[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1375 Reported in Senate (RS)]






                                                       Calendar No. 248
108th CONGRESS
  1st Session
                                S. 1375

                          [Report No. 108-124]

  To provide for the reauthorization of programs administered by the 
         Small Business Administration, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 8, 2003

 Ms. Snowe (for herself and Mr. Kerry) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

                            August 26, 2003

    Reported under authority of the order of the Senate of July 29 
     (legislative day, July 21), 2003, by Ms. Snowe with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
  To provide for the reauthorization of programs administered by 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 
Administration 50th Anniversary Reauthorization Act of 2003''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Effective date.
                      TITLE I--GENERAL PROVISIONS

               Subtitle A--Administration Accountability

Sec. 101. Document retention and investigations.
Sec. 102. Management of the Small Business Administration.
                       Subtitle B--Authorizations

Sec. 111. Program authorization levels.
Sec. 112. Additional reauthorizations.
                     TITLE II--FINANCIAL ASSISTANCE

                Subtitle A--7(a) Loan Guarantee Program

Sec. 201. National Preferred Lenders Pilot Program.
Sec. 202. Extension of program participation fees.
Sec. 203. Loans sold in secondary market.
Sec. 204. Clarification of eligibility for veterans.
Sec. 205. Enhancement of low documentation loan program.
Sec. 206. Increased loan amounts for exporters.
                     Subtitle B--Microloan Program

Sec. 211. Microloan program improvements.
                      Subtitle C--Lender Oversight

Sec. 221. Examination and review fees.
Sec. 222. Enforcement authority for Small Business Lending Companies 
                            and non-federally regulated SBA lenders.
Sec. 223. Definitions for Small Business Lending Companies and non-
                            federally regulated SBA lenders.
              Subtitle D--Disaster Assistance Loan Program

Sec. 231. Conforming amendment for disaster assistance loan program.
Sec. 232. Disaster relief for small business concerns damaged by 
                            drought.
Sec. 233. Disaster mitigation pilot program.
                      Subtitle E--504 Loan Program

Sec. 241. Extension of user fees.
Sec. 242. Amortized loan loss reserve fund.
Sec. 243. Alternative loss reserve for certain premier certified 
                            lenders.
Sec. 244. Debenture size.
Sec. 245. Job creation or retention standards.
Sec. 246. Simplified applications.
Sec. 247. Child care lending pilot program.
Sec. 248. Definition of rural area.
                    Subtitle F--Surety Bond Program

Sec. 251. Clarification of maximum surety bond guarantee.
Sec. 252. Authorization of Preferred Surety Bond Guarantee Program.
                       Subtitle G--Miscellaneous

Sec. 261. Coordination of SBA loans.
Sec. 262. Leasing options for 7(a) and 504 borrowers.
Sec. 263. Calculation of financing limitation for small business 
                            investment companies.
Sec. 264. Establishing alternative size standard.
Sec. 265. Pilot program for guarantees on pools of non-SBA loans.
                Subtitle H--New Markets Venture Capital

Sec. 271. Time frame for raising private capital.
Sec. 272. Definition of low-income geographic area.
         Subtitle I--Small Business Investment Company Program

Sec. 281. Investment of excess funds.
Sec. 282. Maximum prioritized payment rate.
Sec. 283. Improved distribution requirements.
     Subtitle J--Small Business Intermediary Lending Pilot Program

Sec. 291. Short title.
Sec. 292. Findings.
Sec. 293. Small Business Intermediary Lending Pilot Program.
            TITLE III--ENTREPRENEURIAL DEVELOPMENT PROGRAMS

           Subtitle A--Office of Entrepreneurial Development

Sec. 301. Service Corps of Retired Executives.
Sec. 302. Small Business Development Center Program.
Sec. 303. PRIME reauthorization and transfer to the Small Business Act.
         Subtitle B--Women's Small Business Ownership Programs

Sec. 311. Office of Women's Business Ownership.
Sec. 312. Women's Business Center Program.
Sec. 313. National Women's Business Council.
Sec. 314. Interagency Committee on Women's Business Enterprise.
Sec. 315. Preserving the independence of the National Women's Business 
                            Council.
             Subtitle C--Office of Native American Affairs

Sec. 321. Short title.
Sec. 322. Native American Small Business Development Program.
Sec. 323. Pilot programs.
          Subtitle D--Office of Veterans Business Development

Sec. 331. Advisory Committee on Veterans Business Affairs.
Sec. 332. Outreach grants for veterans.
Sec. 333. Authorization of appropriations.
           TITLE IV--SMALL BUSINESS PROCUREMENT OPPORTUNITIES

Sec. 401. Contract consolidation.
Sec. 402. Agency accountability.
Sec. 403. Small business participation in prime contracting.
Sec. 404. Small business participation in subcontracting.
Sec. 405. Evaluating subcontract participation in awarding contracts.
Sec. 406. Direct payments to subcontractors.
Sec. 407. Women-owned small business industry study.
Sec. 408. <DELETED>A</DELETED>HUBZone authorizations.
Sec. 409. Definition of <DELETED>HUBzone</DELETED> HUBZone; treatment 
                            of certain former military installation 
                            lands as <DELETED>HUBzones</DELETED> 
                            HUBZones.
Sec. 410. Definition of <DELETED>HUBzone</DELETED> HUBZone small 
                            business concern.
Sec. 411. Acquisition regulations.
                         TITLE V--MISCELLANEOUS

Sec. 501. Minority Small Business and Capital Ownership Development 
                            Program.
Sec. 502. Extension of <DELETED>program</DELETED> authority for 
                            technology assistance programs.
Sec. 503. <DELETED>R</DELETED>BusinessLINC report to Congress.

SEC. 2. EFFECTIVE DATE.

    (a) In General.--This Act and the amendments made by this Act shall 
take effect on October 1, 2003.
    (b) Rulemaking Authority.--
            (1) Proposed regulations.--Except as otherwise specifically 
        provided in this Act, not later than 180 days after the date of 
        enactment of this Act, the Administrator of the Small Business 
        Administration (referred to in this Act as the 
        ``Administrator'' and the ``Administration'', respectively) 
        shall publish proposed regulations to carry out the provisions 
        of this Act and the amendments made by this Act.
            (2) Final regulations.--Except as otherwise specifically 
        provided in this Act, not later than 300 days after the date of 
        enactment of this Act, the Administrator shall issue final 
        regulations to carry out the provisions of this Act and the 
        amendments made by this Act.

                      TITLE I--GENERAL PROVISIONS

               Subtitle A--Administration Accountability

SEC. 101. 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 <DELETED>Administration</DELETED> 
        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. 102. 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 Operating Officer of the 
        Administration.''.

                       Subtitle B--Authorizations

SEC. 111. PROGRAM AUTHORIZATION LEVELS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended--
            (1) in subsection (a)(1), by striking ``certification'' 
        each place that term appears and inserting ``accreditation'';
            (2) by striking subsections (c) through (h) and inserting 
        the following:
    ``(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 2003.
            ``(2) $15,000,000 for fiscal year 2004.
            ``(3) $15,000,000 for fiscal year 2005.
            ``(4) $15,000,000 for fiscal year 2006.'';
            (3) by redesignating subsection (i) as subsection (d); and
            (4) by adding at the end the following:
    ``(e) Fiscal Year 2004.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2004:
                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                            ``(i) $70,000,000 in technical assistance 
                        grants, as provided in section 7(m); and
                            ``(ii) $100,000,000 in direct loans, as 
                        provided in section 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $21,550,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                            ``(i) $16,000,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $5,000,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) of this Act and section 504 of 
                        the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                            ``(i) $4,000,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $3,000,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administration is authorized to enter into 
                guarantees not to exceed $6,000,000,000, of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administration is authorized to make 
                grants or enter into cooperative agreements for a total 
                amount of $7,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to 
                the Administration for fiscal year 2004 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 2004--
                            ``(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.
    ``(f) 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 $22,300,000,000 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) $5,250,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) of this Act and section 504 of 
                        the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                            ``(i) $4,250,000,000 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.
    ``(g) 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 $23,050,000,000 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) $5,500,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) of this Act and section 504 of 
                        the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section 7(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                            ``(i) $4,500,000,000 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. 112. 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) Paul D. Coverdell Drug-Free Workplace Program.--Section 
27(g)(1) of the Small Business Act (15 U.S.C. 654(g)(1)) is amended by 
striking ``2001 through 2003'' and inserting ``2004 through 2006''.
    (c) 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) $125,000,000 for fiscal year 2004;
                            ``(II) $130,000,000 for fiscal year 2005; 
                        and
                            ``(III) $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 
                downsizing 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.''.

                     TITLE II--FINANCIAL ASSISTANCE

                Subtitle A--7(a) Loan Guarantee Program

SEC. 201. NATIONAL PREFERRED LENDERS PILOT PROGRAM.

    Section 7(a)(2) of the Small Business Act (15 U.S.C. 636(a)(2)(C)) 
is amended by adding at the end the following:
                    ``(E) National preferred lenders pilot program.--
                            ``(i) Establishment.--There is established 
                        the National Preferred Lenders Pilot Program, a 
                        3-year pilot program in which a participant in 
                        the Preferred Lenders Program may operate as a 
                        preferred lender in any State if such lender 
                        meets the criteria established by the 
                        Administration.
                            ``(ii) Eligibility criteria.--For purposes 
                        of clause (i), criteria established by the 
                        Administration shall include--
                                    ``(I) demonstrated proficiency in 
                                the Preferred Lenders Program for not 
                                less than 3 years;
                                    ``(II) annual loan approvals of a 
                                minimum number of 7(a) Preferred 
                                Lenders Program loans, excluding SBA 
                                Express loans, as determined by the 
                                Administration;
                                    ``(III) operation by the lender in 
                                not less than 5 States or 10 Small 
                                Business Administration districts;
                                    ``(IV) satisfactory centralized 
                                approval, loan servicing, and loan 
                                liquidation functions and processes; 
                                and
                                    ``(V) consideration of any comments 
                                and recommendations that may be 
                                received from any District Director or 
                                Regional Administrator relating to the 
                                performance of the applicant.
                            ``(iii) Terms and conditions.--Applicants 
                        shall be approved under the following terms and 
                        conditions:
                                    ``(I) Term.--Each participant 
                                approved under this subparagraph shall 
                                be eligible to make loans for up to 1 
                                year under the program established 
                                under this subparagraph.
                                    ``(II) Renewal.--At the expiration 
                                of the term described in subclause (I), 
                                the authority of a participant to make 
                                loans under this subparagraph may be 
                                renewed based on a review of 
                                performance during the initial term.
                                    ``(III) Effect of failure.--Failure 
                                to meet the criteria under this 
                                subparagraph shall not effect the 
                                eligibility of a participant to 
                                continue as a preferred lender in 
                                States or districts in which it is in 
                                good standing.''.

SEC. 202. EXTENSION OF PROGRAM PARTICIPATION FEES.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended--
            (1) in paragraph (12) by striking ``(b)'' and inserting the 
        following:
            ``(B)'';
            (2) in paragraph (18)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking ``2 
                        percent'' and inserting ``1 percent''; and
                            (ii) in clause (ii), by striking ``3 
                        percent'' and inserting ``2.5 percent''; and
                    (B) by striking subparagraph (C); and
            (3) in paragraph (23)(A), by striking ``0.5 percent'' and 
        all that follows through ``equal to''.

SEC. 203. LOANS SOLD IN SECONDARY MARKET.

    Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) is 
amended by adding at the end the following:
    ``(6) Trust certificates issued pursuant to this subsection may be 
comprised of a pool of loans, guaranteed by the Administration, with 
varying interest rates. The interest rate paid by such certificates 
shall be equal to the weighted average of the interest rates of the 
loans in the pool. The Administration shall prescribe the maximum 
amount of variation in the loan characteristics in order to enhance the 
marketability of the pool.''.

SEC. 204. CLARIFICATION OF ELIGIBILITY FOR VETERANS.

    Section 7(a)(8) of the Small Business Act (15 U.S.C. 636(a)(8)) is 
amended to read as follows:
            ``(8) The Administration may make loans under this 
        subsection to--
                    ``(A) small business concerns owned and controlled 
                by veterans (as defined in section 101(2) of title 38, 
                United States Code);
                    ``(B) small business concerns owned and controlled 
                by disabled veterans (as defined in section 4211(3) of 
                title 38, United States Code); and
                    ``(C) small business concerns owned and controlled 
                by members of Reserve components of the Armed Forces 
                (as defined in section 101(c)(6) of title 10, United 
                States Code).''.

SEC. 205. ENHANCEMENT OF LOW DOCUMENTATION LOAN PROGRAM.

    Section 7(a)(25)(C) of the Small Business Act (15 U.S.C. 
636(a)(25)(C)) is amended by striking ``$100,000'' and inserting 
``$250,000''.

SEC. 206. INCREASED LOAN AMOUNTS FOR EXPORTERS.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A), by inserting before the 
                semicolon at the end the following: ``and paragraph 
                (14)''; and
                    (B) in subparagraph (B), by striking ``$1,250,000'' 
                and inserting ``$1,300,000''; and
            (2) in paragraph (14), by adding at the end the following:
            ``(D) The total amount of financings under this paragraph 
        that are outstanding and committed (by participation or 
        otherwise) to the borrower from the business loan and 
        investment fund established under this Act may not exceed 
        $1,300,000 and the gross loan amount under this paragraph may 
        not exceed $2,600,000.''.

                     Subtitle B--Microloan Program

SEC. 211. MICROLOAN PROGRAM IMPROVEMENTS.

    (a) Intermediary Eligibility Requirements.--Section 7(m)(2) of the 
Small Business Act (15 U.S.C. 636(m)(2)) is amended--
            (1) in subparagraph (A), by striking ``in paragraph (10); 
        and'' and inserting ``of the term `intermediary' under 
        paragraph (11);''; and
            (2) in subparagraph (B)--
                    (A) by striking ``(B) has at least'' and inserting 
                the following:
                    ``(B) has--
                            ``(i) at least''; and
                    (B) by striking the period at the end and inserting 
                the following: ``; or
                            ``(ii) a full-time employee who has not 
                        less than 3 years experience making microloans 
                        to startup, newly established, or growing small 
                        business concerns; and
                    ``(C) has at least 1 year experience providing, as 
                an integral part of its microloan program, intensive 
                marketing, management, and technical assistance to its 
                borrowers.''.
    (b) Conforming Change in Average Smaller Loan Size.--Section 
7(m)(3)(F)(iii) of the Small Business Act (15 U.S.C. 636(m)(3)(F)(iii)) 
is amended by striking ``$7,500'' and inserting ``$10,000''.
    (c) Limitation on Third Party Technical Assistance.--Section 
7(m)(4)(E)(ii) of the Small Business Act (15 U.S.C. 636(m)(4)(E)(ii)) 
is amended--
            (1) by striking ``Technical assistance'' and inserting 
        ``Third party technical assistance''; and
            (2) by striking ``25 percent'' and inserting ``30 
        percent''.
    (d) Loan Terms.--Section 7(m)(1)(B)(i) of the Small Business Act 
(15 U.S.C. 636(m)(1)(B)(i)) is amended by striking ``short-term''.
    (e) Report on Transferred Amounts.--Section 7(m)(9)(B) of the Small 
Business Act (15 U.S.C. 636(m)(9)(B)) is amended--
            (1) by striking ``The Administration'' and inserting the 
        following:
                            ``(i) In general.--The Administration'';
            (2) by striking the period after ``financing''; and
            (3) by adding at the end the following:
                            ``(ii) Report.--The Administration shall 
                        report, in its annual budget request and 
                        performance plan to Congress, on the 
                        performance by the Administration of the 
                        requirements of clause (i).''.
    (f) Accurate Subsidy Model.--Section 7(m) of the Small Business Act 
(15 U.S.C. 636(m)) is amended by adding at the end the following:
            ``(14) Improved subsidy model.--The Administrator shall 
        develop a subsidy model for the microloan program under this 
        subsection, to be used in the fiscal year 2005 budget, that is 
        more accurate than the subsidy model in effect on the day 
        before the date of enactment of this paragraph.''.
    (g) Increased Flexibility for Providing Technical Assistance to 
Potential Borrowers.--Section 7(m)(4)(E)(i) of the Small Business Act 
(15 U.S.C. 636(m)(4)(E)(i) is amended by striking ``25 percent'' and 
inserting ``30 percent''.

                      Subtitle C--Lender Oversight

SEC. 221. EXAMINATION AND REVIEW FEES.

    Section 5(b) of the Small Business Act (15 U.S.C. 634(b)) is 
amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``(b) In the performance'' and inserting the following:
    ``(b) Authority of Administrator.--In the performance'';
            (2) in paragraph (12), by striking ``and'' at the end;
            (3) in paragraph (13), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(14) require lenders participating in the program 
        authorized by section 7(a), including Small Business Lending 
        Companies, to pay reasonable examination and review fees, which 
        shall be--
                    ``(A) deposited in the account for salaries and 
                expenses of the Administration; and
                    ``(B) made available only for the costs of 
                examinations, reviews, and other lender oversight 
                activities concerning lenders participating in the 
                program authorized by section 7(a).''.

SEC. 222. ENFORCEMENT AUTHORITY FOR SMALL BUSINESS LENDING COMPANIES 
              AND NON-FEDERALLY REGULATED SBA LENDERS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 36 as section 37; and
            (2) by inserting after section 35 the following new 
        section:

 ``sec. 36. enforcement authority for small business lending companies 
                and non-federally regulated sba lenders

