1.Short title; table of
contents
(a)This Act may be cited
as the Small Business Reauthorization
and Improvements Act of 2006
.
(b)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-protégé 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.
2.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).
<enum>I</enum><header>Reauthorization
of programs</header>
<section id="id768D6DFA4DEE4D13B29639C89E0F6E78"><enum>101.</enum><header>Reauthorization
of programs in Small Business Act</header><text display-inline="no-display-inline">The Small Business Act (15 U.S.C. 631 et
seq.) is amended—</text>
<paragraph id="id76D9A27CDEB348D592223B1CB85555F1"><enum>(1)</enum><text display-inline="yes-display-inline">in section 7—</text>
<subparagraph id="id6876E48E99934776884163181F89C528"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b)(1)(C), by striking
<quote>fiscal years 2000 through 2004</quote> and inserting <quote>fiscal years
2007 through 2009</quote>; and</text>
</subparagraph><subparagraph id="id47D29392F9C14641B2A25EB62ED000A6"><enum>(B)</enum><text>in subsection
(m)—</text>
<clause id="idC27CBD15E6A74C1283C2ECAB753D8A96"><enum>(i)</enum><text>in
paragraph (4)(F)(ii), by striking <quote>not more than 20</quote> and all that
follows through the period at the end and inserting <quote>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.</quote>; and</text>
</clause><clause id="idAFA5A6334FA14AD381547E53B654B30E"><enum>(ii)</enum><text>in
paragraph (12), in the matter preceding subparagraph (A), by striking
<quote>during fiscal years 1998 through 2000</quote> and inserting
<quote>during fiscal years 2007 through 2009</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="idFC516080919E4A18A4B0C9B6563035DF"><enum>(2)</enum><text display-inline="yes-display-inline">in section 9—</text>
<subparagraph id="idBD5F2679A88049CB9B5B5ABECEFFB66B"><enum>(A)</enum><text>by striking
subsection (m);</text>
</subparagraph><subparagraph id="idE0ECBD1CC684435284CC105ABEB9D66C"><enum>(B)</enum><text>in subsection
(n)(1), by striking <quote>through fiscal year 2009</quote>; and</text>
</subparagraph><subparagraph id="id4A6B3E595F984659A952DC8B4301D5D4"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (s)(2), by striking
<quote>fiscal years 2000 through 2005</quote> and inserting <quote>fiscal years
2007 through 2009</quote>;</text>
</subparagraph></paragraph><paragraph id="id04C21F8636CC4A2EBD1864E0C240E9B0"><enum>(3)</enum><text>in section 20, by
striking subsections (d) and (e) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id48DDA6D2DFFD4F6689790D1C41408E11" style="OLC">
<subsection id="id7C845D60915641FDA74D2A287F673CEB"><enum>(d)</enum><header>Fiscal year
2007</header>
<paragraph id="ID10f1dce3a7a84e8b9f6cdda86ff05828"><enum>(1)</enum><header>Program
levels</header><text>The following program levels are authorized for fiscal
year 2007:</text>
<subparagraph id="ID52bdc5f9c5ae4789a86cc88bc9c29828"><enum>(A)</enum><text>For the programs
authorized by this Act, the Administration is authorized to make—</text>
<clause id="ID4b824acb6c35400aa1cae8dad4790299"><enum>(i)</enum><text>$80,000,000 in
technical assistance grants, as provided in section 7(m); and</text>
</clause><clause id="IDd5cc4316d8bf4ce2a03881da704f099a"><enum>(ii)</enum><text>$110,000,000 in
direct loans, as provided in 7(m).</text>
</clause></subparagraph><subparagraph id="ID34cac3c667bd4da4a709d0cf9248c299"><enum>(B)</enum><text>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—</text>
<clause id="ID70132e59d6b14c168a9c3b34c11ed6a1"><enum>(i)</enum><text>$18,000,000,000
in general business loans, as provided in section 7(a);</text>
</clause><clause id="ID90b09b14e74a4621b8f7aa8cae368876"><enum>(ii)</enum><text>$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;</text>
</clause><clause id="ID248b2373dbe946c8b9d1177ebf0ca508"><enum>(iii)</enum><text>$500,000,000 in
loans, as provided in section (7)(a)(21); and</text>
</clause><clause id="ID42f8befa8f944352a6a4f789aeb9c6c2"><enum>(iv)</enum><text>$50,000,000 in
loans, as provided in section 7(m).</text>
</clause></subparagraph><subparagraph id="ID6cf7cc29e127477eada8b11882f61275"><enum>(C)</enum><text>For the programs
authorized by title III of the Small Business Investment Act of 1958, the
Administrator is authorized to make—</text>
<clause id="ID3adf8a4acdcf43c2a7c81c7ade66a390"><enum>(i)</enum><text>$500,000,000 in
purchases of participating securities; and</text>
</clause><clause id="IDa08b976b570646e5ba393875b9fdbc71"><enum>(ii)</enum><text>$4,000,000,000
in guarantees of debentures.</text>
</clause></subparagraph><subparagraph id="ID6157e4f6915447dc9008240d893e6e59"><enum>(D)</enum><text>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.</text>
</subparagraph><subparagraph id="ID486b49ce91474c8c8cc4b97d56e6cb36"><enum>(E)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="IDd3689891837442948c238ab8566f1785"><enum>(2)</enum><header>Additional
authorizations</header>
<subparagraph id="ID23b3bfe3fa18435aae38d24d3892af2f"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID39d8df08b1f84f7cbeb54515b5f3b22b"><enum>(B)</enum><header>Limitations</header><text>Notwithstanding
any other provision of this paragraph, for fiscal year 2007—</text>
<clause id="IDb5775cfe2cec46b8871302d8ae448d47"><enum>(i)</enum><text>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</text>
</clause><clause id="ID49fb585223ca4c0f9f5132f2097ede2e"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDa2cc144e0ec14fa8adab85edd50192c5"><enum>(e)</enum><header>Fiscal year
2008</header>
<paragraph id="IDd51bd4a4377b4a22be3c548f99609144"><enum>(1)</enum><header>Program
levels</header><text>The following program levels are authorized for fiscal
year 2008:</text>
<subparagraph id="ID2086b8ccc9224499ac56381133cd8938"><enum>(A)</enum><text>For the programs
authorized by this Act, the Administration is authorized to make—</text>
<clause id="IDbb965f4b6edf4c2cbe0073a39e06d48e"><enum>(i)</enum><text>$80,000,000 in
technical assistance grants, as provided in section 7(m); and</text>
</clause><clause id="ID4544fc9e743a4085ac980257c4de3f7b"><enum>(ii)</enum><text>$110,000,000 in
direct loans, as provided in 7(m).</text>
</clause></subparagraph><subparagraph id="IDda47a66fb56e46ac8fe45cb34cbd1450"><enum>(B)</enum><text>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—</text>
<clause id="ID44ce66b3ba3e42a38bed83b7429f7855"><enum>(i)</enum><text>$19,500,000,000
in general business loans, as provided in section 7(a);</text>
</clause><clause id="ID9ad534b63e1943b8a96d2373a2c39100"><enum>(ii)</enum><text>$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;</text>
</clause><clause id="ID15fada25c20948608eed26e5cf4548a0"><enum>(iii)</enum><text>$500,000,000 in
loans, as provided in section (7)(a)(21); and</text>
</clause><clause id="ID7c568fb5c05d4ebeac47d9805a9585f0"><enum>(iv)</enum><text>$50,000,000 in
loans, as provided in section 7(m).</text>
</clause></subparagraph><subparagraph id="ID45c358bbf03d4855b06b60984ced0e1b"><enum>(C)</enum><text>For the programs
authorized by title III of the Small Business Investment Act of 1958, the
Administrator is authorized to make—</text>
<clause id="IDf81a0e62d67d462a9ab4734f440427c5"><enum>(i)</enum><text>$600,000,000 in
purchases of participating securities; and</text>
</clause><clause id="ID937c897c68d043a599d6cd27dba4860c"><enum>(ii)</enum><text>$4,000,000,000
in guarantees of debentures.</text>
</clause></subparagraph><subparagraph id="IDaef7bfd8f37c4eeb87fc5e62f841f556"><enum>(D)</enum><text>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.</text>
</subparagraph><subparagraph id="IDb9b3b301945948009dde72e214f59a53"><enum>(E)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="IDe295207602c243c4896f55967d65bfae"><enum>(2)</enum><header>Additional
authorizations</header>
<subparagraph id="ID7c71430e9e9c4b6a9dadf02a37d2f3ab"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID187cbb3b4b0c4479a74849119aa5bd2e"><enum>(B)</enum><header>Limitations</header><text>Notwithstanding
any other provision of this paragraph, for fiscal year 2008—</text>
<clause id="IDa64ca413072f471db41f18c6a2e4ab44"><enum>(i)</enum><text>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</text>
</clause><clause id="ID4138ef36c7fe49b4b0a38a4bc429908a"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID9b80dbabe9684e7b8b0714cb8787c864"><enum>(f)</enum><header>Fiscal year
2009</header>
<paragraph id="ID6d63952375d34863b177dafc948a7a9b"><enum>(1)</enum><header>Program
levels</header><text>The following program levels are authorized for fiscal
year 2009:</text>
<subparagraph id="ID2e3dce2e1dde41599867f407a43132cd"><enum>(A)</enum><text>For the programs
authorized by this Act, the Administration is authorized to make—</text>
<clause id="ID9ecc617cb2494d768cdcfce98c1a01fe"><enum>(i)</enum><text>$80,000,000 in
technical assistance grants, as provided in section 7(m); and</text>
</clause><clause id="ID66e660591d554d34bc1dbce4d6e432d6"><enum>(ii)</enum><text>$110,000,000 in
direct loans, as provided in 7(m).</text>
</clause></subparagraph><subparagraph id="ID0b3a34bdac1841b787c093ec53f5086f"><enum>(B)</enum><text>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—</text>
<clause id="ID2db02a8dc7794e13a6303b2171302031"><enum>(i)</enum><text>$21,000,000,000
in general business loans, as provided in section 7(a);</text>
</clause><clause id="IDae89e60fcc9241798c8aaacc99d8d933"><enum>(ii)</enum><text>$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;</text>
</clause><clause id="IDa0f03506598644d4a78df0eb96ac6428"><enum>(iii)</enum><text>$500,000,000 in
loans, as provided in section (7)(a)(21); and</text>
</clause><clause id="ID7631978baa5c4e4bad7f71666c9b030f"><enum>(iv)</enum><text>$50,000,000 in
loans, as provided in section 7(m).</text>
</clause></subparagraph><subparagraph id="IDcd71431118094eef9dfa567775e5e404"><enum>(C)</enum><text>For the programs
authorized by title III of the Small Business Investment Act of 1958, the
Administrator is authorized to make—</text>
<clause id="ID5f4a3ab5d1d749a291bc36d2fc920354"><enum>(i)</enum><text>$700,000,000 in
purchases of participating securities; and</text>
</clause><clause id="IDa8cdbea2b2e4462cb0881312a2c2b090"><enum>(ii)</enum><text>$4,000,000,000
in guarantees of debentures.</text>
</clause></subparagraph><subparagraph id="IDadfc1123a76d4e1ea2f01872a429422b"><enum>(D)</enum><text>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.</text>
</subparagraph><subparagraph id="IDf87212d674ef4417affa1a911419b40f"><enum>(E)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="ID230155f283e445998b39bcc96d5cb781"><enum>(2)</enum><header>Additional
authorizations</header>
<subparagraph id="IDa0c4674bca504b1da9d1665f1c2a7859"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="IDc8d992335c5a4e768c5bd2694a3ea4fe"><enum>(B)</enum><header>Limitations</header><text>Notwithstanding
any other provision of this paragraph, for fiscal year 2009—</text>
<clause id="IDe6bb931b9c07442789ebb416a4a91fcc"><enum>(i)</enum><text>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</text>
</clause><clause id="ID61f5e3e49c734bb6895ed3cad72d4f25"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id0BF6655F3F1B49D4A6B7E92B5B177DD9"><enum>(4)</enum><text>in section
21—</text>
<subparagraph id="idF54D0525A07242F2824332393E476635"><enum>(A)</enum><text>in subsection
(a)(4)(C), by amending clause (vii) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id2EBE54ED7A5341458B8FC0E5A5F699F9" style="OLC">
<clause id="id57FE14C6E05C48179912E0AADCC097A7"><enum>(vii)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this subparagraph—</text>
<subclause id="id11508217FEAB41A8ADAB230F9FFA3432"><enum>(I)</enum><text>$135,000,000 for
fiscal year 2007;</text>
</subclause><subclause id="idF02D3897208042B186B227AE035B4907"><enum>(II)</enum><text>$140,000,000 for
fiscal year 2008; and</text>
</subclause><subclause id="id8DA6B0F8B8E04E3082A8E4375AE94273"><enum>(III)</enum><text>$145,000,000
for fiscal year 2009.</text>
</subclause></clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id70D31DE990BF45C2A9DFD08F5DD34018"><enum>(B)</enum><text>in subsection
(c)(3)(T), by striking <quote>October 1, 2006</quote> and inserting
<quote>October 1, 2009</quote>;</text>
</subparagraph></paragraph><paragraph id="id67F2E49C44BF4F74B7F7E99AE76486D5"><enum>(5)</enum><text>in section
27(g)—</text>
<subparagraph id="idF51A3CF3EAC246D280EEF1DFE38BC847"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>fiscal years 2005 and 2006</quote> and inserting
<quote>fiscal years 2007 through 2009</quote>; and</text>
</subparagraph><subparagraph id="idCB707DF95CD04BC696B625ED77D800DA"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>fiscal years 2005 and 2006</quote> and inserting
<quote>fiscal years 2007 through 2009</quote>;</text>
</subparagraph></paragraph><paragraph id="id2F9B9F41621446DFB835D5C209DCA0ED"><enum>(6)</enum><text>in section 32(c),
by striking <quote>to carry out this section</quote> and all that follow
through the period at the end and inserting <quote>to carry out this section,
$2,000,000 for each of fiscal years 2007 through 2009.</quote>; and</text>
</paragraph><paragraph id="id1DCDF04CAA574B5EA4FF83168CE8FBA2"><enum>(7)</enum><text>in section 34(i),
by striking <quote>September 30, 2005</quote> and inserting <quote>September
30, 2009</quote>.</text>
</paragraph></section><section id="idD890AD423FF44AFBB42362B28D1B1726"><enum>102.</enum><header>Other
reauthorizations</header>
<subsection id="idF97CCE07B6D14267AF2F5415AD0F9A6C"><enum>(a)</enum><header>New markets
venture capital program</header><text>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 <quote>fiscal years 2001 through 2006</quote> and
inserting <quote>fiscal years 2007 through 2009</quote>.</text>
</subsection><subsection id="id5F0E16F541784C88B428EF87C3214987"><enum>(b)</enum><header>Gift acceptance
and cosponsorship authority</header><text>Section 132(c) of the Small Business
Reauthorization and Manufacturing Assistance Act of 2004 (15 U.S.C. 633 note)
is amended by striking <quote>October 1, 2006</quote> and inserting
<quote>October 1, 2009</quote>.</text>
</subsection></section><section id="ID46FC2034B026437EA8E6245CF491B9A6"><enum>103.</enum><header>Conforming
technical change in average smaller loan size</header><text display-inline="no-display-inline">Section 7(m)(3)(F)(iii) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C.
636(m)(3)(F)(iii)) is amended by striking <quote>$7,500</quote> and inserting
<quote>$10,000</quote>.</text>
</section><section id="id976A69EB95374CB5B36F4C47B266DF4C"><enum>104.</enum><header>Accurate
subsidy model</header><text display-inline="no-display-inline">Section 7(m) of
the <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C.
