[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3778 Placed on Calendar Senate (PCS)]







                                                       Calendar No. 577
109th CONGRESS
  2d Session
                                S. 3778

    To reauthorize and improve the Small Business Act and the Small 
        Business Investment Act of 1958, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 2, 2006

 Ms. Snowe, from the Committee on Small Business and Entrepreneurship, 
 reported the following original bill; which was read twice and placed 
                            on the calendar

_______________________________________________________________________

                                 A BILL


 
    To reauthorize and improve the Small Business Act and the Small 
        Business Investment Act of 1958, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Reauthorization and Improvements Act of 2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                  TITLE I--REAUTHORIZATION OF PROGRAMS

Sec. 101. Reauthorization of programs in Small Business Act.
Sec. 102. Other reauthorizations.
Sec. 103. Conforming technical change in average smaller loan size.
Sec. 104. Accurate subsidy model.
Sec. 105. Inclusion of persons with disabilities.
              TITLE II--NATIONAL PREFERRED LENDERS PROGRAM

Sec. 201. National Preferred Lenders Program.
Sec. 202. Maximum loan amount.
Sec. 203. Alternative size standard.
Sec. 204. Minority small business development.
Sec. 205. Lowering of fees.
            TITLE III--SMALL BUSINESS INVESTMENT ACT OF 1958

                 Subtitle A--Debentures and Securities

Sec. 301. Participating debenture companies.
Sec. 302. Participating securities.
                   Subtitle B--Development Companies

Sec. 321. Development company loan programs.
Sec. 322. Loan liquidations.
Sec. 323. Additional equity injections.
Sec. 324. Businesses in low-income areas.
Sec. 325. Combinations of certain goals.
Sec. 326. Maximum 504 and 7(a) loan eligibility.
Sec. 327. Refinancing under the Local Development Business Loan 
                            Program.
Sec. 328. Technical correction.
Sec. 329. Definitions for the Small Business Investment Act of 1958.
Sec. 330. Repeal of sunset on reserve requirements for premier 
                            certified lenders.
Sec. 331. Certified development companies.
Sec. 332. Conforming amendments.
Sec. 333. Closing costs.
Sec. 334. Definition of rural.
Sec. 335. Regulations and effective date.
Sec. 336. Low-income geographic areas.
Sec. 337. Limitation on time for final approval of companies.
                      TITLE IV--DISASTER RESPONSE

                   Subtitle A--Private Disaster Loans

Sec. 401. Private disaster loans.
Sec. 402. Technical and conforming amendments.
             Subtitle B--Disaster Relief and Reconstruction

Sec. 421. Definition of disaster area.
Sec. 422. Disaster loans to nonprofits.
Sec. 423. Disaster loan amounts.
Sec. 424. Small business development center portability grants.
Sec. 425. Assistance to out-of-State businesses.
Sec. 426. Outreach programs.
Sec. 427. Small business bonding threshold.
Sec. 428. Small business participation.
Sec. 429. Emergency procurement authority.
Sec. 430. Paperwork reciprocity for small disaster contractors.
Sec. 431. Small business multiple award disaster contracts.
Sec. 432. Contracting priority for local small businesses.
Sec. 433. Termination of program.
Sec. 434. Increasing collateral requirements.
                     Subtitle C--Disaster Response

Sec. 451. Definitions.
Sec. 452. State bridge loan guarantee.
Sec. 453. Catastrophic national disasters.
Sec. 454. Public awareness of disaster declaration and application 
                            periods.
Sec. 455. Consistency between Administration regulations and standard 
                            operating procedures.
Sec. 456. Processing disaster loans.
Sec. 457. Development and implementation of major disaster response 
                            plan.
Sec. 458. Congressional oversight.
                     Subtitle D--Energy Emergencies

Sec. 471. Findings.
Sec. 472. Small business energy emergency disaster loan program.
Sec. 473. Agricultural producer emergency loans.
Sec. 474. Guidelines and rulemaking.
Sec. 475. Reports.
         TITLE V--VETERANS AND MEMBERS OF THE GUARD AND RESERVE

Sec. 501. Definitions.
                          Subtitle A--Veterans

Sec. 521. Findings.
Sec. 522. Increased funding for the Office of Veterans Business 
                            Development.
Sec. 523. Extension of Advisory Committee on Veterans Business Affairs.
Sec. 524. Relief from time limitations for veteran-owned small 
                            businesses.
                     Subtitle B--Guard and Reserve

Sec. 541. Guard and Reserve loans.
Sec. 542. Study of insurance program for members of the Guard and 
                            Reserve.
Sec. 543. Grant assistance for military Reservists' small business 
                            concerns.
                    Subtitle C--Veterans Corporation

Sec. 561. Purposes of the Corporation.
Sec. 562. Management of the Corporation.
Sec. 563. Timing of transfer of Advisory Committee duties.
Sec. 564. Authorization of appropriations.
Sec. 565. Privatization.
           TITLE VI--ENERGY LOANS FOR SMALL BUSINESS CONCERNS

Sec. 601. Express loans for renewable energy and energy efficiency.
                      TITLE VII--HEALTH INSURANCE

Sec. 701. Purpose.
Sec. 702. Definitions.
Sec. 703. Small Business Health Insurance Information Pilot Program.
Sec. 704. Reports.
Sec. 705. Authorization of appropriations.
         TITLE VIII--WOMEN'S SMALL BUSINESS OWNERSHIP PROGRAMS

Sec. 801. Office of Women's Business Ownership.
Sec. 802. Women's Business Center Program.
Sec. 803. National Women's Business Council.
Sec. 804. Interagency Committee on Women's Business Enterprise.
Sec. 805. Preserving the independence of the National Women's Business 
                            Council.
                     TITLE IX--INTERNATIONAL TRADE

Sec. 901. Small Business Administration Associate Administrator for 
                            International Trade.
Sec. 902. Office of International Trade.
Sec. 903. International trade loans.
                       TITLE X--CONTRACT BUNDLING

Sec. 1001. Presidential policy.
Sec. 1002. Leadership and oversight.
Sec. 1003. Removal of impediments to contract bundling database 
                            implementation.
                   TITLE XI--SUBCONTRACTING INTEGRITY

Sec. 1101. GAO recommendations on subcontracting misrepresentations.
Sec. 1102. Small business subcontracting bait-and-switch fraud.
Sec. 1103. Evaluating subcontracting participation.
Sec. 1104. Pilot program on direct payments to subcontractors.
Sec. 1105. Pilot program.
       TITLE XII--SMALL BUSINESS PROCUREMENT PROGRAMS IMPROVEMENT

Sec. 1201. Definitions.
                      Subtitle A--HUBZone Program

Sec. 1211. HUBZone reauthorization.
Sec. 1212. Equity for suburban HUBZones.
   Subtitle B--Service-Disabled Veteran-Owned Small Business Program

Sec. 1221. Certification.
Sec. 1222. Temporary waiver.
Sec. 1223. Transition period for surviving spouses or permanent care 
                            givers.
Sec. 1224. Contracting authority.
             Subtitle C--Women-Owned Small Business Program

Sec. 1231. Implementation deadline.
Sec. 1232. Certification.
            Subtitle D--Small Disadvantaged Business Program

Sec. 1241. Certification.
Sec. 1242. Net worth threshold.
                    Subtitle E--BusinessLINC Program

Sec. 1251. BusinessLINC Program.
                    TITLE XIII--ACQUISITION PROCESS

Sec. 1301. Procurement improvements.
Sec. 1302. Reservation of prime contract awards for small businesses.
Sec. 1303. GAO study of reporting systems.
Sec. 1304. Meeting small business goals.
Sec. 1305. Micropurchase guidelines.
Sec. 1306. Reporting on overseas contracts.
Sec. 1307. Agency accountability.
          TITLE XIV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

Sec. 1401. Policy and presumptions.
Sec. 1402. Annual certification.
Sec. 1403. SBA suspensions and debarments authority.
Sec. 1404. Meaningful protests of small business size and status.
Sec. 1405. Training for contracting and enforcement personnel.
Sec. 1406. Protests of sole source awards.
Sec. 1407. Small business size and status for purpose of multiple award 
                            contracts.
Sec. 1408. Size standards development.
Sec. 1409. Full-time employee equivalents.
    TITLE XV--SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS 
                      TECHNOLOGY TRANSFER PROGRAMS

Sec. 1501. Definitions.
Sec. 1502. Congressional findings and policy.
            Subtitle A--Small Business Innovation Leadership

Sec. 1511. Status of the SBA Office of Technology; National Advisory 
                            Board; transfer plan.
       Subtitle B--Fair Access to Federal Innovations Investments

Sec. 1521. Accuracy in funding base calculations; Comptroller General's 
                            audits.
Sec. 1522. SBIR cap increase.
Sec. 1523. STTR cap increase.
Sec. 1524. Adjustments in SBIR and STTR award levels.
Sec. 1525. Majority-venture investments in SBIR firms.
         Subtitle C--Acquisition of Small Business Innovations

Sec. 1531. National SBIR and STTR technology insertion goal; reporting 
                            requirements.
Sec. 1532. Intellectual property protections for small business 
                            innovations.
Sec. 1533. SBIR and STTR special acquisition preference.
Sec. 1534. SBIR and STTR mentor-protege programs.
Sec. 1535. Subcontracting with Federal laboratories and research and 
                            development centers.
Sec. 1536. Innovation commercialization pilot programs.
Sec. 1537. Enforcement.
   Subtitle D--Technical and Financial Assistance for Small Business 
                               Innovation

Sec. 1541. Reauthorization and enhancement of State, local, and rural 
                            innovation assistance programs.
Sec. 1542. Continued evaluation by the National Academy of Sciences.
Sec. 1543. Phase II innovation development challenge pilot program.
Sec. 1544. Encouraging innovation in energy efficiency.
Sec. 1545. SBIR-STEM Workforce Development Grant Pilot Program.
                       Subtitle E--Implementation

Sec. 1551. Conforming amendments to the SBIR and the STTR policy 
                            directives.
     TITLE XVI--NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM

Sec. 1601. Short title.
Sec. 1602. Native American Small Business Development Program.
Sec. 1603. Pilot programs.
       TITLE XVII--NATIONAL SMALL BUSINESS REGULATORY ASSISTANCE

Sec. 1701. Short title.
Sec. 1702. Purpose.
Sec. 1703. Small Business Regulatory Assistance Pilot Program.
Sec. 1704. Rulemaking.
            TITLE XVIII--INTERMEDIARY LENDING PILOT PROGRAM

Sec. 1801. Short title.
Sec. 1802. Findings.
Sec. 1803. Small business intermediary lending pilot program.
                      TITLE XIX--OTHER PROVISIONS

Sec. 1901. Compliance assistance.
Sec. 1902. Appointment of officials.
Sec. 1903. Second-stage Pilot Program.
Sec. 1904. PRIME reauthorization and transfer to the Small Business 
                            Act.
Sec. 1905. Child Care Lending Pilot Program.
Sec. 1906. Study on the impact of the low documentation loan program.
Sec. 1907. Enforcement Ombudsman.
Sec. 1908. Minority entrepreneurship and innovation pilot program.
Sec. 1909. Office of Native American Affairs pilot program.
Sec. 1910. Institutions of higher education.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act (15 U.S.C. 
        632); and
            (3) the term ``small business concern owned and controlled 
        by socially and economically disadvantaged individuals'' has 
        the same meaning as in section 8 of the Small Business Act (15 
        U.S.C. 637).

                  TITLE I--REAUTHORIZATION OF PROGRAMS

SEC. 101. REAUTHORIZATION OF PROGRAMS IN SMALL BUSINESS ACT.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) in section 7--
                    (A) in subsection (b)(1)(C), by striking ``fiscal 
                years 2000 through 2004'' and inserting ``fiscal years 
                2007 through 2009''; and
                    (B) in subsection (m)--
                            (i) in paragraph (4)(F)(ii), by striking 
                        ``not more than 20'' and all that follows 
                        through the period at the end and inserting 
                        ``not more than 30 grantees in each of fiscal 
                        years 2007 through 2009, each of whom may 
                        receive a grant under this subparagraph in an 
                        amount not to exceed $200,000 per year.''; and
                            (ii) in paragraph (12), in the matter 
                        preceding subparagraph (A), by striking 
                        ``during fiscal years 1998 through 2000'' and 
                        inserting ``during fiscal years 2007 through 
                        2009'';
            (2) in section 9--
                    (A) by striking subsection (m);
                    (B) in subsection (n)(1), by striking ``through 
                fiscal year 2009''; and
                    (C) in subsection (s)(2), by striking ``fiscal 
                years 2000 through 2005'' and inserting ``fiscal years 
                2007 through 2009'';
            (3) in section 20, by striking subsections (d) and (e) and 
        inserting the following:
    ``(d) Fiscal Year 2007.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2007:
                    ``(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 $27,050,000,000 in 
                deferred participation loans and other financings, and 
                of such sum, the Administrator is authorized to make--
                            ``(i) $18,000,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $8,500,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) and as provided in section 504 
                        of the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section (7)(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administrator is authorized to make--
                            ``(i) $500,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $4,000,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administrator is authorized to enter into 
                guarantees not to exceed $6,500,000,000, of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administrator is authorized to make 
                grants or enter into cooperative agreements for a total 
                of $7,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) In general.--There are authorized to be 
                appropriated to the Administrator for fiscal year 2007, 
                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 pursuant to section 7(b), and to 
                carry out the Small Business Investment Act of 1958, 
                including salaries and expenses of the Administration.
                    ``(B) Limitations.--Notwithstanding any other 
                provision of this paragraph, for fiscal year 2007--
                            ``(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) in gross amounts of not more 
                        than $2,000,000.
    ``(e) Fiscal Year 2008.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2008:
                    ``(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 $29,550,000,000 in 
                deferred participation loans and other financings, and 
                of such sum, the Administrator is authorized to make--
                            ``(i) $19,500,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $9,500,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) and as provided in section 504 
                        of the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section (7)(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administrator is authorized to make--
                            ``(i) $600,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $4,000,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administrator is authorized to enter into 
                guarantees not to exceed $7,000,000,000, of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administrator is authorized to make 
                grants or enter into cooperative agreements for a total 
                of $8,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) In general.--There are authorized to be 
                appropriated to the Administrator for fiscal year 2008, 
                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 pursuant to section 7(b), and to 
                carry out the Small Business Investment Act of 1958, 
                including salaries and expenses of the Administration.
                    ``(B) Limitations.--Notwithstanding any other 
                provision of this paragraph, for fiscal year 2008--
                            ``(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) in gross amounts of not more 
                        than $2,000,000.
    ``(f) Fiscal Year 2009.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2009:
                    ``(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 $32,050,000,000 in 
                deferred participation loans and other financings, and 
                of such sum, the Administrator is authorized to make--
                            ``(i) $21,000,000,000 in general business 
                        loans, as provided in section 7(a);
                            ``(ii) $10,500,000,000 in certified 
                        development company financings, as provided in 
                        section 7(a)(13) and as provided in section 504 
                        of the Small Business Investment Act of 1958;
                            ``(iii) $500,000,000 in loans, as provided 
                        in section (7)(a)(21); and
                            ``(iv) $50,000,000 in loans, as provided in 
                        section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administrator is authorized to make--
                            ``(i) $700,000,000 in purchases of 
                        participating securities; and
                            ``(ii) $4,000,000,000 in guarantees of 
                        debentures.
                    ``(D) For the programs authorized by part B of 
                title IV of the Small Business Investment Act of 1958, 
                the Administrator is authorized to enter into 
                guarantees not to exceed $7,500,000,000, of which not 
                more than 50 percent may be in bonds approved pursuant 
                to section 411(a)(3) of that Act.
                    ``(E) The Administrator is authorized to make 
                grants or enter into cooperative agreements for a total 
                of $9,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) In general.--There are authorized to be 
                appropriated to the Administrator for fiscal year 2009, 
                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 pursuant to section 7(b), and to 
                carry out the Small Business Investment Act of 1958, 
                including salaries and expenses of the Administration.
                    ``(B) Limitations.--Notwithstanding any other 
                provision of this paragraph, for fiscal year 2009--
                            ``(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) in gross amounts of not more 
                        than $2,000,000.'';
            (4) in section 21--
                    (A) in subsection (a)(4)(C), by amending clause 
                (vii) to read as follows:
                            ``(vii) Authorization of appropriations.--
                        There are authorized to be appropriated to 
                        carry out this subparagraph--
                                    ``(I) $135,000,000 for fiscal year 
                                2007;
                                    ``(II) $140,000,000 for fiscal year 
                                2008; and
                                    ``(III) $145,000,000 for fiscal 
                                year 2009.''; and
                    (B) in subsection (c)(3)(T), by striking ``October 
                1, 2006'' and inserting ``October 1, 2009'';
            (5) in section 27(g)--
                    (A) in paragraph (1), by striking ``fiscal years 
                2005 and 2006'' and inserting ``fiscal years 2007 
                through 2009''; and
                    (B) in paragraph (2), by striking ``fiscal years 
                2005 and 2006'' and inserting ``fiscal years 2007 
                through 2009'';
            (6) in section 32(c), by striking ``to carry out this 
        section'' and all that follow through the period at the end and 
        inserting ``to carry out this section, $2,000,000 for each of 
        fiscal years 2007 through 2009.''; and
            (7) in section 34(i), by striking ``September 30, 2005'' 
        and inserting ``September 30, 2009''.

SEC. 102. OTHER REAUTHORIZATIONS.

    (a) New Markets Venture Capital Program.--Section 368(a) of the 
Small Business Investment Act of 1958 (15 U.S.C. 689q(a)) is amended, 
in the matter preceding paragraph (1), by striking ``fiscal years 2001 
through 2006'' and inserting ``fiscal years 2007 through 2009''.
    (b) Gift Acceptance and Cosponsorship Authority.--Section 132(c) of 
the Small Business Reauthorization and Manufacturing Assistance Act of 
2004 (15 U.S.C. 633 note) is amended by striking ``October 1, 2006'' 
and inserting ``October 1, 2009''.

SEC. 103. CONFORMING TECHNICAL 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''.

SEC. 104. 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 2008 budget, that is 
        more accurate than the subsidy model in effect on the day 
        before the date of enactment of this paragraph.''.

SEC. 105. INCLUSION OF PERSONS WITH DISABILITIES.

    Section 7(m)(1)(A)(i) of the Small Business Act (15 U.S.C. 
636(m)(1)(A)(i)) is amended by inserting ``persons with disabilities,'' 
before ``and minority''.

              TITLE II--NATIONAL PREFERRED LENDERS PROGRAM

SEC. 201. NATIONAL PREFERRED LENDERS PROGRAM.

    Section 7(a)(2) of the Small Business Act (15 U.S.C. 636(a)(2)) is 
amended by adding at the end the following:
                    ``(E) National preferred lenders program.--
                            ``(i) In general.--The Administrator shall 
                        establish a National Preferred Lenders Program 
                        by regulation.
                            ``(ii) Existing preferred lenders.--Any 
                        preferred lender authorized by the 
                        Administrator to operate as a preferred lender 
                        on a national basis prior to the date of 
                        enactment of the Small Business Reauthorization 
                        and Improvements Act of 2006, shall continue 
                        that status to the extent that the lender 
                        continues to meet the qualifications for 
                        preferred lender status under this section.''.

SEC. 202. MAXIMUM LOAN AMOUNT.

    Section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 
636(a)(3)(A)) is amended by striking ``$1,500,000 (or if the gross loan 
amount would exceed $2,000,000'' and inserting ``$2,250,000 (or if the 
gross loan amount would exceed $3,000,000''.

SEC. 203. 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.--
            ``(A) In general.--When establishing''; and
            (2) by adding at the end the following:
            ``(B) Alternative size standard.--
                    ``(i) In general.--Not later than 180 days after 
                the date of enactment of this subparagraph, the 
                Administrator shall establish an alternative size 
                standard under paragraph (2), that shall be applicable 
                to loan applicants under section 7(a) of this Act or 
                under title V of the Small Business Investment Act of 
                1958 (15 U.S.C. 695 et seq.).
                    ``(ii) Criteria.--The alternative size standard 
                established under clause (i) shall utilize the maximum 
                net worth and maximum net income of the prospective 
                borrower as an alternative to the use of industry 
                standards.
                    ``(iii) Interim rule.--Until the Administrator 
                establishes an alternative size standard under clause 
                (i), the Administrator shall use the alternative size 
                standard in section 121.301(b) of title 13, Code of 
                Federal Regulations, for loan applicants under section 
                7(a) of this Act or under title V of the Small Business 
                Investment Act of 1958 (15 U.S.C. 695 et seq.).''.

SEC. 204. MINORITY SMALL BUSINESS DEVELOPMENT.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--
            (1) by redesignating section 37 as section 41; and
            (2) by inserting after section 36 the following:

``SEC. 37. MINORITY SMALL BUSINESS DEVELOPMENT.

    ``(a) Office of Minority Small Business Development.--There is 
established in the Administration an Office of Minority Small Business 
Development, which shall be administered by the Associate Administrator 
for Minority Small Business Development (in this section referred to as 
the `Associate Administrator') appointed under section 4(b)(1).
    ``(b) Associate Administrator for Minority Small Business 
Development.--The Associate Administrator--
            ``(1) shall be either--
                    ``(A) an appointee in the Senior Executive Service 
                who is a career appointee; or
                    ``(B) an employee in the competitive service;
            ``(2) shall be responsible for the formulation, execution, 
        and promotion of policies and programs of the Administration 
        that provide assistance to small business concerns owned and 
        controlled by minorities;
            ``(3) shall act as an ombudsman for full consideration of 
        minorities in all programs of the Administration (including 
        those under section 7(j) and 8(a));
            ``(4) shall work with the Associate Deputy Administrator 
        for Capital Access to increase the proportion of loans and loan 
        dollars, and investments and investment dollars, going to 
        minorities through the finance programs under this Act and the 
        Small Business Investment Act of 1958 (including subsections 
        (a), (b), and (m) of section 7 of this Act and the programs 
        under part A and B of title III and title V of the Small 
        Business Investment Act of 1958);
            ``(5) shall work with the Associate Deputy Administrator 
        for Entrepreneurial Development to increase the proportion of 
        counseling and training that goes to minorities through the 
        entrepreneurial development programs of the Administration;
            ``(6) shall work with the Associate Deputy Administrator 
        for Government Contracting and Minority Enterprise Development 
        to increase the proportion of contracts, including through the 
        Small Business Innovation Research Program and the Small 
        Business Technology Transfer Program, to minorities;
            ``(7) shall work with the partners of the Administration, 
        trade associations, and business groups to identify and carry 
        out policies and procedures to more effectively market the 
        resources of the Administration to minorities;
            ``(8) shall work with the Office of Field Operations to 
        ensure that district offices and regional offices have adequate 
        staff, funding, and other resources to market the programs of 
        the Administration to meet the objectives described in 
        paragraphs (4) through (7); and
            ``(9) shall report to and be responsible directly to the 
        Administrator.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $5,000,000 for fiscal year 2007;
            ``(2) $5,000,000 for fiscal year 2008; and
            ``(3) $5,000,000 for fiscal year 2009.''.
    (b) Conforming Amendments.--Section 4(b)(1) of the Small Business 
Act (15 U.S.C. 633(b)(1)) is amended in sixth sentence, by striking 
``Minority Small Business and Capital Ownership Development'' and all 
that follows through the end of the sentence and inserting ``Minority 
Small Business Development.''.

SEC. 205. LOWERING OF FEES.

    Section 7(a)(23) of the Small Business Act (15 U.S.C. 636(a)(23)) 
is amended by striking subparagraph (C) and inserting the following:
                    ``(C) Lowering of fees.--
                            ``(i) In general.--For loan guarantees made 
                        or approved in each full fiscal year after the 
                        date of enactment of the Small Business 
                        Reauthorization and Improvements Act of 2006, 
                        if the fees paid by all small business 
                        borrowers and by lenders for guarantees under 
                        this subsection, or the sum of such fees plus 
                        any funds made available for the purpose of 
                        reducing fees for loans under this subsection, 
                        as applicable, is more than the amount 
                        necessary to equal the cost to the 
                        Administration of making such guarantees, the 
                        Administrator shall reduce fees paid by small 
                        business borrowers and lenders under clauses 
                        (i) through (iv) of paragraph (18)(A) and 
                        subparagraph (A) of this paragraph.
                            ``(ii) Maximum.--The fees paid by small 
                        business borrowers and lenders for guarantees 
                        under this subsection may not be increased 
                        above the maximum level authorized under the 
                        amendments made by division K of the 
                        Consolidated Appropriations Act, 2005 (Public 
                        Law 108-447; 118 Stat. 3441).''.

            TITLE III--SMALL BUSINESS INVESTMENT ACT OF 1958

                 Subtitle A--Debentures and Securities

SEC. 301. PARTICIPATING DEBENTURE COMPANIES.

    Part A of title III of the Small Business Investment Act of 1958 
(15 U.S.C. 681 et seq.) is amended by adding at the end the following:

``SEC. 321. PARTICIPATING DEBENTURE COMPANIES.

