[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5108 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5108

 To reauthorize certain programs of the Small Business Administration, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 2004

 Mr. Manzullo introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
 To reauthorize certain programs of the Small Business Administration, 
                        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 and Manufacturing Assistance Act of 2004''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--SMALL MANUFACTURERS ASSISTANCE

Sec. 101. Combination financing.
Sec. 102. Loan guarantee fees.
Sec. 103. Express loans.
Sec. 104. Deferred participation loan standards.
Sec. 105. Increase in guarantee amount and institution of associated 
                            fee.
Sec. 106. Debenture size.
Sec. 107. Job requirements.
Sec. 108. Report regarding national database of small manufacturers.
Sec. 109. International trade.
                        TITLE II--AUTHORIZATIONS

        Subtitle A--Program authorization levels and additional 
                            reauthorizations

Sec. 201. Program authorization levels.
Sec. 202. Additional reauthorizations.
       Subtitle B--Paul D. Coverdell drug-free workplace program 
                  authorizations and sundry amendments

Sec. 211. Paul D. Coverdell drug-free workplace program authorization 
                            provisions.
Sec. 212. Grant provisions.
Sec. 213. Drug-free communities coalitions as eligible intermediaries.
Sec. 214. Promotion of effective practices of eligible intermediaries.
Sec. 215. Report to Congress.
        TITLE III--ADMINISTRATION ACCOUNTABILITY AND MANAGEMENT

Sec. 301. Document retention and investigations.
Sec. 302. Management of the Small Business Administration.
             TITLE IV--ENTREPRENEURIAL DEVELOPMENT PROGRAMS

           Subtitle A--Office of entrepreneurial development

Sec. 401. Service Corps of Retired Executives.
Sec. 402. Small business development center program.
          Subtitle B--Office of veterans business development

Sec. 431. Advisory Committee on veterans business affairs.
Sec. 432. Outreach grants for veterans.
Sec. 433. Authorization of appropriations.
Sec. 434. National Veterans Business Development Corporation.
           TITLE V--SMALL BUSINESS PROCUREMENT OPPORTUNITIES

Sec. 501. Women-owned small business concerns; authorities of 
                            Administrator.
Sec. 502. Procurement center representatives.
TITLE VI--MISCELLANEOUS AMENDMENTS TO SMALL BUSINESS INVESTMENT ACT OF 
                                  1958

Sec. 601. Amendment to definition of equity capital with respect to 
                            issuers of participating securities.
Sec. 602. Amendment to small business investment company aggregate 
                            limitations provision.
Sec. 603. Investment of excess funds.
Sec. 604. Clarification of maximum surety bond guarantee.

                TITLE I--SMALL MANUFACTURERS ASSISTANCE

SEC. 101. COMBINATION FINANCING.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following new paragraph:
    ``(31) Combination Financing.--
            ``(A) Definitions.--As used in this paragraph--
                    ``(i) the term `combination financing' means 
                financing comprised of a loan guaranteed under this 
                subsection and a commercial loan; and
                    ``(ii) the term `commercial loan' means a loan that 
                is part of a combination financing and no portion of 
                which is guaranteed by the Federal Government.
            ``(B) Applicability.--This paragraph applies to a loan 
        guarantee obtained by a small business concern under this 
        subsection, if the small business concern also obtains a 
        commercial loan.
            ``(C) Commercial loan amount.--In the case of any 
        combination financing, the amount of the commercial loan which 
        is part of such financing shall not exceed the gross amount of 
        the loan guaranteed under this subsection which is part of such 
        financing.
            ``(D) Commercial loan provisions.--The commercial loan 
        obtained by the small business concern--
                    ``(i) may be made by the participating lender that 
                is providing financing under this subsection or by a 
                different lender;
                    ``(ii) may be secured by a senior lien; and
                    ``(iii) may be made by a lender in the Preferred 
                Lenders Program, if applicable.
            ``(E) Commercial loan fee.--A one-time fee in an amount 
        equal to 0.7 percent of the amount of the commercial loan shall 
        be paid to the Administrator if the commercial loan has a 
        senior credit position to that of the loan guaranteed under 
        this paragraph. Any fee under the preceding sentence shall be 
        paid by the participating lender and shall not be charged to 
        the borrower.
            ``(F) Deferred participation loan security.--A loan 
        guaranteed under this paragraph may be secured by a 
        subordinated lien.
            ``(G) Completion of application processing.--The 
        Administrator shall complete processing of an application for 
        combination financing under this paragraph pursuant to the 
        program authorized by this subsection as it was operating on 
        October 1, 2003.
            ``(H) Business loan eligibility.--Any standards prescribed 
        by the Administrator relating to the eligibility of small 
        business concerns to obtain combination financing under this 
        subsection which are in effect on September 1, 2004, shall 
        apply with respect to combination financings made under this 
        paragraph. Any modifications to such standards by the 
        Administrator after such date shall not unreasonably restrict 
        the availability of combination financing under this paragraph 
        relative to the availability of such financing before such 
        modifications.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 102. LOAN GUARANTEE FEES.

