaged 
        States will expand economic opportunities in the United States, 
        create jobs, and increase the competitiveness of the United 
        States in the world market.
    (b) Federal and State Technology Partnership Program.--The Small 
Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 34 as section 36; and
            (2) by inserting after section 33 the following:

``SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

    ``(a) Definitions.--In this section and section 35, the following 
definitions apply:
            ``(1) Applicant.--The term `applicant' means an entity, 
        organization, or individual that submits a proposal for an 
        award or a cooperative agreement under this section.
            ``(2) Business advice and counseling.--The term `business 
        advice and counseling' means providing advice and assistance on 
        matters described in section 35(c)(2)(B) to small business 
        concerns to guide them through the SBIR and STTR program 
        process, from application to award and successful completion of 
        each phase of the program.
            ``(3) FAST program.--The term `FAST program' means the 
        Federal and State Technology Partnership Program established 
        under this section.
            ``(4) Mentor.--The term `mentor' means an individual 
        described in section 35(c)(2).
            ``(5) Mentoring network.--The term `Mentoring Network' 
        means an association, organization, coalition, or other entity 
        (including an individual) that meets the requirements of 
        section 35(c).
            ``(6) Recipient.--The term `recipient' means a person that 
        receives an award or becomes party to a cooperative agreement 
        under this section.
            ``(7) SBIR program.--The term `SBIR program' has the same 
        meaning as in section 9(e)(4).
            ``(8) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, and American Samoa.
            ``(9) STTR program.--The term `STTR program' has the same 
        meaning as in section 9(e)(6).
    ``(b) Establishment of Program.--The Administrator shall establish 
a program to be known as the Federal and State Technology Partnership 
Program, the purpose of which shall be to strengthen the technological 
competitiveness of small business concerns in the States.
    ``(c) Grants and Cooperative Agreements.--
            ``(1) Joint review.--In carrying out the FAST program under 
        this section, the Administrator and the SBIR program managers 
        at the National Science Foundation and the Department of 
        Defense shall jointly review proposals submitted by applicants 
        and may make awards or enter into cooperative agreements under 
        this section based on the factors for consideration set forth 
        in paragraph (2), in order to enhance or develop in a State--
                    ``(A) technology research and development by small 
                business concerns;
                    ``(B) technology transfer from university research 
                to technology-based small business concerns;
                    ``(C) technology deployment and diffusion 
                benefiting small business concerns;
                    ``(D) the technological capabilities of small 
                business concerns through the establishment or 
                operation of consortia comprised of entities, 
                organizations, or individuals, including--
                            ``(i) State and local development agencies 
                        and entities;
                            ``(ii) representatives of technology-based 
                        small business concerns;
                            ``(iii) industries and emerging companies;
                            ``(iv) universities; and
                            ``(v) small business development centers; 
                        and
                    ``(E) outreach, financial support, and technical 
                assistance to technology-based small business concerns 
                participating in or interested in participating in an 
                SBIR program, including initiatives--
                            ``(i) to make grants or loans to companies 
                        to pay a portion or all of the cost of 
                        developing SBIR proposals;
                            ``(ii) to establish or operate a Mentoring 
                        Network within the FAST program to provide 
                        business advice and counseling that will assist 
                        small business concerns that have been 
                        identified by FAST program participants, 
                        program managers of participating SBIR 
                        agencies, the Administration, or other entities 
                        that are knowledgeable about the SBIR and STTR 
                        programs as good candidates for the SBIR and 
                        STTR programs, and that would benefit from 
                        mentoring, in accordance with section 35;
                            ``(iii) to create or participate in a 
                        training program for individuals providing SBIR 
                        outreach and assistance at the State and local 
                        levels; and
                            ``(iv) to encourage the commercialization 
                        of technology developed through SBIR program 
                        funding.
            ``(2) Selection considerations.--In making awards or 
        entering into cooperative agreements under this section, the 
        Administrator and the SBIR program managers referred to in 
        paragraph (1)--
                    ``(A) may only consider proposals by applicants 
                that intend to use a portion of the Federal assistance 
                provided under this section to provide outreach, 
                financial support, or technical assistance to 
                technology-based small business concerns participating 
                in or interested in participating in the SBIR program; 
                and
                    ``(B) shall consider, at a minimum--
                            ``(i) whether the applicant has 
                        demonstrated that the assistance to be provided 
                        would address unmet needs of small business 
                        concerns in the community, and whether it is 
                        important to use Federal funding for the 
                        proposed activities;
                            ``(ii) whether the applicant has 
                        demonstrated that a need exists to increase the 
                        number or success of small high-technology 
                        businesses in the State, as measured by the 
                        number of first phase and second phase SBIR 
                        awards that have historically been received by 
                        small business concerns in the State;
                            ``(iii) whether the projected costs of the 
                        proposed activities are reasonable;
                            ``(iv) whether the proposal integrates and 
                        coordinates the proposed activities with other 
                        State and local programs assisting small high-
                        technology firms in the State; and
                            ``(v) the manner in which the applicant 
                        will measure the results of the activities to 
                        be conducted.
            ``(3) Proposal limit.--Not more than 1 proposal may be 
        submitted for inclusion in the FAST program under this section 
        to provide services in any one State in any 1 fiscal year.
            ``(4) Process.--Proposals and applications for assistance 
        under this section shall be in such form and subject to such 
        procedures as the Administrator shall establish.
    ``(d) Cooperation and Coordination.--In carrying out the FAST 
program under this section, the Administrator shall cooperate and 
coordinate with--
            ``(1) Federal agencies required by section 9 to have an 
        SBIR program; and
            ``(2) entities, organizations, and individuals actively 
        engaged in enhancing or developing the technological 
        capabilities of small business concerns, including--
                    ``(A) State and local development agencies and 
                entities;
                    ``(B) State committees established under the 
                Experimental Program to Stimulate Competitive Research 
                of the National Science Foundation (as established 
                under section 113 of the National Science Foundation 
                Authorization Act of 1988 (42 U.S.C. 1862g));
                    ``(C) State science and technology councils; and
                    ``(D) representatives of technology-based small 
                business concerns.
    ``(e) Administrative Requirements.--
            ``(1) Competitive basis.--Awards and cooperative agreements 
        under this section shall be made or entered into, as 
        applicable, on a competitive basis.
            ``(2) Matching requirements.--
                    ``(A) In general.--The non-Federal share of the 
                cost of an activity (other than a planning activity) 
                carried out using an award or under a cooperative 
                agreement under this section shall be--
                            ``(i) 50 cents for each Federal dollar, in 
                        the case of a recipient that will serve small 
                        business concerns located in one of the 18 
                        States receiving the fewest SBIR first phase 
                        awards (as described in section 9(e)(4)(A));
                            ``(ii) except as provided in subparagraph 
                        (B), 1 dollar for each Federal dollar, in the 
                        case of a recipient that will serve small 
                        business concerns located in one of the 16 
                        States receiving the greatest number of such 
                        SBIR first phase awards; and
                            ``(iii) except as provided in subparagraph 
                        (B), 75 cents for each Federal dollar, in the 
                        case of a recipient that will serve small 
                        business concerns located in a State that is 
                        not described in clause (i) or (ii) that is 
                        receiving such SBIR first phase awards.
                    ``(B) Low-income areas.--The non-Federal share of 
                the cost of the activity carried out using an award or 
                under a cooperative agreement under this section shall 
                be 50 cents for each Federal dollar that will be 
                directly allocated by a recipient described in 
                subparagraph (A) to serve small business concerns 
                located in a qualified census tract, as that term is 
                defined in section 42(d)(5)(C)(ii) of the Internal 
                Revenue Code of 1986. Federal dollars not so allocated 
                by that recipient shall be subject to the matching 
                requirements of subparagraph (A).
                    ``(C) Types of funding.--The non-Federal share of 
                the cost of an activity carried out by a recipient 
                shall be comprised of not less than 50 percent cash and 
                not more than 50 percent of indirect costs and in-kind 
                contributions, except that no such costs or 
                contributions may be derived from funds from any other 
                Federal program.
                    ``(D) Rankings.--For purposes of subparagraph (A), 
                the Administrator shall reevaluate the ranking of a 
                State once every 2 fiscal years, beginning with fiscal 
                year 2001, based on the most recent statistics compiled 
                by the Administrator.
            ``(3) Duration.--Awards may be made or cooperative 
        agreements entered into under this section for multiple years, 
        not to exceed 5 years in total.
    ``(f) Reports.--
            ``(1) Initial report.--Not later than 120 days after the 
        date of enactment of the Small Business Innovation Research 
        Program Reauthorization Act of 2000, the Administrator shall 
        prepare and submit to the Committee on Small Business of the 
        Senate and the Committee on Science and the Committee on Small 
        Business of the House of Representatives a report, which shall 
        include, with respect to the FAST program, including Mentoring 
        Networks--
                    ``(A) a description of the structure and procedures 
                of the program;
                    ``(B) a management plan for the program; and
                    ``(C) a description of the merit-based review 
                process to be used in the program.
            ``(2) Annual reports.--The Administrator shall submit an 
        annual report to the Committee on Small Business of the Senate 
        and the Committee on Science and the Committee on Small 
        Business of the House of Representatives regarding--
                    ``(A) the number and amount of awards provided and 
                cooperative agreements entered into under the FAST 
                program during the preceding year;
                    ``(B) a list of recipients under this section, 
                including their location and the activities being 
                performed with the awards made or under the cooperative 
                agreements entered into; and
                    ``(C) the Mentoring Networks and the mentoring 
                database, as provided for under section 35, including--
                            ``(i) the status of the inclusion of 
                        mentoring information in the database required 
                        by section 9(k); and
                            ``(ii) the status of the implementation and 
                        description of the usage of the Mentoring 
                        Networks.
    ``(g) Reviews by Inspector General.--
            ``(1) In general.--The Inspector General of the 
        Administration shall conduct a review of--
                    ``(A) the extent to which recipients under the FAST 
                program are measuring the performance of the activities 
                being conducted and the results of such measurements; 
                and
                    ``(B) the overall management and effectiveness of 
                the FAST program.
            ``(2) Report.--During the first quarter of fiscal year 
        2004, the Inspector General of the Administration shall submit 
        a report to the Committee on Small Business of the Senate and 
        the Committee on Science and the Committee on Small Business of 
        the House of Representatives on the review conducted under 
        paragraph (1).
    ``(h) Program Levels.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out the FAST program, including Mentoring Networks, 
        under this section and section 35, $10,000,000 for each of 
        fiscal years 2001 through 2005.
            ``(2) Mentoring database.--Of the total amount made 
        available under paragraph (1) for fiscal years 2001 through 
        2005, a reasonable amount, not to exceed a total of $500,000, 
        may be used by the Administration to carry out section 35(d).
    ``(i) Termination.--The authority to carry out the FAST program 
under this section shall terminate on September 30, 2005.''.
    (c) Coordination of Technology Development Programs.--Section 9 of 
the Small Business Act (15 U.S.C. 638) is amended by adding at the end 
the following:
    ``(u) Coordination of Technology Development Programs.--
            ``(1) Definition of technology development program.--In 
        this subsection, the term `technology development program' 
        means--
                    ``(A) the Experimental Program to Stimulate 
                Competitive Research of the National Science 
                Foundation, as established under section 113 of the 
                National Science Foundation Authorization Act of 1988 
                (42 U.S.C. 1862g);
                    ``(B) the Defense Experimental Program to Stimulate 
                Competitive Research of the Department of Defense;
                    ``(C) the Experimental Program to Stimulate 
                Competitive Research of the Department of Energy;
                    ``(D) the Experimental Program to Stimulate 
                Competitive Research of the Environmental Protection 
                Agency;
                    ``(E) the Experimental Program to Stimulate 
                Competitive Research of the National Aeronautics and 
                Space Administration;
                    ``(F) the Institutional Development Award Program 
                of the National Institutes of Health; and
                    ``(G) the National Research Initiative Competitive 
                Grants Program of the Department of Agriculture.
            ``(2) Coordination requirements.--Each Federal agency that 
        is subject to subsection (f) and that has established a 
        technology development program may, in each fiscal year, review 
        for funding under that technology development program--
                    ``(A) any proposal to provide outreach and 
                assistance to 1 or more small business concerns 
                interested in participating in the SBIR program, 
                including any proposal to make a grant or loan to a 
                company to pay a portion or all of the cost of 
                developing an SBIR proposal, from an entity, 
                organization, or individual located in--
                            ``(i) a State that is eligible to 
                        participate in that program; or
                            ``(ii) a State described in paragraph (3); 
                        or
                    ``(B) any proposal for the first phase of the SBIR 
                program, if the proposal, though meritorious, is not 
                funded through the SBIR program for that fiscal year 
                due to funding restraints, from a small business 
                concern located in--
                            ``(i) a State that is eligible to 
                        participate in a technology development 
                        program; or
                            ``(ii) a State described in paragraph (3).
            ``(3) Additionally eligible state.--A State referred to in 
        subparagraph (A)(ii) or (B)(ii) of paragraph (2) is a State in 
        which the total value of contracts awarded to small business 
        concerns under all SBIR programs is less than the total value 
        of contracts awarded to small business concerns in a majority 
        of other States, as determined by the Administrator in biennial 
        fiscal years, beginning with fiscal year 2000, based on the 
        most recent statistics compiled by the Administrator.''.

SEC. 112. MENTORING NETWORKS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting after section 34, as added by section 111(b)(2) of this Act, 
the following:

``SEC. 35. MENTORING NETWORKS.