636(m)) is amended by adding at the end the following:</text>
<quoted-block act-name="Small Business Act" id="ID373DF5E197C14AEEAFA9589E04CC9743">
<paragraph id="ID6A5B5AE463014417B2AA498200075FF3"><enum>(14)</enum><header>Improved
subsidy model</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idCA388A434E2944CFB94F13D50C636A8A"><enum>105.</enum><header>Inclusion of
persons with disabilities</header><text display-inline="no-display-inline">Section 7(m)(1)(A)(i) of the Small Business
Act (15 U.S.C. 636(m)(1)(A)(i)) is amended by inserting <quote>persons with
disabilities,</quote> before <quote>and minority</quote>.</text>
</section><enum>II</enum><header>National
Preferred Lenders Program</header>
<section commented="no" display-inline="no-display-inline" id="IDF4832824D14F4959845662ACE96B2259" section-type="subsequent-section"><enum>201.</enum><header>National Preferred
Lenders Program</header><text display-inline="no-display-inline">Section
7(a)(2) of the <act-name parsable-cite="SBA">Small Business Act</act-name> (15
U.S.C. 636(a)(2)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id12EF449DF9984847AAEB713E711C8F04" style="OLC">
<subparagraph id="ID40e0d8bc225040368bca79beeaf648de"><enum>(E)</enum><header>National
preferred lenders program</header>
<clause id="id6F855EFD91374AB99262F4D614E1CE33"><enum>(i)</enum><header>In
general</header><text>The Administrator shall establish a National Preferred
Lenders Program by regulation.</text>
</clause><clause id="id4F57C575C27F4CC7806A67AF83ECDB3D"><enum>(ii)</enum><header>Existing
preferred lenders</header><text>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 <short-title>Small Business
Reauthorization and Improvements Act of 2006</short-title>, shall continue that
status to the extent that the lender continues to meet the qualifications for
preferred lender status under this
section.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id37179A553AD141BDA661E91A123B6B33" section-type="subsequent-section"><enum>202.</enum><header>Maximum loan
amount</header><text display-inline="no-display-inline">Section 7(a)(3)(A) of
the Small Business Act (15 U.S.C. 636(a)(3)(A)) is amended by striking
<quote>$1,500,000 (or if the gross loan amount would exceed $2,000,000</quote>
and inserting <quote>$2,250,000 (or if the gross loan amount would exceed
$3,000,000</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="ID08356327d68847aba8f538c890502599" section-type="subsequent-section"><enum>203.</enum><header>Alternative size
standard</header><text display-inline="no-display-inline">Section 3(a)(3) of
the Small Business Act (15 U.S.C. 632(a)(3)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idDAB89F0EA1DC4E9AA0DCF44A626E8ED9"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>When
establishing</quote> and inserting the
following:</text>
<quoted-block display-inline="yes-display-inline" id="idDA966F95D28E4795A4D0F5DC50BA3244" style="OLC">
<text><header-in-text level="paragraph" style="OLC">Establishment of Size
Standards.</header-in-text>—</text><subparagraph commented="no" display-inline="no-display-inline" id="idCCFFC10027934285AC37CD12A5297392" indent="up1"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">When
establishing</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id925FB5289D8C46B6983EFAD626E9CFFB"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id285191CDC2B1425D8813F2A38128F9B1" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id3C5B3C5582DA4405990832BB886A2399" indent="up1"><enum>(B)</enum><header>Alternative size standard</header>
<clause commented="no" display-inline="no-display-inline" id="idD5865B00413842118D567F4B24721D51"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">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
<act-name parsable-cite="SBIA">Small Business Investment Act of 1958</act-name>
(15 U.S.C. 695 et seq.).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id8BA39A3981E3498CBC2FC9A8FAAA235B"><enum>(ii)</enum><header>Criteria</header><text display-inline="yes-display-inline">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.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idED65993F553A40968B53E417230E8C77"><enum>(iii)</enum><header>Interim rule</header><text display-inline="yes-display-inline">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 <act-name parsable-cite="SBIA">Small Business Investment Act of
1958</act-name> (15 U.S.C. 695 et
seq.).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id57A9462A5F424854BA7A466A28628C0F" section-type="subsequent-section"><enum>204.</enum><header>Minority small
business development</header>
<subsection commented="no" display-inline="no-display-inline" id="id6DC6C2AB36054075BA3047DCC78592B5"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Small Business
Act (15 U.S.C. 631 et seq.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idECFAA6DB18524DDF927EF589B59C41C2"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating section 37 as section 41;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE1FADA875B944BB5B2385C342D5F5FAC"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after section 36 the
following:</text>
<quoted-block display-inline="no-display-inline" id="id5F2A645381D84B01A542E56FD42F36A9" style="OLC">
<section commented="no" display-inline="no-display-inline" id="id66410B0DA2554CEDA95E794B853C11F7" section-type="subsequent-section"><enum>37.</enum><header>Minority small
business development</header>
<subsection commented="no" display-inline="no-display-inline" id="IDD723AA21878C49A28A8E790A15F07791"><enum>(a)</enum><header>Office of
minority small business development</header><text display-inline="yes-display-inline">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 <quote>Associate Administrator</quote>) appointed
under section 4(b)(1).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDB614A3DADC574A00870D94C9DE1CEFD0"><enum>(b)</enum><header>Associate
administrator for minority small business development</header><text display-inline="yes-display-inline">The Associate Administrator—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDC9A0DBDCF0944D4FBE5D56C8513A14F8"><enum>(1)</enum><text display-inline="yes-display-inline">shall be either—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idF4E125B33CB84D699AAD2E51F9405755"><enum>(A)</enum><text display-inline="yes-display-inline">an appointee in the Senior Executive
Service who is a career appointee; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4FB4B1EAEB3748C79F387D0FA292ADE9"><enum>(B)</enum><text display-inline="yes-display-inline">an employee in the competitive
service;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4674C285835848C78D1D01366CABBE1F"><enum>(2)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDE2E52ABEB08418AB31580EA8D438F6F"><enum>(3)</enum><text display-inline="yes-display-inline">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));</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1538385c63974f06aada4128581e779c"><enum>(4)</enum><text display-inline="yes-display-inline">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);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3d5fb789056b4fcc941a297e3898e599"><enum>(5)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4ae6d8cb209442b0bf07fea717d654d0"><enum>(6)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0685fe71e2f846fbb8b846d1b2036a23"><enum>(7)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDbdaa33d6b6974db799a702c4201ee0d9"><enum>(8)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6D7CF5BE8A6C44A79F13BE67568C8C95"><enum>(9)</enum><text display-inline="yes-display-inline">shall report to and be responsible directly
to the Administrator.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDD105E454118E43CCB496B1D6EEABA98D"><enum>(c)</enum><header>Authorization
of appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to carry out this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID5394CAE1C9534193B6420FD7C33E5126"><enum>(1)</enum><text display-inline="yes-display-inline">$5,000,000 for fiscal year 2007;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id03BDDE0E39384E868EC56F29C1201D6A"><enum>(2)</enum><text display-inline="yes-display-inline">$5,000,000 for fiscal year 2008; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5E73286D170B496997B6805F19AB0D1A"><enum>(3)</enum><text display-inline="yes-display-inline">$5,000,000 for fiscal year
2009.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC0315CE5A6CD4E4B848761308137E2F0"><enum>(b)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">Section 4(b)(1) of
the Small Business Act (15 U.S.C. 633(b)(1)) is amended in sixth sentence, by
striking <quote>Minority Small Business and Capital Ownership
Development</quote> and all that follows through the end of the sentence and
inserting <quote>Minority Small Business Development.</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id810C684D568949C08FE94719E6BD18C1" section-type="subsequent-section"><enum>205.</enum><header>Lowering of
fees</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idFF6C16110E264BC6B80372100C9246C8" style="OLC">
<subparagraph id="idE8AFF9AF8DAD4B94AD7AF9BAEFEA69F3"><enum>(C)</enum><header>Lowering of
fees</header>
<clause id="idBA8A2C33B0CA445A99A67C43B9103DA1"><enum>(i)</enum><header>In
general</header><text>For loan guarantees made or approved in each full fiscal
year after the date of enactment of the <short-title>Small
Business Reauthorization and Improvements Act of 2006</short-title>, 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.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idBF0518E2AAEE452EB2B22726B296A80E"><enum>(ii)</enum><header>Maximum</header><text>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).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>III</enum><header>Small Business
Investment Act of 1958</header>
<subtitle id="idB1312BB12B5F442B84C37227AA44FCAC"><enum>A</enum><header>Debentures and
securities</header>
<section commented="no" display-inline="no-display-inline" id="IDB88DAED4E75548BFBAC8E3885F6023F1" section-type="subsequent-section"><enum>301.</enum><header>Participating
debenture companies</header><text display-inline="no-display-inline">Part A of
title III of the <act-name parsable-cite="SBIA">Small Business Investment Act
of 1958</act-name> (15 U.S.C. 681 et seq.) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idEB289EC077E3424CAB286E50C9125866" style="OLC">
<section id="idF09316B30D46483AA8F307016E64506C"><enum>321.</enum><header>Participating
debenture companies</header>
<subsection id="ID06D37DC94F744E6AB85A95F5758879CB"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="ID001edffae26d407da9ec0387c57fe221"><enum>(1)</enum><header>Equity
capital</header><text>In this paragraph, the term <term>equity capital</term>
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.</text>
</paragraph><paragraph id="ID44340DB24F6E4CF08ECDA1E6F97345A6"><enum>(2)</enum><header>General
partner</header><text>The term <term>general partner</term> 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.</text>
</paragraph><paragraph id="id3127D4C8FF7B4A839BF75BE8A7C8C80F"><enum>(3)</enum><header>Gross
receipts</header><text>The term <term>gross receipts</term> 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.</text>
</paragraph><paragraph id="idEE0B0B40CD5745BB9B2209FF949FA249"><enum>(4)</enum><header>Interim funding
provider</header><text>The term <term>interim funding provider</term> means any
entity that provides funding guaranteed by the Administrator to a licensed
company in between the periodic pools created by any trustee.</text>
</paragraph><paragraph id="IDB4DC86C536FA4298B0254897AF11415F"><enum>(5)</enum><header>Licensed
company</header><text>The term <term>licensed company</term> means a small
business investment company authorized to issue participating debentures by a
license issued under section 301 for that purpose.</text>
</paragraph><paragraph id="idC51E0EF2CB7E42EC8AF1B15415A30C69"><enum>(6)</enum><header>Limited
partner</header><text>The term <term>limited partner</term> 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.</text>
</paragraph><paragraph id="ID6e3fb6a19b9e45e8ae2323689ed363f3"><enum>(7)</enum><header>Participating
debenture</header><text>The term <term>participating debenture</term> means a
debt security that is—</text>
<subparagraph id="IDf3c6e702f5d94531917fb3dc9ca4bf2b"><enum>(A)</enum><text>in a form
prescribed by the Administrator that obligates the issuing company to
pay—</text>
<clause id="ID8488ce1bbe734293a576a22c075d04d5"><enum>(i)</enum><text>on the seventh
anniversary of the date of issuance of the debenture, all accrued interest on
that debenture that has not previously been paid;</text>
</clause><clause id="IDc43e28d81796458aaa30cb15d68f7402"><enum>(ii)</enum><text>semiannually
thereafter, interest accruing after the seventh anniversary of the date of
issuance of the debenture; and</text>
</clause><clause id="ID1d749f688b4743cea003d8b71d710f5f"><enum>(iii)</enum><text>any other
amount required by this section; and</text>
</clause></subparagraph><subparagraph id="ID686a31fd805b4fb894b677a4656c8738"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="IDEE65ED7FE9F24885B315CED37057EF94"><enum>(8)</enum><header>Private
collateral</header><text>The term <term>private collateral</term> 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.</text>
</paragraph><paragraph id="IDc98faa62e9b54cf9a53af356de5ef294"><enum>(9)</enum><header>Trustee</header><text>The
term <term>trustee</term> 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.</text>
</paragraph><paragraph id="ID0056e3b744d045afa0ed24fe0880d5ef"><enum>(10)</enum><header>Trust
certificate</header><text>The term <term>trust certificate</term> 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.</text>
</paragraph><paragraph id="ID61c0d41307954a17885f40de7a27292e"><enum>(11)</enum><header>Trust
certificate holder</header><text>The term <term>trust certificate holder</term>
means an investor that purchases a trust certificate.</text>
</paragraph></subsection><subsection id="IDedfa3e8b1d174f50b655a4bff0c77716"><enum>(b)</enum><header>Participating
debentures program</header>
<paragraph id="IDb207fd24fc914971baaf77a95f4c6425"><enum>(1)</enum><header>Guarantee of
participating debentures</header>
<subparagraph id="ID23602d93858d416fa1915d3f3a86eccc"><enum>(A)</enum><header>Redemption
price and interest</header><text>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.</text>
</subparagraph><subparagraph id="ID27e103f247a34c32b8ac1d160709a224"><enum>(B)</enum><header>Repayment in
default</header><text>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.</text>
</subparagraph><subparagraph id="IDd1763f12659047c8b2e65f35e62f9715"><enum>(C)</enum><header>Trust
certificates</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID46586e2e227a4f5d95034b2dc5d075fe"><enum>(2)</enum><header>Guarantee
fee</header><text>The Administrator may charge a separate fee—</text>
<subparagraph id="idA8530B694FA64FAFBB9FB259925B9335"><enum>(A)</enum><text>under paragraph
(1)(A), to the interim funding provider;</text>
</subparagraph><subparagraph id="idA97DA514AA1340B18BC9D5C66CB6AFAC"><enum>(B)</enum><text>under paragraph
(1)(B), to the licensed company; and</text>
</subparagraph><subparagraph id="idD2B43A658CE348EC8B560BD8E8C2CBA9"><enum>(C)</enum><text>under paragraph
(1)(C), to the trustee.</text>
</subparagraph></paragraph><paragraph id="id15E6117C275945F48447C83CFD27DEB3"><enum>(3)</enum><header>Zero-subsidy</header><text>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).</text>
</paragraph><paragraph id="idD87DC43AD4E64659B67C20DD1F2C4C03"><enum>(4)</enum><header>Matching
payment streams</header><text>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—</text>
<subparagraph id="idDD7FD0AD5F474B9E9ECE955814AEF2EB"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="id83B8FF68F06846F8BD6738614A95BBC1"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="id9C28927743544812B40D02828C60CCD8"><enum>(5)</enum><header>Interest to
interim funding provider</header>
<subparagraph id="idDC7FEE351B0B4D629AAC883826DC7E1F"><enum>(A)</enum><header>Right to
receive interest</header><text>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.</text>
</subparagraph><subparagraph id="id0437AD5842E94F6D8A1ADE53236ACFD7"><enum>(B)</enum><header>Amounts</header><text>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.</text>
</subparagraph><subparagraph id="id8130176D92434B8C94A0FC63B7DA97A3"><enum>(C)</enum><header>Collection of
interest</header><text>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.</text>
</subparagraph></paragraph><paragraph id="IDc41c7e9f83f74b0b88ff37babe83036f"><enum>(6)</enum><header>Maximum
leverage</header><text>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.</text>
</paragraph><paragraph id="ID7aa99c575bd14f969f0418c419161a50"><enum>(7)</enum><header>Purchase of
participating debentures</header><text>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.</text>
</paragraph><paragraph id="IDeff873b194a24040a664c1839f6f0820"><enum>(8)</enum><header>Redemption</header><text>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.</text>
</paragraph><paragraph id="IDd173aa33506646069a096a3c1c83fbfc"><enum>(9)</enum><header>Interest</header>
<subparagraph id="IDf5c469f8b0294d38ae8a48c1c7d304e1"><enum>(A)</enum><header>In
general</header><text>For purposes of this subparagraph, interest on a
participating debenture—</text>
<clause id="idADFEE32608D348FBA97437A980D69980"><enum>(i)</enum><text>is preferred and
cumulative;</text>
</clause><clause id="idEA72ECFC98174DC78C1FEC431F02B4C6"><enum>(ii)</enum><text>is prepayable
out of any gross receipts available for distribution; and</text>
</clause><clause id="id281CED06466D4CA6BC483BC8F1C80043"><enum>(iii)</enum><text>in any event,
is payable at the scheduled or accelerated maturity of the participating
debenture.</text>
</clause></subparagraph><subparagraph id="IDc34cb389127c4558909a16e38ddfa147"><enum>(B)</enum><header>Interest on
principal balance</header><text>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
<fraction>1/8</fraction> 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.</text>
</subparagraph></paragraph><paragraph id="IDff007801d63c4d08aab0a1a3f5e5910a"><enum>(10)</enum><header>Payment
defaults</header>
<subparagraph id="idED26DEE8E8A34958BC848CD14AE0CD81"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="IDfa3bd171f87840b8920f9fb62155eca4"><enum>(B)</enum><header>Acceleration</header><text>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.</text>
</subparagraph><subparagraph id="ID7132b01d39b545b39212016b464874c6"><enum>(C)</enum><header>Default rate of
interest</header><text>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.</text>
</subparagraph><subparagraph id="ID70ba5eee5c2a4262bd1a563415a57de0"><enum>(D)</enum><header>Private
collateral</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID7c363d0b938c48e684e1fc5f784a647b"><enum>(11)</enum><header>Liquidation of
licensed company</header><text>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.</text>
</paragraph><paragraph id="ID73d254da09a44d4e8e47ac6fe72526e3"><enum>(12)</enum><header>Default of a
licensed company</header><text>In the event of the default of a licensed
company issuing participating debentures under this subsection—</text>
<subparagraph id="id165DC0804D17415886DA9EA755154281"><enum>(A)</enum><text>a participating
debenture shall be senior in priority for all purposes to any interest in the
issuing company, whenever created; and</text>
</subparagraph><subparagraph id="id12B3F9F856CD4C74B5734009C17992D7"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="IDec42e0074fc44a4db83206e599368886"><enum>(13)</enum><header>Investment
obligation</header><text>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.</text>
</paragraph><paragraph id="IDe038d118c5e84243a226e7d60a509f50"><enum>(14)</enum><header>Other
debt</header><text>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.</text>
</paragraph><paragraph id="ID9e8beb22f2b74546b0c41702494e0967"><enum>(15)</enum><header>Use of
proceeds</header><text>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.</text>
</paragraph><paragraph id="ID9a5cf482f2cc45d5aa522be7e8876a6f"><enum>(16)</enum><header>Distribution
of gross receipts</header>
<subparagraph id="id0FAC7B785F10400A8FF690643611769E"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="ID3d334ba64e804482b46716aba88412d6"><enum>(B)</enum><header>Past due
interest and principal</header><text>Gross receipts shall first be used, within
10 days of receipt—</text>
<clause id="id4FBDE1EE6478437B81B24DCE886520CF"><enum>(i)</enum><text>to pay any past
due interest on participating debentures issued by the licensed company;
and</text>
</clause><clause id="idD027308997E445A281989A91394D3275"><enum>(ii)</enum><text>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).</text>
</clause></subparagraph><subparagraph id="ID2e8b30463c5c493bb8393ce21e3b7de6"><enum>(C)</enum><header>Mandatory
interest prepayment</header><text>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.</text>
