[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1493 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1493

 To forgive interest payments for a 2-year period on certain disaster 
  loans to small business concerns in the aftermath of the terrorist 
attacks perpetrated against the United States on September 11, 2001, to 
amend the Internal Revenue Code of 1986 to provide tax relief for small 
               business concerns, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 3, 2001

   Mr. Bond introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To forgive interest payments for a 2-year period on certain disaster 
  loans to small business concerns in the aftermath of the terrorist 
attacks perpetrated against the United States on September 11, 2001, to 
amend the Internal Revenue Code of 1986 to provide tax relief for small 
               business concerns, 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 
Leads to Economic Recovery Act of 2001''.
    (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 EMERGENCY LOAN ASSISTANCE

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Deferment of disaster loan payments.
Sec. 104. Refinancing existing disaster loans.
Sec. 105. Emergency relief loan program.
Sec. 106. Economic recovery loan and financing programs.
     TITLE II--SMALL BUSINESS TAX PROVISIONS FOR ECONOMIC STIMULUS

Sec. 201. Amendment of 1986 Code.
Sec. 202. Increase in expense treatment of certain depreciable business 
                            assets for small businesses.
Sec. 203. Expensing of computer software.
Sec. 204. Modification of depreciation rules for computers and 
                            software.
Sec. 205. Adjustments to depreciation limits for business vehicles.
Sec. 206. Increased deduction for business meal expenses.
Sec. 207. Modification of unrelated business income limitation on 
                            investment in certain debt-financed 
                            properties.
Sec. 208. Repeal of alternative minimum tax on individuals.
Sec. 209. Exemption from alternative minimum tax for small 
                            corporations.
                 TITLE III--SMALL BUSINESS PROCUREMENTS

Sec. 301. Expansion of opportunity for small businesses to be awarded 
                            department of defense contracts for 
                            architectural and engineering services and 
                            construction design.
Sec. 302. Procurements of property and services in amounts not in 
                            excess of $100,000 from small businesses.
Sec. 303. Sole source procurements of property and services under the 
                            2001 Emergency Supplemental Appropriations 
                            Act for Recovery From and Response To 
                            Terrorist Attacks on the United States.

           TITLE I--SMALL BUSINESS EMERGENCY LOAN ASSISTANCE

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Small Business Emergency Loan 
Assistance Act of 2001''.

SEC. 102. DEFINITIONS.

    In this title--
            (1) the term ``Administration'' means the Small Business 
        Administration;
            (2) the term ``covered loan'' means a loan made by the 
        Administration to a small business concern--
                    (A) under section 7(b) of the Small Business Act 
                (15 U.S.C. 636(b)); and
                    (B) located in an area which the President has 
                designated as a disaster area as a result of the 
                terrorist attacks perpetrated against the United States 
                on September 11, 2001; and
            (3) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act (15 U.S.C. 
        632).

SEC. 103. DEFERMENT OF DISASTER LOAN PAYMENTS.

    (a) In General.--Notwithstanding any other provision of law, 
payments of principal or interest on a covered loan shall be deferred, 
and no interest shall accrue with respect to a covered loan, during the 
2-year period following the date of issuance of the covered loan.
    (b) Resumption of Payments.--At the end of the 2-year period 
described in subsection (a), the payment of periodic installments of 
principal and interest shall be required with respect to a covered 
loan, in the same manner and subject to the same terms and conditions 
as would otherwise be applicable to a loan made under section 7(b) of 
the Small Business Act (15 U.S.C. 636(b)).

SEC. 104. REFINANCING EXISTING DISASTER LOANS.

    (a) In General.--Any loan made under section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)) that was outstanding as to principal or 
interest on September 11, 2001, may be refinanced by a small business 
concern that is also eligible to receive a covered loan under this Act, 
and the refinanced amount shall be considered to be part of the covered 
loan for purposes of this title.
    (b) No Affect on Eligibility.--A refinancing under subsection (a) 
by a small business concern shall be in addition to any covered loan 
eligibility for that small business concern under this title.

SEC. 105. EMERGENCY RELIEF LOAN PROGRAM.