    ``(a) Findings.--Congress finds that--
            ``(1) the SBIR and STTR programs create jobs, increase 
        capacity for technological innovation, and boost international 
        competitiveness;
            ``(2) increasing the quantity of applications from all 
        States to the SBIR and STTR programs would enhance competition 
        for such awards and the quality of the completed projects; and
            ``(3) mentoring is a natural complement to the FAST program 
        of reaching out to new companies regarding the SBIR and STTR 
        programs as an effective and low-cost way to improve the 
        likelihood that such companies will succeed in such programs in 
        developing and commercializing their research.
    ``(b) Authorization for Mentoring Networks.--The recipient of an 
award or participant in a cooperative agreement under section 34 may 
use a reasonable amount of such assistance for the establishment of a 
Mentoring Network under this section.
    ``(c) Criteria for Mentoring Networks.--A Mentoring Network 
established using assistance under section 34 shall--
            ``(1) provide business advice and counseling to high 
        technology small business concerns located in the State or 
        region served by the Mentoring Network and identified under 
        section 34(c)(1)(E)(ii) as potential candidates for the SBIR or 
        STTR programs;
            ``(2) identify volunteer mentors who--
                    ``(A) are persons associated with a small business 
                concern that has successfully completed one or more 
                SBIR or STTR funding agreements; and
                    ``(B) have agreed to guide small business concerns 
                through all stages of the SBIR or STTR program process, 
                including providing assistance relating to--
                            ``(i) proposal writing;
                            ``(ii) marketing;
                            ``(iii) Government accounting;
                            ``(iv) Government audits;
                            ``(v) project facilities and equipment;
                            ``(vi) human resources;
                            ``(vii) third phase partners;
                            ``(viii) commercialization;
                            ``(ix) venture capital networking; and
                            ``(x) other matters relevant to the SBIR 
                        and STTR programs;
            ``(3) have experience working with small business concerns 
        participating in the SBIR and STTR programs;
            ``(4) contribute information to the national database 
        referred to in subsection (d); and
            ``(5) agree to reimburse volunteer mentors for out-of-
        pocket expenses related to service as a mentor under this 
        section.
    ``(d) Mentoring Database.--The Administrator shall--
            ``(1) include in the database required by section 9(k)(1), 
        in cooperation with the SBIR, STTR, and FAST programs, 
        information on Mentoring Networks and mentors participating 
        under this section, including a description of their areas of 
        expertise;
            ``(2) work cooperatively with Mentoring Networks to 
        maintain and update the database;
            ``(3) take such action as may be necessary to aggressively 
        promote Mentoring Networks under this section; and
            ``(4) fulfill the requirements of this subsection either 
        directly or by contract.''.

SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is further amended by adding at the end the following:
    ``(v) Simplified Reporting Requirements.--The Administrator shall 
work with the Federal agencies required by this section to have an SBIR 
program to standardize reporting requirements for the collection of 
data from SBIR applicants and awardees, including data for inclusion in 
the database under subsection (k), taking into consideration the unique 
needs of each agency, and to the extent possible, permitting the 
updating of previously reported information by electronic means. Such 
requirements shall be designed to minimize the burden on small 
businesses.''.

SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.

    (a) Extension of Termination Date.--Section 501(b)(2) of the Small 
Business Reauthorization Act of 1997 (15 U.S.C. 638 note; 111 Stat. 
2622) is amended by striking ``2001'' and inserting ``2005''.
    (b) Extension of Authorization of Appropriations.--Section 9(s)(2) 
of the Small Business Act (15 U.S.C. 638(s)(2)) is amended by striking 
``for fiscal year 1998, 1999, 2000, or 2001'' and inserting ``for each 
of the fiscal years 2000 through 2005,''.

                    TITLE II--BUSINESS LOAN PROGRAMS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Small Business Loan Improvement 
Act of 2000''.

SEC. 202. LEVELS OF PARTICIPATION.

    Section 7(a)(2)(A) of the Small Business Act (15 U.S.C. 
636(a)(2)(A)) is amended--
            (1) in paragraph (i) by striking ``$100,000'' and inserting 
        ``$150,000''; and
            (2) in paragraph (ii)--
                    (A) by striking ``80 percent'' and inserting ``85 
                percent''; and
                    (B) by striking ``$100,000'' and inserting 
                ``$150,000''.

SEC. 203. LOAN AMOUNTS.

    Section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 
636(a)(3)(A)) is amended by striking ``$750,000,'' and inserting, 
``$1,000,000 (or if the gross loan amount would exceed $2,000,000),''.

SEC. 204. INTEREST ON DEFAULTED LOANS.

    Section 7(a)(4)(B) of the Small Business Act (15 U.S.C. 
636(a)(4)(B)) is amended by adding at the end the following:
                            ``(iii) Applicability.--Clauses (i) and 
                        (ii) shall not apply to loans made on or after 
                        October 1, 2000.''.

SEC. 205. PREPAYMENT OF LOANS.

    Section 7(a)(4) of the Small Business Act (15 U.S.C. 636(a)(4)) is 
further amended--
            (1) by striking ``(4) Interest rates and fees.--'' and 
        inserting ``(4) Interest rates and prepayment charges.--''; and
            (2) by adding at the end the following:
                    ``(C) Prepayment charges.--
                            ``(i) In general.--A borrower who prepays 
                        any loan guaranteed under this subsection shall 
                        remit to the Administration a subsidy 
                        recoupment fee calculated in accordance with 
                        clause (ii) if--
                                    ``(I) the loan is for a term of not 
                                less than 15 years;
                                    ``(II) the prepayment is voluntary;
                                    ``(III) the amount of prepayment in 
                                any calendar year is more than 25 
                                percent of the outstanding balance of 
                                the loan; and
                                    ``(IV) the prepayment is made 
                                within the first 3 years after 
                                disbursement of the loan proceeds.
                            ``(ii) Subsidy recoupment fee.--The subsidy 
                        recoupment fee charged under clause (i) shall 
                        be--
                                    ``(I) 5 percent of the amount of 
                                prepayment, if the borrower prepays 
                                during the first year after 
                                disbursement;
                                    ``(II) 3 percent of the amount of 
                                prepayment, if the borrower prepays 
                                during the second year after 
                                disbursement; and
                                    ``(III) 1 percent of the amount of 
                                prepayment, if the borrower prepays 
                                during the third year after 
                                disbursement.''.

SEC. 206. GUARANTEE FEES.

    Section 7(a)(18) of the Small Business Act (15 U.S.C. 636(a)(18)) 
is amended to read as follows:
            ``(18) Guarantee fees.--
                    ``(A) In general.--With respect to each loan 
                guaranteed under this subsection (other than a loan 
                that is repayable in 1 year or less), the 
                Administration shall collect a guarantee fee, which 
                shall be payable by the participating lender, and may 
                be charged to the borrower, as follows:
                            ``(i) A guarantee fee equal to 2 percent of 
                        the deferred participation share of a total 
                        loan amount that is not more than $150,000.
                            ``(ii) A guarantee fee equal to 3 percent 
                        of the deferred participation share of a total 
                        loan amount that is more than $150,000, but not 
                        more than $700,000.
                            ``(iii) A guarantee fee equal to 3.5 
                        percent of the deferred participation share of 
                        a total loan amount that is more than $700,000.
                    ``(B) Retention of certain fees.--Lenders 
                participating in the programs established under this 
                subsection may retain not more than 25 percent of a fee 
                collected under subparagraph (A)(i).''.

SEC. 207. LEASE TERMS.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
further amended by adding at the end the following:
            ``(28) Leasing.--In addition to such other lease 
        arrangements as may be authorized by the Administration, a 
        borrower may permanently lease to one or more tenants not more 
        than 20 percent of any property constructed with the proceeds 
        of a loan guaranteed under this subsection, if the borrower 
        permanently occupies and uses not less than 60 percent of the 
        total business space in the property.''.

SEC. 208. APPRAISALS FOR LOANS SECURED BY REAL PROPERTY.

    (a) 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:
            ``(29) Real estate appraisals.--With respect to a loan 
        under this subsection that is secured by commercial real 
        property, an appraisal of such property by a State licensed or 
        certified appraiser--
                    ``(A) shall be required by the Administration in 
                connection with any such loan for more than $250,000; 
                or
                    ``(B) may be required by the Administration or the 
                lender in connection with any such loan for $250,000 or 
                less, if such appraisal is necessary for appropriate 
                evaluation of creditworthiness.''.
    (b) Small Business Investment Act of 1958.--Section 502(3)(E) of 
the Small Business Investment Act of 1958 (15 U.S.C. 696(3)(E)) is 
amended--
            (1) by striking ``The collateral'' and inserting the 
        following:
                            ``(i) In general.--The collateral''; and
            (2) by adding at the end the following:
                            ``(ii) Appraisals.--With respect to 
                        commercial real property provided by the small 
                        business concern as collateral, an appraisal of 
                        the property by a State licensed or certified 
                        appraiser--
                                    ``(I) shall be required by the 
                                Administration before disbursement of 
                                the loan if the estimated value of that 
                                property is more than $250,000; or
                                    ``(II) may be required by the 
                                Administration or the lender before 
                                disbursement of the loan if the 
                                estimated value of that property is 
                                $250,000 or less, and such appraisal is 
                                necessary for appropriate evaluation of 
                                creditworthiness.''.

SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EXPORT PURPOSES.

    Section 5(f)(1)(C) of the Small Business Act (15 U.S.C. 
634(f)(1)(C)) is amended to read as follows:
            ``(C) each loan, except each loan made under section 
        7(a)(14), shall have been fully disbursed to the borrower prior 
        to any sale.''.

SEC. 210. MICROLOAN PROGRAM.

    (a) In General.--Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended--
            (1) in paragraphs (1)(B)(iii) and (3)(E), by striking 
        ``$25,000'' each place it appears and inserting ``$35,000'';
            (2) in paragraphs (1)(A)(iii)(I), (3)(A)(ii), and 
        (4)(C)(i)(II), by striking ``$7,500'' each place it appears and 
        inserting ``$10,000'';
            (3) in paragraph (3)(E), by striking ``$15,000'' and 
        inserting ``$20,000'';
            (4) in paragraph (5)(A)--
                    (A) by striking ``25 grants'' and inserting ``55 
                grants''; and
                    (B) by striking ``$125,000'' and inserting 
                ``$200,000'';
            (5) in paragraph (6)(B), by striking ``$10,000'' and 
        inserting ``$15,000''; and
            (6) in paragraph (7), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) Number of participants.--Under the program 
                authorized by this subsection, the Administration may 
                fund, on a competitive basis, not more than 300 
                intermediaries.''.
    (b) Conforming Amendments.--Section 7(m)(11)(B) of the Small 
Business Act (15 U.S.C. 636(m)(11)(B)) is amended by striking 
``$25,000'' and inserting ``$35,000''.

            TITLE III--CERTIFIED DEVELOPMENT COMPANY PROGRAM

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Certified Development Company 
Program Improvements Act of 2000''.

SEC. 302. WOMEN-OWNED BUSINESSES.

    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 before the comma ``or 
women-owned business development''.

SEC. 303. MAXIMUM DEBENTURE SIZE.

    Section 502(2) of the Small Business Investment Act of 1958 (15 
U.S.C. 696(2)) is amended to read as follows:
            ``(2) Loans made by the Administration under this section 
        shall be limited to $1,000,000 for each such identifiable small 
        business concern, except loans meeting the criteria specified 
        in section 501(d)(3), which shall be limited to $1,300,000 for 
        each such identifiable small business concern.''.

SEC. 304. FEES.

    Section 503(f) of the Small Business Investment Act of 1958 (15 
U.S.C. 697(f)) is amended to read as follows:
    ``(f) Effective Date.--The fees authorized by subsections (b) and 
(d) shall apply to financings approved by the Administration on or 
after October 1, 1996, but shall not apply to financings approved by 
the Administration on or after October 1, 2003.''.

SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.

    Section 217(b) of the Small Business Administration Reauthorization 
and Amendments Act of 1994 (Public Law 103-403, 15 U.S.C. 697 note) 
(relating to section 508 of the Small Business Investment Act of 1958) 
is repealed.

SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.

    Section 508 of the Small Business Investment Act of 1958 (15 U.S.C. 
697e) is amended--
            (1) in subsection (a), by striking ``On a pilot program 
        basis, the'' and inserting ``The'';
            (2) by redesignating subsections (d) through (i) as 
        subsections (e) through (j), respectively;
            (3) in subsection (f) (as redesignated by paragraph (2)), 
        by striking ``subsection (f)'' and inserting ``subsection 
        (g)'';
            (4) in subsection (h) (as redesignated by paragraph (2)), 
        by striking ``subsection (f)'' and inserting ``subsection 
        (g)''; and
            (5) by inserting after subsection (c) the following:
    ``(d) Sale of Certain Defaulted Loans.--
            ``(1) Notice.--If, upon default in repayment, the 
        Administration acquires a loan guaranteed under this section 
        and identifies such loan for inclusion in a bulk asset sale of 
        defaulted or repurchased loans or other financings, it shall 
        give prior notice thereof to any certified development company 
        which has a contingent liability under this section. The notice 
        shall be given to the company as soon as possible after the 
        financing is identified, but not less than 90 days before the 
        date the Administration first makes any records on such 
        financing available for examination by prospective purchasers 
        prior to its offering in a package of loans for bulk sale.
            ``(2) Limitations.--The Administration shall not offer any 
        loan described in paragraph (1) as part of a bulk sale unless 
        it--
                    ``(A) provides prospective purchasers with the 
                opportunity to examine the Administration's records 
                with respect to such loan; and
                    ``(B) provides the notice required by paragraph 
                (1).''.

SEC. 307. LOAN LIQUIDATION.