</subparagraph><subparagraph id="ID19d32311b66a4a23a913234590962b78"><enum>(D)</enum><header>Amortization
distributions</header>
<clause id="id298AD0DE6E1942A887BA4E506141E464"><enum>(i)</enum><header>In
general</header><text>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—</text>
<subclause id="id7F619994DB1749D2A0965DBEF183D588"><enum>(I)</enum><text>to the
Administration to amortize outstanding participating debenture leverage;
and</text>
</subclause><subclause id="id70E7E6ADD4634BD9A454EE66D625428E"><enum>(II)</enum><text>to its private
investors.</text>
</subclause></clause><clause id="id816C7EC5312741BA9271773D2916E4D0"><enum>(ii)</enum><header>Pro rata
distribution</header><text>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.</text>
</clause></subparagraph><subparagraph id="IDbc688ce45e1e4e8f93204d51f70a00e5"><enum>(E)</enum><header>Post-amortization
distributions</header><text>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—</text>
<clause id="ID72ccceccb2ae4a32829baa76a48db9ec"><enum>(i)</enum><text>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</text>
</clause><clause id="ID071b224d05b04810bc705a4375e7c00d"><enum>(ii)</enum><text>in the case of
any post-amortization distributions to the Administration under this
subparagraph, shall be deemed to constitute <quote>additional</quote> interest
(not <quote>accrued</quote> interest).</text>
</clause></subparagraph><subparagraph id="ID7f45bb5ad9ba4ddc99b7bafa12009116"><enum>(F)</enum><header>Management
expenses</header><text>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.</text>
</subparagraph><subparagraph id="id5C62AB520C8C4B2FA25DE40C3E414159"><enum>(G)</enum><header>Definitions</header><text>In
this paragraph—</text>
<clause id="id5CD836B1EF254684B34C6B47D102DDFE"><enum>(i)</enum><text>the term
<term>combined capital</term> means the aggregate amount of private capital and
outstanding leverage;</text>
</clause><clause id="id49A6FB650AEF471F84E6DCDA26005C98"><enum>(ii)</enum><text>the term
<term>profit participation percentage</term> means 50 percent of the leverage
ratio, reduced by the weighted average interest rate on the financing
commitments issued by the company;</text>
</clause><clause id="idD84A56A52B7545889B22BD1EA38BDE97"><enum>(iii)</enum><text>the term
<term>leverage ratio</term> 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);</text>
</clause><clause id="id8C5C558A4EE047FC8EBF57182D46DEDF"><enum>(iv)</enum><text>the term
<term>management expenses</term> 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</text>
</clause><clause id="id944CE3A616C3449393D68B457FD4D56B"><enum>(v)</enum><text>the term
<term>outstanding leverageable capital</term> 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.</text>
</clause></subparagraph></paragraph><paragraph id="IDcf192f83769f41dea3b704aeaf1944e0"><enum>(17)</enum><header>Exceptions to
order of distributions</header>
<subparagraph id="id09A51CF1E730408299D0AD9E45179907"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph commented="no" id="IDf085191d7e4148f89b3b09f51de1e30a"><enum>(B)</enum><header>Tax
distributions</header>
<clause commented="no" id="idA19DAE500D784993A18E28B4AACB1CF9"><enum>(i)</enum><header>In
general</header><text>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—</text>
<subclause commented="no" id="ID9cc14e44f3314de79f8219d8f953a88e"><enum>(I)</enum><text>the licensed
company has an investment in a business (referred to in this subparagraph as
the <quote>portfolio company</quote>) organized as a limited liability company
(referred to in this subparagraph as an <quote>LLC</quote>) or as a
partnership;</text>
</subclause><subclause commented="no" id="ID40043568d7d74882a704e93e31650884"><enum>(II)</enum><text>the portfolio
company has income which will be taxable to its members or partners;</text>
</subclause><subclause commented="no" id="ID2472e52d2ee1428daf78ddae659e3b06"><enum>(III)</enum><text>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 <quote>tax distribution</quote>); or</text>
</subclause><subclause commented="no" id="IDaa70962b9a67459aa2cffe0a96ff531e"><enum>(IV)</enum><text>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.</text>
</subclause></clause><clause commented="no" id="idD4DD681FD939411E8CC2F82FFA342F42"><enum>(ii)</enum><header>Authority to
make distribution</header><text>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—</text>
<subclause commented="no" id="idFF0C7C41F37942BA8979233998082F1A"><enum>(I)</enum><text>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</text>
</subclause><subclause commented="no" id="id9B2E9356244B46C19A2F958BD702DE90"><enum>(II)</enum><text>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.</text>
</subclause></clause></subparagraph><subparagraph id="ID81bc19a829ce4b39b887a3b67778ef1a"><enum>(C)</enum><header>Expenses</header><text>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.</text>
</subparagraph><subparagraph id="IDd8a8a3daa4484bc5ba72c2ddbfdfe359"><enum>(D)</enum><header>Prepayment</header><text>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.</text>
</subparagraph></paragraph><paragraph id="IDca56eb6daf9d47ac86db612480b57d04"><enum>(18)</enum><header>Restrictions
on distributions</header>
<subparagraph id="IDd353e8c9aa1e423c9ac48eb41cd211a4"><enum>(A)</enum><header>Liquidity and
other administrative or state law restrictions</header><text>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.</text>
</subparagraph><subparagraph id="IDaa986342cfc0451b82984941b54157ff"><enum>(B)</enum><header>Capital
impairment or regulatory violation</header><text>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.</text>
</subparagraph></paragraph><paragraph id="IDf332c5066b3741d3800d182b187cc437"><enum>(19)</enum><header>Distributions
in-kind</header>
<subparagraph id="ID73f2996d508a469782576643cb075926"><enum>(A)</enum><header>Election of
in-kind distribution of securities</header>
<clause id="id52C223DFE4F84B199118CC27BC5EE8BC"><enum>(i)</enum><header>In
general</header><text>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 <quote>marketable securities</quote>).</text>
</clause><clause id="idEFB3E90A3C2E47F88710A4EBC6570A39"><enum>(ii)</enum><header>Gross
receipts</header><text>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.</text>
</clause></subparagraph><subparagraph id="IDbbdb6a0b6b3746ad8ec0775401b5b660"><enum>(B)</enum><header>Treatment of
administration share</header><text>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.</text>
</subparagraph><subparagraph id="ID582a191d91bd4bf3a047e6d2984ecd8c"><enum>(C)</enum><header>Retention of
administration share</header><text>If the company retains the Administration
share, it shall sell such share and promptly remit the proceeds to the
Administration.</text>
</subparagraph><subparagraph id="IDfc7e8d78e85844e381f34b5bfc974c6c"><enum>(D)</enum><header>Value of
administration’s share</header><text>For purposes of this paragraph—</text>
<clause id="IDbed0a75b0b5945ec8509e1e8dd160538"><enum>(i)</enum><text>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</text>
</clause><clause id="IDacbace6b437845d69eedd75dfaaa6292"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="ID2634c4dde87c40fcb69eda2df3afce4d"><enum>(20)</enum><header>Timing of
distributions</header>
<subparagraph id="ID30acdc4cd9ba4a379270c67f1e666b86"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="idF4817901D7694DBB8B8C169719839145"><enum>(B)</enum><header>Exceptions to
timing of distributions</header>
<clause id="id2758D0331A4040DEA5E82633CD15E124"><enum>(i)</enum><header>End of
quarter</header><text>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.</text>
</clause><clause id="ID7da842887ae2497c89ec4c3f903bb971"><enum>(ii)</enum><header>Marketable
securities</header><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="IDa668ab479c07416691f82909e75c5fc4"><enum>(21)</enum><header>Reinvestment
of gross receipts</header><text>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.</text>
</paragraph></subsection><subsection id="idF9F6C25350E14C49B06C88A44F13E5C9"><enum>(c)</enum><header>Maximum</header><text>Participating
debentures guaranteed under this section may not exceed 100 percent of the
regulatory capital of the licensed company, as determined by the
Administrator.</text>
</subsection><subsection id="ID05fb1e72bacf4bf5adaca304258c1b03"><enum>(d)</enum><header>Post-distribution
computation</header><text>After distributions have been made under this
section, the Administration share of such distributions shall not be reduced or
recomputed.</text>
</subsection><subsection id="IDf8278c6dc687438584afaefc6a38a983"><enum>(e)</enum><header>No ownership
interest to administration</header><text>This section shall not be construed as
creating in the Administration any ownership interest in any small business
investment company which issues participating debentures.</text>
</subsection><subsection id="IDb171b7b466ea4ac4b1d168e0955508e5"><enum>(f)</enum><header>Conflict with
other provisions</header>
<paragraph id="IDcec3dd3c270e4f6982829a3c349f8968"><enum>(1)</enum><header>In
general</header><text>In the event of a conflict between this subsection and
any other provision of this part, this subsection shall apply.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4d8a5cf20ad5430587bdf33e262f7136"><enum>(2)</enum><header>Specific
provisions</header><text>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.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id84BD3C9DC0C148E8BF1D3C83BF9E2370" section-type="subsequent-section"><enum>302.</enum><header>Participating
securities</header><text display-inline="no-display-inline">Section 20(a) of
the Small Business Act (15 U.S.C. 631 note) is amended—</text>
<paragraph id="id42D06C9ACCCB416A985E60C10A9DE014"><enum>(1)</enum><text>in paragraph (2),
by striking <quote>Subject to approval in appropriations Acts,</quote> and
inserting <quote>Except as provided in paragraph (5), and subject to approval
in appropriations Acts,</quote>; and</text>
</paragraph><paragraph id="id5F3F019A5BDE4E4EA181B58817B0BC11"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id22EB6ED826034DC283C0EE01B3330610" style="OLC">
<paragraph id="id97667F5040C442E98375238E08EC6C46" indent="up1"><enum>(5)</enum><header>Participating securities</header>
<subparagraph id="idB47528273639441089000929CFEE07A3"><enum>(A)</enum><header>Definitions</header><text>In this
paragraph—</text>
<clause id="idF0EF4B45EBB24699B2A8EC649C63DE49"><enum>(i)</enum><text>the term <term>applicable 60-day
period</term> means the 60-day period ending on the date on which the
commitment made by the Administrator for a covered participating security
expires;</text>
</clause><clause id="id455A610302974C28A149FF2E3A6CDA3C"><enum>(ii)</enum><text>the term <term>covered
participating security</term> means a participating security under title III of
the Small Business Investment Act of 1958—</text>
<subclause id="id12AE2137428B4A0D9E5567CA66F39EC6"><enum>(I)</enum><text>that was obligated in fiscal year 2002,
2003, or 2004, under a commitment made by the Administrator; and</text>
</subclause><subclause id="id14FEDC4066E046478DAF1F243E79846C"><enum>(II)</enum><text>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</text>
</subclause></clause><clause id="id7699C3245B5E4DBFA902AE4C13E6C5AD"><enum>(iii)</enum><text>the term <term>small business
investment company</term> has the same meaning as in section 103 of the Small
Business Investment Act of 1958.</text>
</clause></subparagraph><subparagraph id="idF330F908F0354FBB91C990AFB73EE239"><enum>(B)</enum><header>Disbursal of
funds</header><text>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.</text>
</subparagraph><subparagraph id="id7D1422A229D54343971E62B2A6F11BA8"><enum>(C)</enum><header>Conditions</header><text>A small
business investment company receiving funds under subparagraph (B)
shall—</text>
<clause id="id53D8EC6C1B2D423CAF1484DE08F32532"><enum>(i)</enum><text>be in compliance with all
regulations under title III of the Small Business Investment Act of 1958,
relating to small business investment companies;</text>
</clause><clause id="id515FB0E097E8470A977CEA50F6CB02FF"><enum>(ii)</enum><text>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</text>
</clause><clause id="id5896F7C8763A4F0DA10B03231180BC75"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="id6C3FECD64D38403384C7AD15F191D1D2"><enum>(D)</enum><header>Withdrawal of funds</header>
<clause id="id9FFB286A13584D92B20ED82E0E829890"><enum>(i)</enum><header>In general</header><text>Funds
deposited under subparagraph (C)(iii) may not be withdrawn without the prior
approval of the Administrator.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id9091406DC8D2490882864C4D03F93E04"><enum>(ii)</enum><header>Criteria</header><text>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.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="id6FDDA70366BB446FAF1726BD5C87B848"><enum>B</enum><header>Development
companies</header>
<section id="id88D6711333354394A30B4F0B511F2366"><enum>321.</enum><header>Development
company loan programs</header>
<subsection id="idC2997F32FB694B6BB3654DE6A633496A"><enum>(a)</enum><header>Title of
Program</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="idB717A7BD1E284F73AB326A4D245BB2F7" style="OLC">
<section id="idA572A99959F54167BBB0D92330B3B62A"><enum>511.</enum><header>Program
title</header>
<subsection id="idBF88CBE916E7448A9390B1B3079299FA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subsection (b), the programs authorized by this title shall be known
collectively as the <quote>Local Development Business Loan Program</quote>. The
Administrator may refer to such program as the <quote>504 Loan Program</quote>,
until such usage is no longer necessary.</text>
</subsection><subsection id="ID10d6f92d111f47389ad3168ae1f6d820"><enum>(b)</enum><header>Existing
name</header><text>Participants in the Local Development Business Loan Program
may continue to refer to such program as <quote>the 504 loan
program</quote>.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id805F14C1577243D9B6CDD88BD3DC366C"><enum>(b)</enum><header>Existing
Materials</header><text>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 <quote>Local
Development Business Loan Program</quote>.</text>
</subsection><subsection id="id1178C11092854844832444D219C634B3"><enum>(c)</enum><header>New
Materials</header><text>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 <quote>Local Development Business Loan Program</quote>,
except that informational materials may refer to such program as the <quote>504
Loan Program</quote>, until such usage is no longer necessary.</text>
</subsection></section><section id="ID799a6afbf8bc4c10a9bc6dc4d36ced26"><enum>322.</enum><header>Loan
liquidations</header><text display-inline="no-display-inline">Section 510 of
the Small Business Investment Act of 1958 (15 U.S.C. 697g) is amended—</text>
<paragraph id="id311A07F6CC1D485D8E73539DF7EDDFC6"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsection (e) as
subsection (g); and</text>
</paragraph><paragraph id="id35C0D3C1A9B14E57B1CC03BE3168878D"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subsection (d) the
following:</text>
<quoted-block display-inline="no-display-inline" id="idF0B291E4CE5145BFA72DB85EF646BFB0" style="OLC">
<subsection id="ID18103c336f864b06be5d4e2ec33f05a5"><enum>(e)</enum><header>Participation</header>
<paragraph id="ID424797b01b764f739c38a4c7f814e203"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID7b928de6babe4df5808cceebdf774c21"><enum>(2)</enum><header>Commencement</header><text>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).</text>
</paragraph></subsection><subsection id="ID24a61636d8c643e783a6bdb0bd31cc0b"><enum>(f)</enum><header>Compensation
and reimbursement</header>
<paragraph id="IDf5ff751fbf7c48359af1e077daa5e819"><enum>(1)</enum><header>Reimbursement
of expenses</header><text>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—</text>
<subparagraph id="ID01c4a77958ff4506a4b40fd4a2ae11bc"><enum>(A)</enum><text>were approved in
advance by the Administrator, either specifically or generally; or</text>
</subparagraph><subparagraph id="ID12be408acbaf47fbae7c3d0875f9fee3"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="ID2a00f11b24aa4ac1b5c56706e424fd03"><enum>(2)</enum><header>Compensation
for results</header>
<subparagraph id="idF83DACB3B6F9489BA68466FAC76B4036"><enum>(A)</enum><header>Development</header><text>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.</text>
</subparagraph><subparagraph id="idA4EC76E1E3FB4E279D96E5C41D1386BF"><enum>(B)</enum><header>Criteria</header><text>The
schedule required under this paragraph shall—</text>
<clause id="id64CF5DBADC074D579950F8974597EAA8"><enum>(i)</enum><text>be based on a
percentage of the net amount recovered, but shall not exceed a maximum amount;
and</text>
</clause><clause id="idAC91A614CC5B4006994BAC46B66DEE91"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDb814af69c7c44ce0b6dfcda19f095d5a"><enum>323.</enum><header>Additional
equity injections</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id14D86B43056045068AA4C44F078359E5" style="OLC">
<clause id="id65D9372BB14A4289B609A99458597EF0"><enum>(ii)</enum><header>Funding from
institutions</header><text>If a small business concern—</text>
<subclause id="id72AFA9763EDA4CE09A3F7CADA3FDB680"><enum>(I)</enum><text>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</text>
</subclause><subclause id="ID45031a6b7a804c0ca7802c3930be0d2f"><enum>(II)</enum><text>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.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDc6abdc2d2ea24a2b96af2e3a2da0f7ef"><enum>324.</enum><header>Businesses in
low-income areas</header><text display-inline="no-display-inline">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 <quote>business district
revitalization,</quote> the following: <quote>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,</quote>.</text>
</section><section id="ID11f6ef040cbb4498b07f4319b126f2f2"><enum>325.</enum><header>Combinations
of certain goals</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id8D8AF81C3465419DB1EC1A49ED985D26" style="OLC">
<paragraph id="IDedc3a6c958bb4805b4fe9da2f3d9870f"><enum>(7)</enum><text>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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID835d49032d4d4869972b347075531ba7"><enum>326.</enum><header>Maximum 504
and 7(<enum-in-header>a</enum-in-header>) loan eligibility</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idEC06F0BB856648C7AC8F65CCC8B598A2" style="OLC">
<subparagraph id="ID4a7888a9afc643fca80fd2fcb137bbed"><enum>(C)</enum><header>Combination
financing</header><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDe8d4dbde59c04c66a6b44eb4fe6a4105"><enum>327.</enum><header>Refinancing
under the Local Development Business Loan Program</header><text display-inline="no-display-inline">Section 502 of the Small Business Investment
Act of 1958 (15 U.S.C. 696) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idF0EF84FD1A2D4F5B9D6C12D35762CD53" style="OLC">
<paragraph id="ID9aee6eff7d3f4d889883fc2956f50d30"><enum>(7)</enum><header>Permissible
debt refinancing</header>
<subparagraph id="idBB91A0ADA37B44D399B1F42DCA90B644"><enum>(A)</enum><header>In
general</header><text>Any financing approved under this title may include a
limited amount of debt refinancing.</text>
</subparagraph><subparagraph id="idFEE4CB9156D54670B40D4DC6B03E0FC3"><enum>(B)</enum><header>Expansions</header><text>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 <fraction>1/2</fraction> of the project cost
of the expansion may be refinanced and added to the expansion cost, if—</text>
<clause id="IDe5b4a6fcbfea47a7b7b9dc6030b09548"><enum>(i)</enum><text>the proceeds of
the indebtedness were used to acquire land, including a building situated
thereon, to construct a building thereon, or to purchase equipment;</text>
</clause><clause id="IDf1a7d1ceb3d8449a807bcf151c664139"><enum>(ii)</enum><text>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</text>
</clause><clause id="IDf0f6c71b73144446a7bcd53f93ba9bff"><enum>(iii)</enum><text>the financing
under section 504 will provide better terms or rate of interest than exists on
the debt at the time of
refinancing.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID6f7ce2a7a2c442769c8d996346af3b50"><enum>328.</enum><header>Technical
correction</header><text display-inline="no-display-inline">Section 501(e)(2)
of the Small Business Investment Act of 1958 (15 U.S.C. 695(e)(2)) is amended
by striking <quote>outstanding</quote>.</text>
</section><section id="id36F34A115D2740FBBF852E418DAA5BC2"><enum>329.</enum><header>Definitions
for the Small Business Investment Act of 1958</header><text display-inline="no-display-inline">Section 103 of the Small Business Investment
Act of 1958 (15 U.S.C. 662) is amended—</text>
<paragraph id="idBED799A722014EE2B2946BCFEA65577C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (6) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="idCB4D997AC6A14D3AA16A50300964A207" style="OLC">
<paragraph id="IDaf94160d98b3420a9db5f3bf9d184fee"><enum>(6)</enum><text>the term