    ``(a) Defined Term.--In this section the term `management official' 
means an officer, director, general partner, manager, employee, agent, 
or other participant in the management or conduct of the affairs of a 
Small Business Lending Company or non-federally regulated SBA lender 
under section 7(a).
    ``(b) Authorization.--
            ``(1) Small business lending companies.--The Administration 
        is authorized to--
                    ``(A) supervise the safety and soundness of Small 
                Business Lending Companies;
                    ``(B) set capital standards for, regulate, examine, 
                and enforce laws relating to Small Business Lending 
                Companies; and
                    ``(C) prescribe regulations governing the 
                operations, oversight, and enforcement of Small 
                Business Lending Companies, in accordance with the 
                purposes of this Act.
            ``(2) Non-federally regulated sba lenders.--The 
        Administration is authorized to--
                    ``(A) supervise the safety and soundness of non-
                federally regulated SBA lenders;
                    ``(B) regulate, examine, and enforce laws relating 
                to lending by non-federally regulated SBA lenders under 
                section 7(a); and
                    ``(C) prescribe regulations governing the 
                operations, oversight, and enforcement of non-federally 
                regulated SBA lenders, in accordance with the purposes 
                of this Act.
    ``(c) Capital Directives.--The Administration may--
            ``(1) deem the failure of a Small Business Lending Company 
        to maintain capital at or above the minimum capital level 
established by the Administration as an unsafe and unsound practice; 
and
            ``(2) in addition to, or in lieu of, any other action 
        authorized by law, issue a directive to a Small Business 
        Lending Company that fails to return or maintain capital at or 
        above its required level, as established by the Administration.
    ``(d) Forfeiture of Authority for Noncompliance.--
            ``(1) In general.--Subject to the provisions of subsection 
        (g), if any Small Business Lending Company violates any of the 
        provisions of this Act, or any related regulation, such company 
        shall forfeit all of the rights, privileges, and franchises 
        under this Act.
            ``(2) Adjudication.--A company under paragraph (1) shall 
        not forfeit its rights, privileges, and franchises under this 
        Act, unless a court of the United States, with jurisdiction 
        over the judicial district in which the principal place of 
        business of such company is located, determines, in a suit 
        brought by, or on behalf of, the Administrator, that such 
        company violated this Act, or regulations promulgated pursuant 
        to this Act.
    ``(e) Revocation or Suspension of Authority.--
            ``(1) In general.--Subject to the provisions of subsection 
        (g), the Administration may revoke or suspend the authority of 
        a participating lender to make, service, or liquidate business 
        loans under section 7(a) if the participating lender--
                    ``(A) knowingly makes false statements in any 
                written statement required under this Act or any 
                regulation issued under this Act;
                    ``(B) fails to state, in any written statement 
                required under this Act or any regulation issued under 
                this Act, a material fact necessary in order to make 
                the statement not misleading in the light of the 
                circumstances under which the statement was made;
                    ``(C) willfully or repeatedly violates--
                            ``(i) any provision of this Act;
                            ``(ii) any rule or regulation issued under 
                        this Act; or
                            ``(iii) any condition imposed by the 
                        Administration with any application, request, 
                        or agreement; or
                    ``(D) violates any cease and desist order issued by 
                the Administration under this section.
            ``(2) Length of suspension.--The suspension under paragraph 
        (1) shall remain in full force and effect until the 
        Administration issues a written notice of termination.
            ``(3) Notification.--If the lending authority of a lender 
        is revoked under paragraph (1), the lender shall send 
        notification, not later than 30 days after such revocation, to 
        all existing borrowers that such authority has been revoked and 
        that a new servicer has been appointed to service their loans. 
        If the lender fails to provide such notification before the 
        deadline, the <DELETED>a</DELETED>Administration shall provide 
        such notification to borrowers.
            ``(4) Delegation.--The Administration may delegate the 
        authority to suspend a participating lender's authority to make 
        loans under section 7(a), but shall not delegate the authority 
        to revoke a participating lender's authority to make such 
        loans.
    ``(f) Cease and Desist Orders.--If a participating lender or 
management official has violated, or is about to violate any provision 
of this Act, or any related regulation, the Administration, subject to 
the provisions of subsection (g), may--
            ``(1) order the participating lender or management official 
        to--
                    ``(A) cease and desist from such violation; and
                    ``(B) take, or refrain from, such action as the 
                Administration deems necessary to ensure compliance 
                with the Act and related regulations; and
            ``(2) suspend the authority of such participating lender 
        pending full compliance with all orders issued under paragraph 
        (1).
    ``(g) Process for Revocation or Suspension of Authority or Cease 
and Desist Orders.--
            ``(1) Notice.--Before revoking or suspending the authority 
        of a participating lender pursuant to subsection (e) or issuing 
        a cease and desist order pursuant to subsection (f), the 
        Administration shall--
                    ``(A) provide notice to the participating lender 
                that such action is contemplated; and
                    ``(B) provide the participating lender with an 
                opportunity to show cause why such action should not be 
                taken.
            ``(2) Contents.--A notice under paragraph (1) shall 
        contain--
                    ``(A) a statement of the matters of fact and law 
                asserted by the Administration;
                    ``(B) a description of the legal authority and 
                jurisdiction under which a hearing is to be held; and
                    ``(C) the time and place of the hearing that will 
                be held before the Administration.
            ``(3) Hearing.--
                    ``(A) In general.--A hearing under this subsection 
                shall take place before the Office of Hearings and 
                Appeals of the Administration.
                    ``(B) Subpoena.--The Administration may require by 
                subpoena--
                            ``(i) the attendance and testimony of 
                        witnesses; and
                            ``(ii) the production of all books, papers, 
                        e-mails, faxes, and documents relating to the 
                        hearing under this paragraph.
                    ``(C) Enforcement of subpoena.--If a party disobeys 
                a subpoena issued under subparagraph (B), the 
                Administration, or any party to a proceeding before the 
                Administration, may invoke the aid of any court of the 
                United States to require--
                            ``(i) the attendance and testimony of 
                        witnesses; and
                            ``(ii) the production of books, papers, e-
                        mails, faxes, and documents.
                    ``(D) Witness fees.--Witnesses summoned before the 
                Administration shall be paid, by the party at whose 
                instance they were called, the same fees and mileage 
                that are paid witnesses in the courts of the United 
                States.
            ``(4) Issuance of order.--
                    ``(A) In general.--If the Administration, after a 
                hearing, or a waiver thereof, determines on the record 
                that an order revoking or suspending the authority of a 
                participating lender under section 7(a) or a cease and 
                desist order should be issued, the Administration shall 
                promptly issue such order to the participating lender 
                and any other person involved.
                    ``(B) Contents.--The order issued under 
                subparagraph (A) shall contain--
                            ``(i) a statement of the findings of the 
                        Administration;
                            ``(ii) the reasons therefore; and
                            ``(iii) the effective date of the order.
                    ``(C) Effective date.--
                            ``(i) Cease and desist order.--A cease and 
                        desist order issued under this paragraph shall 
                        become effective on the date specified therein.
                            ``(ii) Revocation or suspension.--An order 
                        revoking or suspending the authority of a 
                        participating lender under section 7(a) shall 
                        be final and conclusive 30 days after the date 
                        of issuance of such order unless the 
                        participating lender files an appeal under 
                        paragraph (5).
            ``(5) Appeal.--
                    ``(A) Appeal by right.--Not later than 30 days 
                after an order is issued under paragraph (4), a 
                participating lender may appeal such order by filing a 
                petition requesting that the Administration's order be 
                set aside or modified with the clerk of the United 
                States district court for the judicial district in 
                which such participating lender has its principal place 
                of business.
                    ``(B) Leave of court.--After the expiration of the 
                period described in subparagraph (A), a participating 
                lender may file a petition of appeal only by leave of 
                court and upon a showing of reasonable grounds for 
                failure to timely file such petition.
                    ``(C) Delivery of petition.--Upon receiving a 
                petition under this paragraph, the clerk of the court 
                shall immediately deliver a copy of the petition to the 
                Administration, which shall certify and file in the 
                court a transcript of the record upon which the order 
                complained of was entered.
                    ``(D) Amendment of petition.--If the Administration 
                amends or sets aside its order, in whole or in part, 
                before the record is filed under subparagraph (C), the 
                petitioner may amend the petition within such time as 
                the court may determine, on notice to the 
                Administration.
                    ``(E) Effect of petition.--The filing of a petition 
                for review shall not affect the operation of the order 
                of the Administration, but the district court may 
                restrain or suspend, in whole or in part, the operation 
                of the order pending the final hearing and 
                determination of the petition.
                    ``(F) Authority of court.--
                            ``(i) In general.--Except as provided under 
                        clause (ii), the district court may affirm, 
                        modify, or set aside any order of the 
                        Administration issued under this subsection.
                            ``(ii) Limitation.--The district court 
                        shall not consider an objection to an order of 
                        the Administration unless such objection was 
                        presented to the Administration or there were 
                        reasonable grounds for failure to do so.
                    ``(G) Additional evidence.--
                            ``(i) In general.--If the district court 
                        determines that the just and proper disposition 
                        of the case requires the taking of additional 
                        evidence, the court may take additional 
                        evidence and findings of fact, or may order the 
                        Administration to reopen the hearing for the 
                        taking of such evidence, in such manner and 
                        upon such terms and conditions as the court 
                        determines to be proper.
                            ``(ii) Modification of findings.--The 
                        Administration may modify its findings as to 
                        the facts, or make new findings, by reason of 
                        the additional evidence so taken, and it shall 
                        file its modified or new findings and the 
                        amendments, if any, of its order, with the 
                        record of such additional evidence.
            ``(6) Enforcement of order.--
                    ``(A) In general.--If any participating lender or 
                other person against which an order is issued under 
                this section fails to obey the order, the 
                Administration may file an application with the United 
                States district court within the judicial district 
                where the participating lender has its principal place 
                of business, for the enforcement of the order by filing 
                a transcript of the record upon which the disobeyed 
                order was entered.
                    ``(B) Notice.--Upon the receipt of the application 
                filed under subparagraph (A), the court shall notify 
                the participating lender or other person of such 
                enforcement action.
                    ``(C) Procedure.--The evidence to be considered, 
                the procedure to be followed, and the jurisdiction of 
                the court shall be the same as is provided in paragraph 
                (5) for applications to set aside or modify orders.
    ``(h) Removal or Suspension of Management Officials.--
            ``(1) Removal of management officials.--
                    ``(A) Notice of removal.--The Administrator may 
                serve upon any management official a written notice of 
                its intention to remove that management official if, in 
                the opinion of the Administrator such management 
                official--
                            ``(i) has willfully and knowingly committed 
                        any substantial violation of--
                                    ``(I) this Act;
                                    ``(II) any regulation issued under 
                                this Act;
                                    ``(III) a cease-and-desist order 
                                which has become final; or
                                    ``(IV) any agreement by the 
                                management official or the 
                                participating lender; or
                            ``(ii) has willfully and knowingly 
                        committed or engaged in any act, omission, or 
                        practice which constitutes a substantial breach 
                        of a fiduciary duty of that person as a 
                        management official if the violation or breach 
                        of fiduciary duty involves personal dishonesty 
                        on the part of such management official.
                    ``(B) Contents of notice.--A notice provided under 
                subparagraph (A) shall contain--
                            ``(i) a statement of the facts constituting 
                        the grounds for the removal of the management 
                        official; and
                            ``(ii) the time and place at which a 
                        hearing will be held to determine if the 
                        management official should be removed from 
                        office.
                    ``(C) Hearings.--
                            ``(i) Timing.--A hearing described in 
                        subparagraph (B) shall take place not earlier 
                        than 30 days nor later than 60 days after the 
                        date on which notice is provided under 
                        subparagraph (A), unless an earlier or later 
                        date is set by the Administrator at the request 
                        of--
                                    ``(I) the management official, for 
                                good cause shown; or
                                    ``(II) the Attorney General of the 
                                United States.
                            ``(ii) Consent.--If the management official 
                        fails to appear, in person or by a duly 
                        authorized representative, at a hearing under 
                        this paragraph, that management official shall 
                        be deemed to have consented to the issuance of 
                        an order of removal under subparagraph (A).
                    ``(D) Issuance of order of removal.--
                            ``(i) In general.--The Administrator may 
                        issue an order of removal from office if--
                                    ``(I) consent is deemed under 
                                subparagraph (C)(ii); or
                                    ``(II) the Administrator finds, 
                                upon the record of the hearing 
                                described in this subsection, that any 
                                of the grounds specified in the notice 
                                of removal has been established.
                            ``(ii) Effectiveness.--An order under 
                        clause (i) shall--
                                    ``(I) become effective on the 
                                expiration of the date which is 30 days 
                                after the date that notice is provided 
                                to the participating lender and the 
                                management official concerned (except 
                                in the case of an order issued upon 
                                consent as described in <DELETED>clause</DELETED> 
                                subparagraph (C)(ii), which shall 
                                become effective at the time specified 
                                in such order); and
                                    ``(II) remain effective and 
                                enforceable, except to the extent it is 
                                stayed, modified, terminated, or set 
                                aside by action of the Administrator or 
                                a reviewing court, in accordance with 
                                this section.
            ``(2) Authority to suspend or prohibit participation.--
                    ``(A) In general.--The Administrator may--
                            ``(i) if necessary to protect the Small 
                        Business Lending Company or interests of the 
                        Administration, suspend from office any 
                        management official described in paragraph (1), 
                        or temporarily prohibit such official from 
                        further participating in the management or 
                        conduct of the affairs of the Small Business 
                        Lending Company; and
                            ``(ii) if necessary to protect the 
                        interests of the Administration, suspend from 
                        office any management official described in 
                        paragraph (1) or prohibit from further 
                        participation a non-federally regulated SBA 
                        lender or any management official described in 
                        paragraph (1) in any activities related to the 
                        making, servicing, review, approval, or 
                        liquidation of any loan made under section 
                        7(a).
                    ``(B) Effectiveness.--A suspension or prohibition 
                under subparagraph (A)--
                            ``(i) shall become effective upon service 
                        of notice under paragraph (1); and
                            ``(ii) unless stayed by a court in 
                        proceedings under subparagraph (C), shall 
                        remain in effect--
                                    ``(I) pending the completion of the 
                                administrative proceedings pursuant to 
                                a notice under paragraph (1); and
                                    ``(II) until the Administrator 
                                dismisses the charges specified in the 
                                notice, or, if an order of removal or 
                                prohibition is issued against the 
                                management official, until the 
                                effective date of any such order.
                    ``(C) Judicial review.--Not later than 10 days 
                after any management official has been suspended from 
                office or prohibited from participation in the 
                management or conduct of the affairs of a participating 
                lender, the management official may apply for a stay of 
                the suspension or prohibition, pending the completion 
                of the administrative proceedings under this 
                subsection, to--
                            ``(i) the United States district court for 
                        the judicial district in which the home office 
                        of the participating lender is located; or
                            ``(ii) the United States District Court for 
                        the District of Columbia.
            ``(3) Authority to suspend on criminal charges.--
                    ``(A) In general.--If a management official is 
                charged, in any information, indictment, or complaint 
                authorized by a United States attorney or a State 
                prosecutor, with the commission of a felony involving 
                dishonesty or breach of trust, or has been convicted of 
                any felony, the Administrator may suspend that 
                management official from office or prohibit that 
                management official from further participation in the 
                management or conduct of the affairs of the 
                participating lender.
                    ``(B) Effectiveness.--A suspension or prohibition 
                under paragraph (A) shall remain in effect until the 
                subject information, indictment, or complaint is 
                finally disposed of, or until terminated by the 
                Administrator.
                    ``(C) Authority upon conviction.--
                            ``(i) In general.--If a judgment of 
                        conviction with respect to an offense described 
                        in paragraph (A) is entered against a 
                        management official and is no longer subject to 
                        appellate review, the Administrator may issue 
                        an order removing that management official from 
                        office.
                            ``(ii) Notice.--A copy of the order issued 
                        under clause (i) shall be delivered to the 
                        management official and the participating 
                        lender for which such official was employed.
                            ``(iii) Effective date.--The order of 
                        removal under clause (i) shall take effect upon 
                        the delivery of a copy of the order to the 
                        participating lender.
                    ``(D) Authority upon dismissal or other 
                disposition.--A finding of not guilty or other 
                disposition of charges described in subparagraph (A) 
                shall not preclude the Administrator from initiating 
                proceedings to suspend or remove the management 
                official from office, or to temporarily prohibit the 
                management official from participation in the 
                management or conduct of the affairs of any 
                participating lender.
            ``(4) Procedural provisions; judicial review.--
                    ``(A) Hearing venue.--Any hearing under this 
                subsection shall be--
                            ``(i) held in the Federal judicial district 
                        or in the territory in which the principal 
                        office of the participating lender is located, 
                        unless the party afforded the hearing consents 
                        to another place; and
                            ``(ii) conducted in accordance with the 
                        provisions of chapter 5 of title 5, United 
                        States Code.
                    ``(B) Issuance of orders.--After a hearing under 
                this subsection, and not later than 90 days after the 
                Administrator has notified the parties that the case 
                has been submitted for final decision, the 
                Administrator shall--
                            ``(i) render a decision in the matter, 
                        which shall include findings of fact upon which 
                        its decision is predicated; and
                            ``(ii) issue and serve upon each party to 
                        the proceeding an order or orders consistent 
                        with the provisions of this section.
                    ``(C) Authority to modify orders.--The 
                Administrator may modify, terminate, or set aside any 
                order issued under this section--
                            ``(i) at any time, upon such notice, and in 
                        such manner as the Administrator may prescribe, 
                        until a petition for review is timely filed 
                        with a United States district court, in 
                        accordance with subparagraph (D)(ii) and a 
                        record of the proceeding has been filed in 
                        accordance with subparagraph (D)(iii); and
                            ``(ii) after the filing of the record under 
                        subparagraph (D)(iii), with permission of the 
                        court.
                    ``(D) Judicial review.--
                            ``(i) In general.--Judicial review of an 
                        order issued under this section shall be 
                        limited to the provisions of this subsection.
                            ``(ii) Petition for judicial review.--Any 
                        party to a hearing under this section may 
                        obtain a review of any order issued pursuant to 
                        subparagraph (B) (other than an order issued 
                        with the consent of the management official 
                        concerned or an order issued under subsection 
                        (d)), by filing, not later than 30 days after 
                        the date of service of such order, in the 
                        United States district court for the judicial 
                        district in which the principal office of the 
                        licensee is located or in the United States 
                        District Court for the District of Columbia, a 
                        written petition requested that the order be 
                        modified, terminated, or set aside.
                            ``(iii) Notice to administration.--The 
                        clerk of the court receiving a petition under 
                        <DELETED>subparagraph</DELETED> clause (ii) 
                        shall transmit a copy of the petition to the 
                        Administrator, who shall submit to the court 
                        the record of the proceeding, in accordance 
                        with section 2112 of title 28, United States 
                        Code.
                            ``(iv) Jurisdiction.--
                                    ``(I) Exclusive.--Upon the filing 
                                of the record under clause (iii), the 
                                district court described in clause (ii) 
                                shall have exclusive jurisdiction to 
                                affirm, modify, terminate, or set 
                                aside, in whole or in part, the order 
                                of the Administrator, except as 
                                provided under paragraph 
                                (2)(B)(ii)(II).
                                    ``(II) Review.--The review of any 
                                proceeding under subclause (I) shall be 
                                in accordance with chapter 7 of title 
                                5, United States Code.
                            ``(v) Judicial review not a stay.--The 
                        commencement of proceedings for judicial review 
                        under this paragraph shall not, unless 
                        specifically ordered by the district court, 
                        operate as a stay of any order issued by the 
                        Administrator under this section.
    ``(i) Injunctions.--
            ``(1) Application.--If, in the judgment of the 
        Administrator, a participating lender or any other person has 
        engaged, or is about to engage, in any acts or practices which 
        violate any provision of this Act, any rule or regulation under 
        this Act, or any order issued under this Act, the Administrator 
may apply to the proper district court of the United States, or a 
United States court of any place subject to the jurisdiction of the 
United States, for an order to--
                    ``(A) enjoin such acts or practices; or
                    ``(B) enforce compliance with such provision, rule, 
                regulation, or order.
            ``(2) Jurisdiction.--A court under paragraph (1) shall have 
        jurisdiction over any action under paragraph (1).
            ``(3) Issuance.--Upon a showing by the Administrator that a 
        participating lender or other person has engaged, or is about 
        to engage, in any act or practice described in paragraph (1), 
        the court shall issue, without bond--
                    ``(A) a permanent or temporary injunction;
                    ``(B) a restraining order; or
                    ``(C) any other appropriate order.
    ``(j) Appointment of Receivers.--In any injunction proceeding under 
subsection (i), the district court may--
            ``(1) seize the assets of 1 or more Small Business Lending 
        Companies; and
            ``(2) appoint the Administration, or another receiver, to 
        hold or administer the assets seized under paragraph (1) under 
        the direction of the court.
    ``(k) Possession of Assets.--
            ``(1) Small business lending companies.--If a Small 
        Business Lending Company is insolvent, out of compliance with 
        capital requirements under this section, or otherwise operating 
        in an unsafe or unsound condition, the Administration may take 
        possession of--
                    ``(A) the portfolio of loans guaranteed by the 
                Administration and sell such loans to a third party 
                through a receiver appointed under subsection (j)(2); 
                and
                    ``(B) servicing activities of loans that are 
                guaranteed by the Administration and sell such 
                servicing rights to a third party through a receiver 
                appointed under subsection (j)(2).
            ``(2) Non-federally regulated sba lenders.--If a non-
        federally regulated SBA lender is insolvent or otherwise 
        operating in an unsafe and unsound condition, the 
        Administration may take possession of--
                    ``(A) the portfolio of loans guaranteed by the 
                Administration and sell such loans to a third party; 
                and
                    ``(B) servicing activities of loans that are 
                guaranteed by the Administration and sell such 
                servicing rights to a third party.
    ``(l) Penalties and Forfeitures.--
            ``(1) In general.--Except as provided under paragraph (3), 
        a Small Business Lending Company or a non-federally regulated 
        SBA lender that violates any regulation or written directive 
        issued by the Administrator regarding the filing of any regular 
        or special report shall pay to the United States a civil 
        penalty of not more than $5,000 for every day after the due 
        date in which the lender fails to file such report, unless such 
        failure is due to reasonable cause and not willful neglect.
            ``(2) Recovery of civil penalty.--The civil penalty 
        provided for in this section shall accrue to the United States 
        and may be recovered in a civil action brought by the 
        Administration.
            ``(3) Exemption.--The Administrator may, by regulation, 
        order, or upon the application of an interested party, at any 
        time before a report is due under paragraph (1) and after 
        notice and opportunity for hearing, exempt, in whole or in 
        part, any Small Business Lending Company from the provisions of 
        paragraph (1), upon such terms and conditions and for such 
        period of time as the Administrator determines to be 
        appropriate, if the Administrator finds that such action is 
        consistent with the public interest or the protection of the 
        Administration.
            ``(4) Alternative requirements.--If an exemption is granted 
        under paragraph (3), the Administrator may, for the purposes of 
        this section, make any alternative requirements appropriate to 
        the situation.''.

SEC. 223. DEFINITIONS FOR SMALL BUSINESS LENDING COMPANIES AND NON-
              FEDERALLY REGULATED SBA LENDERS.

    Section 3 of the Small Business Act (15 U.S.C. 632) is amended--
            (1) in subsection (l), by striking ``Act--
            ``(1) the term'' and inserting ``Act, the term''; and
            (2) by adding at the end the following:
    ``(r) Small Business Lending Company.--In this Act, the term `Small 
Business Lending Company' means a non-depository financial institution 
that is licensed, supervised, examined, and regulated by the 
Administration to only make loans under section 7.
    ``(s) Non-Federally Regulated SBA Lender.--In this Act, the term 
`non-federally regulated SBA lender' means a financial institution, 
other than a Small Business Lending Company, that makes loans under 
section 7 and is not regulated by--
            ``(1) the Farm Credit Administration;
            ``(2) the Federal Financial Institution Examination 
        Council;
            ``(3) the Board of Governors of the Federal Reserve System;
            ``(4) the Office of the Comptroller of the Currency;
            ``(5) the Federal Deposit Insurance Corporation;
            ``(6) the Office of Thrift Supervision; or
            ``(7) the National Credit Union Administration.''.

              Subtitle D--Disaster Assistance Loan Program

SEC. 231. CONFORMING AMENDMENT FOR DISASTER ASSISTANCE LOAN PROGRAM.

    Section 7(c)(6) of the Small Business Act (15 U.S.C. 636(c)(6)) is 
amended--
            (1) by striking ``$500,000'' each place it appears and 
        inserting ``$1,500,000''; and
            (2) by inserting ``commencing on or after April 1, 1993,'' 
        before ``unless an applicant''.

SEC. 232. DISASTER RELIEF FOR SMALL BUSINESS CONCERNS DAMAGED BY 
              DROUGHT.