    ``(a) Definitions.--In this section:
            ``(1) Equity capital.--In this paragraph, the term `equity 
        capital' means common or preferred stock or a similar 
        instrument, including subordinated debt with equity features 
        which is not amortized and which provides for interest payments 
        from appropriate sources, as determined by the Administrator.
            ``(2) General partner.--The term `general partner' means an 
        investor in a small business investment company that 
        participates in the daily management of the small business 
        investment company, and may include a managing partner in a 
        limited liability company.
            ``(3) Gross receipts.--The term `gross receipts' means any 
        cash received by a small business investment company, including 
        investment proceeds (both return of capital and profit), 
        interest, dividends, and fees, other than capital contributed 
        by a partner, the proceeds of the issuance of participating 
        debentures, and other money (if any) borrowed by the small 
        business investment company.
            ``(4) Interim funding provider.--The term `interim funding 
        provider' means any entity that provides funding guaranteed by 
        the Administrator to a licensed company in between the periodic 
        pools created by any trustee.
            ``(5) Licensed company.--The term `licensed company' means 
        a small business investment company authorized to issue 
        participating debentures by a license issued under section 301 
        for that purpose.
            ``(6) Limited partner.--The term `limited partner' means an 
        investor in a small business investment company, other than the 
        Administrator, that does not participate in the daily 
        management of the small business investment company.
            ``(7) Participating debenture.--The term `participating 
        debenture' means a debt security that is--
                    ``(A) in a form prescribed by the Administrator 
                that obligates the issuing company to pay--
                            ``(i) on the seventh anniversary of the 
                        date of issuance of the debenture, all accrued 
                        interest on that debenture that has not 
                        previously been paid;
                            ``(ii) semiannually thereafter, interest 
                        accruing after the seventh anniversary of the 
                        date of issuance of the debenture; and
                            ``(iii) any other amount required by this 
                        section; and
                    ``(B) is subject to the terms and conditions set 
                forth in this section and to any additional terms and 
                conditions as may be prescribed by the Administrator 
                that are consistent with this subsection.
            ``(8) Private collateral.--The term `private collateral' 
        means any money that any private partner has contractually 
        committed to invest in a licensed company during the most 
        recent licensing of the licensed company, but that has not yet 
        been paid to the licensed company.
            ``(9) Trustee.--The term `trustee' means an entity that 
        combines any securities, interests, or obligations from 
        licensed companies in the participating debenture program under 
        subsection (b) into pools and issues trust certificates.
            ``(10) Trust certificate.--The term `trust certificate' 
        means a certificate issued by the trustee that represents an 
        interest in a particular pool of any securities, interests, or 
        obligations from licensed companies in the participating 
        debenture program.
            ``(11) Trust certificate holder.--The term `trust 
        certificate holder' means an investor that purchases a trust 
        certificate.
    ``(b) Participating Debentures Program.--
            ``(1) Guarantee of participating debentures.--
                    ``(A) Redemption price and interest.--The 
                Administrator may guarantee the payment of the 
                redemption price and interest on a participating 
                debenture issued by a licensed company to the interim 
                funding provider under such terms and conditions as the 
                Administrator shall establish, by regulation.
                    ``(B) Repayment in default.--The Administrator may 
                guarantee the repayment to the interim funding provider 
                in the event of a default by a licensed company of the 
                funds advanced by the interim funding provider to the 
                licensed company under the agreement between the 
                Administrator and the licensed company, under such 
                terms and conditions as the Administrator shall 
                establish, by regulation.
                    ``(C) Trust certificates.--The Administrator may 
                guarantee the payment of the redemption price and 
                interest on a trust certificate issued by the trustee 
                to the trust certificate holders under such terms and 
                conditions as the Administrator shall establish, by 
                regulation.
            ``(2) Guarantee fee.--The Administrator may charge a 
        separate fee--
                    ``(A) under paragraph (1)(A), to the interim 
                funding provider;
                    ``(B) under paragraph (1)(B), to the licensed 
                company; and
                    ``(C) under paragraph (1)(C), to the trustee.
            ``(3) Zero-subsidy.--Each of the fees authorized under 
        paragraph (2) shall, when added to other fees, be sufficient to 
        reduce to zero the cost (as defined in section 502 of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of each 
        corresponding guarantee in paragraph (1).
            ``(4) Matching payment streams.--With respect to any 
        participating debenture issued by a licensed company, or with 
        respect to any security issued representing an interest in a 
        pool of such securities, the amount and schedule of--
                    ``(A) the interest payment obligations of the 
                Administrator to the trust certificate holders shall be 
                equal to the amount and schedule of the interest 
                obligations of the licensed company to the trust 
                certificate holders; and
                    ``(B) the principal redemption obligations of the 
                Administrator to the trust certificate holders shall be 
                equal to the amount and schedule of the licensed 
                company's principal redemption obligations to the trust 
                certificate holders.
            ``(5) Interest to interim funding provider.--
                    ``(A) Right to receive interest.--For the advancing 
                of monies to a licensed company under the license of 
                that company, the interim funding provider shall have 
                the right to receive interest from the licensed 
                company.
                    ``(B) Amounts.--The interest authorized under 
                subparagraph (A) shall be calculated based on the time 
                period beginning on the date on which the interim 
                funding provider advances the funding, and ending on 
                the date on which the interim funding provider provides 
                the securities of the licensed company to a trustee for 
                the purpose of pooling those securities and selling 
                interests in that pool.
                    ``(C) Collection of interest.--The interim funding 
                provider may collect interest referred to in this 
                paragraph by withholding money from the money advanced 
                to the licensed company by the interim funding 
                provider.
            ``(6) Maximum leverage.--Notwithstanding any other 
        provision of this subsection, the Administrator may not 
        guarantee a new participating debenture to be issued by a small 
        business investment company, and the company shall not make any 
        distribution to its private investors, if immediately after 
        such issuance or distribution the aggregate unpaid principal 
        balance of the participating debentures issued by the company 
        would exceed 100 percent of the leverageable capital of the 
        licensed company.
            ``(7) Purchase of participating debentures.--The 
        Administrator may authorize a trust or pool acting on behalf of 
        the Administrator to purchase participating debentures issued 
        by a small business investment company, under such terms and 
        conditions as the Administrator shall establish, by regulation.
            ``(8) Redemption.--Not later than 10 years after the date 
        on which it is issued, a participating debenture shall be 
        redeemed for an amount equal to its outstanding principal 
        balance plus any accrued but unpaid interest on such 
        participating debenture as of the date on which it is redeemed.
            ``(9) Interest.--
                    ``(A) In general.--For purposes of this 
                subparagraph, interest on a participating debenture--
                            ``(i) is preferred and cumulative;
                            ``(ii) is prepayable out of any gross 
                        receipts available for distribution; and
                            ``(iii) in any event, is payable at the 
                        scheduled or accelerated maturity of the 
                        participating debenture.
                    ``(B) Interest on principal balance.--Interest on 
                the principal balance outstanding of a participating 
                debenture shall accrue on a daily basis, and unpaid 
                accrued interest shall compound semiannually from the 
                date of issuance of the debenture, at a rate determined 
                by the Secretary of the Treasury, taking into 
                consideration the current average market yield on 
                outstanding marketable obligations of the United States 
                with remaining periods to maturity comparable to the 
                average maturities on such securities, adjusted to the 
                nearest \1/8\ of 1 percent, plus an additional charge, 
                in an amount established annually by the Administrator, 
                as necessary, when added to other fees, to reduce to 
                zero the cost (as defined in section 502 of the Federal 
                Credit Reform Act of 1990 (2 U.S.C. 661a)) to the 
                Administration of purchasing and guaranteeing 
                participating debentures under this subsection, which 
                may not exceed 1.5 percent per annum, and which shall 
                be paid to and retained by the Administration.
            ``(10) Payment defaults.--
                    ``(A) In general.--In the event of a failure of a 
                small business investment company to pay any principal 
                or interest on a participating debenture when due 
                (including any mandatory prepayment out of gross 
                receipts), the licensed company shall be in default, 
                and shall be subject to the provisions of subparagraphs 
                (B) through (D).
                    ``(B) Acceleration.--The Administrator, in addition 
                to any other remedies, may demand immediate payment of 
                the principal balance and accrued interest on any or 
                all participating debentures issued by the defaulting 
                company.
                    ``(C) Default rate of interest.--The interest rate 
                on the participating debenture with respect to which 
                the payment default occurred may increase, at the 
                discretion of the Administrator, by not greater than 50 
                basis points from the date of the payment default, and 
                by not greater than an additional 50 basis points on 
                each 6-month anniversary of that date, up to a maximum 
                total increase of 300 basis points, until all of the 
                payment defaults of the defaulting company have been 
                cured or waived.
                    ``(D) Private collateral.--The Administrator may 
                apply the private collateral of the licensed company to 
                pay any interest or principal payment that has not been 
                paid on time according to the payment schedule for the 
                licensed company.
            ``(11) Liquidation of licensed company.--In the event of 
        the liquidation of a licensed company issuing participating 
        debentures under this subsection, a participating debenture 
        shall be senior in priority for all purposes to any interest in 
        the issuing company, whenever created. In liquidation, the 
        private collateral of the licensed company may, at the option 
        of the Administrator, be applied to pay accrued interest and 
        principal of outstanding participating debentures.
            ``(12) Default of a licensed company.--In the event of the 
        default of a licensed company issuing participating debentures 
        under this subsection--
                    ``(A) a participating debenture shall be senior in 
                priority for all purposes to any interest in the 
                issuing company, whenever created; and
                    ``(B) at the option of the Administrator, the 
                private collateral of the licensed company may be 
                applied to pay accrued interest and principal on 
                outstanding participating debentures.
            ``(13) Investment obligation.--Any company issuing a 
        participating debenture under this subsection shall invest or 
        commit to invest an amount equal to the outstanding face value 
        of such participating debenture solely in equity capital.
            ``(14) Other debt.--A licensed company issuing a 
        participating debenture under this subsection shall have no 
        debt other than leverage obtained in accordance with this Act, 
        and temporary debt in an amount equal to not more than 50 
        percent of the private capital of the company.
            ``(15) Use of proceeds.--Unless otherwise determined by the 
        Administrator, a licensed company may use the proceeds of a 
        participating debenture issued by the company to pay the 
        principal amount and accrued interest due on outstanding 
        participating debentures issued by that company, if the company 
        has outstanding equity capital invested in an amount equal to 
        the amount being refinanced.
            ``(16) Distribution of gross receipts.--
                    ``(A) In general.--Except as otherwise provided in 
                this subsection, gross receipts, from any source or 
                however categorized for generally accepted accounting 
                principles or tax accounting purposes, shall be 
                utilized first for the payment of accrued interest on 
                participating debentures, then for repayment of 
                participating debenture principal and contributed 
                private capital, and finally for profit distributions, 
                as provided in subparagraphs (B) through (G).
                    ``(B) Past due interest and principal.--Gross 
                receipts shall first be used, within 10 days of 
                receipt--
                            ``(i) to pay any past due interest on 
                        participating debentures issued by the licensed 
                        company; and
                            ``(ii) when there is no past due interest 
                        outstanding, to repay any past due principal on 
                        such debentures (whether such interest and 
                        principal are past due by their terms or by 
                        acceleration).
                    ``(C) Mandatory interest prepayment.--If no unpaid 
                accrued interest or past due principal is outstanding 
                on any participating debenture issued by a licensed 
                company, the company shall use its gross receipts, not 
                later than the end of the calendar quarter in which 
                they were received (or the following calendar quarter, 
                if received within 15 days before the end of a calendar 
                quarter) to prepay accrued interest on the 
                participating debentures issued by the company, which 
                prepayments will be applied to such accrued interest in 
                the order in which such interest would otherwise become 
                due and payable.
                    ``(D) Amortization distributions.--
                            ``(i) In general.--Except as provided in 
                        paragraph (17), if no unpaid accrued interest 
                        or past due principal is outstanding on any 
                        participating debenture issued by a licensed 
                        company, the company shall distribute its gross 
                        receipts--
                                    ``(I) to the Administration to 
                                amortize outstanding participating 
                                debenture leverage; and
                                    ``(II) to its private investors.
                            ``(ii) Pro rata distribution.--A 
                        distribution under clause (i) shall be pro rata 
                        according to the ratio of outstanding 
                        participating debenture leverage to outstanding 
                        leverageable capital at the time of 
                        distribution.
                    ``(E) Post-amortization distributions.--If no 
                accrued interest or principal is outstanding on any 
                participating debenture issued by a licensed company, 
                and the company has no outstanding leverageable 
                capital, the gross receipts of the company--
                            ``(i) shall be distributed to the 
                        Administration in an amount equal to the profit 
                        participation percentage of the total amount 
                        being distributed, with the remaining gross 
                        receipts distributed to the private investors; 
                        and
                            ``(ii) in the case of any post-amortization 
                        distributions to the Administration under this 
                        subparagraph, shall be deemed to constitute 
                        `additional' interest (not `accrued' interest).
                    ``(F) Management expenses.--For purposes of 
                calculating the amount to be distributed to the 
                Administration under subparagraph (E), except as 
                otherwise prescribed by the Administration, the 
                management expenses of any company which issues 
                participating debentures under this subsection shall 
                not be greater than 2.5 percent of the combined capital 
                of the company per year, plus, in the case of a company 
                with combined capital of less than $20,000,000, an 
                additional $125,000.
                    ``(G) Definitions.--In this paragraph--
                            ``(i) the term `combined capital' means the 
                        aggregate amount of private capital and 
                        outstanding leverage;
                            ``(ii) the term `profit participation 
                        percentage' means 50 percent of the leverage 
                        ratio, reduced by the weighted average interest 
                        rate on the financing commitments issued by the 
                        company;
                            ``(iii) the term `leverage ratio' means the 
                        ratio of the aggregate amount of financing 
                        commitment leverage previously drawn by the 
                        company (including leverage that has been 
                        repaid, and not solely the maximum amount at 
                        any one time outstanding, if different) to the 
                        aggregate amount of capital previously 
                        contributed to the company by private investors 
                        (not solely the maximum amount at any one time 
                        outstanding, if different);
                            ``(iv) the term `management expenses' 
                        includes management fees and any additional 
                        salaries, office expenses, travel, business 
                        development costs, office and equipment rental, 
                        bookkeeping, and the development, 
                        investigation, and monitoring of investments 
                        paid by the licensed company, but does not 
                        include the cost of services provided by 
                        specialized outside consultants, outside 
                        lawyers, and outside auditors, who perform 
                        services not generally expected of a venture 
                        capital company nor does such term include the 
                        cost of services provided by any affiliate of 
                        the company which are not part of the normal 
                        process of making and monitoring venture 
                        capital investments; and
                            ``(v) the term `outstanding leverageable 
                        capital' means any aggregate capital 
                        contributions received by a licensed company 
                        from private investors which exceed aggregate 
                        distributions received by the private investors 
                        from the company.
            ``(17) Exceptions to order of distributions.--
                    ``(A) In general.--Notwithstanding paragraph 
                (16)(D), if no unpaid accrued interest (whether or not 
                past due) and no past due principal is outstanding on 
                any participating debenture issued by the licensed 
                company, subparagraph (B) through (D) of this paragraph 
                shall apply.
                    ``(B) Tax distributions.--
                            ``(i) In general.--The company may make a 
                        special distribution of gross receipts or other 
                        cash to its private investors without a 
                        corresponding distribution to the 
                        Administration while principal is outstanding 
                        on participating debentures issued by the 
                        company, if--
                                    ``(I) the licensed company has an 
                                investment in a business (referred to 
                                in this subparagraph as the `portfolio 
                                company') organized as a limited 
                                liability company (referred to in this 
                                subparagraph as an `LLC') or as a 
                                partnership;
                                    ``(II) the portfolio company has 
                                income which will be taxable to its 
                                members or partners;
                                    ``(III) the portfolio company makes 
                                a distribution to its members or 
                                partners in an amount equal to their 
                                assumed tax liability on the portfolio 
                                company's taxable income (referred to 
                                in this subparagraph as a `tax 
                                distribution'); or
                                    ``(IV) the small business 
                                investment company is itself a 
                                partnership or an LLC, so that any 
                                portfolio company income allocated to 
                                it is reallocated to the private 
                                investors, and it is those private 
                                investors who are liable for payment of 
                                tax on that income as if it was their 
                                own income, whether or not they receive 
                                any cash in respect of that income.
                            ``(ii) Authority to make distribution.--In 
                        circumstances described in clause (i), the 
                        issuing company may, quarterly, distribute to 
                        its private investors up to an amount equal to 
                        the difference between--
                                    ``(I) the estimated aggregate 
                                maximum tax liability of the private 
                                investors on the income of portfolio 
                                companies organized as LLCs or 
                                partnerships during the preceding 
                                calendar year; and
                                    ``(II) the aggregate amount 
                                distributed to the private investors 
                                (other than under this subparagraph) 
                                since April 15 of the preceding 
                                calendar year, but in no event more 
                                than the aggregate amount of tax 
                                distributions that the issuing company 
                                received from all of its portfolio 
                                companies during the preceding calendar 
                                year.
                    ``(C) Expenses.--A small business investment 
                company may use its gross receipts to pay previously 
                incurred expenses (including management fees) and other 
                liabilities and it may, in addition, retain additional 
                gross receipts in an expense reserve account in an 
                amount which, added to any existing expense reserve, 
                does not exceed such reasonably anticipated expenses 
                and other liabilities for the following 12-month 
                period, provided such expenses and other liabilities 
                are not prohibited under regulations established by the 
                Administrator or other applicable law.
                    ``(D) Prepayment.--Subject to any applicable State 
                law requirements, a small business investment company 
                may use gross receipts or other cash to prepay 
                outstanding participating debenture leverage and 
                interest in whole or in part without penalty at any 
                time.
            ``(18) Restrictions on distributions.--
                    ``(A) Liquidity and other administrative or state 
                law restrictions.--A distribution under this subsection 
                may not violate liquidity requirements or other 
                applicable restrictions on distributions in regulations 
                issued by the Administrator or under applicable State 
                law.
                    ``(B) Capital impairment or regulatory violation.--
                If a small business investment company is in restricted 
                operations or liquidation by reason of capital 
                impairment or regulatory violation, the maturity date 
                of the participating debentures issued by that company, 
                including both principal and accrued interest, is 
                subject to acceleration at the option of the 
                Administrator, and, regardless of whether there has 
                been such an acceleration, not more than 100 percent of 
                all gross receipts and the private collateral of the 
                licensed company may, at the option of the 
                Administrator, be required to be distributed to the 
                Administration until accrued interest and principal on 
                the participating debentures issued by the company have 
                been paid in full, in accordance with any terms and 
                conditions that the Administrator may establish by 
                regulation.
            ``(19) Distributions in-kind.--
                    ``(A) Election of in-kind distribution of 
                securities.--
                            ``(i) In general.--A small business 
                        investment company that issues participating 
                        debentures, has no accrual but unpaid interest, 
                        and has no outstanding leverage, may elect to 
                        make an in-kind distribution of securities at 
                        any time, subject to applicable securities laws 
                        and regulations, if such securities are 
                        publicly traded and marketable (referred to in 
                        this subsection as `marketable securities').
                            ``(ii) Gross receipts.--Marketable 
                        securities distributed in-kind shall be deemed 
                        to be gross receipts for purposes of this 
                        subsection, and their distribution shall be 
                        subject to the priorities and restrictions 
                        applicable to gross receipts under this 
                        subsection and to applicable regulations issued 
                        by the Administrator.
                    ``(B) Treatment of administration share.--The 
                licensed company shall either deposit the 
                Administration share of such securities with a trustee 
                designated by the Administrator, or retain the 
                Administration share, if the Administrator so directs 
                and with the agreement of the company.
                    ``(C) Retention of administration share.--If the 
                company retains the Administration share, it shall sell 
                such share and promptly remit the proceeds to the 
                Administration.
                    ``(D) Value of administration's share.--For 
                purposes of this paragraph--
                            ``(i) the value of the Administration share 
                        is the value of the securities, as of the date 
                        of distribution to the Administration under 
                        subparagraph (B), or as of the initial date of 
                        retention under subparagraph (C); and
                            ``(ii) the Administration may receive a 
                        greater or lesser amount upon its ultimate sale 
                        of such share or upon the ultimate sale by the 
                        company of such share on behalf of the 
                        Administration.
            ``(20) Timing of distributions.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), and subject to paragraphs (15) and 
                (17), any gross receipts received by a small business 
                investment company issuing participating debentures 
                under this subsection that are not placed in an expense 
                reserve under paragraph (17)(C) shall be distributed 
                not later than the last day of the fiscal quarter in 
                which such gross receipts were received by the company.
                    ``(B) Exceptions to timing of distributions.--
                            ``(i) End of quarter.--Gross receipts 
                        received within 15 days before the end of a 
                        fiscal quarter shall be distributed by the last 
                        day of the subsequent fiscal quarter.
                            ``(ii) Marketable securities.--Gross 
                        receipts consisting of marketable securities 
                        shall be distributed within 6 months of the 
                        date of receipt, unless the small business 
                        investment company has obtained the prior 
                        consent of the Administrator.
            ``(21) Reinvestment of gross receipts.--Subject to such 
        regulations and restrictions as may be prescribed by the 
        Administrator, and by the agreement of the private investors in 
        a small business investment company, any gross receipts that 
        exceed the amount needed to make payments required to be made 
        to the Administration under this subsection, may at the option 
        of the company be reinvested in qualified small business 
        concerns.
    ``(c) Maximum.--Participating debentures guaranteed under this 
section may not exceed 100 percent of the regulatory capital of the 
licensed company, as determined by the Administrator.
    ``(d) Post-Distribution Computation.--After distributions have been 
made under this section, the Administration share of such distributions 
shall not be reduced or recomputed.
    ``(e) No Ownership Interest to Administration.--This section shall 
not be construed as creating in the Administration any ownership 
interest in any small business investment company which issues 
participating debentures.
    ``(f) Conflict With Other Provisions.--
            ``(1) In general.--In the event of a conflict between this 
        subsection and any other provision of this part, this 
        subsection shall apply.
            ``(2) Specific provisions.--The provisions of this section 
        supersede subsections (g) and (h) of section 303 in their 
        entirety with respect to all matters pertaining to 
        participating debentures issued by a licensed company covered 
        by this section.''.

SEC. 302. PARTICIPATING SECURITIES.

    Section 20(a) of the Small Business Act (15 U.S.C. 631 note) is 
amended--
            (1) in paragraph (2), by striking ``Subject to approval in 
        appropriations Acts,'' and inserting ``Except as provided in 
        paragraph (5), and subject to approval in appropriations 
        Acts,''; and
            (2) by adding at the end the following:
    ``(5) Participating Securities.--
            ``(A) Definitions.--In this paragraph--
                    ``(i) the term `applicable 60-day period' means the 
                60-day period ending on the date on which the 
                commitment made by the Administrator for a covered 
                participating security expires;
                    ``(ii) the term `covered participating security' 
                means a participating security under title III of the 
                Small Business Investment Act of 1958--
                            ``(I) that was obligated in fiscal year 
                        2002, 2003, or 2004, under a commitment made by 
                        the Administrator; and
                            ``(II) on the date that is 60 days prior to 
                        the date on which such commitment expires, for 
                        which the Administrator has not disbursed all 
                        of the funds committed; and
                    ``(iii) the term `small business investment 
                company' has the same meaning as in section 103 of the 
                Small Business Investment Act of 1958.
            ``(B) Disbursal of funds.--Notwithstanding any other 
        provision of law, and subject to subparagraph (C), during the 
        applicable 60-day period, the Administrator shall, upon 
        request, disburse funds to a small business investment company 
        for a covered participating security, up to the full amount 
        committed by the Administrator, but not disbursed to the 
        company.
            ``(C) Conditions.--A small business investment company 
        receiving funds under subparagraph (B) shall--
                    ``(i) be in compliance with all regulations under 
                title III of the Small Business Investment Act of 1958, 
                relating to small business investment companies;
                    ``(ii) pay a fee to the Administrator (in addition 
                to any other applicable fee) in an amount equal to 0.5 
                percent of any funds disbursed under subparagraph (B); 
                and
                    ``(iii) deposit any funds disbursed under 
                subparagraph (B) that are not reasonably required for 
                imminent investment purposes, as determined by the 
                Administrator, in an interest bearing account approved 
                by the Administrator.
            ``(D) Withdrawal of funds.--
                    ``(i) In general.--Funds deposited under 
                subparagraph (C)(iii) may not be withdrawn without the 
                prior approval of the Administrator.
                    ``(ii) Criteria.--The Administrator shall grant 
                approval for a withdrawal under clause (i) in 
                accordance with the same criteria applicable to the 
                disbursal of funds for a participating security under 
                title III of the Small Business Investment Act of 
                1958.''.

                   Subtitle B--Development Companies

SEC. 321. DEVELOPMENT COMPANY LOAN PROGRAMS.

    (a) Title of Program.--Title V of the Small Business Investment Act 
of 1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the 
following:

``SEC. 511. PROGRAM TITLE.

    ``(a) In General.--Except as provided in subsection (b), the 
programs authorized by this title shall be known collectively as the 
`Local Development Business Loan Program'. The Administrator may refer 
to such program as the `504 Loan Program', until such usage is no 
longer necessary.
    ``(b) Existing Name.--Participants in the Local Development 
Business Loan Program may continue to refer to such program as `the 504 
loan program'.''.
    (b) Existing Materials.--The Administrator may use informational 
materials created, or that were in the process of being created, before 
the date of enactment of this Act that do not refer to a program under 
title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et 
seq.) as the ``Local Development Business Loan Program''.
    (c) New Materials.--Any informational materials created by the 
Administrator on or after the date of enactment of this Act shall refer 
to any program under title V of the Small Business Investment Act of 
1958 (15 U.S.C. 695 et seq.) as the ``Local Development Business Loan 
Program'', except that informational materials may refer to such 
program as the ``504 Loan Program'', until such usage is no longer 
necessary.

SEC. 322. LOAN LIQUIDATIONS.

    Section 510 of the Small Business Investment Act of 1958 (15 U.S.C. 
697g) is amended--
            (1) by redesignating subsection (e) as subsection (g); and
            (2) by inserting after subsection (d) the following:
    ``(e) Participation.--
            ``(1) In general.--Any qualified State or local development 
        company which elects not to apply for authority to foreclose 
        and liquidate defaulted loans under this section, or which the 
        Administrator determines to be ineligible for such authority, 
        shall contract with a qualified third-party to perform 
        foreclosure and liquidation of defaulted loans in its 
        portfolio. The contract shall be contingent upon approval by 
        the Administrator with respect to the qualifications of the 
        contractor and the terms and conditions of liquidation 
        activities.
            ``(2) Commencement.--This subsection does not require any 
        development company to liquidate defaulted loans until the 
        Administrator has adopted and implemented a program to 
        compensate and reimburse development companies, as provided 
        under subsection (f).
    ``(f) Compensation and Reimbursement.--
            ``(1) Reimbursement of expenses.--The Administrator shall 
        reimburse each qualified State or local development company for 
        all expenses paid by such company as part of the foreclosure 
        and liquidation activities, if the expenses--
                    ``(A) were approved in advance by the 
                Administrator, either specifically or generally; or
                    ``(B) were incurred by the development company on 
                an emergency basis without prior approval from the 
                Administrator, if the Administrator determines that the 
                expenses were reasonable and appropriate.
            ``(2) Compensation for results.--
                    ``(A) Development.--The Administrator shall develop 
                a schedule to compensate and provide an incentive to 
                qualified State or local development companies that 
                foreclose and liquidate defaulted loans.
                    ``(B) Criteria.--The schedule required under this 
                paragraph shall--
                            ``(i) be based on a percentage of the net 
                        amount recovered, but shall not exceed a 
                        maximum amount; and
                            ``(ii) not apply to any foreclosure which 
                        is conducted under a contract between a 
                        development company and a qualified third party 
                        to perform the foreclosure and liquidation.''.

SEC. 323. ADDITIONAL EQUITY INJECTIONS.

    Section 502(3)(B)(ii) of the Small Business Investment Act of 1958 
(15 U.S.C. 696(3)(B)(ii)) is amended to read as follows:
                            ``(ii) Funding from institutions.--If a 
                        small business concern--
                                    ``(I) provides the minimum 
                                contribution required under 
                                subparagraph (C), not less than 50 
                                percent of the total cost of any 
                                project financed under clause (i), 
                                (ii), or (iii) of subparagraph (C) 
                                shall come from the institutions 
                                described in subclauses (I), (II), and 
                                (III) of clause (i); and
                                    ``(II) provides more than the 
                                minimum contribution required under 
                                subparagraph (C), any excess 
                                contribution may be used to reduce the 
                                amount required from the institutions 
                                described in subclauses (I), (II), and 
                                (III) of clause (i), except that the 
                                amount from such institutions may not 
                                be reduced to an amount that is less 
                                than the amount of the loan made by the 
                                Administrator.''.

SEC. 324. BUSINESSES IN LOW-INCOME AREAS.

    Section 501(d)(3)(A) of the Small Business Investment Act of 1958 
(15 U.S.C. 695(d)(3)(A)) is amended by inserting after ``business 
district revitalization,'' the following: ``or expansion of businesses 
in low-income communities which would be eligible for a new markets tax 
credit under section 45D(a) of the Internal Revenue Code of 1986, or 
implementing regulations issued thereunder,''.

SEC. 325. COMBINATIONS OF CERTAIN GOALS.

    Section 501(e) of the Small Business Investment Act of 1958 (15 
U.S.C. 695(e)) is amended by adding at the end the following:
            ``(7) A small business concern that is unconditionally 
        owned by more than 1 individual, or a corporation, the stock of 
        which is owned by more than 1 individual, shall be deemed to 
        have achieved a public policy goal required under subsection 
        (d)(3) if a combined ownership share of not less than 51 
        percent is held by individuals who are in 1 of, or a 
        combination of, the groups described in subparagraph (C) or (E) 
        of subsection (d)(3).''.

SEC. 326. MAXIMUM 504 AND 7(A) LOAN ELIGIBILITY.

    Section 502(2) of the Small Business Investment Act of 1958 (15 
U.S.C. 696(2)) is amended by adding at the end the following:
                    ``(C) Combination financing.--Notwithstanding any 
                other provision of law, financing under this title may 
                be provided to a borrower in the maximum amount 
                provided in this subsection, and a loan guarantee under 
                section 7(a) of the Small Business Act may be provided 
                to the same borrower in the maximum amount provided in 
                section 7(a)(3)(A) of such Act, to the extent that the 
                borrower otherwise qualifies for such assistance.''.

SEC. 327. REFINANCING UNDER THE LOCAL DEVELOPMENT BUSINESS LOAN 
              PROGRAM.

    Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 
696) is amended by adding at the end the following:
            ``(7) Permissible debt refinancing.--
                    ``(A) In general.--Any financing approved under 
                this title may include a limited amount of debt 
                refinancing.
                    ``(B) Expansions.--If the project involves 
                expansion of a small business concern which has 
                existing indebtedness collateralized by fixed assets, 
                any amount of existing indebtedness that does not 
                exceed \1/2\ of the project cost of the expansion may 
                be refinanced and added to the expansion cost, if--
                            ``(i) the proceeds of the indebtedness were 
                        used to acquire land, including a building 
                        situated thereon, to construct a building 
                        thereon, or to purchase equipment;
                            ``(ii) the borrower has been current on all 
                        payments due on the existing debt for not less 
                        than 1 year preceding the date of refinancing; 
                        and
                            ``(iii) the financing under section 504 
                        will provide better terms or rate of interest 
                        than exists on the debt at the time of 
                        refinancing.''.

SEC. 328. TECHNICAL CORRECTION.

    Section 501(e)(2) of the Small Business Investment Act of 1958 (15 
U.S.C. 695(e)(2)) is amended by striking ``outstanding''.

SEC. 329. DEFINITIONS FOR THE SMALL BUSINESS INVESTMENT ACT OF 1958.

    Section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 
662) is amended--
            (1) by striking paragraph (6) and inserting the following:
            ``(6) the term `development company' means an entity 
        incorporated under State law with the authority to promote and 
        assist the growth and development of small business concerns in 
        the areas in which it is authorized to operate by the 
        Administrator;'';
            (2) in paragraph (16), by striking ``and'' at the end;
            (3) in paragraph (17), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(18) the term `certified development company' means a 
        development company that the Administrator has certified meets 
        the criteria of section 506.''.

SEC. 330. REPEAL OF SUNSET ON RESERVE REQUIREMENTS FOR PREMIER 
              CERTIFIED LENDERS.

    Section 508(c)(6)(B) of the Small Business Investment Act of 1958 
(15 U.S.C. 697e(c)(6)(B)) is amended--
            (1) in the subparagraph heading, by striking ``Temporary 
        reduction'' and inserting ``Reduction''; and
            (2) by striking ``Notwithstanding subparagraph (A), during 
        the 2-year period beginning on the date that is 90 days after 
        the date of enactment of this subparagraph, the'' and inserting 
        ``The''.

SEC. 331. CERTIFIED DEVELOPMENT COMPANIES.

    Section 506 of the Small Business Investment Act of 1958 (15 U.S.C. 
697c) is amended--
            (1) in the section heading, by striking ``restrictions on 
        development company assistance'' and inserting ``certified 
        development companies''; and
            (2) by inserting before ``Notwithstanding any other 
        provision of law'' the following:
    ``(a) Authority To Issue Debentures.--A development company may 
issue debentures under this title if the Administrator certifies that 
the company meets the following criteria:
            ``(1) Size.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the development company shall be a 
                small business concern with fewer than 500 employees, 
                and shall not be under the control of any entity that 
                does not meet the size standards established by the 
                Administrator for a small business concern.
                    ``(B) Exception.--Any development company that was 
                certified by the Administrator before December 31, 
                2005, may continue to issue debentures under this 
                title.
            ``(2) Primary purpose.--A primary purpose of the 
        development company shall be to benefit the community by 
        fostering economic development to create and preserve jobs and 
        stimulate private investment.
            ``(3) Primary function.--A primary function of the 
        development company shall be to accomplish its purpose by 
        providing long-term financing to small business concerns under 
        the Local Development Business Loan Program. The development 
        company may also provide or support other local economic 
        development activities to assist the community.
            ``(4) Nonprofit status.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the development company shall be a 
                nonprofit corporation.
                    ``(B) Exception.--A development company certified 
                by the Administrator before January 1, 1987, may 
                continue to issue debentures under this title and 
                retain its status as a for-profit enterprise.
            ``(5) Good standing.--The development company--
                    ``(A) shall be in good standing in the State in 
                which such company is incorporated and in any other 
                State in which it conducts business; and
                    ``(B) shall be in compliance with all laws, 
                including taxation requirements, in the State in which 
                such company is incorporated and in any other State in 
                which it conducts business.
            ``(6) Membership of development company.--There shall be--
                    ``(A) not fewer than 25 members of the development 
                company (or owners or stockholders, if the corporation 
                is a for-profit entity), none of whom may own or 
                control more than 10 percent of the voting membership 
                of the company; and
                    ``(B) at least 1 member of the development company 
                (none of whom is in a position to control the 
                development company) from each of the following:
                            ``(i) Government organizations that are 
                        responsible for economic development.
                            ``(ii) Financial institutions that provide 
                        commercial long-term fixed asset financing.
                            ``(iii) Community organizations that are 
                        dedicated to economic development.
                            ``(iv) Businesses.
            ``(7) Board of directors.--
                    ``(A) In general.--The development company shall 
                have a board of directors.
                    ``(B) Members of board.--Each member of the board 
                of directors shall be--
                            ``(i) a member of the development company; 
                        and
                            ``(ii) elected by a majority of the members 
                        of the development company.
                    ``(C) Representation of organizations and 
                institutions.--
                            ``(i) In general.--There shall be at least 
                        1 member of the board of directors from not 
                        fewer than 3 of the 4 organizations and 
                        institutions described in paragraph (6)(B), 
                        none of whom is in a position to control the 
                        development company.
                            ``(ii) Maximum percentage.--Not more than 
                        50 percent of the members of the board of 
                        directors shall be from any 1 of the 
                        organizations and institutions described in 
                        paragraph (6)(B).
                    ``(D) Meetings.--The board of directors of the 
                development company shall meet on a regular basis to 
                make policy decisions for such company.
            ``(8) Professional management and staff.--
                    ``(A) In general.--The development company shall 
                have full-time professional management, including a 
                chief executive officer to manage daily operations and 
                a full-time professional staff qualified to market the 
                Local Development Business Loan Program and handle all 
                aspects of loan approval and servicing, including 
                liquidation, if appropriate.
                    ``(B) Independent management and operation.--Except 
                as provided in paragraph (9), the development company 
                shall be independently managed and operated to pursue 
                the economic development purpose of the company and 
                shall employ directly the chief executive officer.
            ``(9) Management and operation exceptions.--
                    ``(A) Affiliation.--A development company may be an 
                affiliate of another local nonprofit service 
                corporation (other than a development company), a 
                purpose of which is to support economic development in 
                the area in which the development company operates.
                    ``(B) Staffing.--A development company may satisfy 
                the requirement for full-time professional staff under 
                paragraph (8)(A) by contracting for the required 
                staffing with--
                            ``(i) a local nonprofit service 
                        corporation;
                            ``(ii) a nonprofit affiliate of a local 
                        nonprofit service corporation;
                            ``(iii) an entity wholly or partially 
                        operated by a governmental agency; or
                            ``(iv) another entity approved by the 
                        Administrator.
                    ``(C) Directors.--A development company and a local 
                nonprofit service corporation with which it is 
                affiliated may have in common some, but not all, 
                members of their respective board of directors.
                    ``(D) Rural areas.--A development company in a 
                rural area may satisfy the requirements of a full-time 
                professional staff and professional management ability 
                under paragraph (8)(A) by contracting for such services 
                with another certified development company that--
                            ``(i) has such staff and management 
                        ability; and
                            ``(ii) is located in the same State as the 
                        development company or in a State that is 
                        contiguous to the State in which the 
                        development company is located.
                    ``(E) Previously certified.--A development company 
                that, on or before December 31, 2005, was certified by 
                the Administrator and had contracted with a for-profit 
                company to provide staffing and management services, 
                may continue to do so.
    ``(b) Use of Excess Funds.--Any funds generated by a certified 
development company from making loans under section 503 or 504 that 
remain unexpended after payment of staff, operating, and overhead 
expenses shall be retained by the certified development company as a 
reserve for--
            ``(1) future operations;
            ``(2) expanding the area in which the certified development 
        company operates through the methods authorized by this Act; or
            ``(3) investment in other local economic development 
        activity or community development in the State from which such 
        funds were generated.
    ``(c) Ethical Requirements.--
            ``(1) In general.--A certified development company and the 
        officers, employees, and other staff of the company shall at 
        all times act ethically and avoid activities which constitute a 
        conflict of interest or appear to constitute a conflict of 
        interest.
            ``(2) Prohibited conflict in project loans.--
                    ``(A) In general.--No certified development company 
                may--
                            ``(i) recommend or approve a guarantee of a 
                        debenture by the Administrator under the Local 
                        Business Development Loan Program that is 
                        collateralized by a second lien position on the 
                        property being constructed or acquired; and
                            ``(ii) provide, or be affiliated with a 
                        corporation or other entity which provides, 
                        financing collateralized by a first lien on the 
                        same property.
                    ``(B) Exception.--During the 2-year period 
                beginning on the date of enactment of the Small 
                Business Reauthorization and Improvements Act of 2006, 
                a certified development company that was participating 
                as a first mortgage lender for the Local Business 
                Development Loan Program in either of fiscal years 2004 
                or 2005 may continue to do so.
            ``(3) Other economic development activities.--It shall not 
        be a conflict of interest for a certified development company 
        to operate multiple programs to assist small business concerns 
        as part of carrying out its economic development purpose.
    ``(d) Multistate Operations.--
            ``(1) Authorization.--Notwithstanding any other provision 
        of law, the Administrator shall permit a certified development 
        company to make loans in any State that is contiguous to the 
        State of incorporation of that certified development company, 
        only if such company--
                    ``(A) is--
                            ``(i) an accredited lender under section 
                        507; or
                            ``(ii) a premier certified lender under 
                        section 508;
                    ``(B) has a membership that contains, from each of 
                the States in which it operates, not fewer than 25 
                members who reside in that State;
                    ``(C) has a board of directors that contains not 
                fewer than 2 members from each State in which the 
                company makes loans;
                    ``(D) maintains not fewer than 1 loan committee, 
                which shall have not fewer than 1 member from each 
                State in which the company makes loans; and
                    ``(E) submits to the Administrator, in writing--
                            ``(i) a notice of the intention of the 
                        company to make loans in multiple States;
                            ``(ii) the names of the States in which the 
                        company intends to make loans; and
                            ``(iii) a detailed statement of how the 
                        company will comply with this paragraph, 
                        including a list of the members described in 
                        subparagraph (B).
            ``(2) Review.--The Administrator shall verify whether a 
        certified development company satisfies the requirements of 
        paragraph (1) on an expedited basis and, not later than 30 days 
        after the date on which the Administrator receives the 
        statement described in paragraph (1)(E)(iii), the Administrator 
        shall determine whether such company satisfies such criteria 
        and provide notice to such company.
            ``(3) Loan committee participation.--For any loan made by a 
        company described in paragraph (1), not fewer than 1 member of 
        the loan committee from the State in which the loan is to be 
        made shall participate in the review of such loan.
            ``(4) Aggregate accounting.--A company described in 
        paragraph (1) may maintain an aggregate accounting of all 
        revenue and expenses of the company for purposes of this title.
            ``(5) Service to certified development companies.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an associate of a certified 
                development company may not be an officer, director, or 
                manager of more than 1 certified development company.
                    ``(B) Exception.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, a person who is serving 
                        on the board of directors of a certified 
                        development company may serve on the board of 
                        directors, but not as an officer, of not more 
                        than 1 additional certified development 
                        company, if--
                                    ``(I) such companies are not 
                                located in the same State;
                                    ``(II) each board of directors 
                                determines that the service by such 
                                person on such board does not 
                                constitute a conflict of interest; and
                                    ``(III) there is not a contractual 
                                relationship between--
                                            ``(aa) the person and such 
                                        additional certified 
                                        development company, except for 
                                        the contract of such person to 
                                        serve as a member of the board 
                                        of directors of such company, 
                                        if any; or
                                            ``(bb) the certified 
                                        development companies of which 
                                        such person is a member of the 
                                        board of directors.
                            ``(ii) Maximum number of members.--A 
                        certified development company may not have more 
                        than 1 member of the board of directors of such 
                        company in common with any other board of 
                        directors of a certified development company.
                    ``(C) Definition.--As used in this paragraph, the 
                term `associate of a certified development company' has 
                the meaning given the term `Associate of a CDC' in 
                section 120.10 of title 13, Code of Federal Regulations 
                (or any corresponding similar regulation or ruling).
            ``(6) Local job creation requirements.--Any certified 
        development company making loans in multiple States shall 
        satisfy any applicable job creation or retention requirements 
        separately for each such State. Such a company shall not count 
        jobs created or retained in 1 State towards any applicable job 
        creation or retention requirement in another State.
            ``(7) Contiguous states.--For purposes of this subsection, 
        the States of Alaska and Hawaii shall be deemed to be 
        contiguous to any State abutting the Pacific Ocean.
            ``(8) Local economic area requirement and exemption.--
                    ``(A) Definition.--In this paragraph, the term 
                `local economic area' means an area, as determined by 
                the Administrator, that--
                            ``(i) is in a State other than the State in 
                        which a development company is incorporated;
                            ``(ii) shares a border with the area of 
                        operations of the development company; and
                            ``(iii) is a part of a local trade area 
                        (including a city that is bisected by a State 
                        line and a metropolitan statistical area that 
                        is bisected by a State line) that is contiguous 
                        to the area of operations of the development 
                        company.
                    ``(B) Exemption.--An applicant operating in a local 
                economic area shall not be considered to be operating 
                in a multistate area, and shall not be required to 
                comply with the requirements for multistate operation.
    ``(e) Restrictions on Development Company Assistance.--''.

SEC. 332. CONFORMING AMENDMENTS.

    Section 503 of the Small Business Investment Act of 1958 (15 U.S.C. 
697) is amended--
            (1) in subsection (a)(1), by striking ``qualified State or 
        local development company'' and inserting ``certified 
        development company''; and
            (2) by striking subsection (e) and inserting the following:
    ``(e) Section 7(a) Loans.--Notwithstanding any other provision of 
law, a certified development company is authorized to prepare 
applications for deferred participation loans under section 7(a) of the 
Small Business Act, to service such loans, and to charge a reasonable 
fee for servicing such loans.''.

SEC. 333. CLOSING COSTS.

    Section 503(b) of the Small Business Investment Act of 1958 (15 
U.S.C. 697(b)) is amended by striking paragraph (4) and inserting the 
following:
            ``(4) the aggregate amount of such debenture does not 
        exceed the amount of the loans to be made from the proceeds of 
        such debenture plus, at the election of the borrower, other 
        amounts attributable to the administrative and closing costs of 
        such loans, except for the attorney fees of the borrower;''.

SEC. 334. DEFINITION OF RURAL.

    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) As used in this title, the term `rural' includes any area 
that is not--
            ``(1) a city or town that has a population greater than 
        50,000 inhabitants; or
            ``(2) the urbanized area contiguous and adjacent to a city 
        or town described in paragraph (1).''.