<term>development company</term> 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;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idCDAD582C83C34B1CAD09174FDE1F51FE"><enum>(2)</enum><text>in paragraph
(16), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="id5845961192084FC0B00479C9EB673E3B"><enum>(3)</enum><text>in paragraph
(17), by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="id1FC7035E4A46492F81EB6E07C8453925"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF2BB8F6337D944E78CA083B29347C0F0" style="OLC">
<paragraph id="idCE7691F8B4B3481D992DEB18F2453E79"><enum>(18)</enum><text>the term
<quote>certified development company</quote> means a development company that
the Administrator has certified meets the criteria of section
506.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID110003f3fea44e74bde806575a3b6423"><enum>330.</enum><header>Repeal of
sunset on reserve requirements for premier certified lenders</header><text display-inline="no-display-inline">Section 508(c)(6)(B) of the Small Business
Investment Act of 1958 (15 U.S.C. 697e(c)(6)(B)) is amended—</text>
<paragraph id="ID67ba5582ec764b1b9208d9e148f02c7f"><enum>(1)</enum><text>in the
subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">Temporary reduction</header-in-text></quote> and inserting
<quote><header-in-text level="subparagraph" style="OLC">Reduction</header-in-text></quote>; and</text>
</paragraph><paragraph id="IDb58f77e525504132883e4956a5700dac"><enum>(2)</enum><text>by striking
<quote>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</quote> and inserting <quote>The</quote>.</text>
</paragraph></section><section id="IDf8f1c4e6c2344391aad74d16fdf71193"><enum>331.</enum><header>Certified
development companies</header><text display-inline="no-display-inline">Section
506 of the Small Business Investment Act of 1958 (15 U.S.C. 697c) is
amended—</text>
<paragraph id="idCFCED524B174429CA0F50FDB0623F074"><enum>(1)</enum><text>in the section
heading, by striking <quote><header-in-text level="section" style="OLC">Restrictions on development company
assistance</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">Certified development
companies</header-in-text></quote>; and</text>
</paragraph><paragraph id="idB11EE93C8546496F868EBDD03D2DDDB1"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting before <quote>Notwithstanding
any other provision of law</quote> the following:</text>
<quoted-block display-inline="no-display-inline" id="id005FB5E02B594C87A783FD91886D6F30" style="OLC">
<subsection id="IDcbb55a3fe3944cf19e55b71708e4049f"><enum>(a)</enum><header>Authority To
issue debentures</header><text>A development company may issue debentures under
this title if the Administrator certifies that the company meets the following
criteria:</text>
<paragraph id="ID6574f18cc57f47698a8fabebef7ee2a6"><enum>(1)</enum><header>Size</header>
<subparagraph id="idF54649BBA6A2472FAA595D9C82708AD2"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="idB293C58F454B483DB4AA2781E44AC359"><enum>(B)</enum><header>Exception</header><text>Any
development company that was certified by the Administrator before December 31,
2005, may continue to issue debentures under this title.</text>
</subparagraph></paragraph><paragraph id="IDaea7d681329a49d7a8da304895c0e214"><enum>(2)</enum><header>Primary
purpose</header><text>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.</text>
</paragraph><paragraph id="ID8f7adc9a027e4193944978cfbaa34a6c"><enum>(3)</enum><header>Primary
function</header><text>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.</text>
</paragraph><paragraph id="ID6100d60361404e37afd8cd8d7b28b1ac"><enum>(4)</enum><header>Nonprofit
status</header>
<subparagraph id="id196E4CCE5BF94CC38565B736D6BC4F1E"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the development
company shall be a nonprofit corporation.</text>
</subparagraph><subparagraph id="idAF0D9B09DD744BE2A7FBB5C70C7940FD"><enum>(B)</enum><header>Exception</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID33043c25882e4934906a8ed532a6288a"><enum>(5)</enum><header>Good
standing</header><text>The development company—</text>
<subparagraph id="id1793C7938F2D4521B970ABE29BD76B8A"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="id6654860703AA47E0B9BD70813B4EE9D5"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="IDb4757b578afd4cab912bf3ca2e89cf19"><enum>(6)</enum><header>Membership of
development company</header><text>There shall be—</text>
<subparagraph id="id759E74E834114758BBD631C34037FF17"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="idFEE5B9CC68404186AD2324CCF1CD0C2A"><enum>(B)</enum><text>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:</text>
<clause id="ID6c7d60fbf11e47189918639cb980ca45"><enum>(i)</enum><text>Government
organizations that are responsible for economic development.</text>
</clause><clause id="ID9d42270f0fb34affbf8c40abeb2aaac3"><enum>(ii)</enum><text>Financial
institutions that provide commercial long-term fixed asset financing.</text>
</clause><clause id="IDe3b799ed5c6f47cda5062c199e435f99"><enum>(iii)</enum><text>Community
organizations that are dedicated to economic development.</text>
</clause><clause id="ID8726a4bb3073411cbc76026e3192e961"><enum>(iv)</enum><text>Businesses.</text>
</clause></subparagraph></paragraph><paragraph id="ID8e0d63ff95354b8c9ffcfef793545b35"><enum>(7)</enum><header>Board of
directors</header>
<subparagraph id="idCFE34BEE48CD4C8A94CEA01C5834C9D8"><enum>(A)</enum><header>In
general</header><text>The development company shall have a board of
directors.</text>
</subparagraph><subparagraph id="idBBC52DB7E942446EBEC2119E5A8D0351"><enum>(B)</enum><header>Members of
board</header><text>Each member of the board of directors shall be—</text>
<clause id="id4489FE4DAB694D7EAA5B968EF1AA38C9"><enum>(i)</enum><text>a
member of the development company; and</text>
</clause><clause id="id947B23095FF34FB7B438613D5062D1E0"><enum>(ii)</enum><text>elected by a
majority of the members of the development company.</text>
</clause></subparagraph><subparagraph id="IDbd6bb4963fcb4812b47db23f85949d2b"><enum>(C)</enum><header>Representation
of organizations and institutions</header>
<clause id="id3566FC7A75334BB2B421DE4AC2524372"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="id2E55F466FF0544B999BD17AA010953CC"><enum>(ii)</enum><header>Maximum
percentage</header><text>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).</text>
</clause></subparagraph><subparagraph id="ID8891cde30830484ba5d8e23fe1cc1b2e"><enum>(D)</enum><header>Meetings</header><text>The
board of directors of the development company shall meet on a regular basis to
make policy decisions for such company.</text>
</subparagraph></paragraph><paragraph id="IDe41f51e8182f436086bb6aaed2e172ac"><enum>(8)</enum><header>Professional
management and staff</header>
<subparagraph id="idCC59FBDCBD89447C8650AEBCE11D7651"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="id6BBE086265EA40F48002226C64A8CE78"><enum>(B)</enum><header>Independent
management and operation</header><text>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.</text>
</subparagraph></paragraph><paragraph id="IDc897ef6d97e3465ab397290ed0bf38d9"><enum>(9)</enum><header>Management and
operation exceptions</header>
<subparagraph id="id2C003626C3C84B938DB00D7E686A4BF6"><enum>(A)</enum><header>Affiliation</header><text>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.</text>
</subparagraph><subparagraph id="id31D5E6A45EDF4BAFB2A495A2CDC3FCCC"><enum>(B)</enum><header>Staffing</header><text>A
development company may satisfy the requirement for full-time professional
staff under paragraph (8)(A) by contracting for the required staffing
with—</text>
<clause id="id91031D61A6364267A300D9D09F1D8207"><enum>(i)</enum><text>a
local nonprofit service corporation;</text>
</clause><clause id="idDE3E0C47505144F3B8172CBF7382A482"><enum>(ii)</enum><text>a nonprofit
affiliate of a local nonprofit service corporation;</text>
</clause><clause id="id62E71C38F0B04C2EADF53042DD3A4F0B"><enum>(iii)</enum><text>an entity
wholly or partially operated by a governmental agency; or</text>
</clause><clause id="id80E567958DAA416C9D26380452ECD9F5"><enum>(iv)</enum><text>another entity
approved by the Administrator.</text>
</clause></subparagraph><subparagraph id="IDd092db29386145859e61c331a0695c59"><enum>(C)</enum><header>Directors</header><text>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.</text>
</subparagraph><subparagraph id="ID775fb561456545f48127de5618029e0f"><enum>(D)</enum><header>Rural
areas</header><text>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—</text>
<clause id="id458F795ACEEF4B0C8743146AF4C312FF"><enum>(i)</enum><text>has such staff
and management ability; and</text>
</clause><clause id="id27AC22708F3D4C07B3E11710757C9F48"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="IDb14179ed829f49a0a4047e1a786437b8"><enum>(E)</enum><header>Previously
certified</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="ID7af4457100be45afbadefbad4e9ae364"><enum>(b)</enum><header>Use of excess
funds</header><text>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—</text>
<paragraph id="id497A370FD6B443BAAD3064DCC2F0E188"><enum>(1)</enum><text>future
operations;</text>
</paragraph><paragraph id="id83DA6BF8D9E6400FA5EA355B0B765C30"><enum>(2)</enum><text>expanding the
area in which the certified development company operates through the methods
authorized by this Act; or</text>
</paragraph><paragraph id="id67054AB8688E4F64AEF3F94ABB1755A7"><enum>(3)</enum><text>investment in
other local economic development activity or community development in the State
from which such funds were generated.</text>
</paragraph></subsection><subsection id="IDb9a8efe7a922421b8e5d3201fe3cbad7"><enum>(c)</enum><header>Ethical
requirements</header>
<paragraph id="IDca7fffbe96ff41948a8b10ef6fec3284"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID58a0df389a754fb9a099b5123446239b"><enum>(2)</enum><header>Prohibited
conflict in project loans</header>
<subparagraph id="id0162C088022E4132BD8B7FFC50056888"><enum>(A)</enum><header>In
general</header><text>No certified development company may—</text>
<clause id="idA613DBAC12DD42CDB90A63A960945A86"><enum>(i)</enum><text>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</text>
</clause><clause id="id0228BD02D93F4CB19C80FD25BBBCCFDE"><enum>(ii)</enum><text>provide, or be
affiliated with a corporation or other entity which provides, financing
collateralized by a first lien on the same property.</text>
</clause></subparagraph><subparagraph id="id7E9D4B5F9A344353BECB47532E8CF128"><enum>(B)</enum><header>Exception</header><text>During
the 2-year period beginning on the date of enactment of the
<short-title>Small Business Reauthorization and
Improvements Act of 2006</short-title>, 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.</text>
</subparagraph></paragraph><paragraph id="ID504045266bfc4ff7a69d9fc022177249"><enum>(3)</enum><header>Other economic
development activities</header><text>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.</text>
</paragraph></subsection><subsection commented="no" id="idFF0EEC0BE3CF4B28BD1EDBA40A50B6F2"><enum>(d)</enum><header>Multistate
Operations</header>
<paragraph commented="no" id="idF8E937E48B4744AF8CC520B5BCEA7C18"><enum>(1)</enum><header>Authorization</header><text>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—</text>
<subparagraph id="H18B3A15B43EF46719DC20C33E77E2E6"><enum>(A)</enum><text>is—</text>
<clause id="H1B6A154AB25145F2A2E93772E57CA801"><enum>(i)</enum><text>an
accredited lender under section 507; or</text>
</clause><clause id="H1F4122661AD44211BF8B30BEC0086F1"><enum>(ii)</enum><text>a
premier certified lender under section 508;</text>
</clause></subparagraph><subparagraph commented="no" id="id878588ADF2B7432DB8CA90E27CDEAA9E"><enum>(B)</enum><text>has a membership
that contains, from each of the States in which it operates, not fewer than 25
members who reside in that State;</text>
</subparagraph><subparagraph commented="no" id="id54C69E2E7A034751B0DA792880B34135"><enum>(C)</enum><text>has a board of
directors that contains not fewer than 2 members from each State in which the
company makes loans;</text>
</subparagraph><subparagraph commented="no" id="id4FE1E40886164AAF8DD9D83D7C00C4B4"><enum>(D)</enum><text>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</text>
</subparagraph><subparagraph id="H01FC2F0B76F74F69A312DFD9348F094B"><enum>(E)</enum><text>submits to the
Administrator, in writing—</text>
<clause id="H52E6C20BAD2549F8A248FFE014185EF3"><enum>(i)</enum><text>a
notice of the intention of the company to make loans in multiple States;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H270B33A018D641E885625053E6369FE3"><enum>(ii)</enum><text>the names of the
States in which the company intends to make loans; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id2C401D6555114DF3A8049DF3753F8CEC"><enum>(iii)</enum><text>a detailed
statement of how the company will comply with this paragraph, including a list
of the members described in subparagraph (B).</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="id5D7E09F89FCB45788DA922F912671147"><enum>(2)</enum><header>Review</header><text>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.</text>
</paragraph><paragraph commented="no" id="idF2BB4E291FD44017855AA06F94E58442"><enum>(3)</enum><header>Loan committee
participation</header><text>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.</text>
</paragraph><paragraph commented="no" id="id4F0FDE5C88D5474F9001356FF4A492DB"><enum>(4)</enum><header>Aggregate
accounting</header><text>A company described in paragraph (1) may maintain an
aggregate accounting of all revenue and expenses of the company for purposes of
this title.</text>
</paragraph><paragraph id="ID438e76dd724c4ce9b9efc62c69211601"><enum>(5)</enum><header>Service to
certified development companies</header>
<subparagraph id="id2E280FFA4597432DA857BAE92E88AA12"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID6cd132edf12d4af7a6bc7f51ab9909de"><enum>(B)</enum><header>Exception</header>
<clause id="id128B3A2EF03143CB844C0C5A0DEAA34E"><enum>(i)</enum><header>In
general</header><text>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—</text>
<subclause id="ID7021e993f4694ed1987401ee3117bd0f"><enum>(I)</enum><text>such companies
are not located in the same State;</text>
</subclause><subclause id="ID76af2d0980d747c693e0770cae5eccd2"><enum>(II)</enum><text>each board of
directors determines that the service by such person on such board does not
constitute a conflict of interest; and</text>
</subclause><subclause id="ID8eac0e5a371d4c51adf2318cc1feb0bb"><enum>(III)</enum><text>there is not a
contractual relationship between—</text>
<item id="id955B3EDCA7CE454CA80644E8C1273EE6"><enum>(aa)</enum><text>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</text>
</item><item id="id4B7049256EA244258EAA2FC8FE0E9539"><enum>(bb)</enum><text>the certified
development companies of which such person is a member of the board of
directors.</text>
</item></subclause></clause><clause id="id7A1C1E45460E4F8BB2770823C39188A8"><enum>(ii)</enum><header>Maximum number
of members</header><text>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.</text>
</clause></subparagraph><subparagraph id="ID2f905255d4cb46e095c64251ccbb2c1c"><enum>(C)</enum><header>Definition</header><text>As
used in this paragraph, the term <term>associate of a certified development
company</term> has the meaning given the term <term>Associate of a CDC</term>
in section 120.10 of title 13, Code of Federal Regulations (or any
corresponding similar regulation or ruling).</text>
</subparagraph></paragraph><paragraph commented="no" id="id7EBA3CD2186840D5BE393E1580040FBB"><enum>(6)</enum><header>Local job
creation requirements</header><text>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.</text>
</paragraph><paragraph id="ID708005fd3e4c4a568f8c9ae77dd73bc9"><enum>(7)</enum><header>Contiguous
States</header><text>For purposes of this subsection, the States of Alaska and
Hawaii shall be deemed to be contiguous to any State abutting the Pacific
Ocean.</text>
</paragraph><paragraph id="IDe68514f8fd824252b7315e2ededd1765"><enum>(8)</enum><header>Local economic
area requirement and exemption</header>
<subparagraph id="idE9F6311D157E40A48CA7EB7DDAD62A66"><enum>(A)</enum><header>Definition</header><text>In
this paragraph, the term <term>local economic area</term> means an area, as
determined by the Administrator, that—</text>
<clause id="ID94de831e541b4b0c8bea5fb8de60223a"><enum>(i)</enum><text>is in a State
other than the State in which a development company is incorporated;</text>
</clause><clause id="ID13a5b091465e4d829f22c42b3796299e"><enum>(ii)</enum><text>shares a border
with the area of operations of the development company; and</text>
</clause><clause id="IDeef9d590a44a488ba197511334a4bd5d"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="IDafd64b406ef34e018131fec8bae5dcc5"><enum>(B)</enum><header>Exemption</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="id4F40B0C1E989455C8D79D3D65246BB76"><enum>(e)</enum><header>Restrictions on
development company
assistance</header>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDcb0b8f2ff528464d9db7223d6cfd9cac"><enum>332.</enum><header>Conforming
amendments</header><text display-inline="no-display-inline">Section 503 of the
Small Business Investment Act of 1958 (15 U.S.C. 697) is amended—</text>
<paragraph id="ID17d1e4c4d5a84f5f8a05f3f5688faaec"><enum>(1)</enum><text>in subsection
(a)(1), by striking <quote>qualified State or local development company</quote>
and inserting <quote>certified development company</quote>; and</text>
</paragraph><paragraph id="ID9891c4ce431a4fdeb0d9639ce76d2417"><enum>(2)</enum><text>by striking
subsection (e) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id19363A7820E7486094FDEDCBB65C13F4" style="OLC">
<subsection id="ID3260575575c84e42832cc11de0053009"><enum>(e)</enum><header>Section
7<enum-in-header>(a)</enum-in-header> loans</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDdf749d4b16a04dd9bf5a9dd920cc59bd"><enum>333.</enum><header>Closing
costs</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id564ED20E014F432AB32F0FF3E4C77D58" style="OLC">
<paragraph id="ID2e1fb89945db4e1a890f1b4a8784b1c5"><enum>(4)</enum><text>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;</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID9d9242f1260d45e48fb21d44cc3531ca"><enum>334.</enum><header>Definition of
rural</header><text display-inline="no-display-inline">Section 501 of the Small
Business Investment Act of 1958 (15 U.S.C. 695) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="id4E4D5441B73542639CCE8FBA244F97EB" style="OLC">
<subsection id="IDf6098b963fc240cc8eb80378620ff80e"><enum>(f)</enum><text>As used in this
title, the term <quote>rural</quote> includes any area that is not—</text>
<paragraph id="id103B83FB83DF4292BE15EC85E1D579FB"><enum>(1)</enum><text>a city or town
that has a population greater than 50,000 inhabitants; or</text>
</paragraph><paragraph id="id1C9C60EEF0F34D2FA88556730885C8A9"><enum>(2)</enum><text>the urbanized
area contiguous and adjacent to a city or town described in paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID59dcffcd4d6c4428a1b6e1d693a7aed3"><enum>335.</enum><header>Regulations
and effective date</header>
<subsection id="idB597A753D5114C14AF72AB82911A325E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subsection (b), the Administrator shall—</text>
<paragraph id="id5C7F787B8F19429B855D21FBEA086B8D"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2E46EBC67C5D4CA08B3E64994D997C65"><enum>(2)</enum><text display-inline="yes-display-inline">publish such rules in final form not later
than 120 days after the date of publication under paragraph (1).</text>
</paragraph></subsection><subsection id="id0C32D62AA5B846738E018ECFDCBB978B"><enum>(b)</enum><header>Multistate
operations</header><text>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.</text>
</subsection><subsection id="idBC56DF83DF1C4CB4B891C101246FE1B9"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="id48003B11A42C4B91B8D14B7A32220733"><enum>(1)</enum><header>In
general</header><text>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).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id05384B7C2B1843EC917C6E5EA9842462"><enum>(2)</enum><header>Multistate
operations</header><text>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).</text>
</paragraph></subsection></section><section id="HF595AAEAD2224F3DB4D1B008716AFB3"><enum>336.</enum><header>Low-income
geographic areas</header>
<subsection id="H86588257C65B4AB29595DC3B8CE7004"><enum>(a)</enum><header>Modification of
definition of low-income geographic area for purposes of New Markets Venture
Capital Program</header>
<paragraph id="HD9663DA8DFD94E34B4DEE9C2C0A8B8F9"><enum>(1)</enum><header>In
general</header><text>Section 351 of the Small Business Investment Act of 1958
(15 U.S.C. 689) is amended—</text>
<subparagraph id="idEDA367EFFBC44E69A546019A4ECF200E"><enum>(A)</enum><text>by striking
paragraph (2);</text>
</subparagraph><subparagraph id="id9E72093AAF1A45BCACF280FF8F337444"><enum>(B)</enum><text>in paragraph (3),