    (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) Delegation of Authority.--In accordance with this section, 
the Administration shall delegate to any qualified State or local 
development company (as defined in section 503(e)) that meets the 
eligibility requirements of subsection (b)(1) the authority to 
foreclose and liquidate, or to otherwise treat in accordance with this 
section, defaulted loans in its portfolio that are funded with the 
proceeds of debentures guaranteed by the Administration under section 
503.
    ``(b) Eligibility for Delegation.--
            ``(1) Requirements.--A qualified State or local development 
        company shall be eligible for a delegation of authority under 
        subsection (a) if--
                    ``(A) the company--
                            ``(i) has participated in the loan 
                        liquidation pilot program established by the 
                        Small Business Programs Improvement Act of 1996 
                        (15 U.S.C. 695 note), as in effect on the day 
                        before promulgation of final regulations by the 
                        Administration implementing this section;
                            ``(ii) is participating in the Premier 
                        Certified Lenders Program under section 508; or
                            ``(iii) during the 3 fiscal years 
                        immediately prior to seeking such a delegation, 
                        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) the company--
                            ``(i) has one or more employees--
                                    ``(I) with 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) who have 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 paragraph; or
                            ``(ii) submits to the Administration 
                        documentation demonstrating that the company 
                        has contracted with a qualified third-party to 
                        perform any liquidation activities and secures 
                        the approval of the contract by the 
                        Administration with respect to the 
                        qualifications of the contractor and the terms 
                        and conditions of liquidation activities.
            ``(2) Confirmation.--On request the Administration shall 
        examine the qualifications of any company described in 
        subsection (a) to determine if such company is eligible for the 
        delegation of authority under this section. If the 
        Administration determines that a company is not eligible, the 
        Administration shall provide the company with the reasons for 
        such ineligibility.
    ``(c) Scope of Delegated Authority.--
            ``(1) In general.--Each qualified State or local 
        development company to which the Administration delegates 
        authority under section (a) may with respect to any loan 
        described in subsection (a)--
                    ``(A) perform all liquidation and foreclosure 
                functions, including the purchase in accordance with 
                this subsection of any other indebtedness secured by 
                the property securing the loan, in a reasonable and 
                sound manner according to commercially accepted 
                practices, pursuant to a liquidation plan approved in 
                advance by the Administration under paragraph (2)(A);
                    ``(B) litigate any matter relating to the 
                performance of the functions described in subparagraph 
                (A), except that the Administration may--
                            ``(i) defend or bring any claim 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 to a qualified State or local 
                                development company and such remedies 
                                will benefit either the Administration 
                                or the qualified State or local 
                                development company; or
                            ``(ii) oversee the conduct of any such 
                        litigation; and
                    ``(C) take other appropriate actions to mitigate 
                loan losses in lieu of total liquidation or 
                foreclosures, including the restructuring of a loan in 
                accordance with prudent loan servicing practices and 
                pursuant to a workout plan approved in advance by the 
                Administration under paragraph (2)(C).
            ``(2) Administration approval.--
                    ``(A) Liquidation plan.--
                            ``(i) In general.--Before carrying out 
                        functions described in paragraph (1)(A), a 
                        qualified State or local development company 
                        shall submit to the Administration a proposed 
                        liquidation plan.
                            ``(ii) Administration action on plan.--
                                    ``(I) Timing.--Not later than 15 
                                business days after a liquidation plan 
                                is received by the Administration under 
                                clause (i), the Administration shall 
                                approve or reject the plan.
                                    ``(II) Notice of no decision.--With 
                                respect to any plan that cannot be 
                                approved or denied within the 15-day 
                                period required by subclause (I), the 
                                Administration shall within such period 
                                provide in accordance with subparagraph 
                                (E) notice to the company that 
                                submitted the plan.
                            ``(iii) Routine actions.--In carrying out 
                        functions described in paragraph (1)(A), a 
                        qualified State or local development company 
                        may undertake routine actions not addressed in 
                        a liquidation plan without obtaining additional 
                        approval from the Administration.
                    ``(B) Purchase of indebtedness.--
                            ``(i) In general.--In carrying out 
                        functions described in paragraph (1)(A), a 
                        qualified State or local development company 
                        shall submit to the Administration a request 
                        for written approval before committing the 
                        Administration to the purchase of any other 
                        indebtedness secured by the property securing a 
                        defaulted loan.
                            ``(ii) Administration action on request.--
                                    ``(I) Timing.--Not later than 15 
                                business days after receiving a request 
                                under clause (i), the Administration 
                                shall approve or deny the request.
                                    ``(II) Notice of no decision.--With 
                                respect to any request that cannot be 
                                approved or denied within the 15-day 
                                period required by subclause (I), the 
                                Administration shall within such period 
                                provide in accordance with subparagraph 
                                (E) notice to the company that 
                                submitted the request.
                    ``(C) Workout plan.--
                            ``(i) In general.--In carrying out 
                        functions described in paragraph (1)(C), a 
                        qualified State or local development company 
                        shall submit to the Administration a proposed 
                        workout plan.
                            ``(ii) Administration action on plan.--
                                    ``(I) Timing.--Not later than 15 
                                business days after a workout plan is 
                                received by the Administration under 
                                clause (i), the Administration shall 
                                approve or reject the plan.
                                    ``(II) Notice of no decision.--With 
                                respect to any workout plan that cannot 
                                be approved or denied within the 15-day 
                                period required by subclause (I), the 
                                Administration shall within such period 
                                provide in accordance with subparagraph 
                                (E) notice to the company that 
                                submitted the plan.
                    ``(D) Compromise of indebtedness.--In carrying out 
                functions described in 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 the company secures the written approval of 
                        the Administration.
                    ``(E) Contents of notice of no decision.--Any 
                notice provided by the Administration under 
                subparagraph (A)(ii)(II), (B)(ii)(II), or (C)(ii)(II)--
                            ``(i) shall be in writing;
                            ``(ii) shall state the specific reason for 
                        the Administration's inability to act on a plan 
                        or request;
                            ``(iii) shall include an estimate of the 
                        additional time required by the Administration 
                        to act on the plan or request; and
                            ``(iv) if the Administration cannot act 
                        because insufficient information or 
                        documentation was provided by the company 
                        submitting the plan or request, shall specify 
                        the nature of such additional information or 
                        documentation.
            ``(3) Conflict of interest.--In carrying out functions 
        described in paragraph (1), a qualified State or local 
        development company shall take no action that would result in 
        an actual or apparent conflict of interest between the company 
        (or any employee of the company) and any third party lender, 
        associate of a third party lender, or any other person 
        participating in a liquidation, foreclosure, or loss mitigation 
        action.
    ``(d) Suspension or Revocation of Authority.--The Administration 
may revoke or suspend a delegation of authority under this section to 
any qualified State or local development company, if the Administration 
determines that the company--
            ``(1) does not meet the requirements of subsection (b)(1);
            ``(2) has violated any applicable rule or regulation of the 
        Administration or any other applicable law; or
            ``(3) fails to comply with any reporting requirement that 
        may be established by the Administration relating to carrying 
        out of functions described in paragraph (1).
    ``(e) Report.--
            ``(1) In general.--Based on information provided by 
        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 of the Senate a report on the results of delegation of 
        authority under this section.
            ``(2) Contents.--Each report submitted under paragraph (1) 
        shall include the following information:
                    ``(A) With respect to each loan foreclosed or 
                liquidated by a qualified State or local development 
                company under this section, or for which losses were 
                otherwise mitigated by the company pursuant to a 
                workout plan under this section--
                            ``(i) the total cost of the 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 of liquidation, foreclosure, or 
                        mitigation of loss;
                            ``(iv) the total dollar losses resulting 
                        from the liquidation, foreclosure, or 
                        mitigation of loss; and
                            ``(v) the total recoveries resulting from 
                        the liquidation, foreclosure, or mitigation of 
                        loss, both as a percentage of the amount 
                        guaranteed and the total cost of the project 
                        financed.
                    ``(B) With respect to each qualified State or local 
                development company to which authority is delegated 
                under this section, the totals of each of the amounts 
                described in clauses (i) through (v) of subparagraph 
                (A).
                    ``(C) With respect to all loans subject to 
                foreclosure, liquidation, or mitigation under this 
                section, the totals of each of the amounts described in 
                clauses (i) through (v) of subparagraph (A).
                    ``(D) A comparison between--
                            ``(i) the information provided under 
                        subparagraph (C) with respect to 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, or otherwise 
                        treated, by the Administration during the same 
                        period.
                    ``(E) The number of times that the Administration 
                has failed to approve or reject a liquidation plan in 
                accordance with subparagraph (A)(i), a workout plan in 
                accordance with subparagraph (C)(i), or to approve or 
                deny a request for purchase of indebtedness under 
                subparagraph (B)(i), including specific information 
                regarding the reasons for the Administration's failure 
                and any delays that resulted.''.
    (b) Regulations.--
            (1) In general.--Not later than 150 days after the date of 
        enactment of this Act, the Administrator shall issue 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) Termination of pilot program.--Beginning on the date on 
        which final regulations are issued under paragraph (1), section 
        204 of the Small Business Programs Improvement Act of 1996 (15 
        U.S.C. 695 note) shall cease to have effect.

   TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Small Business Investment 
Corrections Act of 2000''.

SEC. 402. DEFINITIONS.

    (a) Small Business Concern.--Section 103(5)(A)(i) of the Small 
Business Investment Act of 1958 (15 U.S.C. 662(5)(A)(i)) is amended by 
inserting before the semicolon at the end the following: ``regardless 
of the allocation of control during the investment period under any 
investment agreement between the business concern and the entity making 
the investment''.
    (b) Long Term.--Section 103 of the Small Business Investment Act of 
1958 (15 U.S.C. 662) is amended--
            (1) in paragraph (15), by striking ``and'' at the end;
            (2) in paragraph (16), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(17) the term `long term', when used in connection with 
        equity capital or loan funds invested in any small business 
        concern or smaller enterprise, means any period of time not 
        less than 1 year.''.

SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES.

    Section 302(b) of the Small Business Investment Act of 1958 (15 
U.S.C. 682(b)) is amended--
            (1) by striking ``(b) Notwithstanding'' and inserting the 
        following:
    ``(b) Financial Institution Investments.--
            ``(1) Certain banks.--Notwithstanding''; and
            (2) by adding at the end the following:
            ``(2) Certain savings associations.--Notwithstanding any 
        other provision of law, any Federal savings association may 
        invest in any 1 or more small business investment companies, or 
        in any entity established to invest solely in small business 
        investment companies, except that in no event may the total 
        amount of such investments by any such Federal savings 
        association exceed 5 percent of the capital and surplus of the 
        Federal savings association.''.

SEC. 404. SUBSIDY FEES.

    (a) Debentures.--Section 303(b) of the Small Business Investment 
Act of 1958 (15 U.S.C. 683(b)) is amended by striking ``plus an 
additional charge of 1 percent per annum which shall be paid to and 
retained by the Administration'' and inserting ``plus, for debentures 
obligated after September 30, 2000, an additional charge, in an amount 
established annually by the Administration, of not more than 1 percent 
per year as necessary to reduce to zero the cost (as defined in section 
502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to the 
Administration of purchasing and guaranteeing debentures under this 
Act, which shall be paid to and retained by the Administration''.
    (b) Participating Securities.--Section 303(g)(2) of the Small 
Business Investment Act of 1958 (15 U.S.C. 683(g)(2)) is amended by 
striking ``plus an additional charge of 1 percent per annum which shall 
be paid to and retained by the Administration'' and inserting ``plus, 
for participating securities obligated after September 30, 2000, an 
additional charge, in an amount established annually by the 
Administration, of not more than 1 percent per year as necessary to 
reduce to zero the cost (as defined in section 502 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Administration of 
purchasing and guaranteeing participating securities under this Act, 
which shall be paid to and retained by the Administration''.

SEC. 405. DISTRIBUTIONS.

    Section 303(g)(8) of the Small Business Investment Act of 1958 (15 
U.S.C. 683(g)(8)) is amended--
            (1) by striking ``subchapter s corporation'' and inserting 
        ``subchapter S corporation'';
            (2) by striking ``the end of any calendar quarter based on 
        a quarterly'' and inserting ``any time during any calendar 
        quarter based on an''; and
            (3) by striking ``quarterly distributions for a calendar 
        year,'' and inserting ``interim distributions for a calendar 
        year,''.

SEC. 406. CONFORMING AMENDMENT.

    Section 310(c)(4) of the Small Business Investment Act of 1958 (15 
U.S.C. 687b(c)(4)) is amended by striking ``five years'' and inserting 
``1 year''.

          TITLE V--REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Small Business Programs 
Reauthorization Act of 2000''.

SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended by adding at the end the following:
    ``(g) Fiscal Year 2001.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2001:
                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                            ``(i) $45,000,000 in technical assistance 
                        grants as provided in section 7(m); and
                            ``(ii) $60,000,000 in direct loans, as 
                        provided in 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $19,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                            ``(i) $14,500,000,000 in general business 
                        loans as provided in section 7(a);
                            ``(ii) $4,000,000,000 in financings as 
                        provided in section 7(a)(13) of this Act and 
                        section 504 of the Small Business Investment 
                        Act of 1958;
                            ``(iii) $500,000,000 in loans as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                            ``(i) $2,500,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $1,500,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administration is authorized to enter into 
                guarantees not to exceed $4,000,000,000 of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administration is authorized to make 
                grants or enter cooperative agreements for a total 
                amount of $5,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to 
                the Administration for fiscal year 2001 such sums as 
                may be necessary to carry out the provisions of this 
                Act not elsewhere provided for, including 
                administrative expenses and necessary loan capital for 
                disaster loans pursuant to section 7(b), and to carry 
                out title IV of the Small Business Investment Act of 
                1958, including salaries and expenses of the 
                Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2001--
                            ``(i) no funds are authorized to be used as 
                        loan capital for the loan program authorized by 
                        section 7(a)(21) except by transfer from 
                        another Federal department or agency to the 
                        Administration, unless the program level 
                        authorized for general business loans under 
                        paragraph (1)(B)(i) is fully funded; and
                            ``(ii) the Administration may not approve 
                        loans on its own behalf or on behalf of any 
                        other Federal department or agency, by contract 
                        or otherwise, under terms and conditions other 
                        than those specifically authorized under this 
                        Act or the Small Business Investment Act of 
                        1958, except that it may approve loans under 
                        section 7(a)(21) of this Act in gross amounts 
                        of not more than $1,250,000.
    ``(h) Fiscal Year 2002.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2002:
                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                            ``(i) $60,000,000 in technical assistance 
                        grants as provided in section 7(m); and
                            ``(ii) $80,000,000 in direct loans, as 
                        provided in 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $20,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                            ``(i) $15,000,000,000 in general business 
                        loans as provided in section 7(a);
                            ``(ii) $4,500,000,000 in financings as 
                        provided in section 7(a)(13) of this Act and 
                        section 504 of the Small Business Investment 
                        Act of 1958;
                            ``(iii) $500,000,000 in loans as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                            ``(i) $3,500,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $2,500,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administration is authorized to enter into 
                guarantees not to exceed $5,000,000,000 of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administration is authorized to make 
                grants or enter cooperative agreements for a total 
                amount of $6,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to 
                the Administration for fiscal year 2002 such sums as 
                may be necessary to carry out the provisions of this 
                Act not elsewhere provided for, including 
                administrative expenses and necessary loan capital for 
                disaster loans pursuant to section 7(b), and to carry 
                out title IV of the Small Business Investment Act of 
                1958, including salaries and expenses of the 
                Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2002--
                            ``(i) no funds are authorized to be used as 
                        loan capital for the loan program authorized by 
                        section 7(a)(21) except by transfer from 
                        another Federal department or agency to the 
                        Administration, unless the program level 
                        authorized for general business loans under 
                        paragraph (1)(B)(i) is fully funded; and
                            ``(ii) the Administration may not approve 
                        loans on its own behalf or on behalf of any 
                        other Federal department or agency, by contract 
                        or otherwise, under terms and conditions other 
                        than those specifically authorized under this 
                        Act or the Small Business Investment Act of 
                        1958, except that it may approve loans under 
                        section 7(a)(21) of this Act in gross amounts 
                        of not more than $1,250,000.
    ``(i) Fiscal Year 2003.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2003:
                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                            ``(i) $70,000,000 in technical assistance 
                        grants as provided in section 7(m); and
                            ``(ii) $100,000,000 in direct loans, as 
                        provided in 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $21,550,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                            ``(i) $16,000,000,000 in general business 
                        loans as provided in section 7(a);
                            ``(ii) $5,000,000,000 in financings as 
                        provided in section 7(a)(13) of this Act and 
                        section 504 of the Small Business Investment 
                        Act of 1958;
                            ``(iii) $500,000,000 in loans as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                            ``(i) $4,000,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $3,000,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administration is authorized to enter into 
                guarantees not to exceed $6,000,000,000 of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administration is authorized to make 
                grants or enter into cooperative agreements for a total 
                amount of $7,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to 
                the Administration for fiscal year 2003 such sums as 
                may be necessary to carry out the provisions of this 
                Act not elsewhere provided for, including 
                administrative expenses and necessary loan capital for 
                disaster loans pursuant to section 7(b), and to carry 
                out title IV of the Small Business Investment Act of 
                1958, including salaries and expenses of the 
                Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2003--
                            ``(i) no funds are authorized to be used as 
                        loan capital for the loan program authorized by 
                        section 7(a)(21) except by transfer from 
                        another Federal department or agency to the 
                        Administration, unless the program level 
                        authorized for general business loans under 
                        paragraph (1)(B)(i) is fully funded; and
                            ``(ii) the Administration may not approve 
                        loans on its own behalf or on behalf of any 
                        other Federal department or agency, by contract 
                        or otherwise, under terms and conditions other 
                        than those specifically authorized under this 
                        Act or the Small Business Investment Act of 
                        1958, except that it may approve loans under 
                        section 7(a)(21) of this Act in gross amounts 
                        of not more than $1,250,000.''.