SEC. 335. REGULATIONS AND EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
Administrator shall--
            (1) publish proposed rules to implement this subtitle and 
        the amendments made by this subtitle, not later than 120 days 
        after the date of enactment of this Act; and
            (2) publish such rules in final form not later than 120 
        days after the date of publication under paragraph (1).
    (b) Multistate Operations.--As soon as is practicable after the 
date of enactment of this Act, the Administrator shall promulgate 
regulations to implement section 506(d) of the Small Business 
Investment Act of 1958, as added by this subtitle. Such regulations 
shall become effective not later than 120 days after the date of 
enactment of this Act.
    (c) Effective Date.--
            (1) In general.--Except as otherwise specifically provided 
        this subtitle, this subtitle and the amendments made by this 
        subtitle shall become effective 240 days after the date of 
        enactment of this Act, regardless of whether the Administrator 
        has promulgated the regulations required under subsection (a).
            (2) Multistate operations.--Section 506(d) of the Small 
        Business Investment Act of 1958, as added by this subtitle, 
        shall become effective 120 days after the date of enactment of 
        this Act, regardless of whether the Administrator has 
        promulgated the regulations required under subsection (b).

SEC. 336. LOW-INCOME GEOGRAPHIC AREAS.

    (a) Modification of Definition of Low-Income Geographic Area for 
Purposes of New Markets Venture Capital Program.--
            (1) In general.--Section 351 of the Small Business 
        Investment Act of 1958 (15 U.S.C. 689) is amended--
                    (A) by striking paragraph (2);
                    (B) in paragraph (3), by striking ``(3)'' and all 
                that follows through the end of subparagraph (A) and 
                inserting the following:
            ``(2) Low-income geographic area.--The term `low-income 
        geographic area' means--
                    ``(A) any `low-income community', as that term is 
                defined in section 45D of the Internal Revenue Code of 
                1986 (relating to the new markets tax credit); and''; 
                and
                    (C) by redesignating paragraphs (4) through (8) as 
                paragraphs (3) through (7), respectively.
            (2) Retroactive application of amended definition to 
        capital requirement.--The definition of a low-income geographic 
        area in section 351(2) of the Small Business Investment Act of 
        1958, as amended by paragraph (1) of this subsection, shall 
        apply to private capital raised under section 354(d)(1) of the 
        Small Business Investment Act of 1958 (15 U.S.C. 689c(d)(1)) 
        before, on, or after the date of enactment of this Act.
    (b) Study on Availability of Equity Capital.--
            (1) Study required.--Not later than the end of the 180-day 
        period beginning on the date of enactment of this Act, the 
        Chief Counsel for Advocacy of the Administration shall conduct 
        a study on the availability of equity capital in low-income 
        geographic areas.
            (2) Report.--Not later than 90 days after the completion of 
        the study under paragraph (1), the Administrator shall submit 
        to Congress a report containing the findings of the study 
        required under paragraph (1) and any recommendations of the 
        Administrator based on such study.

SEC. 337. LIMITATION ON TIME FOR FINAL APPROVAL OF COMPANIES.

    Section 354(d) of the Small Business Investment Act of 1958 (15 
U.S.C. 689c(d)) is amended by striking ``a period of time, not to 
exceed 2 years,'' and inserting ``2 years''.

                      TITLE IV--DISASTER RESPONSE

                   Subtitle A--Private Disaster Loans

SEC. 401. PRIVATE DISASTER LOANS.

    (a) In General.--Section 7 of the Small Business Act (15 U.S.C. 
636) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Private Disaster Loans.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `disaster area' means a county, 
                parish, or similar unit of general local government in 
                which a disaster was declared under subsection (b);
                    ``(B) the term `eligible small business concern' 
                means a business concern that is--
                            ``(i) is a small business concern, as 
                        defined in this Act; or
                            ``(ii) is a small business concern, as 
                        defined in section 103 of the Small Business 
                        Investment Act of 1958; and
                    ``(C) the term `qualified private lender' means any 
                privately-owned bank or other lending institution that 
                the Administrator determines meets the criteria 
                established under paragraph (10).
            ``(2) Authorization.--The Administrator may guarantee 
        timely payment of all principal and interest as scheduled on 
        any loan issued--
                    ``(A) by a qualified private lender to an eligible 
                small business concern located in a disaster area; and
                    ``(B) during the 24-month period beginning on the 
                date on which the disaster area is designated.
            ``(3) Use of loans.--A loan guaranteed by the Administrator 
        under this subsection may be used for--
                    ``(A) any purpose authorized under subsection (a) 
                or (b); and
                    ``(B) acquiring or developing real estate for the 
                purpose of selling or renting such real estate.
            ``(4) Online applications.--
                    ``(A) In general.--
                            ``(i) Establishment.--The Administrator may 
                        establish, directly or through an agreement 
                        with another entity, an online application 
                        process for loans guaranteed under this 
                        subsection.
                            ``(ii) Other federal assistance.--The 
                        Administrator may coordinate with the head of 
                        any other appropriate Federal agency so that 
                        any application submitted through an online 
                        application process established under clause 
                        (i) may be considered for any other Federal 
                        assistance program for disaster relief.
                    ``(B) Contents.--
                            ``(i) In general.--An online application 
                        process established under subparagraph (A) 
                        shall allow an applicant for a guarantee under 
                        this subsection to specify the qualified 
                        private lender from which the applicant seeks 
                        to obtain a loan.
                            ``(ii) Offers for loans.--
                                    ``(I) In general.--If an applicant 
                                does not specify a qualified private 
                                lender under clause (i), any qualified 
                                private lender may be selected to or 
                                opt to consider the application.
                                    ``(II) Process.--The Administrator 
                                may, via the online process or another 
                                predetermined and objective process, 
                                determine a means of distributing or 
                                otherwise making available for 
                                consideration applications where a 
                                qualified private lender has not been 
                                specified by the applicant.
            ``(5) Refinancing.--A loan guaranteed under this subsection 
        may be used to refinance any debt under this Act or the Small 
        Business Investment Act of 1958.
            ``(6) Maximum amounts.--
                    ``(A) Guarantee percentage.--The Administrator may 
                guarantee not more than 85 percent of a loan under this 
                subsection.
                    ``(B) Loan amounts.--The maximum amount of a loan 
                guaranteed under this subsection shall be $3,000,000.
            ``(7) Loan term.--The longest term of a loan for a loan 
        guaranteed under this subsection shall be--
                    ``(A) 15 years for any loan that is issued without 
                collateral; and
                    ``(B) 25 years for any loan that is issued with 
                collateral.
            ``(8) Fees.--
                    ``(A) In general.--The Administrator may not 
                collect a guarantee fee under this subsection.
                    ``(B) Origination fee.--The Administrator shall pay 
                a qualified private lender an origination fee for a 
                loan guaranteed under this subsection equal to \15/100\ 
                of 1 percent of the amount of the loan.
            ``(9) Documentation.--A qualified private lender may use 
        its own loan documentation for a loan guaranteed by the 
        Administrator, to the extent authorized by the Administrator. 
        The ability of a lender to use its own loan documentation for a 
        loan offered under this subsection shall not be considered part 
        of the criteria for becoming a qualified private lender under 
        the regulations promulgated under paragraph (10)(B).
            ``(10) Implementation.--
                    ``(A) In general.--Not later than 30 days after the 
                date of enactment of the Small Business Reauthorization 
                and Improvements Act of 2006, the Administrator shall--
                            ``(i) establish interim criteria for 
                        qualified private lenders; and
                            ``(ii) begin accepting applications from 
                        banks and lending institutions.
                    ``(B) Regulations.--
                            ``(i) In general.--Not later than 90 days 
                        after the date of enactment of the Small 
                        Business Reauthorization and Improvements Act 
                        of 2006, the Administrator shall promulgate 
                        regulations establishing permanent criteria for 
                        qualified private lenders.
                            ``(ii) Existing qualified private 
                        lenders.--A bank or lending institution that 
                        the Administrator determined met the criteria 
                        established under subparagraph (A)(i) may 
                        continue to operate as a qualified private 
                        lender if the Administrator determines that 
                        such bank or lending institution meets the 
                        criteria established under clause (i).
            ``(11) Other assistance.--The fact that a small business 
        concern receives assistance under this subsection shall not 
        preclude such business concern from receiving other assistance 
        under this Act.
            ``(12) Authorization of appropriations.--
                    ``(A) In general.--Amounts necessary to carry out 
                this subsection shall be made available from amounts 
                appropriated to the Administration under subsection 
                (b).
                    ``(B) Authority to reduce interest rates.--Funds 
                appropriated to the Administration to carry out this 
                subsection, may be used by the Administrator, to the 
                extent available, to reduce the applicable rate of 
                interest for a loan guaranteed under this subsection by 
                not more than 3 percentage points.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to disasters declared under section 7(b)(2) of the Small 
        Business Act (631 U.S.C. 636(b)(2)) before, on, or after the 
        date of enactment of this Act.
            (2) Construction.--For any disaster described in paragraph 
        (1) that was declared before the date of enactment of this Act, 
        the 24-month period described in section 7(c)(2)(B) of the 
        Small Business Act, as amended by this Act, shall begin on the 
        date on which such disaster was declared.

SEC. 402. TECHNICAL AND CONFORMING AMENDMENTS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) in section 4(c)--
                    (A) in paragraph (1), by striking ``7(c)(2)'' and 
                inserting ``7(d)(2)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``7(c)(2)'' and inserting 
                        ``7(d)(2)''; and
                            (ii) by striking ``7(e),''; and
            (2) in section 7(b), in the undesignated matter following 
        paragraph (3)--
                    (A) by striking ``That the provisions of paragraph 
                (1) of subsection (c)'' and inserting ``That the 
                provisions of paragraph (1) of subsection (d)''; and
                    (B) by striking ``Notwithstanding the provisions of 
                any other law the interest rate on the Administration's 
                share of any loan made under subsection (b) except as 
                provided in subsection (c),'' and inserting 
                ``Notwithstanding any other provision of law, and 
                except as provided in subsection (d), the interest rate 
                on the Administration's share of any loan made under 
                subsection (b)''.

             Subtitle B--Disaster Relief and Reconstruction

SEC. 421. DEFINITION OF DISASTER AREA.

    In this subtitle, the term ``disaster area'' means an area affected 
by a natural or other disaster, as determined for purposes of paragraph 
(1) or (2) of section 7(b) of the Small Business Act, during the period 
of such declaration.

SEC. 422. DISASTER LOANS TO NONPROFITS.

    Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (3) the following:
            ``(4) Loans to nonprofits.--In addition to any other loan 
        authorized by this subsection, the Administrator may make such 
        loans (either directly or in cooperation with banks or other 
        lending institutions through agreements to participate on an 
        immediate or deferred basis) as the Administrator determines 
        appropriate to a nonprofit organization located or operating in 
        an area affected by a natural or other disaster, as determined 
        under paragraph (1) or (2), or providing services to persons 
        who have evacuated from any such area.''.

SEC. 423. DISASTER LOAN AMOUNTS.

    (a) Increased Loan Caps.--Section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) is amended by inserting immediately after paragraph 
(4), as added by this subtitle, the following:
            ``(5) Increased loan caps.--
                    ``(A) Aggregate loan amounts.--Except as provided 
                in clause (ii), and notwithstanding any other provision 
                of law, the aggregate loan amount outstanding and 
                committed to a borrower under this subsection may not 
                exceed $5,000,000.
                    ``(B) Waiver authority.--The Administrator may, at 
                the discretion of the Administrator, waive the 
                aggregate loan amount established under clause (i).''.
    (b) Disaster Mitigation.--
            (1) In general.--Section 7(b)(1)(A) of the Small Business 
        Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ``of the 
        aggregate costs of such damage or destruction (whether or not 
        compensated for by insurance or otherwise)'' after ``20 per 
        centum''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to a loan or guarantee made after the 
        date of enactment of this Act.
    (c) Technical Amendments.--Section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``the, Administration'' and inserting ``the Administration'';
            (2) in paragraph (2)(A), by striking ``Disaster Relief and 
        Emergency Assistance Act'' and inserting ``Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
        seq.)''; and
            (3) in the undesignated matter at the end--
                    (A) by striking ``, (2), and (4)'' and inserting 
                ``and (2)''; and
                    (B) by striking ``, (2), or (4)'' and inserting 
                ``(2)''.

SEC. 424. SMALL BUSINESS DEVELOPMENT CENTER PORTABILITY GRANTS.

    Section 21(a)(4)(C)(viii) of the Small Business Act (15 U.S.C. 
648(a)(4)(C)(viii)) is amended--
            (1) in the first sentence, by striking ``as a result of a 
        business or government facility down sizing or closing, which 
        has resulted in the loss of jobs or small business 
        instability'' and inserting ``due to events that have resulted 
        or will result in, business or government facility downsizing 
        or closing''; and
            (2) by adding at the end ``At the discretion of the 
        Administrator, the Administrator may make an award greater than 
        $100,000 to a recipient to accommodate extraordinary 
        occurrences having a catastrophic impact on the small business 
        concerns in a community.''.

SEC. 425. ASSISTANCE TO OUT-OF-STATE BUSINESSES.

    Section 21(b)(3) of the Small Business Act (15 U.S.C. 648(b)(3)) is 
amended--
            (1) by striking ``At the discretion'' and inserting the 
        following: ``Small business development centers.--
                    ``(A) In general.--At the discretion''; and
            (2) by adding at the end the following:
                    ``(B) During disasters.--
                            ``(i) In general.--At the discretion of the 
                        Administrator, the Administrator may authorize 
                        a small business development center to provide 
                        such assistance to small business concerns 
                        located outside of the State, without regard to 
                        geographic proximity, if the small business 
                        concerns are located in a disaster area 
                        declared under section 7(b)(2)(A).
                            ``(ii) Continuity of services.--A small 
                        business development center that provides 
                        counselors to an area described in clause (i) 
                        shall, to the maximum extent practicable, 
                        ensure continuity of services in any State in 
                        which such small business development center 
                        otherwise provides services.
                            ``(iii) Access to disaster recovery 
                        facilities.--For purposes of providing disaster 
                        recovery assistance under this subparagraph, 
                        the Administrator shall, to the maximum extent 
                        practicable, permit small business development 
                        center personnel to use any site or facility 
                        designated by the Administrator for use to 
                        provide disaster recovery assistance.''.

SEC. 426. OUTREACH PROGRAMS.

    (a) In General.--Not later than 30 days after the date of the 
declaration of a disaster area, the Administrator may establish a 
contracting outreach and technical assistance program for small 
business concerns which have had a primary place of business in, or 
other significant presence in, such disaster area.
    (b) Administrator Action.--The Administrator may fulfill the 
requirement of subsection (a) by acting through--
            (1) the Administration;
            (2) the Federal agency small business officials designated 
        under section 15(k)(1) of the Small Business Act (15 U.S.C. 
        644(k)(1)); or
            (3) any Federal, State, or local government entity, higher 
        education institution, procurement technical assistance center, 
        or private nonprofit organization that the Administrator may 
        determine appropriate, upon conclusion of a memorandum of 
        understanding or assistance agreement, as appropriate, with the 
        Administrator.

SEC. 427. SMALL BUSINESS BONDING THRESHOLD.

    (a) In General.--Except as provided in subsection (b), and 
notwithstanding any other provision of law, for any procurement related 
to a major disaster (as that term is defined in section 102 of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5122)), the Administrator may, upon such terms and conditions as 
the Administrator may prescribe, guarantee and enter into commitments 
to guarantee any surety against loss resulting from a breach of the 
terms of a bid bond, payment bond, performance bond, or bonds ancillary 
thereto, by a principal on any total work order or contract amount at 
the time of bond execution that does not exceed $5,000,000.
    (b) Increase of Amount.--Upon request of the head of any Federal 
agency other than the Administration involved in reconstruction efforts 
in response to a major disaster, the Administrator may guarantee and 
enter into a commitment to guarantee any security against loss under 
subsection (a) on any total work order or contract amount at the time 
of bond execution that does not exceed $10,000,000.

SEC. 428. SMALL BUSINESS PARTICIPATION.

    In order to facilitate the maximum practicable participation of 
small business concerns in activities related to relief and recovery 
from an event for which a disaster area was declared, the Administrator 
and the head of any Federal agency making procurements related to the 
aftermath of the disaster, may, at the discretion of the Administrator, 
set a goal of awarding to small business concerns not less than 30 
percent of amounts expended for prime contracts and not less than 40 
percent of amounts expended for subcontracts on procurements by such 
agency related to the aftermath of the disaster.

SEC. 429. EMERGENCY PROCUREMENT AUTHORITY.

    (a) Small Business Reservation Offset.--Section 15(j) of the Small 
Business Act (15 U.S.C. 644(j)) is amended by adding at the end the 
following:
    ``(4) For any contract involving the use of the special emergency 
procurement authority under section 32A(c) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 428a(c)), the dollar ceiling of the 
small business reservation established in paragraph (1) shall be 
adjusted to match the applicable amount of the simplified acquisition 
threshold.''.
    (b) Retention of Small Business Subcontracting.--Section 8(d)(4)(D) 
of the Small Business Act (15 U.S.C. 637(d)(4)(D)) is amended--
            (1) by striking ``(D) No contract'' and inserting the 
        following:
            ``(D) Small business participation.--
                    ``(i) In general.--No contract''; and
            (2) by adding at the end the following:
                    ``(ii) Emergency procurements.--
                            ``(I) In general.--For any contract which 
                        otherwise meets the requirements of this 
                        subsection, and which involves the use of 
                        special emergency procurement authority under 
                        section 32A(c) of the Office of Federal 
                        Procurement Policy Act (41 U.S.C. 428a(c)), the 
                        subcontracting plan required under this 
                        subsection shall be negotiated as soon as 
                        practicable, but not later than 30 days after 
                        the date on which the contract is awarded.
                            ``(II) Payment.--Not greater than 50 
                        percent of the amounts due under any contract 
                        described in subclause (I) may be paid, unless 
                        a subcontracting plan compliant with this 
                        subsection is negotiated by the contractor.''.

SEC. 430. PAPERWORK RECIPROCITY FOR SMALL DISASTER CONTRACTORS.

    Not later than 30 days after the date of enactment of this Act, the 
Administrator shall ensure that all eligible small business concerns 
receive the full benefit of reciprocity in certifications between 
Federal and federally funded contracting programs for small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals.

SEC. 431. SMALL BUSINESS MULTIPLE AWARD DISASTER CONTRACTS.

    (a) In General.--The Administrator and the Administrator for 
Federal Procurement Policy shall work with other Federal agencies to 
ensure that the Federal Government establishes and maintains multiple 
award contracts with small business concerns of all categories on a 
nationwide and regional basis for the purpose of conducting or 
supporting Federal disaster recovery efforts.
    (b) Report.--At the end of each fiscal year, the Administrator and 
the Administrator for Federal Procurement Policy shall submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives a report 
describing the terms, conditions, and status of the contracts described 
in subsection (a) awarded during the preceding fiscal year.

SEC. 432. CONTRACTING PRIORITY FOR LOCAL SMALL BUSINESSES.

    Section 15(d) of the Small Business Act (15 U.S.C. 644(d)) is 
amended--
            (1) by striking ``(d) For purposes'' and inserting the 
        following:
    ``(d) Contracting Priorities.--
            ``(1) In general.--For purposes''; and
            (2) by adding at the end the following:
            ``(2) Disaster contracting priority in general.--The 
        Administrator shall designate any disaster area as an area of 
        concentrated unemployment or underemployment, or a labor 
        surplus area for purposes of paragraph (1).
            ``(3) Local small businesses.--
                    ``(A) In general.--The head of each executive 
                agency shall give priority in the awarding of contracts 
                and the placement of subcontracts for disaster relief 
                to local small business concerns, by using, as 
                appropriate--
                            ``(i) preferential factors in evaluations 
                        of contract bids and proposals;
                            ``(ii) competitions restricted to local 
                        small business concerns, where there is a 
                        reasonable expectation of receiving 
                        competitive, reasonably priced bids or 
                        proposals from not fewer than 2 local small 
                        business concerns;
                            ``(iii) requirements of preference for 
                        local small business concerns in subcontracting 
                        plans; and
                            ``(iv) assessments of liquidated damages 
                        and other contractual penalties, including 
                        contract termination.
                    ``(B) Other disaster assistance.--Priority shall be 
                given to local small business concerns in the awarding 
                of contracts and the placement of subcontracts for 
                disaster relief in any Federal procurement and any 
                procurement by a State or local government made with 
                Federal disaster assistance funds.
            ``(4) Definitions.--In this subsection--
                    ``(A) the term `declared disaster' means a 
                disaster, as designated by the Administrator;
                    ``(B) the term `disaster area' means any State or 
                area affected by a declared disaster, as determined by 
                the Administrator;
                    ``(C) the term `executive agency' has the same 
                meaning as in section 105 of title 5, United States 
                Code; and
                    ``(D) the term `local small business concern' means 
                a small business concern that--
                            ``(i) on the date immediately preceding the 
                        date on which a declared disaster occurred--
                                    ``(I) had a principal office in the 
                                disaster area for such declared 
                                disaster; and
                                    ``(II) employed a majority of the 
                                workforce of such small business 
                                concern in the disaster area for such 
                                declared disaster; and
                            ``(ii) is capable of performing a 
                        substantial proportion of any contract or 
                        subcontract for disaster relief within the 
                        disaster area for such declared disaster, as 
                        determined by the Administrator.''.

SEC. 433. TERMINATION OF PROGRAM.

    Section 711(c) of the Small Business Competitive Demonstration 
Program Act of 1988 (15 U.S.C. 644 note) is amended by inserting after 
``January 1, 1989'' the following: ``, and shall terminate on the date 
of enactment of the Small Business Reauthorization and Improvements Act 
of 2006''.

SEC. 434. INCREASING COLLATERAL REQUIREMENTS.

    Section 7(d)(6) of the Small Business Act (15 U.S.C. 636), as so 
designated by section 401, is amended by striking ``$10,000'' and 
inserting ``$12,000''.

                     Subtitle C--Disaster Response

SEC. 451. DEFINITIONS.

    In this subtitle--
            (1) the term ``approved State Bridge Loan Program'' means a 
        State Bridge Loan Program approved under section 452(b);
            (2) the term ``catastrophic national disaster'' has the 
        meaning given the term in section 7(b)(6) of the Small Business 
        Act (15 U.S.C. 636(b)), as added by this Act;
            (3) the term ``declared disaster'' means a major disaster 
        or a catastrophic national disaster;
            (4) the term ``disaster loan program of the 
        Administration'' means assistance under section 7(b) of the 
        Small Business Act (15 U.S.C. 636(b));
            (5) the term ``disaster update period'' means the period 
        beginning on the date on which the President declares a major 
        disaster or a catastrophic national disaster and ending on the 
        date on which such declaration terminates;
            (6) the term ``major disaster'' has the meaning given the 
        term in section 102 of the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5122); and
            (7) the term ``State'' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Northern Mariana Islands, the Virgin Islands, Guam, 
        American Samoa, and any territory or possession of the United 
        States.

SEC. 452. STATE BRIDGE LOAN GUARANTEE.

    (a) Authorization.--After issuing guidelines under subsection (c), 
the Administrator may guarantee loans made under an approved State 
Bridge Loan Program.
    (b) Approval.--
            (1) Application.--A State desiring approval of a State 
        Bridge Loan Program shall submit an application to the 
        Administrator at such time, in such manner, and accompanied by 
        such information as the Administrator may require.
            (2) Criteria.--The Administrator may approve an application 
        submitted under paragraph (1) based on such criteria as the 
        Administrator may establish under this section.
    (c) Guidelines.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator shall issue to the 
        appropriate economic development officials in each State, the 
        Committee on Small Business and Entrepreneurship of the Senate, 
        and the Committee on Small Business of the House of 
        Representatives, guidelines regarding approved State Bridge 
        Loan Programs.
            (2) Contents.--The guidelines issued under paragraph (1) 
        shall--
                    (A) identify appropriate uses of funds under an 
                approved State Bridge Loan Program;
                    (B) set terms and conditions for loans under an 
                approved State Bridge Loan Program;
                    (C) address whether--
                            (i) an approved State Bridge Loan Program 
                        may charge administrative fees; and
                            (ii) loans under an approved State Bridge 
                        Loan Program shall be disbursed through local 
                        banks and other financial institutions; and
                    (D) establish the percentage of a loan the 
                Administrator will guarantee under an approved State 
                Bridge Loan Program.

SEC. 453. CATASTROPHIC NATIONAL DISASTERS.

    Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (5), as added by this 
Act, the following:
            ``(6) Catastrophic national disasters.--
                    ``(A) Definition.--In this paragraph the term 
                `catastrophic national disaster' means a disaster, 
                natural or other, that the President determines has 
                caused significant adverse economic conditions outside 
                of the geographic reach of the disaster.
                    ``(B) Authorization.--The Administrator may make 
                such loans under this paragraph (either directly or in 
                cooperation with banks or other lending institutions 
                through agreements to participate on an immediate or 
                deferred basis) as the Administrator determines 
                appropriate to small business concerns located anywhere 
                in the United States that are economically adversely 
                impacted as a result of a catastrophic national 
                disaster.
                    ``(C) Loan terms.--A loan under this paragraph 
                shall be made on the same terms as a loan under 
                paragraph (2).''.

SEC. 454. PUBLIC AWARENESS OF DISASTER DECLARATION AND APPLICATION 
              PERIODS.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after paragraph (6), as 
added by this Act, the following:
            ``(7) Coordination with fema.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, for any disaster (including a 
                catastrophic national disaster) declared under this 
                subsection or major disaster (as that term is defined 
                in section 102 of the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 5122)), 
                the Administrator, in consultation with the Director of 
                the Federal Emergency Management Agency, shall ensure, 
                to the maximum extent practicable, that all application 
                periods for disaster relief under this Act and the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act begin on the same date and end on the 
                same date.
                    ``(B) Deadline extensions.--Notwithstanding any 
                other provision of law--
                            ``(i) not later than 10 days before the 
                        closing date of an application period for 
                        disaster relief under this Act for any disaster 
                        (including a catastrophic national disaster) 
                        declared under this subsection, the 
                        Administrator, in consultation with the 
                        Director of the Federal Emergency Management 
                        Agency, shall notify the Committee on Small 
                        Business and Entrepreneurship of the Senate and 
                        the Committee on Small Business of the House of 
                        Representatives as to whether the Administrator 
                        intends to extend such application period; and
                            ``(ii) not later than 10 days before the 
                        closing date of an application period for 
                        disaster relief under the Robert T. Stafford 
                        Disaster Relief and Emergency Assistance Act 
                        for any major disaster (as that term is defined 
                        in section 102 of the Robert T. Stafford 
                        Disaster Relief and Emergency Assistance Act 
                        (42 U.S.C. 5122)) for which the President has 
                        declared a catastrophic national disaster under 
                        paragraph (6), the Director of the Federal 
                        Emergency Management Agency, in consultation 
                        with the Administrator, shall notify the 
                        Committee on Small Business and 
                        Entrepreneurship of the Senate and the 
                        Committee on Small Business of the House of 
                        Representatives as to whether the Director 
                        intends to extend such application period.
            ``(8) Public awareness of disasters.--If a disaster 
        (including a catastrophic national disaster) is declared under 
        this subsection, the Administrator shall make every effort to 
        communicate through radio, television, print, and web-based 
        outlets, all relevant information needed by disaster loan 
        applicants, including--
                    ``(A) the date of such declaration;
                    ``(B) cities and towns within the area of such 
                declaration;
                    ``(C) loan application deadlines related to such 
                disaster;
                    ``(D) all relevant contact information for victim 
                services available through the Administration 
                (including links to small business development center 
                websites);
                    ``(E) links to relevant Federal and State disaster 
                assistance websites;
                    ``(F) information on eligibility criteria for 
                Federal Emergency Management Agency disaster assistance 
                applications, as well as for Administration loan 
                programs, including where such applications can be 
                found; and
                    ``(G) application materials that clearly state the 
                function of the Administration as the Federal source of 
                disaster loans for homeowners and renters.''.
    (b) Coordination of Agencies and Outreach.--Not later than 90 days 
after the date of enactment of this Act, the Administrator and the 
Director of the Federal Emergency Management Agency shall enter into an 
agreement that ensures adequate lodging and transportation for 
employees of the Administration, contract employees, and volunteers 
during a major disaster, if such staff are needed to assist businesses, 
homeowners, or renters in recovery.
    (c) Marketing and Outreach.--Not later than 90 days after the date 
of enactment of this Act, the Administrator shall create a marketing 
and outreach plan that--
            (1) encourages a proactive approach to the disaster relief 
        efforts of the Administration;
            (2) distinguishes between disaster services provided by the 
        Administration and disaster services provided by the Federal 
        Emergency Management Agency, including contact information, 
        application information, and timelines for submitting 
        applications, the review of applications, and the disbursement 
        of funds;
            (3) describes the different disaster loan programs of the 
        Administration, including how they are made available and what 
        eligibility requirements exist for each loan program;
            (4) provides for regional marketing, focusing on disasters 
        occurring in each region before the date of enactment of this 
        Act, and likely scenarios for disasters in each such region; 
        and
            (5) ensures that the marketing plan is made available at 
        small business development centers and on the website of the 
        Administration.

SEC. 455. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS AND STANDARD 
              OPERATING PROCEDURES.

    (a) In General.--The Administrator shall, promptly following the 
date of enactment of this Act, conduct a study of whether the standard 
operating procedures of the Administration for loans offered under 
section 7(b) of the Small Business Act are consistent with the 
regulations of the Administration for administering the disaster loan 
program.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Administration shall submit to Congress a report 
containing all findings and recommendations of the study conducted 
under subsection (a).

SEC. 456. PROCESSING DISASTER LOANS.

    (a) Authority for Qualified Private Contractors to Process Disaster 
Loans.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (8), as added by this 
Act, the following:
            ``(9) Authority for qualified private contractors.--
                    ``(A) Disaster loan processing.--The Administrator 
                may enter into an agreement with a qualified private 
                contractor, as determined by the Administrator, to 
                process loans under this subsection in the event of a 
                major disaster (as defined in section 102 of the Robert 
                T. Stafford Disaster Relief and Emergency Assistance 
                Act (42 U.S.C. 5122)) or a catastrophic national 
                disaster declared under paragraph (6), under which the 
                Administrator shall pay the contractor a fee for each 
                loan processed.
                    ``(B) Loan loss verification services.--The 
                Administrator may enter into an agreement with a 
                qualified lender or loss verification professional, as 
                determined by the Administrator, to verify losses for 
                loans under this subsection in the event of a major 
                disaster (as defined in section 102 of the Robert T. 
                Stafford Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5122)) or a catastrophic national disaster 
                declared under paragraph (6), under which the 
                Administrator shall pay the lender or verification 
                professional a fee for each loan for which such lender 
                or verification professional verifies losses.''.
    (b) Coordination of Efforts Between the Administrator and the 
Internal Revenue Service to Expedite Loan Processing.--The 
Administrator and the Commissioner of Internal Revenue shall, to the 
maximum extent practicable, ensure that all relevant and allowable tax 
records for loan approval are shared with loan processors in an 
expedited manner, upon request by the Administrator.
    (c) Report on Loan Approval Rate.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, the Administrator shall submit a report 
        to the Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House of 
        Representatives detailing how the Administration can improve 
        the processing of applications under the disaster loan program 
        of the Administration.
            (2) Contents.--The report submitted under paragraph (1) 
        shall include--
                    (A) recommendations, if any, regarding--
                            (i) staffing levels during a major 
                        disaster;
                            (ii) how to improve the process for 
                        processing, approving, and disbursing loans 
                        under the disaster loan program of the 
                        Administration, to ensure that the maximum 
                        assistance is provided to victims in a timely 
                        manner;
                            (iii) the viability of using alternative 
                        methods for assessing the ability of an 
                        applicant to repay a loan, included the credit 
                        score of the applicant on the day before the 
                        date on which the disaster for which the 
                        applicant is seeking assistance was declared; 
                        and
                            (iv) methods for the Administration to 
                        expedite loss verification and loan processing 
                        of disaster loans during a major disaster for 
                        businesses affected by, and located in the area 
                        for which the President declared, the major 
                        disaster that are a major source of employment 
                        in the area or are vital to recovery efforts in 
                        the region (including providing debris removal 
                        services, manufactured housing, or building 
                        materials); and
                    (B) the plans of the Administrator for implementing 
                any recommendation made under subparagraph (A).

SEC. 457. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER RESPONSE 
              PLAN.

    (a) In General.--Not later than January 31, 2007, the Administrator 
shall--
            (1) by rule, amend the 2006 Atlantic hurricane season 
        disaster response plan of the Administration (in this section 
        referred to as the ``disaster response plan'') to apply to 
        major disasters and catastrophic national disasters, consistent 
        with this Act and the amendments made by this Act; and
            (2) submit a report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives detailing the 
        amendments to the disaster response plan.
    (b) Contents.--The amended report required under subsection (a)(2) 
shall include--
            (1) any updates or modifications made to the disaster 
        response plan since the report regarding the disaster response 
        plan submitted on July 14, 2006;
            (2) a description of how the Administrator plans to utilize 
        and integrate District Office personnel of the Administration 
        in the response to a major disaster, including information on 
        the utilization of personnel for loan processing and loan 
        disbursement;
            (3) a description of the disaster scalability model of the 
        Administration and on what basis or function the plan is 
        scaled;
            (4) a description of how the agency-wide Disaster Oversight 
        Council is structured, which offices comprise its membership, 
        and whether the Associate Deputy Administrator for 
        Entrepreneurial Development of the Administration is a member;
            (5) a description of how the Administrator plans to 
        coordinate the disaster efforts of the Administration with 
        State and local government officials, including recommendations 
        on how to better incorporate State initiatives or programs, 
        such as State-administered bridge loan programs, into the 
        disaster response of the Administration;
            (6) recommendations, if any, on how the Administrator can 
        better coordinate its disaster response operations with the 
        operations of the Department of Commerce and the Department of 
        Agriculture;
            (7) any surge plans of the Administration for loan 
        processing and loss verification functions;
            (8) a description of the findings and recommendations of 
        the Administrator, if any, based on a review of the response of 
        the Administration to Hurricane Katrina of 2005, Hurricane Rita 
        of 2005, and Hurricane Wilma of 2005; and
            (9) a plan for how the Administrator, in cooperation with 
        the Director of the Federal Emergency Management Agency, will 
        secure accommodations and necessary resources for disaster 
        assistance personnel to effectively perform their 
        responsibilities in the aftermath of a major disaster.
    (c) Exercises.--Not later than May 31, 2007, the Administrator 
shall develop and execute simulation exercises to demonstrate the 
effectiveness of the amended disaster response plan required under this 
section.

SEC. 458. CONGRESSIONAL OVERSIGHT.