by striking <quote>(3)</quote> and all that follows through the end of
subparagraph (A) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idA69BCA066ED741279A630D1B5662869F" style="OLC">
<paragraph id="id715DA427A71E47E991DAD31D3D2F8508"><enum>(2)</enum><header>Low-income
geographic area</header><text>The term <term>low-income geographic area</term>
means—</text>
<subparagraph id="idC6DD3340BCAA4FE296CCFA212556C863"><enum>(A)</enum><text>any
<term>low-income community</term>, as that term is defined in section 45D of
the Internal Revenue Code of 1986 (relating to the new markets tax credit);
and</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id3D6C31332A0B416F98A0AA96F86DF6A9"><enum>(C)</enum><text>by redesignating
paragraphs (4) through (8) as paragraphs (3) through (7), respectively.</text>
</subparagraph></paragraph><paragraph id="HF85761FA31094DFEA9AD1EE7B3F7CC72"><enum>(2)</enum><header>Retroactive
application of amended definition to capital requirement</header><text>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.</text>
</paragraph></subsection><subsection id="H1D5ADB2364B14F98B34CD035FE54E23"><enum>(b)</enum><header>Study on
availability of equity capital</header>
<paragraph id="HEE4BBAEE8C3E48D3AFDC3D4337F9BA10"><enum>(1)</enum><header>Study
required</header><text>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.</text>
</paragraph><paragraph id="H7DA2EF13DA604E46B57CF85B8B251CB"><enum>(2)</enum><header>Report</header><text>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.</text>
</paragraph></subsection></section><section id="H37DF8D7CE4BA43A9AF14057C65DA5C92"><enum>337.</enum><header>Limitation on
time for final approval of companies</header><text display-inline="no-display-inline">Section 354(d) of the Small Business
Investment Act of 1958 (15 U.S.C. 689c(d)) is amended by striking <quote>a
period of time, not to exceed 2 years,</quote> and inserting <quote>2
years</quote>.</text>
</section></subtitle><enum>IV</enum><header>Disaster
response</header>
<subtitle id="idF9342350C9CE4E2FB37CA871A8FE13B9"><enum>A</enum><header>Private disaster
loans</header>
<section id="id8795EA0863AB4501BB122B28C255A18B"><enum>401.</enum><header>Private
disaster loans</header>
<subsection id="id280BEEB40FD34D9D996E89CC28EF3B6F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 7 of the
Small Business Act (15 U.S.C. 636) is amended—</text>
<paragraph id="id5A444AC8C8984D3D82DD4FD1B8121BA3"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and</text>
</paragraph><paragraph id="idBC34882C46F04E11A913964D2D92F0CC"><enum>(2)</enum><text>by inserting
after subsection (b) the following:</text>
<quoted-block display-inline="no-display-inline" id="id668406B506034FA09854C599FD0EFA50" style="OLC">
<subsection id="id54C11ED446F94B76AD685D461B38DD0A"><enum>(c)</enum><header>Private
disaster loans</header>
<paragraph id="id3E315AA69EA34C0D9B62C57A08EC481E"><enum>(1)</enum><header>Definitions</header><text>In
this subsection—</text>
<subparagraph id="id5F4F6D7A4E6E460D929073F59C939832"><enum>(A)</enum><text>the term
<term>disaster area</term> means a county, parish, or similar unit of general
local government in which a disaster was declared under subsection (b);</text>
</subparagraph><subparagraph id="idCD5473989FE14EB2AD5A79002F117BA4"><enum>(B)</enum><text>the term
<term>eligible small business concern</term> means a business concern that
is—</text>
<clause id="id362F6F490AC04EE6870B1C7A4DC3776A"><enum>(i)</enum><text>is a small
business concern, as defined in this Act; or</text>
</clause><clause id="id19AA4395460441AB8DFE860024BBD051"><enum>(ii)</enum><text>is a small
business concern, as defined in section 103 of the Small Business Investment
Act of 1958; and</text>
</clause></subparagraph><subparagraph id="idE3BC8BC6D919414CAA468E86B8966571"><enum>(C)</enum><text>the term
<term>qualified private lender</term> means any privately-owned bank or other
lending institution that the Administrator determines meets the criteria
established under paragraph (10).</text>
</subparagraph></paragraph><paragraph id="id856C3F51A2E74E0A86F6E0351EFAA2E0"><enum>(2)</enum><header>Authorization</header><text>The
Administrator may guarantee timely payment of all principal and interest as
scheduled on any loan issued—</text>
<subparagraph id="id2F827C38B55049AABDA771E57735726B"><enum>(A)</enum><text>by a qualified
private lender to an eligible small business concern located in a disaster
area; and</text>
</subparagraph><subparagraph id="id9855F7A70C6F4CCA980C90B6CB8F52B3"><enum>(B)</enum><text>during the
24-month period beginning on the date on which the disaster area is
designated.</text>
</subparagraph></paragraph><paragraph id="id01029DAE01E4419AA62467343E937C01"><enum>(3)</enum><header>Use of
loans</header><text>A loan guaranteed by the Administrator under this
subsection may be used for—</text>
<subparagraph id="idEF8A559B8D3249F89FDA8C45EBEB767B"><enum>(A)</enum><text>any purpose
authorized under subsection (a) or (b); and</text>
</subparagraph><subparagraph id="id1FEE9E0D57C5459192ECE4DA17C101B3"><enum>(B)</enum><text>acquiring or
developing real estate for the purpose of selling or renting such real
estate.</text>
</subparagraph></paragraph><paragraph id="idC781DA364631481583D2D72C45DE856C"><enum>(4)</enum><header>Online
applications</header>
<subparagraph id="idA65E895CEC76423C965D65249AB866D3"><enum>(A)</enum><header>In
general</header>
<clause id="idA8037C5E0C374E1390CA19306A72BEEB"><enum>(i)</enum><header>Establishment</header><text>The
Administrator may establish, directly or through an agreement with another
entity, an online application process for loans guaranteed under this
subsection.</text>
</clause><clause id="id23C1E32C0DEE4B3B8327D8E0308C4FDA"><enum>(ii)</enum><header>Other Federal
assistance</header><text>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.</text>
</clause></subparagraph><subparagraph id="idE9E937AC4F2841709945C3D7BD411281"><enum>(B)</enum><header>Contents</header>
<clause id="id37BF981C9C2E4F1083A4D1FD7FE81979"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="idD2C883BF142445FB9C269455F43175FD"><enum>(ii)</enum><header>Offers for
loans</header>
<subclause id="id9C88154F0D6A428DACB907622993A237"><enum>(I)</enum><header>In
general</header><text>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.</text>
</subclause><subclause id="idE4D42D7D12E94D3F962FB14886196B5A"><enum>(II)</enum><header>Process</header><text>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.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="id840CD5E6B53F46898B7BC5E1CC71BEFF"><enum>(5)</enum><header>Refinancing</header><text>A
loan guaranteed under this subsection may be used to refinance any debt under
this Act or the Small Business Investment Act of 1958.</text>
</paragraph><paragraph id="id9EF6AE5ABC1449619357A551FA43F327"><enum>(6)</enum><header>Maximum
amounts</header>
<subparagraph id="id2816E5B2162A4823B8B0E4DE75F9D20E"><enum>(A)</enum><header>Guarantee
percentage</header><text>The Administrator may guarantee not more than 85
percent of a loan under this subsection.</text>
</subparagraph><subparagraph id="id239051C7A538465098DD0E38A55AAA45"><enum>(B)</enum><header>Loan
amounts</header><text>The maximum amount of a loan guaranteed under this
subsection shall be $3,000,000.</text>
</subparagraph></paragraph><paragraph id="id49056C67C14F40498B4063A67CD712B3"><enum>(7)</enum><header>Loan
term</header><text>The longest term of a loan for a loan guaranteed under this
subsection shall be—</text>
<subparagraph id="idCEB2914FFB48455785CF3182F3F9BF21"><enum>(A)</enum><text>15 years for any
loan that is issued without collateral; and</text>
</subparagraph><subparagraph id="id9B56FDE617524397A0039F4DB6A57FC1"><enum>(B)</enum><text>25 years for any
loan that is issued with collateral.</text>
</subparagraph></paragraph><paragraph id="idE63C43FCF8C74363BA057D36B00ED209"><enum>(8)</enum><header>Fees</header>
<subparagraph id="idCD966FA7C81A489EAADEB37F454FB41E"><enum>(A)</enum><header>In
general</header><text>The Administrator may not collect a guarantee fee under
this subsection.</text>
</subparagraph><subparagraph id="idA60D75158252493F94FFDF46D1B3AFED"><enum>(B)</enum><header>Origination
fee</header><text>The Administrator shall pay a qualified private lender an
origination fee for a loan guaranteed under this subsection equal to
<fraction>15/100</fraction> of 1 percent of the amount of the loan.</text>
</subparagraph></paragraph><paragraph id="id1103FA44CE0647F0965BD31791DC2683"><enum>(9)</enum><header>Documentation</header><text>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).</text>
</paragraph><paragraph id="id4C1DB0F251BA4DCA8EDE1DAC973AC260"><enum>(10)</enum><header>Implementation</header>
<subparagraph id="id8CCCF9C81ADE4C57AC775078E784BA41"><enum>(A)</enum><header>In
general</header><text>Not later than 30 days after the date of enactment of the
<short-title>Small Business Reauthorization and
Improvements Act of 2006</short-title>, the Administrator shall—</text>
<clause id="idC88A76BE9FBD4269B2961970734B1D3C"><enum>(i)</enum><text>establish interim
criteria for qualified private lenders; and</text>
</clause><clause id="id90A165DBCE0342D9B6846C29D73D954A"><enum>(ii)</enum><text>begin accepting
applications from banks and lending institutions.</text>
</clause></subparagraph><subparagraph id="idBA8E48E6011745309319F22B4F086938"><enum>(B)</enum><header>Regulations</header>
<clause id="id6D3EF02FB1714408B6D94C4A401A73ED"><enum>(i)</enum><header>In
general</header><text>Not later than 90 days after the date of enactment of the
<short-title>Small Business Reauthorization and
Improvements Act of 2006</short-title>, the Administrator shall promulgate
regulations establishing permanent criteria for qualified private
lenders.</text>
</clause><clause id="idC69565B2B2C941BB99E592C982D0E0C0"><enum>(ii)</enum><header>Existing
qualified private lenders</header><text>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).</text>
</clause></subparagraph></paragraph><paragraph id="id45E5D6642C8C44F0BECFA23440544276"><enum>(11)</enum><header>Other
assistance</header><text>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.</text>
</paragraph><paragraph id="id4453F58543024DAA817E761D80C581EF"><enum>(12)</enum><header>Authorization
of appropriations</header>
<subparagraph id="id6FFBA4B5322E4C9AB74E8752CA452346"><enum>(A)</enum><header>In
general</header><text>Amounts necessary to carry out this subsection shall be
made available from amounts appropriated to the Administration under subsection
(b).</text>
</subparagraph><subparagraph id="idDFEA9430DA7647DE8D21EB84B13C965F"><enum>(B)</enum><header>Authority to
reduce interest rates</header><text>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.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id7707EEFAA483424EA8789B57054927E8"><enum>(b)</enum><header>Effective
date</header>
<paragraph id="id8A7C61943AC246B3AB157D85470506DC"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9BA0092F792E4B5FA529C7FDC364BB4F"><enum>(2)</enum><header>Construction</header><text>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.</text>
</paragraph></subsection></section><section id="idB10FFC72124E45B89C647B819036758D"><enum>402.</enum><header>Technical and
conforming amendments</header><text display-inline="no-display-inline">The
Small Business Act (15 U.S.C. 631 et seq.) is amended—</text>
<paragraph id="id356543F19BF1496EBA6AACE52DE8707D"><enum>(1)</enum><text>in section
4(c)—</text>
<subparagraph id="id56DBCA3ED8194B0DAF01AD5299A59D65"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>7(c)(2)</quote> and inserting <quote>7(d)(2)</quote>;
and</text>
</subparagraph><subparagraph id="id5A5CC2A4A3E141B0B51DE3F8DC0BAD20"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="idA200091627014B268CE7CCB6FAA335F1"><enum>(i)</enum><text>by
striking <quote>7(c)(2)</quote> and inserting <quote>7(d)(2)</quote>;
and</text>
</clause><clause id="idFF128F8115C54FF2A33FF7E22242C2D8"><enum>(ii)</enum><text>by
striking <quote>7(e),</quote>; and</text>
</clause></subparagraph></paragraph><paragraph id="id0513C0D1D447416DADC369C0FFDAE533"><enum>(2)</enum><text>in section 7(b),
in the undesignated matter following paragraph (3)—</text>
<subparagraph id="id9AEDD3F3568747F7B0146762461E0AA7"><enum>(A)</enum><text>by striking
<quote>That the provisions of paragraph (1) of subsection (c)</quote> and
inserting <quote>That the provisions of paragraph (1) of subsection
(d)</quote>; and</text>
</subparagraph><subparagraph id="id83EA69CD4EFB4533BCBE3B545C7F0BDB"><enum>(B)</enum><text>by striking
<quote>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),</quote> and inserting <quote>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)</quote>.</text>
</subparagraph></paragraph></section></subtitle><subtitle id="idFA31AB103A6B4570A06003B642E327B2"><enum>B</enum><header>Disaster relief
and reconstruction</header>
<section id="ID9F967EBE2C2840CD81712581D95B0D81"><enum>421.</enum><header>Definition of
disaster area</header><text display-inline="no-display-inline">In this
subtitle, the term <term>disaster area</term> 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.</text>
</section><section id="idF19CD0A023CB4AFAA58CD2AAACCAB717"><enum>422.</enum><header>Disaster loans
to nonprofits</header><text display-inline="no-display-inline">Section 7(b) of
the <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C.
636(b)) is amended by inserting immediately after paragraph (3) the
following:</text>
<quoted-block display-inline="no-display-inline" id="idFD78B5A97D8749A1BC47E359D4BAD511" style="OLC">
<paragraph id="idA8EFBF9684BB4B36856F4075A0ACA7F4"><enum>(4)</enum><header>Loans to
nonprofits</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id5F944D8E71C748978EDBD83FCEC9BCF6"><enum>423.</enum><header>Disaster loan
amounts</header>
<subsection id="id490F03CD89F9417ABB1989FFA30DEE9C"><enum>(a)</enum><header>Increased loan
caps</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="idA6BE56D98CC14B67AB07B76DD3915C6C" style="OLC">
<paragraph id="idD0C758E7597F4FE69DBBEDE3174AB7A2"><enum>(5)</enum><header>Increased loan
caps</header>
<subparagraph id="idB6CECC08DCD5492F8425A6DFFEF2094B"><enum>(A)</enum><header>Aggregate loan
amounts</header><text>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.</text>
</subparagraph><subparagraph id="idC6A71643D21443F4873388E1068F65DD"><enum>(B)</enum><header>Waiver
authority</header><text>The Administrator may, at the discretion of the
Administrator, waive the aggregate loan amount established under clause
(i).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id8573E61AB4864CCD83FB0D12CF096B29"><enum>(b)</enum><header>Disaster
mitigation</header>
<paragraph id="id11363B1C67884570A96766FC0C4DB7CA"><enum>(1)</enum><header>In
general</header><text>Section 7(b)(1)(A) of the Small Business Act (15 U.S.C.
636(b)(1)(A)) is amended by inserting <quote>of the aggregate costs of such
damage or destruction (whether or not compensated for by insurance or
otherwise)</quote> after <quote>20 per centum</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H59C787AD633F40BE8058A209DD53FDF6"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by paragraph (1) shall apply with respect
to a loan or guarantee made after the date of enactment of this Act.</text>
</paragraph></subsection><subsection id="H6A7E53BF8A32481E844036EDDC654857"><enum>(c)</enum><header>Technical
amendments</header><text>Section 7(b) of the Small Business Act (15 U.S.C.
636(b)) is amended—</text>
<paragraph id="HD1D1198ADAED49BDB46B74F3C55EF0D3"><enum>(1)</enum><text>in the matter
preceding paragraph (1), by striking <quote>the, Administration</quote> and
inserting <quote>the Administration</quote>;</text>
</paragraph><paragraph id="H6A65EA8A60824B68B18658BEE8C8AA26"><enum>(2)</enum><text>in paragraph
(2)(A), by striking <quote>Disaster Relief and Emergency Assistance Act</quote>
and inserting <quote>Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.)</quote>; and</text>
</paragraph><paragraph id="ID50A58EAF5E794CF88C363DE72F45A06C"><enum>(3)</enum><text>in the
undesignated matter at the end—</text>
<subparagraph id="IDBAE0B761FB7B4544A020D4FB5A57FEA1"><enum>(A)</enum><text>by striking
<quote>, (2), and (4)</quote> and inserting <quote>and (2)</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDE8A2E2BF95A64CF8831929315D731D7A"><enum>(B)</enum><text>by striking
<quote>, (2), or (4)</quote> and inserting <quote>(2)</quote>.</text>
</subparagraph></paragraph></subsection></section><section id="ID7f0bf2342084419babbf4502fe2e96a6"><enum>424.</enum><header>Small business
development center portability grants</header><text display-inline="no-display-inline">Section 21(a)(4)(C)(viii) of the Small
Business Act (15 U.S.C. 648(a)(4)(C)(viii)) is amended—</text>
<paragraph id="id436D3A080800444E9004882763486164"><enum>(1)</enum><text display-inline="yes-display-inline">in the first sentence, by striking
<quote>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</quote>
and inserting <quote>due to events that have resulted or will result in,
business or government facility downsizing or closing</quote>; and</text>
</paragraph><paragraph id="id5416901C7AE54C83947B336878E34409"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end <quote>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.</quote>.</text>
</paragraph></section><section id="ID4da654d9192f493da41ddf5776036327"><enum>425.</enum><header>Assistance to
out-of-State businesses</header><text display-inline="no-display-inline">Section 21(b)(3) of the Small Business Act
(15 U.S.C. 648(b)(3)) is amended—</text>
<paragraph id="id7A5C95561EBE458EB78BD161DC2098AB"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>At the
discretion</quote> and inserting the following: “<header-in-text level="paragraph" style="OLC">Small business development
centers.—</header-in-text></text>
<quoted-block display-inline="no-display-inline" id="id55AF25E4990A4F69B1CDE31D09C1AF91" style="OLC">
<subparagraph id="id8B538E1D10B24517A98AA18652F5F207"><enum>(A)</enum><header>In
general</header><text>At the discretion</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idD618E973C5CF485890E198A596A6285C"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id5D446BB690D949BF9F25D088492D4C0B" style="OLC">
<subparagraph id="idB126A383767B4D62A94458AE11A2E95E"><enum>(B)</enum><header>During
disasters</header>
<clause id="id1079B511F91049FF9071CD6AE9878262"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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).</text>
</clause><clause id="idC90D333E1B554A519B71CAFFF0DCF991"><enum>(ii)</enum><header>Continuity of
services</header><text display-inline="yes-display-inline">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.</text>
</clause><clause id="ID716a667d908e41b2997361dce5e11f3b"><enum>(iii)</enum><header>Access to
disaster recovery facilities</header><text>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.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id67704CE4B1964F2F94C475ECE378D0C6"><enum>426.</enum><header>Outreach
programs</header>
<subsection id="idFA9CBD969A184BBFAA3E1D27657F9E8C"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="id11D0E91FE6794143A70D0F0BF7542BEB"><enum>(b)</enum><header>Administrator
action</header><text>The Administrator may fulfill the requirement of
subsection (a) by acting through—</text>
<paragraph id="idFD092EEEF1484A49A345EEF6BB63AEA5"><enum>(1)</enum><text>the
Administration;</text>
</paragraph><paragraph id="IDcd095a3bf178418f9cbb1ad97ce0013a"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="ID6f5e2ac971d64d2895073dc48eb79649"><enum>(3)</enum><text>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.</text>
</paragraph></subsection></section><section id="idD35BB932EFD84E42A1212A3372DB744B"><enum>427.</enum><header>Small business
bonding threshold</header>
<subsection commented="no" display-inline="no-display-inline" id="id844423A61FC84692BF9958D39970E652"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCE0E69718CD5405BA434C7CE5839D560"><enum>(b)</enum><header>Increase of
amount</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="idFD712DAE96F14FC785795E2EB7132933"><enum>428.</enum><header>Small business
participation</header><text display-inline="no-display-inline">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.</text>
</section><section commented="no" display-inline="no-display-inline" id="idD0BFC726E99B497C8FE719F4A5CE2526"><enum>429.</enum><header>Emergency
procurement authority</header>
<subsection id="ID17604058EAAF4FCD9E34464DFAF8D013"><enum>(a)</enum><header>Small Business
Reservation Offset</header><text>Section 15(j) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 644(j))
is amended by adding at the end the following:</text>
<quoted-block act-name="Small Business Act" id="ID4CDA843F7F1B4D01B636A96186566454" style="OLC">
<paragraph id="ID0D31D1DF60984CAA821DA1F366AE129D" indent="up1"><enum>(4)</enum><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID55A4FBBA47E94630BA87E2A0388A5825"><enum>(b)</enum><header>Retention of
Small Business Subcontracting</header><text>Section 8(d)(4)(D) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C.