SEC. 503. ADDITIONAL REAUTHORIZATIONS.

    (a) Drug-Free Workplace Program.--Section 27 of the Small Business 
Act (15 U.S.C. 654) is amended--
            (1) in the section heading, by striking ``drug-free 
        workplace demonstration program'' and inserting ``paul d. 
        coverdell drug-free workplace program''; and
            (2) in subsection (g)(1), by striking ``$10,000,000 for 
        fiscal years 1999 and 2000'' and inserting ``$5,000,000 for 
        each of fiscal years 2001 through 2003''.
    (b) HUBZone Program.--Section 31 of the Small Business Act (15 
U.S.C. 657a) is amended by adding at the end the following:
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the program established by this section 
$10,000,000 for each of fiscal years 2001 through 2003.''.
    (c) Very Small Business Concerns Program.--Section 304(i) of the 
Small Business Administration Reauthorization and Amendments Act of 
1994 (Public Law 103-403; 15 U.S.C. 644 note) is amended by striking 
``September 30, 2000'' and inserting ``September 30, 2003''.
    (d) Socially and Economically Disadvantaged Businesses Program.--
Section 7102(c) of the Federal Acquisition Streamlining Act of 1994 
(Public Law 103-355; 15 U.S.C. 644 note) is amended by striking 
``September 30, 2000'' and inserting ``September 30, 2003''.
    (e) SBDC Services.--Section 21(c)(3)(T) of the Small Business Act 
(15 U.S.C. 648(c)(3)(T)) is amended by striking ``2000'' and inserting 
``2003''.

SEC. 504. COSPONSORSHIP.

    (a) In General.--Section 8(b)(1)(A) of the Small Business Act (15 
U.S.C. 637(b)(1)(A)) is amended to read as follows:
            ``(1)(A) to provide--
                    ``(i) technical, managerial, and informational aids 
                to small business concerns--
                            ``(I) by advising and counseling on matters 
                        in connection with Government procurement and 
                        policies, principles, and practices of good 
                        management;
                            ``(II) by cooperating and advising with--
                                    ``(aa) voluntary business, 
                                professional, educational, and other 
                                nonprofit organizations, associations, 
                                and institutions (except that the 
                                Administration shall take such actions 
                                as it determines necessary to ensure 
                                that such cooperation does not 
                                constitute or imply an endorsement by 
                                the Administration of the organization 
                                or its products or services, and shall 
                                ensure that it receives appropriate 
                                recognition in all printed materials); 
                                and
                                    ``(bb) other Federal and State 
                                agencies;
                            ``(III) by maintaining a clearinghouse for 
                        information on managing, financing, and 
                        operating small business enterprises; and
                            ``(IV) by disseminating such information, 
                        including through recognition events, and by 
                        other activities that the Administration 
                        determines to be appropriate; and
                    ``(ii) through cooperation with a profit-making 
                concern (referred to in this paragraph as a 
                `cosponsor'), training, information, and education to 
                small business concerns, except that the Administration 
                shall--
                            ``(I) take such actions as it determines to 
                        be appropriate to ensure that--
                                    ``(aa) the Administration receives 
                                appropriate recognition and publicity;
                                    ``(bb) the cooperation does not 
                                constitute or imply an endorsement by 
                                the Administration of any product or 
                                service of the cosponsor;
                                    ``(cc) unnecessary promotion of the 
                                products or services of the cosponsor 
                                is avoided; and
                                    ``(dd) utilization of any 1 
                                cosponsor in a marketing area is 
                                minimized; and
                            ``(II) develop an agreement, executed on 
                        behalf of the Administration by an employee of 
                        the Administration in Washington, the District 
                        of Columbia, that provides, at a minimum, 
                        that--
                                    ``(aa) any printed material to 
                                announce the cosponsorship or to be 
                                distributed at the cosponsored 
                                activity, shall be approved in advance 
                                by the Administration;
                                    ``(bb) the terms and conditions of 
                                the cooperation shall be specified;
                                    ``(cc) only minimal charges may be 
                                imposed on any small business concern 
                                to cover the direct costs of providing 
                                the assistance;
                                    ``(dd) the Administration may 
                                provide to the cosponsorship mailing 
                                labels, but not lists of names and 
                                addresses of small business concerns 
                                compiled by the Administration;
                                    ``(ee) all printed materials 
                                containing the names of both the 
                                Administration and the cosponsor shall 
                                include a prominent disclaimer that the 
                                cooperation does not constitute or 
                                imply an endorsement by the 
                                Administration of any product or 
                                service of the cosponsor; and
                                    ``(ff) the Administration shall 
                                ensure that it receives appropriate 
                                recognition in all cosponsorship 
                                printed materials.''.
    (b) Extension of Cosponsorship Authority.--Section 401(a)(2) of the 
Small Business Administration Reauthorization and Amendments Act of 
1994 (15 U.S.C. 637 note) is amended by striking ``September 30, 2000'' 
and inserting ``September 30, 2003''.

                       TITLE VI--HUBZONE PROGRAM

                 Subtitle A--HUBZones in Native America

SEC. 601. SHORT TITLE.

    This subtitle may be cited as the ``HUBZones in Native America Act 
of 2000''.

SEC. 602. HUBZONE SMALL BUSINESS CONCERN.

    Section 3(p)(3) of the Small Business Act (15 U.S.C. 632(p)(3)) is 
amended to read as follows:
            ``(3) Hubzone small business concern.--The term `HUBZone 
        small business concern' means--
                    ``(A) a small business concern that is owned and 
                controlled by 1 or more persons, each of whom is a 
                United States citizen;
                    ``(B) a small business concern that is--
                            ``(i) an Alaska Native Corporation owned 
                        and controlled by Natives (as determined 
                        pursuant to section 29(e)(1) of the Alaska 
                        Native Claims Settlement Act (43 U.S.C. 
                        1626(e)(1))); or
                            ``(ii) a direct or indirect subsidiary 
                        corporation, joint venture, or partnership of 
                        an Alaska Native Corporation qualifying 
                        pursuant to section 29(e)(1) of the Alaska 
                        Native Claims Settlement Act (43 U.S.C. 
                        1626(e)(1)), if that subsidiary, joint venture, 
                        or partnership is owned and controlled by 
                        Natives (as determined pursuant to section 
                        29(e)(2)) of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1626(e)(2))); or
                    ``(C) a small business concern--
                            ``(i) that is wholly owned by 1 or more 
                        Indian tribal governments, or by a corporation 
                        that is wholly owned by 1 or more Indian tribal 
                        governments; or
                            ``(ii) that is owned in part by 1 or more 
                        Indian tribal governments, or by a corporation 
                        that is wholly owned by 1 or more Indian tribal 
                        governments, if all other owners are either 
                        United States citizens or small business 
                        concerns.''.

SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CONCERN.

    (a) In General.--Section 3(p)(5)(A)(i) of the Small Business Act 
(15 U.S.C. 632(p)(5)(A)(i)) is amended by striking subclauses (I) and 
(II) and inserting the following:
                                    ``(I) it is a HUBZone small 
                                business concern--
                                            ``(aa) pursuant to 
                                        subparagraph (A) or (B) of 
                                        paragraph (3), and that its 
                                        principal office is located in 
                                        a HUBZone and not fewer than 35 
                                        percent of its employees reside 
                                        in a HUBZone; or
                                            ``(bb) pursuant to 
                                        paragraph (3)(C), and not fewer 
                                        than 35 percent of its 
                                        employees engaged in performing 
                                        a contract awarded to the small 
                                        business concern on the basis 
                                        of a preference provided under 
                                        section 31(b) reside within any 
                                        Indian reservation governed by 
                                        1 or more of the tribal 
                                        government owners, or reside 
                                        within any HUBZone adjoining 
                                        any such Indian reservation;
                                    ``(II) the small business concern 
                                will attempt to maintain the applicable 
                                employment percentage under subclause 
                                (I) during the performance of any 
                                contract awarded to the small business 
                                concern on the basis of a preference 
                                provided under section 31(b); and''.
    (b) Clarifying Amendment.--Section 3(p)(5)(D)(i) of the Small 
Business Act (15 U.S.C. 632(p)(5)(D)(i)) is amended by inserting ``once 
the Administrator has made the certification required by subparagraph 
(A)(i) regarding a qualified HUBZone small business concern and has 
determined that subparagraph (A)(ii) does not apply to that concern,'' 
before ``include''.

SEC. 604. OTHER DEFINITIONS.

    Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is 
amended by adding at the end the following:
            ``(6) Native american small business concerns.--
                    ``(A) Alaska native corporation.--The term `Alaska 
                Native Corporation' has the same meaning as the term 
                `Native Corporation' in section 3 of the Alaska Native 
                Claims Settlement Act (43 U.S.C. 1602).
                    ``(B) Alaska native village.--The term `Alaska 
                Native Village' has the same meaning as the term 
                `Native village' in section 3 of the Alaska Native 
                Claims Settlement Act (43 U.S.C. 1602).
                    ``(C) Indian reservation.--The term `Indian 
                reservation'--
                            ``(i) has the same meaning as the term 
                        `Indian country' in section 1151 of title 18, 
                        United States Code, except that such term does 
                        not include--
                                    ``(I) any lands that are located 
                                within a State in which a tribe did not 
                                exercise governmental jurisdiction on 
                                the date of enactment of this 
                                paragraph, unless that tribe is 
                                recognized after that date of enactment 
                                by either an Act of Congress or 
                                pursuant to regulations of the 
                                Secretary of the Interior for the 
                                administrative recognition that an 
                                Indian group exists as an Indian tribe 
                                (part 83 of title 25, Code of Federal 
                                Regulations); and
                                    ``(II) lands taken into trust or 
                                acquired by an Indian tribe after the 
                                date of enactment of this paragraph if 
                                such lands are not located within the 
                                external boundaries of an Indian 
                                reservation or former reservation or 
                                are not contiguous to the lands held in 
                                trust or restricted status on that date 
                                of enactment; and
                            ``(ii) in the State of Oklahoma, means 
                        lands that--
                                    ``(I) are within the jurisdictional 
                                areas of an Oklahoma Indian tribe (as 
                                determined by the Secretary of the 
                                Interior); and
                                    ``(II) are recognized by the 
                                Secretary of the Interior as eligible 
                                for trust land status under part 151 of 
                                title 25, Code of Federal Regulations 
                                (as in effect on the date of enactment 
                                of this paragraph).''.

                  Subtitle B--Other HUBZone Provisions

SEC. 611. DEFINITIONS.

    (a) Qualified Census Tract.--Section 3(p)(4)(A) of the Small 
Business Act (15 U.S.C. 632(p)(4)(A)) is amended by striking ``(I)''.
    (b) Qualified Nonmetropolitan County.--Section 3(p)(4) of the Small 
Business Act (15 U.S.C. 632(p)(4)) is amended by striking subparagraph 
(B) and inserting the following:
                    ``(B) Qualified nonmetropolitan county.--The term 
                `qualified nonmetropolitan county' means any county--
                            ``(i) that was not located in a 
                        metropolitan statistical area (as defined in 
                        section 143(k)(2)(B) of the Internal Revenue 
                        Code of 1986) at the time of the most recent 
                        census taken for purposes of selecting 
                        qualified census tracts under section 
                        42(d)(5)(C)(ii) of the Internal Revenue Code of 
                        1986; and
                            ``(ii) in which--
                                    ``(I) the median household income 
                                is less than 80 percent of the 
                                nonmetropolitan State median household 
                                income, based on the most recent data 
                                available from the Bureau of the Census 
                                of the Department of Commerce; or
                                    ``(II) the unemployment rate is not 
                                less than 140 percent of the Statewide 
                                average unemployment rate for the State 
                                in which the county is located, based 
                                on the most recent data available from 
                                the Secretary of Labor.''.

SEC. 612. ELIGIBLE CONTRACTS.

    (a) Commodities Contracts.--Section 31(b)(3) of the Small Business 
Act (15 U.S.C. 657a(b)(3)) is amended--
            (1) by striking ``In any'' and inserting the following:
                    ``(A) In general.--Subject to subparagraph (B), in 
                any''; and
            (2) by adding at the end the following:
                    ``(B) Procurement of commodities.--For purchases by 
                the Secretary of Agriculture of agricultural 
                commodities, the price evaluation preference shall be--
                            ``(i) 10 percent, for the portion of a 
                        contract to be awarded that is not greater than 
                        25 percent of the total volume being procured 
                        for each commodity in a single invitation;
                            ``(ii) 5 percent, for the portion of a 
                        contract to be awarded that is greater than 25 
                        percent, but not greater than 40 percent, of 
                        the total volume being procured for each 
                        commodity in a single invitation; and
                            ``(iii) zero, for the portion of a contract 
                        to be awarded that is greater than 40 percent 
                        of the total volume being procured for each 
                        commodity in a single invitation.
                    ``(C) Treatment of preference.--A contract awarded 
                to a HUBZone small business concern under a preference 
                described in subparagraph (B) shall not be counted 
                toward the fulfillment of any requirement partially set 
                aside for competition restricted to small business 
                concerns.''.
    (b) Definitions.--Section 3(p) of the Small Business Act (15 U.S.C. 
632(p)), as amended by this Act, is amended--
            (1) in paragraph (5)(A)(i)(III)--
                    (A) in item (aa), by striking ``and'' at the end; 
                and
                    (B) by adding at the end the following:
                                            ``(cc) in the case of a 
                                        contract for the procurement by 
                                        the Secretary of Agriculture of 
                                        agricultural commodities, none 
                                        of the commodity being procured 
                                        will be obtained by the prime 
                                        contractor through a 
                                        subcontract for the purchase of 
                                        the commodity in substantially 
                                        the final form in which it is 
                                        to be supplied to the 
                                        Government; and''; and
            (2) by adding at the end the following:
            ``(7) Agricultural commodity.--The term `agricultural 
        commodity' has the same meaning as in section 102 of the 
        Agricultural Trade Act of 1978 (7 U.S.C. 5602).''.