    (a) Monthly Accounting Report to Congress.--
            (1) In general.--On the first Monday of each month after 
        the date of enactment of this Act, the Administrator shall 
        provide to the Committee on Small Business and Entrepreneurship 
        of the Senate and to the Committee on Small Business of the 
        House of Representatives a report on the disaster loan program 
        of the Administration for the preceding month.
            (2) Contents.--Each report under paragraph (1) shall 
        include--
                    (A) the daily average lending volume, in number of 
                loans and dollars, and the percent by which each 
                category has increased or decreased since the previous 
                report under paragraph (1);
                    (B) the weekly average lending volume, in number of 
                loans and dollars, and the percent by which each 
                category has increased or decreased since the previous 
                report under paragraph (1);
                    (C) the amount of funding spent over the month for 
                loans, both in appropriations and program level, and 
                the percent by which each category has increased or 
                decreased since the previous report under paragraph 
                (1);
                    (D) the amount of funding available for loans, both 
                in appropriations and program level, and the percent by 
                which each category has increased or decreased since 
                the previous report under paragraph (1), noting the 
                source of any additional funding;
                    (E) an estimate of how long the available funding 
                for such loans will last, based on the spending rate;
                    (F) the amount of funding spent over the month for 
                staff, along with the number of staff, and the percent 
                by which each category has increased or decreased since 
                the previous report under paragraph (1);
                    (G) the amount of funding spent over the month for 
                administrative costs, and the percent by which spending 
                has increased or decreased since the previous report 
                under paragraph (1);
                    (H) the amount of funding available for salaries 
                and expenses combined, and the percent by which funding 
                has increased or decreased, noting the source of any 
                additional funding; and
                    (I) an estimate of how long the available funding 
                for salaries and expenses will last, based on the 
                spending rate.
    (b) Daily Disaster Updates to Congress for Presidentially Declared 
Disasters.--
            (1) In general.--Each day during a disaster update period, 
        excluding Federal holidays and weekends, the Administrator 
        shall provide to the Committee on Small Business and 
        Entrepreneurship of the Senate and to the Committee on Small 
        Business of the House of Representatives a report on the 
        operation of the disaster loan program of the Administration 
        for the area in which the President declared a major disaster 
        or a catastrophic national disaster, as the case may be.
            (2) Contents.--Each report under paragraph (1) shall 
        include--
                    (A) the allocations of loan processing, loss 
                verification, and additional field staff at 
                Administration offices nationwide, as well as the 
                allocations of such staff at the various disaster field 
                offices, disaster recovery centers, and workshops in 
                each State in the relevant area;
                    (B) the daily number of applications received from 
                applicants in the relevant area, as well as a breakdown 
                of such figures by State;
                    (C) the daily number of applications pending 
                application entry from applicants in the relevant area, 
                as well as a breakdown of such figures by State;
                    (D) the daily number of applications withdrawn by 
                applicants in the relevant area, as well as a breakdown 
                of such figures by State;
                    (E) the daily number of applications summarily 
                declined by the Administrator from applicants in the 
                relevant area, as well as a breakdown of such figures 
                by State;
                    (F) the daily number of applications declined by 
                the Administrator from applicants in the relevant area, 
                as well as a breakdown of such figures by State;
                    (G) the daily number of applications in process 
                from applicants in the relevant area, as well as a 
                breakdown of such figures by State;
                    (H) the daily number of applications approved by 
                the Administrator from applicants in the relevant area, 
                as well as a breakdown of such figures by State;
                    (I) the daily dollar amount of applications 
                approved by the Administrator from applicants in the 
                relevant area, as well as a breakdown of such figures 
                by State;
                    (J) the daily amount of loans dispersed, both 
                partially and fully, by the Administrator to applicants 
                in the relevant area, as well as a breakdown of such 
                figures by State;
                    (K) the daily dollar amount of loans dispersed, 
                both partially and fully, from the relevant area, as 
                well as a breakdown of such figures by State;
                    (L) the number of applications approved, including 
                dollar amount approved, as well as applications 
                partially and fully dispersed, including dollar 
                amounts, since the last report under paragraph (1); and
                    (M) the declaration date, physical damage closing 
                date, economic injury closing date, and number of 
                counties included in the declaration of a major 
                disaster.
    (c) Report on Need for Supplemental Funds.--Not later than 3 months 
before the date on which the Administrator estimates funding will no 
longer be available for the disaster loan program of the Administration 
in any fiscal year, the Administrator shall submit a report to the 
Committee on Small Business and Entrepreneurship of the Senate and to 
the Committee on Small Business of the House of Representatives 
regarding the need for supplemental funds for such loan program, 
including the amount needed to sustain such loan program at current 
funding rates through the end of the fiscal year in which the 
Administrator submits such report.
    (d) Report on Contracting.--
            (1) In general.--Not later than 6 months after the date on 
        which a declared disaster is declared, and every 6 months 
        thereafter until the date that is 18 months after the date on 
        which the declared disaster was declared, the Administrator 
        shall submit a report to the Committee on Small Business and 
        Entrepreneurship of the Senate and to the Committee on Small 
        Business of the House of Representatives regarding Federal 
        contracts awarded as a result of the declared disaster.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include--
                    (A) the total number of contracts awarded as a 
                result of the declared disaster;
                    (B) the total number of contracts awarded to small 
                business concerns as a result of the declared disaster;
                    (C) the total number of contracts awarded to women 
                and minority-owned businesses as a result of the 
                declared disaster; and
                    (D) the total number of contracts awarded to local 
                businesses as a result of the declared disaster.

                     Subtitle D--Energy Emergencies

SEC. 471. FINDINGS.

    Congress finds that--
            (1) a significant number of small business concerns in the 
        United States, nonfarm as well as agricultural producers, use 
        heating oil, natural gas, propane, or kerosene to heat their 
        facilities and for other purposes;
            (2) a significant number of small business concerns in the 
        United States sell, distribute, market, or otherwise engage in 
        commerce directly related to heating oil, natural gas, propane, 
        and kerosene; and
            (3) significant increases in the price of heating oil, 
        natural gas, propane, or kerosene--
                    (A) disproportionately harm small business concerns 
                dependent on those fuels or that use, sell, or 
                distribute those fuels in the ordinary course of their 
                business, and can cause them substantial economic 
                injury;
                    (B) can negatively affect the national economy and 
                regional economies;
                    (C) have occurred in the winters of 1983 to 1984, 
                1988 to 1989, 1996 to 1997, 1999 to 2000, 2000 to 2001, 
                and 2004 to 2005; and
                    (D) can be caused by a host of factors, including 
                international conflicts, global or regional supply 
                difficulties, weather conditions, insufficient 
                inventories, refinery capacity, transportation, and 
                competitive structures in the markets, causes that are 
                often unforeseeable to, and beyond the control of, 
                those who own and operate small business concerns.

SEC. 472. SMALL BUSINESS ENERGY EMERGENCY DISASTER LOAN PROGRAM.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting after paragraph (9), as added by this 
Act, the following:
            ``(10) Energy emergencies.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the term `base price index' means the 
                        moving average of the closing unit price on the 
                        New York Mercantile Exchange for heating oil, 
                        natural gas, or propane for the 10 days, in 
                        each of the most recent 2 preceding years, 
                        which correspond to the trading days described 
                        in clause (ii);
                            ``(ii) the term `current price index' means 
                        the moving average of the closing unit price on 
                        the New York Mercantile Exchange, for the 10 
                        most recent trading days, for contracts to 
                        purchase heating oil, natural gas, or propane 
                        during the subsequent calendar month, commonly 
                        known as the `front month';
                            ``(iii) the term `heating fuel' means 
                        heating oil, natural gas, propane, or kerosene; 
                        and
                            ``(iv) the term `significant increase' 
                        means--
                                    ``(I) with respect to the price of 
                                heating oil, natural gas, or propane, 
                                any time the current price index 
                                exceeds the base price index by not 
                                less than 40 percent; and
                                    ``(II) with respect to the price of 
                                kerosene, any increase which the 
                                Administrator, in consultation with the 
                                Secretary of Energy, determines to be 
                                significant.
                    ``(B) Authorization.--The Administration may make 
                such loans, either directly or in cooperation with 
                banks or other lending institutions through agreements 
                to participate on an immediate or deferred basis, to 
                assist a small business concern that has suffered or 
                that is likely to suffer substantial economic injury as 
                the result of a significant increase in the price of 
                heating fuel occurring on or after October 1, 2004.
                    ``(C) Interest rate.--Any loan or guarantee 
                extended under this paragraph shall be made at the same 
                interest rate as economic injury loans under paragraph 
                (2).
                    ``(D) Maximum amount.--No loan may be made under 
                this paragraph, either directly or in cooperation with 
                banks or other lending institutions through agreements 
                to participate on an immediate or deferred basis, if 
                the total amount outstanding and committed to the 
                borrower under this subsection would exceed $1,500,000, 
                unless such borrower constitutes a major source of 
                employment in its surrounding area, as determined by 
                the Administrator, in which case the Administrator, in 
                the discretion of the Administrator, may waive the 
                $1,500,000 limitation.
                    ``(E) Declarations.--For purposes of assistance 
                under this paragraph--
                            ``(i) a declaration of a disaster area 
                        based on conditions specified in this paragraph 
                        shall be required, and shall be made by the 
                        President or the Administrator; or
                            ``(ii) if no declaration has been made 
                        under clause (i), the Governor of a State in 
                        which a significant increase in the price of 
                        heating fuel has occurred may certify to the 
                        Administration that small business concerns 
                        have suffered economic injury as a result of 
                        such increase and are in need of financial 
                        assistance which is not otherwise available on 
                        reasonable terms in that State, and upon 
                        receipt of such certification, the 
                        Administration may make such loans as would 
                        have been available under this paragraph if a 
                        disaster declaration had been issued.
                    ``(F) Use of funds.--Notwithstanding any other 
                provision of law, loans made under this paragraph may 
                be used by a small business concern described in 
                subparagraph (B) to convert from the use of heating 
                fuel to a renewable or alternative energy source, 
                including agriculture and urban waste, geothermal 
                energy, cogeneration, solar energy, wind energy, or 
                fuel cells.''.
    (b) Conforming Amendments Relating to Heating Fuel.--Section 3(k) 
of the Small Business Act (15 U.S.C. 632(k)) is amended--
            (1) by inserting ``, significant increase in the price of 
        heating fuel'' after ``civil disorders''; and
            (2) by inserting ``other'' before ``economic''.
    (c) Effective Period.--The amendments made by this section shall 
apply during the 4-year period beginning on the date on which 
guidelines are published by the Administrator under section 474.

SEC. 473. AGRICULTURAL PRODUCER EMERGENCY LOANS.

    (a) In General.--Section 321(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961(a)) is amended--
            (1) in the first sentence--
                    (A) by striking ``operations have'' and inserting 
                ``operations (i) have''; and
                    (B) by inserting before ``: Provided,'' the 
                following: ``, or (ii)(I) are owned or operated by such 
                an applicant that is also a small business concern (as 
                defined in section 3 of the Small Business Act (15 
                U.S.C. 632)), and (II) have suffered or are likely to 
                suffer substantial economic injury on or after October 
                1, 2004, as the result of a significant increase in 
                energy costs or input costs from energy sources 
                occurring on or after October 1, 2004, in connection 
                with an energy emergency declared by the President or 
                the Secretary'';
            (2) in the third sentence, by inserting before the period 
        at the end the following: ``or by an energy emergency declared 
        by the President or the Secretary''; and
            (3) in the fourth sentence--
                    (A) by inserting ``or energy emergency'' after 
                ``natural disaster'' each place that term appears; and
                    (B) by inserting ``or declaration'' after 
                ``emergency designation''.
    (b) Funding.--Funds available on the date of enactment of this Act 
for emergency loans under subtitle C of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961 et seq.) shall be available to carry out 
the amendments made by subsection (a) to meet the needs resulting from 
energy emergencies.
    (c) Effective Period.--The amendments made by this section shall 
apply during the 4-year period beginning on the date on which 
guidelines are published by the Secretary of Agriculture under section 
474.

SEC. 474. GUIDELINES AND RULEMAKING.

    (a) Guidelines.--Not later than 30 days after the date of enactment 
of this Act, the Administrator and the Secretary of Agriculture shall 
each issue such guidelines as the Administrator or the Secretary, as 
applicable, determines to be necessary to carry out this subtitle and 
the amendments made by this subtitle.
    (b) Rulemaking.--Not later than 30 days after the date of enactment 
of this Act, the Administrator, after consultation with the Secretary 
of Energy, shall promulgate regulations specifying the method for 
determining a significant increase in the price of kerosene under 
section 7(b)(10)(A)(iv)(II) of the Small Business Act, as added by this 
Act.

SEC. 475. REPORTS.

    (a) Small Business Administration.--Not later than 12 months after 
the date on which the Administrator issues guidelines under section 
474, and annually thereafter until the date that is 12 months after the 
end of the effective period of section 7(b)(10) of the Small Business 
Act, as added by this Act, the Administrator shall submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives, a report 
on the effectiveness of the assistance made available under section 
7(b)(10) of the Small Business Act, as added by this Act, including--
            (1) the number of small business concerns that applied for 
        a loan under such section and the number of those that received 
        such loans;
            (2) the dollar value of those loans;
            (3) the States in which the small business concerns that 
        received such loans are located;
            (4) the type of heating fuel or energy that caused the 
        significant increase in the cost for the participating small 
        business concerns; and
            (5) recommendations for ways to improve the assistance 
        provided under such section 7(b)(10), if any.
    (b) Department of Agriculture.--Not later than 12 months after the 
date on which the Secretary of Agriculture issues guidelines under 
section 474, and annually thereafter until the date that is 12 months 
after the end of the effective period of the amendments made to section 
321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1961(a)) by this subtitle, the Secretary shall submit to the Committee 
on Small Business and Entrepreneurship and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate and the Committee on 
Small Business and the Committee on Agriculture of the House of 
Representatives, a report that--
            (1) describes the effectiveness of the assistance made 
        available under section 321(a) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1961(a)); and
            (2) contains recommendations for ways to improve the 
        assistance provided under such section 321(a), if any.

         TITLE V--VETERANS AND MEMBERS OF THE GUARD AND RESERVE

SEC. 501. DEFINITIONS.

    In this title--
            (1) the terms ``active duty'' and ``military department'' 
        have the meaning given the terms in section 101 of title 10, 
        United States Code;
            (2) the term ``member of the Guard or Reserve'' means a 
        member of a reserve component of the Armed Forces, as defined 
        in section 10101 of title 10, United States Code;
            (3) the term ``Secretary'' means the Secretary of Defense; 
        and
            (4) the term ``veteran'' has the same meaning as in section 
        101(2) of title 38, United States Code.

                          Subtitle A--Veterans

SEC. 521. FINDINGS.

    Congress finds the following:
            (1) From September 2001 through November 2004, 
        approximately 410,000 members of the Guard or Reserve, have 
        been mobilized in support of United States military operations.
            (2) According to 2004 data from the Manpower Data Center of 
        the Department of Defense, an estimated 35 percent of members 
        of the Guard or Reserve are either self-employed or own or are 
        employed by a small business concern.
            (3) The majority of privately employed members of the Guard 
        or Reserve either work for a small business concern or are 
        self-employed.
            (4) As a result of activations, many small business 
        concerns have been forced to go without their owners and key 
        personnel for months, and sometimes years, on end.
            (5) The effects have been devastating to such patriotic 
        small business concerns.
            (6) The Office of Veterans Business Development of the 
        Administration has made a concerted effort to reach out to 
        small business concerns affected by deployments, but given the 
        sheer numbers of those deployed, their resources have been 
        stretched thin.
            (7) In addition, the Office of Veterans Business 
        Development has been required to broaden its delivery of 
        services, as directed by Executive Order 13360, to provide 
        procurement training programs for service-disabled veterans.
            (8) The purpose of this subtitle is to stem the effects of 
        deployments of members of the Guard or Reserve on small 
        business concerns, and better assist veterans and service-
        disabled veterans with their business needs.

SEC. 522. INCREASED FUNDING FOR THE OFFICE OF VETERANS BUSINESS 
              DEVELOPMENT.

    There is authorized to be appropriated to the Office of Veterans 
Business Development of the Administration, and to remain available 
until expended--
            (1) $2,000,000 for fiscal year 2007;
            (2) $2,100,000 for fiscal year 2008; and
            (3) $2,200,000 for fiscal year 2009.

SEC. 523. EXTENSION OF ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS.

    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, 2006'' and inserting ``September 30, 2009''.

SEC. 524. RELIEF FROM TIME LIMITATIONS FOR VETERAN-OWNED SMALL 
              BUSINESSES.

    Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) is 
amended by adding at the end the following:
            ``(5) Relief from time limitations.--
                    ``(A) In general.--Any time limitation on any 
                qualification, certification, or period of 
                participation imposed under this Act on any program 
                available to small business concerns shall be extended 
                for a small business concern that--
                            ``(i) is owned and controlled by--
                                    ``(I) a veteran who was called or 
                                ordered to active duty under a 
                                provision of law specified in section 
                                101(a)(13)(B) of title 10, United 
                                States, on or after September 11, 2001; 
                                or
                                    ``(II) a service-disabled veteran 
                                who became such a veteran due to an 
                                injury or illness incurred or 
                                aggravated in the active military, 
                                naval, or air service during a period 
                                of active duty under a call or order to 
                                active duty under a provision of law 
                                referred to in subclause (I) on or 
                                after September 11, 2001; and
                            ``(ii) was subject to the time limitation 
                        during such period of active duty.
                    ``(B) Duration.--Upon submission of proper 
                documentation to the Administrator, the extension of a 
                time limitation under subparagraph (A) shall be equal 
                to the period of time that such veteran who owned or 
                controlled such a concern was on active duty as 
                described in that subparagraph.''.

                     Subtitle B--Guard and Reserve

SEC. 541. GUARD AND RESERVE LOANS.

    (a) In General.--Section 7(b)(3) of the Small Business Act (15 
U.S.C. 636(b)(3)) is amended--
            (1) in subparagraph (E), by striking ``$1,500,000'' each 
        place such term appears and inserting ``$2,000,000''; and
            (2) by adding at the end the following:
                    ``(G) Notwithstanding any other provision of law, a 
                loan not greater than $25,000 may be made under this 
                paragraph without collateral.
                    ``(H) The Administrator shall give priority to any 
                application for a loan under this paragraph, and shall 
                process and make a determination regarding such 
                applications prior to processing or making a 
                determination on other loan applications under this 
                subsection, on a rolling basis.''.
    (b) Loan Information.--
            (1) In general.--The Administrator and the Secretary shall 
        develop a joint website and printed materials providing 
        information regarding the program under section 7(b)(3) of the 
        Small Business Act.
            (2) Marketing.--The Administrator is authorized--
                    (A) to advertise and promote the program under 
                section 7(b)(3) of the Small Business Act jointly with 
                the Secretary and veteran's service organizations; and
                    (B) to advertise and promote participation by 
                lenders in such program jointly with trade associations 
                for banks or other lending institutions.

SEC. 542. STUDY OF INSURANCE PROGRAM FOR MEMBERS OF THE GUARD AND 
              RESERVE.

    (a) In General.--The Administrator and the Secretary shall jointly 
conduct a study of the feasibility of--
            (1) creating a business mobilization and interruption 
        insurance program for members of the Guard or Reserve who own 
        or operate small business concerns;
            (2) creating an insurance program to repay debts to the 
        Administrator in the event of the death or significant injury 
        of a member of the Guard or Reserve who is on active duty; and
            (3) increasing the use of credit unions affiliated with the 
        Department of Defense in programs administered by the 
        Administrator.
    (b) Report.--Not later than 6 months after the date of enactment of 
this Act, the Administrator and the Secretary shall submit a joint 
report to the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives regarding the study conducted under subsection (a).

SEC. 543. GRANT ASSISTANCE FOR MILITARY RESERVISTS' SMALL BUSINESS 
              CONCERNS.

    (a) Authorization of Grants.--Section 7(b)(3)(B) of the Small 
Business Act (15 U.S.C. 636(b)(3)(B)) is amended by inserting ``or 
grants'' after ``or deferred basis)''.
    (b) Grant Specifications.--Section 7(b)(3) of the Small Business 
Act (15 U.S.C. 636(b)(3)), as amended by this Act, is amended by adding 
at the end the following:
                    ``(I) Grants made under subparagraph (B)--
                            ``(i) may be awarded in addition to any 
                        loan made under subparagraph (B);
                            ``(ii) shall not exceed $25,000; and
                            ``(iii) shall be made only to a small 
                        business concern--
                                    ``(I) that provides a business plan 
                                demonstrating viability for not less 
                                than 3 future years;
                                    ``(II) with 10 or fewer employees;
                                    ``(III) that has not received 
                                another grant under subparagraph (B) in 
                                the previous 2 years.''.
    (c) Authorization of Appropriations.--Section 20(e)(2) of the Small 
Business Act (15 U.S.C. 631 note), as amended by this Act, is amended 
by inserting after subparagraph (B) the following:
                    ``(C) Grant assistance for military reservists' 
                small businesses.--There are authorized to be 
                appropriated for grants under section 7(b)(3)(B) for 
                each of fiscal years 2007 through 2009.''.

                    Subtitle C--Veterans Corporation

SEC. 561. PURPOSES OF THE CORPORATION.

    (a) Purposes.--Section 33(b) of the Small Business Act (15 U.S.C. 
657c(b)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) to establish and maintain a national network of 
        information and assistance centers for use by veterans and the 
        public, by--
                    ``(A) providing information regarding small 
                business oriented employment or development programs;
                    ``(B) providing access to studies and research 
                concerning the management, financing, and operation of 
                small business enterprises, small business 
                participation in international markets, export 
                promotion, and technology transfer;
                    ``(C) providing referrals to business analysts who 
                can provide direct counseling to veteran small business 
                concern owners regarding the subjects described in this 
                section;
                    ``(D) serving as an information clearinghouse for 
                business development and entrepreneurial assistance 
                materials, as well as other veteran assistance 
                materials, as determined necessary, that are provided 
                by Federal, State and local governments; and
                    ``(E) providing assistance to veterans and service-
                disabled veterans in efforts to gain access to Federal 
                prime contracts and subcontracts; and''; and
            (2) in paragraph (2), by striking ``including service-
        disabled veterans'' and inserting ``particularly service-
        disabled veterans''.

SEC. 562. MANAGEMENT OF THE CORPORATION.

    (a) Appointments to the Board.--Section 33(c)(2) of the Small 
Business Act (15 U.S.C. 657c(c)(2)) is amended to read as follows:
            ``(2) Appointment of voting members.--
                    ``(A) In general.--The President shall, after 
                considering recommendations proposed under subparagraph 
                (B), appoint the 9 voting members of the Board, all of 
                whom shall be United States citizens, and not more than 
                5 of whom shall be members of the same political party.
                    ``(B) Recommendations.--Recommendations shall be 
                submitted to the President for appointments under this 
                paragraph by the chairman or ranking member of the 
                Committee on Small Business and Entrepreneurship or the 
                Committee on Veterans Affairs of the Senate or the 
                Committee on Small Business or the Committee on 
                Veterans Affairs of the House of Representatives.
                    ``(C) Consultation with veteran organizations.--
                Recommendations under subparagraph (B) shall be made 
                after consultation with such veteran service 
                organizations as are determined appropriate by the 
                member of Congress making the recommendation.
                    ``(D) Considerations.--Consideration for 
                eligibility for membership on the Board shall include 
                business experience, knowledge of veterans' issues, and 
                ability to raise funds for the Corporation.
                    ``(E) Limitation on internal recommendations.--No 
                member of the Board may recommend an individual for 
                appointment to another position on the Board.''.
    (b) Terms.--Section 33(c)(6) of the Small Business Act (15 U.S.C. 
657c(c)(6)) is amended to read as follows:
            ``(6) Terms of appointed members.--
                    ``(A) In general.--Each member of the Board of 
                Directors appointed under paragraph (2) shall serve for 
                a term of 4 years.
                    ``(B) Unexpired terms.--Any member of the Board of 
                Directors appointed to fill a vacancy occurring before 
                the expiration of the term for which the member's 
                predecessor was appointed shall be appointed only for 
                the remainder of the term. A member of the Board of 
                Directors may not serve beyond the expiration of the 
                term for which the member is appointed.''.
    (c) Removal of Board Members.--Section 33(c) of the Small Business 
Act (15 U.S.C. 657c(c)) is amended by adding at the end the following:
            ``(12) Removal of members.--With the approval of a majority 
        of the Board of Directors and the approval of the chairmen and 
        ranking members of the Committee on Small Business and 
        Entrepreneurship and the Committee on Veterans Affairs of the 
        Senate, the Corporation may remove a member of the Board of 
        Directors that is deemed unable to fulfill his or her duties, 
        as established under this section.''.

SEC. 563. TIMING OF TRANSFER OF ADVISORY COMMITTEE DUTIES.

    Section 33(h) of the Small Business Act (15 U.S.C. 657c(h)) is 
amended by striking ``October 1, 2006'' and inserting ``October 1, 
2009''.

SEC. 564. AUTHORIZATION OF APPROPRIATIONS.

    Section 33(k) of the Small Business Act (15 U.S.C. 657c(k)(1)) is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting ``, through the Office of 
                Veteran's Business Development of the Administration,'' 
                after ``to the Corporation''; and
                    (B) by striking subparagraphs (A) through (D) and 
                inserting the following:
                    ``(A) $2,000,000 for fiscal year 2007;
                    ``(B) $2,000,000 for fiscal year 2008; and
                    ``(C) $2,000,000 for fiscal year 2009.'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Matching requirements.--
                    ``(A) In general.--The Administration shall 
                require, as a condition of any grant (or amendment or 
                modification thereto) made to the Corporation under 
                this section, that a matching amount (excluding any 
                fees collected from recipients of such assistance) 
                equal to the amount of such grant be provided from 
                sources other than the Federal Government.
                    ``(B) Limitation.--Not more than 33 percent of the 
                total revenue of the Corporation, including the funds 
                raised for use at the Veteran's Business Resource 
                Centers, may be acquired from fee-for-service tools or 
                direct charge to the veteran receiving services, as 
                described in this section, except that the amount of 
                any such fee or charge may not exceed the amount of 
                such fee or charge in effect on the date of enactment 
                of the Small Business Reauthorization and Improvements 
                Act of 2006.
                    ``(C) Mission-related limitation.--The Corporation 
                may not engage in revenue producing programs, services, 
                or related business ventures that are not intended to 
                carry out the mission and activities described in 
                section (b).
                    ``(D) Return to treasury.--Funds appropriated under 
                this section that have not been expended at the end of 
                the fiscal year for which they were appropriated shall 
                revert back to the Treasury.''; and
            (3) by striking paragraph (3).

SEC. 565. PRIVATIZATION.

    Section 33 of the Small Business Act (15 U.S.C. 657c) is amended--
            (1) by striking subsections (f) and (i); and
            (2) by redesignating subsections (g), (h), (j), and (k) as 
        subsections (f) through (i), respectively; and
            (3) by adding at the end the following:
    ``(j) Privatization.--
            ``(1) Development of plan.--Not later than 6 months after 
        the date of enactment of the Small Business Reauthorization and 
        Improvements Act of 2006, the Corporation shall develop, 
        institute, and implement a plan to raise private funds and 
        become a self-sustaining corporation.
            ``(2) GAO audit and report.--
                    ``(A) Audit.--The Comptroller General of the United 
                States shall conduct an audit of the Corporation, in 
                accordance with generally accepted accounting 
                principles and generally accepted audit standards.
                    ``(B) Inclusions.--The audit required by this 
                paragraph shall include--
                            ``(i) an evaluation of the efficacy of the 
                        Corporation in carrying out the purposes under 
                        section (b); and
                            ``(ii) an analysis of the feasibility of 
                        the sustainability plan developed by the 
                        Corporation.
                    ``(C) Report.--Not later than 1 year after the date 
                of enactment of the Small Business Reauthorization and 
                Improvements Act of 2006, the Comptroller General shall 
                submit a report on the audit conducted under this 
                paragraph to the Committee on Small Business and 
                Entrepreneurship and the Committee on Veterans Affairs 
                of the Senate and to the Committee on Small Business 
                and the Committee on Veterans Affairs of the House of 
                Representatives.''.

           TITLE VI--ENERGY LOANS FOR SMALL BUSINESS CONCERNS

SEC. 601. EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY.

    Section 7(a)(31) of the Small Business Act (15 U.S.C. 636(a)(31)) 
is amended by adding at the end the following:
                    ``(F) Express loans for renewable energy and energy 
                efficiency.--
                            ``(i) Definitions.--In this subparagraph--
                                    ``(I) the term `biomass'--
                                            ``(aa) means any organic 
                                        material that is available on a 
                                        renewable or recurring basis, 
                                        including--

                                                    ``(AA) agricultural 
                                                crops;

                                                    ``(BB) trees grown 
                                                for energy production;

                                                    ``(CC) wood waste 
                                                and wood residues;

                                                    ``(DD) plants 
                                                (including aquatic 
                                                plants and grasses);

                                                    ``(EE) residues;

                                                    ``(FF) fibers;

                                                    ``(GG) animal 
                                                wastes and other waste 
                                                materials; and

                                                    ``(HH) fats, oils, 
                                                and greases (including 
                                                recycled fats, oils, 
                                                and greases); and

                                            ``(bb) does not include--

                                                    ``(AA) paper that 
                                                is commonly recycled; 
                                                or

                                                    ``(BB) unsegregated 
                                                solid waste;

                                    ``(II) the term `energy efficiency 
                                project' means the installation or 
                                upgrading of equipment that results in 
                                a significant reduction in energy 
                                usage; and
                                    ``(III) the term `renewable energy 
                                system' means a system of energy 
                                derived from--
                                            ``(aa) a wind, solar, 
                                        biomass, or geothermal source; 
                                        or
                                            ``(bb) hydrogen derived 
                                        from biomass or water using an 
                                        energy source described in item 
                                        (aa).
                            ``(ii) Loans.--Loans may be made under the 
                        `Express Loan Program' for the purpose of--
                                    ``(I) purchasing a renewable energy 
                                system; or
                                    ``(II) an energy efficiency project 
                                for an existing business.''.

                      TITLE VII--HEALTH INSURANCE

SEC. 701. PURPOSE.

    The purpose of this title is to establish a 4-year pilot program to 
provide information and educational materials to small business 
concerns regarding health insurance options, including coverage options 
within the small group market.

SEC. 702. DEFINITIONS.

    In this title:
            (1) Association.--The term ``association'' means an 
        association established under section 21(a)(3)(A) of the Small 
        Business Act (15 U.S.C. 648(a)(3)(A)) representing a majority 
        of small business development centers.
            (2) Participating small business development center.--The 
        term ``participating small business development center'' means 
        a small business development center described in section 21 of 
        the Small Business Act (15 U.S.C. 648) that--
                    (A) is certified under section 21(k)(2) of the 
                Small Business Act (15 U.S.C. 648(k)(2)); and
                    (B) receives a grant under the pilot program.
            (3) Pilot program.--The term ``pilot program'' means the 
        small business health insurance information pilot program 
        established under this title.
            (4) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, American 
        Samoa, and Guam.

SEC. 703. SMALL BUSINESS HEALTH INSURANCE INFORMATION PILOT PROGRAM.

    (a) Authority.--The Administrator shall establish a pilot program 
to make grants to small business development centers to provide neutral 
and objective information and educational materials regarding health 
insurance options, including coverage options within the small group 
market, to small business concerns.
    (b) Applications.--
            (1) Posting of information.--Not later than 90 days after 
        the date of enactment of this Act, the Administrator shall post 
        on the website of the Administration and publish in the Federal 
        Register a guidance document describing--
                    (A) the requirements of an application for a grant 
                under the pilot program; and
                    (B) the types of informational and educational 
                materials regarding health insurance options to be 
                created under the pilot program, including by 
                referencing materials and resources developed by the 
                National Association of Insurance Commissioners, the 
                Kaiser Family Foundation, and the Healthcare Leadership 
                Council.
            (2) Submission.--A small business development center 
        desiring a grant under the pilot program shall submit an 
        application at such time, in such manner, and accompanied by 
        such information as the Administrator may reasonably require.
    (c) Selection of Participating Small Business Development 
Centers.--
            (1) In general.--The Administrator shall select not more 
        than 20 small business development centers to receive a grant 
        under the pilot program.
            (2) Selection of programs.--In selecting small business 
        development centers under paragraph (1), the Administrator may 
        not select--
                    (A) more than 2 programs from each of the groups of 
                States described in paragraph (3); and
                    (B) more than 1 program in any State.
            (3) Groupings.--The groups of States described in this 
        paragraph are the following:
                    (A) Group 1.--Group 1 shall consist of Maine, 
                Massachusetts, New Hampshire, Connecticut, Vermont, and 
                Rhode Island.
                    (B) Group 2.--Group 2 shall consist of New York, 
                New Jersey, Puerto Rico, and the Virgin Islands.
                    (C) Group 3.--Group 3 shall consist of 
                Pennsylvania, Maryland, West Virginia, Virginia, the 
                District of Columbia, and Delaware.
                    (D) Group 4.--Group 4 shall consist of Georgia, 
                Alabama, North Carolina, South Carolina, Mississippi, 
                Florida, Kentucky, and Tennessee.
                    (E) Group 5.--Group 5 shall consist of Illinois, 
                Ohio, Michigan, Indiana, Wisconsin, and Minnesota.
                    (F) Group 6.--Group 6 shall consist of Texas, New 
                Mexico, Arkansas, Oklahoma, and Louisiana.
                    (G) Group 7.--Group 7 shall consist of Missouri, 
                Iowa, Nebraska, and Kansas.
                    (H) Group 8.--Group 8 shall consist of Colorado, 
                Wyoming, North Dakota, South Dakota, Montana, and Utah.
                    (I) Group 9.--Group 9 shall consist of California, 
                Guam, American Samoa, Hawaii, Nevada, and Arizona.
                    (J) Group 10.--Group 10 shall consist of 
                Washington, Alaska, Idaho, and Oregon.
            (4) Deadline for selection.--The Administrator shall make 
        selections under this subsection not later than 6 months after 
        the later of the date on which the information described in 
        subsection (b)(1) is posted on the website of the 
        Administration and the date on which the information described 
        in subsection (b)(1) is published in the Federal Register.
    (d) Use of Funds.--
            (1) In general.--A participating small business development 
        center shall use funds provided under the pilot program to--
                    (A) create and distribute informational materials; 
                and
                    (B) conduct training and educational activities.
            (2) Content of materials.--
                    (A) In general.--In creating materials under the 
                pilot program, a participating small business 
                development center shall evaluate and incorporate 
                relevant portions of existing informational materials 
                regarding health insurance options, including materials 
                and resources developed by the National Association of 
                Insurance Commissioners, the Kaiser Family Foundation, 
                and the Healthcare Leadership Council.
                    (B) Health insurance options.--In incorporating 
                information regarding health insurance options under 
                subparagraph (A), a participating small business 
                development center shall provide neutral and objective 
                information regarding health insurance options in the 
                geographic area served by the participating small 
                business development center, including traditional 
                employer sponsored health insurance for the individual 
                and group insurance markets, such as the health 
                insurance options defined in section 2791 of the Public 
                Health Services Act (42 U.S.C. 300gg-91) or section 125 
                or 223(d) of the Internal Revenue Code of 1986, and 
                Federal and State health insurance programs.
    (e) Grant Amounts.--Each participating small business development 
center program shall receive a grant in an amount equal to--
            (1) not less than $150,000 per fiscal year; and
            (2) not more than $300,000 per fiscal year.
    (f) Matching Requirement.--Subparagraphs (A) and (B) of section 
21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) shall apply to 
assistance made available under the pilot program.

SEC. 704. REPORTS.

    Each participating small business development center shall transmit 
to the Administrator and the Chief Counsel for Advocacy of the 
Administration, as the Administrator may direct, a quarterly report 
that includes--
            (1) a summary of the information and educational materials 
        regarding health insurance options provided by the 
        participating small business development center under the pilot 
        program; and
            (2) the number of small business concerns assisted under 
        the pilot program.

SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this title--
            (1) $5,000,000 for the first fiscal year beginning after 
        the date of enactment of this Act; and
            (2) $5,000,000 for each of the 3 fiscal years following the 
        fiscal year described in paragraph (1).
    (b) Limitation on Use of Other Funds.--The Administrator may carry 
out the pilot program only with amounts appropriated in advance 
specifically to carry out this title.

         TITLE VIII--WOMEN'S SMALL BUSINESS OWNERSHIP PROGRAMS

SEC. 801. 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 management, 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 before the 
                period at the end the following: ``, the National 
                Women's Business Council, and any association of 
                women's business centers''; 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 Administrator shall provide annual 
        programmatic and financial oversight training for women's 
        business ownership representatives and district office 
        technical representatives of the Administration to enable 
        representatives to carry out their responsibilities under this 
        section.
            ``(5) Grant program improvement.--The Administrator 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. 802. 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 fewer 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.--
                    ``(A) Issuance.--The Administrator 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.
                    ``(B) Renewals.--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).
                    ``(C) Equal allocations.--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 equally to eligible 
                centers, unless any center requests a lower amount than 
                the allocable amount.
            ``(2) Cooperative agreement authority.--
                    ``(A) In general.--The Administrator 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 
                        Administrator may terminate the grant.
                            ``(ii) Exception.--Notwithstanding a 
                        violation by a grant recipient of a grant 
                        obligation under this subsection, the 
                        Administrator 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 this subsection 
        may be used to provide training and counseling in the areas 
        of--
                    ``(A) pre-business, business start-up, and business 
                operations;
                    ``(B) financial planning assistance;
                    ``(C) procurement assistance;
                    ``(D) management assistance;
                    ``(E) marketing assistance; and
                    ``(F) international trade.
            ``(4) Matching requirement.--
                    ``(A) Women's business center grants.--As a 
                condition of receiving financial assistance under this 
                subsection, 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 under 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 Administrator 
                        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 under this subsection may be made 
                by grant or cooperative agreement and may contain such 
                provisions, as necessary, to provide for payments in 
                lump sum or installments, and in advance or by way of 
                reimbursement. The Administrator may disburse not more 
                than 25 percent of the Federal share awarded to a grant 
                recipient for each year 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 Administrator 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 who are 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 
                Administrator may reasonably require.
            ``(6) Review and approval of applications for an initial 
        grant.--
                    ``(A) In general.--The Administrator shall--
                            ``(i) review each application submitted 
                        under paragraph (5), based on the information 
                        described in such paragraph and the criteria 
                        set forth under subparagraph (B) of this 
                        paragraph; 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 Administrator 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 
                        Administrator.
                            ``(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 
                                who are 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 Administrator 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 Administrator, 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 who are 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 
                Administrator may reasonably require.
            ``(8) Review and approval of applications for a renewal 
        grant.--
                    ``(A) In general.--The Administrator shall--
                            ``(i) review each application submitted 
                        under paragraph (7), based on the information 
                        described in such paragraph and the criteria 
                        set forth under subparagraph (B) of this 
                        paragraph; 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 Administrator 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 
                Administrator.
                    ``(C) Conditions for continued funding.--In 
                determining whether to renew a grant or cooperative 
                agreement with a women's business center, the 
                Administrator--
                            ``(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 
                        Administrator 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, the Administrator 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 Administrator 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 under this 
        subsection 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 start-up 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 subsection 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 women's 
                        business center, but a disclosure under this 
                        clause shall be limited to the information 
                        necessary for such audit.
                    ``(B) Administration use of information.--This 
                subsection 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 2006, 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 a sustainability grant under 
                subparagraph (A) is scheduled to expire not later than 
                June 30, 2007, 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 
                Reauthorization and Improvements Act of 2006--
                            ``(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 Administrator shall recognize the 
        existence and activities of any association of women's business 
        centers established to address matters of common concern.
            ``(2) Consultation.--The Administrator shall consult with 
        each association of women's business centers 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 
                (e)(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 
        Administrator'';
            (4) in subsection (h), as redesignated by paragraph (1) of 
        this subsection--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) In general.--There are authorized to be appropriated 
        to the Administration to carry out this section, to remain 
        available until expended--
                    ``(A) $15,000,000 for fiscal year 2007, 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, 2006 and ending on June 30, 2007;
                    ``(B) $16,000,000 for fiscal year 2008; and
                    ``(C) $17,500,000 for fiscal year 2009.
            ``(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
                    (B) by striking paragraph (4); and
            (5) by striking subsection (l).

SEC. 803. NATIONAL WOMEN'S BUSINESS COUNCIL.

    (a) Cosponsorship Authority.--Section 406 of the Women's Business 
Ownership Act of 1988 (15 U.S.C. 7106) is amended by adding at the end 
the following:
    ``(f) Cosponsorship Authority.--The Council is authorized to enter 
into agreements as a cosponsor 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. 7107(f)) is amended by adding at the end the 
following:
            ``(3) Representation of member organizations.--In 
        consultation with the chairperson of the Council and the 
        Administrator, a national women's business organization or 
        small business concern that is represented on the Council may 
        replace its representative member on the Council during the 
        service term to which that member was appointed.''.
    (c) Establishment of Working Groups.--Title IV of the Women's 
Business Ownership Act of 1988 (15 U.S.C. 7101 et seq.) is amended by 
inserting after section 410, the following new section:

``SEC. 411. WORKING GROUPS.

    ``(a) Establishment.--There are established within the Council, 
working groups, as directed by the chairperson.
    ``(b) Duties.--The working groups 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. 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 
business concerns in the United States.''.
    (e) Authorization of Appropriations.--Section 410(a) of the Women's 
Business Ownership Act of 1988 (15 U.S.C. 7110(a)) is amended by 
striking ``2001 through 2003, of which $550,000'' and inserting ``2007 
through 2009, of which not less than 30 percent''.

SEC. 804. 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. 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. 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 Council.''.

SEC. 805. PRESERVING THE INDEPENDENCE OF THE NATIONAL WOMEN'S BUSINESS 
              COUNCIL.

    (a) 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.
            (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).
    (b) Maintenance of Partisan Balance.--Section 407(f) of the Women's 
Business Ownership Act of 1988 (15 U.S.C. 7107(f)), as amended by this 
Act, is amended by adding at the end the following:
            ``(4) Partisan balance.--When filling a vacancy under 
        paragraph (1) of this subsection of a member appointed under 
        paragraph (1) or (2) of subsection (b), 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.
            ``(5) 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 expiration of either 
        such 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, as applicable.''.

                     TITLE IX--INTERNATIONAL TRADE

SEC. 901. SMALL BUSINESS ADMINISTRATION ASSOCIATE ADMINISTRATOR FOR 
              INTERNATIONAL TRADE.

    (a) Establishment.--Section 22(a) of the Small Business Act (15 
U.S.C. 649(a)) is amended by adding at the end the following: ``The 
head of the Office shall be the Associate Administrator for 
International Trade, who shall be responsible to the Administrator.''.
    (b) Authority for Additional Associate Administrator.--Section 
4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended--
            (1) in the fifth sentence, by striking ``five Associate 
        Administrators'' and inserting ``Associate Administrators''; 
        and
            (2) by adding at the end the following: ``One of the 
        Associate Administrators shall be the Associate Administrator 
        for International Trade, who shall be the head of the Office of 
        International Trade established under section 22.''.
    (c) Discharge of Administration International Trade 
Responsibilities.--Section 22 of the Small Business Act (15 U.S.C. 649) 
is amended by adding at the end the following:
    ``(h) Discharge of Administration International Trade 
Responsibilities.--The Administrator shall ensure that--
            ``(1) the responsibilities of the Administration regarding 
        international trade are carried out through the Associate 
        Administrator for International Trade;
            ``(2) the Associate Administrator for International Trade 
        has sufficient resources to carry out such responsibilities; 
        and
            ``(3) the Associate Administrator for International Trade 
        has direct supervision and control over the staff of the Office 
        of International Trade, and over any employee of the 
        Administration whose principal duty station is a United States 
        Export Assistance Center or any successor entity.''.
    (d) Role of Associate Administrator in Carrying Out International 
Trade Policy.--Section 2(b)(1) of the Small Business Act (15 U.S.C. 
631(b)(1)) is amended in the matter preceding subparagraph (A)--
            (1) by inserting ``the Administrator of'' before ``the 
        Small Business Administration''; and
            (2) by inserting ``through the Associate Administrator for 
        International Trade, and'' before ``in cooperation with''.
    (e) Technical Amendment.--Section 22(c)(5) of the Small Business 
Act (15 U.S.C. 649(c)(5)) is amended by striking the period at the end 
and inserting a semicolon.
    (f) Effective Date.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall appoint an Associate 
Administrator for International Trade under section 22 of the Small 
Business Act (15 U.S.C. 649), as amended by this section.

SEC. 902. OFFICE OF INTERNATIONAL TRADE.

    Section 22 of the Small Business Act (15 U.S.C. 649) is amended--
            (1) by striking ``sec. 22. (a) There'' and inserting the 
        following:

``SEC. 22. OFFICE OF INTERNATIONAL TRADE.

    ``(a) Establishment.--There''.
            (2) in subsection (a), by inserting ``(referred to in this 
        section as the `Office'),'' after ``Trade'';
            (3) in subsection (b)--
                    (A) by striking ``The Office'' and inserting the 
                following:
    ``(b) Trade Distribution Network.--The Office, including United 
States Export Assistance Centers (referred to as `one-stop shops' in 
section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988 
(15 U.S.C. 4721(b)(8)) and as `export centers' in this section)''; and
                    (B) by amending paragraph (1) to read as follows:
            ``(1) assist in maintaining a distribution network using 
        regional and local offices of the Administration, the small 
        business development center network, the women's business 
        center network, and export centers for--
                    ``(A) trade promotion;
                    ``(B) trade finance;
                    ``(C) trade adjustment;
                    ``(D) trade remedy assistance; and
                    ``(E) trade data collection.'';
            (4) in subsection (c)--
                    (A) by redesignating paragraphs (1) through (8) as 
                paragraphs (2) through (9), respectively;
                    (B) by inserting before paragraph (2), as so 
                redesignated, the following:
            ``(1) establish annual goals for the Office relating to--
                    ``(A) enhancing the exporting capability of small 
                business concerns and small manufacturers;
                    ``(B) facilitating technology transfers;
                    ``(C) enhancing programs and services to assist 
                small business concerns and small manufacturers to 
                compete effectively and efficiently against foreign 
                entities;
                    ``(D) increasing the access to capital by small 
                business concerns;
                    ``(E) disseminating information concerning Federal, 
                State, and private programs and initiatives; and
                    ``(F) ensuring that the interests of small business 
                concerns are adequately represented in trade 
                negotiations;'';
                    (C) in paragraph (2), as so redesignated, by 
                striking ``mechanism for'' and all that follows through 
                ``(D)'' and inserting the following: ``mechanism for--
                    ``(A) identifying subsectors of the small business 
                community with strong export potential;
                    ``(B) identifying areas of demand in foreign 
                markets;
                    ``(C) prescreening foreign buyers for commercial 
                and credit purposes; and
                    ``(D)''; and
                    (D) in paragraph (9), as so redesignated--
                            (i) in the matter preceding subparagraph 
                        (A)--
                                    (I) by striking ``full-time export 
                                development specialists to each 
                                Administration regional office and 
                                assigning''; and
                                    (II) by striking ``office. Such 
                                specialists'' and inserting ``office 
                                and providing each Administration 
                                regional office with a full-time export 
                                development specialist, who'';
                            (ii) in subparagraph (D), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (E), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iv) by adding at the end the following:
                    ``(F) participate jointly with employees of the 
                Office in an annual training program that focuses on 
                current small business needs for exporting; and
                    ``(G) jointly develop and conduct training programs 
                for exporters and lenders in cooperation with the 
                United States Export Assistance Centers, the Department 
                of Commerce, small business development centers, and 
                other relevant Federal agencies.'';
            (5) in subsection (d)--
                    (A) by inserting ``Export Financing Programs.--'' 
                after ``(d)'';
                    (B) by redesignating paragraphs (1) through (5) as 
                clauses (i) through (v), respectively, and adjusting 
                the margins accordingly;
                    (C) by striking ``The Office shall work in 
                cooperation'' and inserting the following:
            ``(1) In general.--The Office shall work in cooperation''; 
        and
                    (D) by striking ``To accomplish this goal, the 
                Office shall work'' and inserting the following:
            ``(2) Trade financial specialist.--To accomplish the goal 
        established under paragraph (1), the Office shall--
                    ``(A) designate at least 1 individual within the 
                Administration as a trade financial specialist to 
                oversee international loan programs and assist 
                Administration employees with trade finance issues; and
                    ``(B) work'';
            (6) in subsection (e), by inserting ``Trade Remedies.--'' 
        after ``(e)'';
            (7) by amending subsection (f) to read as follows:
    ``(f) Reporting Requirement.--The Office shall submit an annual 
report to the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives that contains--
            ``(1) a description of the progress of the Office in 
        implementing the requirements of this section;
            ``(2) the destinations of travel by Office staff and 
        benefits to the Administration and to small business concerns 
        therefrom; and
            ``(3) a description of the participation by the Office in 
        trade negotiations.'';
            (8) in subsection (g), by inserting ``Studies.--'' after 
        ``(g)''; and
            (9) by adding at the end the following:
    ``(i) Export Assistance Centers.--
            ``(1) In general.--During the period beginning on October 
        1, 2006, and ending on September 30, 2009, the Administrator 
        shall ensure that the number of full-time equivalent employees 
        of the Office assigned to the one-stop shops referred to in 
        section 2301(b) of the Omnibus Trade and Competitiveness Act of 
        1988 (15 U.S.C. 4721 (b)) is not less than the number of such 
        employees so assigned on January 1, 2003.
            ``(2) Priority of placement.--Priority shall be given, to 
        the maximum extent practicable, to placing employees of the 
        Administration at any Export Assistance Center that--
                    ``(A) had an Administration employee assigned to 
                such Center before January 2003; and
                    ``(B) has not had an Administration employee 
                assigned to such Center during the period beginning 
                January 2003, and ending on the date of enactment of 
                this subsection, either through retirement or 
                reassignment.
            ``(3) Needs of exporters.--The Administrator shall, to the 
        maximum extent practicable, strategically assign Administration 
        employees to Export Assistance Centers, based on the needs of 
        exporters.
            ``(4) Goals.--The Office shall work with the Department of 
        Commerce and the Export-Import Bank to establish shared annual 
        goals for the Export Centers.
            ``(5) Oversight.--The Office shall designate an individual 
        within the Administration to oversee all activities conducted 
        by Administration employees assigned to Export Centers.''.

SEC. 903. INTERNATIONAL TRADE LOANS.

    (a) In General.--Section 7(a)(3)(B) of the Small Business Act (15 
U.S.C. 636(a)(3)(B)) is amended by striking ``$1,750,000, of which not 
more than $1,250,000'' and inserting ``$2,750,000 (or if the gross loan 
amount would exceed $3,670,000), of which not more than $2,000,000''.
    (b) Working Capital.--Section 7(a)(16)(A) of the Small Business Act 
(15 U.S.C. 636(a)(16)(A)) is amended--
            (1) in the matter preceding clause (i), by striking ``in--
        '' and inserting ``--'';
            (2) in clause (i)--
                    (A) by inserting ``in'' after ``(i)''; and
                    (B) by striking ``or'' at the end;
            (3) in clause (ii)--
                    (A) by inserting ``in'' after ``(ii)''; and
                    (B) by striking the period and inserting ``; or''; 
                and
            (4) by adding at the end the following:
                            ``(iii) by providing working capital.''.
    (c) Collateral.--Section 7(a)(16)(B) of the Small Business Act (15 
U.S.C. 636(a)(16)(B)) is amended--
            (1) by striking ``Each loan'' and inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), each loan''; and
            (2) by adding at the end the following:
                            ``(ii) Exception.--A loan under this 
                        paragraph may be secured by a second lien 
                        position on the property or equipment financed 
                        by the loan or on other assets of the small 
                        business concern, if the Administrator 
                        determines such lien provides adequate 
                        assurance of the payment of such loan.''.
    (d) Refinancing.--Section 7(a)(16)(A)(ii) of the Small Business Act 
(15 U.S.C. 636(a)(16)(A)(ii)), as amended by this section, is amended 
by inserting ``, including any debt that qualifies for refinancing 
under any other provision of this subsection'' before the semicolon.

                       TITLE X--CONTRACT BUNDLING

SEC. 1001. PRESIDENTIAL POLICY.

    Section 3(o) of the Small Business Act (15 U.S.C. 632(o)) is 
amended--
            (1) by striking paragraphs (2) and (3); and
            (2) by inserting after paragraph (1) the following:
    ``(2) Policy.--It is the policy of Congress that each Federal 
agency shall endeavor to promote competition and small business 
procurement opportunities by unbundling Government contracts in 
accordance with the Presidential policy on contract bundling of March 
19, 2002.
    ``(3) Bundling of Contract Requirements.--In this Act, the term 
`bundling of contract requirements' means a use of solicitation for a 
single contract or a multiple award contract to satisfy 2 or more 
requirements of any Federal agency for goods or services that restricts 
competition or limits the number of suppliers by being likely 
unsuitable for award to a small business concern due to--
            ``(A) the diversity, size, or specialized nature of the 
        elements of the performance specified;
            ``(B) the aggregate dollar value of the anticipated award;
            ``(C) the geographical dispersion of the contract 
        performance sites;
            ``(D) unduly restrictive contract requirements or any other 
        similar procurement strategy or factor that restricts the 
        ability of a responsible small business concern to compete or 
        otherwise participate as a prime contractor in the procurement; 
        or
            ``(E) any combination of the factors described in (A) 
        through (D).''.
            ``(4) Presumed bundlings.--The Administrator and each 
        Federal agency shall, for all purposes under this Act, 
        presumptively treat as bundled any contract that--
                    ``(A) is valued at more than 3 times the 
                substantial bundling threshold for such agency; and
                    ``(B) is not set aside or reserved for award, in 
                whole or in part, to a small business concern or to a 
                team of small business concerns.''.

SEC. 1002. LEADERSHIP AND OVERSIGHT.

    (a) In General.--Section 15 of the Small Business Act (15 U.S.C. 
644) is amended by adding at the end the following:
    ``(q) Bundling Accountability Measures.--
            ``(1) Governmentwide accountability on bundling.--
                    ``(A) Reinstatement of reporting requirements.--In 
                addition to submitting such annual reports on all 
                incidents of bundling to the Administrator as may be 
                required under Federal law, the head of each Federal 
                agency shall submit an annual report on all incidents 
                of bundling to the Administrator for Federal 
                Procurement Policy.
                    ``(B) Report to congress.--The Administrator shall 
                promptly review and annually report to Congress 
                information on any discrepancies between the reports on 
                bundled contracts from Federal agencies to the 
                Administration, the Office of Federal Procurement 
                Policy, and the Federal procurement data system 
                described in subsection (c)(5).
            ``(2) Teaming requirements.--Each Federal agency shall 
        include in each solicitation for any contract award above the 
        substantial bundling threshold of such agency a provision 
        soliciting small business teams and joint ventures.
            ``(3) Implementation of comptroller general's 
        recommendations.--Not later than 270 days after the date of 
        enactment of this subsection, the Administrator, with the 
        concurrence of the Administrator for Federal Procurement 
        Policy, shall ensure that, in response to the recommendations 
        of the Comptroller General of the United States contained in 
        Report No. GAO-04-454, titled `Contract Management: Impact of 
        Strategy to Mitigate Effects of Contract Bundling Is 
        Uncertain'--
                    ``(A) modifications are made to the Federal 
                procurement data system described in subsection (c)(5) 
                to capture information concerning the impact of 
                bundling on small business concerns;
                    ``(B) the Administrator receives from each Federal 
                agency an annual report containing information 
                concerning--
                            ``(i) the number and dollar value of 
                        bundled contract actions and contracts;
                            ``(ii) benefit analyses (including the 
                        total dollars saved) to justify why contracts 
                        are bundled;
                            ``(iii) the number of small business 
                        concerns losing Federal contracts because of 
                        bundling;
                            ``(iv) how contractors awarded bundled 
                        contracts complied with the agencies 
                        subcontracting plans; and
                            ``(v) how mitigating actions, such as 
                        teaming arrangements, provided increased 
                        contracting opportunities to small business 
                        concerns.
            ``(4) Governmentwide review of bundling interpretations.--
                    ``(A) In general.--The Administrator, with the 
                concurrence of the Chief Counsel for Advocacy and the 
                Inspector General, shall conduct a governmentwide 
                review of the Federal agencies legal interpretations of 
                antibundling statutory and regulatory requirements.
                    ``(B) Report.--Not later than 1 year after the date 
                of enactment of this subsection, the Administrator 
                shall submit to Congress a report containing the 
                findings of the review conducted under subparagraph 
                (A).
            ``(5) Agency policies on reduction of contract bundling.--
        Not later than 180 days after the date of enactment of this 
        subsection, the head of each Federal agency shall, with 
        concurrence of the Administrator, issue a policy on the 
        reduction of contract bundling.
            ``(6) Best practices on contract bundling reduction and 
        mitigation.--Not later than 60 days after the date of the 
        enactment of this subsection, the Administrator shall publish a 
        guide on best practices to reduce contract bundling, as 
        directed by the Strategy and Report on Contract Bundling issued 
        by the Office of Management and Budget on October 29, 2002, and 
        disseminate the guide through the President's Management 
        Council.
            ``(7) Small business performance of agency leadership.--Not 
        later than 270 days after the date of the enactment of this 
        subsection, the Administrator, together with the Administrator 
        for Federal Procurement Policy and the head of any other 
        appropriate Federal agency, shall jointly establish a policy on 
        rewarding and sanctioning performance of Federal managers with 
        regard to compliance with this Act and the President's 
        Initiative Against Contract Bundling.
            ``(8) Contract bundling oversight.--
                    ``(A) Policy.--It is the policy of Congress that 
                the Administrator shall take appropriate actions to 
                remedy contract bundling oversight problems identified 
                by the Inspector General of the Administration in 
                Report No. 5-14, titled `Audit of the Contract Bundling 
                Program'.
                    ``(B) Corrective action.--
                            ``(i) Assignment of procurement center 
                        representatives.--
                                    ``(I) In general.--The 
                                Administrator shall assign not fewer 
                                than 1 procurement center 
                                representative to each major 
                                procurement center, as designated by 
                                the Administrator under section 8(l)(6) 
                                and ensure that, in any case, each 
                                State has not fewer than 1 resident 
                                procurement center representative.
                                    ``(II) Reporting.--The 
                                Administrator shall annually submit to 
                                Congress a report--
                                            ``(aa) containing a list of 
                                        designations of major 
                                        procurement centers in effect 
                                        during the relevant fiscal 
                                        year;
                                            ``(bb) detailing the 
                                        criteria for designations;
                                            ``(cc) containing a list of 
                                        all procurement activities 
                                        under review by a procurement 
                                        center representative or 
                                        breakout procurement center 
                                        representative during the 
                                        relevant fiscal year; and
                                            ``(dd) including a trend 
                                        analysis concerning the impact 
                                        of reviews and placements of 
                                        procurement center 
                                        representatives and breakout 
                                        procurement center 
                                        representatives.
                            ``(ii) Timely review of bundled 
                        contracts.--Not later than 30 days after 
                        receiving a submission from a Federal agency, 
                        the Administrator shall review any potential 
                        bundled contract submitted to the Administrator 
                        for review by any Federal agency.
            ``(9) Contract bundling mitigation through 
        subcontracting.--A commercial market representative may not be 
        assigned by the Administrator to provide services for more than 
        2 States.''.
    (b) Technical Correction.--Section 15(g) of the Small Business Act 
(15 U.S.C. 644(g)) is amended by striking ``Administrator of the Office 
of Federal Procurement Policy'' each place such term appears and 
inserting ``Administrator for Federal Procurement Policy''.
    (c) Procurement Center Representatives.--Section 15(l) of the Small 
Business Act (15 U.S.C. 644(l)) is amended--
            (1) by striking paragraph (1) and inserting the following:
    ``(1)(A) A procurement center representative shall carry out the 
activities described in paragraph (2), and shall be an advocate for--
            ``(i) the maximum practicable utilization of small business 
        concerns, whenever appropriate; and
            ``(ii) the use of full and open competition, whenever 
        appropriate, for the procurement of supplies and services by 
        the procurement center.
    ``(B) A procurement center representative is authorized to assist 
contracting officers in the performance of market research in order to 
locate small business concerns, small business concerns owned and 
controlled by socially and economically disadvantaged individuals, 
small business concerns owned and controlled by women, small business 
concerns owned and controlled by service-disabled veterans, small 
business concerns owned and controlled by veterans, and HUBZone small 
business concerns capable of satisfying agency needs.
    ``(C) Any procurement center representative assigned under this 
paragraph shall be in addition to the representative referred to in 
subsection (k).'';
    (2) in paragraph (2)--
            (A) by striking ``breakout'' each place that term appears;
            (B) in subparagraph (F), by striking ``and'' at the end;
            (C) in subparagraph (G), by striking the period at the end 
        and inserting a semicolon; and
            (D) by adding at the end the following:
            ``(H)(i) identify and review solicitations that involve 
        contract consolidations for potential bundling of contract 
        requirements; and
            ``(ii) recommend small business concern participation as 
        contractors, including small business concern teams, whenever 
        appropriate, prior to the issuance of a solicitation described 
        in clause (i);
            ``(I) manage the activities of the breakout procurement 
        center representative, commercial marketing representative, and 
        technical assistant; and
            ``(J) submit an annual report to the Administrator 
        containing--
                    ``(i) the number of proposed solicitations 
                reviewed;
                    ``(ii) the contract recommendations made on behalf 
                of small business concerns;
                    ``(iii) the number and total amount of contracts 
                broken out from bundled or consolidated contracts for 
                full and open competition or small business concern 
                set-aside; and
                    ``(iv) the number and total amount of contract 
                dollars awarded to small business concerns as a result 
                of actions taken by the procurement center office.'';
            (3) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively;
            (4) by striking paragraph (3) and inserting the following:
    ``(3)(A) The Administrator may assign a breakout procurement center 
representative, which shall be in addition to any representative 
assigned under paragraph (1).
    ``(B) A breakout procurement center representative--
            ``(i) shall be an advocate for the breakout of items for 
        procurement through full and open competition or small business 
        concern set-aside, whenever appropriate, from new, existing, 
        bundled, or consolidated contracts; and
            ``(ii) is authorized--
                    ``(I) to recommend small business concern 
                participation in existing contracts that were 
                previously not reviewed for small business concern 
                participation;
                    ``(II) to perform the duties described in paragraph 
                (2), as necessary to perform the due diligence required 
                for a breakout recommendation; and
                    ``(III) to appeal the failure to act favorably on 
                any recommendation made under subclause (I).
            ``(C) Any appeal under subparagraph (B)(ii)(III) shall be 
        filed and processed in the same manner and subject to the same 
        conditions and limitations as an appeal filed by the 
        Administrator under subsection (a).
    ``(4)(A) The Administrator may assign a commercial marketing 
representative to identify and market small business concerns to large 
prime contractors and assist small business concerns in identifying and 
obtaining subcontracts.
    ``(B) A commercial marketing representative assigned under this 
paragraph shall--
            ``(i) conduct compliance reviews of prime contractors;
            ``(ii) counsel small business concerns on how to obtain 
        subcontracts;
            ``(iii) conduct matchmaking activities to facilitate 
        subcontracting to small business concerns;
            ``(iv) work in coordination with local small business 
        development centers, technical assistance centers, and other 
        regional economic development entities to identify small 
        business concerns capable of competing for Federal contracts; 
        and
            ``(v) provide orientation and training on the 
        subcontracting assistance program under section 8(d)(4)(E) for 
        both large and small business concerns.
    ``(C) Any commercial marketing representative assigned under this 
paragraph shall be in addition to any procurement center representative 
assigned under paragraph (1) or (3).'';
            (5) in paragraph (5), as so designated by this section--
                    (A) in the second sentence, by inserting ``the 
                procurement center representative and'' before ``the 
                breakout procurement''; and
                    (B) in the third sentence, by striking ``(6)'';
            (6) in paragraph (6), as so designated by this section--
                    (A) in subparagraph (A), by striking ``The breakout 
                procurement center representative'' and inserting the 
                following: ``The procurement center representative, 
                breakout procurement center representative, commercial 
                marketing representative,'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (7) in paragraph (7), as so designated by this section, by 
        striking ``other than commercial items'' and all that follows 
        through the end of the paragraph and inserting the following: 
        ``commercial items for authorized resale, or other than 
        commercial items, and which has the potential to incur 
        significant savings or create significant procurement 
        opportunities for small business concerns as the result of the 
        placement of a breakout procurement center representative.''; 
        and
            (8) in paragraph (8), as so designated by this section--
                    (A) by striking ``breakout'' each place the term 
                appears; and
                    (B) by adding at the end the following:
    ``(C) The procurement center representative shall conduct training 
sessions to inform procurement staff at Federal agencies about the 
reporting requirements for bundled contracts and potentially bundled 
contracts, and how to work effectively with the procurement center 
representative assigned to such agencies to locate capable small 
business concerns to meet the needs of the agencies.''.

SEC. 1003. REMOVAL OF IMPEDIMENTS TO CONTRACT BUNDLING DATABASE 
              IMPLEMENTATION.

    Section 15(p)(5)(B) of the Small Business Act (15 U.S.C. 
644(p)(5)(B) is amended by striking ``procurement information'' and all 
that follows through the end of the subparagraph and inserting the 
following: ``any relevant procurement information as may be required to 
implement this section, and shall perform, at the request of the 
Administrator, any other action necessary to enable completion of the 
contract bundling database authorized by this section by not later than 
270 days after the date of enactment of the Small Business 
Reauthorization and Improvements Act of 2006.''.

                   TITLE XI--SUBCONTRACTING INTEGRITY

SEC. 1101. GAO RECOMMENDATIONS ON SUBCONTRACTING MISREPRESENTATIONS.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
adding at the end the following:
    ``(o) Prevention of Misrepresentations in Subcontracting; 
Implementation of Comptroller General's Recommendations.--
            ``(1) Statement of policy.--It is the policy of Congress 
        that the recommendations of the Comptroller General of the 
        United States in Report No. 05-459, concerning oversight 
        improvements necessary to ensure maximum practicable 
        participation by small business concerns in subcontracting, 
        shall be implemented governmentwide, to the maximum extent 
        possible.
            ``(2) Contractor compliance.--Compliance of Federal prime 
        contractors with small business subcontracting plans shall be 
        evaluated as a percentage of obligated prime contract dollars, 
        as well as a percentage of subcontracts awarded.
            ``(3) Issuance of agency policies.--Not later than 180 days 
        after the date of enactment of this subsection, the head of 
        each Federal agency shall issue a policy on small business 
        subcontracting compliance, including assignment of compliance 
        responsibilities between contracting, small business, and 
        program offices and periodic oversight and review 
        activities.''.

SEC. 1102. SMALL BUSINESS SUBCONTRACTING BAIT-AND-SWITCH FRAUD.

    (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 ``; and''; and
            (3) by adding at the end, the following:
                    ``(G) 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 and submitting to the 
                contracting agency 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 (15 U.S.C. 645(f)) is amended by striking ``of this Act'' 
and inserting ``or the reporting requirements of section 8(d)(11)''.

SEC. 1103. EVALUATING SUBCONTRACTING PARTICIPATION.

    (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 (14); and
            (2) by inserting after paragraph (10) the following:
            ``(11) Certification.--A report submitted by the prime 
        contractor under paragraph (6)(E) to determine the attainment 
        of a subcontract utilization goal under any subcontracting plan 
        entered into with a Federal agency under this subsection shall 
        contain the name and signature of the president or chief 
        executive officer of the contractor, certifying that the 
        subcontracting data provided in the report are accurate and 
        complete.
            ``(12) Centralized database.--The results of an evaluation 
        under paragraph (10)(C) shall be included in a national 
        centralized governmentwide database.
            ``(13) 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 (11).''.

SEC. 1104. PILOT PROGRAM ON DIRECT PAYMENTS TO SUBCONTRACTORS.

    (a) In General.--Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)), as amended by this Act, is amended by adding at the end the 
following:
            ``(15) Timely payment to small business subcontractors.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                failure of a civilian agency prime contractor to make a 
                timely payment, as determined under 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 circumstances surrounding the failure to make the 
                timely payment described in subparagraph (A).
                    ``(C) Withholding of payments.--Not later than 30 
                days after the date on which a material breach is 
                determined by the contracting officer under 
                subparagraph (A), 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.''.
    (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, 2009.

SEC. 1105. PILOT PROGRAM.

    Section 8 of the Small Business Act (15 U.S.C. 637), as amended by 
this Act, is amended by adding at the end the following:
    ``(p) Subcontracting Incentives and Remedial Assistance.--
            ``(1) Pilot program on incentives and mentor-protege 
        remedial assistance.--
                    ``(A) In general.--Each Federal agency on the 
                President's Management Council, or any successor 
                thereof, is authorized to operate a pilot program to 
                provide contractual incentives to prime contractors 
                that exceed their small business subcontracting goals 
                and to direct prime contractors that fail to comply 
                with their small business subcontracting plans to fund 
                mentor-protege assistance for small business concerns 
                (in this subsection referred to as the `program').
                    ``(B) Termination.--The authority under this 
                paragraph shall terminate on September 30, 2009.
            ``(2) Assessment of mentor-protege assistance funding.--The 
        mentor-protege assistance funding assessed by an agency under 
        the terms of the program shall be determined in relation to the 
        dollar amount by which the prime contractor failed its small 
        business subcontracting goals.
            ``(3) Expenditure of mentor-protege assistance funding.--
        The prime contractor shall expend the mentor-protege assistance 
        funding assessed by the agency under the terms of the program 
        on mentor-protege assistance to small business concerns, as 
        provided by a mentor-protege agreement approved by the relevant 
        Federal agency.
            ``(4) Annual report required.--Each Federal agency 
        described in paragraph (1) shall submit an annual report to the 
        Committee on Small Business and Entrepreneurship of the Senate 
        and the Committee on Small Business of the House of 
        Representatives containing a detailed description of the pilot 
        program, as carried out by that agency, including the number of 
        participating companies, any incentives provided to prime 
        contractors, as appropriate, and the amounts and types of 
        mentor-protege assistance provided to small business 
        concerns.''.

       TITLE XII--SMALL BUSINESS PROCUREMENT PROGRAMS IMPROVEMENT

SEC. 1201. DEFINITIONS.

    In this title--
            (1) the term ``small business concern owned and controlled 
        by service-disabled veterans'' has the same meaning as in 
        section 3 of the Small Business Act (15 U.S.C. 632); and
            (2) the terms ``small business concern owned and controlled 
        by socially and economically disadvantaged individuals'' and 
        ``small business concern owned and controlled by women'' have 
        the same meanings as in section 8(d) of the Small Business Act 
        (15 U.S.C. 637(d)).

                      Subtitle A--HUBZone Program

SEC. 1211. HUBZONE REAUTHORIZATION.

    Section 31(d) of the Small Business Act (15 U.S.C. 657a(d)) is 
amended by striking ``each of fiscal years 2004 through 2006'' and 
inserting ``each of fiscal years 2006 through 2012''.

SEC. 1212. EQUITY FOR SUBURBAN HUBZONES.