    (a) Drought Disaster Authority.--
            (1) Definition of disaster.--Section 3(k) of the Small 
        Business Act (15 U.S.C. 632(k)) is amended--
                    (A) by inserting ``(1)'' after ``(k)''; and
                    (B) by adding at the end the following:
    ``(2) For purposes of section 7(b)(2), the term `disaster' 
includes--
            ``(A) drought; and
            ``(B) below average water levels in the Great Lakes, or on 
        any body of water in the United States that supports commerce 
        by small business concerns.''.
            (2) Drought disaster relief authority.--Section 7(b)(2) of 
        the Small Business Act (15 U.S.C. 636(b)(2)) is amended--
                    (A) by inserting ``(including drought), with 
                respect to both farm-related and nonfarm-related small 
                business concerns,'' before ``if the Administration''; 
                and
                    (B) in subparagraph (B), by striking ``the 
                Consolidated Farmers Home Administration Act of 1961 (7 
                U.S.C. 1961)'' and inserting the following: ``section 
                321 of the Consolidated Farm and Rural Development Act 
                (7 U.S.C. 1961), in which case, assistance under this 
                paragraph may be provided to farm-related and nonfarm-
                related small business concerns, subject to the other 
                applicable requirements of this paragraph''.
    (b) Limitation on Loans.--From funds otherwise appropriated 
pursuant to section 20 for loans under section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)), not more than $9,000,000 may be used 
during fiscal year 2004 to provide drought disaster loans to nonfarm-
related small business concerns.
    (c) Prompt Response to Disaster Requests.--Section 7(b)(2)(D) of 
the Small Business Act (15 U.S.C. 636(b)(2)(D)) is amended by striking 
``Upon receipt of such certification, the Administration may'' and 
inserting ``Not later than 30 days after the date of receipt of such 
certification by a Governor of a State, the Administration shall 
respond in writing to that Governor on its determination and the 
reasons therefore, and may''.
    (d) Rulemaking.--Not later than 45 days after the date of enactment 
of this section, the Administrator shall promulgate final rules to 
carry out this section and the amendments made by this section.

SEC. 233. DISASTER MITIGATION PILOT PROGRAM.

    Section 7(b)(1)(C) of the Small Business Act (15 U.S.C. 
636(b)(1)(C)) is amended by striking ``2000 through 2004'' and 
inserting ``2003 through 2006''.

                      Subtitle E--504 Loan Program

SEC. 241. EXTENSION OF USER FEES.

    Section 503(f) of the Small Business Investment Act of 1958 (15 
U.S.C. 697(f)) is amended by striking ``October 1, 2003'' and inserting 
``October 1, 2006''.

SEC. 242. AMORTIZED LOAN LOSS RESERVE FUND.

    Paragraph (6) of section 508(c) of the Small Business Investment 
Act of 1958 (15 U.S.C. 697e(c)) is amended--
            (1) by striking ``The Administration'' and inserting the 
        following:
                    ``(A) In general.--The Administration''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Temporary reduction based on outstanding 
                balance.--Notwithstanding subparagraph (A), the 
                Administration shall allow the certified development 
                company to withdraw from the loss reserve such amounts 
                as are in excess of 1 percent of the aggregate 
                outstanding balances of debentures to which such loss 
                reserve relates. The preceding sentence shall not apply 
                with respect to any debenture before 100 percent of the 
                contribution described in paragraph (4) with respect to 
                such debenture has been made.''.

SEC. 243. ALTERNATIVE LOSS RESERVE FOR CERTAIN PREMIER CERTIFIED 
              LENDERS.

    (a) In General.--Subsection (c) of section 508 of the Small 
Business Investment Act of 1958 (15 U.S.C. 697e) is amended by adding 
at the end the following:
            ``(7) Alternative loss reserve.--
                    ``(A) Election.--With respect to any eligible 
                calendar quarter, any qualified high loss reserve PCL 
                may elect to have the requirements of this paragraph 
                apply in lieu of the requirements of paragraphs (2) and 
                (4) for such quarter.
                    ``(B) Contributions.--
                            ``(i) Ordinary rules inapplicable.--Except 
                        as provided under clause (ii) and paragraph 
                        (5), a qualified high loss reserve PCL that 
                        makes the election described in subparagraph 
                        (A) with respect to a calendar quarter shall 
                        not be required to make contributions to its 
                        loss reserve during such quarter.
                            ``(ii) Based on loss.--A qualified high 
                        loss reserve PCL that makes the election 
                        described in subparagraph (A) with respect to 
                        any calendar quarter shall, before the last day 
                        of such quarter, make such contributions to its 
                        loss reserve as are necessary to ensure that 
                        the amount of the loss reserve of the PCL is--
                                    ``(I) not less than $100,000; and
                                    ``(II) sufficient, as determined by 
                                a qualified independent auditor, for 
                                the PCL to meet its obligations to 
                                protect the Federal Government from 
                                risk of loss.
                            ``(iii) Certification.--Before the end of 
                        any calendar quarter for which an election is 
                        in effect under subparagraph (A), the head of 
the PCL shall submit to the Administrator a certification that the loss 
reserve of the PCL is sufficient to meet such PCL's obligation to 
protect the Federal Government from risk of loss. Such certification 
shall be in such form and submitted in such manner as the Administrator 
may require and shall be signed by the head of such PCL and the auditor 
making the determination under clause (ii)(II).
                    ``(C) Disbursements.--
                            ``(i) Ordinary rule inapplicable.--
                        Paragraph (6) shall not apply with respect to 
                        any qualified high loss reserve PCL for any 
                        calendar quarter for which an election is in 
                        effect under subparagraph (A).
                            ``(ii) Excess funds.--At the end of each 
                        calendar quarter for which an election is in 
                        effect under subparagraph (A), the 
                        Administration shall allow the qualified high 
                        loss reserve PCL to withdraw from its loss 
                        reserve the excess of--
                                    ``(I) the amount of the loss 
                                reserve, over
                                    ``(II) the greater of $100,000 or 
                                the amount which is determined under 
                                subparagraph (B)(ii) to be sufficient 
                                to meet the PCL's obligation to protect 
                                the Federal Government from risk of 
                                loss.
                    ``(D) Recontribution.--If the requirements of this 
                paragraph apply to a qualified high loss reserve PCL 
                for any calendar quarter and cease to apply to such PCL 
                for any subsequent calendar quarter, such PCL shall 
                make a contribution to its loss reserve in such amount 
                as the Administrator may determine provided that such 
                amount does not exceed the amount which would result in 
                the total amount in the loss reserve being equal to the 
                amount which would have been in such loss reserve had 
                this paragraph never applied to such PCL. The 
                Administrator may require that such payment be made as 
                a single payment or as a series of payments.
                    ``(E) Risk management.--If a qualified high loss 
                reserve PCL fails to meet the requirement of 
                subparagraph (F)(iii) during any period for which an 
                election is in effect under subparagraph (A) and such 
                failure continues for 180 days, the requirements of 
                paragraphs (2), (4), and (6) shall apply to such PCL as 
                of the end of such 180-day period and such PCL shall 
                make the contribution to its loss reserve described in 
                subparagraph (D). The Administrator may waive the 
                requirements of this subparagraph.
                    ``(F) Qualified high loss reserve pcl.--The term 
                `qualified high loss reserve PCL' means, with respect 
                to any calendar year, any premier certified lender 
                designated by the Administrator as a qualified high 
                loss reserve PCL for such year. The Administrator shall 
                not designate a company under the preceding sentence 
                unless the Administrator determines that--
                            ``(i) the amount of the loss reserve of the 
                        company is not less than $100,000;
                            ``(ii) the company has established and is 
                        utilizing an appropriate and effective process 
                        for analyzing the risk of loss associated with 
                        its portfolio of PCLP loans and for grading 
                        each PCLP loan made by the company on the basis 
                        of the risk of loss associated with such loan; 
                        and
                            ``(iii) the company meets or exceeds 4 or 
                        more of the specified risk management 
                        benchmarks as of the most recent assessment by 
                        the Administration or the Administration has 
                        issued a waiver with respect to the requirement 
                        of this clause.
                    ``(G) Specified risk management benchmarks.--For 
                purposes of this paragraph, the term `specified risk 
                management benchmarks' means the following rates, as 
                determined by the Administrator:
                            ``(i) Currency rate.
                            ``(ii) Delinquency rate.
                            ``(iii) Default rate.
                            ``(iv) Liquidation rate.
                            ``(v) Loss rate.
                    ``(H) Qualified independent auditor.--For purposes 
                of this paragraph, the term `qualified independent 
                auditor' means any licensed auditor who--
                            ``(i) is compensated by the qualified high 
                        loss reserve PCL;
                            ``(ii) is independent of such PCL; and
                            ``(iii) has been approved by the 
                        Administrator during the preceding year.
                    ``(I) PCLP loan.--For purposes of this paragraph, 
                the term `PCLP loan' means any loan guaranteed under 
                this section.
                    ``(J) Eligible calendar quarter.--For purposes of 
                this paragraph, the term `eligible calendar quarter' 
                means--
                            ``(i) the first calendar quarter that 
                        begins after the end of the 90-day period 
                        beginning with the date of the enactment of 
                        this paragraph; and
                            ``(ii) the <DELETED>7</DELETED> 11 
                        succeeding calendar quarters.
                    ``(K) Calendar quarter.--For purposes of this 
                paragraph, the term `calendar quarter' means--
                            ``(i) the period which begins on January 1 
                        and ends on March 31 of each year;
                            ``(ii) the period which begins on April 1 
                        and ends on June 30 of each year;
                            ``(iii) the period which begins on July 1 
                        and ends on September 30 of each year; and
                            ``(iv) the period which begins on October 1 
                        and ends on December 31 of each year.
                    ``(L) Regulations.--Not later than 45 days after 
                the date of the enactment of this paragraph, the 
                Administrator shall publish in the Federal Register and 
                transmit to Congress regulations to carry out this 
                paragraph. Such regulations shall include provisions 
                relating to--
                            ``(i) the approval of auditors under 
                        subparagraph (H); and
                            ``(ii) the designation of qualified high 
                        loss reserve PCLs under subparagraph (F), 
                        including the determination of whether a 
                        process for analyzing risk of loss is 
                        appropriate and effective for purposes of 
                        subparagraph (F)(ii).''.
    (b) Increased Reimbursement for Losses Related to Debentures Issued 
During Election Period.--Subparagraph (C) of section 508(b)(2) of the 
Small Business Investment Act of 1958 (15 U.S.C. 697e(b)(2)) is amended 
by inserting ``(15 percent in the case of any such loss attributable to 
a debenture issued by the company during any period for which an 
election is in effect under subsection (c)(7) for such company)'' 
before ``; and''.
    (c) Conforming Amendments.--
            (1) Subparagraph (D) of section 508(b)(2) of the Small 
        Business Investment Act of 1958 (15 U.S.C. 697e(b)(2)) is 
        amended by striking ``subsection (c)(2)'' and inserting 
        ``subsection (c)''.
            (2) Paragraph (5) of section 508(c) of the Small Business 
        Investment Act of 1958 (15 U.S.C. 697e(c)) is amended by 
        striking ``10 percent''.
    (d) Study and Report.--
            (1) In general.--The Administrator shall enter into a 
        contract with a Federal agency experienced in community 
        development lending and financial regulation or with a member 
        of the Federal Financial Institutions Examinations Council to 
        study and prepare a report regarding--
                    (A) the extent to which statutory requirements have 
                caused over capitalization in the loss reserves 
                maintained by certified development companies 
                participating in the Premier Certified Lenders Program 
                established under section 508 of the Small Business 
                Investment Act of 1958 (15 U.S.C. 697e); and
                    (B) alternatives for establishing and maintaining 
                loss reserves that are sufficient to protect the 
                Federal Government from the risk of loss associated 
                with loans guaranteed under such Program.
            (2) Transmission of report.--The report described in 
        paragraph (1) shall be transmitted to the Committee on Small 
        Business of the House of Representatives and the Committee on 
        Small Business and Entrepreneurship of the Senate not later 
        than 180 days after the date of the enactment of this Act.
            (3) Limitation.--The amount of the contract described in 
        paragraph (1) shall not exceed $75,000.

SEC. 244. DEBENTURE SIZE.

    Section 502(2) of the Small Business Investment Act of 1958 (15 
U.S.C. 696) is amended to read as follows:<DELETED>--
        <DELETED>    (1) by striking ``The Administration may,'' and 
        inserting the following:</DELETED>
<DELETED>    ``(a) In General.--The Administration may,'';</DELETED>
        <DELETED>    (2) by striking ``: Provided, however, That the 
        foregoing powers'' and inserting the following:</DELETED>
<DELETED>    ``(b) Conditions.--The authority under subsection (a)''; 
and</DELETED>
        <DELETED>    (3) in subsection (b) (as designated by paragraph 
        (2)), by amending paragraph (2) to read as follows:</DELETED>
            ``(2) Maximum amount.--Loans made by the Administration 
        under this section shall be limited to--
                    ``(A) $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);
                    ``(B) $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
                    <DELETED>``(C) $2,000,000 for each small business 
                concern if the loan proceeds will be directed toward 
                manufacturing projects.''.
                </DELETED>    ``(C) $4,000,000 for each small business 
                concern if the loan proceeds will be directed toward 
                manufacturing projects.''.

SEC. 245. JOB CREATION OR RETENTION STANDARDS.

    Section 501 of the Small Business Investment Act of 1958 (15 U.S.C. 
695) is amended by striking the undesignated paragraph at the end and 
inserting the following:
    ``(e) Job Creation or Retention.--
        <DELETED>    ``(1) In general.--A project being funded by the 
        debenture is deemed to satisfy the job creation or retention 
        requirement under subsection (d)(1) if the project creates or 
        retains 1 job opportunity for every $50,000 guaranteed by the 
        Administration.</DELETED>
            ``(1) In general.--A project being funded by the debenture 
        is deemed to satisfy the job creation or retention requirement 
        under subsection (d)(1) if the project creates or retains--
                    ``(A) 1 job opportunity for every $50,000 
                guaranteed by the Administration; or
                    ``(B) in the case of a manufacturing project, 1 job 
                opportunity for every $100,000 guaranteed by the 
                Administration.
            ``(2) Temporary job creation waiver.--
                    ``(A) In general.--If a development company fails 
                to meet the job creation and retention requirements 
                under this section, the company may apply for a 
                temporary waiver from the Administration. Not later 
                than 30 days after the request for such waiver, the 
                Administration shall respond to the request and may 
                temporarily waive the requirement if the development 
                company shows reasonable cause for its failure to meet 
the job creation and retention requirements under this section and 
demonstrates how it intends to attain such requirements in the future.
                    ``(B) Aggregation of goals and objectives.--If a 
                project meets the economic development objectives or 
                public policy goals under paragraphs (2) and (3) of 
                subsection (d), the project does not need to meet the 
                individual job creation or retention requirements for 
                that particular project if the outstanding portfolio of 
                the development company meets or exceeds the job 
                creation or retention criteria under subsection 
                (d)(1).''.

SEC. 246. SIMPLIFIED APPLICATIONS.

    (a) Loans of $400,000 or Less.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator shall develop a 
        shorter, more concise, and simplified application form for loan 
        guarantees involving not more than $400,000 authorized under 
        section 504 of the Small Business Investment Act of 1958 (15 
        U.S.C. 697a).
            (2) Availability to certified development companies.--The 
        form developed under paragraph (1) shall be made available to 
        certified development companies not later than 180 days after 
        the date of enactment of this Act.
    (b) All Other Loans.--
            (1) In general.--Not later than 270 days after the date of 
        enactment of this Act, the Administrator shall develop a 
        shorter, more concise, and simplified application form for all 
        loan guarantees authorized under section 504 of the Small 
        Business Investment Act of 1958 (15 U.S.C. 697a), including 
        those described in subsection (a).
            (2) Availability to certified development companies.--The 
        form developed under paragraph (1) shall be made available to 
        certified development companies not later than 270 days after 
        the date of enactment of this Act.

SEC. 247. CHILD CARE LENDING PILOT PROGRAM.

    (a) Loans Authorized.--Section 502 of the Small Business Investment 
Act of 1958 (15 U.S.C. 696) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``The Administration'' and 
                inserting the following:
    ``(a) Authorization.--The Administration'';
                    (B) by striking ``and such loans'' and inserting 
                ``. Such loans'';
                    (C) by striking ``: Provided, however, That the 
                foregoing powers shall be subject to the following 
                restrictions and limitations:'' and inserting a period; 
                and
                    (D) by adding at the end the following:
    ``(b) Restrictions and Limitations.--The authority under subsection 
(a) shall be subject to the following restrictions and limitations:''; 
and
            (2) in paragraph (1)--
                    (A) by inserting after ``Use of proceeds.--'' the 
                following:
                    ``(A) In general.--''; and
                    (B) by adding at the end the following:
                    ``(B) Loans to small, nonprofit child care 
                businesses.--
                            ``(i) In general.--Notwithstanding 
                        subsection (a)(1), the proceeds of any loan 
                        described in subsection (a) may be used by the 
                        certified development company to assist small, 
                        nonprofit child care businesses, provided 
                        that--
                                    ``(I) the loan will be used for a 
                                sound business purpose that has been 
                                approved by the Administration;
                                    ``(II) each such business receiving 
                                financial assistance meets all of the 
                                same eligibility requirements 
                                applicable to for-profit businesses 
                                under this title, except for status as 
                                a for-profit business;
                                    ``(III) 1 or more individuals has 
                                personally guaranteed the loan;
                                    ``(IV) the small, non-profit child 
                                care business has clear and singular 
                                title to the collateral for the loan; 
                                and
                                    ``(V) the small, non-profit child 
                                care business has sufficient cash flow 
                                from its operations to meet its 
                                obligations on the loan and its normal 
                                and reasonable operating expenses.
                            ``(ii) Limitation on volume.--Not more than 
                        7 percent of the total number of loans 
                        guaranteed in any fiscal year under this title 
                        may be awarded under the pilot program.
                            ``(iii) Defined term.--For purposes of this 
                        subparagraph, the term `small, non-profit child 
                        care business' means an establishment that--
                                    ``(I) is organized in accordance 
                                with section 501(c)(3) of the Internal 
                                Revenue Code of 1986;
                                    ``(II) is primarily engaged in 
                                providing child care for infants, 
                                toddlers, pre-school, or pre-
                                kindergarten children (or any 
                                combination thereof), may provide care 
                                for older children when they are not in 
                                school, and may offer pre-kindergarten 
                                educational programs;
                                    ``(III) including its affiliates, 
                                has tangible net worth that does not 
                                exceed $7,000,000, and has average net 
                                income (excluding any carryover losses) 
                                for the preceding 2 completed fiscal 
                                years that does not exceed $2,500,000; 
                                and
                                    ``(IV) is licensed as a child care 
                                provider by the District of 
Columbia, the insular area, or the State in which it is located.''.
                            ``(iv) Sunset provision.--This subparagraph 
                        shall remain in effect until September 30, 
                        2006, and shall apply to all loans authorized 
                        under this subparagraph that are applied for, 
                        approved, or disbursed during the period 
                        beginning on the date of enactment of the Small 
                        Business Administration 50th Anniversary 
                        Reauthorization Act of 2003 and ending on 
                        September 30, 2006.''.
    (b) Reports.--
            (1) Small business administration.--
                    (A) In general.--Not later than 6 months after the 
                date of enactment of this Act, and every 6 months 
                thereafter until September 30, 2006, the Administrator 
                shall submit a report on the implementation of the 
                program under subsection (a) to--
                            (i) the Committee on Small Business and 
                        Entrepreneurship of the Senate; and
                            (ii) the Committee on Small Business of the 
                        House of Representatives.
                    (B) Contents.--The report under subparagraph (A) 
                shall contain--
                            (i) the date on which the program is 
                        implemented;
                            (ii) the date on which the rules are issued 
                        pursuant to subsection (c); and
                            (iii) the number and dollar amount of loans 
                        under the program applied for, approved, and 
                        disbursed during the previous 6 months--
                                    <DELETED>``</DELETED>(I) with 
                                respect to nonprofit child care 
                                business; and
                                    <DELETED>``</DELETED>(II) with 
                                respect to for profit child care 
                                business.
            (2) General accounting office.--
                    (A) In general.--Not later than March 31, 2006, the 
                Comptroller General of the United States shall submit a 
                report on the child care small business loans 
                authorized by section 502(b)(1)(B) of the Small 
                Business Investment Act of 1958, as added by this Act, 
                to--
                            (i) the Committee on Small Business and 
                        Entrepreneurship of the Senate; and
                            (ii) the Committee on Small Business of the 
                        House of Representatives.
                    (B) Contents.--The report under subparagraph (A) 
                shall contain information gathered during the first 2 
                years of the loan program, including--
                            (i) an evaluation of the timeliness of the 
                        implementation of the loan program;
                            (ii) a description of the effectiveness and 
                        ease with which certified development 
                        companies, lenders, and small businesses have 
                        participated in the loan program;
                            (iii) a description and assessment of how 
                        the loan program was marketed;
                            (iv) by location (State, insular area, and 
                        District of Columbia) and in total, the number 
                        of child care small businesses, categorized by 
                        status as a for-profit or non-profit business, 
                        that--
                                    (I) applied for loans under the 
                                program (and whether it was a new or 
                                expanding child care provider);
                                    (II) were approved for loans under 
                                the program; and
                                    (III) received loan disbursements 
                                under the program (and whether they are 
                                a new or expanding child care 
                                provider); and
                            (v) with respect to the businesses 
                        described under clause (iv)(III)--
                                    (I) the number of such businesses 
                                in each State, insular area, and 
                                District of Columbia, as of the year of 
                                enactment of this Act;
                                    (II) the total amount loaned to 
                                such businesses under the program;
                                    (III) the total number of loans to 
                                such businesses under the program;
                                    (IV) the average loan amount and 
                                term;
                                    (V) the currency rate, 
                                delinquencies, defaults, and losses of 
                                the loans;
                                    (VI) the number and percent of 
                                children served who receive subsidized 
                                assistance; and
                                    (VII) the number and percent of 
                                children served who are low income.
                    (C) Access to information.--
                            (i) In general.--The Administration shall 
                        collect and maintain such information as may be 
                        necessary to carry out this paragraph from 
                        certified development centers and child care 
                        providers, and such centers and providers shall 
                        comply with a request for information from the 
                        Administration for that purpose.
                            (ii) Provision of information to gao.--The 
                        Administration shall provide information 
                        collected under this subparagraph to the 
                        Comptroller General of the United States for 
                        purposes of the report required by this 
                        paragraph.
    (c) Rulemaking Authority.--Not later than 120 days after the date 
of enactment of this Act, the Administrator shall issue final rules to 
carry out the loan program authorized by section 502(b)(1)(B) of the 
Small Business Investment Act of 1958, as added by this Act.