    (a) In General.--Section 7(a)(23)(A) of the Small Business Act (15 
U.S.C. 636(a)(23)(A)) is amended to read as follows:
            ``(A) Percentage.--With respect to each loan guaranteed 
        under this subsection, the Administrator shall, in accordance 
        with such terms and procedures as the Administrator shall 
        establish by regulation, assess and collect an annual fee in an 
        amount equal to 0.36 percent of the outstanding balance of the 
        deferred participation share of the loan.''.
    (b) Guarantee Fees.--Paragraph (18) of subsection (a) of section 7 
of the Small Business Act (15 U.S.C. 636(a)(18) is amended to read as 
follows:
            ``(18) Guarantee fees.--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:
                    ``(A) A guarantee fee equal to 1 percent of the 
                deferred participation share of a total loan amount 
                that is not more than $150,000.
                    ``(B) A guarantee fee equal to 2.5 percent of the 
                deferred participation share of a total loan amount 
                that is more than $150,000, but not more than $700,000.
                    ``(C) A guarantee fee equal to 3.5 percent of the 
                deferred participation share of a total loan amount 
                that is more than $700,000.
                    ``(D) In addition to the fee under subparagraph 
                (C), a guarantee fee equal to 0.25 percent of the 
                amount, if any, by which the deferred participation 
                share of the loan exceeds $1,000,000.''.

SEC. 103. EXPRESS LOANS.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by section 101, is further amended by adding at the 
end the following new paragraph:
            ``(32) Express loans.--
                    ``(A) Definitions.--As used in this paragraph:
                            ``(i) The term `express lender' means any 
                        lender authorized by the Administrator to 
                        participate in the Express Loan Program.
                            ``(ii) The term `express loan' means any 
                        loan made pursuant to this paragraph in which a 
                        lender utilizes to the maximum extent 
                        practicable its own loan analyses, procedures, 
                        and documentation.
                            ``(iii) The term `Express Loan Program' 
                        means the program for express loans established 
                        by the Administrator under paragraph (25)(B), 
                        as in existence on April 5, 2004, with a 
                        guaranty rate of not more than 50 percent.
                    ``(B) Restriction to express lender.--The authority 
                to make an express loan shall be limited to those 
                lenders deemed qualified to make such loans by the 
                Administrator. Designation as an express lender for 
                purposes of making an express loan shall not prohibit 
                such lender from taking any other action authorized by 
                the Administrator for that lender pursuant to this 
                subsection.
                    ``(C) Grandfathering of existing lenders.--Any 
                express lender shall retain such designation unless the 
                Administrator determines that the express lender has 
                violated the law or regulations promulgated by the 
                Administrator or modifies the requirements to be an 
                express lender and the lender no longer satisfies those 
                requirements.
                    ``(D) Maximum loan amount.--The maximum loan amount 
                under the Express Loan Program is $2,000,000.
                    ``(E) Option to participate.--Except as otherwise 
                provided in this paragraph, the Administrator shall 
                take no regulatory, policy, or administrative action, 
                without regard to whether such action requires 
                notification pursuant to paragraph (24), that has the 
                effect of--
                            ``(i) requiring a lender to make an express 
                        loan pursuant to subparagraph (D);
                            ``(ii) limiting or modifying any term or 
                        condition of deferred participation loans made 
                        under this subsection (other than express 
                        loans) unless the Administrator imposes the 
                        same limit or modification on express loans;
                            ``(iii) transferring or re-allocating 
                        staff, staff responsibilities, resources, or 
                        funding, if the result of such transfer or re-
                        allocation would be to increase the average 
                        loan processing, approval, or disbursement time 
                        above the averages for those functions as of 
                        October 1, 2003, for loan guarantees approved 
                        under this subsection by employees of the 
                        Administration or through the Preferred Lenders 
                        Program; or
                            ``(iv) otherwise providing any incentive or 
                        disincentive which encourages lenders or 
                        borrowers to make or obtain loans under the 
                        Express Loan Program instead of under the 
                        general loan authority of this subsection.
                    ``(F) Collection and reporting of data.--For all 
                loans in excess of $250,000 made pursuant to the 
                authority set forth in subparagraph (D), the 
                Administrator shall, to the extent practicable, collect 
                data on the purpose for each such loan. The 
                Administrator shall report monthly to the Committee on 
                Small Business and Entrepreneurship of the Senate and 
                the Committee on Small Business of the House of 
                Representatives on the number of such loans and their 
                purposes.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 104. DEFERRED PARTICIPATION LOAN STANDARDS.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by section 101 and section 103, is further amended 
by adding at the end the following new paragraph:
            ``(33) Deferred participation loan standards.--Deferred 
        participation loans made on or after October 1, 2004, under 
        this subsection shall have the same terms and conditions 
        (including maximum gross loan amounts and collateral 
        requirements) as were applicable to loans made under this 
        subsection on October 1, 2003, except as otherwise provided in 
        paragraph (18)(D), paragraph (31), or paragraph (32) and 
        subject to the $1,500,000 limitation on the total amount 
        outstanding and committed in paragraph (3)(A), as in effect on 
        October 1, 2004. This paragraph shall not preclude the 
        Administrator from taking such action as necessary to maintain 
        the loan program carried out under this subsection, subject to 
        appropriations.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 105. INCREASE IN GUARANTEE AMOUNT AND INSTITUTION OF ASSOCIATED 
              FEE.