    (a) Business Loan Authority.--Section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) is amended by adding at the end the following:
            ``(31) Temporary loan authority following terrorist 
        attacks.--
                    ``(A) In general.--During the 1-year period 
                beginning on the date of enactment of this paragraph, 
                the Administration may make loans under this subsection 
                to a small business concern that has suffered, or that 
                is likely to suffer, significant economic injury as a 
                result of the terrorist attacks perpetrated against the 
                United States on September 11, 2001.
                    ``(B) Loan terms.--With respect to a loan under 
                this paragraph--
                            ``(i) for purposes of paragraph (2)(A), 
                        participation by the Administration shall be 
                        equal to 95 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan;
                            ``(ii) no fee may be required or charged 
                        under paragraph (18);
                            ``(iii) the applicable rate of interest 
                        shall not exceed a rate that is one percentage 
                        point above the prime rate as published in a 
                        national financial newspaper published each 
                        business day;
                            ``(iv) no such loan shall be made if the 
                        total amount outstanding and committed (by 
                        participation or otherwise) to the borrower 
                        under this paragraph would exceed $1,000,000;
                            ``(v) upon request of the borrower, 
                        repayment of principal due on a loan made under 
                        this paragraph shall be deferred during the 1-
                        year period beginning on the date of issuance 
                        of the loan; and
                            ``(vi) the repayment period shall not 
                        exceed 7 years, including any period of 
                        deferment under clause (v).
                    ``(C) Applicability.--The loan terms described in 
                subparagraph (B) shall apply to a loan under this 
                paragraph notwithstanding any other provision of this 
                subsection, and except as specifically provided in this 
                paragraph, a loan under this paragraph shall otherwise 
                be subject to the same terms and conditions as any 
                other loan under this subsection.
                    ``(D) Significant economic injury.--In this 
                paragraph, the term `substantial economic injury' means 
                an economic harm to a small business concern that 
                results in the inability of the small business 
                concern--
                            ``(i) to meet its obligations as they 
                        mature;
                            ``(ii) to pay its ordinary and necessary 
                        operating expenses; or
                            ``(iii) to market, produce, or provide a 
                        product or service ordinarily marketed, 
                        produced, or provided by the business 
                        concern.''.

SEC. 106. ECONOMIC RECOVERY LOAN AND FINANCING PROGRAMS.

    (a) One-Year Suspension of Section 7(a) Fees.--Section 7(a)(18) of 
the Small Business Act (15 U.S.C. 636(a)(18)) is amended by adding at 
the end the following:
                    ``(C) One-year waiver of fees following terrorist 
                attacks.--No fee may be collected or charged, and no 
                fee shall accrue under this paragraph during the 1-year 
                period beginning on the date of enactment of the Small 
                Business Terrorism Relief and Economic Stimulus Act of 
                2001.''.
    (b) One-Year Increase in Participation Levels.--Section 7(a)(2) of 
the Small Business Act (15 U.S.C. 636(a)(2)) is amended--
            (1) in subparagraph (A), by striking ``subparagraph (B)'' 
        and inserting ``subparagraphs (B) and (E)''; and
            (2) by adding at the end the following:
                    ``(E) Temporary participation levels following 
                terrorist attacks.--During the 1-year period beginning 
                on the date of enactment of the Small Business 
                Terrorism Relief and Economic Stimulus Act of 2001, 
                clauses (i) and (ii) of subparagraph (A) shall be 
                construed to read as follows:
                            ```(i) 85 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such balance 
                        exceeds $150,000; or
                            ```(ii) 90 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such balance is 
                        less than or equal to $150,000.'.''.
    (c) One-Year Suspension of Other Fees.--Section 503 of the Small 
Business Investment Act of 1958 (15 U.S.C. 697) is amended--
            (1) in subsection (b)(7)(A), by striking ``which amount 
        shall'' and inserting ``which amount shall not be assessed or 
        collected, and no amount shall accrue, during the 1-year period 
        beginning on the date of enactment of the Small Business 
        Terrorism Relief and Economic Stimulus Act of 2001, and which 
        amount shall otherwise''; and
            (2) in subsection (d)(2), by adding at the end the 
        following: ``No fee may be assessed or collected under this 
        paragraph, and no fee shall accrue, during the 1-year period 
        beginning on the date of enactment of the Small Business 
        Terrorism Relief and Economic Stimulus Act of 2001.''.

     TITLE II--SMALL BUSINESS TAX PROVISIONS FOR ECONOMIC STIMULUS

SEC. 201. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

SEC. 202. INCREASE IN EXPENSE TREATMENT OF CERTAIN DEPRECIABLE BUSINESS 
              ASSETS FOR SMALL BUSINESSES.