SEC. 248. DEFINITION OF RURAL AREA.

    Section 501 of the Small Business Investment Act of 1958 (15 U.S.C. 
695) is amended by adding at the end the following:
    ``(f) Definition of Rural Area.--For purposes of this title, the 
term `rural area' means any area other than--
            ``(1) a city or town with a population of not less than 
        50,000 inhabitants; or
            ``(2) the urbanized area adjacent to a city or town under 
        subparagraph (A).''.

                    Subtitle F--Surety Bond Program

SEC. 251. CLARIFICATION OF MAXIMUM SURETY BOND GUARANTEE.

    (a) In General.--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''.

SEC. 252. AUTHORIZATION OF PREFERRED SURETY BOND GUARANTEE PROGRAM.

    Section 411(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 694b(a)) is amended by adding at the end the following: ``This 
paragraph shall remain in effect through September 30, 2006.''.

                       Subtitle G--Miscellaneous

SEC. 261. COORDINATION OF SBA LOANS.

    Section 7(a)(3) of the Small Business Act (15 U.S.C. 636(a)(3)) is 
amended--
            (1) by inserting ``Total amount of 
        loans.--'' before ``No loan''; and
            (2) by amending subparagraph (A) to read as follows:
                    ``(A) if the total amount outstanding and committed 
                (by participation or otherwise) to the borrower under 
                section 7(a) would exceed $1,000,000 (or if the gross 
                loan amount would exceed $2,000,000), except as 
                provided in subparagraph (B), plus an amount not to 
                exceed the maximum amount of a development company 
                financing under title V of the Small Business 
                Investment Act of 1958 (15 U.S.C. 695 et seq.), and the 
                Administration shall report to Congress in its annual 
                budget request and performance plan on the number of 
                small business concerns that have financings under both 
                section 7(a) and under title V of the Small Business 
                Investment Act of 1958, and the total amount and 
                general performance of such 
                financings<DELETED>.</DELETED>;''.

SEC. 262. LEASING OPTIONS FOR 7(A) AND 504 BORROWERS.

    (a) 7(a) Loans.--Section 7(a)(28) of the Small Business Act (15 
U.S.C. 636(a)(28)) is amended to read as follows:
            ``(28) Leasing.--In addition to such other lease 
        arrangements as may be authorized by the Administration, a 
        borrower under this section may lease, permanently or for a 
        short term, to 1 or more tenants, not more than 40 percent of 
        any property purchased or constructed as part of a project 
        financed under this section if the borrower permanently 
        occupies and uses not less than 60 percent of the total 
        business space of the property.''.
    (b) 504 Loans.--Subsection (b)(5) of section 502 of the Small 
Business Investment Act of 1958 (15 U.S.C. 696), as redesignated by 
this Act, is amended to read as follows:
            ``(5) Leasing.--In addition to such other lease 
        arrangements as may be authorized by the Administration, a 
        borrower under this title may lease, permanently or for a short 
        term, to 1 or more tenants, not more than 40 percent of any 
        property purchased or constructed as part of a project financed 
        under this title if the borrower permanently occupies and uses 
        not less than 60 percent of the total business space of the 
        property.''.

SEC. 263. CALCULATION OF FINANCING LIMITATION FOR SMALL BUSINESS 
              INVESTMENT COMPANIES.

    Section 306 of the Small Business Investment Act of 1958 (15 U.S.C. 
686) is amended by inserting after subsection (a) the following:
    ``(b) In calculating the 20 percent limitation under subsection (a) 
or any guarantee required of a small business investment company by the 
Administration, only 50 percent of the value of any loans issued under 
either section 7(a) of the Small Business Act or title V of this Act, 
which are received by the enterprise in which the small business 
investment company has issued commitments, shall be taken into 
consideration, but for any 1 such enterprise, a small business 
investment company may not simultaneously take advantage of this 
discounted calculation for loans under both section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)) and title V of this Act.''.

SEC. 264. ESTABLISHING ALTERNATIVE SIZE STANDARD.

    Section 3(a)(3) of the Small Business Act (15 U.S.C. 632(a)(3) is 
amended--
            (1) by striking ``When establishing'' and inserting the 
        following: ``Establishment of Size Standards.--
            ``(<DELETED>1</DELETED>A) In general.--When establishing''; 
        and
            (2) by adding at the end the following:
            ``(<DELETED>2</DELETED>B) Alternative size standard.--The 
        Administrator shall establish an alternative size standard 
        pursuant to paragraph (2), which--
                    ``(<DELETED>A</DELETED>i) shall be applicable to 
                loan applicants under section 7(a) of this Act or title 
                V of the Small Business Investment Act of 1958 (15 
                U.S.C. 695 et seq.); and
                    ``(<DELETED>B</DELETED>ii) shall utilize the 
                maximum net worth and maximum net income of the 
                prospective borrower as an alternative to the use of 
                industry standards.''.

SEC. 265. PILOT PROGRAM FOR GUARANTEES ON POOLS OF NON-SBA LOANS.

    Title IV of the Small Business Investment Act of 1958 (15 U.S.C. 
692 et seq.) is amended by adding at the end the following:

                ``Part C--Credit Enhancement Guarantees

    ``Sec. 420. (a) The Administration is authorized, upon such terms 
and conditions as it may prescribe, in order to encourage lenders to 
increase the availability of small business financing by improving such 
lenders' access to reasonable sources of funding, to provide a credit 
enhancement guarantee, or commitment to guarantee, of the timely 
payment of a portion of the principal and interest on securities issued 
and managed by not less than 2 and not more than 5 qualified entities 
authorized and approved by the Administration.
    ``(b)(1) The Administration may provide its credit enhancement 
guarantees in respect of securities that represent interests in, or 
other obligations issued by, a trust, pool, or other entity whose 
assets (other than the Administration's credit enhancement guarantee 
and credit enhancements provided by other parties) consist of loans 
made to small business concerns.
    ``(2) All loans under paragraph (1) shall be originated, purchased, 
or assembled and managed consistent with requirements prescribed by the 
Administration in connection with this credit enhancement guarantee 
program.
    ``(3) The Administration shall prescribe requirements to be 
observed by the issuers and managers of the securities covered by 
credit enhancement guarantees to ensure the safety and soundness of the 
credit enhancement guarantee program.
    ``(4) The Administration may authorize affiliates of lenders 
designated as Preferred Lenders (as defined in the Small Business Act) 
to become issuers and managers of securities covered by credit 
enhancement guarantees if not more than 50 percent of the voting and 
economic ownership interests of any such issuer or manager are owned, 
directly or indirectly, by any single Preferred Lender or any person 
directly or indirectly controlling such Preferred Lender.
    ``(c) The full faith and credit of the United States is pledged to 
the payment of all amounts the Administration may be required to pay as 
a result of credit enhancement guarantees under this section.
    ``(d)(1) The Administration may issue an amount of credit 
enhancement guarantees in any fiscal year not exceeding the amount of 
the business loan and development company debenture guarantee authority 
available to the Administration for such year under this Act and the 
Small Business Act.
    ``(2) The Administration shall set the percentage and priority of 
each credit enhancement guarantee on issued securities so that the 
amount of the Administration's anticipated net loss (if any) as a 
result of such guarantee is fully reserved in a credit subsidy account 
funded in whole or in part by fees collected by the Administration.
    ``(3) The Administration shall charge and collect a fee from the 
issuer based on the Administration's guaranteed amount of issued 
securities, but the amount of such fee may not exceed the estimated 
credit subsidy cost of the Administration's credit enhancement 
guarantee.
    ``(e) Reporting and Analysis.--
            ``(1) Reporting.--During the development and implementation 
        of the pilot program, the Administrator shall provide a report 
        on the status of the pilot program under this section to 
        Congress in each annual budget request and performance plan.
            ``(2) Analysis and report.--Not later than December 30, 
        2005, the Comptroller General shall--
                    ``(A) conduct an analysis of the pilot program 
                under this section; and
                    ``(B) submit a report to Congress that contains a 
                summary of the analysis conducted under subparagraph 
                (A) and a description of any effects, not attributable 
                to other causes, of the pilot program on the lending 
                programs under section 7(a) of the Small Business Act 
                (15 U.S.C. 636(a)) and title V of this Act.
            ``(3) Implementation.--
                    ``(A) Report.--After completing operational 
                guidelines to carry out the pilot program under this 
                section, the Administration shall submit a report, 
                which describes the method in which the pilot program 
                will be implemented, to--
                            ``(i) the Committee on Small Business and 
                        Entrepreneurship of the Senate; and
                            ``(ii) the Committee on Small Business of 
                        the House of Representatives.
                    ``(B) Timing.--The Administration shall not 
                implement the pilot program under this section until 
                the date that is 50 days after the report has been 
                submitted under subparagraph (A).
    ``(f) Sunset Provision.--This section shall remain in effect until 
September 30, 2006.''.

                Subtitle H--New Markets Venture Capital

SEC. 271. TIME FRAME FOR RAISING PRIVATE CAPITAL.

    Section 354(d) of the Small Business Investment Act of 1958 (15 
U.S.C. 689c(d)) is amended--
            (1) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and
            (2) by striking ``The Administrator shall'' and all that 
        follows through ``following requirements:'' and inserting the 
        following:
            ``(1) In general.--The Administrator shall give each 
        conditionally approved company 2 years to satisfy the 
        requirements under this subsection. If a conditionally approved 
        company meets these requirements before the end of such 2-year 
        period, the Administrator shall proceed to final approval 
        according to the <DELETED>following</DELETED> 
        requirements<DELETED>:</DELETED> under subsection (e).''.

SEC. 272. DEFINITION OF LOW-INCOME GEOGRAPHIC AREA.

    Section 351(3)(A)(ii)<DELETED>(II)</DELETED>(I) of the Small 
Business Investment Act of 1958 (15 U.S.C. 
689(3)(A)(ii)<DELETED>(II)</DELETED>(I)) is amended by striking 
``<DELETED>household income</DELETED> 50 percent or more'' and all that 
follows and inserting ``<DELETED>family</DELETED> the median household 
income for such tract does not exceed 80 percent of the greater of the 
statewide median <DELETED>family</DELETED> household income or 
metropolitan area median <DELETED>family</DELETED> household income.''.

         Subtitle I--Small Business Investment Company Program

SEC. 281. INVESTMENT OF EXCESS FUNDS.

    Section 308(b) of the Small Business Investment Act of 1958 (15 
U.S.C. 687(b)) is amended by striking the last sentence and inserting 
the following: ``Such companies with outstanding financings are 
authorized to invest funds not reasonably needed for their operations 
in--
            ``(1) direct obligations of, or obligations guaranteed as 
        to principal and interest by, the United States;
            ``(2) in <DELETED>savings account or</DELETED> certificates 
        of deposit maturing within 1 year <DELETED>that are issued</DELETED> 
        after issuance by any institution, whose accounts are 
        <DELETED>F</DELETED>federally insured, or in savings accounts 
        of such institution; or
            ``(3) in such other investment securities, mutual funds, or 
        instruments that solely consist of, invest in, or are supported 
        by the instruments described in paragraphs (1) and (2).''.

SEC. 282. MAXIMUM PRIORITIZED PAYMENT RATE.

    Section 303(g) of the Small Business Investment Act of 1958 (15 
U.S.C. 683(g)) is amended--
            (1) in the matter preceding paragraph (1)<DELETED>--
        </DELETED>,
                    <DELETED>(A)</DELETED> by striking ``In order'' and 
                inserting ``Guarantees of Participating Securities.--In 
                order''; and
                    <DELETED>(B) by striking ``For purposes of this 
                section,'' and all that follows through ``the extent of 
                earnings.''; and
        </DELETED>    (2) in paragraph (2), by striking ``1.38 
        percent'' and inserting ``1.7 percent''.

SEC. 283. IMPROVED DISTRIBUTION REQUIREMENTS.

    Section 303(g)(9) of the Small Business Investment Act of 1958 (15 
U.S.C. 683(g)(9)) is amended to read as follows:
            ``(9) After making any distribution pursuant to paragraph 
        (8), a company with participating securities outstanding may 
        distribute the balance of income to its investors if--
                    ``(A) there are no accumulated and unpaid 
                prioritized payments;
                    ``(B) any amounts received by the Administration 
                under this paragraph and paragraph (8) are first 
                applied as prepayment of the principal amount of the 
                outstanding participating securities or debentures of 
                the company at the time of such distribution and then 
                applied to the profit participation under paragraph 
                (11); and
                    ``(C) any distributions under this paragraph are 
                made to private investors and to the Administration in 
                the ratio of private capital to leverage as of the date 
                immediately preceding the distribution until the 
                outstanding participating securities or debentures of 
                the company have been paid in full, after which any 
                remaining distributions under this paragraph are made 
                to private investors and to the Administration in the 
                ratio provided for the distribution of profits under 
                paragraph (11).''.

     Subtitle J--Small Business Intermediary Lending Pilot Program

SEC. 291. SHORT TITLE.

    This subtitle may be cited as the ``Small Business Intermediary 
Lending Pilot Program Act of 2003''.

SEC. 292. FINDINGS.

    Congress finds the following:
            (1) Small and emerging businesses, particularly startups 
        and businesses that lack sufficient or conventional collateral, 
        continue to face barriers accessing mid-sized loans in amounts 
        between $35,000 and $200,000, with affordable terms and 
        conditions.
            (2) Consolidation in the banking industry has resulted in a 
        decrease in the number of small, locally controlled banks with 
        not more than $100,000,000 in assets and has changed the method 
        by which banks make small business credit decisions with--
                    (A) credit scoring techniques replacing 
                relationship-based lending, which often works to the 
                disadvantage of small or startup businesses that do not 
                conform with a bank's standardized credit formulas; and
                    (B) less flexible terms and conditions, which are 
                often necessary for small and emerging businesses.
            (3) In the environment described in paragraphs (1) and (2), 
        non-profit intermediary lenders, including community 
        development corporations, providing financial resources that 
        serve to supplement the small business lending and investments 
        of a bank by--
                    (A) providing riskier, up front, or subordinated 
                capital;
                    (B) offering flexible terms and underwriting 
                procedures; and
                    (C) providing technical assistance to businesses in 
                order to reduce the transaction costs and risk exposure 
                of banks.
            (4) Several Federal programs, including the Microloan 
        Program under section 7(m) of the Small Business Act (15 U.S.C. 
        636(m)) and the Intermediary Relending Program of the 
        Department of Agriculture, have demonstrated the effectiveness 
        of working through non-profit intermediaries to address the 
        needs of small business concerns that are unable to access 
        capital through conventional sources.
            (5) More than 1,000 non-profit intermediary lenders in the 
        United States are--
                    (A) successfully providing financial and technical 
                assistance to small and emerging businesses;
                    (B) working with banks and other lenders to 
                leverage additional capital for their business 
                borrowers; and
                    (C) creating employment opportunities for low 
                income individuals through their lending and business 
                development activities.

SEC. 293. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

    (a) In General.--Section 7(l) of the Small Business Act (15 U.S.C. 
636(l)) is amended to read as follows:
    ``(l) Small Business Intermediary Lending Program.--
            ``(1) Definitions.--For purposes of this subsection--
                    ``(A) the term `intermediary' means an entity that 
                seeks to borrow, or has borrowed, funds from the 
                Administration to make mid-size loans to small business 
                concerns under this subsection that is a private, 
                nonprofit entity, including--
                            ``(i) a private, nonprofit community 
                        development corporation;
                            ``(ii) a consortium of private, nonprofit 
                        organizations or nonprofit community 
                        development corporations;
                            ``(iii) a quasi-governmental economic 
                        development entity (such as a planning and 
                        development district), other than a State, 
                        county, or municipal government; and
                            ``(v) an agency of or nonprofit entity 
                        established by a Native American Tribal 
                        Government; and
                    ``(B) the term `mid-size loan' means a fixed rate 
                loan of not less than $35,000 and not more than 
                $200,000, made by an intermediary to a startup, newly 
                established, or growing small business concern.
            ``(2) Establishment.--There is established a 3-year small 
        business intermediary lending pilot program (referred to in 
        this section as the ``Program''), under which the 
        Administration may make direct loans to eligible 
        intermediaries, for the purpose of making fixed interest rate 
        mid-size loans to startup, newly established, and growing small 
        business concerns.
            ``(3) Purposes.--The purposes of the small business 
        intermediary lender pilot program are--
                    ``(A) to assist small business concerns in those 
                areas suffering from a lack of credit due to poor 
                economic conditions;
                    ``(B) to create employment opportunities for low-
                income individuals;
                    ``(C) to establish a mid-size loan program to be 
                administered by the Small Business Administration to 
                make loans to eligible intermediaries to enable such 
                intermediaries to provide small-scale loans, 
                particularly loans in amounts averaging not more than 
                $150,000, to startup, newly established, or growing 
                small business concerns for working capital or the 
                acquisition of materials, supplies, or equipment;
                    ``(D) to test the effectiveness of non-profit 
                intermediaries--
                            ``(i) as a delivery system for a mid-size 
                        loan program; and
                            ``(ii) in addressing the credit needs of 
                        small businesses and leveraging other sources 
                        of credit; and
                    ``(E) to determine the advisability and feasibility 
                of implementing a mid-size loan program nationwide.
            ``(4) Eligibility for participation.--An intermediary shall 
        be eligible to receive loans if the intermediary has at least 1 
        year of experience making loans to startup, newly established, 
        or growing small business concerns.
            ``(5) Loans to intermediaries.--
                    ``(A) Application.--Each intermediary desiring a 
                loan under this subsection shall submit an application 
                to the Administration, which describes--
                            ``(i) the type of small business concerns 
                        to be assisted;
                            ``(ii) the size and range of loans to be 
                        made;
                            ``(iii) the geographic area to be served 
                        and its economic, poverty, and unemployment 
                        characteristics;
                            ``(iv) the status of small business 
                        concerns in the area to be served and an 
                        analysis of the availability of credit; and
                            ``(v) the qualifications of the applicant 
                        to carry out the purpose of this subsection.
                    ``(B) Loan limits.--Notwithstanding subsection 
                (a)(3), no loan may be made under this subsection if 
                the total amount outstanding and committed to an 
                intermediary from the business loan and investment fund 
                established by this Act would, as a result of such 
                loan, exceed $1,000,000 during the participation of the 
                intermediary in the Program.
                    ``(C) Loan duration.--Loans made by the 
                Administration under this subsection shall be for a 
                maximum term of 20 years.
                    ``(D) Applicable interest rates.--Loans made by the 
                Administration to an intermediary under the Program 
                shall bear an annual interest rate equal to 1.00 
                percent.
                    ``(E) Fees; collateral.--The Administration may not 
                charge any fees or require collateral with respect to 
                any loan made to an intermediary under this subsection.
                    ``(F) Leverage.--Any loan to a small business 
                concern shall not exceed 75 percent of the total cost 
                of the project, with the remaining funds being 
                leveraged from other sources, including--
                            ``(i) banks or credit unions;
                            ``(ii) community development financial 
                        institutions; and
                            ``(iii) other sources with funds available 
                        to the intermediary lender.
                    ``(G) Delayed payments.--The Administration shall 
                not require the repayment of principal or interest on a 
                loan made to an intermediary under this section during 
                the first 2 years of the loan.
            ``(6) Program funding for mid-size loans.--
                    ``(A) Number of participants.--Under the Program, 
                the Administration may provide loans, on a competitive 
                basis, to not more than 20 intermediaries.
                    ``(B) Equitable distribution of intermediaries.--
                The Administration shall select and provide funding 
                under the Program to such intermediaries as will ensure 
                geographic diversity and representation of urban and 
                rural communities.
            ``(7) Report to congress.--
                    ``(A) Initial report.--Not later than 30 months 
                after the date of enactment of the Small Business 
                Administration 50th Anniversary Reauthorization Act of 
                2003, the Administration shall submit a report 
                containing an evaluation of the effectiveness of the 
                Program to--
                            ``(i) the Committee on Small Business and 
                        Entrepreneurship of the Senate; and
                            ``(ii) the Committee on Small Business of 
                        the House of Representatives.
                    ``(B) Annual report.--Not later than 12 months 
                after the date of enactment of the Small Business 
                Administration 50th Anniversary Reauthorization Act of 
                2003, and each year thereafter, the Administration 
                shall submit an annual report containing an evaluation 
                of the effectiveness of the Program to the Committees 
                described in subparagraph (A).
                    ``(C) Contents.--The reports submitted under 
                subparagraphs (A) and (B) shall include--
                            ``(i) the numbers and locations of the 
                        intermediaries receiving funds to provide mid-
                        size loans;
                            ``(ii) the amounts of each loan to an 
                        intermediary;
                            ``(iii) the numbers and amounts of mid-size 
                        loans made by intermediaries to small business 
                        concerns;
                            ``(iv) the repayment history of each 
                        intermediary;
                            ``(v) a description of the loan portfolio 
                        of each intermediary, including the extent to 
                        which it provides mid-size loans to small 
                        business concerns in rural and economically 
                        depressed areas;
                            ``(vi) an estimate of the number of low-
                        income individuals who have been employed as a 
                        direct result of the Program; and
                            ``(vii) any recommendations for legislative 
                        changes that would improve the operation of the 
                        Program.''.
    (b) Rulemaking Authority.--Not later than 180 days after the date 
of enactment of this Act, the Administrator shall issue regulations to 
carry out the amendment made by subsection (a).
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated 
        such sums as may be necessary for each of the fiscal years 2004 
        through 2006 to provide $20,000,000 in loans under section 7(l) 
        of the Small Business Act, as amended by subsection (a).
            (2) Availability.--Any amounts appropriated pursuant to 
        paragraph (1) shall remain available until expended.