SEC. 613. HUBZONE REDESIGNATED AREAS.

    Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``or'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(D) redesignated areas.''; and
            (2) in paragraph (4), by adding at the end the following:
                    ``(C) Redesignated area.--The term `redesignated 
                area' means any census tract that ceases to be 
                qualified under subparagraph (A) and any 
                nonmetropolitan county that ceases to be qualified 
                under subparagraph (B), except that a census tract or a 
                nonmetropolitan county may be a `redesignated area' 
                only for the 3-year period following the date on which 
                the census tract or nonmetropolitan county ceased to be 
                so qualified.''.

SEC. 614. COMMUNITY DEVELOPMENT.

    Section 3(p) of the Small Business Act (15 U.S.C. 632(p)), as 
amended by this Act, is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (B), by striking ``or'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(D) a small business concern that is--
                            ``(i) wholly owned by a community 
                        development corporation that has received 
                        financial assistance under Part 1 of Subchapter 
                        A of the Community Economic Development Act of 
                        1981 (42 U.S.C. 9805 et seq.); or
                            ``(ii) owned in part by 1 or more community 
                        development corporations, if all other owners 
                        are either United States citizens or small 
                        business concerns.''; and
            (2) in paragraph (5)(A)(i)(I)(aa), by striking 
        ``subparagraph (A) or (B)'' and inserting ``subparagraph (A), 
        (B), or (D)''.

SEC. 615. REFERENCE CORRECTIONS.

    (a) Section 3.--Section 3(p)(5)(C) of the Small Business Act (15 
U.S.C. 632(p)(5)(C)) is amended by striking ``subclause (IV) and (V) of 
subparagraph (A)(i)'' and inserting ``items (aa) and (bb) of 
subparagraph (A)(i)(III)''.
    (b) Section 8.--Section 8(d)(4)(D) of the Small Business Act (15 
U.S.C. 637(d)(4)(D)) is amended by inserting ``qualified HUBZone small 
business concerns,'' after ``small business concerns,''.

      TITLE VII--NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION

SEC. 701. SHORT TITLE.

    This title may be cited as the ``National Women's Business Council 
Reauthorization Act of 2000''.

SEC. 702. MEMBERSHIP OF THE COUNCIL.

    Section 407 of the Women's Business Ownership Act of 1988 (15 
U.S.C. 631 note) is amended--
            (1) in subsection (a), by striking ``Not later'' and all 
        that follows through ``the President'' and inserting ``The 
        President'';
            (2) in subsection (b)--
                    (A) by striking ``Not later'' and all that follows 
                through ``the Administrator'' and inserting ``The 
                Administrator''; and
                    (B) by striking ``the Assistant Administrator of 
                the Office of Women's Business Ownership and'';
            (3) in subsection (d), by striking ``, except that'' and 
        all that follows through the end of the subsection and 
        inserting a period; and
            (4) in subsection (h), by striking ``Not later'' and all 
        that follows through ``the Administrator'' and inserting ``The 
        Administrator''.

SEC. 703. REPEAL OF PROCUREMENT PROJECT.

    Section 409 of the Women's Business Ownership Act of 1988 (15 
U.S.C. 631 note) is repealed.

SEC. 704. STUDIES AND OTHER RESEARCH.

    Section 410 of the Women's Business Ownership Act of 1988 (15 
U.S.C. 631 note) is amended to read as follows:

``SEC. 409. STUDIES AND OTHER RESEARCH.

    ``(a) In General.--The Council may conduct such studies and other 
research relating to the award of Federal prime contracts and 
subcontracts to women-owned businesses, to access to credit and 
investment capital by women entrepreneurs, or to other issues relating 
to women-owned businesses, as the Council determines to be appropriate.
    ``(b) Contract Authority.--In conducting any study or other 
research under this section, the Council may contract with 1 or more 
public or private entities.''.

SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

    Section 411 of the Women's Business Ownership Act of 1988 (15 
U.S.C. 631 note) is amended to read as follows:

``SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to carry 
out this title $1,000,000, for each of fiscal years 2001 through 2003, 
of which $550,000 shall be available in each such fiscal year to carry 
out section 409.
    ``(b) Budget Review.--No amount made available under this section 
for any fiscal year may be obligated or expended by the Council before 
the date on which the Council reviews and approves the operating budget 
of the Council to carry out the responsibilities of the Council for 
that fiscal year.''.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

SEC. 801. LOAN APPLICATION PROCESSING.

    (a) Study.--The Administrator of the Small Business Administration 
shall conduct a study to determine the average time that the 
Administration requires to process an application for each type of loan 
or loan guarantee made under the Small Business Act (15 U.S.C. 631 et 
seq.).
    (b) Transmittal.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall transmit to Congress the results 
of the study conducted under subsection (a).

SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS.

    (a) 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:
            ``(30) Ownership requirements.--Ownership requirements to 
        determine the eligibility of a small business concern that 
        applies for assistance under any credit program under this Act 
        shall be determined without regard to any ownership interest of 
        a spouse arising solely from the application of the community 
        property laws of a State for purposes of determining marital 
        interests.''.
    (b) Small Business Investment Act of 1958.--Section 502 of the 
Small Business Investment Act of 1958 (15 U.S.C. 696) is amended by 
adding at the end the following:
            ``(6) Ownership requirements.--Ownership requirements to 
        determine the eligibility of a small business concern that 
        applies for assistance under any credit program under this 
        title shall be determined without regard to any ownership 
        interest of a spouse arising solely from the application of the 
        community property laws of a State for purposes of determining 
        marital interests.''.

SEC. 803. SUBCONTRACTING PREFERENCE FOR VETERANS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended--
            (1) in paragraph (1), by inserting ``small business 
        concerns owned and controlled by veterans,'' after ``small 
        business concerns,'' the first place that term appears in each 
        of the first and second sentences;
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by inserting ``small 
                business concerns owned and controlled by service-
                disabled veterans,'' after ``small business concerns 
                owned and controlled by veterans,'' in each of the 
                first and second sentences; and
                    (B) in subparagraph (F), by inserting ``small 
                business concern owned and controlled by service-
                disabled veterans,'' after ``small business concern 
                owned and controlled by veterans,''; and
            (3) in each of paragraphs (4)(D), (4)(E), (6)(A), (6)(C), 
        (6)(F), and (10)(B), by inserting ``small business concerns 
        owned and controlled by service-disabled veterans,'' after 
        ``small business concerns owned and controlled by veterans,''.

SEC. 804. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM FUNDING.

    (a) Authorization.--
            (1) In general.--Section 20(a)(1) of the Small Business Act 
        (15 U.S.C. 631 note) is amended by striking ``For fiscal year 
        1985'' and all that follows through ``expended.'' and inserting 
        the following: ``For fiscal year 2000 and each fiscal year 
        thereafter, there are authorized to be appropriated such sums 
        as may be necessary and appropriate, to remain available until 
        expended, and to be available solely--
            ``(A) to carry out the Small Business Development Center 
        Program under section 21, but not to exceed the annual funding 
        level, as specified in section 21(a);
            ``(B) to pay the expenses of the National Small Business 
        Development Center Advisory Board, as provided in section 
        21(i);
            ``(C) to pay the expenses of the information sharing 
        system, as provided in section 21(c)(8);
            ``(D) to pay the expenses of the association referred to in 
        section 21(a)(3)(A) for conducting the certification program, 
        as provided in section 21(k)(2); and
            ``(E) to pay the expenses of the Administration, including 
        salaries of examiners, for conducting examinations as part of 
        the certification program conducted by the association referred 
        to in section 21(a)(3)(A).''.
            (2) Technical amendment.--Section 20(a) of the Small 
        Business Act (15 U.S.C. 631 note) is amended by moving the 
        margins of paragraphs (3) and (4), including subparagraphs (A) 
        and (B) of paragraph (4), 2 ems to the left.
    (b) Funding Formula.--Section 21(a)(4)(C) of the Small Business Act 
(15 U.S.C. 648(a)(4)(C)) is amended to read as follows:
            ``(C) Funding formula.--
                    ``(i) In general.--Subject to clause (iii), the 
                amount of a formula grant received by a State under 
                this subparagraph shall be equal to an amount 
                determined in accordance with the following formula:
                            ``(I) The annual amount made available 
                        under section 20(a) for the Small Business 
                        Development Center Program, less any reductions 
                        made for expenses authorized by clause (v) of 
                        this subparagraph, shall be divided on a pro 
                        rata basis, based on the percentage of the 
                        population of each State, as compared to the 
                        population of the United States.
                            ``(II) If the pro rata amount calculated 
                        under subclause (I) for any State is less than 
                        the minimum funding level under clause (iii), 
                        the Administration shall determine the 
                        aggregate amount necessary to achieve that 
                        minimum funding level for each such State.
                            ``(III) The aggregate amount calculated 
                        under subclause (II) shall be deducted from the 
                        amount calculated under subclause (I) for 
                        States eligible to receive more than the 
                        minimum funding level. The deductions shall be 
                        made on a pro rata basis, based on the 
                        population of each such State, as compared to 
                        the total population of all such States.
                            ``(IV) The aggregate amount deducted under 
                        subclause (III) shall be added to the grants of 
                        those States that are not eligible to receive 
                        more than the minimum funding level in order to 
                        achieve the minimum funding level for each such 
                        State, except that the eligible amount of a 
                        grant to any State shall not be reduced to an 
                        amount below the minimum funding level.
                    ``(ii) Grant determination.--The amount of a grant 
                that a State is eligible to apply for under this 
                subparagraph shall be the amount determined under 
                clause (i), subject to any modifications required under 
                clause (iii), and shall be based on the amount 
                available for the fiscal year in which performance of 
                the grant commences, but not including amounts 
                distributed in accordance with clause (iv). The amount 
                of a grant received by a State under any provision of 
                this subparagraph shall not exceed the amount of 
                matching funds from sources other than the Federal 
                Government, as required under subparagraph (A).
                    ``(iii) Minimum funding level.--The amount of the 
                minimum funding level for each State shall be 
                determined for each fiscal year based on the amount 
                made available for that fiscal year to carry out this 
                section, as follows:
                            ``(I) If the amount made available is not 
                        less than $81,500,000 and not more than 
                        $90,000,000, the minimum funding level shall be 
                        $500,000.
                            ``(II) If the amount made available is less 
                        than $81,500,000, the minimum funding level 
                        shall be the remainder of $500,000 minus a 
                        percentage of $500,000 equal to the percentage 
                        amount by which the amount made available is 
                        less than $81,500,000.
                            ``(III) If the amount made available is 
                        more than $90,000,000, the minimum funding 
                        level shall be the sum of $500,000 plus a 
                        percentage of $500,000 equal to the percentage 
                        amount by which the amount made available 
                        exceeds $90,000,000.
                    ``(iv) Distributions.--Subject to clause (iii), if 
                any State does not apply for, or use, its full funding 
                eligibility for a fiscal year, the Administration shall 
                distribute the remaining funds as follows:
                            ``(I) If the grant to any State is less 
                        than the amount received by that State in 
                        fiscal year 2000, the Administration shall 
                        distribute such remaining funds, on a pro rata 
                        basis, based on the percentage of shortage of 
                        each such State, as compared to the total 
                        amount of such remaining funds available, to 
                        the extent necessary in order to increase the 
                        amount of the grant to the amount received by 
                        that State in fiscal year 2000, or until such 
                        funds are exhausted, whichever first occurs.
                            ``(II) If any funds remain after the 
                        application of subclause (I), the remaining 
                        amount may be distributed as supplemental 
                        grants to any State, as the Administration 
                        determines, in its discretion, to be 
                        appropriate, after consultation with the 
                        association referred to in subsection 
                        (a)(3)(A).
                    ``(v) Use of amounts.--
                            ``(I) In general.--Of the amounts made 
                        available in any fiscal year to carry out this 
                        section--
                                    ``(aa) not more than $500,000 may 
                                be used by the Administration to pay 
                                expenses enumerated in subparagraphs 
                                (B) through (D) of section 20(a)(1); 
                                and
                                    ``(bb) not more than $500,000 may 
                                be used by the Administration to pay 
                                the examination expenses enumerated in 
                                section 20(a)(1)(E).
                            ``(II) Limitation.--No funds described in 
                        subclause (I) may be used for examination 
                        expenses under section 20(a)(1)(E) if the usage 
                        would reduce the amount of grants made 
                        available under clause (i)(I) of this 
                        subparagraph to less than $85,000,000 (after 
                        excluding any amounts provided in 
                        appropriations Acts for specific institutions 
                        or for purposes other than the general small 
                        business development center program) or would 
                        further reduce the amount of such grants below 
                        such amount.
                    ``(vi) Exclusions.--Grants provided to a State by 
                the Administration or another Federal agency to carry 
                out subsection (a)(6) or (c)(3)(G), or for supplemental 
                grants set forth in clause (iv)(II) of this 
                subparagraph, shall not be included in the calculation 
                of maximum funding for a State under clause (ii) of 
                this subparagraph.
                    ``(vii) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                subparagraph $125,000,000 for each of fiscal years 
                2001, 2002, and 2003.
                    ``(viii) State defined.--In this subparagraph, the 
                term `State' means each of the several States, the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.''.

SEC. 805. SURETY BONDS.

    (a) Contract Amounts.--Section 411 of the Small Business Investment 
Act of 1958 (15 U.S.C. 694b) is amended--
            (1) in subsection (a)(1), by striking ``$1,250,000'' and 
        inserting ``$2,000,000''; and
            (2) in subsection (e)(2), by striking ``$1,250,000'' and 
        inserting ``$2,000,000''.
    (b) Extension of Certain Authority.--Section 207 of the Small 
Business Administration Reauthorization and Amendment Act of 1988 (15 
U.S.C. 694b note) is amended by striking ``2000'' and inserting 
``2003''.

SEC. 806. SIZE STANDARDS.

    (a) Industry Classifications.--Section 15(a) of the Small Business 
Act (15 U.S.C. 644(a)) is amended in the eighth sentence, by striking 
``four-digit standard'' and all that follows through ``published'' and 
inserting ``definition of a `United States industry' under the North 
American Industry Classification System, as established''.
    (b) Annual Receipts.--Section 3(a)(1) of the Small Business Act (15 
U.S.C. 632(a)(1)) is amended by striking ``$500,000'' and inserting 
``$750,000''.

SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SECTION 8(A).