    (a) Increase in Amount Permitted to Be Outstanding and Committed.--
Section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 636(a)(3)(A)) 
is amended by striking ``$1,000,000'' and inserting ``$1,500,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 106. 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) Maximum amount.--
                    ``(A) In general.--Loans made by the Administration 
                under this section shall be limited to--
                            ``(i) $1,500,000 for each small business 
                        concern if the loan proceeds will not be 
                        directed toward a goal or project described in 
                        subparagraph (B) or (C);
                            ``(ii) $2,000,000 for each small business 
                        concern if the loan proceeds will be directed 
                        toward 1 or more of the public policy goals 
                        described under section 501(d)(3); and
                            ``(iii) $4,000,000 for each project of a 
                        small manufacturer.
                    ``(B) Definition.--As used in this paragraph, the 
                term `small manufacturer' means a small business 
                concern--
                            ``(i) the primary business of which is 
                        classified in sector 31, 32, or 33 of the North 
                        American Industrial Classification System; and
                            ``(ii) all of the production facilities of 
                        which are located in the United States.''.

SEC. 107. JOB REQUIREMENTS.

    Section 501 of the Small Business Investment Act of 1958 (15 U.S.C. 
695) is amended by adding at the end the following new subsection:
    ``(e)(1) A project meets the objective set forth in subsection 
(d)(1) if the project creates or retains one job for every $50,000 
guaranteed by the Administration, except that the amount is $100,000 in 
the case of a project of a small manufacturer.
    ``(2) Paragraph (1) does not apply to a project for which 
eligibility is based on the objectives set forth in paragraph (2) or 
(3) of subsection (d), if the development company's portfolio of 
outstanding debentures creates or retains one job for every $50,000 
guaranteed by the Administration.
    ``(3) For projects in Alaska, Hawaii, State-designated enterprise 
zones, empowerment zones and enterprise communities, labor surplus 
areas, as determined by the Secretary of Labor, and for other areas 
designated by the Administrator, the development company's portfolio 
may average not more than $75,000 per job created or retained.
    ``(4) Loans for projects of small manufacturers shall be excluded 
from calculations under paragraph (2) or (3).
    ``(5) Under regulations prescribed by the Administrator, the 
Administrator may waive any requirement of this subsection (other than 
paragraph (4)).
    ``(6) As used in this subsection, the term `small manufacturer' 
means a small business concern--
            ``(A) the primary business of which is classified in sector 
        31, 32, or 33 of the North American Industrial Classification 
        System; and
            ``(B) all of the production facilities of which are located 
        in the United States.''.

SEC. 108. REPORT REGARDING NATIONAL DATABASE OF SMALL MANUFACTURERS.

    (a) Study and Report.--The Administrator, in consultation with the 
association of small business development centers authorized by section 
21(k) of the Small Business Act (15 U.S.C. 648(k)), shall--
            (1) study the feasibility of creating a national database 
        of small manufacturers that institutions of higher education 
        could access for purposes of meeting procurement needs; and
            (2) not later than one year after the date of the enactment 
        of this Act, transmit a report to the Congress regarding the 
        findings and conclusions of such study.
    (b) Cost Estimate.--The report referred to in subsection (a)(2) 
shall include an estimate of the cost of creating and maintaining the 
database described in subsection (a)(1).
    (c) Definition.--As used in this section, the term ``small 
manufacturer'' means a small business concern --
            (1) the primary business of which is classified in sector 
        31, 32, or 33 of the North American Industrial Classification 
        System; and
            (2) all of the production facilities of which are located 
        in the United States.

SEC. 109. INTERNATIONAL TRADE.