            TITLE III--ENTREPRENEURIAL DEVELOPMENT PROGRAMS

           Subtitle A--Office of Entrepreneurial Development

SEC. 301. 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. 302. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.

    (a) 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''.
    (b) Privacy Requirements.--Section 21(a) of the Small Business Act 
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).''.
    (c) Conforming Amendment.--Section 20(a)(1) of the Small Business 
Act (15 U.S.C. 631 note) is amended by striking ``certification'' each 
place it appears and inserting ``accreditation''.

SEC. 303. PRIME REAUTHORIZATION AND TRANSFER TO THE SMALL BUSINESS ACT.

    (a) Program Reauthorization.--Subtitle C of title I of the Riegle 
Community Development and Regulatory Improvement Act of 1994 (15 U.S.C. 
6901 note) is amended to read as follows:

``SEC. 37. PROGRAM FOR INVESTMENT IN MICROENTREPRENEURS.

    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Administration.--The term `Administration' means the 
        Small Business Administration.
            ``(2) Administrator.--The term `Administrator' means the 
        Administrator of the Small Business Administration.
            ``(3) Capacity building services.--The term `capacity 
        building services' means services provided to an organization 
        that is, or that is in the process of becoming, a 
        microenterprise development organization or program, for the 
        purpose of enhancing its ability to provide training and 
        services to disadvantaged entrepreneurs.
            ``(4) Collaborative.--The term `collaborative' means 2 or 
        more nonprofit entities that agree to act jointly as a 
        qualified organization under this section.
            ``(5) Disadvantaged entrepreneur.--The term `disadvantaged 
        entrepreneur' means a microentrepreneur that--
                    ``(A) is a low-income person;
                    ``(B) is a very low-income person; or
                    ``(C) lacks adequate access to capital or other 
                resources essential for business success, or is 
economically disadvantaged, as determined by the Administrator.
            ``(6) Indian tribe.--The term `Indian tribe' has the same 
        meaning as in section 4(a) of the Indian Self-Determination and 
        Education Assistance Act.
            ``(7) Intermediary.--The term `intermediary' means a 
        private, nonprofit entity that seeks to serve microenterprise 
        development organizations and programs, as authorized under 
        subsection (d).
            ``(8) Low-income person.--The term `low-income person' 
        means having an income, adjusted for family size, of not more 
        than--
                    ``(A) for metropolitan areas, 80 percent of the 
                area median income; and
                    ``(B) for nonmetropolitan areas, the greater of--
                            ``(i) 80 percent of the area median income; 
                        or
                            ``(ii) 80 percent of the statewide 
                        nonmetropolitan area median income.
            ``(9) Microentrepreneur.--The term `microentrepreneur' 
        means the owner or developer of a microenterprise.
            ``(10) Microenterprise.--The term `microenterprise' means a 
        sole proprietorship, partnership, or corporation that--
                    ``(A) has fewer than 5 employees; and
                    ``(B) generally lacks access to conventional loans, 
                equity, or other banking services.
            ``(11) Microenterprise development organization or 
        program.--The term `microenterprise development organization or 
        program' means a nonprofit entity, or a program administered by 
        such an entity, including community development corporations or 
        other nonprofit development organizations and social service 
        organizations, that provides services to disadvantaged 
        entrepreneurs.
            ``(12) Training and technical assistance.--The term 
        `training and technical assistance' means services and support 
        provided to disadvantaged entrepreneurs, such as assistance for 
        the purpose of enhancing business planning, marketing, 
        management, financial management skills, and assistance for the 
        purpose of accessing financial services.
            ``(13) Very low-income person.--The term `very low-income 
        person' means having an income, adjusted for family size, of 
        not more than 150 percent of the poverty line (as defined in 
        section 673(2) of the Community Services Block Grant Act (42 
        U.S.C. 9902(2)), including any revision required by that 
        section).
    ``(b) Establishment of Program.--The Administrator shall establish 
a microenterprise technical assistance and capacity building grant 
program to provide assistance from the Administration in the form of 
grants to qualified organizations in accordance with this section.
    ``(c) Uses of Assistance.--A qualified organization shall use 
grants made under this section--
            ``(1) to provide training and technical assistance to 
        disadvantaged entrepreneurs;
            ``(2) to provide training and capacity building services to 
        microenterprise development organizations and programs and 
        groups of such organizations to assist such organizations and 
        programs in developing microenterprise training and services;
            ``(3) to aid in researching and developing the best 
        practices in the field of microenterprise and technical 
        assistance programs for disadvantaged entrepreneurs; and
            ``(4) for such other activities as the Administrator 
        determines are consistent with the purposes of this section.
    ``(d) Qualified Organizations.--For purposes of eligibility for 
assistance under this section, a qualified organization shall be--
            ``(1) a nonprofit microenterprise development organization 
        or program (or a group or collaborative thereof) that has a 
        demonstrated record of delivering microenterprise services to 
        disadvantaged entrepreneurs;
            ``(2) an intermediary;
            ``(3) a microenterprise development organization or program 
        that is accountable to a local community, working in 
        conjunction with a State or local government or Indian tribe; 
        or
            ``(4) an Indian tribe acting on its own, if the Indian 
        tribe can certify that no private organization or program 
        referred to in this subsection exists within its jurisdiction.
    ``(e) Allocation of Assistance; Subgrants.--
            ``(1) Allocation of assistance.--
                    ``(A) In general.--The Administrator shall allocate 
                assistance from the Administration under this section 
                to ensure that--
                            ``(i) activities described in subsection 
                        (c)(1) are funded using not less than 
75 percent of amounts made available for such assistance; and
                            ``(ii) activities described in subsection 
                        (c)(2) are funded using not less than 15 
                        percent of amounts made available for such 
                        assistance.
                    ``(B) Limit on individual assistance.--No single 
                person may receive more than 10 percent of the total 
                funds appropriated under this section in a single 
                fiscal year.
            ``(2) Targeted assistance.--The Administrator shall ensure 
        that not less than 50 percent of the grants made under this 
        section are used to benefit very low-income persons, including 
        those residing on Indian reservations.
            ``(3) Subgrants authorized.--
                    ``(A) In general.--A qualified organization 
                receiving assistance under this section may provide 
                grants using that assistance to qualified small and 
                emerging microenterprise organizations and programs, 
                subject to such rules and regulations as the 
                Administrator determines to be appropriate.
                    ``(B) Limit on administrative expenses.--Not more 
                than 7.5 percent of assistance received by a qualified 
                organization under this section may be used for 
                administrative expenses in connection with the making 
                of subgrants under subparagraph (A).
            ``(4) Diversity.--In making grants under this section, the 
        Administrator shall ensure that grant recipients include both 
        large and small microenterprise organizations, serving urban, 
        rural, and Indian tribal communities serving diverse 
        populations.
            ``(5) Prohibition on preferential consideration of certain 
        sba program participants.--In making grants under this section, 
        the Administrator shall ensure that any application made by a 
        qualified organization that is a participant in the program 
        established under section 7(m) of the Small Business Act does 
        not receive preferential consideration over applications from 
        other qualified organizations that are not participants in such 
        program.
    ``(f) Matching Requirements.--
            ``(1) In general.--Financial assistance under this section 
        shall be matched with funds from sources other than the Federal 
        Government on the basis of not less than 50 percent of each 
        dollar provided by the Administration.
            ``(2) Sources of matching funds.--Fees, grants, gifts, 
        funds from loan sources, and in-kind resources of a grant 
        recipient from public or private sources may be used to comply 
        with the matching requirement in paragraph (1).
            ``(3) Exception.--
                    ``(A) In general.--In the case of an applicant for 
                assistance under this section with severe constraints 
                on available sources of matching funds, the 
                Administrator may reduce or eliminate the matching 
                requirements of paragraph (1).
                    ``(B) Limitation.--Not more than 10 percent of the 
                total funds made available from the Administration in 
                any fiscal year to carry out this section may be 
                excepted from the matching requirements of paragraph 
                (1), as authorized by subparagraph (A) of this 
                paragraph.
    ``(g) Applications for Assistance.--An application for assistance 
under this section shall be submitted in such form and in accordance 
with such procedures as the Administrator shall establish.
    ``(h) Recordkeeping and Reporting.--
            ``(1) In general.--Each organization that receives 
        assistance from the Administration in accordance with this 
        section shall--
                    ``(A) submit to the Administration not less than 
                once in every 18-month period, financial statements 
                audited by an independent certified public accountant;
                    ``(B) submit an annual report to the Administration 
                on its activities; and
                    ``(C) keep such records as may be necessary to 
                disclose the manner in which any assistance under this 
                section is used.
            ``(2) Access.--The Administration shall have access upon 
        request, for the purposes of determining compliance with this 
        section, to any records of any organization that receives 
        assistance from the Administration in accordance with this 
        section.
            ``(3) Data collection.--Each organization that receives 
        assistance from the Administration in accordance with this 
        section shall collect information relating to, as applicable--
                    ``(A) the number of individuals counseled or 
                trained;
                    ``(B) the number of hours of counseling provided;
                    ``(C) the number of startup small business concerns 
                formed;
                    ``(D) the number of small business concerns 
                expanded;
                    ``(E) the number of low-income individuals 
                counseled or trained; and
                    ``(F) the number of very low-income individuals 
                counseled or trained.
    ``(i) Authorization.--There are authorized to be appropriated to 
the Administrator, to carry out the provisions of this section, to 
remain available until expended--
            ``(1) $15,000,000 for fiscal year 2004;
            ``(2) $15,000,000 for fiscal year 2005; and
            ``(3) $15,000,000 for fiscal year 2006.''.
    (b) Transfer Provisions.--
            (1) Small business act amendments.--The Small Business Act 
        (15 U.S.C. 631 et seq.) is amended by redesignating section 37, 
        as added by this Act, as section 38.
            (2) Transfer.--Section 37 of the Riegle Community 
        Development and Regulatory Improvement Act of 1994 (15 U.S.C. 
        6901 note), as so designated by subsection (a) of this section, 
        is transferred to, and inserted after, section 36 of the Small 
        Business Act, as added by this Act.
    (c) References.--All references in Federal law to the ``Program for 
Investment in Microentrepreneurs Act of 1999'' or the ``PRIME Act'' 
shall be deemed to be references to section 37 of the Small Business 
Act, as added by this section.
    (d) Rule of Construction.--Nothing in this section or the 
amendments made by this section shall affect any grant or assistance 
provided under the Program for Investment in Microentrepreneurs Act of 
1999, before the date of enactment of this Act, and any such grant or 
assistance shall be subject to the Program for Investment in 
Microentrepreneurs Act of 1999, as in effect on the day before the date 
of enactment of this Act.

         Subtitle B--Women's Small Business Ownership Programs

SEC. 311. OFFICE OF WOMEN'S BUSINESS OWNERSHIP.

    Section 29(g) of the Small Business Act (15 U.S.C. 656(g)) is 
amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B)(i), by striking ``in the 
                areas'' and all that follows through the end of 
                subclause (I), and inserting the following: ``to 
                address issues concerning operations, manufacturing, 
                technology, finance, retail and product sales, 
                international trade, and other disciplines required 
                for--
                                    ``(I) starting, operating, and 
                                growing a small business concern;''; 
                                and
                    (B) in subparagraph (C), by inserting ``, the 
                National Women's Business Council, and any association 
                of women's business centers, as defined in subsection 
                (a)'' before the period at the end; and
            (2) by adding at the end the following:
            ``(3) Programs and services for women-owned small 
        businesses.--The Assistant Administrator, in consultation with 
        the National Women's Business Council, the Interagency 
        Committee on Women's Business Enterprise, and 1 or more 
        associations of women's business centers, shall develop 
        programs and services for women-owned businesses (as defined in 
        section 408 of the Women's Business Ownership Act of 1988 (15 
        U.S.C. 631 note)) in business areas, which may include--
                    ``(A) manufacturing;
                    ``(B) technology;
                    ``(C) professional services;
                    ``(D) retail and product sales;
                    ``(E) travel and tourism;
                    ``(F) international trade; and
                    ``(G) Federal Government contract business 
                development.
            ``(4) Training.--The Administration shall provide annual 
        programmatic and financial oversight training for women's 
        business ownership representatives and district office 
        technical representatives of the Administration to enable these 
        representatives to carry out their responsibilities under this 
        section.
            ``(5) Grant program improvement.--The Administration shall 
        improve the women's business center grant proposal process and 
        the programmatic and financial oversight process by--
                    ``(A) providing notice to the public of each 
                women's business center grant announcement for an 
                initial and renewal grant, not later than 6 months 
                before awarding such grant;
                    ``(B) providing notice to grant applicants and 
                recipients of program evaluation criteria, not later 
                than 12 months before any such evaluation;
                    ``(C) reducing paperwork and reporting requirements 
                for grant applicants and recipients;
                    ``(D) standardizing the oversight and review 
                process of the Administration; and
                    ``(E) providing to each women's business center, 
                not later than 30 days after the completion of a site 
                visit at that center, a copy of site visit reports and 
                evaluation reports prepared by district office 
                technical representatives or Administration 
                officials.''.

SEC. 312. WOMEN'S BUSINESS CENTER PROGRAM.