637(d)(4)(D)) is amended—</text>
<paragraph id="ID6985E7CD9A1A4714A938A949A64F6093"><enum>(1)</enum><text>by striking
<quote>(D) No contract</quote> and inserting the following:</text>
<quoted-block id="ID48673DDEDC6F42BAB9B3002E453A6387" style="OLC">
<subparagraph id="ID07C77686D8EF49DD9F26BFC742213E46" indent="up1"><enum>(D)</enum><header>Small business
participation</header>
<clause id="IDBB71F36395D84E168E2D0E8AE734AF24"><enum>(i)</enum><header>In general</header><text>No
contract</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID7A781F17314746DF8687CC0A91B176CD"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA32BF5B07B0B4710A2117DB93421E937" style="OLC">
<clause id="ID3F8BB700CCB648E79944BDA84AA0EA3F" indent="up1"><enum>(ii)</enum><header>Emergency procurements</header>
<subclause id="ID374A745B762C420999BCC5D9DD008D97"><enum>(I)</enum><header>In general</header><text>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.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID12BE1AD590EE448786836BB78D4E07B6"><enum>(II)</enum><header>Payment</header><text>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.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="IDbbe9548b3a864c6fa9effca39d214afb" section-type="subsequent-section"><enum>430.</enum><header>Paperwork
reciprocity for small disaster contractors</header><text display-inline="no-display-inline">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.</text>
</section><section commented="no" display-inline="no-display-inline" id="ID4be94a856ca546f2bf2eb0a1cbe23d07" section-type="subsequent-section"><enum>431.</enum><header>Small business
multiple award disaster contracts</header>
<subsection commented="no" display-inline="no-display-inline" id="IDc9999197d38445ef9605502fa5ca5f10"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDbba4e84f18f84adeae21ba4a1c0c47f1"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idF8D4529834644BE4BF1FC0C45D3FB3C2" section-type="subsequent-section"><enum>432.</enum><header>Contracting priority
for local small businesses</header><text display-inline="no-display-inline">Section 15(d) of the Small Business Act (15
U.S.C. 644(d)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id79E12F47308B41749F0628C661B5E1C1"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>(d) For purposes</quote>
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id71113D8706ED4B1F8C0ED0F30BDE53BE" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id1FFA3F81C2AE42BE99E3E742782157BD"><enum>(d)</enum><header>Contracting
priorities</header>
<paragraph commented="no" display-inline="no-display-inline" id="id98DEF95474C64D8E95FBBBF6B84D23D8"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For
purposes</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id15963BB2CD75433085374FB5FB0DA315"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idDEB7D989B16E45D28143AF34CF4F2ECA" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id8111AB038E674C3BBF8FD9B346321108"><enum>(2)</enum><header>Disaster
contracting priority in general</header><text display-inline="yes-display-inline">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).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9f7fe1c39dc24e59a1b2b37a15ee0513"><enum>(3)</enum><header>Local small
businesses</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDb1c5a642adfb4272953f2bcdf7726a15"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<clause commented="no" display-inline="no-display-inline" id="ID5a5c53669b3246b488dc58276a159ed4"><enum>(i)</enum><text display-inline="yes-display-inline">preferential factors in evaluations of
contract bids and proposals;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDd24fc80ac9f6412caf0e29ab672a8368"><enum>(ii)</enum><text display-inline="yes-display-inline">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;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDc77b7032258942f59b5aff570a30ca32"><enum>(iii)</enum><text display-inline="yes-display-inline">requirements of preference for local small
business concerns in subcontracting plans; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID512b8072ef28423f88de82b44c2a2c60"><enum>(iv)</enum><text display-inline="yes-display-inline">assessments of liquidated damages and other
contractual penalties, including contract termination.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID241667e1a1a949d3a799daa46b67991d"><enum>(B)</enum><header>Other disaster
assistance</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE9212F5AC9474D28B3C430FD06FF5565"><enum>(4)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id5B11D37AD56D432EAA38DEB764C805BB"><enum>(A)</enum><text display-inline="yes-display-inline">the term <term>declared disaster</term>
means a disaster, as designated by the Administrator;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8F814B27047949369BB696E17B98763F"><enum>(B)</enum><text display-inline="yes-display-inline">the term <term>disaster area</term> means
any State or area affected by a declared disaster, as determined by the
Administrator;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id85E7FEC04DF24CA89B5727412A0B85BF"><enum>(C)</enum><text display-inline="yes-display-inline">the term <term>executive agency</term> has
the same meaning as in section 105 of title 5, United States Code; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC009AC9A76B64C08A2FEBC51F9A28643"><enum>(D)</enum><text display-inline="yes-display-inline">the term <term>local small business
concern</term> means a small business concern that—</text>
<clause commented="no" display-inline="no-display-inline" id="idCD57F213C4134BDD9457840E5B2275DF"><enum>(i)</enum><text display-inline="yes-display-inline">on the date immediately preceding the date
on which a declared disaster occurred—</text>
<subclause commented="no" display-inline="no-display-inline" id="id75CDD3E2837A4B6BBA83DD886B400FCE"><enum>(I)</enum><text display-inline="yes-display-inline">had a principal office in the disaster area
for such declared disaster; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id9AB2DF7437B24C8AA2D9C50EB2EEE176"><enum>(II)</enum><text display-inline="yes-display-inline">employed a majority of the workforce of
such small business concern in the disaster area for such declared disaster;
and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="idB191D5D1A8C341D5AE2657D1D6860529"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id6D529AD4B139484FA1910C990E51265A" section-type="subsequent-section"><enum>433.</enum><header>Termination of
program</header><text display-inline="no-display-inline">Section 711(c) of the
Small Business Competitive Demonstration Program Act of 1988 (15 U.S.C. 644
note) is amended by inserting after <quote>January 1, 1989</quote> the
following: <quote>, and shall terminate on the date of enactment of the
<short-title>Small Business Reauthorization and
Improvements Act of 2006</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id34C63B50D9304946BFBAF07776BB14B9" section-type="subsequent-section"><enum>434.</enum><header>Increasing
collateral requirements</header><text display-inline="no-display-inline">Section 7(d)(6) of the Small Business Act
(15 U.S.C. 636), as so designated by section 401, is amended by striking
<quote>$10,000</quote> and inserting <quote>$12,000</quote>.</text>
</section></subtitle><subtitle id="id41E7242D4FC641078F4A6BE67F3DB1CB"><enum>C</enum><header>Disaster
response</header>
<section id="id98B4C47AE146416B84796A783EB5529F"><enum>451.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id863B268546AF4330861C7B3493F1246B"><enum>(1)</enum><text>the term
<term>approved State Bridge Loan Program</term> means a State Bridge Loan
Program approved under section 452(b);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFEE8FD5B5CF947C9B6F23CEDA418C08E"><enum>(2)</enum><text>the term
<term>catastrophic national disaster</term> 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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC1CC68B382BA402DAF13533BB30B7A6F"><enum>(3)</enum><text display-inline="yes-display-inline">the term <term>declared disaster</term>
means a major disaster or a catastrophic national disaster;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id28D1D733B8784A3BA8B57053709344F9"><enum>(4)</enum><text display-inline="yes-display-inline">the term <term>disaster loan program of the
Administration</term> means assistance under section 7(b) of the Small Business
Act (15 U.S.C. 636(b));</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0BC9EAD339114118A7BF7A8619667D28"><enum>(5)</enum><text display-inline="yes-display-inline">the term <term>disaster update
period</term> 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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7ED513C246A94CD2973E5BE39226BC53"><enum>(6)</enum><text>the term
<term>major disaster</term> 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</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id90F6D00FA2B04F34A94C5E1E093F8905"><enum>(7)</enum><text>the term
<term>State</term> 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.</text>
</paragraph></section><section id="IDbfbb2e824f3c4eeebe5669b23e57b6b9"><enum>452.</enum><header>State bridge
loan guarantee</header>
<subsection commented="no" id="idD7C7507CCB444E55A2EC48B5FD5701DB"><enum>(a)</enum><header>Authorization</header><text>After
issuing guidelines under subsection (c), the Administrator may guarantee loans
made under an approved State Bridge Loan Program.</text>
</subsection><subsection id="id45011130B7A840FDA66C62C462C68E5F"><enum>(b)</enum><header>Approval</header>
<paragraph id="id893AE96F3F30482F88CC0CE6A314511C"><enum>(1)</enum><header>Application</header><text>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.</text>
</paragraph><paragraph id="id0C4166B73EDF47BAB42A0C919E733779"><enum>(2)</enum><header>Criteria</header><text>The
Administrator may approve an application submitted under paragraph (1) based on
such criteria as the Administrator may establish under this section.</text>
</paragraph></subsection><subsection id="idE232E943EF0349059DB38B4ED9BE5DC5"><enum>(c)</enum><header>Guidelines</header>
<paragraph id="id875A816DB3D14B71A8AC6F61F98B3EC3"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID31deb61a47ce41ad97dd86fbe1836005"><enum>(2)</enum><header>Contents</header><text>The
guidelines issued under paragraph (1) shall—</text>
<subparagraph id="idE2704701666D48E6AB5A71ED30DACA6D"><enum>(A)</enum><text>identify
appropriate uses of funds under an approved State Bridge Loan Program;</text>
</subparagraph><subparagraph id="idA96ADC02661E4B229F2D83CCCEFF2FA6"><enum>(B)</enum><text>set terms and
conditions for loans under an approved State Bridge Loan Program;</text>
</subparagraph><subparagraph id="idB497D26F4D974E0388F1FF580C62E9AF"><enum>(C)</enum><text>address
whether—</text>
<clause id="idDB612D7143514ECDBDD117EFB33B2982"><enum>(i)</enum><text>an
approved State Bridge Loan Program may charge administrative fees; and</text>
</clause><clause id="id893DAA719865404C9D0588C43F69B3CF"><enum>(ii)</enum><text>loans under an
approved State Bridge Loan Program shall be disbursed through local banks and
other financial institutions; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEFA914ECEF1F4B008B04A441678A1040"><enum>(D)</enum><text>establish the
percentage of a loan the Administrator will guarantee under an approved State
Bridge Loan Program.</text>
</subparagraph></paragraph></subsection></section><section id="idBBFF89A9D8F642F4BD4EA3FF104869E8"><enum>453.</enum><header>Catastrophic
national disasters</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id174658301DF44EFF808098FBCC7AC9D4" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id6B2F36462F3045AC8D8EB1885D3E894C"><enum>(6)</enum><header>Catastrophic
national disasters</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idE883816FC65A48DD96ECD4DC68776F87"><enum>(A)</enum><header>Definition</header><text display-inline="yes-display-inline">In this paragraph the term
<term>catastrophic national disaster</term> means a disaster, natural or other,
that the President determines has caused significant adverse economic
conditions outside of the geographic reach of the disaster.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9EF48DD52E0C4E8CB05900BC537FCA20"><enum>(B)</enum><header>Authorization</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id149CCF2E20DC4ACFAAD2504544EE12DE"><enum>(C)</enum><header>Loan
terms</header><text display-inline="yes-display-inline">A loan under this
paragraph shall be made on the same terms as a loan under paragraph
(2).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="idA297336FDBCB42129015C7604FF983A3" section-type="subsequent-section"><enum>454.</enum><header>Public awareness of
disaster declaration and application periods</header>
<subsection commented="no" display-inline="no-display-inline" id="idDECBE2296E5A449C8E7EB9642D13D007"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id4BB9400260E0495E9B371CA4A9D63F44" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID85904c49851d4a88b0641d3eaaf9e512"><enum>(7)</enum><header>Coordination
with FEMA</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id4FF498C3926A4AD1A4EB7625249588EF"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8F8712690E8D4A2982FE7D74E5628E7F"><enum>(B)</enum><header>Deadline
extensions</header><text display-inline="yes-display-inline">Notwithstanding
any other provision of law—</text>
<clause commented="no" display-inline="no-display-inline" id="id1EFCF578A13E4339B6FD73C9144BB761"><enum>(i)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id2874079E696A46F5AF5E798941C3F536"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id87B909B16AB64BCEA1BDE5B42F6DF1D0"><enum>(8)</enum><header>Public
awareness of disasters</header><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id33F6334E7EE94F55AFF12ED671ACDFF2"><enum>(A)</enum><text display-inline="yes-display-inline">the date of such declaration;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id17AD55A9000C462CAFD358F8D86D405D"><enum>(B)</enum><text display-inline="yes-display-inline">cities and towns within the area of such
declaration;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id08D45C5457D5431A9662813B749A8938"><enum>(C)</enum><text display-inline="yes-display-inline">loan application deadlines related to such
disaster;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id278A9E965A964B1A8491952E27EB9437"><enum>(D)</enum><text display-inline="yes-display-inline">all relevant contact information for victim
services available through the Administration (including links to small
business development center websites);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id65F31B349B7147569EEC9BE79C0BB187"><enum>(E)</enum><text display-inline="yes-display-inline">links to relevant Federal and State
disaster assistance websites;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB549EE76C8BC4595996B9F093EEA40F1"><enum>(F)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph id="IDe45e39ebc0544333904c0d8dea4aea68"><enum>(G)</enum><text>application
materials that clearly state the function of the Administration as the Federal
source of disaster loans for homeowners and
renters.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id6DC1EBD513B04D19879EA1FA1918B062"><enum>(b)</enum><header>Coordination of
agencies and outreach</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3D1823F1B94446BC84DB7FD3FC7CF9DD"><enum>(c)</enum><header>Marketing and
outreach</header><text display-inline="yes-display-inline">Not later than 90
days after the date of enactment of this Act, the Administrator shall create a
marketing and outreach plan that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDc266213935dd46b5b0194a9c2a3724cf"><enum>(1)</enum><text display-inline="yes-display-inline">encourages a proactive approach to the
disaster relief efforts of the Administration;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID22c59c609d7a4528a39f9cee66d82807"><enum>(2)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID78c595fb8c7547ddaa169c4040424daf"><enum>(3)</enum><text display-inline="yes-display-inline">describes the different disaster loan
programs of the Administration, including how they are made available and what
eligibility requirements exist for each loan program;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID428bac8af56349b088c572d508730dc0"><enum>(4)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDfd08bec58f744e27993839cb9178abf8"><enum>(5)</enum><text display-inline="yes-display-inline">ensures that the marketing plan is made
available at small business development centers and on the website of the
Administration.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id40E59A30FD004D22AC9C066B5683AB82" section-type="subsequent-section"><enum>455.</enum><header>Consistency between
Administration regulations and standard operating procedures</header>
<subsection id="IDcf2d3caa6040439b8c3810346216aafd"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="ID227ab547c6a244aca1627871a00de0e4"><enum>(b)</enum><header>Report</header><text>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).</text>
</subsection></section><section id="ID75455ffc6f3b40fbb32cf97828166e42"><enum>456.</enum><header>Processing
disaster loans</header>
<subsection id="IDa5a2dd054f014ea68f4ecd558d66dbc2"><enum>(a)</enum><header>Authority for
qualified private contractors to process disaster loans</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id00E2E34AE6384B9D9BDB6F97DA6314EB" style="OLC">
<paragraph id="ID338fae2be63849cb916af7c24f90f1c7"><enum>(9)</enum><header>Authority for
qualified private contractors</header>
<subparagraph id="id902AF1A944884C4485DBA7B6370852E6"><enum>(A)</enum><header>Disaster loan
processing</header><text>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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7171ab21b39642f1a4654e107f029b0c"><enum>(B)</enum><header>Loan loss
verification services</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID9692a7cf58314ed6923744b307ca48e3"><enum>(b)</enum><header>Coordination of
efforts between the administrator and the internal revenue service to expedite
loan processing</header><text>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.</text>
</subsection><subsection id="IDc0504a0e96f444d6a85d6539e9d67dde"><enum>(c)</enum><header>Report on loan
approval rate</header>
<paragraph id="ID983ceef290d649d7b466c763b2140f14"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID6b2013b0b99c49c19ec3aed04c5c935f"><enum>(2)</enum><header>Contents</header><text>The
report submitted under paragraph (1) shall include—</text>
<subparagraph id="IDaee5f4e0f1dd4bab97e88942c9851109"><enum>(A)</enum><text>recommendations,
if any, regarding—</text>
<clause id="ID6b0da066f9ea40bb802b2ce6132753f7"><enum>(i)</enum><text>staffing levels
during a major disaster;</text>
</clause><clause id="ID5ac488f665534e41a613df9e8fee0105"><enum>(ii)</enum><text>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;</text>
</clause><clause id="ID48ea7a1f92854d69b69cc99f1a8a799f"><enum>(iii)</enum><text>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</text>
</clause><clause id="ID73633ca2583a43f4a02d3859714aadb9"><enum>(iv)</enum><text>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</text>
</clause></subparagraph><subparagraph id="ID6b145b5f28da4e3b904549dafe537aa8"><enum>(B)</enum><text>the plans of the