    Section 8(a)(15)(A) of the Small Business Act (15 U.S.C. 
637(a)(15)(A)) is amended to read as follows:
            ``(A) is a nonprofit corporation that has filed articles of 
        incorporation with the director (or the designee thereof) of 
        the Hawaii Department of Commerce and Consumer Affairs, or any 
        successor agency,''.

SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION 
              CORRECTION.

    Section 33(k) of the Small Business Act (15 U.S.C. 657c(k)) is 
amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated to the Corporation to carry out 
        this section--
                    ``(A) $4,000,000 for fiscal year 2001;
                    ``(B) $4,000,000 for fiscal year 2002;
                    ``(C) $2,000,000 for fiscal year 2003; and
                    ``(D) $2,000,000 for fiscal year 2004.'';
            (2) in paragraph (2)(A), by striking ``2001'' each place it 
        appears and inserting ``2002''; and
            (3) in paragraph (2)(B), by striking ``2002 or 2003'' and 
        inserting ``2003 or 2004''.

SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE.

    Section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 
637(b)(1)(B)) is amended by adding at the end the following: 
``Notwithstanding any other provision of law, SCORE may solicit cash 
and in-kind contributions from the private sector to be used to carry 
out its functions under this Act, and may use payments made by the 
Administration pursuant to this subparagraph for such solicitation.''.

SEC. 810. CONTRACT DATA COLLECTION.

    (a) Definition of Bundled Contract.--Section 3(o)(1) of the Small 
Business Act (15 U.S.C. 632(o)(1)) is amended to read as follows:
            ``(1) Bundled contract.--The term `bundled contract' means 
        a contract, or a modification of an existing contract, that is 
        entered into to meet--
                    ``(A) requirements that are consolidated in a 
                bundling of contract requirements regardless of whether 
                the contracting agency has conducted a study of the 
                effects of the solicitation for the contract on 
                civilian or military personnel of the United States; or
                    ``(B) any procurement requirement that permits the 
                consolidation of 2 or more procurement requirements.''.
    (b) Analysis Required With Respect to Bundled Contracts.--Section 
15(e)(2)(A) of the Small Business Act (15 U.S.C. 644(e)(2)(A)) is 
amended--
            (1) by striking ``(A) In general.--'' and inserting the 
        following:
                    ``(A) Determination of necessity.--
                            ``(i) In general.--''; and
            (2) by adding at the end the following:
                            ``(ii) Identification of displaced prime 
                        contractors.--The market research required by 
                        clause (i) shall identify each small business 
                        concern that will be displaced as a prime 
                        contractor as a result of the award of a 
                        contract described in such clause, and the 
                        Administrator shall maintain such data for a 
                        period of not less than 10 years.
                            ``(iii) Bundled contracts subject to 
                        recompetition.--
                                    ``(I) In general.--Not less than 30 
                                days before issuing a solicitation to 
                                recompete a previously bundled contract 
                                as a contract that continues to contain 
                                the bundling of contract requirements 
                                of the original bundled contract, the 
                                head of the agency shall notify the 
                                Administrator and transmit a report to 
                                the Administrator containing the 
                                results of the market research required 
                                under clause (i).
                                    ``(II) Review and determination.--
                                The Administrator shall, not later than 
                                30 days after notification under 
                                subclause (I), review and determine--
                                            ``(aa) the amount of 
                                        savings and benefits (in 
                                        accordance with this 
                                        subsection) achieved under the 
                                        bundling of contract 
                                        requirements; and
                                            ``(bb) whether such savings 
                                        and benefits will continue to 
                                        be realized if the contract 
                                        remains bundled and whether 
                                        such benefits would be greater 
                                        if the procurement requirements 
                                        were divided into separate 
                                        solicitations suitable for 
                                        award to small business 
                                        concerns.
                                    ``(II) Appeal.--
                                            ``(aa) In general.--If, 
                                        after conducting a review under 
                                        subclause (II), the 
                                        Administrator reaches a 
                                        conclusion with respect to the 
                                        savings and benefits of the 
                                        recompeted bundle different 
                                        than that reached by the head 
                                        of the contracting agency as 
                                        part of the market analysis 
                                        required under clause (i) and 
                                        such head proceeds with a 
                                        solicitation for the contract, 
                                        the Administrator shall file an 
                                        appeal with the Administrator 
                                        of the Office of Federal 
                                        Procurement Policy.
                                            ``(bb) Notice.--If the 
                                        Administrator files an appeal 
                                        under item (aa), the 
                                        Administrator shall notify the 
                                        head of the contracting agency.
                                            ``(cc) Filing of reports.--
                                        Not less than 5 calendar days 
                                        after notice is given under 
                                        item (bb), the Administrator 
                                        shall submit a report 
                                        containing information on the 
                                        Administrator's conclusions and 
                                        determinations under subclause 
                                        (II), and the head of the 
                                        contracting agency shall submit 
                                        the report described in 
                                        subclause (I), to the 
                                        Administrator of the Office of 
                                        Federal Procurement Policy.
                                            ``(dd) Decision.--Not later 
                                        than 7 calendar days after the 
                                        submission of reports under 
                                        item (cc), the Administrator of 
                                        the Office of Federal 
                                        Procurement Policy shall 
                                        determine whether the subject 
                                        contract shall be recompeted as 
                                        bundled contract.''.
    (c) Annual Report on Contract Bundling.--Section 15 of the Small 
Business Act (15 U.S.C. 644) is amended by adding at the end the 
following:
    ``(p) Annual Report on Contract Bundling.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this subsection, and annually in March thereafter, 
        the Administration shall transmit a report on contract bundling 
        to the Committees on Small Business of the House of 
        Representatives and the Senate.
            ``(2) Contents.--Each report transmitted under paragraph 
        (1) shall include--
                    ``(A) data on the number, arranged by industrial 
                classification, of small business concerns displaced as 
                prime contractors as a result of the award of bundled 
                contracts by Federal agencies; and
                    ``(B) a description of the activities with respect 
                to previously bundled contracts of each Federal agency 
                during the preceding year, including--
                            ``(i) data on the number and total dollar 
                        amount of all contract requirements that were 
                        bundled; and
                            ``(ii) with respect to each bundled 
                        contract, data or information on--
                                    ``(I) the justification for the 
                                bundling of contract requirements;
                                    ``(II) the cost savings realized by 
                                bundling the contract requirements over 
                                the life of the contract;
                                    ``(III) the extent to which 
                                maintaining the bundled status of 
                                contract requirements is projected to 
                                result in continued cost savings;
                                    ``(IV) the extent to which the 
                                bundling of contract requirements 
                                complied with the contracting agency's 
                                small business subcontracting plan, 
                                including the total dollar value 
                                awarded to small business concerns as 
                                subcontractors and the total dollar 
                                value previously awarded to small 
                                business concerns as prime contractors; 
                                and
                                    ``(V) the impact of the bundling of 
                                contract requirements on small business 
                                concerns unable to compete as prime 
                                contractors for the consolidated 
                                requirements and on the industries of 
                                such small business concerns, including 
                                a description of any changes to the 
                                proportion of any such industry that is 
                                composed of small business concerns.''.
    (d) Reporting of Bundled Contract Opportunities.--Section 414(a) of 
the Small Business Reauthorization Act of 1997 (4 U.S.C. 405 note) is 
amended--
            (1) by striking ``$5,000,000'' and inserting ``$25,000''; 
        and
            (2) by striking ``bundling of contract requirements'' and 
        inserting ``bundled contract''.
    (e) Provision of Data.--Upon the request of the Administrator of 
the Small Business Administration, the head of any contracting agency 
shall promptly provide to the Administrator such information as the 
Administrator determines to be necessary to carry out this section or 
the amendments made by this section.

SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS CONCERNS.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
adding at the end the following:
    ``(m) Procurement Program for Women-owned Small Business 
Concerns.--
            ``(1) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Contracting officer.--The term `contracting 
                officer' has the meaning given such term in section 
                27(f)(5) of the Office of Federal Procurement Policy 
                Act (41 U.S.C. 423(f)(5)).
                    ``(B) Small business concern owned and controlled 
                by women.--The term `small business concern owned and 
                controlled by women' has the meaning given such term in 
                section 3(n), except that ownership shall be determined 
                without regard to any community property law.
            ``(2) Authority to restrict competition.--In accordance 
        with this subsection, a contracting officer may restrict 
        competition for any contract for the procurement of goods or 
        services by the Federal Government to small business concerns 
        owned and controlled by women, if--
                    ``(A) each of the concerns is not less than 51 
                percent owned by 1 or more women who are economically 
                disadvantaged (and such ownership is determined without 
                regard to any community property law);
                    ``(B) the contracting officer has a reasonable 
                expectation that 2 or more small business concerns 
                owned and controlled by women will submit offers for 
                the contract;
                    ``(C) the contract is for the procurement of goods 
                or services with respect to an industry identified by 
                the Administrator pursuant to paragraph (3);
                    ``(D) the anticipated award price of the contract 
                (including options) does not exceed--
                            ``(i) $5,000,000, in the case of a contract 
                        assigned an industrial classification code for 
                        manufacturing; or
                            ``(ii) $3,000,000, in the case of all other 
                        contracts;
                    ``(E) in the estimation of the contracting officer, 
                the contract award can be made at a fair and reasonable 
                price; and
                    ``(F) each of the concerns--
                            ``(i) is certified by a Federal agency, a 
                        State government, or a national certifying 
                        entity approved by the Administrator, as a 
                        small business concern owned and controlled by 
                        women; or
                            ``(ii) certifies to the contracting officer 
                        that it is a small business concern owned and 
                        controlled by women and provides adequate 
                        documentation, in accordance with standards 
                        established by the Administration, to support 
                        such certification.
            ``(3) Waiver.--With respect to a small business concern 
        owned and controlled by women, the Administrator may waive 
        subparagraph (2)(A) if the Administrator determines that the 
        concern is in an industry in which small business concerns 
        owned and controlled by women are substantially 
        underrepresented.
            ``(4) Identification of industries.--The Administrator 
        shall conduct a study to identify industries in which small 
        business concerns owned and controlled by women are 
        underrepresented with respect to Federal procurement 
        contracting.
            ``(5) Enforcement; penalties.--
                    ``(A) Verification of eligibility.--In carrying out 
                this subsection, the Administrator shall establish 
                procedures relating to--
                            ``(i) the filing, investigation, and 
                        disposition by the Administration of any 
                        challenge to the eligibility of a small 
                        business concern to receive assistance under 
                        this subsection (including a challenge, filed 
                        by an interested party, relating to the 
                        veracity of a certification made or information 
                        provided to the Administration by a small 
                        business concern under paragraph (2)(F)); and
                            ``(ii) verification by the Administrator of 
                        the accuracy of any certification made or 
                        information provided to the Administration by a 
                        small business concern under paragraph (2)(F).
                    ``(B) Examinations.--The procedures established 
                under subparagraph (A) may provide for program 
                examinations (including random program examinations) by 
                the Administrator of any small business concern making 
                a certification or providing information to the 
                Administrator under paragraph (2)(F).
                    ``(C) Penalties.--In addition to the penalties 
                described in section 16(d), any small business concern 
                that is determined by the Administrator to have 
                misrepresented the status of that concern as a small 
                business concern owned and controlled by women for 
                purposes of this subsection, shall be subject to--
                            ``(i) section 1001 of title 18, United 
                        States Code; and
                            ``(ii) sections 3729 through 3733 of title 
                        31, United States Code.
            ``(6) Provision of data.--Upon the request of the 
        Administrator, the head of any Federal department or agency 
        shall promptly provide to the Administrator such information as 
        the Administrator determines to be necessary to carry out this 
        subsection.''.

        TITLE IX--COMMUNITY RENEWAL AND NEW MARKETS INITIATIVES

SEC. 901. NEW MARKETS VENTURE CAPITAL PROGRAM.

    (a) Short Title.--This section may be cited as the ``New Markets 
Venture Capital Program Act of 2000''.
    (b) New Markets Venture Capital Program.--Title III of the Small 
Business Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended--
            (1) in the heading for the title, by striking ``SMALL 
        BUSINESS INVESTMENT COMPANIES'' and inserting ``INVESTMENT 
        DIVISION PROGRAMS'';
            (2) by inserting before the heading for section 301 the 
        following:

            ``Part A--Small Business Investment Companies'';

        and
            (3) by adding at the end the following:

             ``Part B--New Markets Venture Capital Program

``SEC. 351. DEFINITIONS.

    ``In this part, the following definitions apply:
            ``(1) Developmental venture capital.--The term 
        `developmental venture capital' means capital in the form of 
        equity capital investments in businesses made with a primary 
        objective of fostering economic development in low-income 
        geographic areas. For the purposes of this paragraph, the term 
        `equity capital' has the same meaning given such term in 
        section 303(g)(4).
            ``(2) Low-income individual.--The term `low-income 
        individual' means an individual whose income (adjusted for 
        family size) does not exceed--
                    ``(A) for metropolitan areas, 80 percent of the 
                area median income; and
                    ``(B) for nonmetropolitan areas, the greater of--
                            ``(i) 80 percent of the area median income; 
                        or
                            ``(ii) 80 percent of the statewide 
                        nonmetropolitan area median income.
            ``(3) Low-income geographic area.--The term `low-income 
        geographic area' means--
                    ``(A) any population census tract (or in the case 
                of an area that is not tracted for population census 
                tracts, the equivalent county division, as defined by 
                the Bureau of the Census of the Department of Commerce 
                for purposes of defining poverty areas), if--
                            ``(i) the poverty rate for that census 
                        tract is not less than 20 percent;
                            ``(ii) in the case of a tract--
                                    ``(I) that is located within a 
                                metropolitan area, 50 percent or more 
                                of the households in that census tract 
                                have an income equal to less than 60 
                                percent of the area median gross 
                                income; or
                                    ``(II) that is not located within a 
                                metropolitan area, the median household 
                                income for such tract does not exceed 
                                80 percent of the statewide median 
                                household income; or
                            ``(iii) as determined by the Administrator 
                        based on objective criteria, a substantial 
                        population of low-income individuals reside, an 
                        inadequate access to investment capital exists, 
                        or other indications of economic distress exist 
                        in that census tract; or
                    ``(B) any area located within--
                            ``(i) a HUBZone (as defined in section 3(p) 
                        of the Small Business Act and the implementing 
                        regulations issued under that section);
                            ``(ii) an urban empowerment zone or urban 
                        enterprise community (as designated by the 
                        Secretary of Housing and Urban Development); or
                            ``(iii) a rural empowerment zone or rural 
                        enterprise community (as designated by the 
                        Secretary of Agriculture).
            ``(4) New markets venture capital company.--The term `New 
        Markets Venture Capital company' means a company that--
                    ``(A) has been granted final approval by the 
                Administrator under section 354(e); and
                    ``(B) has entered into a participation agreement 
                with the Administrator.
            ``(5) Operational assistance.--The term `operational 
        assistance' means management, marketing, and other technical 
        assistance that assists a small business concern with business 
        development.
            ``(6) Participation agreement.--The term `participation 
        agreement' means an agreement, between the Administrator and a 
        company granted final approval under section 354(e), that--
                    ``(A) details the company's operating plan and 
                investment criteria; and
                    ``(B) requires the company to make investments in 
                smaller enterprises at least 80 percent of which are 
                located in low-income geographic areas.
            ``(7) Specialized small business investment company.--The 
        term `specialized small business investment company' means any 
        small business investment company that--
                    ``(A) invests solely in small business concerns 
                that contribute to a well-balanced national economy by 
                facilitating ownership in such concerns by persons 
                whose participation in the free enterprise system is 
                hampered because of social or economic disadvantages;
                    ``(B) is organized or chartered under State 
                business or nonprofit corporations statutes, or formed 
                as a limited partnership; and
                    ``(C) was licensed under section 301(d), as in 
                effect before September 30, 1996.
            ``(8) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and any other 
        commonwealth, territory, or possession of the United States;

``SEC. 352. PURPOSES.