    (a) Women's Business Center Grants Program.--Section 29 of the 
Small Business Act (15 U.S.C. 656) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (2), (3), and (4), 
                as paragraphs (3), (4), and (5), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) the term `association of women's business centers' 
        means an organization that represents not less than 30 percent 
        of the women's business centers that are participating in a 
        program under this section and whose primary purpose is to 
        represent women's business centers;''; and
            (2) by striking subsections (b) through (f) and inserting 
        the following:
    ``(b) Grants Authorized.--
            ``(1) In general.--The Administration may award initial and 
        renewal grants of not more than $150,000 per year, which shall 
        be known as `women's business center grants', to private 
        nonprofit organizations to conduct projects for the benefit of 
        small business concerns owned and controlled by women. At the 
        end of the initial 4-year grant period, and every 3 years 
        thereafter, the grant recipient may apply to renew the grant in 
        accordance with this subsection and subsection (e)(2). In the 
        event that the Administration has insufficient funds to provide 
        grants of $150,000, for each eligible women's business center, 
        available funds shall be allocated evenly to eligible centers, 
        unless any center requests a lower amount than the allocable 
        amount.
            ``(2) Cooperative agreement authority.--
                    ``(A) In general.--The Administration may enter 
                into Federal cooperative agreements with grant 
                recipients under this subsection to perform the 
                services described under paragraph (3) only to the 
                extent and in the amount provided by appropriated 
                funds.
                    ``(B) Termination.--
                            ``(i) In general.--If any grant recipient 
                        under this subsection does not fulfill its 
                        grant obligations, after advanced notification, 
                        during the period of the grant, the 
                        Administration may terminate the grant.
                            ``(ii) Exception.--Notwithstanding a grant 
                        recipient's violation of a grant obligation 
                        under this section, the Administration may 
                        continue to fund the grant if the grant 
                        recipient is making a good faith effort to 
                        comply with such obligation.
            ``(3) Use of funds.--Grants awarded under paragraph (1) may 
        be used to provide training and counseling in the areas of--
                    ``(A) pre-business, business startup, and business 
                operations;
                    ``(B) financial planning assistance;
                    ``(C) procurement assistance;
                    ``(D) management assistance; and
                    ``(E) marketing assistance.
            ``(4) Matching requirement.--
                    ``(A) Women's business center grants.--As a 
                condition of receiving financial assistance under this 
                section, the grant recipient shall agree to obtain, 
                after its application has been approved and notice of 
                award has been issued, cash contributions from non-
                Federal sources as follows:
                            ``(i) In the first and second years, 1 non-
                        Federal dollar for each 2 Federal dollars 
                        provided under the 4-year grant.
                            ``(ii) In the third and fourth years, 1 
                        non-Federal dollar for each Federal dollar 
                        provided under the 4-year grant.
                            ``(iii) In each renewal period, 1 non-
                        Federal dollar for each Federal dollar provided 
                        under the 3-year grant.
                    ``(B) Form of non-federal contributions.--Not more 
                than \1/2\ of the non-Federal sector matching 
                assistance may be in the form of in-kind contributions 
                that are budget line items only, including office 
                equipment and office space.
                    ``(C) Failure to obtain non-federal funding.--
                            ``(i) Advance disbursements.--If any grant 
                        recipient fails to obtain the required non-
                        Federal contribution during any project year, 
                        it shall not be eligible for advance 
                        disbursements pursuant to subparagraph (D) 
                        during the remainder of that project year.
                            ``(ii) Ability to obtain non-federal 
                        funding.--Before approving assistance to a 
                        grant recipient that has failed to obtain the 
                        required non-Federal contribution for any other 
                        projects under this Act, the Administration 
                        shall require the grant recipient to certify 
                        that it will be able to obtain the requisite 
                        non-Federal funding and enter a written finding 
                        setting forth the reasons for making such 
                        determination.
                    ``(D) Form of federal contributions.--The financial 
                assistance authorized pursuant to this section may be 
                made by grant or cooperative agreement and may contain 
                such provision, as necessary, to provide for payments 
                in lump sum or installments, and in advance or by way 
                of reimbursement. The Administration may disburse up to 
                25 percent of each year's Federal share awarded to a 
                grant recipient after notice of the award has been 
                issued and before the non-Federal sector matching funds 
                are obtained.
            ``(5) Application for an initial grant.--Each organization 
        desiring an initial grant under this subsection, shall submit 
        to the Administration an application that contains--
                    ``(A) a certification that the applicant--
                            ``(i) is a private nonprofit organization;
                            ``(ii) has designated an executive director 
                        or program manager, who may be compensated from 
                        grant funds or other sources, to manage the 
                        center; and
                            ``(iii) as a condition of receiving a grant 
                        under this subsection, agrees--
                                    ``(I) to receive a site visit as 
                                part of the final selection process;
                                    ``(II) to undergo an annual 
                                programmatic and financial examination; 
                                and
                                    ``(III) to the maximum extent 
                                practicable, to remedy any problems 
                                identified pursuant to the site visit 
                                or examination under subclauses (I) and 
                                (II);
                    ``(B) information demonstrating that the applicant 
                has the ability and resources to meet the needs of the 
                market to be served by the women's business center site 
                for which an initial grant is sought, including the 
                ability to comply with the matching requirement under 
                paragraph (4);
                    ``(C) information relating to assistance to be 
                provided by the women's business center site for which 
                an initial grant is sought in the area in which the 
                site is located;
                    ``(D) information demonstrating the effective 
                experience of the applicant in--
                            ``(i) conducting financial, management, and 
                        marketing assistance programs, as described 
                        under paragraph (3), which are designed to 
                        teach or upgrade the business skills of women 
                        who are business owners or potential business 
                        owners;
                            ``(ii) providing training and services to a 
                        representative number of women who are both 
                        socially and economically disadvantaged; and
                            ``(iii) using resource partners of the 
                        Administration and other entities, such as 
                        universities;
                    ``(E) a 4-year plan that projects the ability of 
                the women's business center site for which an initial 
                grant is sought--
                            ``(i) to serve women business owners or 
                        potential owners in the future by improving 
                        training and counseling activities; and
                            ``(ii) to provide training and services to 
                        a representative number of women who are both 
                        socially and economically disadvantaged; and
                    ``(F) any additional information that the 
                Administration may reasonably require.
            ``(6) Review and approval of applications for an initial 
        grant.--
                    ``(A) In general.--The Administration shall--
                            ``(i) review each application submitted 
                        under paragraph (5) based on the information 
                        provided in such paragraph and the criteria set 
                        forth under subparagraph (B); and
                            ``(ii) as part of the final selection 
                        process, conduct a site visit at each women's 
                        business center for which an initial grant is 
                        sought.
                    ``(B) Selection criteria.--
                            ``(i) In general.--The Administration shall 
                        evaluate applicants in accordance with 
                        predetermined selection criteria that shall be 
                        stated in terms of relative importance. Such 
                        criteria and their relative importance shall be 
                        made publicly available and stated in each 
                        solicitation for applications made by the 
                        Administration.
                            ``(ii) Required criteria.--The selection 
                        criteria for an initial grant under clause (i) 
                        shall include--
                                    ``(I) the experience of the 
                                applicant in conducting programs or 
                                ongoing efforts designed to teach or 
                                upgrade the business skills of women 
                                business owners or potential owners;
                                    ``(II) the ability of the applicant 
                                to commence a project within a minimum 
                                amount of time;
                                    ``(III) the ability of the 
                                applicant to provide training and 
                                services to a representative number of 
                                women who are both socially and 
                                economically disadvantaged; and
                                    ``(IV) the location for the women's 
                                business center site proposed by the 
                                applicant.
                    ``(C) Record retention.--The Administration shall 
                maintain a copy of each application submitted under 
                this paragraph for not less than 7 years.
            ``(7) Application for a renewal grant.--Each organization 
        desiring a renewal grant under this subsection, shall submit to 
        the Administration, not later than 3 months before the 
        expiration of an existing grant under this subsection, an 
        application that contains--
                    ``(A) a certification that the applicant--
                            ``(i) is a private nonprofit organization;
                            ``(ii) has designated an executive director 
                        or program manager to manage the center; and
                            ``(iii) as a condition of receiving a grant 
                        under this subsection, agrees--
                                    ``(I) to receive a site visit as 
                                part of the final selection process;
                                    ``(II) to submit, for the preceding 
                                2 years, annual programmatic and 
                                financial examination reports or 
                                certified copies of the applicant's 
                                compliance supplemental audits under 
                                OMB Circular A-133; and
                                    ``(III) to the maximum extent 
                                practicable, to remedy any problems 
                                identified pursuant to the site visit 
                                or examination under subclauses (I) and 
                                (II);
                    ``(B) information demonstrating that the applicant 
                has the ability and resources to meet the needs of the 
                market to be served by the women's business center site 
                for which a renewal grant is sought, including the 
                ability to comply with the matching requirement under 
                paragraph (4);
                    ``(C) information relating to assistance to be 
                provided by the women's business center site for which 
                a renewal grant is sought in the area in which the site 
                is located;
                    ``(D) information demonstrating the utilization of 
                resource partners of the Administration and other 
                entities;
                    ``(E) a 3-year plan that projects the ability of 
                the women's business center site for which a renewal 
                grant is sought--
                            ``(i) to serve women business owners or 
                        potential owners in the future by improving 
                        training and counseling activities; and
                            ``(ii) to provide training and services to 
                        a representative number of women who are both 
                        socially and economically disadvantaged; and
                    ``(F) any additional information that the 
                Administration may reasonably require.
            ``(8) Review and approval of applications for a renewal 
        grant.--
                    ``(A) In general.--The Administration shall--
                            ``(i) review each application submitted 
                        under paragraph (7) based on the information 
                        provided in such paragraph and the criteria set 
forth under subparagraph (B); and
                            ``(ii) as part of the final selection 
                        process, conduct a site visit at each women's 
                        business center for which a renewal grant is 
                        sought.
                    ``(B) Selection criteria.--The Administration shall 
                evaluate applicants in accordance with predetermined 
                selection criteria that shall be stated in terms of 
                relative importance. Such criteria and their relative 
                importance shall be made publicly available and stated 
                in each solicitation for applications made by the 
                Administration.
                    ``(C) Conditions for continued funding.--In 
                determining whether to renew a grant or cooperative 
                agreement with a women's business center, the 
                Administration--
                            ``(i) shall consider the results of the 
                        most recent evaluation of the center, and, to a 
                        lesser extent, previous evaluations; and
                            ``(ii) may withhold such renewal, if the 
                        Administration determines that the center has 
                        failed to provide the information required to 
                        be provided under this subsection, or the 
                        information provided by the center is 
                        inadequate.
                    ``(D) Continuing grant and cooperative agreement 
                authority.--
                            ``(i) In general.--The authority of the 
                        Administrator to enter into grants or 
                        cooperative agreements under this subsection 
                        shall be in effect for each fiscal year only to 
                        the extent and in the amounts as are provided 
                        in advance in appropriations Acts.
                            ``(ii) Renewal.--After the Administrator 
                        has entered into a grant or cooperative 
                        agreement with any women's business center 
                        under this subsection, it shall not suspend, 
                        terminate, or fail to renew or extend any such 
                        grant or cooperative agreement unless the 
                        Administrator provides the center with written 
                        notification setting forth the reasons 
                        therefore and affords the center an opportunity 
                        for a hearing, appeal, or other administrative 
                        proceeding under chapter 5 of title 5, United 
                        States Code.
                    ``(E) Record retention.--The Administration shall 
                maintain a copy of each application submitted under 
                this paragraph for not less than 7 years.
            ``(9) Data collection.--Consistent with the annual report 
        to Congress under subsection (g), each women's business center 
        site that is awarded an initial or renewal grant shall collect 
        information relating to--
                    ``(A) the number of individuals counseled or 
                trained;
                    ``(B) the number of hours of counseling provided;
                    ``(C) the number of workshops conducted;
                    ``(D) the number of startup small business concerns 
                formed; and
                    ``(E) the number of jobs created or maintained at 
                assisted small business concerns.
            ``(10) Privacy requirements.--
                    ``(A) In general.--A women's business 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).
            ``(11) Transition rules.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, a grant or cooperative agreement that 
                was awarded as an eligible sustainability grant, from 
                amounts appropriated for fiscal year 2003, to operate a 
                women's business center, shall remain in full force and 
                effect under the terms, and for the duration, of such 
                agreement, subject to the grant limitation in paragraph 
                (1).
                    ``(B) Extension.--If the sustainability grant under 
                subparagraph (A) is scheduled to expire not later than 
                June 30, 2005, a 1-year extension shall be granted 
                without any interruption of funding, subject to the 
                grant limitation in paragraph (1).
                    ``(C) Effect on certain existing projects and 
                renewal authority.--A project being conducted by a 
                women's business center under this subsection on the 
                day before the date of enactment of the Small Business 
                Administration 50th Anniversary Reauthorization Act of 
                2003--
                            ``(i) as a 5-year project, shall remain in 
                        full force and effect under the terms and for 
the duration of that agreement; and
                            ``(ii) shall be eligible to apply for a 3-
                        year renewal grant funded at a level equal to 
                        not more than $150,000 per year.
    ``(c) Associations of Women's Business Centers.--
            ``(1) Recognition.--The Administration shall recognize the 
        existence and activities of any association of women's business 
        centers established to address matters of common concern.
            ``(2) Consultation.--The Administration shall consult with 
        each association of women's business centers (as defined in 
        subsection (a)) to develop--
                    ``(A) a training program for the staff of the 
                women's business centers and the Administration; and
                    ``(B) recommendations to improve the policies and 
                procedures for governing the general operations and 
                administration of the Women's Business Center Program, 
                including grant program improvements under subsection 
                (g)(5).''.
    (b) Conforming Amendments.--Section 29 of the Small Business Act 
(15 U.S.C. 656) is amended--
            (1) by redesignating subsections (g), (h), (i), (j), and 
        (k) as subsections (d), (e), (f), (g), and (h), respectively;
            (2) in subsection (e)(2), as redesignated by paragraph (1) 
        of this subsection, by striking ``to award a contract (as a 
        sustainability grant) under subsection (l) or'';
            (3) in subsection (g)(1), as redesignated by paragraph (1) 
        of this subsection, by striking ``The Administration'' and 
        inserting ``Not later than November 1st of each year, the 
        Administration'';
            (4) in subsection (h), as redesignated by paragraph (1) of 
        this subsection--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--There are authorized to be appropriated 
        to carry out the provisions of this section, to remain 
        available until expended--
                    ``(A) $15,000,000 for fiscal year 2004, of which 
                $500,000 may be used to provide supplemental 
                sustainability grants to women's business centers, 
                except that no such center may receive more than a 
                total of $125,000 in grant funding for the grant period 
                beginning on July 1, 2003 and ending on June 30, 2004;
                    ``(B) $16,000,000 for fiscal year 2005; and
                    ``(C) $17,500,000 for fiscal year 2006.'';
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Use of amounts.--Amounts made available under this 
        subsection may only be used for grant awards and may not be 
        used for costs incurred by the Administration in connection 
        with the management and administration of the program under 
        this section.''; and
                    (C) by striking paragraph (4); and
            (5) by striking subsection (l).

SEC. 313. NATIONAL WOMEN'S BUSINESS COUNCIL.

    (a) Cosponsorship Authority.--Section 406 of the Women's Business 
Ownership Act of 1988 (15 U.S.C. <DELETED>631 note</DELETED>7106) is 
amended by adding at the end the following:
    ``(f) Cosponsorship Authority.--The Council is authorized to enter 
into agreements as cosponsors with public and private entities, in the 
same manner as is provided in section 8(b)(1)(A) of the Small Business 
Act (15 U.S.C. 637(b)(1)(A)), to carry out its duties under this 
section.''.
    (b) Membership.--Section 407(f) of the Women's Business Ownership 
Act of 1988 (15 U.S.C. <DELETED>631 note</DELETED>7107(f)) is amended 
by adding at the end the following:
            ``(3) Representation of member organizations.--
        Notwithstanding subsection (b), a national women's business 
        organization or small business that is represented on the 
        Council may, in consultation with the chairperson of the 
        Council, replace its representative member on the Council at 
        any time during the service term to which that member was 
        appointed.''.
    (c) Establishment of Committees.--<DELETED>The</DELETED>Title IV of 
the Women's Business Ownership Act of 1988 (15 U.S.C. <DELETED>631 
note</DELETED>7101 et seq.) is amended by inserting after section 
<DELETED>407</DELETED>410, the following new section:

``SEC. <DELETED>408</DELETED>411. COMMITTEES.

    ``(a) Establishment.--There are established within the Council--
            ``(1) the Committee on Manufacturing, Technology, and 
        Professional Services;
            ``(2) the Committee on Travel, Tourism, Product and Retail 
        Sales, and International Trade; and
            ``(3) the Committee on Federal Procurement and Contracting.
    ``(b) Duties.--The Committees established under subsection (a) 
shall perform such duties as the chairperson shall direct.''.
    (d) Clearinghouse for Historical Documents.--Section 409 of the 
Women's Business Ownership Act of 1988 (15 U.S.C. <DELETED>631 
note</DELETED>7109) is amended by adding at the end the following:
    ``(c) Clearinghouse for Historical Documents.--The Council shall 
serve as a clearinghouse for information on small businesses owned and 
controlled by women, including research conducted by other 
organizations and individuals relating to ownership by women of small 
businesses in the United States.''.
    (e) Authorization of Appropriations.--Section 410(a) of the Women's 
Business Ownership Act of 1988 (15 U.S.C. <DELETED>631 
note</DELETED>7110(a)) is amended by striking ``2001 through 2003, of 
which $550,000'' and inserting ``2004 through 2006, of which at least 
30 percent''.

SEC. 314. INTERAGENCY COMMITTEE ON WOMEN'S BUSINESS ENTERPRISE.

    (a) Chairperson.--Section 403(b) of the Women's Business Ownership 
Act of 1988 (15 U.S.C. <DELETED>631 note</DELETED>7103(b)) is amended--
            (1) by striking ``Not later'' and inserting the following:
            ``(1) In general.--Not later''; and
            (2) by adding at the end the following:
            ``(2) Vacancy.--In the event that a chairperson is not 
        appointed under paragraph (1), the Deputy Administrator of the 
        Small Business Administration shall serve as acting chairperson 
        of the Interagency Committee until a chairperson is appointed 
        under paragraph (1).''.
    (b) Policy Advisory Group.--Section 401 of the Women's Business 
Ownership Act of 1988 (15 U.S.C. <DELETED>631 note</DELETED>7101) is 
amended--
            (1) by striking ``There'' and inserting the following:
    ``(a) In General.--There''; and
            (2) by adding at the end the following:
    ``(b) Policy Advisory Group.--
            ``(1) Establishment.--There is established a Policy 
        Advisory Group to assist the chairperson in developing policies 
        and programs under this Act.
            ``(2) Membership.--The Policy Advisory Group shall be 
        composed of 7 policy making officials, of whom--
                    ``(A) 1 shall be a representative of the Small 
                Business Administration;
                    ``(B) 1 shall be a representative of the Department 
                of Commerce;
                    ``(C) 1 shall be a representative of the Department 
                of Labor;
                    ``(D) 1 shall be a representative of the Department 
                of Defense;
                    ``(E) 1 shall be a representative of the Department 
                of the Treasury; and
                    ``(F) 2 shall be representatives of the National 
                Women's Business Council.''.
    (c) Establishment of Subcommittees.--Section 401 of the Women's 
Business Ownership Act of 1988 (15 U.S.C. <DELETED>631 
note</DELETED>7101), as amended by subsection (b), is further amended 
by adding at the end the following:
    ``(c) Subcommittees.--
            ``(1) Establishment.--There are established--
                    ``(A) the Subcommittee on Manufacturing, 
                Technology, and Professional Services;
                    ``(B) the Subcommittee on Travel, Tourism, Product 
                and Retail Sales, and International Trade; and
                    ``(C) the Subcommittee on Federal Procurement and 
                Contracting.
            ``(2) Duties.--The Subcommittees established under 
        paragraph (1) shall perform such duties as the chairperson 
        shall direct.
            ``(3) Meetings.--The Interagency Committee shall meet not 
        less frequently than 3 times each year to--
                    ``(A) plan activities for the new fiscal year;
                    ``(B) track year-to-date agency contracting goals; 
                and
                    ``(C) evaluate the progress during the fiscal year 
                and prepare an annual report.''.

SEC. 315. PRESERVING THE INDEPENDENCE OF THE NATIONAL WOMEN'S BUSINESS 
              COUNCIL.

    (a) Short Title.--This section may be cited as the ``National 
Women's Business Council Independence Preservation Act of 2003''.
    (b) Findings.--Congress finds the following:
            (1) The National Women's Business Council provides an 
        independent source of advice and policy recommendations 
        regarding women's business development and the needs of women 
        entrepreneurs in the United States to--
                    (A) the President;
                    (B) Congress;
                    (C) the Interagency Committee on Women's Business 
                Enterprise; and
                    (D) the Administrator of the Small Business 
                Administration.
            (2) The members of the National Women's Business Council 
        are small business owners, representatives of business 
        organizations, and representatives of women's business centers.
            (3) The chair and ranking member of the Committee on Small 
        Business and Entrepreneurship of the Senate and the Committee 
        on Small Business of the House of Representatives make 
        recommendations to the Administrator to fill 8 of the positions 
        on the National Women's Business Council. Four of the positions 
        are reserved for small business owners who are affiliated with 
        the political party of the President and 4 of the positions are 
        reserved for small business owners who are not affiliated with 
        the political party of the President. This method of 
        appointment ensures that the National Women's Business Council 
        will provide Congress with nonpartisan, balanced, and 
        independent advice.
            (4) In order to maintain the independence of the National 
        Women's Business Council and to ensure that the Council 
        continues to provide Congress with advice on a nonpartisan 
        basis, it is essential that the Council maintain the bipartisan 
        balance established under section 407 of the Women's Business 
        Ownership Act of 1988 (15 U.S.C. 7107).
    (c) Maintenance of Partisan Balance.--Section 407(f) of the Women's 
Business Ownership Act of 1988 (15 U.S.C. 7107(f)) is amended--
            (1) by striking ``A vacancy'' and inserting the following:
            ``(1) In general.--A vacancy''; and
            (2) by adding at the end the following:
            ``(2) Partisan balance.--When filling vacancies under 
        paragraph (1), the Administrator shall, to the extent 
        practicable, ensure that there are an equal number of members 
        on the Council from each of the 2 major political parties.
            ``(3) Accountability.--If a vacancy is not filled within 
        the 30-day period required under paragraph (1) or if there 
        exists an imbalance of party-affiliated members on the Council 
        for a period exceeding 30 days, the Administrator shall submit 
        a report, not later than 10 days after the respective 30-day 
        deadline, to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives, that explains why the 
respective deadline was not met and provides an estimated date on which 
any vacancies will be filled.''.

             Subtitle C--Office of Native American Affairs

SEC. 321. SHORT TITLE.

    This subtitle may be cited as the ``Native American Small Business 
Development Act''.

SEC. 322. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 36 as section 37; and
            (2) by inserting after section 35 the following:

``SEC. 36. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

    ``(a) Definitions.--In this section--
            ``(1) the term `Alaska Native' has the same meaning as the 
        term `Native' in section 3(b) of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602(b));
            ``(2) the term `Alaska Native corporation' has the same 
        meaning as the term `Native Corporation' in section 3(m) of the 
        Alaska Native Claims Settlement Act (43 U.S.C. 1602(m));
            ``(3) the term `Assistant Administrator' means the 
        Assistant Administrator of the Office of Native American 
        Affairs established under subsection (b);
            ``(4) the terms `center' and `Native American business 
        center' mean a center established under subsection (c);
            ``(5) the term `Native American business development 
        center' means an entity providing business development 
        assistance to federally recognized tribes and Native Americans 
        under a grant from the Minority Business Development Agency of 
        the Department of Commerce;
            ``(6) the term `Native American small business concern' 
        means a small business concern that is owned and controlled 
        by--
                    ``(A) a member of an Indian tribe or tribal 
                government;
                    ``(B) an Alaska Native or Alaska Native 
                corporation; or
                    ``(C) a Native Hawaiian or Native Hawaiian 
                organization;
            ``(7) the term `Native Hawaiian' has the same meaning as in 
        section 625 of the Older Americans Act of 1965 (42 U.S.C. 
        3057k);
            ``(8) the term `Native Hawaiian organization' has the same 
        meaning as in section 8(a)(15) of this Act;
            ``(9) the term `tribal college' has the same meaning as the 
        term `tribally controlled college or university' has in section 
        2(a)(4) of the Tribally Controlled Community College Assistance 
        Act of 1978 (25 U.S.C. 1801(a)(4));
            ``(10) the term `tribal government' has the same meaning as 
        the term `Indian tribe' has in section 7501(a)(9) of title 31, 
        United States Code; and
            ``(11) the term `tribal lands' means all lands within the 
        exterior boundaries of any Indian reservation.
    ``(b) Office of Native American Affairs.--
            ``(1) Establishment.--There is established within the 
        Administration the Office of Native American Affairs, which, 
        under the direction of the Assistant Administrator, shall 
        implement the Administration's programs for the development of 
        business enterprises by Native Americans.
            ``(2) Purpose.--The purpose of the Office of Native 
        American Affairs is to assist Native American entrepreneurs 
        to--
                    ``(A) start, operate, and grow small business 
                concerns;
                    ``(B) develop management and technical skills;
                    ``(C) seek Federal procurement opportunities;
                    ``(D) increase employment opportunities for Native 
                Americans through the start and expansion of small 
                business concerns; and
                    ``(E) increase the access of Native Americans to 
                capital markets.
            ``(3) Assistant administrator.--
                    ``(A) Appointment.--The Administrator shall appoint 
                a qualified individual to serve as Assistant 
                Administrator of the Office of Native American Affairs 
                in accordance with this paragraph.
                    ``(B) Qualifications.--The Assistant Administrator 
                appointed under subparagraph (A) shall have--
                            ``(i) knowledge of the Native American 
                        culture; and
                            ``(ii) experience providing culturally 
                        tailored small business development assistance 
                        to Native Americans.
                    ``(C) Employment status.--The Assistant 
                Administrator shall be a Senior Executive Service 
                position under section 3132(a)(2) of title 5, United 
                States Code, and shall serve as a noncareer appointee, 
                as defined in section 3132(a)(7) of title 5, United 
                States Code.
                    ``(D) Responsibilities and duties.--The Assistant 
                Administrator shall--
                            ``(i) administer and manage the Native 
                        American Small Business Development program 
                        established under this section;
                            ``(ii) recommend the annual administrative 
                        and program budgets for the Office of Native 
                        American Affairs;
                            ``(iii) consult with Native American 
                        business centers in carrying out the program 
                        established under this section;
                            ``(iv) recommend appropriate funding 
                        levels;
                            ``(v) review the annual budgets submitted 
                        by each applicant for the Native American Small 
Business Development program;
                            ``(vi) select applicants to participate in 
                        the program under this section;
                            ``(vii) implement this section; and
                            ``(viii) maintain a clearinghouse to 
                        provide for the dissemination and exchange of 
                        information between Native American business 
                        centers.
                    ``(E) Consultation requirements.--In carrying out 
                the responsibilities and duties described in this 
                paragraph, the Assistant Administrator shall confer 
                with and seek the advice of--
                            ``(i) Administration officials working in 
                        areas served by Native American business 
                        centers and Native American business 
                        development centers;
                            ``(ii) the Bureau of Indian Affairs of the 
                        Department of the Interior;
                            ``(iii) tribal governments;
                            ``(iv) tribal colleges;
                            ``(v) Alaska Native corporations; and
                            ``(vi) Native Hawaiian organizations.
    ``(c) Native American Small Business Development Program.--
            ``(1) Authorization.--
                    ``(A) In general.--The Administration, through the 
                Office of Native American Affairs, shall provide 
                financial assistance to tribal governments, tribal 
                colleges, Native Hawaiian organizations, and Alaska 
                Native corporations to create Native American business 
                centers in accordance with this section.
                    ``(B) Use of funds.--The financial and resource 
                assistance provided under this subsection shall be used 
                to overcome obstacles impeding the creation, 
                development, and expansion of small business concerns, 
                in accordance with this section, by--
                            ``(i) reservation-based American Indians;
                            ``(ii) Alaska Natives; and
                            ``(iii) Native Hawaiians.
            ``(2) 5-year projects.--
                    ``(A) In general.--Each Native American business 
                center that receives assistance under paragraph (1)(A) 
                shall conduct 5-year projects that offer culturally 
                tailored business development assistance in the form 
                of--
                            ``(i) financial education, including 
                        training and counseling in--
                                    ``(I) applying for and securing 
                                business credit and investment capital;
                                    ``(II) preparing and presenting 
                                financial statements; and
                                    ``(III) managing cash flow and 
                                other financial operations of a 
                                business concern;
                            ``(ii) management education, including 
                        training and counseling in planning, 
                        organizing, staffing, directing, and 
                        controlling each major activity and function of 
                        a small business concern; and
                            ``(iii) marketing education, including 
                        training and counseling in--
                                    ``(I) identifying and segmenting 
                                domestic and international market 
                                opportunities;
                                    ``(II) preparing and executing 
                                marketing plans;
                                    ``(III) developing pricing 
                                strategies;
                                    ``(IV) locating contract 
                                opportunities;
                                    ``(V) negotiating contracts; and
                                    ``(VI) utilizing varying public 
                                relations and advertising techniques.
                    ``(B) Business development assistance recipients.--
                The business development assistance under subparagraph 
                (A) shall be offered to prospective and current owners 
                of small business concerns that are owned by--
                            ``(i) American Indians or tribal 
                        governments, and located on or near tribal 
                        lands;
                            ``(ii) Alaska Natives or Alaska Native 
                        corporations; or
                            ``(iii) Native Hawaiians or Native Hawaiian 
                        organizations.
            ``(3) Form of federal financial assistance.--
                    ``(A) Documentation.--
                            ``(i) In general.--The financial assistance 
                        to Native American business centers authorized 
                        under this subsection may be made by grant, 
                        contract, or cooperative agreement.
                            ``(ii) Exception.--Financial assistance 
                        under this subsection to Alaska Native 
                        corporations or Native Hawaiian organizations 
                        may only be made by grant.
                    ``(B) Payments.--
                            ``(i) Timing.--Payments made under this 
                        subsection may be disbursed in an annual lump 
                        sum or in periodic installments, at the request 
                        of the recipient.
                            ``(ii) Advance.--The Administration may 
                        disburse not more than 25 percent of the annual 
                        amount of Federal financial assistance awarded 
                        to a Native American small business center 
                        after notice of the award has been issued.
                            ``(iii) No matching requirement.--The 
                        Administration shall not require a grant 
                        recipient to match grant funding received under 
                        this subsection with non-Federal resources as a 
                        condition of receiving the grant.
            ``(4) Contract and cooperative agreement authority.--A 
        Native American business center may enter into a contract or 
cooperative agreement with a Federal department or agency to provide 
specific assistance to Native American and other under-served small 
business concerns located on or near tribal lands, to the extent that 
such contract or cooperative agreement is consistent with the terms of 
any assistance received by the Native American business center from the 
Administration.
            ``(5) Application process.--
                    ``(A) Submission of a 5-year plan.--Each applicant 
                for assistance under paragraph (1) shall submit a 5-
                year plan to the Administration on proposed assistance 
                and training activities.
                    ``(B) Criteria.--
                            ``(i) In general.--The Administration shall 
                        evaluate and rank applicants in accordance with 
                        predetermined selection criteria that shall be 
                        stated in terms of relative importance.
                            ``(ii) Public notice.--The criteria 
                        required by this paragraph and their relative 
                        importance shall be made publicly available, 
                        within a reasonable time, and stated in each 
                        solicitation for applications made by the 
                        Administration.
                            ``(iii) Considerations.--The criteria 
                        required by this paragraph shall include--
                                    ``(I) the experience of the 
                                applicant in conducting programs or 
                                ongoing efforts designed to impart or 
                                upgrade the business skills of current 
                                or potential owners of Native American 
                                small business concerns;
                                    ``(II) the ability of the applicant 
                                to commence a project within a minimum 
                                amount of time;
                                    ``(III) the ability of the 
                                applicant to provide quality training 
                                and services to a significant number of 
                                Native Americans;
                                    ``(IV) previous assistance from the 
                                Small Business Administration to 
                                provide services in Native American 
                                communities; and
                                    ``(V) the proposed location for the 
                                Native American business center site, 
                                with priority given based on the 
                                proximity of the center to the 
                                population being served and to achieve 
                                a broad geographic dispersion of the 
                                centers.
            ``(6) Program examination.--
                    ``(A) In general.--Each Native American business 
                center established pursuant to this subsection shall 
                annually provide the Administration with an itemized 
                cost breakdown of actual expenditures incurred during 
                the preceding year.
                    ``(B) Administration action.--Based on information 
                received under subparagraph (A), the Administration 
                shall--
                            ``(i) develop and implement an annual 
                        programmatic and financial examination of each 
                        Native American business center assisted 
                        pursuant to this subsection; and
                            ``(ii) analyze the results of each 
                        examination conducted under clause (i) to 
                        determine the programmatic and financial 
                        viability of each Native American business 
                        center.
                    ``(C) Conditions for continued funding.--In 
                determining whether to renew a grant, contract, or 
                cooperative agreement with a Native American business 
                center, the Administration--
                            ``(i) shall consider the results of the 
                        most recent examination of the center under 
                        subparagraph (B), and, to a lesser extent, 
                        previous examinations; and
                            ``(ii) may withhold such renewal, if the 
                        Administration determines that--
                                    ``(I) the center has failed to 
                                provide adequate information required 
                                to be provided under subparagraph (A), 
                                or the information provided by the 
                                center is inadequate; or
                                    ``(II) the center has failed to 
                                provide adequate information required 
                                to be provided by the center for 
                                purposes of the report of the 
                                Administration under subparagraph (E).
                    ``(D) Continuing contract and cooperative agreement 
                authority.--
                            ``(i) In general.--The authority of the 
                        Administrator to enter into contracts or 
                        cooperative agreements in accordance with this 
                        subsection shall be in effect for each fiscal 
                        year only to the extent and in the amounts as 
                        are provided in advance in appropriations Acts.
                            ``(ii) Renewal.--After the Administrator 
                        has entered into a contract or cooperative 
                        agreement with any Native American business 
                        center under this subsection, it shall not 
                        suspend, terminate, or fail to renew or extend 
                        any such contract or cooperative agreement 
                        unless the Administrator provides the center 
                        with written notification setting forth the 
                        reasons therefore and affords the center an 
                        opportunity for a hearing, appeal, or other 
                        administrative proceeding under chapter 5 of 
                        title 5, United States Code.
                    ``(E) Management report.--
                            ``(i) In general.--The Administration shall 
                        prepare and submit to the Committee on Small 
                        Business and Entrepreneurship of the Senate and 
                        the Committee on Small Business of the House of 
                        Representatives an annual report on the 
                        effectiveness of all projects conducted by 
                        Native American business centers under this 
                        subsection and any pilot programs administered 
                        by the Office of Native American Affairs.
                            ``(ii) Contents.--Each report submitted 
                        under clause (i) shall include, with respect to 
                        each Native American business center receiving 
                        financial assistance under this subsection--
                                    ``(I) the number of individuals 
                                receiving assistance from the Native 
                                American business center;
                                    ``(II) the number of startup 
                                business concerns created;
                                    ``(III) the number of existing 
                                businesses seeking to expand 
                                employment;
                                    ``(IV) jobs created or maintained, 
                                on an annual basis, by Native American 
                                small business concerns assisted by the 
                                center since receiving funding under 
                                this Act;
                                    ``(V) to the maximum extent 
                                practicable, the capital investment and 
                                loan financing utilized by emerging and 
                                expanding businesses that were assisted 
by a Native American business center; and
                                    ``(VI) the most recent examination, 
                                as required under subparagraph (B), and 
                                the subsequent determination made by 
                                the Administration under that 
                                subparagraph.
            ``(7) Annual report.--Each entity receiving financial 
        assistance under this subsection shall annually report to the 
        Administration on the services provided with such financial 
        assistance, including--
                    ``(A) the number of individuals assisted, 
                categorized by ethnicity;
                    ``(B) the number of hours spent providing 
                counseling and training for those individuals;
                    ``(C) the number of startup small business concerns 
                created or maintained;
                    ``(D) the gross receipts of assisted small business 
                concerns;
                    ``(E) the number of jobs created or maintained at 
                assisted small business concerns; and
                    ``(F) the number of Native American jobs created or 
                maintained at assisted small business concerns.
            ``(8) Record retention.--
                    ``(A) Applications.--The Administration shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.
                    ``(B) Annual reports.--The Administration shall 
                maintain copies of the information collected under 
                paragraph (6)(A) indefinitely.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $5,000,000 for each of the fiscal years 2004 through 2008, 
to carry out the Native American Small Business Development Program, 
authorized under subsection (c).''.

SEC. 323. PILOT PROGRAMS.

    (a) Definitions.--In this section, the following definitions shall 
apply:
            (1) Incorporation by reference.--The terms defined in 
        section 36(a) of the Small Business Act (as added by this Act) 
        have the same meanings as in that section 36(a) when used in 
        this section.
            (2) Joint project.--The term ``joint project'' means the 
        combined resources and expertise of 2 or more distinct entities 
        at a physical location dedicated to assisting the Native 
        American community.
    (b) Native American Development Grant Pilot Program.--
            (1) Authorization.--
                    (A) In general.--There is established a 4-year 
                pilot program under which the Administration is 
                authorized to award Native American development grants 
                to provide culturally tailored business development 
                training and related services to Native Americans and 
                Native American small business concerns.
                    (B) Eligible organizations.--The grants authorized 
                under subparagraph (A) may be awarded to--
                            (i) any small business development center; 
                        or
                            (ii) any private, nonprofit organization 
                        that--
                                    (I) has members of an Indian tribe 
                                comprising a majority of its board of 
                                directors;
                                    (II) is a Native Hawaiian 
                                organization; or
                                    (III) is an Alaska Native 
                                corporation.
                    (C) Amounts.--The Administration shall not award a 
                grant under this subsection in an amount which exceeds 
                $100,000 for each year of the project.
                    (D) Grant duration.--Each grant under this 
                subsection shall be awarded for not less than a 2-year 
                period and not more than a 4-year period.
            (2) Conditions for participation.--Each entity desiring a 
        grant under this subsection shall submit an application to the 
        Administration that contains--
                    (A) a certification that the applicant--
                            (i) is a small business development center 
                        or a private, nonprofit organization under 
                        paragraph (1)(B)(i);
                            (ii) employs an executive director or 
                        program manager to manage the facility; and
                            (iii) agrees--
                                    (I) to a site visit as part of the 
                                final selection process;
                                    (II) to an annual programmatic and 
                                financial examination; and
                                    (III) to the maximum extent 
                                practicable, to remedy any 
problems identified pursuant to that site visit or examination;
                    (B) information demonstrating that the applicant 
                has the ability and resources to meet the needs, 
                including cultural needs, of the Native Americans to be 
                served by the grant;
                    (C) information relating to proposed assistance 
                that the grant will provide, including--
                            (i) the number of individuals to be 
                        assisted; and
                            (ii) the number of hours of counseling, 
                        training, and workshops to be provided;
                    (D) information demonstrating the effective 
                experience of the applicant in--
                            (i) conducting financial, management, and 
                        marketing assistance programs designed to 
                        impart or upgrade the business skills of 
                        current or prospective Native American business 
                        owners;
                            (ii) providing training and services to a 
                        representative number of Native Americans;
                            (iii) using resource partners of the 
                        Administration and other entities, including 
                        universities, tribal governments, or tribal 
                        colleges; and
                            (iv) the prudent management of finances and 
                        staffing;
                    (E) the location where the applicant will provide 
                training and services to Native Americans; and
                    (F) a multiyear plan, corresponding to the length 
                of the grant, that describes--
                            (i) the number of Native Americans and 
                        Native American small business concerns to be 
                        served by the grant;
                            (ii) in the continental United States, the 
                        number of Native Americans to be served by the 
                        grant; and
                            (iii) the training and services to be 
                        provided to a representative number of Native 
                        Americans.
            (3) Review of applications.--The Administration shall--
                    (A) evaluate and rank applicants under paragraph 
                (2) in accordance with predetermined selection criteria 
                that is stated in terms of relative importance;
                    (B) include such criteria in each solicitation 
                under this subsection and make such information 
                available to the public; and
                    (C) approve or disapprove each completed 
                application submitted under this subsection not more 
                than 60 days after submission.
            (4) Annual report.--Each recipient of a Native American 
        development grant under this subsection shall annually report 
        to the Administration on the impact of the grant funding, 
        including--
                    (A) the number of individuals assisted, categorized 
                by ethnicity;
                    (B) the number of hours spent providing counseling 
                and training for those individuals;
                    (C) the number of startup small business concerns 
                created or maintained with assistance from a Native 
                American business center;
                    (D) the gross receipts of assisted small business 
                concerns;
                    (E) the number of jobs created or maintained at 
                assisted small business concerns; and
                    (F) the number of Native American jobs created or 
                maintained at assisted small business concerns.
            (5) Record retention.--
                    (A) Applications.--The Administration shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.
                    (B) Annual reports.--The Administration shall 
                maintain copies of the information collected under 
                paragraph (4) indefinitely.
    (c) American Indian Tribal Assistance Center Grant Pilot Program.--
            (1) Authorization.--
                    (A) In general.--There is established a 4-year 
                pilot program, under which the Administration shall 
                award not less than 3 American Indian Tribal Assistance 
                Center grants to establish joint projects to provide 
                culturally tailored business development assistance to 
                prospective and current owners of small business 
                concerns located on or near tribal lands.
                    (B) Eligible organizations.--
                            (i) Class 1.--Not fewer than 1 grant shall 
                        be awarded to a joint project performed by a 
                        Native American business center, a Native 
                        American business development center, and a 
                        small business development center.
                            (ii) Class 2.--Not fewer than 2 grants 
                        shall be awarded to joint projects performed by 
                        a Native American business center and a Native 
                        American business development center.
                    (C) Amounts.--The Administration shall not award a 
                grant under this subsection in an amount which exceeds 
                $200,000 for each year of the project.
                    (D) Grant duration.--Each grant under this 
                subsection shall be awarded for a 3-year period.
            (2) Conditions for participation.--Each entity desiring a 
        grant under this subsection shall submit to the Administration 
        a joint application that contains--
                    (A) a certification that each participant of the 
                joint application--
                            (i) is either a Native American business 
                        center, a Native American business development 
                        center, or a small business development center;
                            (ii) employs an executive director or 
                        program manager to manage the center; and
                            (iii) as a condition of receiving the 
                        American Indian Tribal Assistance Center grant, 
                        agrees--
                                    (I) to an annual programmatic and 
                                financial examination; and
                                    (II) to the maximum extent 
                                practicable, to remedy any problems 
                                identified pursuant to that 
                                examination;
                    (B) information demonstrating an historic 
                commitment to providing assistance to Native 
                Americans--
                            (i) residing on or near tribal lands; or
                            (ii) operating a small business concern on 
                        or near tribal lands;
                    (C) information demonstrating that each participant 
                of the joint application has the ability and resources 
                to meet the needs, including the cultural needs of the 
                Native Americans to be served by the grant;
                    (D) information relating to proposed assistance 
                that the grant will provide, including--
                            (i) the number of individuals to be 
                        assisted; and
                            (ii) the number of hours of counseling, 
                        training, and workshops to be provided;
                    (E) information demonstrating the effective 
                experience of each participant of the joint application 
                in--
                            (i) conducting financial, management, and 
                        marketing assistance programs, as described 
                        above, designed to impart or upgrade the 
                        business skills of current or prospective 
                        Native American business owners; and
                            (ii) the prudent management of finances and 
                        staffing; and
                    (F) a plan for the length of the grant, that 
                describes--
                            (i) the number of Native Americans and 
                        Native American small business concerns to be 
                        served by the grant; and
                            (ii) the training and services to be 
                        provided.
            (3) Review of applications.--The Administration shall--
                    (A) evaluate and rank applicants under paragraph 
                (2) in accordance with predetermined selection criteria 
                that is stated in terms of relative importance;
                    (B) include such criteria in each solicitation 
                under this subsection and make such information 
                available to the public; and
                    (C) approve or disapprove each application 
                submitted under this subsection not more than 60 days 
                after submission.
            (4) Annual report.--Each recipient of an American Indian 
        tribal assistance center grant under this subsection shall 
        annually report to the Administration on the impact of the 
        grant funding received during the reporting year, and the 
        cumulative impact of the grant funding received since the 
        initiation of the grant, including--
                    (A) the number of individuals assisted, categorized 
                by ethnicity;
                    (B) the number of hours of counseling and training 
                provided and workshops conducted;
                    (C) the number of startup business concerns created 
                or maintained with assistance from a Native American 
                business center;
                    (D) the gross receipts of assisted small business 
                concerns;
                    (E) the number of jobs created or maintained at 
                assisted small business concerns; and
                    (F) the number of Native American jobs created or 
                maintained at assisted small business concerns.
            (5) Record retention.--
                    (A) Applications.--The Administration shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.
                    (B) Annual reports.--The Administration shall 
                maintain copies of the information collected under 
                paragraph (4) indefinitely.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated--
            (1) $1,000,000 for each of the fiscal years 2004 through 
        2007, to carry out the Native American Development Grant Pilot 
        Program, authorized under subsection (b); and
            (2) $1,000,000 for each of the fiscal years 2004 through 
        2007, to carry out the American Indian Tribal Assistance Center 
        Grant Pilot Program, authorized under subsection (c).

          Subtitle D--Office of Veterans Business Development

SEC. 331. 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. 332. 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. 333. AUTHORIZATION OF APPROPRIATIONS.

    Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by 
adding at the end the following:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated for carrying out the provisions of this section--
            ``(1) $1,000,000 for fiscal year 2004;
            ``(2) $1,500,000 for fiscal year 2005; and
            ``(3) $2,000,000 for fiscal year 2006.''.

           TITLE IV--SMALL BUSINESS PROCUREMENT OPPORTUNITIES

SEC. 401. CONTRACT CONSOLIDATION.