Administrator for implementing any recommendation made under subparagraph
(A).</text>
</subparagraph></paragraph></subsection></section><section id="IDc680ee85f3d541d38ca74ac1b66c9afe"><enum>457.</enum><header>Development
and implementation of major disaster response plan</header>
<subsection id="IDdce9e01f5d7a4cf4a79fc9345fce8c35"><enum>(a)</enum><header>In
general</header><text>Not later than January 31, 2007, the Administrator
shall—</text>
<paragraph id="id662C0DA87F7E4A16AEF8BEAA66FA5B7B"><enum>(1)</enum><text>by rule, amend
the 2006 Atlantic hurricane season disaster response plan of the Administration
(in this section referred to as the <quote>disaster response plan</quote>) to
apply to major disasters and catastrophic national disasters, consistent with
this Act and the amendments made by this Act; and</text>
</paragraph><paragraph id="id912DEA22FEA94EF6B59DB0D7540537AE"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="ID9bf0ce9049ec4f3cab56c4b5f7effb44"><enum>(b)</enum><header>Contents</header><text>The
amended report required under subsection (a)(2) shall include—</text>
<paragraph id="ID7063d8d87e5240f694b55edfc10bc7d5"><enum>(1)</enum><text>any updates or
modifications made to the disaster response plan since the report regarding the
disaster response plan submitted on July 14, 2006;</text>
</paragraph><paragraph id="ID0ebeeb076e6d43089931fc5b2cf69795"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="IDe1e1dbafc99d4cf19f613f7a6a1b5487"><enum>(3)</enum><text>a description of
the disaster scalability model of the Administration and on what basis or
function the plan is scaled;</text>
</paragraph><paragraph id="ID7f9d594778134d73878778dad771a818"><enum>(4)</enum><text>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;</text>
</paragraph><paragraph id="IDe1b2dcd16c0b4d118fc67fee27409ceb"><enum>(5)</enum><text>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;</text>
</paragraph><paragraph id="ID27abfbb9bade4d4fbd508ddecc69fec3"><enum>(6)</enum><text>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;</text>
</paragraph><paragraph id="ID57301a22ff5945a7a879df0baedaeaea"><enum>(7)</enum><text>any surge plans
of the Administration for loan processing and loss verification
functions;</text>
</paragraph><paragraph id="IDab04d39964454df5b1c3ea03b7b9f18f"><enum>(8)</enum><text>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</text>
</paragraph><paragraph id="ID9b2938904e75436587ddb8e38a286d59"><enum>(9)</enum><text>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.</text>
</paragraph></subsection><subsection id="IDf4f689d4c1644b88af1afbf6ae7972a6"><enum>(c)</enum><header>Exercises</header><text>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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id7B6ABC0F11794BD4943DD0DB2863EBB3" section-type="subsequent-section"><enum>458.</enum><header>Congressional
oversight</header>
<subsection commented="no" display-inline="no-display-inline" id="ID926df4967703463e93f087334582d23e"><enum>(a)</enum><header>Monthly
accounting report to congress</header>
<paragraph commented="no" display-inline="no-display-inline" id="idB61B977D9F6F496EBCB573061C5F35CC"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id622F7A9A691443A2BF099DA7ABE16D09"><enum>(2)</enum><header>Contents</header><text display-inline="yes-display-inline">Each report under paragraph (1) shall
include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDb6bc7bc1487d4a159fee7aae5484c144"><enum>(A)</enum><text display-inline="yes-display-inline">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);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDbbd3ee8e5a7e4507a5267a4588829a9e"><enum>(B)</enum><text display-inline="yes-display-inline">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);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0f2e01b687cd4f51a15558e0ec22adfb"><enum>(C)</enum><text display-inline="yes-display-inline">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);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDc31600998f77471da865e7aede63f2cb"><enum>(D)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0a463d2dac7140eeb41d1aff90e5cbc0"><enum>(E)</enum><text display-inline="yes-display-inline">an estimate of how long the available
funding for such loans will last, based on the spending rate;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0db84965df9742efa08477caed5eda19"><enum>(F)</enum><text display-inline="yes-display-inline">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);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDef15d7d5815f4294b6e9d495db534006"><enum>(G)</enum><text display-inline="yes-display-inline">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);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6d8ab2a9e7374790b22286548de0b2f5"><enum>(H)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4b411c31ad0a4a5f977e25efebda60e3"><enum>(I)</enum><text display-inline="yes-display-inline">an estimate of how long the available
funding for salaries and expenses will last, based on the spending rate.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDb55c4df83f3b4fc6b72838f4f09dae4f"><enum>(b)</enum><header>Daily disaster
updates to congress for presidentially declared disasters</header>
<paragraph commented="no" display-inline="no-display-inline" id="id2E6D658B895A4800B4BE5FB52279EB9B"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB6D473FBB674405097A97CCCB31BAED2"><enum>(2)</enum><header>Contents</header><text display-inline="yes-display-inline">Each report under paragraph (1) shall
include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDb2ce1bc7c531430eb489a95892ad23ee"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID79dee878afea43ac85e45cc0a1db8aae"><enum>(B)</enum><text display-inline="yes-display-inline">the daily number of applications received
from applicants in the relevant area, as well as a breakdown of such figures by
State;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6f4c8fb3132c4c2cbab5b7aa6b0e5c38"><enum>(C)</enum><text display-inline="yes-display-inline">the daily number of applications pending
application entry from applicants in the relevant area, as well as a breakdown
of such figures by State;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDdf8319209519442a9542cd027d59c6fe"><enum>(D)</enum><text display-inline="yes-display-inline">the daily number of applications withdrawn
by applicants in the relevant area, as well as a breakdown of such figures by
State;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDd779f8eec5544391a2ad13ab016c9e5a"><enum>(E)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID89039e9eb03e41c583161e8319a843df"><enum>(F)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7a8718fc1923477d9fa8741e81e28139"><enum>(G)</enum><text display-inline="yes-display-inline">the daily number of applications in process
from applicants in the relevant area, as well as a breakdown of such figures by
State;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID84519beeb60b4200bfeb937b39448dfc"><enum>(H)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID47ff3e48c5374560a60dd9aa4e7e6171"><enum>(I)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDd5a8a015acb9466fb074197f4b4a9b17"><enum>(J)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID06b45104104e4ccba5bb88366f7ffb3b"><enum>(K)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7fd7861d2c62488e86b3dac587af52a7"><enum>(L)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDc636679be13a4471b208830ade97dedd"><enum>(M)</enum><text display-inline="yes-display-inline">the declaration date, physical damage
closing date, economic injury closing date, and number of counties included in
the declaration of a major disaster.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA64B5F393D2644E3A459B9DFBD2432E5"><enum>(c)</enum><header>Report on need
for supplemental funds</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID6b1513c030584387a7415398f310fde6"><enum>(d)</enum><header>Report on
contracting</header>
<paragraph commented="no" display-inline="no-display-inline" id="idA87F12FFB95C4410B56A2F57D0E27E0A"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id624DDE5AEDCD4A999A8CC67C32E383A8"><enum>(2)</enum><header>Contents</header><text display-inline="yes-display-inline">Each report submitted under paragraph (1)
shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD1F1238A8F84449D82AE5D37A2F0F7CE"><enum>(A)</enum><text display-inline="yes-display-inline">the total number of contracts awarded as a
result of the declared disaster;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id56F8D4C6368D45209DF3C616E5DF73AC"><enum>(B)</enum><text display-inline="yes-display-inline">the total number of contracts awarded to
small business concerns as a result of the declared disaster;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7C60C5D4190A41AFB618FF66DBCB446B"><enum>(C)</enum><text display-inline="yes-display-inline">the total number of contracts awarded to
women and minority-owned businesses as a result of the declared disaster;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6B6B4633D17C4DE1998C75343F79E20D"><enum>(D)</enum><text display-inline="yes-display-inline">the total number of contracts awarded to
local businesses as a result of the declared disaster.</text>
</subparagraph></paragraph></subsection></section></subtitle><subtitle id="id21F974C46B294CE8BD5D171C35AF2CCC"><enum>D</enum><header>Energy
emergencies</header>
<section changed="not-changed" id="ID87202B0A81514214BD953DFA38EFBB93"><enum>471.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds that—</text>
<paragraph changed="not-changed" id="ID3838B21210F448FABEEE00455E53D290"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph changed="not-changed" id="ID488768F7205741959100E6A72600C3FB"><enum>(2)</enum><text>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</text>
</paragraph><paragraph changed="not-changed" id="ID8048473CCC0741A9959D5362704F1134"><enum>(3)</enum><text>significant
increases in the price of heating oil, natural gas, propane, or
kerosene—</text>
<subparagraph changed="not-changed" id="ID1189A6FC439141B8A3CFF89BF9A75FC6"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph changed="not-changed" id="ID1D155F234B6D4DAEA3743B1CA7506502"><enum>(B)</enum><text>can negatively
affect the national economy and regional economies;</text>
</subparagraph><subparagraph changed="not-changed" id="ID3312B4FDE7124E0697FB6661D4EAFE03"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph changed="not-changed" id="ID919280FB08CA47F6A406B26F6F1087A8"><enum>(D)</enum><text>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.</text>
</subparagraph></paragraph></section><section changed="not-changed" id="ID21EC21D4F3EB41BF9F6D1E1E681FE2D7"><enum>472.</enum><header>Small business
energy emergency disaster loan program</header>
<subsection changed="not-changed" id="IDB17A4620452C4AB8AD4FA16500EAD434"><enum>(a)</enum><header>In
general</header><text>Section 7(b) of the <act-name parsable-cite="SBA">Small
Business Act</act-name> (15 U.S.C. 636(b)) is amended by inserting after
paragraph (9), as added by this Act, the following:</text>
<quoted-block act-name="Small Business Act" id="ID1819F087637C455C9F795197CF1B58ED">
<paragraph id="ID3D1E12F4ED014E7B00EE436D39598567"><enum>(10)</enum><header>Energy
emergencies</header>
<subparagraph id="idFB77B9DF74FA4598BBD10C9FE4566E43"><enum>(A)</enum><header>Definitions</header><text>In
this paragraph—</text>
<clause id="ID27F15FDAB6E745EFACE3C4E644115937"><enum>(i)</enum><text>the term
<term>base price index</term> 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);</text>
</clause><clause id="id1C7499253EBF413C9268EC025E705CBB"><enum>(ii)</enum><text>the term
<term>current price index</term> 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 <quote>front
month</quote>;</text>
</clause><clause id="id97DA11AEAE9D45A7A2F9377A1AD1A10E"><enum>(iii)</enum><text>the term
<term>heating fuel</term> means heating oil, natural gas, propane, or kerosene;
and</text>
</clause><clause id="ID591A33DC89A944A5B4272E28122CA188"><enum>(iv)</enum><text>the term
<term>significant increase</term> means—</text>
<subclause id="id34564254B52240B385AAA96DD7A1BBEC"><enum>(I)</enum><text>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</text>
</subclause><subclause id="id930E602CD3CD40549FA675BF6A544DE4"><enum>(II)</enum><text>with respect to
the price of kerosene, any increase which the Administrator, in consultation
with the Secretary of Energy, determines to be significant.</text>
</subclause></clause></subparagraph><subparagraph id="ID46422D61C129486793018F9B2B2900A0"><enum>(B)</enum><header>Authorization</header><text>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.</text>
</subparagraph><subparagraph id="ID16FEE0D8869B4B92A7F06F323EEE3642"><enum>(C)</enum><header>Interest
rate</header><text>Any loan or guarantee extended under this paragraph shall be
made at the same interest rate as economic injury loans under paragraph
(2).</text>
</subparagraph><subparagraph id="IDD18F2B2D81F4445C8EEFCF1CC84CFDAF"><enum>(D)</enum><header>Maximum
amount</header><text>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.</text>
</subparagraph><subparagraph id="IDEDF99E8E99B5455CBD2241D79DE8F0B4"><enum>(E)</enum><header>Declarations</header><text>For
purposes of assistance under this paragraph—</text>
<clause id="ID31F79B8927B149EAAEC14485567CD02C"><enum>(i)</enum><text>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</text>
</clause><clause id="ID69B3AE1CF2D946D5AC12EAF252BEC273"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="ID07C949A8A7B545E1BBE11638D7819C7E"><enum>(F)</enum><header>Use of
funds</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="not-changed" id="ID904FBA342C5A428BBCF003BDAEE54263"><enum>(b)</enum><header>Conforming
amendments relating to heating fuel</header><text>Section 3(k) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 632(k))
is amended—</text>
<paragraph changed="not-changed" id="ID285A5EB000224A16BE1552030305DE5D"><enum>(1)</enum><text>by inserting
<quote>, significant increase in the price of heating fuel</quote> after
<quote>civil disorders</quote>; and</text>
</paragraph><paragraph changed="not-changed" id="ID420113903249421AB89B42371B462E23"><enum>(2)</enum><text>by inserting
<quote>other</quote> before <quote>economic</quote>.</text>
</paragraph></subsection><subsection changed="not-changed" id="ID67C116926F76436E875229BF4E808BA3"><enum>(c)</enum><header>Effective
period</header><text>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.</text>
</subsection></section><section changed="not-changed" id="IDFB568CCEDAEF408893C6C4D06D666D5E"><enum>473.</enum><header>Agricultural
producer emergency loans</header>
<subsection changed="not-changed" id="ID893E8F57A74E4C008038906F37BFF7B8"><enum>(a)</enum><header>In
general</header><text>Section 321(a) of the <act-name parsable-cite="CFRDA">Consolidated Farm and Rural Development Act</act-name> (7
U.S.C. 1961(a)) is amended—</text>
<paragraph changed="not-changed" id="IDFFAD940B8A3041259E6500757D6DD172"><enum>(1)</enum><text>in the first
sentence—</text>
<subparagraph changed="not-changed" id="IDBF1470998AE348E9A795AB006C4397AA"><enum>(A)</enum><text>by striking
<quote>operations have</quote> and inserting <quote>operations (i)
have</quote>; and</text>
</subparagraph><subparagraph changed="not-changed" id="ID63FF9BAA0FD948E7006541542EC655EC"><enum>(B)</enum><text>by inserting
before <quote>: <italic>Provided,</italic></quote> the following: <quote>, 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 <act-name parsable-cite="SBA">Small Business Act</act-name> (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</quote>;</text>
</subparagraph></paragraph><paragraph changed="not-changed" id="ID7073D59B9BA5440F80C940EB189EAE64"><enum>(2)</enum><text>in the third
sentence, by inserting before the period at the end the following: <quote>or by
an energy emergency declared by the President or the Secretary</quote>;
and</text>
</paragraph><paragraph changed="not-changed" id="ID102C6A21D5794ED4BE59C0945D0047D5"><enum>(3)</enum><text>in the fourth
sentence—</text>
<subparagraph changed="not-changed" id="IDE8394C115960403CBE8D24D7AD1BEE46"><enum>(A)</enum><text>by inserting
<quote>or energy emergency</quote> after <quote>natural disaster</quote> each
place that term appears; and</text>
</subparagraph><subparagraph changed="not-changed" id="IDD3E2882687C7486DA65013F1D3C47CEC"><enum>(B)</enum><text>by inserting
<quote>or declaration</quote> after <quote>emergency
designation</quote>.</text>
</subparagraph></paragraph></subsection><subsection changed="not-changed" id="ID55B83055B4494297A7B5E99147617441"><enum>(b)</enum><header>Funding</header><text>Funds
available on the date of enactment of this Act for emergency loans under
subtitle C of the <act-name parsable-cite="CFRDA">Consolidated Farm and Rural
Development Act</act-name> (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.</text>
</subsection><subsection changed="not-changed" commented="no" display-inline="no-display-inline" id="IDA2F26C819F4D4AAFA289F17145D0F4EA"><enum>(c)</enum><header>Effective
period</header><text>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.</text>
</subsection></section><section changed="not-changed" id="ID07E78611EB2D40F3B704527F1F6FD656"><enum>474.</enum><header>Guidelines and
rulemaking</header>
<subsection changed="not-changed" id="id7751F2FDEF1043A9BD45479F5186E7DB"><enum>(a)</enum><header>Guidelines</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection changed="not-changed" id="id9D09E5DE8DF54B678BA99E0E37042034"><enum>(b)</enum><header>Rulemaking</header><text>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.</text>
</subsection></section><section changed="not-changed" id="IDC5244C10300C4E95BE010200DD1CFD53"><enum>475.</enum><header>Reports</header>
<subsection changed="not-changed" id="ID114E51DB35A04B238D894752A848CFB3"><enum>(a)</enum><header>Small business
administration</header><text>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 <act-name parsable-cite="SBA">Small
Business Act</act-name>, as added by this Act, including—</text>
<paragraph changed="not-changed" id="ID0FC00D1F5AFF4B76B562C12F740030BC"><enum>(1)</enum><text>the number of
small business concerns that applied for a loan under such section and the
number of those that received such loans;</text>
</paragraph><paragraph changed="not-changed" id="IDD93CEF2C6A444391A7FDACC6C7DBF81B"><enum>(2)</enum><text>the dollar value
of those loans;</text>
</paragraph><paragraph changed="not-changed" id="IDDA6521BA0511413CA301E8379980E7D3"><enum>(3)</enum><text>the States in
which the small business concerns that received such loans are located;</text>
</paragraph><paragraph changed="not-changed" id="ID1F14F36318624389873C06961EE8F6AA"><enum>(4)</enum><text>the type of
heating fuel or energy that caused the significant increase in the cost for the
participating small business concerns; and</text>
</paragraph><paragraph changed="not-changed" id="ID0E03662C562A44D2BB172487978CE4B1"><enum>(5)</enum><text>recommendations
for ways to improve the assistance provided under such section 7(b)(10), if
any.</text>
</paragraph></subsection><subsection changed="not-changed" id="ID9498EAC264784D17893F551F1CBE4F48"><enum>(b)</enum><header>Department of
agriculture</header><text>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—</text>