    (a) In General.--Section 179(b)(1) (relating to dollar limitation) 
is amended to read as follows:
            ``(1) Dollar limitation.--
                    ``(A) In general.--The aggregate cost which may be 
                taken into account under subsection (a) for any taxable 
                year shall not exceed $100,000.
                    ``(B) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2001, 
                the dollar amount contained in subparagraph (A) shall 
be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        by substituting ``calendar year 2000'' for 
                        ``calendar year 1992'' in subparagraph (B) 
                        thereof.
                If any amount as adjusted under this subparagraph is 
                not a multiple of $1,000, such amount shall be rounded 
                to the nearest multiple of $1,000.''.
    (b) Expansion of Phase-Out of Limitation.--Section 179(b)(2) is 
amended to read as follows:
            ``(2) Reduction in limitation.--
                    ``(A) In general.--The limitation under paragraph 
                (1) for any taxable year shall be reduced (but not 
                below zero) by the amount by which the cost of section 
                179 property for which a deduction is allowable 
                (without regard to this subsection) under subsection 
                (a) for such taxable year exceeds $500,000.''
                    ``(B) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2001, 
                the dollar amount contained in subparagraph (A) shall 
                be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        by substituting ``calendar year 2000'' for 
                        ``calendar year 1992'' in subparagraph (B) 
                        thereof.
                If any amount as adjusted under this subparagraph is 
                not a multiple of $10,000, such amount shall be rounded 
                to the nearest multiple of $10,000.''.
    (c) Time of Deduction.--The second sentence of section 179(a) 
(relating to election to expense certain depreciable business assets) 
is amended by inserting ``(or, if the taxpayer elects, the preceding 
taxable year if the property was purchased in such preceding year)'' 
after ``service''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 203. EXPENSING OF COMPUTER SOFTWARE.

    (a) Computer Software Eligible for Expensing.--The heading and 
first sentence of section 179(d)(1) (relating to section 179 property) 
are amended to read as follows:
            ``(1) Section 179 property.--For purposes of this section, 
        the term `section 179 property' means property--
                    ``(A) which is--
                            ``(i) tangible property to which section 
                        168 applies, or
                            ``(ii) computer software (as defined in 
                        section 197(e)(3)(B)) to which section 167 
                        applies,
                    ``(B) which is section 1245 property (as defined in 
                section 1245(a)(3)), and
                    ``(C) which is acquired by purchase for use in the 
                active conduct of a trade or business.''.
    (b) No Computer Software Included as Section 197 Intangible.--
            (1) In general.--Section 197(e)(3)(A) is amended to read as 
        follows:
                    ``(A) In general.--Any computer software.''.
            (2) Conforming amendment.--Section 167(f)(1)(B) is amended 
        by striking ``; except that such term shall not include any 
        such software which is an amortizable section 197 intangible''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2000.

SEC. 204. MODIFICATION OF DEPRECIATION RULES FOR COMPUTERS AND 
              SOFTWARE.

    (a) 2-Year Applicable Recovery Period for Depreciation of Computers 
and Peripheral Equipment.--
            (1) In general.--Section 168(c) (relating to applicable 
        recovery period) is amended by adding at the end the following 
        flush sentence:
``In the case of 5-year property which is a computer or peripheral 
equipment, the applicable recovery period shall be 2 years.''.
            (2) Conforming amendments.--
                    (A) Section 168(g)(3)(C) (relating to alternative 
                depreciation system for certain property) is amended to 
                read as follows:
                    ``(C) Qualified technological equipment.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), in the case of any qualified 
                        technological equipment, the recovery period 
                        used for purposes of paragraph (2) shall be 5 
                        years.
                            ``(ii) Computers or peripheral equipment.--
                        In the case of any computer or peripheral 
                        equipment, the recovery period used for 
                        purposes of paragraph (2) shall be 2 years.''.
                    (B) Section 168(j)(2) (relating to depreciation of 
                property on Indian reservations) is amended by adding 
                at the end the following flush sentence:
``In the case of 5-year property which is a computer or peripheral 
equipment, the applicable recovery period shall be 1 year.''.
                    (C) Section 467(e)(3)(A) (relating to certain 
                payments for the use of property or services) is 
                amended by adding at the end the following flush 
                sentence:
``In the case of 5-year property which is a computer or peripheral 
equipment, the applicable recovery period shall be 2 years.''.
    (b) 2-Year Depreciation Period for Computer Software.--Section 
167(f)(1)(A) of the Internal Revenue Code of 1986 is amended by 
striking ``36 months'' and inserting ``24 months''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2000.

SEC. 205. ADJUSTMENTS TO DEPRECIATION LIMITS FOR BUSINESS VEHICLES.