    (a) Definitions.--Section 3(o) of the Small Business Act (15 U.S.C. 
632(o)) is amended to read as follows:
    ``(o) Definitions Relating to Consolidation of Contract 
Requirements.--In this Act--
            ``(1) the terms `consolidation of contract requirements' 
        and `consolidation', with respect to contract requirements of a 
        military department, Defense Agency, Department of Defense 
        Field Activity, or any other Federal department or agency 
        having contracting authority mean a use of a solicitation to 
        obtain offers for a single contract or a multiple award 
        contract to satisfy 2 or more requirements of that department, 
        agency, or activity for goods or services that--
                    ``(A) have previously been provided to or performed 
                for that department, agency, or activity under 2 or 
                more separate contracts that are smaller in cost than 
                the total cost of the contract for which the offers are 
                solicited; or
                    ``(B) are of a type capable of being provided or 
                performed by a small business concern for that 
                department, agency, or activity under 2 or more 
                separate contracts that are smaller in cost than the 
                total cost of the contract for which the offers are 
                solicited;
            ``(2) the term `multiple award contract' means--
                    ``(A) a contract that is entered into by the 
                Administrator of General Services under the multiple 
                award schedule program referred to in section 
                2302(2)(C) of title 10, United States Code;
                    ``(B) a multiple award task order contract or 
                delivery order contract that is entered into under the 
                authority of sections 2304a through 2304d of title 10, 
                United States Code, or sections 303H through 303K of 
                the Federal Property and Administrative Services Act of 
                1949 (41 U.S.C. 253h through 253k); and
                    ``(C) any other indeterminate delivery, 
                indeterminate quantity contract that is entered into by 
                the head of a Federal agency with 2 or more sources 
                pursuant to the same solicitation; and
            ``(3) the term `senior procurement executive' means--
                    ``(A) with respect to a military department, the 
                official designated under section 16(3) of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 414(3)) as 
                the senior procurement executive for the military 
                department;
                    ``(B) with respect to a Defense Agency or a 
                Department of Defense Field Activity, the official so 
                designated for the Department of Defense; and
                    ``(C) with respect to a Federal department or 
                agency other than those referred to in subparagraphs 
                (A) and (B), the official so designated by that 
                department or agency.''.
    (b) Procurement Strategies.--Section 15(e) of the Small Business 
Act (15 U.S.C. 644(e)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``.--
                    ``(A) In general''; and
                    (B) by striking subparagraphs (B) and (C); and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Limitation on use of acquisition strategies involving 
        consolidation.--
                    ``(A) Certain defense contract requirements.--An 
                official of a military department, defense agency, or 
                Department of Defense Field Activity shall not execute 
                an acquisition strategy that includes a consolidation 
                of contract requirements of the military department, 
                agency, or activity with a total value in excess of 
                $5,000,000, unless the senior procurement executive 
                first--
                            ``(i) conducts market research;
                            ``(ii) identifies any alternative 
                        contracting approaches that would involve a 
                        lesser degree of consolidation of contract 
                        requirements; and
                            ``(iii) determines that the consolidation 
                        is necessary and justified.
                    ``(B) Certain civilian agency contract 
                requirements.--The head of a Federal agency not 
                described in subparagraph (A) that has contracting 
                authority shall not execute an acquisition strategy 
                that includes a consolidation of contract requirements 
                of the agency with a total value in excess of 
                $2,000,000, unless the senior procurement executive of 
the agency first--
                            ``(i) conducts market research;
                            ``(ii) identifies any alternative 
                        contracting approaches that would involve a 
                        lesser degree of consolidation of contract 
                        requirements; and
                            ``(iii) determines that the consolidation 
                        is necessary and justified.
                    ``(C) Additional requirements for higher value 
                consolidated contracts.--In addition to meeting the 
                requirements under subparagraph (A) or (B), a 
                procurement strategy by a civilian agency that includes 
                a consolidated contract valued at more than $5,000,000, 
                or by a defense agency that includes a consolidated 
                contract valued at more than $7,000,000 shall include--
                            ``(i) an assessment of the specific 
                        impediments to participation by small business 
                        concerns as prime contractors that will result 
                        from the consolidation;
                            ``(ii) actions designed to maximize small 
                        business participation as prime contractors, 
                        including provisions that encourage small 
                        business teaming for the consolidated 
                        requirement;
                            ``(iii) actions designed to maximize small 
                        business participation as subcontractors 
                        (including suppliers) at any tier under the 
                        contract or contracts that may be awarded to 
                        meet the requirements; and
                            ``(iv) the identification of the 
                        alternative strategies that would reduce or 
                        minimize the scope of the consolidation and the 
                        rationale for not choosing those alternatives.
                    ``(D) Necessary and justified.--A senior 
                procurement executive may determine that an acquisition 
                strategy involving a consolidation of contract 
                requirements is necessary and justified for purposes of 
                subparagraph (A), (B), or (C), if the benefits of the 
                acquisition strategy substantially exceed the benefits 
                of each of the possible alternative contracting 
                approaches identified under clause (ii) of any of those 
                subparagraphs, as applicable. However, savings in 
                administrative or personnel costs alone do not 
                constitute, for such purpose, a sufficient 
                justification for a consolidation of contract 
                requirements in a procurement, unless the total amount 
                of the cost savings is expected to be substantial in 
                relation to the total cost of the procurement.
                    ``(E) Benefits.--Benefits considered for purposes 
                of this paragraph may include cost and, regardless of 
                whether quantifiable in dollar amounts--
                            ``(i) quality;
                            ``(ii) acquisition cycle;
                            ``(iii) terms and conditions; and
                            ``(iv) any other benefit directly related 
                        to national security or homeland defense.''.
    (c) Report Requirements.--Section 15(p)(4)(B) of the Small Business 
Act (15 U.S.C. 644(p)(4)(B)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting the following: ``; and''; and
            (3) by adding at the end the following:
                            ``(iii) a description of best practices for 
                        maximizing small business prime and 
                        subcontracting opportunities.''.
    (d) Procurement Center Representatives.--Section 15(l) of the Small 
Business Act (15 U.S.C. 644(l)) is amended--
            (1) by striking ``(l)(1)'' and inserting ``(2)'';
            (2) by redesignating paragraphs (2) through (7) as 
        paragraphs (3) through (8), respectively;
            (3) by inserting before paragraph (2), as so redesignated, 
        the following:
    ``(l)(1) The Administration shall assign not fewer than 1 
procurement center representative at each major procurement center, in 
addition to no less than 1 for each State.'';
            (4) in paragraph (2), as redesignated, by striking ``to the 
        representative referred to in subsection (k)(6)'' and inserting 
        ``to the traditional procurement center representative and the 
        commercial market representative, with each such position 
        filled by a different individual, and each such representative 
        having separate and distinct duties and responsibilities.''; 
        and
            (5) by striking ``paragraph (2)'' each place that term 
        appears and inserting ``paragraph (3)''.
    (e) Additional to Technical Advisers.--Section 15(k)<DELETED>(8)</DELETED> 
of the Small Business Act (15 U.S.C. 644(k)<DELETED>(8)</DELETED>) is 
amended--
            (1) in paragraph (5), by striking ``bundled contract'' and 
        inserting ``consolidated contract''; and
            (2) in paragraph (8), by striking ``representative--'' and 
        inserting ``representative at each major procurement center 
        under subsection (l)(1)--''.
    (f) Conforming Amendments.--Section 15(p) of the Small Business Act 
(15 U.S.C. 644(p)) is amended--
            (1) in the subsection heading, by striking ``Bundled 
        Contracts'' and inserting ``Consolidated Contracts'';
            (2) in paragraph (1), in the paragraph heading, by striking 
        ``Bundled contract'' and inserting ``Consolidated contract'';
            (3) in paragraph (4), in the paragraph heading, by striking 
        ``contract bundling'' and inserting ``contract consolidation'';
            (4) by striking ``bundled contracts'' each place that term 
        appears and inserting ``consolidated contracts'';
            (5) by striking ``bundled contract'' each place that term 
        appears and inserting ``consolidated contract'';
            (6) by striking ``bundling of contract requirements'' each 
        place that term appears and inserting ``consolidation of 
        contract requirements'';
            (7) in paragraph (4)(B)(ii), by striking ``previously 
        bundled'' and inserting ``previously consolidated'';
            (8) in paragraph (4)(B)(ii)(I), by striking ``were 
        bundled'' and inserting ``were consolidated'';
            (9) in paragraph (4)(B)(ii)(II)(bb), by striking ``bundling 
        the contract requirements'' and inserting ``the consolidation 
        of contract requirements''; and
            (10) in paragraph (4)(B)(ii)(II)(cc), by striking ``bundled 
        status'' and inserting ``consolidated status''.
    (g) GAO Study and Report.--
            (1) Feasibility study required.--The Comptroller General of 
        the United States shall conduct a study of the feasibility of 
        setting thresholds, based on industry category, for permitting 
        the consolidation of contract requirements to proceed without 
        being subject to the additional benefit analyses required by 
        the amendments made by this section.
            (2) Considerations.--The study conducted under paragraph 
        (1) shall include consideration of thresholds based on--
                    (A) the dollar value of the overall prime contract 
                at issue (including the average dollar value of a prime 
                contract in each industry category);
                    (B) the portion of such prime contract amounts that 
                could potentially include small business participation 
                as subcontractors;
                    (C) the availability of small business concerns in 
                each industry that have the capabilities and resources 
                to fulfill prime contract requirements; and
                    (D) such other criteria that the Comptroller 
                determines relevant.
            (3) Report.--Not later than June 30, 2004, the Comptroller 
        General shall submit a report to Congress and the 
        Administration on the results of the study conducted under this 
        subsection, together with any recommendations with legislative 
        or regulatory action.

SEC. 402. AGENCY ACCOUNTABILITY.

    (a) Agency Responsibilities.--Section 15(g)(2) of the Small 
Business Act (15 U.S.C. 644(g)(2)) is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by striking ``shall, after consultation'' and inserting 
        the following: ``shall--
            ``(i) after consultation'';
            (3) by striking ``agency. Goals established'' and inserting 
        the following: ``agency;
            ``(ii) identify a percentage of the procurement budget of 
        the agency to be awarded to small business concerns, in 
        consultation with the Office of Small and Disadvantaged 
        Business Utilization of the agency, which information shall be 
        included in the strategic plan required under section 306 of 
        title 5, United States Code, and the annual budget submission 
        to Congress by that agency, and, upon request, in any testimony 
        provided by that agency before <DELETED>the</DELETED> Congress 
        in connection with the budget process; and
            ``(iii) report, as part of its annual performance plan, 
        required under section 1115 of title 31, United States Code, 
        the extent to which the agency achieved the goals referred to 
        in clause (ii), and appropriate justification for any failure 
        to do so.
    ``(B) Goals established'';
            (4) by striking ``Whenever'' and inserting the following:
    ``(C) Whenever'';
            (5) by striking ``For the purpose of'' and inserting the 
        following:
    ``(D) For the purpose of'';
            (6) in the last sentence--
                    (A) by striking ``(A) contracts'' and inserting 
                ``(i) contracts''; and
                    (B) by striking ``(B) contracts'' and inserting 
                ``(ii) contracts''; and
            (7) by adding at the end the following:
    ``(E)(i) Each procurement employee described in clause (iii)--
            <DELETED>``(I) shall have as an annual performance 
        evaluation factor, where appropriate, the success of that 
        procurement employee in small business utilization, in 
        accordance with the goals established under this subsection; 
        and
        </DELETED>    ``<DELETED>(II)</DELETED>(I) shall communicate to 
        their subordinates the importance of achieving small business 
        goals<DELETED>.</DELETED>; and
            ``(II) shall have as an annual performance evaluation 
        factor, where appropriate, the success of that procurement 
        employee in small business utilization, in accordance with the 
        goals established under this subsection.
    ``(ii) An appropriate percentage of any performance-related bonus 
awarded to a procurement employee described in clause (iii) shall be 
withheld, where appropriate, for failure to achieve the goals 
established under this subsection.
    ``(iii) A procurement employee described in this clause is a senior 
procurement executive, senior program manager, or small and 
disadvantaged business utilization manager of a Federal agency having 
contracting authority.''.
    (b) Small and Disadvantaged Business Utilization.--Section 15(k)(3) 
of the Small Business Act (15 U.S.C. 644(k)(3)) is amended to read as 
follows:
            ``(3) be responsible only to, and report directly to, the 
        head of such agency, except that the Director of Small and 
        Disadvantaged Business Utilization for the Department of 
        Defense shall be responsible only to, and report directly to, 
        the Undersecretary of Defense for Acquisition, Technology, and 
        Logistics,''.
    (c) Reports on Small Business Utilization.--Section 10(d) of the 
Small Business Act (15 U.S.C. 639(d)) is amended--
            (1) by inserting ``and each agency that is a member of the 
        President's Management Council (or any successor thereto)'' 
        after ``Department of Defense'' the first place that term 
        appears; and
            (2) by inserting ``or that agency'' after ``Department of 
        Defense'' the second place that term appears.
    (d) Technical Correction.--
            (1) In general.--Section 502(b) of the Veterans 
        Entrepreneurship and Small Business Development Act of 1999 
        (Public Law 106-50, 113 Stat. 248) is amended by striking 
        ``Section 15'' and inserting ``Section 15(g)(2)''.
            (2) Effect.--The amendment made by paragraph (1) shall be 
        deemed to have the same effective date as section 502(b) of the 
        Veterans Entrepreneurship and Small Business Development Act of 
        1999.

SEC. 403. SMALL BUSINESS PARTICIPATION IN PRIME CONTRACTING.

    (a) Participation in Multiple Award Contracts.--Section 15(g) of 
the Small Business Act (15 U.S.C. 644(g)) is amended by adding at the 
end the following:
    ``(3) The governmentwide goal for participation by small business 
concerns in any multiple award contract shall be established at not 
less than 23 percent of the total dollar value of all awards under that 
contract.''.
    (b) Reserved Contracts.--Section 15(j) of the Small Business Act 
(15 U.S.C. 644(j)) is amended--
            (1) in paragraph (1), by inserting ``, including any order 
        of 1 or more Federal Supply Schedule items,'' after ``goods and 
        services''; and
            (2) by adding at the end the following:
    ``(4) Any adjustment to the simplified acquisition threshold (as 
defined in section 4(11) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(11))), shall be immediately matched by an identical 
adjustment to the small business reserve for purposes of this 
subsection.''.

SEC. 404. SMALL BUSINESS PARTICIPATION IN SUBCONTRACTING.

    (a) Certifications Required.--Section 8(d)(6) of the Small Business 
Act (15 U.S.C. 637(d)(6)) is amended--
            (1) in subparagraph (E), by striking ``and'' at the end;
            (2) in subparagraph (F), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(G) the name and signature of the individual that is the 
        president, chief executive officer, or head of the entity, 
        certifying that subcontracting data provided are accurate and 
        complete; and
            ``(H) certification that the offeror or bidder will acquire 
        articles, equipment, supplies, services, or materials, or 
        obtain the performance of construction work from small business 
        concerns in the amount and quality used in preparing the bid or 
        proposal, unless such small business concerns are no longer in 
        business or can no longer meet the quality, quantity, or 
        delivery date.''.
    (b) Penalties for False Certifications.--Section 16(f) of the Small 
Business Act (14 U.S.C. 645(f)) is amended by inserting ``or 
8(d)(6)(G))'' before ``of this Act''.

SEC. 405. EVALUATING SUBCONTRACT PARTICIPATION IN AWARDING CONTRACTS.

    (a) Significant Factors.--Section 8(d)(4)(G) of the Small Business 
Act (15 U.S.C. 637(d)(4)(G)) is amended by striking ``a bundled'' and 
inserting ``any''.
    (b) Evaluation Reports.--Section 8(d)(10) of the Small Business Act 
(15 U.S.C. 637(d)(10)) is amended--
            (1) by striking ``is authorized to'' and inserting 
        ``shall'';
            (2) in subparagraph (B), by striking ``and'' at the end;
            (3) in subparagraph (C), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(D) report the results of each evaluation under 
        subparagraph (C) to the appropriate contracting officers.''.
    (c) Centralized Database; Payments Pending Reports.--Section 8(d) 
of the Small Business Act (15 U.S.C. 637(d)) is amended--
            (1) by redesignating paragraph (11) as paragraph (13); and
            (2) by inserting after paragraph (10) the following:
    ``(11) Centralized database.--The results of an evaluation under 
paragraph (10)(C) shall be included in a national centralized 
governmentwide database.
    ``(12) Payments pending reports.--Each Federal agency having 
contracting authority shall ensure that the terms of each contract for 
goods and services includes a provision allowing the contracting 
officer of an agency to withhold an appropriate amount of payment with 
respect to a contract (depending on the size of the contract) until the 
date of receipt of complete, accurate, and timely subcontracting 
reports in accordance with paragraph (6)(G).''.
    (d) Referral of Material Breach to Inspectors General.--Section 
8(d)(8) of the Small Business Act (15 U.S.C. 637(d)(8)) is amended by 
adding at the end the following: ``A material breach described in this 
paragraph shall be referred for investigation to the Inspector General 
(or the equivalent) of the affected agency.''.

SEC. 406. DIRECT PAYMENTS TO SUBCONTRACTORS.

    (a) In General.--Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)), as amended by section 405, is further amended by adding at the 
end the following:
    ``(14) Timely payment to small business subcontractors.--
            ``(A) In general.--Subject to subparagraph (B), the failure 
        of a civilian agency prime contractor, as defined in 
        subparagraph (D), to make a timely payment, as determined by 
        the contract with the subcontractor, to a subcontractor that is 
        a small business concern shall be a material breach of the 
        contract with the Federal agency.
            ``(B) Consideration of performance.--Before making a 
        determination under subparagraph (A), the contracting officer 
        shall consider all reasonable issues regarding the performance, 
        or lack of performance, of the subcontractor.
            ``(C) Withholding of payments.--Not later than 30 days 
        after the date on which a material breach under subparagraph 
        (A) is determined by the contracting officer, the Federal 
        agency may withhold any amounts due and owing the subcontractor 
        from payments due to the prime contractor and pay such amounts 
        directly to the subcontractor.
            ``(D) Defined term.--As used in this paragraph, the term 
        `civilian agency prime contractor' means a prime contractor 
        that offers any combination of services or manufactured goods 
        to Federal agencies other than the Department of Defense or 
        agencies with responsibility for homeland security or national 
        security.''.
    (b) Sunset.--The amendment made by this section shall remain in 
effect during the period beginning on the date of enactment of this Act 
and ending on September 30, 2006.

SEC. 407. WOMEN-OWNED SMALL BUSINESS INDUSTRY STUDY.

    Section 8(m)(4) of the Small Business Act (15 U.S.C. 637(m)(4)) is 
amended to read as follows:
            ``(4) GAO identification of industries.--
                    ``(A) Study.--The Comptroller General of the United 
                States 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) Report to congress.--Not later than December 
                31, 2003, the Comptroller General shall submit a report 
                to Congress on the results of the study conducted under 
subparagraph (A), together with any recommendations for legislative 
action.
                    ``(C) Assistance from other agencies.--The 
                Comptroller General may request of any Federal agency, 
                and such agency shall provide, such information as the 
                Comptroller General determines necessary in carrying 
                out this paragraph, to the extent otherwise permitted 
                by law.''.

SEC. 408. HUBZONE AUTHORIZATIONS.

    Section 31(d) of the Small Business Act (15 U.S.C. 657a(d)) is 
amended--
            (1) by striking ``2001'' and inserting ``2004''; and
            (2) by striking ``2003'' and inserting ``2006''.

SEC. 409. DEFINITION OF HUBZONE; TREATMENT OF CERTAIN FORMER MILITARY 
              INSTALLATION LANDS AS HUBZONES.

    (a) Base Closure Areas.--Section 3(p)(1) of the Small Business Act 
(15 U.S.C. 632(p)(1)) is amended--
            (1) in subparagraph (C), by striking ``or'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(E) base closure areas.''.
    (b) Definition.--Section 3(p)(4) of the Small Business Act (15 
U.S.C. 632(p)(4)) is amended by adding at the end the following:
                    ``(D) Base closure area.--The term `base closure 
                area' means lands within the external boundaries of a 
                military installation that were closed through a 
                privatization process under the authority of--
                            ``(i) the Defense Base Closure and 
                        Realignment Act of 1990 (part A of title XXIX 
                        of Division B of Public Law 101-510; 10 U.S.C. 
                        2687 note);
                            ``(ii) title II of the Defense 
                        Authorization Amendments and Base Closure and 
                        Realignment Act (Public Law 100-526; 10 U.S.C. 
                        2687 note);
                            ``(iii) section 2687 of title 10, United 
                        States Code; or
                            ``(iv) any other provision of law 
                        authorizing or directing the Secretary of 
                        Defense or the Secretary of a military 
                        department to dispose of real property at the 
                        military installation for purposes relating to 
                        base closures of redevelopment, while retaining 
                        the authority to enter into a leaseback of all 
                        or a portion of the property for military 
                        use.''.

SEC. 410. DEFINITION OF HUBZONE SMALL BUSINESS CONCERN.

    Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is 
amended--
            (1) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively; and
            (2) by inserting after paragraph (3) the following:
            ``(4) Rule of construction relating to ownership.--For 
        purposes of paragraph (3)(A), the term `person' includes any 
        small business investment company, specialized small business 
        investment company, New Markets Venture Capital company (as 
        those terms are defined in sections 103 and 351, respectively, 
        of the Small Business Investment Act of 1958 (15 U.S.C. 662, 
        689), or other similar investment company, as determined by the 
        Administrator, if any such company comprises not more than 15 
        percent of the ownership of the subject small business 
        concern.''.

SEC. 411. ACQUISITION REGULATIONS.

    Not later than 180 days after the date of enactment of this Act, 
the <DELETED>G</DELETED>governmentwide procurement regulations issued 
under sections 6(a) and 25(c) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 405(a) and 421(c)) and the procurement 
regulations described in section 25(c)(2) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 421(c)(2)) that are issued by the 
Department of Defense shall be amended as necessary to carry out this 
title and the amendments made by this title.

                         TITLE V--MISCELLANEOUS

SEC. 501. MINORITY SMALL BUSINESS AND CAPITAL OWNERSHIP DEVELOPMENT 
              PROGRAM.

    (a) Name Change.--Sections 4(b), 7(j), and 8(a) of the Small 
Business Act (15 U.S.C. 633(b), 636(j), and 637(a)) are amended by 
striking ``Minority Small Business and Capital Ownership Development'' 
each place it appears and inserting ``Business Development''.
    (b) Conforming Amendments.--The Small Business Act (15 U.S.C. 631 
et seq.) is amended--
            (1) in section 2(d)(2)(B)(ii), by striking ``small business 
        and capital ownership development program'' and inserting 
        ``small business development program'';
            (2) in section 7(j)(10), by striking ``small business and 
        capital ownership development program'' and inserting ``small 
        business development program'';
            (3) in section 7(j)(12)(A), by striking ``Capital Ownership 
        Development Program'' and inserting ``Business Development 
        Program''; and
            (4) in section 8(a)(21)(B)(v)(I), by striking ``Capital 
        Ownership Development Program'' and inserting ``Business 
        Development Program.
    (c) Annual Report.--Section 8(a)(20)(A) of the Small Business Act 
(15 U.S.C. 637(a)(20)(A)) is amended by striking ``semiannually report 
to their assigned Business Opportunity Specialist'' and inserting 
``annually submit, to their assigned Business Opportunity Specialist, a 
report, which shall include''.

SEC. 502. EXTENSION OF <DELETED>PROGRAM</DELETED> AUTHORITY FOR 
              TECHNOLOGY ASSISTANCE PROGRAM.

    (a) Rural Outreach.--Section 9(s)(2) of the Small Business Act (15 
U.S.C. 638(s)(2)) is amended by striking ``2005'' and inserting 
``2006''.
    (b) FAST Program.--Section 34 of the Small Business Act (15 U.S.C. 
657d) is amended--
            (1) in subsection (h), by striking ``2005'' each place it 
        appears and inserting ``2006''; and
            (2) by striking ``September 30, 2005'' and inserting 
        ``September 30, 2006''.

SEC. 503. BUSINESSLINC REPORT TO CONGRESS.

    Section 8(n) of the Small Business Act (15 U.S.C. 637(n)) is 
amended by adding at the end the following:
            ``(4) Annual report.--
                    ``(A) In general.--The Associate Administrator of 
                Business Development shall collect data on the 
                BusinessLINC program and submit an annual report by 
                April 30 of each year on the effectiveness of the 
                program to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House.
                    ``(B) Contents.--The report submitted under 
                subparagraph (A) shall include--
                            ``(i) the number of programs administered 
                        in each State;
                            ``(ii) the corresponding grant awards and 
                        the date of each award;
                            ``(iii) the dollar amount of the contracts 
                        in effect in each State as a result of the 
                        BusinessLINC program; and
                            ``(iv) the number of teaming arrangements 
                        or partnerships created as a result of the 
                        BusinessLINC program.''.




                                                       Calendar No. 248

108th CONGRESS

  1st Session

                                S. 1375

                          [Report No. 108-124]

_______________________________________________________________________

                                 A BILL

  To provide for the reauthorization of programs administered by the 
         Small Business Administration, and for other purposes.

_______________________________________________________________________

                            August 26, 2003

                        Reported with amendments