    ``The purposes of the New Markets Venture Capital Program 
established under this part are--
            ``(1) to promote economic development and the creation of 
        wealth and job opportunities in low-income geographic areas and 
        among individuals living in such areas by encouraging 
        developmental venture capital investments in smaller 
        enterprises primarily located in such areas; and
            ``(2) to establish a developmental venture capital program, 
        with the mission of addressing the unmet equity investment 
        needs of small enterprises located in low-income geographic 
        areas, to be administered by the Administrator--
                    ``(A) to enter into participation agreements with 
                New Markets Venture Capital companies;
                    ``(B) to guarantee debentures of New Markets 
                Venture Capital companies to enable each such company 
                to make developmental venture capital investments in 
                smaller enterprises in low-income geographic areas; and
                    ``(C) to make grants to New Markets Venture Capital 
                companies, and to other entities, for the purpose of 
                providing operational assistance to smaller enterprises 
                financed, or expected to be financed, by such 
                companies.

``SEC. 353. ESTABLISHMENT.

    ``In accordance with this part, the Administrator shall establish a 
New Markets Venture Capital Program, under which the Administrator 
may--
            ``(1) enter into participation agreements with companies 
        granted final approval under section 354(e) for the purposes 
        set forth in section 352;
            ``(2) guarantee the debentures issued by New Markets 
        Venture Capital companies as provided in section 355; and
            ``(3) make grants to New Markets Venture Capital companies, 
        and to other entities, under section 358.

``SEC. 354. SELECTION OF NEW MARKETS VENTURE CAPITAL COMPANIES.

    ``(a) Eligibility.--A company shall be eligible to apply to 
participate, as a New Markets Venture Capital company, in the program 
established under this part if--
            ``(1) the company is a newly formed for-profit entity or a 
        newly formed for-profit subsidiary of an existing entity;
            ``(2) the company has a management team with experience in 
        community development financing or relevant venture capital 
        financing; and
            ``(3) the company has a primary objective of economic 
        development of low-income geographic areas.
    ``(b) Application.--To participate, as a New Markets Venture 
Capital company, in the program established under this part a company 
meeting the eligibility requirements set forth in subsection (a) shall 
submit an application to the Administrator that includes--
            ``(1) a business plan describing how the company intends to 
        make successful developmental venture capital investments in 
        identified low-income geographic areas;
            ``(2) information regarding the community development 
        finance or relevant venture capital qualifications and general 
        reputation of the company's management;
            ``(3) a description of how the company intends to work with 
        community organizations and to seek to address the unmet 
        capital needs of the communities served;
            ``(4) a proposal describing how the company intends to use 
        the grant funds provided under this part to provide operational 
        assistance to smaller enterprises financed by the company, 
        including information regarding whether the company intends to 
        use licensed professionals, when necessary, on the company's 
        staff or from an outside entity;
            ``(5) with respect to binding commitments to be made to the 
        company under this part, an estimate of the ratio of cash to 
        in-kind contributions;
            ``(6) a description of the criteria to be used to evaluate 
        whether and to what extent the company meets the objectives of 
        the program established under this part;
            ``(7) information regarding the management and financial 
        strength of any parent firm, affiliated firm, or any other firm 
        essential to the success of the company's business plan; and
            ``(8) such other information as the Administrator may 
        require.
    ``(c) Conditional Approval.--
            ``(1) In general.--From among companies submitting 
        applications under subsection (b), the Administrator shall, in 
        accordance with this subsection, conditionally approve 
        companies to participate in the New Markets Venture Capital 
        Program.
            ``(2) Selection criteria.--In selecting companies under 
        paragraph (1), the Administrator shall consider the following:
                    ``(A) The likelihood that the company will meet the 
                goals of its business plan.
                    ``(B) The experience and background of the 
                company's management team.
                    ``(C) The need for developmental venture capital 
                investments in the geographic areas in which the 
                company intends to invest.
                    ``(D) The extent to which the company will 
                concentrate its activities on serving the geographic 
                areas in which it intends to invest.
                    ``(E) The likelihood that the company will be able 
                to satisfy the conditions under subsection (d).
                    ``(F) The extent to which the activities proposed 
                by the company will expand economic opportunities in 
                the geographic areas in which the company intends to 
                invest.
                    ``(G) The strength of the company's proposal to 
                provide operational assistance under this part as the 
                proposal relates to the ability of the applicant to 
                meet applicable cash requirements and properly utilize 
                in-kind contributions, including the use of resources 
                for the services of licensed professionals, when 
                necessary, whether provided by persons on the company's 
                staff or by persons outside of the company.
                    ``(H) Any other factors deemed appropriate by the 
                Administrator.
            ``(3) Nationwide distribution.--The Administrator shall 
        select companies under paragraph (1) in such a way that 
        promotes investment nationwide.
    ``(d) Requirements To Be Met for Final Approval.--The Administrator 
shall grant each conditionally approved company a period of time, not 
to exceed 2 years, to satisfy the following requirements:
            ``(1) Capital requirement.--Each conditionally approved 
        company shall raise not less than $5,000,000 of private capital 
        or binding capital commitments from one or more investors 
        (other than agencies or departments of the Federal Government) 
        who meet criteria established by the Administrator.
            ``(2) Nonadministration resources for operational 
        assistance.--
                    ``(A) In general.--In order to provide operational 
                assistance to smaller enterprises expected to be 
                financed by the company, each conditionally approved 
                company--
                            ``(i) shall have binding commitments (for 
                        contribution in cash or in kind)--
                                    ``(I) from any sources other than 
                                the Small Business Administration that 
                                meet criteria established by the 
                                Administrator;
                                    ``(II) payable or available over a 
                                multiyear period acceptable to the 
                                Administrator (not to exceed 10 years); 
                                and
                                    ``(III) in an amount not less than 
                                30 percent of the total amount of 
                                capital and commitments raised under 
                                paragraph (1);
                            ``(ii) shall have purchased an annuity--
                                    ``(I) from an insurance company 
                                acceptable to the Administrator;
                                    ``(II) using funds (other than the 
                                funds raised under paragraph (1)) from 
                                any source other than the 
                                Administrator; and
                                    ``(III) that yields cash payments 
                                over a multiyear period acceptable to 
                                the Administrator (not to exceed 10 
                                years) in an amount not less than 30 
                                percent of the total amount of capital 
                                and commitments raised under paragraph 
                                (1); or
                            ``(iii) shall have binding commitments (for 
                        contributions in cash or in kind) of the type 
                        described in clause (i) and shall have 
                        purchased an annuity of the type described in 
                        clause (ii), which in the aggregate make 
                        available, over a multiyear period acceptable 
                        to the Administrator (not to exceed 10 years), 
                        an amount not less than 30 percent of the total 
                        amount of capital and commitments raised under 
                        paragraph (1).
                    ``(B) Exception.--The Administrator may, in the 
                discretion of the Administrator and based upon a 
                showing of special circumstances and good cause, 
                consider an applicant to have satisfied the 
                requirements of subparagraph (A) if the applicant has--
                            ``(i) a viable plan that reasonably 
                        projects the capacity of the applicant to raise 
                        the amount (in cash or in-kind) required under 
                        subparagraph (A); and
                            ``(ii) binding commitments in an amount 
                        equal to not less than 20 percent of the total 
                        amount required under paragraph (A).
                    ``(C) Limitation.--In order to comply with the 
                requirements of subparagraphs (A) and (B), the total 
                amount of a company's in-kind contributions may not 
                exceed 50 percent of the company's total contributions.
    ``(e) Final Approval; Designation.--The Administrator shall, with 
respect to each applicant conditionally approved to operate as a New 
Markets Venture Capital company under subsection (c), either--
            ``(1) grant final approval to the applicant to operate as a 
        New Markets Venture Capital company under this part and 
        designate the applicant as such a company, if the applicant--
                    ``(A) satisfies the requirements of subsection (d) 
                on or before the expiration of the time period 
                described in that subsection; and
                    ``(B) enters into a participation agreement with 
                the Administrator; or
            ``(2) if the applicant fails to satisfy the requirements of 
        subsection (d) on or before the expiration of the time period 
        described in that subsection, revoke the conditional approval 
        granted under that subsection.

``SEC. 355. DEBENTURES.

    ``(a) In General.--The Administrator may guarantee the timely 
payment of principal and interest, as scheduled, on debentures issued 
by any New Markets Venture Capital company.
    ``(b) Terms and Conditions.--The Administrator may make guarantees 
under this section on such terms and conditions as it deems 
appropriate, except that the term of any debenture guaranteed under 
this section shall not exceed 15 years.
    ``(c) Full Faith and Credit of the United States.--The full faith 
and credit of the United States is pledged to pay all amounts that may 
be required to be paid under any guarantee under this part.
    ``(d) Maximum Guarantee.--
            ``(1) In general.--Under this section, the Administrator 
        may guarantee the debentures issued by a New Markets Venture 
        Capital company only to the extent that the total face amount 
        of outstanding guaranteed debentures of such company does not 
        exceed 150 percent of the private capital of the company, as 
        determined by the Administrator.
            ``(2) Treatment of certain federal funds.--For the purposes 
        of paragraph (1), private capital shall include capital that is 
        considered to be Federal funds, if such capital is contributed 
        by an investor other than an agency or department of the 
        Federal Government.

``SEC. 356. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

    ``(a) Issuance.--The Administrator may issue trust certificates 
representing ownership of all or a fractional part of debentures issued 
by a New Markets Venture Capital company and guaranteed by the 
Administrator under this part, if such certificates are based on and 
backed by a trust or pool approved by the Administrator and composed 
solely of guaranteed debentures.
    ``(b) Guarantee.--
            ``(1) In general.--The Administrator may, under such terms 
        and conditions as it deems appropriate, guarantee the timely 
        payment of the principal of and interest on trust certificates 
        issued by the Administrator or its agents for purposes of this 
        section.
            ``(2) Limitation.--Each guarantee under this subsection 
        shall be limited to the extent of principal and interest on the 
        guaranteed debentures that compose the trust or pool.
            ``(3) Prepayment or default.--In the event that a debenture 
        in a trust or pool is prepaid, or in the event of default of 
        such a debenture, the guarantee of timely payment of principal 
        and interest on the trust certificates shall be reduced in 
        proportion to the amount of principal and interest such prepaid 
        debenture represents in the trust or pool. Interest on prepaid 
        or defaulted debentures shall accrue and be guaranteed by the 
        Administrator only through the date of payment of the 
        guarantee. At any time during its term, a trust certificate may 
        be called for redemption due to prepayment or default of all 
        debentures.
    ``(c) Full Faith and Credit of the United States.--The full faith 
and credit of the United States is pledged to pay all amounts that may 
be required to be paid under any guarantee of a trust certificate 
issued by the Administrator or its agents under this section.
    ``(d) Fees.--The Administrator shall not collect a fee for any 
guarantee of a trust certificate under this section, but any agent of 
the Administrator may collect a fee approved by the Administrator for 
the functions described in subsection (f)(2).
    ``(e) Subrogation and Ownership Rights.--
            ``(1) Subrogation.--In the event the Administrator pays a 
        claim under a guarantee issued under this section, it shall be 
        subrogated fully to the rights satisfied by such payment.
            ``(2) Ownership rights.--No Federal, State, or local law 
        shall preclude or limit the exercise by the Administrator of 
        its ownership rights in the debentures residing in a trust or 
        pool against which trust certificates are issued under this 
        section.
    ``(f) Management and Administration.--
            ``(1) Registration.--The Administrator may provide for a 
        central registration of all trust certificates issued under 
        this section.
            ``(2) Contracting of functions.--
                    ``(A) In general.--The Administrator may contract 
                with an agent or agents to carry out on behalf of the 
                Administrator the pooling and the central registration 
                functions provided for in this section including, 
                notwithstanding any other provision of law--
                            ``(i) maintenance, on behalf of and under 
                        the direction of the Administrator, of such 
                        commercial bank accounts or investments in 
                        obligations of the United States as may be 
                        necessary to facilitate the creation of trusts 
                        or pools backed by debentures guaranteed under 
                        this part; and
                            ``(ii) the issuance of trust certificates 
                        to facilitate the creation of such trusts or 
                        pools.
                    ``(B) Fidelity bond or insurance requirement.--Any 
                agent performing functions on behalf of the 
                Administrator under this paragraph shall provide a 
                fidelity bond or insurance in such amounts as the 
                Administrator determines to be necessary to fully 
                protect the interests of the United States.
            ``(3) Regulation of brokers and dealers.--The Administrator 
        may regulate brokers and dealers in trust certificates issued 
        under this section.
            ``(4) Electronic registration.--Nothing in this subsection 
        may be construed to prohibit the use of a book-entry or other 
        electronic form of registration for trust certificates issued 
        under this section.

``SEC. 357. FEES.

    ``Except as provided in section 356(d), the Administrator may 
charge such fees as it deems appropriate with respect to any guarantee 
or grant issued under this part.

``SEC. 358. OPERATIONAL ASSISTANCE GRANTS.