    (a) In General.--
            (1) Increase in limitation.--Section 280F(a)(1)(A) 
        (relating to limitation on amount of depreciation for luxury 
        automobiles) is amended--
                    (A) by striking ``$2,560'' in clause (i) and 
                inserting ``$5,400'';
                    (B) by striking ``$4,100'' in clause (ii) and 
                inserting ``$8,500'';
                    (C) by striking ``$2,450'' in clause (iii) and 
                inserting ``$5,100''; and
                    (D) by striking ``$1,475'' in clause (iv) and 
                inserting ``$3,000''.
            (2) Conforming amendment.--Section 280F(a)(1)(B)(ii) 
        (relating to disallowed deductions allowed for years after 
        recovery period) is amended by striking ``$1,475'' each place 
        that it appears and inserting ``$3,000''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2000.

SEC. 206. INCREASED DEDUCTION FOR BUSINESS MEAL EXPENSES.

    (a) In General.--Section 274(n)(1) (relating to only 50 percent of 
meal and entertainment expenses allowed as deduction) is amended by 
striking ``50 percent'' in the text and inserting ``the allowable 
percentage''.
    (b) Allowable Percentage.--Section 274(n) is amended by 
redesignating paragraphs (2) and (3) as paragraphs (3) and (4), 
respectively, and by inserting after paragraph (1) the following new 
paragraph:
            ``(2) Allowable percentage.--For purposes of paragraph (1), 
        the allowable percentage is--
                    ``(A) in the case of amounts for items described in 
                paragraph (1)(B), 50 percent, and
                    ``(B) in the case of expenses for food or 
                beverages, 100 percent.''.
    (c) Clarification of Special Rule for Individuals Subject to 
Federal Hours of Service.--Section 274(n)(4) (relating to limited 
percentages of meal and entertainment expenses allowed as deduction), 
as redesignated by subsection (b), is amended to read as follows:
            ``(4) Special rule for individuals subject to federal hours 
        of service.--In the case of any expenses for food or beverages 
        consumed while away from home (within the meaning of section 
        162(a)(2)) by an individual during, or incident to, the period 
        of duty subject to the hours of service limitations of the 
        Department of Transportation, paragraph (2)(B) shall apply to 
        such expenses.''.
    (d) Conforming Amendment.--The heading for subsection (n) of 
section 274 is amended by striking ``50 Percent'' and inserting 
``Limited Percentages''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 207. MODIFICATION OF UNRELATED BUSINESS INCOME LIMITATION ON 
              INVESTMENT IN CERTAIN DEBT-FINANCED PROPERTIES.

    (a) In General.--Section 514(c)(6) (relating to acquisition 
indebtedness) is amended--
            (1) by striking ``include an obligation'' and inserting 
        ``include--
                    ``(A) an obligation'',
            (2) by striking the period at the end and inserting ``, 
        or'', and
            (3) by adding at the end the following:
                    ``(B) indebtedness incurred by a small business 
                investment company licensed under the Small Business 
                Investment Act of 1958 which is evidenced by a 
                debenture--
                            ``(i) issued by such company under section 
                        303(a) of such Act, or
                            ``(ii) held or guaranteed by the Small 
                        Business Administration.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to acquisitions made on or after the date of the enactment of 
this Act.

SEC. 208. REPEAL OF ALTERNATIVE MINIMUM TAX ON INDIVIDUALS.

    (a) In General.--
            (1) Repeal.--Section 55(a) (relating to alternative minimum 
        tax) is amended by adding at the end the following new flush 
        sentence:
``For purposes of this title, the tentative minimum tax on any taxpayer 
other than a corporation for any taxable year beginning after December 
31, 2000, shall be zero.''.
            (2) Nonrefundable personal credits fully allowed against 
        regular tax liability.--
                    (A) In general.--Section 26(a) (relating to 
                limitation based on amount of tax) is amended to read 
                as follows:
    ``(a) Limitation Based on Amount of Tax.--The aggregate amount of 
credits allowed by this subpart for the taxable year shall not exceed 
the taxpayer's regular tax liability for the taxable year.''.
                    (B) Child credit.--Section 24(d) is amended by 
                striking paragraph (2) and by redesignating paragraph 
                (3) as paragraph (2).
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 209. EXEMPTION FROM ALTERNATIVE MINIMUM TAX FOR SMALL 
              CORPORATIONS.