    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:
                    ``(E) Qualified suburban area.--The term `qualified 
                suburban area' means any village, city, town, economic 
                development area governed by a public authority, 
                district, or other unit of general local government--
                            ``(i) located in a county that includes, or 
                        is located in, a metropolitan statistical area 
                        (as defined in section 143(k)(2)(B) of the 
                        Internal Revenue Code of 1986); and
                            ``(ii) that meets the income or 
                        unemployment qualifications under subparagraph 
                        (B)(ii).''.

   Subtitle B--Service-Disabled Veteran-Owned Small Business Program

SEC. 1221. CERTIFICATION.

    (a) Congressional Intent.--It is the intent of Congress that the 
Administrator should accept certifications by other Federal agencies 
and State and local governments and certifications from responsible 
national certifying entities, under such criteria as the Administrator 
may prescribe, by regulation or order, in certifying small business 
concerns owned and controlled by service-disabled veterans.
    (b) Regulations.--Before implementing subsection (a), the 
Administrator shall promulgate regulations or orders ensuring 
appropriate certification safeguards to be implemented by the 
Administration and the agencies and entities described in subsection 
(a).

SEC. 1222. TEMPORARY WAIVER.

    (a) In General.--Notwithstanding any other provision of law, 
section 36(a)(1) of the Small Business Act (15 U.S.C. 657f(a)(1)) does 
not apply to the award of a contract to a small business concern owned 
and controlled by service-disabled veterans during the period beginning 
on the date of enactment of this Act and ending on September 30, 2009, 
except for the requirement that the concern be determined to be a 
responsible contractor with respect to performance of such contract 
opportunity.
    (b) Report to Congress.--The Administrator shall submit to Congress 
an annual report concerning the impact of the temporary waiver 
authority under subsection (a) on contract awards for small businesses 
owned and controlled by service-disabled veterans.

SEC. 1223. TRANSITION PERIOD FOR SURVIVING SPOUSES OR PERMANENT CARE 
              GIVERS.

    Section 3(q)(2) of the Small Business Act (15 U.S.C. 632(q)(2)) is 
amended by striking subparagraph (B) and inserting the following:
                    ``(B) the management and daily business operations 
                of which are controlled--
                            ``(i) by 1 or more service-disabled 
                        veterans or, in the case of a veteran with 
                        permanent and severe disability, the spouse or 
                        permanent care giver of such veteran; or
                            ``(ii) for a period of not longer than 10 
                        years after the death of a service-disabled 
                        veteran, by a surviving spouse or permanent 
                        caregiver thereof.''.

SEC. 1224. CONTRACTING AUTHORITY.

    Section 36(a) of the Small Business Act (15 U.S.C. 657f(a)) is 
amended in the matter preceding paragraph (1), by striking ``may'' and 
inserting ``shall''.

             Subtitle C--Women-Owned Small Business Program

SEC. 1231. IMPLEMENTATION DEADLINE.

    Not later than 90 days after the date of enactment of this Act, the 
Administrator shall implement the procurement program for small 
business concerns owned and controlled by women under section 8(m) of 
the Small Business Act (15 U.S.C. 637(m)).

SEC. 1232. CERTIFICATION.

    (a) Congressional Intent.--It is the intent of Congress that the 
Administrator should accept certifications by other Federal agencies 
and State and local governments and certifications from responsible 
national certifying entities, under such criteria as the Administrator 
may prescribe, by regulation or order, in certifying small business 
concerns owned and controlled by women for purposes of the program 
under section 8(m) of the Small Business Act (15 U.S.C. 637(m)).
    (b) Regulations.--Prior to implementing subsection (a), the 
Administrator shall promulgate regulations ensuring appropriate 
certification safeguards to be implemented by the Administration and 
the agencies and entities described in subsection (a).

            Subtitle D--Small Disadvantaged Business Program

SEC. 1241. CERTIFICATION.

    (a) Congressional Intent.--It is the intent of Congress that the 
Administrator should accept certifications by other Federal agencies 
and State and local governments and certifications from responsible 
national certifying entities, under such criteria as the Administrator 
may prescribe, by regulation or order, in certifying small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals.
    (b) Regulations.--Prior to implementing subsection (a), the 
Administrator shall promulgate regulations or orders ensuring 
appropriate certification safeguards to be implemented by the 
Administration and the agencies and entities described in subsection 
(a).

SEC. 1242. NET WORTH THRESHOLD.

    Section 8(a)(6)(A) of the Small Business Act (15 U.S.C. 
637(a)(6)(A)) is amended--
            (1) by inserting ``(i)'' after ``(6)(A)'';
            (2) by striking ``In determining the degree of diminished 
        credit'' and inserting the following:
    ``(ii)(I) In determining the degree of diminished credit'';
            (3) by striking ``In determining the economic 
        disadvantage'' and inserting the following:
    ``(iii) In determining the economic disadvantage''; and
            (4) by inserting after clause (ii)(I), as so designated by 
        this section, the following:
    ``(II) The Administrator shall establish procedures that--
            ``(aa) account for inflationary adjustments to, and include 
        a reasonable assumption of, the average income and net worth of 
        market dominant competitors; and
            ``(bb) require an annual inflationary adjustment to the 
        average income and net worth requirements under this 
        subsection.''.

                    Subtitle E--BusinessLINC Program

SEC. 1251. BUSINESSLINC PROGRAM.

    Section 8(n) of the Small Business Act (15 U.S.C. 637(n)) is 
amended to read as follows:
    ``(n) Business Grants and Cooperative Agreements.--
            ``(1) In general.--In accordance with this subsection, the 
        Administrator shall make grants available to enter into 
        cooperative agreements with any coalition of private entities, 
        not-for-profit entities, public entities, or any combination of 
        private, not-for-profit, and public entities--
                    ``(A) to expand business-to-business relationships 
                between large and small business concerns; and
                    ``(B) to provide, directly or indirectly, with 
                online information and a database of companies that are 
                interested in mentor-protege programs or community-
                based, statewide, or local business development 
                programs.
            ``(2) Matching requirement.--The Administrator may make a 
        grant to a coalition under paragraph (1) only if the coalition 
        provides for activities described in paragraph (1)(A) or (1)(B) 
        an amount, either in-kind or in cash, equal to the grant 
        amount.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $3,000,000 for 
        each of fiscal years 2007 through 2009, to remain available 
        until expended.
            ``(4) Reports to congress.--
                    ``(A) In general.--Not later than April 30, 2007, 
                and annually thereafter, the Associate Administrator of 
                Business Development of the Administration shall 
                collect data on the BusinessLINC Program and submit to 
                the Committee on Small Business and Entrepreneurship of 
                the Senate and the Committee on Small Business of the 
                House of Representatives, a report on the effectiveness 
                of the BusinessLINC Program.
                    ``(B) Contents.--Each report submitted under 
                subparagraph (A) shall include, for the year covered by 
                the report--
                            ``(i) the number of programs administered 
                        in each State under the BusinessLINC Program;
                            ``(ii) the number of grant awards under 
                        each program described in clause (i) and the 
                        date of each such award;
                            ``(iii) the number of participating large 
                        businesses and participating small business 
                        concerns;
                            ``(iv) the number and dollar amount of the 
                        contracts in effect in each State as a result 
                        of the programs run by each grant recipient 
                        under the BusinessLINC Program; and
                            ``(v) the number of mentor-protege, teaming 
                        relationships, or partnerships created as a 
                        result of the BusinessLINC Program.
            ``(5) Definition.--In this subsection, the term 
        `BusinessLINC Program' means the grant program authorized under 
        paragraph (1).''.

                    TITLE XIII--ACQUISITION PROCESS

SEC. 1301. PROCUREMENT IMPROVEMENTS.

    Section 15 of the Small Business Act (15 U.S.C. 644), as amended by 
this Act, is amended by adding at the end the following:
    ``(r) Bundling Data Fields.--For each contract (including task or 
delivery orders against governmentwide or other multiple award 
contracts, indefinite quantity or indefinite delivery contracts, and 
blanket purchase agreements) that is bundled or consolidated, an agency 
shall report publicly, not later than 7 days after the date of the 
award, by means of the Federal governmentwide procurement data system 
described in subsection (c)(5)--
            ``(1) the number of contracts involving small business 
        concerns that were displaced by the bundled or consolidated 
        action;
            ``(2) the number of small business concerns that the 
        contracting officer identified as able to bid on all or part of 
        requirements; and
            ``(3) the projected cost savings anticipated as a result of 
        bundling or consolidating the requirements.
    ``(s) Governmentwide Small Business Training.--The Administrator, 
in conjunction with the head of any other appropriate Federal agency, 
shall coordinate the development of governmentwide training courses on 
small business contracting and subcontracting with small business 
concerns, with special focus on the role of the small business 
specialist as a vital part of the acquisition team.''.

SEC. 1302. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL BUSINESSES.

    Section 15 of the Small Business Act (15 U.S.C. 644), as amended by 
this Act, is amended by adding at the end the following:
    ``(t) Multiple Award Contracts.--Not later than 180 days after the 
date of enactment of this subsection, the head of each Federal agency, 
with the concurrence of the Administrator, shall, by regulation, 
establish criteria for such agency--
            ``(1) setting aside part or parts of a multiple award 
        contract for small business concerns, including the 
        subcategories of small business concerns identified in 
        subsection (g)(2);
            ``(2) setting aside multiple award contracts for small 
        business concerns, including the subcategories of small 
        business concerns identified in subsection (g)(2); and
            ``(3) reserving 1 or more contract awards for small 
        business concerns under full and open multiple award 
        procurements, including the subcategories of small business 
        concerns identified in subsection (g)(2).''.

SEC. 1303. GAO STUDY OF REPORTING SYSTEMS.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study of--
            (1) the accuracy and timeliness of data collected under the 
        Small Business Act (15 U.S.C. 631 et seq.) in the Pro-Net 
        database of the Administration, or any successor database, the 
        Federal procurement data system described in section 15(c)(5) 
        of the Small Business Act (15 U.S.C. 644(c)(5)), and the 
        Subcontracting Reporting System; and
            (2) the availability of small business information in these 
        computer-based systems to Congress, Federal agencies, and the 
        public.
    (b) Matters Covered.--The study conducted under subsection (a) 
shall include--
            (1) an assessment of the accuracy and timeliness of the 
        information provided by the data collection systems described 
        in subsection (a)(1) and recommendations as to how any 
        deficiencies in such systems can be eliminated;
            (2) a review of the system manuals for such systems and a 
        determination of the adequacy of such manuals in assisting 
        proper operation and administration of the systems;
            (3) a review of the user manuals for such systems and a 
        determination of the clarity and ease of use of such manuals in 
        assisting those reporting into such systems and those obtaining 
        information from such systems;
            (4) the adequacy of the training given to individuals 
        responsible for reporting into such systems and recommendations 
        for any necessary improvements;
            (5) an assessment of the adequacy of any safeguards in such 
        systems against the reporting of inaccurate and untimely data 
        and the need for any additional safeguards; and
            (6) the system architecture, Internet access, user-friendly 
        characteristics, flexibility to add new data fields, ability to 
        provide structured and unstructured reports, range of 
        information necessary to meet user needs, and adequacy of 
        system and user manuals and instructions of such systems.
    (c) Report.--Not later than November 30, 2007, the Comptroller 
General shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives a report containing the results of the 
study under this section.

SEC. 1304. MEETING SMALL BUSINESS GOALS.

    Section 15 of the Small Business Act (15 U.S.C. 644), as amended by 
this Act, is amended by adding at the end the following:
    ``(u) Meeting Small Business Goals.--Before setting aside a 
contract for small business concerns, Federal agency contracting 
officers shall consider setting aside the contract for small business 
concerns owned and controlled by service disabled veterans, qualified 
HUBZone small business concerns, small business concerns owned and 
controlled by socially and economically disadvantaged individuals, 
small business concerns owned and controlled by women, or any other 
subcategory of small business concerns for which goals may be 
established by law, regulation, or policy, in the order in which the 
goals for such subcategories of small business concerns under 
subsection (g)(2) were not met by the agency in the fiscal year before 
the fiscal year of such consideration, from the most deficient to the 
least deficient.''.

SEC. 1305. MICROPURCHASE GUIDELINES.

    Not later than 180 days after the date of enactment of this Act, 
the Director of the Office of Management and Budget shall issue 
guidelines regarding the analysis of purchase card expenditures to 
identify opportunities for achieving and accurately measuring fair 
participation of small business concerns in micropurchases, consistent 
with the national policy on small business participation in Federal 
procurements set forth in sections 2(a) and 15(g) of the Small Business 
Act (15 U.S.C. 631(a) and 644(g)), and dissemination of best practices 
for participation of small business concerns in micropurchases.

SEC. 1306. REPORTING ON OVERSEAS CONTRACTS.

    At the end of each fiscal year, the Administrator shall submit to 
Congress a report identifying what portion of contracts and 
subcontracts awarded for performance outside of the United States were 
awarded to small business concerns.

SEC. 1307. AGENCY ACCOUNTABILITY.

    (a) In General.--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) in the first sentence, 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 Congress in connection with the 
        budget process; and
            ``(iii) report, as part of its annual performance plan, 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 (ii)--
            ``(I) shall communicate to their subordinates the 
        importance of achieving small business goals; 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) 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) Annual Reports.--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.

          TITLE XIV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

SEC. 1401. POLICY AND PRESUMPTIONS.

    Section 3 of the Small Business Act (15 U.S.C. 632) is amended by 
adding at the end the following:
    ``(s) Presumption.--
            ``(1) In general.--In every contract, subcontract, 
        cooperative agreement, cooperative research and development 
        agreement, or grant which is set aside, reserved, or otherwise 
        classified as intended for award to small business concerns, 
        there shall be a presumption of loss to the United States based 
        on the total dollars expended on such contract, subcontract, 
        cooperative agreement, cooperative research and development 
        agreement, or grant whenever it is established that a business 
        concern other than a small business concern willfully sought 
        and received the award by misrepresentation.
            ``(2) Deemed certifications.--The following actions shall 
        be deemed affirmative, willful, and intentional certifications 
        of small business size and status:
                    ``(A) Submission of a bid or proposal for a Federal 
                grant, contract, subcontract, cooperative agreement, or 
                cooperative research and development agreement 
                reserved, set aside, or otherwise classified as 
                intended for award to small business concerns.
                    ``(B) Submission of a bid or proposal for a Federal 
                grant, contract, subcontract, cooperative agreement, or 
                cooperative research and development agreement which in 
                any way encourages a Federal agency to classify such 
                bid or proposal, if awarded, as an award to a small 
                business concern.
                    ``(C) Registration on any Federal electronic 
                database for the purpose of being considered for award 
                of a Federal grant, contract, subcontract, cooperative 
                agreement, or cooperative research agreement, as a 
                small business concern.
            ``(3) Paper-based certification by signature of responsible 
        official.--
                    ``(A) In general.--Each solicitation, bid, or 
                application for a Federal contract, subcontract, or 
                grant shall contain a certification concerning the 
                small business size and status of a business concern 
                seeking such Federal contract, subcontract, or grant.
                    ``(B) Content of certifications.--A certification 
                that a business concern qualifies as a small business 
                concern of the exact size and status claimed by such 
                business concern for purposes of bidding on a Federal 
                contract or subcontract, or applying for a Federal 
                grant, shall contain the signature of a director, 
                officer, or counsel on the same page on which the 
                certification is contained.
            ``(4) Regulations.--The Administrator shall promulgate 
        regulations to provide adequate protections to individuals and 
        business concerns from liability under this subsection in cases 
        of unintentional errors, technical malfunctions, and other 
        similar situations.''.

SEC. 1402. ANNUAL CERTIFICATION.

    Section 3 of the Small Business Act (15 U.S.C. 632), as amended by 
this Act, is amended by adding at the end the following:
    ``(t) Annual Certification.--
            ``(1) In general.--Each business certified as a small 
        business concern under this Act shall annually certify its 
        small business size and, if appropriate, its small business 
        status, by means of a confirming entry on the Pro-Net database 
        of the Administration, or any successor thereto.
            ``(2) Regulations.--Not later than 120 days after the date 
        of enactment of this subsection, the Administrator, in 
        consultation with the Inspector General and the Chief Counsel 
        for Advocacy of the Administration, shall promulgate 
        regulations to ensure that--
                    ``(A) no business concern continues to be certified 
                as a small business concern on the Pro-Net database of 
                the Administration, or any successor thereto, without 
                fulfilling the requirements for annual certification 
                under this subsection; and
                    ``(B) the requirements of this subsection are 
                implemented in a manner presenting the least possible 
                regulatory burden on small business concerns.
            ``(3) Determination of size status.--Small business size or 
        status for purposes of this Act shall be determined at the time 
        of the award of a Federal--
                    ``(A) contract, provided that, in the case of 
                interagency multiple award contracts, small business 
                size, or status shall be determined annually, except 
                for purposes of the award of each task or delivery 
                order set aside or reserved for small business 
                concerns;
                    ``(B) subcontract;
                    ``(C) grant;
                    ``(D) cooperative agreement; or
                    ``(E) cooperative research and development 
                agreement.''.

SEC. 1403. SBA SUSPENSIONS AND DEBARMENTS AUTHORITY.

    Section 16(d)(2)(C) of the Small Business Act (15 U.S.C. 
645(d)(2)(C)) is amended by inserting after ``(or any successor 
regulation)'' the following: ``or as specified in part 145 of title 13, 
Code of Federal Regulations (or any corresponding similar regulation or 
ruling)''.

SEC. 1404. MEANINGFUL PROTESTS OF SMALL BUSINESS SIZE AND STATUS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting after section 37, as added by this Act, the following:

``SEC. 38. SMALL BUSINESS SIZE AND STATUS PROTEST SYSTEM.

    ``(a) Definitions.--In this section:
            ``(1) Protest.--The term `protest' means a written 
        objection by an interested party to a violation of any small 
        business size or status requirement established under any 
        provision of law, including section 3, in connection with--
                    ``(A) a solicitation or other request by a Federal 
                agency for offers for a contract for the procurement of 
                property or services;
                    ``(B) the cancellation of such a solicitation or 
                other request;
                    ``(C) an award or proposed award of such a 
                contract; or
                    ``(D) a termination or cancellation of an award of 
                such a contract, if the written objection contains an 
                allegation that the termination or cancellation is 
                based in whole or in part on improprieties concerning 
                the award of the contract.
            ``(2) Interested party.--
                    ``(A) In general.--The term `interested party', 
                with respect to a contract or a solicitation or other 
                request for offers described in paragraph (1), means an 
                actual or prospective bidder or offeror whose direct 
                economic interest would be affected by the award of the 
                contract or by failure to award the contract.
                    ``(B) Inclusions.--The term `interested party' 
                includes the official responsible for submitting the 
                Federal agency tender in a public-private competition 
                conducted under Office of Management and Budget 
                Circular A-76 (or any successor thereto) regarding an 
                activity or function of a Federal agency performed by 
                more than 65 full-time equivalent employees of the 
                Federal agency.
            ``(3) Federal agency.--The term `Federal agency' has the 
        same meaning as in section 102 of title 40, United States Code.
    ``(b) Review of Protests; Effect on Contracts Pending Decision.--
            ``(1) In general.--Under procedures established under 
        subsection (d), the Administrator shall decide a protest 
        submitted to the Administrator by an interested party.
            ``(2) Receipts of protests.--
                    ``(A) In general.--Not later than 1 day after the 
                receipt of a protest, the Administrator shall notify 
                the Federal agency involved of the protest.
                    ``(B) Agencies.--Except as provided in subparagraph 
                (C), a Federal agency receiving a notice of a protested 
                procurement under subparagraph (A) shall submit to the 
                Administrator a complete report (including all relevant 
                documents) on the small business size or status aspects 
                of the protested procurement--
                            ``(i) not later than 30 days after the date 
                        of the receipt of that notice by the agency;
                            ``(ii) if the Administrator, upon a showing 
                        by the Federal agency, determines (and states 
                        the reasons in writing) that the specific 
                        circumstances of the protest require a longer 
                        period, within the longer period determined by 
                        the Administrator; or
                            ``(iii) in a case determined by the 
                        Administrator to be suitable for the express 
                        option under subsection (c)(1)(B), not later 
                        than 20 days after the date of the receipt of 
                        that determination by the agency.
                    ``(C) Exceptions.--A Federal agency need not submit 
                a report to the Administrator under subparagraph (B) if 
                the agency is notified by the Administrator before the 
                date on which such report is to be submitted that the 
                protest concerned has been dismissed under subsection 
                (c)(1)(D).
            ``(3) Award of contracts.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a contract may not be awarded in any 
                procurement after the Federal agency has received 
                notice of a protest with respect to such procurement 
                from the Administrator and while the protest is 
                pending.
                    ``(B) Exceptions.--The head of the procuring 
                activity responsible for award of a contract may 
                authorize the award of the contract (notwithstanding a 
                protest of which the Federal agency has notice under 
                this section)--
                            ``(i) upon a written finding that urgent 
                        and compelling circumstances which 
                        significantly affect interests of the United 
                        States will not permit waiting for the decision 
                        of the Administrator under this section; and
                            ``(ii) after the Administrator is advised 
                        of that finding.
                    ``(C) Urgent and compelling circumstances.--A 
                finding may not be made under subparagraph (B)(i), 
                unless the award of the contract is otherwise likely to 
                occur within 30 days after the making of such finding.
            ``(4) Performance.--
                    ``(A) In general.--A contractor awarded a Federal 
                agency contract may, during the period described in 
                subparagraph (D), begin performance of the contract and 
                engage in any related activities that result in 
                obligations being incurred by the United States under 
                the contract, unless the contracting officer 
                responsible for the award of the contract withholds 
                authorization to proceed with performance of the 
                contract.
                    ``(B) Authorization withheld.--The contracting 
                officer may withhold an authorization to proceed with 
                performance of the contract during the period described 
                in subparagraph (D) if the contracting officer 
                determines in writing that--
                            ``(i) a protest is likely to be filed with 
                        the Administrator alleging a violation of a 
                        small business size or status requirement; and
                            ``(ii) the immediate performance of the 
                        contract is not in the best interests of the 
                        United States.
                    ``(C) Notice of protest.--
                            ``(i) In general.--If the Federal agency 
                        awarding the contract receives notice of a 
                        protest in accordance with this subsection 
                        during the period described in subparagraph 
                        (D)--
                                    ``(I) the contracting officer may 
                                not authorize performance of the 
                                contract to begin while the protest is 
                                pending; or
                                    ``(II) if authorization for 
                                contract performance to proceed was not 
                                withheld in accordance with 
                                subparagraph (B) before receipt of the 
                                notice, the contracting officer shall 
                                immediately direct the contractor to 
                                cease performance under the contract 
                                and to suspend any related activities 
                                that may result in additional 
                                obligations being incurred by the 
                                United States under that contract.
                            ``(ii) Performance.--Performance and 
                        related activities suspended under clause 
                        (i)(II) by reason of a protest may not be 
                        resumed while the protest is pending.
                            ``(iii) Exceptions.--The head of the 
                        procuring activity may authorize the 
                        performance of the contract (notwithstanding a 
                        protest of which the Federal agency has notice 
                        under this section)--
                                    ``(I) upon a written finding that--
                                            ``(aa) performance of the 
                                        contract is in the best 
                                        interests of the United States; 
                                        or
                                            ``(bb) urgent and 
                                        compelling circumstances that 
                                        significantly affect interests 
                                        of the United States will not 
                                        permit waiting for the decision 
                                        of the Administrator concerning 
                                        the protest; and
                                    ``(II) after the Administrator is 
                                notified of that finding.
                    ``(D) Time period.--The period described in this 
                subparagraph, with respect to a contract, is the period 
                beginning on the date of the contract award and ending 
                on the later of--
                            ``(i) the date that is 10 days after the 
                        date of the contract award; or
                            ``(ii) the date that is 5 days after the 
                        debriefing date offered to an unsuccessful 
                        offeror for any debriefing that is requested 
                        and, when requested, is required.
            ``(5) Nondelegation.--The authority of the head of the 
        procuring activity to make findings and to authorize the award 
        and performance of contracts under paragraphs (3) and (4) may 
        not be delegated.
            ``(6) Provision of documents.--
                    ``(A) In general.--Within such deadlines as the 
                Administrator prescribes, and upon request, each 
                Federal agency shall provide to an interested party any 
                document relevant to a protested procurement action 
                (including the report required by paragraph (2)(B)) 
                that would not give that party a competitive advantage 
                and that the party is otherwise authorized by law to 
                receive.
                    ``(B) Protective orders.--
                            ``(i) In general.--The Administrator may 
                        issue protective orders which establish terms, 
                        conditions, and restrictions for the provision 
                        of any document to a party under subparagraph 
                        (A), that prohibit or restrict the disclosure 
                        by the party of information described in clause 
                        (ii) that is contained in such a document.
                            ``(ii) Types of information.--Information 
                        referred to in clause (i) is procurement 
                        sensitive information, trade secrets, or other 
                        proprietary or confidential research, 
                        development, or commercial information.
                            ``(iii) Information to the federal 
                        government.--A protective order under this 
                        subparagraph shall not be considered to 
                        authorize the withholding of any document or 
                        information from Congress or an executive 
                        agency.
            ``(7) Interested parties.--If an interested party files a 
        protest in connection with a public-private competition 
        described in subsection (a)(2)(B), a person representing a 
        majority of the employees of the Federal agency who are engaged 
        in the performance of the activity or function subject to the 
        public-private competition may intervene in protest.
    ``(c) Decisions on Protests.--
            ``(1) In general.--
                    ``(A) Inexpensive and expeditious resolution.--To 
                the maximum extent practicable, the Administrator shall 
                provide for the inexpensive and expeditious resolution 
                of protests under this section. Except as provided 
                under subparagraph (B), the Administrator shall issue a 
                final decision concerning a protest not later than 100 
                days after the date on which the protest is submitted 
                to the Administration.
                    ``(B) Express option.--The Administrator shall, by 
                regulation established under subsection (d), establish 
                an express option for deciding those protests which the 
                Administrator determines suitable for resolution, not 
                later than 65 days after the date on which the protest 
                is submitted.
                    ``(C) Amendments.--An amendment to a protest that 
                adds a new ground of protest, if timely made, should be 
                resolved, to the maximum extent practicable, within the 
                time limit established under subparagraph (A) for final 
                decision of the initial protest. If an amended protest 
                cannot be resolved within such time limit, the 
                Administrator may resolve the amended protest through 
                the express option under subparagraph (B).
                    ``(D) Frivolous protests.--The Administrator may 
                dismiss a protest that the Administrator determines is 
                frivolous or which, on its face, does not state a valid 
                basis for protest.
            ``(2) Compliance with law.--
                    ``(A) In general.--With respect to a solicitation 
                for a contract, or a proposed award or the award of a 
                contract, protested under this section, the 
                Administrator may determine whether the solicitation, 
                proposed award, or award complies with statutes and 
                regulations regarding small business size or status. If 
                the Administrator determines that the solicitation, 
                proposed award, or award does not comply with a statute 
                or regulation, the Administrator shall recommend that 
                the Federal agency--
                            ``(i) refrain from exercising any of its 
                        options under the contract;
                            ``(ii) recompete the contract immediately;
                            ``(iii) issue a new solicitation;
                            ``(iv) terminate the contract;
                            ``(v) award a contract consistent with the 
                        requirements of such statutes and regulations; 
                        or
                            ``(vi) implement such other recommendations 
                        as the Administrator determines to be necessary 
                        in order to promote compliance with procurement 
                        statutes and regulations.
                    ``(B) Best interests of united states.--If the head 
                of the procuring activity responsible for a contract 
                makes a finding described in subsection 
                (b)(4)(C)(iii)(I)(aa), the Administrator shall make 
                recommendations under this paragraph without regard to 
                any cost or disruption from terminating, recompeting, 
                or reawarding the contract.
                    ``(C) Implementation.--If the Federal agency fails 
                to implement fully the recommendations of the 
                Administrator under this paragraph with respect to a 
                solicitation for a contract or an award or proposed 
                award of a contract by the date that is 60 days after 
                the date on which the agency received the 
                recommendations, the head of the procuring activity 
                responsible for that contract shall report such failure 
                to the Administrator not later than 5 days after the 
                end of such 60-day period.
            ``(3) Payment of costs.--
                    ``(A) In general.--If the Administrator determines 
                that a solicitation for a contract or a proposed award 
                or the award of a contract does not comply with a 
                statute or regulation, the Administrator may recommend 
                that the Federal agency conducting the procurement pay 
                to an appropriate interested party the costs of--
                            ``(i) filing and pursuing the protest, 
                        including reasonable attorney's fees and 
                        consultant and expert witness fees; and
                            ``(ii) bid and proposal preparation.
                    ``(B) Costs not included.--No party (other than a 
                small business concern) may be paid, under a 
                recommendation made under the authority of subparagraph 
                (A)--
                            ``(i) costs for consultant and expert 
                        witness fees that exceed the highest rate of 
                        compensation for expert witnesses paid by the 
                        Federal Government; or
                            ``(ii) costs for attorney's fees that 
                        exceed $300 per hour, unless the agency 
                        determines, based on the recommendation of the 
                        Administrator on a case by case basis, that an 
                        increase in the cost of living or a special 
                        factor, such as the limited availability of 
                        qualified attorneys for the proceedings 
                        involved, justifies a higher fee.
                    ``(C) Recommendation to pay costs.--If the 
                Administrator recommends under subparagraph (A) that a 
                Federal agency pay costs to an interested party, the 
                Federal agency shall--
                            ``(i) pay the costs promptly; or
                            ``(ii) if the Federal agency does not make 
                        such payment, promptly report to the 
                        Administrator the reasons for the failure to 
                        follow the Administrator's recommendation.
                    ``(D) Agreement on amount.--If the Administrator 
                recommends under subparagraph (A) that a Federal agency 
                pay costs to an interested party, the Federal agency 
                and the interested party shall attempt to reach an 
                agreement on the amount of the costs to be paid. If the 
                Federal agency and the interested party are unable to 
                agree on the amount to be paid, the Administrator may, 
                upon the request of the interested party, recommend to 
                the Federal agency the amount of the costs that the 
                Federal agency should pay.
            ``(4) Decisions.--Each decision of the Administrator under 
        this section shall be signed by the Administrator or a designee 
        for that purpose. A copy of the decision shall be made 
        available to the interested parties, the head of the procuring 
        activity responsible for the solicitation, proposed award, or 
        award of the contract, and the senior procurement executive of 
        the Federal agency involved.
            ``(5) Reports.--
                    ``(A) Failure to implement recommendations.--
                            ``(i) In general.--The Administrator shall 
                        report promptly to the Committee on Small 
                        Business and Entrepreneurship of the Senate and 
                        to the Committee on Small Business of the House 
                        of Representatives any case in which a Federal 
                        agency fails to implement fully a 
                        recommendation of the Administrator under 
                        paragraph (2) or (3).
                            ``(ii) Contents.--Each report under clause 
                        (i) shall include--
                                    ``(I) a comprehensive review of the 
                                pertinent procurement, including the 
                                circumstances of the failure of the 
                                Federal agency to implement a 
                                recommendation of the Administrator; 
                                and
                                    ``(II) a recommendation regarding 
                                whether, in order to correct an 
                                inequity or to preserve the integrity 
                                of the procurement process, Congress 
                                should consider--
                                            ``(aa) private relief 
                                        legislation;
                                            ``(bb) legislative 
                                        rescission or cancellation of 
                                        funds;
                                            ``(cc) further 
                                        investigation by Congress; or
                                            ``(dd) other action.
                    ``(B) Annual reports.--Not later than January 31 of 
                each year, the Administrator shall transmit to Congress 
                a report containing a summary of each instance in which 
                a Federal agency did not fully implement a 
                recommendation of the Administrator under subsection 
                (b) or this subsection during the preceding year. The 
                report shall also describe each instance in which a 
                final decision in a protest was not rendered within 100 
                days after the date on which the protest was submitted 
                to the Administrator.
    ``(d) Regulations; Authority of Administrator to Verify 
Assertions.--
            ``(1) In general.--The Administrator shall establish such 
        procedures as may be necessary for the expeditious decision of 
        protests under this section, including procedures for 
        accelerated resolution of protests under the express option 
        authorized by subsection (c)(1)(B). Such procedures shall 
        provide that the protest process may not be delayed by the 
        failure of a party to make a filing within the time provided 
        for the filing.
            ``(2) Computation of time.--The procedures established 
        under paragraph (1) shall provide that, in the computation of 
        any period described in this section--
                    ``(A) the day of the act, event, or default from 
                which the designated period of time begins to run not 
                be included; and
                    ``(B) the last day after such act, event, or 
                default be included, unless--
                            ``(i) such last day is a Saturday, a 
                        Sunday, or a legal holiday; or
                            ``(ii) in the case of a filing of a paper 
                        at the Administration or another Federal 
                        agency, such last day is a day on which weather 
                        or other conditions cause the closing of the 
                        Administration or other Federal agency, in 
                        which event the next day that is not a 
                        Saturday, Sunday, or legal holiday shall be 
                        included.
            ``(3) Electronic filing.--The Administrator may prescribe 
        procedures for the electronic filing and dissemination of 
        documents and information required under this section. In 
        prescribing such procedures, the Administrator shall consider 
        the ability of all parties to achieve electronic access to such 
        documents and records.
    ``(e) Enforcement.--The Administrator may use any authority 
available under this Act or any other provision of law to verify 
assertions made by parties in protests under this section.
    ``(f) Regulations.--The Administrator may issue regulations 
regarding the use of the protest authority to consider small business 
size or status challenges under this section in matters involving any 
other program for small business concerns.''.

SEC. 1405. TRAINING FOR CONTRACTING AND ENFORCEMENT PERSONNEL.

    (a) In General.--Not later than 270 days after the date of 
enactment of this Act, the head of each appropriate Federal agency or 
entity shall, in consultation with the Administrator or the Inspector 
General of the Administration, as appropriate, develop courses 
concerning proper classification of business concerns and small 
business size and status for purposes of Federal contracts, 
subcontracts, grants, cooperative agreements, and cooperative research 
and development agreements.
    (b) Policy on Prosecutions of Small Business Size and Status 
Fraud.--Section 3 of the Small Business Act (15 U.S.C. 632), as amended 
by this Act, is amended by adding at the end the following:
    ``(u) Policy on Prosecutions of Small Business Size and Status 
Fraud.--Not later than 180 days after the date of enactment of this 
subsection, the head of each relevant Federal agency and the Inspector 
General of the Administration shall issue a governmentwide policy on 
prosecution of small business size and status fraud.''.

SEC. 1406. PROTESTS OF SOLE SOURCE AWARDS.

    Section 3 of the Small Business Act (15 U.S.C. 632), as amended by 
this Act, is amended by adding at the end the following:
    ``(v) Protests of Sole Source Awards.--Notwithstanding any other 
provision of law, whether a business concern that is an offeror on any 
sole source prime contract or subcontract awarded under this Act 
satisfies the size and status requirements under this Act may be 
protested by any interested party that is a small business concern.''.

SEC. 1407. SMALL BUSINESS SIZE AND STATUS FOR PURPOSE OF MULTIPLE AWARD 
              CONTRACTS.