    (a) In General.--Section 7(a)(16) of the Small Business Act (15 
U.S.C. 636(a)(16)) is amended to read as follows:
            ``(16) International trade.--
                    ``(A) In general.--If the Administrator determines 
                that a loan guaranteed under this subsection will allow 
                an eligible small business concern that is engaged in 
                or adversely affected by international trade to improve 
                its competitive position, the Administrator may make 
                such loan to assist such concern in--
                            ``(i) the financing of the acquisition, 
                        construction, renovation, modernization, 
                        improvement, or expansion of productive 
                        facilities or equipment to be used in the 
                        United States in the production of goods and 
                        services involved in international trade; or
                            ``(ii) the refinancing of existing 
                        indebtedness that is not structured with 
                        reasonable terms and conditions.
                    ``(B) Security.--Each loan made under this 
                paragraph shall be secured by a first lien position or 
                first mortgage on the property or equipment financed by 
                the loan or on other assets of the small business 
                concern.
                    ``(C) Engaged in international trade.--For purposes 
                of this paragraph, a small business concern is engaged 
                in international trade if, as determined by the 
                Administrator, the small business concern is in a 
                position to expand existing export markets or develop 
                new export markets.
                    ``(D) Adversely affected by international trade.--
                For purposes of this paragraph, a small business 
                concern is adversely affected by international trade 
                if, as determined by the Administrator, the small 
                business concern--
                            ``(i) is confronting increased competition 
                        with foreign firms in the relevant market; and
                            ``(ii) is injured by such competition.
                    ``(E) Findings by certain federal agencies.--For 
                purposes of subparagraph (D)(ii) the Administrator 
                shall accept any finding of injury by the International 
                Trade Commission or any finding of injury by the 
                Secretary of Commerce pursuant to chapter 3 of title II 
                of the Trade Act of 1974.''.
    (b) Limitation Increase.--Section 7(a)(3)(B) of the Small Business 
Act (15 U.S.C. 636(a)(3)(B)) is amended--
            (1) by striking ``1,250,000'' and inserting ``1,750,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$1,250,000''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2004.

                        TITLE II--AUTHORIZATIONS

        Subtitle A--Program Authorization Levels and Additional 
                            Reauthorizations

SEC. 201. PROGRAM AUTHORIZATION LEVELS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended--
            (1) in subparagraph (D) and subparagraph (E) of paragraph 
        (1) of subsection (a), by striking ``certification'' and 
        inserting ``accreditation''; and
            (2) by striking subsections (c) through (i) and inserting 
        the following new subsections:
    ``(c) Disaster Mitigation Pilot Program.--The following program 
levels are authorized for loans under section 7(b)(1)(C):
            ``(1) $15,000,000 for fiscal year 2005.
            ``(2) $15,000,000 for fiscal year 2006.
    ``(d) Fiscal Year 2005.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2005:
                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                            ``(i) $75,000,000 in technical assistance 
                        grants, as provided in section 7(m); and
                            ``(ii) $105,000,000 in direct loans, as 
                        provided in 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $23,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                            ``(i) $16,500,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $6,000,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) and as provided in 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) $4,250,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $3,250,000,000 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 2005 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 2005--
                            ``(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 $2,000,000.
    ``(e) Fiscal Year 2006.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2006:
                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                            ``(i) $80,000,000 in technical assistance 
                        grants, as provided in section 7(m); and
                            ``(ii) $110,000,000 in direct loans, as 
                        provided in 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $25,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                            ``(i) $17,000,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $7,500,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) and as provided in 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) $4,500,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $3,500,000,000 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 $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 2006 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 2006--
                            ``(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 $2,000,000.''.

SEC. 202. ADDITIONAL REAUTHORIZATIONS.

    (a) Drug-Free Workplace Program Assistance.--Section 21(c)(3)(T) of 
the Small Business Act (15 U.S.C. 648(c)(3)(T)) is amended by striking 
``October 1, 2003'' and inserting ``October 1, 2006''.
    (b) Small Business Development Centers.--Section 21(a)(4)(C) of the 
Small Business Act (15 U.S.C. 648(a)(4)(C)) is amended--
            (1) by amending clause (vii) to read as follows:
                    ``(vii) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                subparagraph--
                            ``(I) $130,000,000 for fiscal year 2005; 
                        and
                            ``(II) $135,000,000 for fiscal year 
                        2006.'';
            (2) by redesignating clause (viii) as clause (ix); and
            (3) by inserting after clause (vii) the following:
                    ``(viii) Limitation.--From the funds appropriated 
                pursuant to clause (vii), the Administration shall 
                reserve not less than $1,000,000 in each fiscal year to 
                develop portable assistance for startup and 
                sustainability non-matching grant programs to be 
                conducted by eligible small business development 
                centers in communities that are economically challenged 
                as a result of a business or government facility down 
                sizing or closing, which has resulted in the loss of 
                jobs or small business instability. A non-matching 
                grant under this clause shall not exceed $100,000, and 
                shall be used for small business development center 
                personnel expenses and related small business programs 
                and services.''.

       Subtitle B--Paul D. Coverdell Drug-free Workplace Program 
                  Authorizations and Sundry Amendments

SEC. 211. PAUL D. COVERDELL DRUG-FREE WORKPLACE PROGRAM AUTHORIZATION 
              PROVISIONS.