    (a) In General.--Section 55(e)(1)(A) (relating to exemption for 
small corporations) is amended to read as follows:
                    ``(A) $10,000,000 gross receipts test.--The 
                tentative minimum tax of a corporation shall be zero 
                for any taxable year if the corporation's average 
                annual gross receipts for all 3-taxable-year periods 
                ending before such taxable year does not exceed 
                $10,000,000. For purposes of the preceding sentence, 
                only taxable years beginning after December 31, 1997, 
                shall be taken into account.''.
    (b) Gross Receipts Test for First 3-Year Period.--Section 
55(e)(1)(B) is amended to read as follows:
                    ``(B) $7,500,000 gross receipts test for first 3-
                year period.--Subparagraph (A) shall be applied by 
                substituting `$7,500,000' for `$10,000,000' for the 
                first 3-taxable-year period (or portion thereof) of the 
                corporation which is taken into account under 
                subparagraph (A).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

                 TITLE III--SMALL BUSINESS PROCUREMENTS

SEC. 301. EXPANSION OF OPPORTUNITY FOR SMALL BUSINESSES TO BE AWARDED 
              DEPARTMENT OF DEFENSE CONTRACTS FOR ARCHITECTURAL AND 
              ENGINEERING SERVICES AND CONSTRUCTION DESIGN.

    Section 2855(b)(2) of title 10, United States Code, is amended by 
striking ``$85,000'' and inserting ``$300,000''.

SEC. 302. PROCUREMENTS OF PROPERTY AND SERVICES IN AMOUNTS NOT IN 
              EXCESS OF $100,000 FROM SMALL BUSINESSES.

    (a) Small Business Set-Asides.--Section 15 of the Small Business 
Act (15 U.S.C. 644) is amended by adding at the end the following:
    ``(q) Procurements of Property and Services not in Excess of 
$100,000.--
            ``(1) Federal supply schedule items.--The head of an agency 
        procuring items listed on a Federal Supply Schedule in a total 
        amount not in excess of $100,000 shall procure the items from a 
        small business.
            ``(2) Other property and services.--The head of an agency 
        procuring property or services not listed on a Federal Supply 
        Schedule in a total amount not in excess of $100,000 shall 
        procure the property or services from a small business 
        registered on PRO-Net or the Centralized Contractor 
        Registration System. Competitive procedures shall be used in 
        the selection of sources for procurements from small businesses 
        under this subsection.''.
    (b) Phased Implementation.--
            (1) First 2 years.--During the 2-year period beginning on 
        the effective date determined under subsection (c), the 
        requirement of subsection (q)(1) of section 15 of the Small 
        Business Act (as added by subsection (a) of this section) shall 
        apply with respect to 25 percent of the procurements described 
        in that subsection (determined on the basis of amount), and the 
        requirement in subsection (q)(2) of that section shall apply 
        with respect to 25 percent of the procurements described in 
        subsection (q)(2) (determined on the basis of amount).
            (2) Ensuing 2 years.--During the 2-year period beginning on 
        the day after the expiration of the period described in 
        paragraph (1), the requirement of subsection (q)(1) of section 
        15 of the Small Business Act (as added by subsection (a) of 
        this section) shall apply with respect to 50 percent of the 
        procurements described in that subsection (determined on the 
        basis of amount), and the requirement in subsection (q)(2) of 
        that section shall apply with respect to 50 percent of the 
        procurements described in subsection (q)(2) (determined on the 
        basis of amount).
    (c) Effective Date.--Section 15(q) of the Small Business Act (as 
added by subsection (a) of this section) shall take effect on the first 
day of the first month that begins not less than 180 days after the 
date of enactment of this Act.

SEC. 303. SOLE SOURCE PROCUREMENTS OF PROPERTY AND SERVICES UNDER THE 
              2001 EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR 
              RECOVERY FROM AND RESPONSE TO TERRORIST ATTACKS ON THE 
              UNITED STATES.

    Notwithstanding the provisions of sections 8(a)(1)(D)(i)(II) and 
subclauses (I) and (II) of section 31(b)(2)(A)(ii)( of the Small 
Business Act (15 U.S.C. 637(a)(1)(D)(i)(II), 658(b)(2)(A)(ii)(I), and 
658 (b)(2)(A)(ii)(II), respectively), a contracting officer may award 
non-competitive contracts with the budget authority provided by the 
2001 Emergency Supplemental Appropriations Act for Recovery From and 
Response To Terrorist Attacks on the United States (Public Law 107-38) 
or by subsequent emergency appropriations bill adopted pursuant 
thereto, if--
            (1) such contracts are to be awarded to an eligible Program 
        Participant under section 8(a) or to a qualified HUBZone small 
        business concern under section 3(p)(5) of the Small Business 
        Act (15 U.S.C. 637(a) and 632(p)(5)), and
            (2) the head of the procuring agency certifies that the 
        property or services needed by the agency are of such an 
        unusual and compelling urgency that the United States would be 
        seriously harmed by use of competitive procedures, pursuant 
        to--
                    (A) section 2304(c)(2) of title 10, United States 
                Code, or
                    (B) section 303(c)(2) of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 
                253(c)(2)).
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