    ``(a) In General.--
            ``(1) Authority.--In accordance with this section, the 
        Administrator may make grants to New Markets Venture Capital 
        companies and to other entities, as authorized by this part, to 
        provide operational assistance to smaller enterprises financed, 
        or expected to be financed, by such companies or other 
        entities.
            ``(2) Terms.--Grants made under this subsection shall be 
        made over a multiyear period not to exceed 10 years, under such 
        other terms as the Administrator may require.
            ``(3) Grants to specialized small business investment 
        companies.--
                    ``(A) Authority.--In accordance with this section, 
                the Administrator may make grants to specialized small 
                business investment companies to provide operational 
                assistance to smaller enterprises financed, or expected 
                to be financed, by such companies after the effective 
                date of the New Markets Venture Capital Program Act of 
                2000.
                    ``(B) Use of funds.--The proceeds of a grant made 
                under this paragraph may be used by the company 
                receiving such grant only to provide operational 
                assistance in connection with an equity investment 
                (made with capital raised after the effective date of 
                the New Markets Venture Capital Program Act of 2000) in 
                a business located in a low-income geographic area.
                    ``(C) Submission of plans.--A specialized small 
                business investment company shall be eligible for a 
                grant under this section only if the company submits to 
                the Administrator, in such form and manner as the 
                Administrator may require, a plan for use of the grant.
            ``(4) Grant amount.--
                    ``(A) New markets venture capital companies.--The 
                amount of a grant made under this subsection to a New 
                Markets Venture Capital company shall be equal to the 
                resources (in cash or in kind) raised by the company 
                under with section 354(d)(2).
                    ``(B) Other entities.--The amount of a grant made 
                under this subsection to any entity other than a New 
                Markets Venture capital company shall be equal to the 
                resources (in cash or in kind) raised by the entity in 
                accordance with the requirements applicable to New 
                Markets Venture Capital companies set forth in section 
                354(d)(2).
            ``(5) Pro rata reductions.--If the amount made available to 
        carry out this section is insufficient for the Administrator to 
        provide grants in the amounts provided for in paragraph (4), 
        the Administrator shall make pro rata reductions in the amounts 
        otherwise payable to each company and entity under such 
        paragraph.
    ``(b) Supplemental Grants.--
            ``(1) In general.--The Administrator may make supplemental 
        grants to New Markets Venture Capital companies and to other 
        entities, as authorized by this part, under such terms as the 
        Administrator may require, to provide additional operational 
        assistance to smaller enterprises financed, or expected to be 
        financed, by the companies.
            ``(2) Matching requirement.--The Administrator may require, 
        as a condition of any supplemental grant made under this 
        subsection, that the company or entity receiving the grant 
        provide from resources (in cash or in kind), other than those 
        provided by the Administrator, a matching contribution equal to 
        the amount of the supplemental grant.
    ``(c) Limitation.--None of the assistance made available under this 
section may be used for any overhead or general and administrative 
expense of a New Markets Venture Capital company or a specialized small 
business investment company.

``SEC. 359. BANK PARTICIPATION.

    ``(a) In General.--Except as provided in subsection (b), any 
national bank, any member bank of the Federal Reserve System, and (to 
the extent permitted under applicable State law) any insured bank that 
is not a member of such system, may invest in any New Markets Venture 
Capital company, or in any entity established to invest solely in New 
Markets Venture Capital companies.
    ``(b) Limitation.--No bank described in subsection (a) may make 
investments described in such subsection that are greater than 5 
percent of the capital and surplus of the bank.

``SEC. 360. FEDERAL FINANCING BANK.

    ``Section 318 shall not apply to any debenture issued by a New 
Markets Venture Capital company under this part.

``SEC. 361. REPORTING REQUIREMENTS.

    ``Each New Markets Venture Capital company that participates in the 
program established under this part shall provide to the Administrator 
such information as the Administrator may require, including--
            ``(1) information related to the measurement criteria that 
        the company proposed in its program application; and
            ``(2) in each case in which the company under this part 
        makes an investment in, or a loan or grant to, a business that 
        is not located in a low-income geographic area, a report on the 
        number and percentage of employees of the business who reside 
        in such areas.

``SEC. 362. EXAMINATIONS.

    ``(a) In General.--Each New Markets Venture Capital company that 
participates in the program established under this part shall be 
subject to examinations made at the direction of the Investment 
Division of the Small Business Administration in accordance with this 
section.
    ``(b) Assistance of Private Sector Entities.--Examinations under 
this section may be conducted with the assistance of a private sector 
entity that has both the qualifications and the expertise necessary to 
conduct such examinations.
    ``(c) Costs.--
            ``(1) Assessment.--
                    ``(A) In general.--The Administrator may assess the 
                cost of examinations under this section, including 
                compensation of the examiners, against the company 
                examined.
                    ``(B) Payment.--Any company against which the 
                Administrator assesses costs under this paragraph shall 
                pay such costs.
            ``(2) Deposit of funds.--Funds collected under this section 
        shall be deposited in the account for salaries and expenses of 
        the Small Business Administration.

``SEC. 363. INJUNCTIONS AND OTHER ORDERS.

    ``(a) In General.--Whenever, in the judgment of the Administrator, 
a New Markets Venture Capital company or any other person has engaged 
or is about to engage in any acts or practices which constitute or will 
constitute a violation of any provision of this Act, or of any rule or 
regulation under this Act, or of any order issued under this Act, the 
Administrator may make application to the proper district court of the 
United States or a United States court of any place subject to the 
jurisdiction of the United States for an order enjoining such acts or 
practices, or for an order enforcing compliance with such provision, 
rule, regulation, or order, and such courts shall have jurisdiction of 
such actions and, upon a showing by the Administrator that such New 
Markets Venture Capital company or other person has engaged or is about 
to engage in any such acts or practices, a permanent or temporary 
injunction, restraining order, or other order, shall be granted without 
bond.
    ``(b) Jurisdiction.--In any proceeding under subsection (a), the 
court as a court of equity may, to such extent as it deems necessary, 
take exclusive jurisdiction of the New Market Venture Capital company 
and the assets thereof, wherever located, and the court shall have 
jurisdiction in any such proceeding to appoint a trustee or receiver to 
hold or administer under the direction of the court the assets so 
possessed.
    ``(c) Administrator as Trustee or Receiver.--
            ``(1) Authority.--The Administrator may act as trustee or 
        receiver of a New Markets Venture Capital company.
            ``(2) Appointment.--Upon request of the Administrator, the 
        court may appoint the Administrator to act as a trustee or 
        receiver of a New Markets Venture Capital company unless the 
        court deems such appointment inequitable or otherwise 
        inappropriate by reason of the special circumstances involved.

``SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.

    ``(a) In General.--With respect to any New Markets Venture Capital 
company that violates or fails to comply with any of the provisions of 
this Act, of any regulation issued under this Act, or of any 
participation agreement entered into under this Act, the Administrator 
may in accordance with this section--
            ``(1) void the participation agreement between the 
        Administrator and the company; and
            ``(2) cause the company to forfeit all of the rights and 
        privileges derived by the company from this Act.
    ``(b) Adjudication of Noncompliance.--
            ``(1) In general.--Before the Administrator may cause a New 
        Markets Venture Capital company to forfeit rights or privileges 
        under subsection (a), a court of the United States of competent 
        jurisdiction must find that the company committed a violation, 
        or failed to comply, in a cause of action brought for that 
        purpose in the district, territory, or other place subject to 
        the jurisdiction of the United States, in which the principal 
        office of the company is located.
            ``(2) Parties authorized to file causes of action.--Each 
        cause of action brought by the United States under this 
        subsection shall be brought by the Administrator or by the 
        Attorney General.

``SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY DUTY.

    ``(a) Parties Deemed To Commit a Violation.--Whenever any New 
Markets Venture Capital company violates any provision of this Act, of 
a regulation issued under this Act, or of a participation agreement 
entered into under this Act, by reason of its failure to comply with 
its terms or by reason of its engaging in any act or practice that 
constitutes or will constitute a violation thereof, such violation 
shall also be deemed to be a violation and an unlawful act committed by 
any person who, directly or indirectly, authorizes, orders, 
participates in, causes, brings about, counsels, aids, or abets in the 
commission of any acts, practices, or transactions that constitute or 
will constitute, in whole or in part, such violation.
    ``(b) Fiduciary Duties.--It shall be unlawful for any officer, 
director, employee, agent, or other participant in the management or 
conduct of the affairs of a New Markets Venture Capital company to 
engage in any act or practice, or to omit any act or practice, in 
breach of the person's fiduciary duty as such officer, director, 
employee, agent, or participant if, as a result thereof, the company 
suffers or is in imminent danger of suffering financial loss or other 
damage.
    ``(c) Unlawful Acts.--Except with the written consent of the 
Administrator, it shall be unlawful--
            ``(1) for any person to take office as an officer, 
        director, or employee of any New Markets Venture Capital 
        company, or to become an agent or participant in the conduct of 
        the affairs or management of such a company, if the person--
                    ``(A) has been convicted of a felony, or any other 
                criminal offense involving dishonesty or breach of 
                trust, or
                    ``(B) has been found civilly liable in damages, or 
                has been permanently or temporarily enjoined by an 
                order, judgment, or decree of a court of competent 
                jurisdiction, by reason of any act or practice 
                involving fraud, or breach of trust; and
            ``(2) for any person continue to serve in any of the 
        capacities described in paragraph (1), if--
                    ``(A) the person is convicted of a felony, or any 
                other criminal offense involving dishonesty or breach 
                of trust, or
                    ``(B) the person is found civilly liable in 
                damages, or is permanently or temporarily enjoined by 
                an order, judgment, or decree of a court of competent 
                jurisdiction, by reason of any act or practice 
                involving fraud or breach of trust.

``SEC. 366. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

    ``Using the procedures for removing or suspending a director or an 
officer of a licensee set forth in section 313 (to the extent such 
procedures are not inconsistent with the requirements of this part), 
the Administrator may remove or suspend any director or officer of any 
New Markets Venture Capital company.

``SEC. 367. REGULATIONS.

    ``The Administrator may issue such regulations as it deems 
necessary to carry out the provisions of this part in accordance with 
its purposes.

``SEC. 368. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated for 
fiscal years 2001 through 2006, to remain available until expended, the 
following sums:
            ``(1) Such subsidy budget authority as may be necessary to 
        guarantee $150,000,000 of debentures under this part.
            ``(2) $30,000,000 to make grants under this part.
    ``(b) Funds Collected for Examinations.--Funds deposited under 
section 362(c)(2) are authorized to be appropriated only for the costs 
of examinations under section 362 and for the costs of other oversight 
activities with respect to the program established under this part.''.
    (c) Conforming Amendment.--Section 20(e)(1)(C) of the Small 
Business Act (15 U.S.C 631 note) is amended by inserting ``part A of'' 
before ``title III''.
    (d) Calculation of Maximum Amount of SBIC Leverage.--
            (1) Maximum leverage.--Section 303(b)(2) of the Small 
        Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is 
        amended to read as follows:
            ``(2) Maximum leverage.--
                    ``(A) In general.--After March 31, 1993, the 
                maximum amount of outstanding leverage made available 
                to a company licensed under section 301(c) of this Act 
                shall be determined by the amount of such company's 
                private capital--
                            ``(i) if the company has private capital of 
                        not more than $15,000,000, the total amount of 
                        leverage shall not exceed 300 percent of 
                        private capital;
                            ``(ii) if the company has private capital 
                        of more than $15,000,000 but not more than 
                        $30,000,000, the total amount of leverage shall 
                        not exceed $45,000,000 plus 200 percent of the 
                        amount of private capital over $15,000,000; and
                            ``(iii) if the company has private capital 
                        of more than $30,000,000, the total amount of 
                        leverage shall not exceed $75,000,000 plus 100 
                        percent of the amount of private capital over 
                        $30,000,000 but not to exceed an additional 
                        $15,000,000.
                    ``(B) Adjustments.--
                            ``(i) In general.--The dollar amounts in 
                        clauses (i), (ii), and (iii) of subparagraph 
                        (A) shall be adjusted annually to reflect 
                        increases in the Consumer Price Index 
                        established by the Bureau of Labor Statistics 
                        of the Department of Labor.
                            (ii) Initial adjustments.--The initial 
                        adjustments made under this subparagraph after 
                        the date of the enactment of the Small Business 
                        Reauthorization Act of 1997 shall reflect only 
                        increases from March 31, 1993.
                    ``(C) Investments in low-income geographic areas.--
                In calculating the outstanding leverage of a company 
                for the purposes of subparagraph (A), the Administrator 
                shall not include the amount of the cost basis of any 
                equity investment made by the company in a smaller 
                enterprise located in a low-income geographic area (as 
                defined in section 351), to the extent that the total 
                of such amounts does not exceed 50 percent of the 
                company's private capital.''.
            (2) Maximum aggregate leverage.--Section 303(b)(4) of the 
        Small Business Investment Act of 1958 (15 U.S.C. 683(b)(4)) is 
        amended by adding at the end the following new subparagraph:
                    ``(D) Investments in low-income geographic areas.--
                In calculating the aggregate outstanding leverage of a 
                company for the purposes of subparagraph (A), the 
                Administrator shall not include the amount of the cost 
                basis of any equity investment made by the company in a 
                smaller enterprise located in a low-income geographic 
                area (as defined in section 351), to the extent that 
                the total of such amounts does not exceed 50 percent of 
                the company's private capital.''.
    (e) Bankruptcy Exemption for New Markets Venture Capital 
Companies.--Section 109(b)(2) of title 11, United States Code, is 
amended by inserting ``a New Markets Venture Capital company as defined 
in section 351 of the Small Business Investment Act of 1958,'' after 
``homestead association,''.
    (f) Federal Savings Associations.--Section 5(c)(4) of the Home 
Owners' Loan Act (12 U.S.C. 1464(c)(4)) is amended by adding at the end 
the following:
                    ``(F) New markets venture capital companies.--A 
                Federal savings association may invest in stock, 
                obligations, or other securities of any New Markets 
                Venture Capital company as defined in section 351 of 
                the Small Business investment Act of 1958, except that 
                a Federal savings association may not make any 
                investment under this subparagraph if its aggregate 
                outstanding investment under this subparagraph would 
                exceed 5 percent of the capital and surplus of such 
                savings association.''.

SEC. 902. BUSINESSLINC GRANTS AND COOPERATIVE AGREEMENTS.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
adding at the end the following:
    ``(n) BusinessLINC Grants and Cooperative Agreements.--
            ``(1) In general.--In accordance with this subsection, the 
        Administrator may make grants to and enter into cooperative 
        agreements with any coalition of private entities, public 
        entities, or any combination of private and public entities--
                    ``(A) to expand business-to-business relationships 
                between large and small businesses; and
                    ``(B) to provide businesses, directly or 
                indirectly, with online information and a database of 
                companies that are interested in mentor-protege 
                programs or community-based, statewide, or local 
                business development programs.
            ``(2) Matching requirement.--Subject to subparagraph (B), 
        the Administrator may make a grant to a coalition under 
        paragraph (1) only if the coalition provides for activities 
        described in paragraph (1)(A) or (1)(B) an amount, either in 
        kind or in cash, equal to the grant amount.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $6,600,000, to 
        remain available until expended, for each of fiscal years 2001 
        through 2006.''.
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