    (a) In General.--Paragraph (1) of section 27(g) of the Small 
Business Act (15 U.S.C. 654(g)(1)) is amended by striking ``, 
$5,000,000'' in the first sentence and all that follows through 
``subsection'' in the second sentence and inserting the following: 
``(other than subsection (b)(2)), $5,000,000 for each of fiscal years 
2005 and 2006. Amounts made available under this paragraph''.
    (b) Limitation on Authorization for Small Business Development 
Centers.--Paragraph (2) of section 27(g) of the Small Business Act (15 
U.S.C. 654(g)) is amended by striking ``this subsection, not more than 
the greater of 10 percent or $1,000,000'' and inserting ``paragraph (1) 
for each of fiscal years 2005 and 2006, not more than the greater of 10 
percent or $500,000''.
    (c) Additional Authorization for Technical Assistance Grants.--
Subsection (g) of section 27 of the Small Business Act (15 U.S.C. 654) 
is amended by adding at the end the following new paragraph:
            ``(3) Additional authorization for technical assistance 
        grants.--There is authorized to be appropriated to carry out 
        subsection (b)(2), $1,500,000 for each of fiscal years 2005 and 
        2006. Amounts made available under this paragraph shall remain 
        available until expended.''.
    (d) Limitation on Administrative Costs.--Subsection (g) of section 
27 of the Small Business Act (15 U.S.C. 654), as amended by subsection 
(c), is further amended by adding at the end the following new 
paragraph:
            ``(4) Limitation on administrative costs.--Not more than 5 
        percent of the total amount made available under this 
        subsection for any fiscal year shall be used for administrative 
        costs (determined without regard to the administrative costs of 
        eligible intermediaries).''.

SEC. 212. GRANT PROVISIONS.

    (a) Additional Grants for Technical Assistance.--Subsection (b) of 
section 27 of the Small Business Act (15 U.S.C. 654) is amended--
            (1) by striking ``There is established'' and inserting the 
        following:
            ``(1) In general.--There is established''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Additional grants for technical assistance.--In 
        addition to grants under paragraph (1), the Administrator may 
        make grants to, or enter into cooperative agreements or 
        contracts with, any grantee for the purpose of providing, in 
        cooperation with one or more small business development 
        centers, technical assistance to small business concerns 
        seeking to establish a drug-free workplace program.''.
    (b) Grants to Be for 2 Years.--Subsection (b) of section 27 of the 
Small Business Act (15 U.S.C. 654(b)), as amended by subsection (a), is 
further amended by adding at the end the following new paragraph:
            ``(3) Grants to be for 2 years.--Each grant made under this 
        subsection shall be for a period of 2 years, subject to an 
        annual performance review by the Administrator.''.

SEC. 213. DRUG-FREE COMMUNITIES COALITIONS AS ELIGIBLE INTERMEDIARIES.

    Subparagraph (D) of section 27(a)(2) of the Small Business Act (15 
U.S.C. 654(a)(2)) is amended to read as follows:
                    ``(D)(i) the purpose of which is--
                                    ``(I) to develop comprehensive 
                                drug-free workplace programs or to 
                                supply drug-free workplace services; or
                                    ``(II) to provide other forms of 
                                assistance and services to small 
                                business concerns; or
                            ``(ii) that is eligible to receive a grant 
                        under chapter 2 of the National Narcotics 
                        Leadership Act of 1988 (21 U.S.C. 1521 et 
                        seq.).''.

SEC. 214. PROMOTION OF EFFECTIVE PRACTICES OF ELIGIBLE INTERMEDIARIES.

    Section 27 of the Small Business Act (15 U.S.C. 654) is amended by 
striking subsection (c) and inserting the following new subsection:
    ``(c) Promotion of Effective Practices of Eligible 
Intermediaries.--
            ``(1) Technical assistance and information.--The 
        Administrator, after consultation with the Director of the 
        Center for Substance Abuse and Prevention, shall provide 
        technical assistance and information to each eligible 
        intermediary under subsection (b) regarding the most effective 
        practices in establishing and carrying out drug-free workplace 
        programs.
            ``(2) Evaluation of program.--
                    ``(A) Data collection and analysis.--Each eligible 
                intermediary receiving a grant under this section shall 
                establish a system to collect and analyze information 
                regarding the effectiveness of drug-free workplace 
                programs established with assistance provided under 
                this section through the intermediary, including 
                information regarding any increase or decrease among 
                employees in drug use, awareness of the adverse 
                consequences of drug use, and absenteeism, injury, and 
                disciplinary problems related to drug use. Such system 
                shall conform to such requirements as the 
                Administrator, after consultation with the Director of 
                the Center for Substance Abuse and Prevention, may 
                prescribe. Not more than 5 percent of the amount of 
                each grant made under subsection (b) shall be used by 
                the eligible intermediary to carry out this paragraph.
                    ``(B) Method of evaluation.--The Administrator, 
                after consultation with the Director of the Center for 
                Substance Abuse and Prevention, shall provide technical 
                assistance and guidance to each eligible intermediary 
                receiving a grant under subsection (b) regarding the 
                collection and analysis of information to evaluate the 
                effectiveness of drug-free workplace programs 
                established with assistance provided under this 
                section, including the information referred to in 
                paragraph (1). Such assistance shall include the 
                identification of additional information suitable for 
                measuring the benefits of drug-free workplace programs 
                to the small business concern and to the concern's 
                employees and the identification of methods suitable 
                for analyzing such information.''.