    Section 3 of the Small Business Act (15 U.S.C. 632), as amended by 
this Act, is amended by adding at the end the following:
    ``(w) Small Business Size and Status for Purpose of Multiple Award 
Contracts.--
            ``(1) In general.--A business concern that enters a 
        multiple award contract of any kind with the Federal Government 
        shall in any year in which such a contract is in effect, submit 
        an annual statement at the end of its fiscal year recertifying 
        its small business size and status to the Federal agency which 
        awarded the contract.
            ``(2) Relation to other laws.--Compliance with paragraph 
        (1) shall not affect the obligation of a business concern to 
        comply with other provisions of law concerning small business 
        size or status.''.

SEC. 1408. SIZE STANDARDS DEVELOPMENT.

    (a) In General.--Section 3(a)(2) of the Small Business Act (15 
U.S.C. 632(a)(2)) is amended by adding at the end the following:
                    ``(D) Tiered size standards.--The Administrator may 
                establish 2 or more tiers within an overall small 
                business size standard cap for the purpose of 
                facilitating the growth and development of small 
                business concerns and facilitating peer-based 
                competition among small business concerns for Federal 
                contracts and subcontracts. In establishing tier-based 
                size standards under this subparagraph, the 
                Administrator shall take into account national and 
                international industry conditions, including the size 
                of industry leaders, the size of emerging small 
                business concerns and very small business concerns, and 
                the trends in the sizes of Federal contracts and 
                subcontracts. The Administrator shall establish dollar-
                based thresholds within each industrial category for 
                contracts and subcontracts suitable for reservation 
                solely to small business concerns within a lower tier 
                in that industrial category.''.
    (b) Reservation of Contracts.--Section 15 of the Small Business Act 
(15 U.S.C. 644), as amended by this Act, is amended by adding at the 
end the following:
    ``(v) Tiered Size Standards.--The head of procurement for each 
Federal agency shall attempt to reserve contracts valued below the 
thresholds established by the Administrator under section 3(a)(2)(D) to 
small business concerns in a lower tier, unless market research 
indicates that such reservation will not result in securing a 
competitive price to the Federal Government from 2 or more responsible 
contractors. Small business concerns in a lower tier may bid on 
contracts for their requisite tier, any higher tier, or contracts open 
to other than small business concerns.''.

SEC. 1409. FULL-TIME EMPLOYEE EQUIVALENTS.

    Section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2)), as 
amended by this Act, is amended by adding at the end the following:
                    ``(E) Full-time employee equivalents.--In computing 
                the number of employees for purposes of size 
                determinations under this Act, the Administrator shall 
                utilize the full-time equivalents method.''.

    TITLE XV--SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS 
                      TECHNOLOGY TRANSFER PROGRAMS

SEC. 1501. DEFINITIONS.

    In this title, the terms ``extramural budget'', ``Small Business 
Innovation Research Program'', ``SBIR'', ``Small Business Technology 
Transfer Program'', and ``STTR'' have the same meanings as in section 9 
of the Small Business Act (15 U.S.C. 638).

SEC. 1502. CONGRESSIONAL FINDINGS AND POLICY.

    (a) Findings.--Congress finds that--
            (1) Federal agency practices excluding small business 
        concerns from Federal research and development efforts have 
        wasted taxpayer funds and stifled national competitiveness;
            (2) according to studies conducted for the Office of 
        Advocacy of the Administration, small business concerns hold 41 
        percent of the Nation's patents, obtain 13 times more patents 
        per employee than large business concerns, and obtain patents 
        which are twice as technologically significant as large 
        business patents; and
            (3) according to the annual reports of the National Science 
        Foundation, small business concerns consistently receive less 
        than 5 percent of Federal extramural research and development 
        funding.
    (b) Policy.--It is the policy of Congress to promote effectiveness 
in Federal research and development efforts and remove barriers to 
participation of small business concerns as well as of partnerships 
between small business concerns and universities or other research 
institutions in Federal research and development programs by 
strengthening the Small Business Innovation Research Program and the 
Small Business Technology Transfer Program.

            Subtitle A--Small Business Innovation Leadership

SEC. 1511. STATUS OF THE SBA OFFICE OF TECHNOLOGY; NATIONAL ADVISORY 
              BOARD; TRANSFER PLAN.

    Section 9(b) of the Small Business Act (15 U.S.C. 638(b)) is 
amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(9) to maintain an Office of Technology to carry its 
        responsibilities under this section, headed by the Assistant 
        Administrator for Technology, who shall be appointed by the 
        President, in consultation with the Committee on Small Business 
        and Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives;
            ``(10) to submit, as a separate part of the President's 
        budget, a request for appropriations for staffing for the 
        Office of Technology and information regarding the performance 
        of this Office, taking into consideration the size of the 
        program and the statutory oversight responsibilities of the 
        Administration;
            ``(11) to appoint, in consultation with the Committee on 
        Small Business and Entrepreneurship of the Senate and the 
        Committee on Small Business of the House of Representatives, a 
        National Small Business Innovation and Technology Transfer 
        Advisory Board, consisting of not fewer than 9 members to 
        advise the Assistant Administrator for Technology on all 
        matters concerning small business innovation and technology 
        transfer;
            ``(12) submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives not later than 
        November 1 of each year a National Small Business Innovation 
        and Technology Transfer Plan for the appropriate fiscal year 
        containing a forecast of research and development topics as 
        well as commercialization opportunities in all participating 
        Federal agencies; and
            ``(13) to annually submit to the Committee on Small 
        Business and Entrepreneurship of the Senate and the Committee 
        on Small Business of the House of Representatives a compilation 
        of agency-specific and program-wide data concerning the numbers 
        of Phase I and Phase II awards made generally and under any 
        pilot program during the previous year.''.

       Subtitle B--Fair Access to Federal Innovations Investments

SEC. 1521. ACCURACY IN FUNDING BASE CALCULATIONS; COMPTROLLER GENERAL'S 
              AUDITS.

    Not later than 270 days after the date of enactment of this Act, 
and every 3 years thereafter the Comptroller General of the United 
States shall--
            (1) conduct a fiscal and management audit of the SBIR 
        program and the STTR program to determine whether Federal 
        departments and agencies are complying with the set-aside 
        requirements of this title and the amendments made by this 
        title; and
            (2) submit a report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives regarding the audit 
        conducted under paragraph (1).

SEC. 1522. SBIR CAP INCREASE.

    Section 9(f)(1) of the Small Business Act (15 U.S.C. 638(f)(1)) is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the end; 
        and
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) not less than--
                            ``(i) 3 percent in fiscal year 2007;
                            ``(ii) 3.5 percent in fiscal year 2008;
                            ``(iii) 4 percent in fiscal year 2009; and
                            ``(iv) 4.5 percent in fiscal year 2010; and
                    ``(D) not less than 5 percent in fiscal year 2011 
                and each fiscal year thereafter,''.

SEC. 1523. STTR CAP INCREASE.

    Section 9(n)(1)(B) of the Small Business Act (15 U.S.C. 
638(n)(1)(B)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking ``thereafter.'' and 
        inserting ``through fiscal year 2006; and''; and
            (3) by adding at the end the following:
                            ``(iii) 0.6 percent for fiscal year 2007 
                        and each fiscal year thereafter.''.

SEC. 1524. ADJUSTMENTS IN SBIR AND STTR AWARD LEVELS.

    (a) SBIR Adjustments.--Section 9(j)(2)(D) of the Small Business Act 
(15 U.S.C. 638(j)(2)(D)) is amended--
            (1) by striking ``$100,000'' and inserting ``$150,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$1,250,000''.
    (b) STTR Adjustments.--Section 9(p)(2)(B)(ix) of the Small Business 
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
            (1) by striking ``$100,000'' and inserting ``$150,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$1,250,000''.
    (c) Annual Adjustments.--Section 9 of the Small Business Act (15 
U.S.C. 638) is amended--
            (1) in subsection (j)(2)(D), by striking ``and an 
        adjustment of such amounts once every 5 years to reflect 
        economic adjustments and programmatic considerations'' and 
        inserting ``and a mandatory annual adjustment of such amounts 
        to reflect economic adjustments and programmatic 
        considerations'';
            (2) in subsection (p)(2)(B)(ix), by striking ``greater or 
        lesser amounts'' and inserting ``with a mandatory annual 
        adjustment of such amounts to reflect economic adjustments and 
        programmatic considerations, and greater or lesser amounts''.
    (d) Limitation on Certain Awards.--Section 9 of the Small Business 
Act (15 U.S.C. 638) is amended by adding at the end the following:
    ``(z) Limitation on Certain Awards.--No Federal agency shall issue 
an award under the SBIR program or the STTR program if the size of the 
award exceeds the award guidelines established under this section by 
more than 50 percent. Participating agencies shall maintain information 
on awards exceeding the guidelines, including award amounts and 
identities of recipients, and shall report such information annually to 
the Administration.
    ``(aa) Subsequent Phases.--
            ``(1) In general.--A small business concern which received 
        an award from a Federal agency under this section shall be 
        eligible to receive an award for a subsequent phase from 
        another Federal agency, if the head of each relevant Federal 
        agency makes a written determination that the topics of the 
        relevant awards are the same.
            ``(2) SBIR and sttr programs.--A small business concern 
        which received an award under this section under the SBIR 
        program or the STTR program may receive an award under this 
        section for a subsequent phase in either the SBIR program or 
        the STTR program.''.

SEC. 1525. MAJORITY-VENTURE INVESTMENTS IN SBIR FIRMS.

    (a) Authority and Determination.--Upon a written determination 
provided not later than 30 days in advance to the Administrator and to 
the Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives, the 
head of each participating Federal agency may direct not more than 25 
percent of the agency's SBIR funds allocated in accordance with the 
Small Business Act, as amended by this Act, in fiscal year 2007 and 
each fiscal year thereafter to small business concerns that are owned 
in majority part by venture capital companies and that satisfy the 
qualification requirements under subsection (b). The written 
determination shall demonstrate that the use of such authority will 
induce additional venture capital funding of small business 
innovations, substantially contribute to the mission of the funding 
agency, or otherwise fulfill the capital needs of small business 
concerns for additional financing.
    (b) Qualification Requirements.--No United States small business 
concern which satisfies applicable requirements established by the 
Administrator concerning small business affiliation shall be excluded 
from participation in the program authorized by subsection (a) on the 
ground that such small business concern is owned in majority part by 
more than 1 United States venture capital company, provided that no 
single venture capital company owns more than 49 percent of such small 
business concern.
    (c) Registration.--Any small business concern that is a venture 
capital portfolio company qualified for participation in the program 
authorized by subsection (a) shall register with the Administrator as a 
Venture Capital SBIR Investment Company. Any such company shall 
indicate such status in any SBIR proposal.
    (d) Definition of Venture Capital Company.--In this section, the 
term ``venture capital company'' means an entity described in clause 
(i), (v), or (vi) of section 121.103(b) of title 13, Code of Federal 
Regulations (or any corresponding similar regulation or ruling).

         Subtitle C--Acquisition of Small Business Innovations

SEC. 1531. NATIONAL SBIR AND STTR TECHNOLOGY INSERTION GOAL; REPORTING 
              REQUIREMENTS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(bb) National Small Business Technology Insertion Goal; Reporting 
Requirements.--
            ``(1) In general.--For fiscal year in 2007, and each fiscal 
        year thereafter there is established a governmentwide goal for 
        insertion of SBIR and STTR technologies through Phase III 
        awards of not less than 3 percent of total value of Federal 
        prime contracting dollars for research, development, testing, 
        and evaluation, to be met through either prime contracts or 
        subcontracts (in this subsection referred to as the `National 
        Small Business Technology Insertion goal').
            ``(2) National small business technology insertion goal.--
        The Administrator shall ensure that the National Small Business 
        Technology Insertion goal is negotiated and reported to the 
        public and Congress in accordance with the authorities 
        governing the negotiating and reporting of small business 
        procurement goals by the Administrator under this Act.
            ``(3) Reports.--Each report submitted under paragraph (2) 
        shall include--
                    ``(A) the name of the contracting agency;
                    ``(B) the identity of the agency or company making 
                the Phase III award;
                    ``(C) the identity of the company or individual 
                receiving the Phase III award, as well as the identity 
                of the agency or prime contractor making the Phase III 
                award; and
                    ``(D) the dollar amount of the Phase III award.''.

SEC. 1532. INTELLECTUAL PROPERTY PROTECTIONS FOR SMALL BUSINESS 
              INNOVATIONS.

    (a) SBIR and STTR Data Rights.--Section 9(e) of the Small Business 
Act (15 U.S.C. 638(e)) is amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(9) `data', in connection with rights in or rights to 
        data--
                    ``(A) includes rights in and rights to prototypes, 
                as consistent with paragraph (5)(C);
                    ``(B) shall be considered to be a trade secret for 
                purposes of any provision of Federal law protecting 
                trade secrets from unauthorized use, disclosure, or 
                reverse engineering;
                    ``(C) includes technical data that the SBIR or STTR 
                small business concern has developed at private 
                expense, if such data is used in the development, 
                testing, or evaluation of SBIR or STTR technology; and
                    ``(D) shall be subject to data rights protections 
                under this section and the SBIR and STTR Policy 
                Directives in connection with any contract or 
                subcontract developed with Federal funds or intended 
                for use by the Federal government, and any mentor-
                protege agreements.''.

SEC. 1533. SBIR AND STTR SPECIAL ACQUISITION PREFERENCE.

    (a) Codification of Regulatory Preference.--Section 9 of the Small 
Business Act (15 U.S.C. 638), as amended by this Act, is amended by 
adding at the end the following:
    ``(cc) Phase III Awards.--Congress intends that, to the greatest 
extent practicable, Federal agencies and Federal prime contractors 
issue Phase III awards, including sole source awards, to the SBIR and 
STTR award recipients that developed the technology.''.
    (b) Policies.--Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended--
            (1) in subsection (j)(2)(C)--
                    (A) by striking ``, to the extent practicable,''; 
                and
                    (B) by inserting before the semicolon at the end 
                ``, unless the agency establishes on the record that 
                such an award is not practicable''; and
            (2) in subsection (p)(2)(F)--
                    (A) by striking ``, to the extent practicable,''; 
                and
                    (B) by inserting before the period at the end ``, 
                unless the agency establishes on the record that such 
                an award is not practicable''.
    (c) Reduction of Waste and Duplication in Federal Technology 
Contracting.--Section 9 of the Small Business Act (15 U.S.C. 638), as 
amended by this Act, is amended by adding at the end the following:
    ``(dd) Duplication of Prior Awards.--A Federal agency may not 
solicit bids or proposals for award of contracts on any topic 
duplicating a SBIR or STTR award previously made by such agency, 
unless, not later than 30 days before the solicitation, the agency 
submits an advance notice of intent to issue such a solicitation to the 
Administrator. Such solicitations may be challenged by the 
Administrator to the head of the agency, or otherwise be challenged in 
accordance with law. To avoid duplication, before issuing a 
solicitation, the responsible Federal agency official shall review the 
Tech-Net database of the Administration (or any successor database) and 
document the results of such review in contracting files.''.

SEC. 1534. SBIR AND STTR MENTOR-PROTEGE PROGRAMS.

    (a) Authorization.--The head of each Federal agency may establish a 
mentor-protege program to provide development and commercialization 
assistance to small business concerns participating in the SBIR program 
and the STTR program.
    (b) Types of Assistance Authorized.--The following types of 
assistance are authorized for mentor-protege programs:
            (1) Assistance with general business development, business 
        management, commercialization marketing, or corporate 
        infrastructure.
            (2) Testing and evaluation assistance for insertion of SBIR 
        and STTR technologies into technical or weapons systems.
            (3) Commercialization through Federal subcontracts awarded 
        in accordance with the terms of the special acquisition 
        preference.
            (4) Payment of progress payments and advance payment for 
        the performance of subcontracts commercializing SBIR and STTR 
        technologies developed by the protege firm.
            (5) Loans to a protege firm towards development and 
        commercialization of SBIR or STTR technologies.
    (c) Program Terms.--The head of a Federal agency is authorized to 
approve mentor-protege agreements providing to the mentor firm 
incentives, including--
            (1) credit towards meeting the mentor's small business 
        subcontracting goals; and
            (2) contractual term extension incentives.
    (d) Approval.--
            (1) In general.--The Administrator shall approve a SBIR and 
        STTR mentor-protege program in each Federal agency that 
        establishes such a program.
            (2) Clarification of applicability.--It is the intent of 
        Congress that the prohibition on conditioning, negotiating, 
        transferring, or diminishing SBIR and STTR data rights in the 
        making or administration of phase III awards (including prime 
        contracts and subcontracts) that are federally funded or 
        intended for use by the Federal Government that is contained in 
        section 8 of the SBIR Policy Directive and in section 3 of the 
        STTR Policy Directive (as in effect on the date of enactment of 
        this Act, and any successor thereto) apply to mentor-protege 
        agreements established for the purpose of assisting SBIR and 
        STTR small business concerns.
            (3) Data rights protections.--Notwithstanding any other 
        provision of law, no mentor-protege agreement with an SBIR or 
        STTR small business concern may be approved by any Federal 
        agency, unless it contains phase III data rights protection 
        clauses prescribed by the SBIR and STTR Policy Directives 
        described in paragraph (2).
            (4) Approval of agreements.--The SBIR program manager and 
        the STTR program manager at a Federal agency shall each ensure 
        that Federal reimbursement funding for mentor-protege 
        assistance to SBIR and STTR small business concerns is directed 
        towards development, testing, evaluation, and commercialization 
        of SBIR and STTR technologies, respectively.
            (5) Reporting requirement.--Any mentor-protege agreement 
        established for the purpose of assisting an SBIR or STTR small 
        business concern shall require reporting of the dollar value of 
        phase III awards made as a result of the mentor-protege 
        assistance.

SEC. 1535. SUBCONTRACTING WITH FEDERAL LABORATORIES AND RESEARCH AND 
              DEVELOPMENT CENTERS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(ee) Subcontracting.--
            ``(1) Authorization.--The head of each participating 
        Federal agency is authorized to issue SBIR and STTR awards to 
        any eligible small business concern which intends to 
        subcontract portions of the work to Federal laboratories and 
        federally funded research and development centers, subject to 
        the limitations under this section.
            ``(2) Prohibition.--No Federal agency shall--
                    ``(A) condition SBIR or STTR awards upon 
                subcontracting any portion of the work to any Federal 
                agency or any federally funded laboratory or research 
                and development center;
                    ``(B) approve a subcontracting arrangement where 
                the small business concern performs a lesser portion of 
                the work than required by this section and by the SBIR 
                and STTR Policy Directives; or
                    ``(C) approve a subcontracting arrangement which 
                violates any provisions, including data rights 
                protections provisions, of this section or the SBIR and 
                the STTR Policy Directives.
            ``(3) Implementation.--Not later than 180 days after the 
        date of enactment of this subsection, the Administrator shall 
        modify the SBIR Policy Directive and the STTR Policy Directive 
        issued under this section to ensure that small business 
        concerns have the flexibility to use the resources of the 
        Federal laboratories and federally funded research and 
        development centers, but shall not be mandated to subcontract 
        with them as a condition of award.''.

SEC. 1536. INNOVATION COMMERCIALIZATION PILOT PROGRAMS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(ff) Innovation Commercialization Pilot Programs.--
            ``(1) In general.--Effective on and after the beginning of 
        fiscal year 2007, the head of any civilian Federal agency 
        participating in the SBIR program which has awarded over 
        $5,000,000,000 in procurement contracts during the previous 
        fiscal year is authorized to create and administer a 
        commercialization pilot program (in this section referred to as 
        a `pilot program') to accelerate the transition of 
        technologies, products, and services developed under the SBIR 
        program to Phase III, including the acquisition process.
            ``(2) Identification of research programs for accelerated 
        transition to acquisition process.--In carrying out a pilot 
        program, the head of the Federal agency concerned shall 
        identify research programs of the SBIR program that have the 
        potential for rapid transitioning to Phase III and into the 
        acquisition process.
            ``(3) Limitation.--No research program may be identified 
        under paragraph (2) unless the head of the Federal agency 
        concerned certifies in writing that the successful transition 
        of the program to Phase III and into the acquisition process is 
        expected to meet high priority mission requirements of such 
        agency.
            ``(4) Funding.--
                    ``(A) In general.--For payment of expenses incurred 
                to administer a pilot program, the head of the Federal 
                agency concerned is authorized to use not more than an 
                amount equal to 1 percent of the funds available to 
                such Federal agency under the SBIR program.
                    ``(B) Limitations.--Any funds used under 
                subparagraph (A)--
                            ``(i) shall not be subject to the 
                        limitations on the use of funds in subsection 
                        (f)(2); or
                            ``(ii) may not be used to make Phase III 
                        awards.
            ``(5) Evaluative report.--
                    ``(A) In general.--At the end of each fiscal year, 
                the head of the Federal agency concerned shall submit 
                to the Committee on Small Business and Entrepreneurship 
                of the Senate and the Committee on Small Business of 
                the House of Representatives a report regarding 
                activities under the Commercialization Pilot Program.
                    ``(B) Contents.--Each report under subparagraph (A) 
                shall include--
                            ``(i) an accounting of the funds used in a 
                        pilot program;
                            ``(ii) a detailed description of the pilot 
                        program of such Federal agency, including 
                        incentives and activities undertaken by 
                        acquisition program managers, program executive 
                        officers, managers or operators of laboratories 
                        or research and development centers, and prime 
                        contractors; and
                            ``(iii) a detailed compilation of results 
                        achieved by the pilot program of such Federal 
                        agency, including the number of small business 
                        concerns assisted, Phase III dollars awarded, 
                        and the number of projects commercialized.
            ``(6) Authorized incentives and activities.--In carrying 
        out a pilot program, the head of the Federal agency concerned 
        is authorized to--
                    ``(A) offer contractual term and payment incentives 
                to prime contractors for successful commercialization 
                of SBIR technologies; and
                    ``(B) facilitate business development and 
                management assistance to SBIR small business concerns, 
                conduct outreach to prime contractors, and provide such 
                other assistance as the head of such Federal agency may 
                determine necessary and proper.
            ``(7) Interagency commercialization.--The head of each 
        Federal agency authorized to carry out a pilot program under 
        this section is authorized to use such program to facilitate 
        commercialization of SBIR technologies developed through awards 
        from other Federal agencies.
            ``(8) Sunset.--The authority to establish a pilot program, 
        and any pilot program established, under this subsection shall 
        terminate at the end of fiscal year 2010.''.

SEC. 1537. ENFORCEMENT.

    (a) Notification.--The head of any Federal agency involved in a 
case or controversy before any Federal judicial or administrative 
tribunal concerning the SBIR program or the STTR program shall provide 
timely notice of such case or controversy to the Administrator.
    (b) Reporting.--Section 9(b)(7) of the Small Business Act (15 
U.S.C. 638(b)(7)) is amended by inserting before the semicolon at the 
end the following: ``, and a detailed description of appeals of Phase 
III awards and notices of noncompliance with the SBIR and the STTR 
Policy Directives filed by the Administrator with Federal agencies''.

   Subtitle D--Technical and Financial Assistance for Small Business 
                               Innovation

SEC. 1541. REAUTHORIZATION AND ENHANCEMENT OF STATE, LOCAL, AND RURAL 
              INNOVATION ASSISTANCE PROGRAMS.

    (a) Federal and State Program Extension.--Section 9(s) of the Small 
Business Act (15 U.S.C. 638(s)) is amended--
            (1) in paragraph (1), by striking ``1995'' and inserting 
        ``2012''; and
            (2) in paragraph (2), by striking ``$2,000,000'' and 
        inserting ``$5,000,000''.
    (b) Rural Outreach Program Extension.--Section 501(b)(2) of the 
Small Business Reauthorization Act of 1997 (15 U.S.C. 638 note; 111 
Stat. 2622) is amended by striking ``2005'' and inserting ``2012''.

SEC. 1542. CONTINUED EVALUATION BY THE NATIONAL ACADEMY OF SCIENCES.

    Section 108 of the Small Business Reauthorization Act of 2000 (114 
Stat. 2763A-671) is amended by adding at the end:
    ``(e) Extensions and Enhancements of Authority.--
            ``(1) In general.--The studies authorized under this 
        section are authorized through the end of fiscal year 2009, 
        subject to any further requirements set forth in this section.
            ``(2) Report.--
                    ``(A) In general.--The head of an agency described 
                in subsection (a) should ensure that any agreement 
                under that subsection includes that the National 
                Academy of Sciences should conduct a survey of State 
                and international innovation development policies, and 
                other studies and research, subject to the availability 
                of funds to carry out this section--
                            ``(i) addressing desirability and 
                        feasibility of establishing a public, federally 
                        backed secondary capital market mechanism to 
                        fund securities representing investments in 
                        highly promising small innovative companies; 
                        and
                            ``(ii) addressing barriers to greater 
                        commercialization of small business 
                        innovations.
                    ``(B) Submission.--The agreement described in 
                subparagraph (A) should require that, not later than 
                December 30, 2009, the National Academy of Sciences 
                should submit to Congress a report describing the 
                survey conducted under subparagraph (A).''.

SEC. 1543. PHASE II INNOVATION DEVELOPMENT CHALLENGE PILOT PROGRAM.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended by adding at the end the following:
    ``(gg) Pilot Program.--
            ``(1) Authorization.--The head of each participating 
        Federal agency may set aside not more than 10 percent of the 
        SBIR and STTR funds of such agency for further technology 
        development and commercialization of SBIR and STTR Phase II 
        technologies (in this section referred to as a `pilot 
        program'). Such authority shall be in addition to any other 
        similar program that may be operating or authorized to be 
        operated by a participating Federal agency.
            ``(2) Requirements.--
                    ``(A) In general.--A Federal agency may not 
                establish a pilot program unless such agency makes a 
                written application to the Administrator, not less than 
                90 days prior to the beginning of the fiscal year in 
                which such pilot program is to be established, based on 
                a compelling reason that additional investment in SBIR 
                or STTR technologies is required due to unusually high 
                regulatory, systems integration, or other costs related 
                to development or manufacturing of identifiable, highly 
                promising small business technologies or a class of 
                such technologies expected to substantially advance the 
                agency's mission.
                    ``(B) Determination.--The Administrator shall--
                            ``(i) make a determination regarding an 
                        application submitted under subparagraph (A) 
                        not later than 30 days before the beginning of 
                        the fiscal year for which such application is 
                        submitted;
                            ``(ii) publish such decision in the Federal 
                        Register; and
                            ``(iii) make a copy of such decision, and 
                        any related materials available to the 
                        Committee on Small Business and 
                        Entrepreneurship of the Senate and the 
                        Committee on Small Business of the House of 
                        Representatives.
                    ``(C) Maximum amount.--No award under a pilot 
                program may be made in excess of 2 times the dollar 
                amounts generally established for Phase II awards under 
                this section.
                    ``(D) Matching.--No award may be made under a pilot 
                program unless new private, Federal non-SBIR, or 
                Federal non-STTR funding which at least matches the 
                award from the Federal agency is dedicated towards SBIR 
                or STTR Phase II technology.
                    ``(E) Eligibility.--Awards under this pilot program 
                may be made to any applicant which is eligible to 
                receive a Phase III award related to such SBIR or STTR 
                Phase II technology.
                    ``(F) Registration.--Applicants receiving awards 
                under a pilot program shall register with the 
                Administrator in a publicly available registry.
                    ``(G) Termination.--The authority to establish a 
                pilot program under this section expires at the end of 
                fiscal year 2012.''.

SEC. 1544. ENCOURAGING INNOVATION IN ENERGY EFFICIENCY.

    (a) Federal Agency Energy-Related Priority.--In carrying out its 
duties under section 9 of the Small Business Act relating to SBIR and 
STTR solicitations by Federal agencies, the Administrator shall--
            (1) ensure that such agencies give high priority to small 
        business concerns that participate in or conduct energy 
        efficiency or renewable energy system research and development 
        projects; and
            (2) include in the annual report to Congress under section 
        9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)), a 
        determination of whether the priority described in paragraph 
        (1) is being carried out.
    (b) Consultation Required.--The Administrator shall consult with 
the heads of other Federal agencies and departments in determining 
whether priority has been given to small business concerns that 
participate in or conduct energy efficiency or renewable energy system 
research and development projects, as required by this section.
    (c) Guidelines.--The Administrator shall, as soon as is practicable 
after the date of enactment of this Act, issue guidelines and 
directives to assist Federal agencies in meeting the requirements of 
this section.
    (d) Definitions.--In this section--
            (1) the term ``biomass''--
                    (A) means any organic material that is available on 
                a renewable or recurring basis, including--
                            (i) agricultural crops;
                            (ii) trees grown for energy production;
                            (iii) wood waste and wood residues;
                            (iv) plants (including aquatic plants and 
                        grasses);
                            (v) residues;
                            (vi) fibers;
                            (vii) animal wastes and other waste 
                        materials; and
                            (viii) fats, oils, and greases (including 
                        recycled fats, oils, and greases); and
                    (B) does not include--
                            (i) paper that is commonly recycled; or
                            (ii) unsegregated solid waste;
            (2) the term ``energy efficiency project'' means the 
        installation or upgrading of equipment that results in a 
        significant reduction in energy usage; and
            (3) the term ``renewable energy system'' means a system of 
        energy derived from--
                    (A) a wind, solar, biomass, or geothermal source; 
                or
                    (B) hydrogen derived from biomass or water using an 
                energy source described in subparagraph (A).

SEC. 1545. SBIR-STEM WORKFORCE DEVELOPMENT GRANT PILOT PROGRAM.

    (a) Pilot Program Established.--From amounts made available to 
carry out this section, the Administrator shall establish a SBIR-STEM 
Workforce Development Grant Pilot Program to encourage the business 
community to provide workforce development opportunities for college 
students, in the fields of science, technology, engineering, and math 
(or ``STEM college students''), by providing an SBIR bonus grant.
    (b) Eligible Entities Defined.--In this section the term ``eligible 
entity'' means a current grantee under the SBIR Program, as defined in 
section 9(e) of the Small Business Act (15 U.S.C. 638(e)), that 
provides an internship program for STEM college students.
    (c) Awards.--An eligible entity shall receive a bonus grant equal 
to 10 percent of either a Phase I or Phase II grant, as applicable, 
with a total award maximum of not more than $10,000 per year.
    (d)  Evaluation.--Following the fifth year of funding under this 
section, the Administrator shall submit a report to Congress on the 
results of the SBIR-STEM Workforce Development Grant Pilot Program.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $1,000,000 for fiscal year 2007;
            (2) $1,000,000 for fiscal year 2008;
            (3) $1,000,000 for fiscal year 2009;
            (4) $1,000,000 for fiscal year 2010; and
            (5) $1,000,000 for fiscal year 2011.

                       Subtitle E--Implementation

SEC. 1551. CONFORMING AMENDMENTS TO THE SBIR AND THE STTR POLICY 
              DIRECTIVES.

    Not later than 180 days after the date of enactment of this Act, 
the Administrator shall promulgate amendments to the SBIR and the STTR 
Policy Directives to conform such directives to this title and the 
amendments made by this title.

     TITLE XVI--NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM

SEC. 1601. SHORT TITLE.

    This title may be cited as the ``Native American Small Business 
Development Act of 2006''.

SEC. 1602. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting after section 38, as added by this Act, the following:

``SEC. 39. 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);
            ``(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) representatives of tribal 
                        governments;
                            ``(iii) tribal colleges;
                            ``(iv) Alaska Native corporations; and
                            ``(v) 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 a 5-year project that offers 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 
        underserved 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 
                                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 2006 through 2010, 
to carry out the Native American Small Business Development Program, 
authorized under subsection (c).''.

SEC. 1603. PILOT PROGRAMS.

    (a) Definitions.--In this section:
            (1) Incorporation by reference.--The terms defined in 
        section 39(a) of the Small Business Act (as added by this 
        title) have the same meanings as in that section 39(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);
                            (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 later 
                than 60 days after the date of 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 an 
                        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, 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 later than 60 days 
                after the date of 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 2006 through 
        2009, 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 2006 through 
        2009, to carry out the American Indian Tribal Assistance Center 
        Grant Pilot Program, authorized under subsection (c).

       TITLE XVII--NATIONAL SMALL BUSINESS REGULATORY ASSISTANCE

SEC. 1701. SHORT TITLE.

    This title may be cited as the ``National Small Business Regulatory 
Assistance Act of 2006''.

SEC. 1702. PURPOSE.

    The purpose of this title is to establish a 4-year pilot program 
to--
            (1) provide confidential assistance to small business 
        concerns;
            (2) provide small business concerns with the information 
        necessary to improve their rate of compliance with Federal and 
        State regulations derived from Federal law;
            (3) create a partnership among Federal agencies to increase 
        outreach efforts to small business concerns with respect to 
        regulatory compliance;
            (4) provide a mechanism for unbiased feedback to Federal 
        agencies on the regulatory environment for small business 
        concerns; and
            (5) expand the services delivered by the small business 
        development centers under section 21(c)(3)(H) of the Small 
        Business Act to improve access to programs to assist small 
        business concerns with regulatory compliance.

SEC. 1703. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.