SEC. 215. REPORT TO CONGRESS.

    Not later than March 31, 2006, the Administrator of the Small 
Business Administration, in consultation with the Secretary of Labor, 
the Secretary of Health and Human Services, and the Director of 
National Drug Control Policy, shall submit to the Congress a report 
that--
            (1) analyzes the information collected under section 27(c) 
        of the Small Business Act;
            (2) identifies trends in such information; and
            (3) evaluates the effectiveness of the drug-free workplace 
        programs established with assistance under section 27 of the 
        Small Business Act (15 U.S.C. 654).

        TITLE III--ADMINISTRATION ACCOUNTABILITY AND MANAGEMENT

SEC. 301. DOCUMENT RETENTION AND INVESTIGATIONS.

    Section 10(e) of the Small Business Act (15 U.S.C. 639(e)) is 
amended by striking the matter preceding paragraph (2) and inserting 
the following:
    ``(e) Document Retention; Investigations.--
            ``(1) Document retention.--The Administrator and the 
        Inspector General of the Administration shall--
                    ``(A) retain all documents and records, including 
                correspondence, records of inquiry, memoranda 
                (including those relating to all investigations 
                conducted by or for the Administration), reports, 
                studies, analyses, contracts, agreements, opinions, 
                computer entries, e-mail messages, forms, manuals, 
                briefing materials, press releases, and books for a 
                period of not less than 2 years from the date such 
                documents are created;
                    ``(B) keep the items described in subparagraph (A) 
                available at all times for inspection and examination 
                by the Committee on Small Business and Entrepreneurship 
                of the Senate and the Committee on Small Business of 
                the House of Representatives, or their duly authorized 
                representatives; and
                    ``(C) upon the written request of the Committee on 
                Small Business and Entrepreneurship of the Senate or 
                the Committee on Small Business of the House of 
                Representatives pursuant to subparagraph (B), the 
                Administrator or the Inspector General, as applicable, 
                shall make such documents or records available to the 
                requesting committee or its duly authorized 
                representative within 5 business days of the request, 
                and if a document or record cannot be made available 
                within such timeframe, the Administrator or the 
                Inspector General, as applicable, shall provide the 
                requesting committee with a written explanation stating 
                the reason that each document or record requested has 
                not been provided and a date certain for its 
                production.''.

SEC. 302. MANAGEMENT OF THE SMALL BUSINESS ADMINISTRATION.

    Section 4 of the Small Business Act (15 U.S.C. 633) is amended--
            (1) by striking ``Sec. 4.'' and inserting the following:

``SEC. 4. MANAGEMENT OF THE SMALL BUSINESS ADMINISTRATION.'';

            (2) in subsection (a), by striking ``(a)'' and inserting 
        the following:
    ``(a) Establishment.--'';
            (3) in subsection (b)--
                    (A) by striking ``(b)(1)'' and inserting the 
                following:
    ``(b) Authority of Administrator.--
            ``(1) In general.--
                    ``(A) Appointment.--'';
                    (B) in paragraph (1)--
                            (i) by striking ``The Administrator shall 
                        not engage'' and inserting the following:
                    ``(B) Sole employment.--The Administrator shall not 
                engage'';
                            (ii) by striking ``In carrying out'' and 
                        inserting the following:
                    ``(C) Nondiscrimination; special consideration for 
                veterans.--In carrying out''; and
                            (iii) by striking ``The President'' and 
                        inserting the following:
                    ``(D) Appointment of deputy administrator; 
                associate administrators.--The President''; and
                    (C) in paragraph (2), by striking ``the 
                Administrator also'' and inserting ``Responsibilities 
                of Administrator.--The Administrator''; and
            (4) by adding at the end the following:
    ``(g) Office of Lender Oversight.--The Director of the Office of 
Lender Oversight shall--
            ``(1) formulate, execute, and promote policies and 
        procedures of the Administration that provide adequate and 
        effective oversight and review of lenders participating in, or 
        applying to participate in, the loan and loan guaranty programs 
        for small business concerns under this Act and the Small 
        Business Investment Act of 1958 (15 U.S.C. 661 et seq.); and
            ``(2) report directly to the Chief Financial Officer of the 
        Administration.''.

             TITLE IV--ENTREPRENEURIAL DEVELOPMENT PROGRAMS

           Subtitle A--Office of Entrepreneurial Development

SEC. 401. SERVICE CORPS OF RETIRED EXECUTIVES.

    (a) In General.--Section 8(b)(1)(B) of the Small Business Act (15 
U.S.C. 637(b)(1)(B)) is amended--
            (1) by striking ``this Act; and to'', and inserting ``this 
        Act. To'';
            (2) by striking ``may maintain at its headquarters'' and 
        all that follows through ``That any'' and inserting ``shall 
        maintain at its headquarters and pay the salaries, benefits, 
        and expenses of a volunteer and professional staff to manage 
        and oversee the program. Any''; and
            (3) by striking the period at the end and inserting the 
        following: ``and the management of the contributions 
        received.''.
    (b) Regulations.--The Administration shall, not later than 180 days 
after the date of enactment of this Act, promulgate regulations to 
carry out the amendments made by subsection (a).
    (c) 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, 108 Stat. 4190) is amended by striking 
``September 30, 2003'' and inserting ``September 30, 2006''.

SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.

    (a) Privacy Requirements.--Section 21(a) of the Small Business Act 
(15 U.S.C. 648(a)) is amended by adding at the end the following:
            ``(7) Privacy requirements.--
                    ``(A) In general.--A small business development 
                center, consortium of small business development 
                centers, or contractor or agent of a small business 
                development center may not disclose the name, address, 
                or telephone number of any individual or small business 
                concern receiving assistance under this section without 
                the consent of such individual or small business 
                concern, unless--
                            ``(i) the Administrator is ordered to make 
                        such a disclosure by a court in any civil or 
                        criminal enforcement action initiated by a 
                        Federal or State agency; or
                            ``(ii) the Administrator considers such a 
                        disclosure to be necessary for the purpose of 
                        conducting a financial audit of a small 
                        business development center, but a disclosure 
                        under this clause shall be limited to the 
                        information necessary for such audit.
                    ``(B) Administration use of information.--This 
                section shall not--
                            ``(i) restrict Administration access to 
                        program activity data; or
                            ``(ii) prevent the Administration from 
                        using client information (other than the 
                        information described in subparagraph (A)) to 
                        conduct client surveys.
                    ``(C) Regulations.--The Administrator shall issue 
                regulations to establish standards for requiring 
                disclosures during a financial audit under subparagraph 
                (A)(ii).''.
    (b) Term Change.--Section 21(k) of the Small Business Act (15 
U.S.C. 648(k)) is amended--
            (1) by striking ``Certification'' each place it appears and 
        inserting ``Accreditation''; and
            (2) by striking ``certification'' each place it appears and 
        inserting ``accreditation''.

          Subtitle B--Office of Veterans Business Development

SEC. 431. ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS.

    (a) Retention of Duties.--Section 33(h) of the Small Business Act 
(15 U.S.C. 657c(h)) is amended by striking ``October 1, 2004'' and 
inserting ``October 1, 2006''.
    (b) Extension of Authority.--Section 203(h) of the Veterans 
Entrepreneurship and Small Business Development Act of 1999 (15 U.S.C. 
657b note) is amended by striking ``September 30, 2004'' and inserting 
``September 30, 2006''.

SEC. 432. OUTREACH GRANTS FOR VETERANS.

    Section 8(b)(17) of the Small Business Act (15 U.S.C. 637(b)(17)) 
is amended by inserting before the period at the end the following: ``, 
veterans, and members of a reserve component of the Armed Forces''.

SEC. 433. AUTHORIZATION OF APPROPRIATIONS.

    Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by 
adding at the end the following new subsection:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated for carrying out this section--
            ``(1) $1,500,000 for fiscal year 2005; and
            ``(2) $2,000,000 for fiscal year 2006.''.

SEC. 434. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

    Section 33(a) of the Small Business Act (15 U.S.C. 657c(a)) is 
amended by adding at the end the following: ``Notwithstanding any other 
provision of law, the Corporation is a private entity and is not an 
agency, instrumentality, authority, entity, or establishment of the 
United States Government.''.

           TITLE V--SMALL BUSINESS PROCUREMENT OPPORTUNITIES

SEC. 501. WOMEN-OWNED SMALL BUSINESS CONCERNS; AUTHORITIES OF 
              ADMINISTRATOR.