    (a) Definitions.--In this section:
            (1) Association.--The term ``association'' means the 
        association established pursuant to section 21(a)(3)(A) of the 
        Small Business Act (15 U.S.C. 648(a)(3)(A)) representing a 
        majority of small business development centers.
            (2) Participating small business development center.--The 
        term ``participating small business development center'' means 
        a small business development center participating in the pilot 
        program established under this title.
            (3) Regulatory compliance assistance.--The term 
        ``regulatory compliance assistance'' means assistance provided 
        by a small business development center to a small business 
        concern to assist and facilitate the concern in complying with 
        Federal and State regulatory requirements derived from Federal 
        law.
            (4) Small business development center.--The term ``small 
        business development center'' means a small business 
        development center described in section 21 of the Small 
        Business Act (15 U.S.C. 648).
            (5) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, American Samoa, and Guam.
    (b) Authority.--In accordance with this section, the Administrator 
shall establish a pilot program to provide regulatory compliance 
assistance to small business concerns through participating small 
business development centers.
    (c) Small Business Development Centers.--
            (1) In general.--In carrying out the pilot program 
        established under this section, the Administrator shall enter 
        into arrangements with participating small business development 
        centers under which such Centers shall--
                    (A) provide access to information and resources, 
                including current Federal and State nonpunitive 
                compliance and technical assistance programs similar to 
                those established under section 507 of the Clean Air 
                Act Amendments of 1990 (42 U.S.C. 7661f);
                    (B) conduct training and educational activities;
                    (C) offer confidential, free of charge, one-on-one, 
                in-depth counseling to the owners and operators of 
                small business concerns regarding compliance with 
                Federal and State regulations derived from Federal law, 
                provided that such counseling is not considered to be 
                the practice of law in a State in which a small 
                business development center is located or in which such 
                counseling is conducted;
                    (D) provide technical assistance;
                    (E) give referrals to experts and other providers 
                of compliance assistance who meet such standards for 
                educational, technical, and professional competency as 
                are established by the Administrator; and
                    (F) form partnerships with Federal compliance 
                programs.
            (2) Reports.--Each participating small business development 
        center shall transmit to the Administrator and the Chief 
        Counsel for Advocacy of the Small Business Administration, as 
        the Administrator may direct, a quarterly report that 
        includes--
                    (A) a summary of the regulatory compliance 
                assistance provided by the Center under the pilot 
                program;
                    (B) the number of small business concerns assisted 
                under the pilot program; and
                    (C) for every fourth report, any regulatory 
                compliance information based on Federal law that a 
                Federal or State agency has provided to the center 
                during the preceding year and requested that it be 
                disseminated to small business concerns.
    (d) Eligibility.--A small business development center shall be 
eligible to receive assistance under the pilot program established 
under this section only if such Center is certified under section 
21(k)(2) of the Small Business Act (15 U.S.C. 648(k)(2)).
    (e) Selection of Participating Small Business Development 
Centers.--
            (1) Groupings.--
                    (A) Consultation.--The Administrator shall select 
                the small business development center Programs of 2 
                States from each of the groups of States described in 
                subparagraph (B) to participate in the pilot program 
                established under this section.
                    (B) Groups.--The groups described in this 
                subparagraph as follows:
                            (i) Group 1.--Group 1 shall consist of 
                        Maine, Massachusetts, New Hampshire, 
                        Connecticut, Vermont, and Rhode Island.
                            (ii) Group 2.--Group 2 shall consist of New 
                        York, New Jersey, Puerto Rico, and the Virgin 
                        Islands.
                            (iii) Group 3.--Group 3 shall consist of 
                        Pennsylvania, Maryland, West Virginia, 
                        Virginia, the District of Columbia, and 
                        Delaware.
                            (iv) Group 4.--Group 4 shall consist of 
                        Georgia, Alabama, North Carolina, South 
                        Carolina, Mississippi, Florida, Kentucky, and 
                        Tennessee.
                            (v) Group 5.--Group 5 shall consist of 
                        Illinois, Ohio, Michigan, Indiana, Wisconsin, 
                        and Minnesota.
                            (vi) Group 6.--Group 6 shall consist of 
                        Texas, New Mexico, Arkansas, Oklahoma, and 
                        Louisiana.
                            (vii) Group 7.--Group 7 shall consist of 
                        Missouri, Iowa, Nebraska, and Kansas.
                            (viii) Group 8.--Group 8 shall consist of 
                        Colorado, Wyoming, North Dakota, South Dakota, 
                        Montana, and Utah.
                            (ix) Group 9.--Group 9 shall consist of 
                        California, Guam, American Samoa, Hawaii, 
                        Nevada, and Arizona.
                            (x) Group 10.--Group 10 shall consist of 
                        Washington, Alaska, Idaho, and Oregon.
            (2) Deadline for selection.--The Administrator shall make 
        selections under this subsection not later than 6 months after 
        the date of publication of final regulations under section 
        1704.
    (f) Matching Requirement.--Subparagraphs (A) and (B) of section 
21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) shall apply to 
assistance made available under the pilot program established under 
this section.
    (g) Grant Amounts.--Each State program selected to receive a grant 
under subsection (e) shall be eligible to receive a grant in an amount 
equal to--
            (1) not less than $150,000 per fiscal year; and
            (2) not more than $300,000 per fiscal year.
    (h) Evaluation and Report.--The Comptroller General of the United 
States shall--
            (1) not later than 30 months after the date of disbursement 
        of the first grant under the pilot program established under 
        this section, initiate an evaluation of the pilot program; and
            (2) not later than 6 months after the date of the 
        initiation of the evaluation under paragraph (1), transmit to 
        the Administrator, the Chief Counsel for Advocacy, the 
        Committee on Small Business and Entrepreneurship of the Senate, 
        and the Committee on Small Business of the House of 
        Representatives, a report containing--
                    (A) the results of the evaluation; and
                    (B) any recommendations as to whether the pilot 
                program, with or without modification, should be 
                extended to include the participation of all small 
                business development centers.
    (i) Posting of Information.--Not later than 90 days after the date 
of enactment of this Act, the Administrator shall post on the website 
of the Administration and publish in the Federal Register a guidance 
document describing the requirements of an application for assistance 
under this section.
    (j) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section--
                    (A) $5,000,000 for the first fiscal year beginning 
                after the date of enactment of this Act; and
                    (B) $5,000,000 for each of the 3 fiscal years 
                following the fiscal year described in subparagraph 
                (A).
            (2) Limitation on use of other funds.--The Administrator 
        may carry out the pilot program established under this section 
        only with amounts appropriated in advance specifically to carry 
        out this section.
    (k) Termination.--The Small Business Regulatory Assistance Pilot 
Program established under this section shall terminate 4 years after 
the date of disbursement of the first grant under the pilot program.

SEC. 1704. RULEMAKING.

    After providing notice and an opportunity for comment, and after 
consulting with the association (but not later than 180 days after the 
date of enactment of this Act), the Administrator shall promulgate 
final regulations to carry out this title, including regulations that 
establish--
            (1) priorities for the types of assistance to be provided 
        under the pilot program established under this title;
            (2) standards relating to educational, technical, and 
        support services to be provided by participating small business 
        development centers;
            (3) standards relating to any national service delivery and 
        support function to be provided by the association under the 
        pilot program;
            (4) standards relating to any work plan that the 
        Administrator may require a participating small business 
        development center to develop; and
            (5) standards relating to the educational, technical, and 
        professional competency of any expert or other assistance 
        provider to whom a small business concern may be referred for 
        compliance assistance under the pilot program.

            TITLE XVIII--INTERMEDIARY LENDING PILOT PROGRAM

SEC. 1801. SHORT TITLE.

    This title may be cited as the ``Small Business Intermediary 
Lending Pilot Program Act of 2006''.

SEC. 1802. 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 midsized 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 start-up 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), 
        nonprofit intermediary lenders, including community development 
        corporations, provide financial resources that 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 nonprofit intermediaries to address the 
        needs of small business concerns that are unable to access 
        capital through conventional sources.
            (5) More than 1,000 nonprofit 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. 1803. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

    (a) In General.--Section 7 of the Small Business Act (15 U.S.C. 
636) is amended by inserting after subsection (k) the following:
    ``(l) Small Business Intermediary Lending Program.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `intermediary' means a private, 
                nonprofit entity that seeks to borrow, or has borrowed, 
                funds from the Administration to provide midsize loans 
                to small business concerns under this subsection, 
                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
                            ``(iv) an agency of or nonprofit entity 
                        established by a Native American Tribal 
                        Government; and
                    ``(B) the term `midsize 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 subsection as the `Program'), under which the 
        Administration may provide direct loans to eligible 
        intermediaries, for the purpose of making fixed interest rate 
        midsize loans to startup, newly established, and growing small 
        business concerns.
            ``(3) Purposes.--The purposes of the 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 midsize loan program to be 
                administered by the Administration to provide 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 nonprofit 
                intermediaries--
                            ``(i) as a delivery system for a midsize 
                        loan program; and
                            ``(ii) in addressing the credit needs of 
                        small business concerns and leveraging other 
                        sources of credit; and
                    ``(E) to determine the advisability and feasibility 
                of implementing a midsize loan program nationwide.
            ``(4) Eligibility for participation.--An intermediary shall 
        be eligible to receive loans under the Program if the 
        intermediary has not less than 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 that 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 this subsection.
                    ``(B) Loan limits.--Notwithstanding subsection 
                (a)(3), no loan may be made to an intermediary under 
                this subsection if the total amount outstanding and 
                committed to the 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 under this subsection shall not exceed 75 
                percent of the total cost of the project funded by such 
                loan, 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 the Program during 
                the first 2 years of the loan.
            ``(6) Program funding for midsize 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 
                Intermediary Lending Pilot Program Act of 2006, 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 
                Intermediary Lending Pilot Program Act of 2006, and 
                annually thereafter, the Administration shall submit a 
                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 
                        midsize loans;
                            ``(ii) the amounts of each loan to an 
                        intermediary;
                            ``(iii) the numbers and amounts of midsize 
                        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 midsize 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 section 7(l) of the Small Business Act, as added by 
subsection (a).
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Administration such sums as may be necessary for each of 
        the fiscal years 2007 through 2009 to provide $20,000,000 in 
        loans under section 7(l) of the Small Business Act, as added by 
        subsection (a).
            (2) Availability.--Any amounts appropriated pursuant to 
        paragraph (1) shall remain available until expended.

                      TITLE XIX--OTHER PROVISIONS

SEC. 1901. COMPLIANCE ASSISTANCE.

    (a) In General.--Section 212(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (5 U.S.C. 601 note) is amended to read 
as follows:
    ``(a) Compliance Guide.--
            ``(1) In general.--For each rule or group of related rules 
        for which an agency is required to prepare a final regulatory 
        flexibility analysis under section 605(b) of title 5, United 
        States Code, the agency shall publish 1 or more guides to 
        assist small entities in complying with the rule, and shall 
        entitle such publications `small entity compliance guides'.
            ``(2) Publication of guides.--The publication of each guide 
        under this subsection shall include--
                    ``(A) the posting of the guide in an easily 
                identified location on the website of the agency; and
                    ``(B) distribution of the guide to known industry 
                contacts, such as small entities, associations, or 
                industry leaders affected by the rule.
            ``(3) Publication date.--An agency shall publish each guide 
        (including the posting and distribution of the guide as 
        described under paragraph (2))--
                    ``(A) on the same date as the date of publication 
                of the final rule (or as soon as possible after that 
                date); and
                    ``(B) not later than the date on which the 
                requirements of that rule become effective.
            ``(4) Compliance actions.--
                    ``(A) In general.--Each guide shall explain the 
                actions which a small entity is required to take to 
                comply with a rule.
                    ``(B) Explanation.--The explanation under 
                subparagraph (A)--
                            ``(i) shall include a description of 
                        actions needed to meet the requirements of a 
                        rule, to enable a small entity to know when 
                        such requirements are met; and
                            ``(ii) if determined appropriate by the 
                        agency, may include a description of possible 
                        procedures, such as conducting tests, that may 
                        assist a small entity in meeting such 
                        requirements.
                    ``(C) Procedures.--Procedures described under 
                subparagraph (B)(ii)--
                            ``(i) shall be suggestions to assist small 
                        entities; and
                            ``(ii) shall not be additional requirements 
                        relating to the rule.
            ``(5) Agency preparation of guides.--The agency shall, in 
        its sole discretion, taking into account the subject matter of 
        the rule and the language of relevant statutes, ensure that the 
        guide is written using sufficiently plain language likely to be 
        understood by affected small entities. Agencies may prepare 
        separate guides covering groups or classes of similarly 
        affected small entities and may cooperate with associations of 
        small entities to develop and distribute such guides. An agency 
        may prepare guides and apply this section with respect to a 
        rule or a group of related rules.
            ``(6) Reporting.--Not later than 1 year after the date of 
        enactment of the Small Business Reauthorization and 
        Improvements Act of 2006, and annually thereafter, the head of 
        each agency shall submit a report to the Committee on Small 
        Business and Entrepreneurship of the Senate and the Committee 
        on Small Business of the House of Representatives describing 
        the status of the agency's compliance with paragraphs (1) 
        through (5).''.
    (b) Technical and Conforming Amendment.--Section 211(3) of the 
Small Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 
601 note) is amended by inserting ``and entitled'' after 
``designated''.

SEC. 1902. APPOINTMENT OF OFFICIALS.

    (a) In General.--Section 4(b)(1) of the Small Business Act (15 
U.S.C. 633(b)(1)) is amended--
            (1) by inserting ``(A)'' after ``(b)(1)''; and
            (2) by adding at the end the following:
    ``(B) The following officials of the Administration shall be 
appointed by and with the advice and consent of the Senate:
            ``(i) The General Counsel.
            ``(ii) The Associate Deputy Administrator for Capital 
        Access.
            ``(iii) The Associate Deputy Administrator for Management 
        and Administration.
            ``(iv) The Associate Deputy Administrator for 
        Entrepreneurial Development.
            ``(v) The Associate Deputy Administrator for Government 
        Contracting and Business Development.
            ``(vi) The Associate Administrator for Disaster 
        Assistance.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect with respect to any appointment made after the date of 
enactment of this Act.

SEC. 1903. SECOND-STAGE PILOT PROGRAM.

    (a) Purpose.--The purpose of this section is to establish a 3-year 
pilot program to--
            (1) identify second-stage small business concerns that have 
        the capacity for significant business growth and job creation;
            (2) facilitate business growth and job creation by second-
        stage small business concerns through the development of peer 
        learning opportunities;
            (3) utilize the network of small business development 
        centers to expand access to peer learning opportunities for 
        second-stage small business concerns; and
            (4) assist businesses owned by minority individuals, 
        service-disabled veterans, and women.
    (b) Definitions.--In this section:
            (1) Community college.--The term ``community college'' has 
        the meaning given that term in section 3301(3) of the Higher 
        Education Act of 1965 (20 U.S.C. 7011(3)).
            (2) Eligible entities.--The term ``eligible entity'' means 
        an entity that--
                    (A) is eligible to receive funding under section 21 
                of the Small Business Act (15 U.S.C. 648); and
                    (B) submits to the Administrator an application 
                that includes--
                            (i) a plan to--
                                    (I) offer peer learning 
                                opportunities to second-stage small 
                                business concerns; and
                                    (II) transition to providing such 
                                opportunities using nongovernmental 
                                funding; and
                            (ii) any other information and assurances 
                        that the Administrator may require.
            (3) Historically black college.--The term ``historically 
        Black college'' means a part B institution, as defined in 
        section 322(2) of the Higher Education Act of 1965 (20 U.S.C. 
        1061(2)).
            (4) Hispanic-serving institution.--The term ``Hispanic-
        serving institution'' has the meaning given that term in 
        section 502(a)(5) of the Higher Education Act of 1965 (20 
        U.S.C. 1101a(a)(5)).
            (5) Minority institution.--The term ``minority 
        institution'' has the meaning given that term in section 365(3) 
        of the Higher Education Act of 1965 (20 U.S.C. 1067k(3)).
            (6) Peer learning opportunities.--The term ``peer learning 
        opportunities'' means formally organized peer groups of owners, 
        presidents and chief executive officers in noncompeting second-
        stage business concerns, meeting regularly with a 
        professionally trained facilitator.
            (7) Pilot program.--The term ``pilot program'' means the 
        program established under subsection (c)(1).
            (8) Second-stage small business concern.--
                    (A) In general.--The term ``second-stage small 
                business concern'' means a small business concern 
                that--
                            (i) has experienced high growth 
                        demonstrated by--
                                    (I) an average annual revenue or 
                                employee growth rate of at least 15 
                                percent during the preceding 3 years; 
                                or
                                    (II) a combination of any 3 of the 
                                attributes described in subparagraph 
                                (B); and
                            (ii) does not exceed the size standard for 
                        the North American Industrial Classification 
                        System code of such concern, as established 
                        pursuant to section 3(a) of the Small Business 
                        Act (15 U.S.C. 632(a)).
                    (B) Attributes.--The attributes described in this 
                subparagraph are--
                            (i) owning proprietary intellectual 
                        property;
                            (ii) addressing an underserved or growing 
                        market;
                            (iii) having a sustainable competitive 
                        advantage;
                            (iv) exporting goods or services outside of 
                        its community;
                            (v) having a product or service that is 
                        scalable to a large market; and
                            (vi) ownership by minority individuals, 
                        service-disabled veterans, or women.
            (9) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, and American Samoa.
    (c) Pilot Program.--
            (1) Establishment.--The Administrator shall establish and 
        carry out a pilot program to make grants to eligible entities 
        for the development of peer learning opportunities for second-
        stage small business concerns in accordance with this section.
            (2) Selection of grant recipients.--
                    (A) In general.--The Administrator shall select 2 
                eligible entities from each of the 10 regions described 
                in subparagraph (C) to receive grants.
                    (B) Criteria for selection.--The Administrator 
                shall evaluate the plans described in subsection (b)(2) 
                submitted by eligible entities and select eligible 
                entities to receive grants on the basis of the merit of 
                such plans.
                    (C) Regions described.--The regions described in 
                this subparagraph are as follows:
                            (i) Region 1.--Maine, Massachusetts, New 
                        Hampshire, Connecticut, Vermont, and Rhode 
                        Island.
                            (ii) Region 2.--New York, New Jersey, 
                        Puerto Rico, and the Virgin Islands.
                            (iii) Region 3.--Pennsylvania, Maryland, 
                        West Virginia, Virginia, the District of 
                        Columbia, and Delaware.
                            (iv) Region 4.--Georgia, Alabama, North 
                        Carolina, South Carolina, Mississippi, Florida, 
                        Kentucky, and Tennessee.
                            (v) Region 5.--Illinois, Ohio, Michigan, 
                        Indiana, Wisconsin, and Minnesota.
                            (vi) Region 6.--Texas, New Mexico, 
                        Arkansas, Oklahoma, and Louisiana.
                            (vii) Region 7.--Missouri, Iowa, Nebraska, 
                        and Kansas.
                            (viii) Region 8.--Colorado, Wyoming, North 
                        Dakota, South Dakota, Montana, and Utah.
                            (ix) Region 9.--California, Guam, Hawaii, 
                        Nevada, Arizona, and American Samoa.
                            (x) Region 10.--Washington, Alaska, Idaho, 
                        and Oregon.
                    (D) Consultation.--If small business development 
                centers have formed an association to pursue matters of 
                common concern as authorized under section 21(a)(3)(A) 
                of the Small Business Act (15 U.S.C. 648(a)(3)(A)), the 
                Administrator shall consult with such association and 
                give substantial weight to the recommendations of such 
                association in selecting the grant recipients under 
                this subsection.
                    (E) Deadline for initial selections.--The 
                Administrator shall make selections under subparagraph 
                (A) not later than 60 days after the promulgation of 
                regulations under subsection (d).
            (3) Use of funds.--An eligible entity that receives a grant 
        under the pilot program shall use the grant to--
                    (A) identify second-stage small business concerns 
                in the service delivery areas of the eligible entity; 
                and
                    (B) establish and conduct peer learning 
                opportunities for such second-stage small business 
                concerns.
            (4) Amount of grant.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a grant under the pilot program shall be in an 
                amount that does not exceed the product obtained by 
                multiplying--
                            (i) the amount made available for grants 
                        under the pilot program for the fiscal year for 
                        which the grant is made; and
                            (ii) the ratio that the population of the 
                        State in which the eligible entity is located 
                        bears to the aggregate population the States in 
                        which eligible entities receiving grants for 
                        that fiscal year are located.
                    (B) Minimum amount of grant.--A grant under the 
                pilot program shall be in an amount not less than 
                $50,000.
            (5) Matching requirement.--As a condition of a grant under 
        the pilot program, the Administrator shall require that a 
        matching amount be provided from sources other than the Federal 
        Government that--
                    (A) is equal to the amount of the grant, or in the 
                case of an eligible entity that is a community college, 
                historically Black college, Hispanic-serving 
                institution, or other minority institution, is equal to 
                50 percent of the amount of the grant;
                    (B) is not less than 50 percent cash;
                    (C) is not more than 50 percent comprised of 
                indirect costs and in-kind contributions; and
                    (D) does not include any indirect cost or in-kind 
                contribution derived from any Federal program.
            (6) Quarterly report to administrator.--
                    (A) In general.--Each eligible entity that receives 
                a grant under the pilot program shall submit to the 
                Administrator a quarterly report that includes--
                            (i) a summary of the peer learning 
                        opportunities established by the eligible 
                        entity using grant funds;
                            (ii) the number of second-stage small 
                        business concerns assisted using grant funds; 
                        and
                            (iii) in the case of an eligible entity 
                        that receives a grant for a second fiscal year 
                        or any subsequent fiscal year--
                                    (I) any measurable economic impact 
                                data resulting from the peer learning 
                                opportunities established using grant 
                                funds; and
                                    (II) the number of peer learning 
                                opportunities established by the 
                                eligible entity that have transitioned 
                                from operating using Government funds 
                                to operating without using Government 
                                funds.
                    (B) Form of report.--Each report required under 
                subparagraph (A) shall be transmitted in electronic 
                form.
            (7) Data repository and clearinghouse.--In carrying out the 
        pilot program, the Administrator shall act as the repository of 
        and clearinghouse for data and information submitted by the 
        eligible entities.
            (8) Annual report on pilot program.--Not later than 
        November 1 of each year, the Administrator shall submit to the 
        President and to Congress, a report evaluating the success of 
        the pilot program during the preceding fiscal year, which shall 
        include the following:
                    (A) A description of the types of peer learning 
                opportunities provided with grant funds.
                    (B) The number of second-stage small business 
                concerns assisted with grant funds.
                    (C) For fiscal year 2007 and each subsequent fiscal 
                year of the pilot program--
                            (i) data regarding the economic impact of 
                        the peer learning opportunities provided with 
                        grant funds; and
                            (ii) the number of peer learning 
                        opportunities established by grant recipients 
                        that have transitioned from operating using 
                        Government funds to operating without using 
                        Government funds.
            (9) Privacy requirement.--
                    (A) In general.--A small business development 
                center, consortium of small business development 
                centers, or contractor or agent of a small business 
                development center shall 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) Administrator use of information.--The privacy 
                requirement under this paragraph shall not--
                            (i) restrict Administrator access to 
                        program activity data; or
                            (ii) prevent the Administrator from using 
                        client information to conduct client surveys.
            (10) Evaluation and report.--Not later than 2 years after 
        the establishment of the pilot program, the Comptroller General 
        of the United States shall--
                    (A) conduct an evaluation of the pilot program; and
                    (B) transmit to Congress and the Administrator a 
                report containing the results of such evaluation along 
                with any recommendations as to whether the pilot 
                program, with or without modification, should be 
                extended to include the participation of all small 
                business development centers.
            (11) Termination.--The pilot program shall terminate on 
        September 30, 2009.
    (d) Regulations.--After providing notice and an opportunity for 
comment and after consulting with the association described in 
subsection (c)(2)(E) (if any such association has been formed), the 
Administrator shall promulgate final regulations to carry out this 
section, including regulations that establish--
            (1) standards relating to the establishment and conduct of 
        peer learning opportunities to be provided by grant recipients, 
        including the number of individuals that may participate in a 
        peer group that is part of a peer learning opportunity;
            (2) standards relating to the educational, technical, and 
        professional competency of any facilitator who delivers peer 
        learning opportunities under the pilot program; and
            (3) requirements for transitioning peer learning 
        opportunities funded under the pilot program to nongovernmental 
        funding.
    (e) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section, $1,500,000 for each of fiscal years 
        2007 through 2009.
            (2) Limitation on use of other funds.--The Administrator 
        shall carry out this section using only amounts appropriated in 
        advance specifically for the purpose of carrying out this 
        section.

SEC. 1904. PRIME REAUTHORIZATION AND TRANSFER TO THE SMALL BUSINESS 
              ACT.

    (a) Program Reauthorization.--The Small Business Act (15 U.S.C. 631 
et seq.) is amended by inserting after section 39, as added by this 
Act, the following:

``SEC. 40. PROGRAM FOR INVESTMENT IN MICROENTREPRENEURS.

    ``(a) Definitions.--In this section:
            ``(1) 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.
            ``(2) Collaborative.--The term `collaborative' means 2 or 
        more nonprofit entities that agree to act jointly as a 
        qualified organization under this section.
            ``(3) 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.
            ``(4) Disadvantaged native american entrepreneur.--The term 
        `disadvantaged Native American entrepreneur' means a 
        disadvantaged entrepreneur who is also a member of an Indian 
        Tribe.
            ``(5) Indian tribe.--The term `Indian tribe' has the same 
        meaning as in section 4(a) of the Indian Self-Determination and 
        Education Assistance Act.
            ``(6) Intermediary.--The term `intermediary' means a 
        private, nonprofit entity that seeks to serve microenterprise 
        development organizations and programs, as authorized under 
        subsection (d).
            ``(7) 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.
            ``(8) Microentrepreneur.--The term `microentrepreneur' 
        means the owner or developer of a microenterprise.
            ``(9) 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.
            ``(10) 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.
            ``(11) 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.
            ``(12) 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;
            ``(4) to provide training and technical assistance to 
        disadvantaged Native American entrepreneurs and prospective 
        entrepreneurs; and
            ``(5) 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 
        administration 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) 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 under 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 under this section.
            ``(3) Data collection.--Each organization that receives 
        assistance from the Administration under 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 of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Administrator $15,000,000 for each of the fiscal years 
        2007 through 2009, to carry out the provisions of this section, 
        which shall remain available until expended.
            ``(2) Training for native american entrepreneurs.--In 
        addition to the amount authorized under paragraph (1), there 
        are authorized to be appropriated to the Administrator 
        $2,000,000 for each of the fiscal years 2007 through 2009, to 
        carry out the provisions of subsection (c)(4), which shall 
        remain available until expended.''.
    (b) Conforming Repeal.--Subtitle C of title I of the Riegle 
Community Development and Regulatory Improvement Act of 1994 (15 U.S.C. 
6901 note) is repealed.
    (c) References.--All references in Federal law, other than 
subsection (d) of this section, to the ``Program for Investment in 
Microentrepreneurs Act of 1999'' or the ``PRIME Act'' shall be deemed 
to be references to section 40 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.

SEC. 1905. CHILD CARE LENDING PILOT PROGRAM.

    (a) Child Care Lending Pilot Program.--Section 502 of the Small 
Business Investment Act of 1958 (15 U.S.C. 696), as amended by this 
Act, 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 subsection (b)(1), as so redesignated--
                    (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), the proceeds of any loan 
                        described in subsection (a) may be used by the 
                        certified development company to assist a 
                        small, nonprofit child care business, if--
                                    ``(I) the loan is used for a sound 
                                business purpose that has been approved 
                                by the Administration;
                                    ``(II) each such business 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) each such business has clear 
                                and singular title to the collateral 
                                for the loan; and
                                    ``(V) each such 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 this subparagraph.
                            ``(iii) Defined term.--For purposes of this 
                        subparagraph, the term `small, nonprofit 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), and 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 2 completed fiscal years 
                                preceding the date of the application 
                                for assistance under this subparagraph 
                                that does not exceed $2,500,000; and
                                    ``(IV) is licensed as a child care 
                                provider by the State, insular area, or 
                                the District of Columbia, in which it 
                                is located.
                            ``(iv) Sunset provision.--This subparagraph 
                        shall cease to have effect on September 30, 
                        2009, 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 this 
                        subparagraph and ending on September 30, 
                        2009.''.
    (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, 2009, the Administrator 
                shall submit a report on the implementation of the 
                program under 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.--Each report under subparagraph (A) 
                shall contain--
                            (i) the date on which the program is 
                        implemented;
                            (ii) the date on which the rules are issued 
                        under subsection (c); and
                            (iii) the number and dollar amount of loans 
                        under the program applied for, approved, and 
                        disbursed during the previous 6 months--
                                    (I) with respect to nonprofit child 
                                care businesses; and
                                    (II) with respect to for-profit 
                                child care businesses.
            (2) Government accountability office.--
                    (A) In general.--Not later than March 31, 2009, 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 business concerns 
                        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 
                        the District of Columbia) and in total, the 
                        number of child care small businesses, 
                        categorized by status as a for-profit or 
                        nonprofit business, that--
                                    (I) applied for a loan under the 
                                program (and whether it was a new or 
                                expanding child care provider);
                                    (II) were approved for a loan under 
                                the program; and
                                    (III) received a loan disbursement 
                                under the program (and whether they are 
                                a new or expanding child care 
                                provider); and
                            (v) with respect to businesses described 
                        under clause (iv)(III)--
                                    (I) the number of such businesses 
                                in each State, insular area, and the 
                                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 government 
                        accountability office.--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. 1906. STUDY ON THE IMPACT OF THE LOW DOCUMENTATION LOAN PROGRAM.

    (a) Definition.--In this section, the term ``rural area'' has the 
same meaning as in section 7(m) of the Small Business Act (15 U.S.C. 
636(m)).
    (b) Study.--Not later than 3 months after the date of enactment of 
this Act, the Administrator shall undertake a study on the effect of 
eliminating the low documentation loan program under section 
7(a)(25)(C) of the Small Business Act (15 U.S.C. 636(a)(25)(C)), 
including--
            (1) the effectiveness of the low documentation loan program 
        in rural areas;
            (2) the effect that the elimination of the low 
        documentation loan program would have on lending in rural 
        areas; and
            (3) the overall accessibility and effectiveness of lending 
        in rural areas.
    (c) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall submit to the Committee 
on Small Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives a report containing--
            (1) the results of the study conducted under subsection 
        (b); and
            (2) recommendations, if any, to improve the accessibility 
        and effectiveness of lending in rural areas.

SEC. 1907. ENFORCEMENT OMBUDSMAN.

    Section 30(b)(2) of the Small Business Act (15 U.S.C. 657(b)(2)) is 
amended--
            (1) by redesignating subparagraphs (C) through (E) as 
        subparagraphs (D) through (F), respectively;
            (2) by inserting after subparagraph (B) the following:
                    ``(C) assist small business concerns with bringing 
                cases or complaints (whether formal or informal) before 
                Federal regulatory boards and agencies, including the 
                Surface Transportation Board, Environmental Protection 
                Agency, Occupational Health and Safety Administration, 
                Federal Communications Commission, and Food and Drug 
                Administration;''; and
            (3) in subparagraph (F), as redesignated by this section, 
        by striking ``subparagraph (C)'' and inserting ``subparagraph 
        (D)''.

SEC. 1908. MINORITY ENTREPRENEURSHIP AND INNOVATION PILOT PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``Hispanic serving institution'' has the 
        meaning given the term in section 502 of the Higher Education 
        Act of 1965 (20 U.S.C. 1101a);
            (2) the term ``historically Black college and university'' 
        has the meaning given the term ``part B institution'' in 
        section 322 of the Higher Education Act of 1965 (20 U.S.C. 
        1061);
            (3) the term ``small business development center'' has the 
        same meaning as in section 21 of the Small Business Act (15 
        U.S.C. 648); and
            (4) the term ``Tribal College'' has the meaning given the 
        term ``tribally controlled college or university'' in section 2 
        of the Tribally Controlled College or University Assistance Act 
        of 1978 (25 U.S.C. 1801).
    (b) Minority Entrepreneurship and Innovation Grants.--
            (1) In general.--The Administrator shall make grants to 
        historically Black colleges and universities, Tribal Colleges, 
        and Hispanic serving institutions, or to any entity formed by a 
        combination of such institutions--
                    (A) to assist in establishing an entrepreneurship 
                curriculum for undergraduate or graduate studies; and
                    (B) for placement of small business development 
                centers on the physical campus of the institution.
            (2) Curriculum requirement.--An institution of higher 
        education receiving a grant under this subsection shall develop 
        a curriculum that includes training in various skill sets 
        needed by successful entrepreneurs, including--
                    (A) business management and marketing, financial 
                management and accounting, market analysis and 
                competitive analysis, innovation and strategic 
                planning; and
                    (B) additional entrepreneurial skill sets specific 
                to the needs of the student population and the 
                surrounding community, as determined by the 
                institution.
            (3) Small business development center requirement.--Each 
        institution receiving a grant under this subsection shall open 
        a small business development center that--
                    (A) performs studies, research, and counseling 
                concerning the management, financing, and operation of 
                small business concerns;
                    (B) performs management training and technical 
                assistance regarding the participation of small 
                business concerns in international markets, export 
                promotion and technology transfer, and the delivery or 
                distribution of such services and information;
                    (C) offers referral services for entrepreneurs and 
                small business concerns to business development, 
                financing, and legal experts; and
                    (D) promotes market-specific innovation, niche 
                marketing, capacity building, international trade, and 
                strategic planning as keys to long-term growth for its 
                small business concern and entrepreneur clients.
            (4) Grant limitations.--A grant under this subsection--
                    (A) may not exceed $500,000 for any fiscal year for 
                any 1 institution of higher education;
                    (B) may not be used for any purpose other than 
                those associated with the direct costs incurred to 
                develop and implement a curriculum that fosters 
                entrepreneurship and the costs incurred to organize and 
                run a small business development center on the grounds 
                of the institution; and
                    (C) may not be used for building expenses, 
                administrative travel budgets, or other expenses not 
                directly related to the implementation of the 
                curriculum or activities authorized by this section.
            (5) Exception from small business act requirement.--
        Subparagraphs (A) and (B) of section 21(a)(4) of the Small 
        Business Act (15 U.S.C. 648(a)(4)) do not apply to assistance 
        made available under this subsection.
            (6) Report.--Not later than November 1 of each year, the 
        Associate Administrator of Entrepreneurial Development of the 
        Administration shall submit to the Committee on Small Business 
        and Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives, a report evaluating 
        the award and use of grants under this subsection during the 
        preceding fiscal year, which shall include--
                    (A) a description of each entrepreneurship program 
                developed with grant funds, the date of the award of 
                such grant, and the number of participants in each such 
                program;
                    (B) the number of small business concerns assisted 
                by each small business development center established 
                with a grant under this subsection; and
                    (C) data regarding the economic impact of the small 
                business development center counseling provided under a 
                grant under this subsection.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000, to remain available 
until expended, for each of fiscal years 2007 and 2008.
    (d) Limitation on Use of Other Funds.--The Administrator shall 
carry out this section only with amounts appropriated in advance 
specifically to carry out this section.

SEC. 1909. OFFICE OF NATIVE AMERICAN AFFAIRS PILOT PROGRAM.

    (a) Definition.--In this section, the term ``Indian tribe'' means 
any band, nation, or organized group or community of Indians located in 
the contiguous United States, and the Metlakatla Indian Community, 
whose members are recognized as eligible for the services provided to 
Indians by the Secretary of the Interior because of their status as 
Indians.
    (b) Authorization.--The Office of Native American Affairs of the 
Administration may conduct a pilot program--
            (1) to develop and publish a self-assessment tool for 
        Indian tribes that will allow such tribes to evaluate and 
        implement best practices for economic development; and
            (2) to provide assistance to Indian tribes, through the 
        Inter-Agency Working Group, in identifying and implementing 
        economic development opportunities available from the Federal 
        Government and private enterprise, including--
                    (A) the Administration;
                    (B) the Department of Energy;
                    (C) the Environmental Protection Agency;
                    (D) the Department of Commerce;
                    (E) the Federal Communications Commission;
                    (F) the Department of Justice;
                    (G) the Department of Labor;
                    (H) the Office of National Drug Control Policy; and
                    (I) the Department of Agriculture.
    (c) Termination of Program.--The authority to conduct a pilot 
program under this section shall terminate on September 30, 2008.
    (d) Report.--Not later than September 30, 2008, the Office of 
Native American Affairs shall submit a report to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives regarding the effectiveness of 
the self-assessment tool developed under subsection (b)(1).

SEC. 1910. INSTITUTIONS OF HIGHER EDUCATION.

    (a) In General.--Section 21(a)(1) of the Small Business Act (15 
U.S.C. 648(a)(1)) is amended by striking ``: Provided, That'' and all 
that follows through ``on such date.'' and inserting the following: 
``On and after December 31, 2006, the Administration may only make a 
grant under this paragraph to an applicant that is an institution of 
higher education, as defined in section 101(a) of the Higher Education 
Act of 1965 (20 U.S.C. 1001(a)) that is accredited (and not merely in 
preaccreditation status) by a nationally recognized accrediting agency 
or association, recognized by the Secretary of Education for such 
purpose in accordance with section 496 of that Act (20 U.S.C. 1099b), 
or to a women's business center operating pursuant to section 29 as a 
small business development center, unless the applicant was receiving a 
grant (including a contract or cooperative agreement) on December 31, 
2006.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on December 31, 2006.
                                                       Calendar No. 577

109th CONGRESS

  2d Session

                                S. 3778

_______________________________________________________________________

                                 A BILL

    To reauthorize and improve the Small Business Act and the Small 
        Business Investment Act of 1958, and for other purposes.

_______________________________________________________________________

                             August 2, 2006

                 Read twice and placed on the calendar