    Subsections (m) and (n) of section 8 of the Small Business Act (15 
U.S.C. 637 (m) and (n)) are amended to read as follows:
    ``(m) Procurement Program for Women-Owned Small Business 
Concerns.--
            ``(1) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) 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 (4);
                    ``(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 in 
                        sector 31, 32, or 33 of the North American 
                        Industrial Classification System; 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 or a 
                        State government as a small business concern 
                        owned and controlled by women;
                            ``(ii) is certified by a national 
                        certifying entity approved by the Administrator 
                        as a small business concern owned and 
                        controlled by women; or
                            ``(iii) 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.--
                    ``(A) In general.--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.
                    ``(B) Deadline.--Not later than 90 days after the 
                date of the enactment of this subparagraph the 
                Administrator shall--
                            ``(i) ensure the completion of the study 
                        described in this paragraph;
                            ``(ii) approve national certifying entities 
                        for the purposes of paragraph (2)(F)(ii); and
                            ``(iii) make determinations in accordance 
                        with paragraph (3).
            ``(5) Enforcement; penalties.--
                    ``(A) Verification of eligibility.--In carrying out 
                this subsection, the Administrator shall use existing 
                procedures established by the Office of Hearings and 
                Appeals 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.
    ``(n) Authorities of Administrator.--In carrying out subsections 
7(i), 8(a), and 8(b) the Administrator may do the following:
            ``(1) Utilize, with their consent, the services and 
        facilities of Federal agencies without reimbursement, and, with 
        the consent of any State or political subdivision of a State, 
        accept and utilize the services and facilities of such State or 
        subdivision without reimbursement.
            ``(2) Accept voluntary and uncompensated services, 
        notwithstanding section 1342 of title 31, United States Code.
            ``(3) Employ experts and consultants or organizations 
        thereof as authorized by section 3109 of title 5, United States 
        Code. No individual may be employed under the authority of this 
        paragraph for more than 100 days in any fiscal year. No 
        individual employed under this paragraph may be compensated at 
        rates in excess of the daily equivalent of the highest rate 
        payable under section 5332 of title 5, United States Code, 
        including traveltime. Individuals employed under this paragraph 
        may be allowed, while away from their homes or regular places 
        of business, travel expenses (including per diem in lieu of 
        subsistence) as authorized by section 5703 of title 5, United 
        States Code for persons in the Government service employed 
        intermittently. Contracts for employment under this paragraph 
        may be renewed annually.''.

SEC. 502. PROCUREMENT CENTER REPRESENTATIVES.

    Section 15(l) of the Small Business Act (15 U.S.C. 644(l)) is 
amended--
            (1) in the last sentence of paragraph (1), by striking ``to 
        the representative referred to in subsection (k)(6)'' and 
        inserting ``the traditional procurement center representative 
        and the commercial market representative, with each position 
        filled by a different individual, and each such representative 
        having separate and distinct duties and responsibilities.''; 
        and
            (2) by adding at the end the following new paragraph:
    ``(8) The Administration shall assign at least 1 procurement center 
representative at each major procurement center, in addition to at 
least 1 procurement center representative for each State.''.

TITLE VI--MISCELLANEOUS AMENDMENTS TO SMALL BUSINESS INVESTMENT ACT OF 
                                  1958

SEC. 601. AMENDMENT TO DEFINITION OF EQUITY CAPITAL WITH RESPECT TO 
              ISSUERS OF PARTICIPATING SECURITIES.

    Section 303(g)(4) of the Small Business Investment Act of 1958 (15 
U.S.C. 683 (g)(4)) is amended--
            (1) in the first sentence, by striking ``subsection'' and 
        inserting ``Act''; and
            (2) in the second sentence, by striking ``contingent upon 
        and limited to the extent of earnings'' and inserting ``from 
        appropriate sources, as determined by the Administration''.

SEC. 602. AMENDMENT TO SMALL BUSINESS INVESTMENT COMPANY AGGREGATE 
              LIMITATIONS PROVISION.

    Section 306(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 686(a)) is amended by to read as follows:
    ``(a) If a small business investment company has outstanding 
financing from the Administration, the aggregate amount of obligations 
and securities acquired and for which commitments may be issued by the 
company under this title for a single enterprise shall not, without the 
approval of the Administration, exceed the greater of 20 percent of the 
private capital of the company or 10 percent of the sum of:
            ``(1) (1) the private capital of the company;
            ``(2) all leverage, whether or not outstanding, issued to 
        the company; and
            ``(3) all unexercised commitments issued to the company by 
        the Administration.''.

SEC. 603. INVESTMENT OF EXCESS FUNDS.

    Section 308(b) of the Small Business Act (15 U.S.C. 687(b)) is 
amended by striking the last sentence and inserting the following new 
sentence: ``Such companies with outstanding financings are authorized 
to invest funds not needed for their operations--
            ``(1) in direct obligations of, or obligations guaranteed 
        as to principal and interest by, the United States;
            ``(2) in certificates of deposit or other accounts of 
        federally insured banks or other federally insured depository 
        institutions, if the certificates or other accounts mature or 
        are otherwise fully available not more than 1 year after the 
        date of the investment; or
            ``(3) in mutual funds, securities, or other instruments 
        that consist of, or represent pooled assets of, investments 
        described in paragraphs (1) or (2).''.

SEC. 604. CLARIFICATION OF MAXIMUM SURETY BOND GUARANTEE.

    Section 411(a)(1) of the Small Business Investment Act of 1958 (15 
U.S.C. 694b(a)(1)) is amended by striking ``contract up to'' and 
inserting ``total work order or contract amount at the time of bond 
execution that does not exceed''.
                                 <all>