<paragraph changed="not-changed" id="idE8CED266255D40DB809482926003EB09"><enum>(1)</enum><text>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</text>
</paragraph><paragraph changed="not-changed" id="idA1C915DCAA0B48388720D367768988EF"><enum>(2)</enum><text>contains
recommendations for ways to improve the assistance provided under such section
321(a), if any.</text>
</paragraph></subsection></section></subtitle><enum>V</enum><header>Veterans and
members of the Guard and Reserve</header>
<section id="id6B2F2B9789D14433A9DF6A0F8107DA44"><enum>501.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title—</text>
<paragraph id="idF1E5781D7EC84677B456C3EC549A3F88"><enum>(1)</enum><text>the terms
<term>active duty</term> and <term>military department</term> have the meaning
given the terms in section 101 of title 10, United States Code;</text>
</paragraph><paragraph id="idD3F161B4C0DD460DA63CA179C8EA4521"><enum>(2)</enum><text>the term
<term>member of the Guard or Reserve</term> means a member of a reserve
component of the Armed Forces, as defined in section 10101 of title 10, United
States Code;</text>
</paragraph><paragraph id="idAB4D7D226CFD40A2B60BAE703F13F578"><enum>(3)</enum><text>the term
<term>Secretary</term> means the Secretary of Defense; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA930BA7A17D64D1A92E48DB243542442"><enum>(4)</enum><text>the term
<term>veteran</term> has the same meaning as in section 101(2) of title 38,
United States Code.</text>
</paragraph></section><subtitle id="id825F54EC5D88470B928618FF144A171D"><enum>A</enum><header>Veterans</header>
<section id="IDB24242C80CC341DBB75745189F389F30"><enum>521.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="IDDC9D47816E83422EB8B9DF63B96E7CF6"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="IDD9CAD7FDB4BF43EEAF0BB186288E07D3"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="IDA94197636B5F4135AD0A39925465766F"><enum>(3)</enum><text>The majority of
privately employed members of the Guard or Reserve either work for a small
business concern or are self-employed.</text>
</paragraph><paragraph id="IDD271C883402C49A38AD1736656BAFC87"><enum>(4)</enum><text>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.</text>
</paragraph><paragraph id="ID8FE241CBE6E44E42B0C4F41ABB747699"><enum>(5)</enum><text>The effects have
been devastating to such patriotic small business concerns.</text>
</paragraph><paragraph id="IDC55F0A577C314D0EB129107201461414"><enum>(6)</enum><text>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.</text>
</paragraph><paragraph id="ID618623E378F44B298638E1C510E1998D"><enum>(7)</enum><text>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.</text>
</paragraph><paragraph id="ID5DBD44B535254D46AA4A5B1A9C0316E1"><enum>(8)</enum><text>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.</text>
</paragraph></section><section id="IDA3BA96C42F304521B61218E8227BBB07"><enum>522.</enum><header>Increased
funding for the Office of Veterans Business Development</header><text display-inline="no-display-inline">There is authorized to be appropriated to
the Office of Veterans Business Development of the Administration, and to
remain available until expended—</text>
<paragraph id="ID1EE57497C25C4233B0EFAF470470CDD9"><enum>(1)</enum><text>$2,000,000 for
fiscal year 2007;</text>
</paragraph><paragraph id="ID7B645CABF30249BCB7B44A1F797B79F6"><enum>(2)</enum><text>$2,100,000 for
fiscal year 2008; and</text>
</paragraph><paragraph id="IDA61E5845A57544A0BCE5E0EC9FF97D3D"><enum>(3)</enum><text>$2,200,000 for
fiscal year 2009.</text>
</paragraph></section><section id="IDCA53128CD36D4CFEB90E7FAA3C6C41FE"><enum>523.</enum><header>Extension of
Advisory Committee on Veterans Business Affairs</header><text display-inline="no-display-inline">Section 203(h) of the Veterans
Entrepreneurship and Small Business Development Act of 1999 (15 U.S.C. 657b
note) is amended by striking <quote>September 30, 2006</quote> and inserting
<quote>September 30, 2009</quote>.</text>
</section><section id="IDD5E70D96CEBE4604B769D99F7D39CBC4"><enum>524.</enum><header>Relief from
time limitations for veteran-owned small businesses</header><text display-inline="no-display-inline">Section 3(q) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 632(q))
is amended by adding at the end the following:</text>
<quoted-block act-name="Small Business Act" id="ID7333D70D475E4AA7910B7A7BF9A04F27" style="OLC">
<paragraph id="ID3B4E51FF89354224B26338FE4539648A"><enum>(5)</enum><header>Relief from
time limitations</header>
<subparagraph id="ID0689D30C94A043988FD341AAC4CAB18A"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="IDC2A005697FA342B586674982BD681AF4"><enum>(i)</enum><text>is owned and
controlled by—</text>
<subclause id="ID4BFBE34861AE4F0D8691BB20D1B1748D"><enum>(I)</enum><text>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</text>
</subclause><subclause id="IDD35B0EE89EB64B1FBDC8E8B504758927"><enum>(II)</enum><text>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</text>
</subclause></clause><clause id="IDF3D284846E4B4C5782F67DD06FDE6C31"><enum>(ii)</enum><text>was subject to
the time limitation during such period of active duty.</text>
</clause></subparagraph><subparagraph id="IDC5FF64C205F74D6391BEC444D99D428F"><enum>(B)</enum><header>Duration</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="idD94709636EF24E71969E74889C091B5A"><enum>B</enum><header>Guard and
Reserve</header>
<section id="id7755D1679923489EB382DEC2146C9B31" section-type="subsequent-section"><enum>541.</enum><header>Guard and Reserve
loans</header>
<subsection id="id10420A16D52E486A9961BE7E9DBA9EFF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 7(b)(3) of
the Small Business Act (15 U.S.C. 636(b)(3)) is amended—</text>
<paragraph id="id51722044CDF0403D98795ED643A6048B"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (E), by striking
<quote>$1,500,000</quote> each place such term appears and inserting
<quote>$2,000,000</quote>; and</text>
</paragraph><paragraph id="id7D83AD1A269F4371BDEA3A720876B1C5"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4C983D154C4B477BB7A63750FF4DBC83" style="OLC">
<subparagraph id="idF258BDE3A67C40068CEF5A58A963E27D"><enum>(G)</enum><text>Notwithstanding
any other provision of law, a loan not greater than $25,000 may be made under
this paragraph without collateral.</text>
</subparagraph><subparagraph id="id15C3F5C7B3BA4259A55121A252CCD9A0"><enum>(H)</enum><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id4F0BAA7E18434D4D9861B47B1B06B084"><enum>(b)</enum><header>Loan
information</header>
<paragraph id="idB901C8DAB67E4AFE9A1BE5684EF916B2"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="id4A4ABF1CAD6B40B8BB0225F57E532908"><enum>(2)</enum><header>Marketing</header><text>The
Administrator is authorized—</text>
<subparagraph id="idFCCF9C2CEF6143348E83BC89FE49CBB5"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="id1AB1444A8BA8470587BBBBCBE73363B1"><enum>(B)</enum><text>to advertise and
promote participation by lenders in such program jointly with trade
associations for banks or other lending institutions.</text>
</subparagraph></paragraph></subsection></section><section id="id4FD882443ED14463AB946D0F48E7EE19"><enum>542.</enum><header>Study of
insurance program for members of the Guard and Reserve</header>
<subsection id="idF2C00E4DC4ED42139D2C41D21465E97E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Administrator and
the Secretary shall jointly conduct a study of the feasibility of—</text>
<paragraph id="id6F3ADBA321BA43E9B5568E95E218E12F"><enum>(1)</enum><text>creating a
business mobilization and interruption insurance program for members of the
Guard or Reserve who own or operate small business concerns;</text>
</paragraph><paragraph id="id76963B441B7E4DA4BAA587E230E5E507"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="ID837457fa82a94e11ae9c864996bcbed1"><enum>(3)</enum><text>increasing the
use of credit unions affiliated with the Department of Defense in programs
administered by the Administrator.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id364E335FF11549039787CD5DDFD07265"><enum>(b)</enum><header>Report</header><text>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).</text>
</subsection></section><section id="ID2f16219e9df043bb82b48601dc4d80a8"><enum>543.</enum><header>Grant
assistance for military Reservists' small business concerns</header>
<subsection id="IDdce5d25b492441fc98fc0824cf022cde"><enum>(a)</enum><header>Authorization
of grants</header><text>Section 7(b)(3)(B) of the Small Business Act (15 U.S.C.
636(b)(3)(B)) is amended by inserting <quote>or grants</quote> after <quote>or
deferred basis)</quote>.</text>
</subsection><subsection id="ID15108eb9981e4a6bb0e51d29ea640adc"><enum>(b)</enum><header>Grant
specifications</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id321283AFEEB84DD9B0FCF2C161B1459A" style="OLC">
<subparagraph id="IDc8ca7e82797d44f9a1a3a194aedc6792"><enum>(I)</enum><text>Grants made under
subparagraph (B)—</text>
<clause id="ID4e5894ad5ea047029bed916e125806d9"><enum>(i)</enum><text>may be awarded in
addition to any loan made under subparagraph (B);</text>
</clause><clause id="IDb13ef3d78c014e0496386c4bbb7ec027"><enum>(ii)</enum><text>shall not exceed
$25,000; and</text>
</clause><clause id="IDc610be8ab3114e90a86880d6bfd7c889"><enum>(iii)</enum><text>shall be made
only to a small business concern—</text>
<subclause id="ID0d60f081ce994bfd83786c88163312a3"><enum>(I)</enum><text>that provides a
business plan demonstrating viability for not less than 3 future years;</text>
</subclause><subclause id="ID1d10fccc81114510ab569a8ede6d7e37"><enum>(II)</enum><text>with 10 or fewer
employees;</text>
</subclause><subclause id="IDc22fbda07e4f4979aff1a70d9a410fc0"><enum>(III)</enum><text>that has not
received another grant under subparagraph (B) in the previous 2
years.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID3f2cfb1b2e8a442fadeba109fe2e18cb"><enum>(c)</enum><header>Authorization
of appropriations</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="idB0FC9DB80C0E40D58D2FEE0D0036152D" style="OLC">
<subparagraph id="ID119e45335d31405185ca6ddf4e7412da"><enum>(C)</enum><header>Grant
assistance for military Reservists' small businesses</header><text>There are
authorized to be appropriated for grants under section 7(b)(3)(B) for each of
fiscal years 2007 through
2009.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="id67DC3A7DE7BD4B66A01015A65D711C6E"><enum>C</enum><header>Veterans
Corporation</header>
<section id="id2F08D8F0997B4983B7B072F476E191D9" section-type="subsequent-section"><enum>561.</enum><header>Purposes of the
Corporation</header>
<subsection id="IDa61242b1917143a9b6d0159d425869f9"><enum>(a)</enum><header>Purposes</header><text>Section
33(b) of the Small Business Act (15 U.S.C. 657c(b)) is amended—</text>
<paragraph id="id8E730879B2FF40D1AEC885579C912FBB"><enum>(1)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id27136DE1066144DA818C21AFD94F58D6" style="OLC">
<paragraph id="ID4d1cd9f694fe40a29c18884783896b05"><enum>(1)</enum><text>to establish and
maintain a national network of information and assistance centers for use by
veterans and the public, by—</text>
<subparagraph id="IDde960bc98ec344c2957c00b9db73d53e"><enum>(A)</enum><text>providing
information regarding small business oriented employment or development
programs;</text>
</subparagraph><subparagraph id="ID459e763fbaee437f8e26b8d838f81d75"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="IDaa188fed619f425183294d94465c91f7"><enum>(C)</enum><text>providing
referrals to business analysts who can provide direct counseling to veteran
small business concern owners regarding the subjects described in this
section;</text>
</subparagraph><subparagraph id="ID25a0d18e9b7c4ff1abbab8d3d05b5f10"><enum>(D)</enum><text>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</text>
</subparagraph><subparagraph id="IDe90d6ed6908049afb31fbaed7fa97318"><enum>(E)</enum><text>providing
assistance to veterans and service-disabled veterans in efforts to gain access
to Federal prime contracts and subcontracts;
and</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDf371002e7f9d4db0827bea9fc2705318"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>including service-disabled veterans</quote> and inserting
<quote>particularly service-disabled veterans</quote>.</text>
</paragraph></subsection></section><section id="ID31fc71e08c0f41bc85bee07f4bb88b13"><enum>562.</enum><header>Management of
the Corporation</header>
<subsection id="id9C4CE4F6028244C7963450C555BCAD36"><enum>(a)</enum><header>Appointments to
the board</header><text display-inline="yes-display-inline">Section 33(c)(2) of
the Small Business Act (15 U.S.C. 657c(c)(2)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idDD310BE01BC94B36B6D3979F44B5033A" style="OLC">
<paragraph id="ID117a8e87aa774ca18bcbd6c58d66538f"><enum>(2)</enum><header>Appointment of
voting members</header>
<subparagraph id="id992C871A7AA9497D8A9A8B23EA0E1059"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="id13B3517AC1E64756AD7F0DD5FFC5CCFA"><enum>(B)</enum><header>Recommendations</header><text>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.</text>
</subparagraph><subparagraph id="ID6b5948490ca14d53bbe340437a508d2a"><enum>(C)</enum><header>Consultation
with veteran organizations</header><text>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.</text>
</subparagraph><subparagraph id="ID674dd97c434f4f6ab71d27b4bb7efa56"><enum>(D)</enum><header>Considerations</header><text>Consideration
for eligibility for membership on the Board shall include business experience,
knowledge of veterans’ issues, and ability to raise funds for the
Corporation.</text>
</subparagraph><subparagraph id="ID3af8ca4d2df140869cb58bee35455af4"><enum>(E)</enum><header>Limitation on
internal recommendations</header><text>No member of the Board may recommend an
individual for appointment to another position on the
Board.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id5EA903E075024EF7A4559BC75872E6FB"><enum>(b)</enum><header>Terms</header><text>Section
33(c)(6) of the Small Business Act (15 U.S.C. 657c(c)(6)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idAF77EA2E9DE848D3B2B871408C0EF311" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID647C027EFC674DB79924B2C60D07EC9C"><enum>(6)</enum><header>Terms of
appointed members</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID41704BAAA56848E48B09EB0FB8C6594B"><enum>(A)</enum><header>In
general</header><text>Each member of the Board of Directors appointed under
paragraph (2) shall serve for a term of 4 years.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID725F4B10473344E8B51D8E0CC819B385"><enum>(B)</enum><header>Unexpired
terms</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idDC9CFA194BE4413EBEC218DC915DA7D2"><enum>(c)</enum><header>Removal of
board members</header><text>Section 33(c) of the Small Business Act (15 U.S.C.
657c(c)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id82F2F9EBB55C4C5A986F56FB8F3DACF7" style="OLC">
<paragraph id="id6F3F8A209282435288F4866B8A0B0840"><enum>(12)</enum><header>Removal of
members</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDe92470344b1949b19dfaad0dbc73cbc3"><enum>563.</enum><header>Timing of
transfer of Advisory Committee duties</header><text display-inline="no-display-inline">Section 33(h) of the Small Business Act (15
U.S.C. 657c(h)) is amended by striking <quote>October 1, 2006</quote> and
inserting <quote>October 1, 2009</quote>.</text>
</section><section id="ID0bb2e918aae745fc9cc5736775bb6ccd"><enum>564.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">Section
33(k) of the Small Business Act (15 U.S.C. 657c(k)(1)) is amended—</text>
<paragraph id="idADEAAA8A46544288A8B3ADE23A3E16F8"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<subparagraph id="id9B3FD1233C5B4C779599EAB4B8F15E68"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>, through the Office of
Veteran's Business Development of the Administration,</quote> after <quote>to
the Corporation</quote>; and</text>
</subparagraph><subparagraph id="ID9e817ce81acd46ae9b09f007676328f4"><enum>(B)</enum><text>by striking
subparagraphs (A) through (D) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idB5BEC07AD3614ABDAE43B3C5E4EE500D" style="OLC">
<subparagraph id="id99758617A6C94CD6905A06ADF3B02F18"><enum>(A)</enum><text>$2,000,000 for
fiscal year 2007;</text>
</subparagraph><subparagraph id="IDae4dda814d574e2fb971d153dbec52ad"><enum>(B)</enum><text>$2,000,000 for
fiscal year 2008; and</text>
</subparagraph><subparagraph id="ID2afb314cb2874fd5854a56d6e70fc440"><enum>(C)</enum><text>$2,000,000 for
fiscal year
2009.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID18c44e41cb79468188d0712b4befccc6"><enum>(2)</enum><text>by striking
paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id2064BDC9B8E34CFAAAFCAC2ECABCCCD6" style="OLC">
<paragraph id="id231E645C64924376802AE21A9ADA42B7"><enum>(2)</enum><header>Matching
requirements</header>
<subparagraph id="id0339B3742B824BDFA3A1AF65CFB6AF22"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="idB5977CD8A68943FCB39AF19C5E536924"><enum>(B)</enum><header>Limitation</header><text>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 <short-title>Small Business
Reauthorization and Improvements Act of 2006</short-title>.</text>
</subparagraph><subparagraph id="idACF785C5383E40C6A6645A08FF22E5CB"><enum>(C)</enum><header>Mission-related
limitation</header><text>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).</text>
</subparagraph><subparagraph id="id370686D03D234B1B99C39FA9B473CB04"><enum>(D)</enum><header>Return to
treasury</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDde61242967464f8996ba4016aec74c2b"><enum>(3)</enum><text>by striking
paragraph (3).</text>
</paragraph></section><section id="ID9b8f251b4e294c73a3f935103a45b663"><enum>565.</enum><header>Privatization</header><text display-inline="no-display-inline">Section 33 of the Small Business Act (15
U.S.C. 657c) is amended—</text>
<paragraph id="IDb9939fb235bf4cbd902fe6c8ea03b8aa"><enum>(1)</enum><text>by striking
subsections (f) and (i); and</text>
</paragraph><paragraph id="id76915A97C18748E6A132CEF4398D96A5"><enum>(2)</enum><text>by redesignating
subsections (g), (h), (j), and (k) as subsections (f) through (i),
respectively; and</text>
</paragraph><paragraph id="ID9c01f2bde37042bba43f8b963ac38d85"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4B671A47359B48398A751DD5FD95776E" style="OLC">
<subsection id="IDc43b9cbe86f24b379ec7885b46b8d7f4"><enum>(j)</enum><header>Privatization</header>
<paragraph id="IDe71b093e76b544e4a21d220a6eaf8609"><enum>(1)</enum><header>Development of
plan</header><text>Not later than 6 months after the date of enactment of the
<short-title>Small Business Reauthorization and
Improvements Act of 2006</short-title>, the Corporation shall develop,
institute, and implement a plan to raise private funds and become a
self-sustaining corporation.</text>
</paragraph><paragraph id="IDf6a055dd9b5f4770bf03d26f63315a48"><enum>(2)</enum><header>GAO audit and
report</header>
<subparagraph id="id98E8949D09FB41EDAFF4DCA57C6A2BD4"><enum>(A)</enum><header>Audit</header><text>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.</text>
</subparagraph><subparagraph id="id34195F42DA0F4DF7A729C8C30F665C71"><enum>(B)</enum><header>Inclusions</header><text>The
audit required by this paragraph shall include—</text>
<clause id="ID1eb8eca4f0ee43479532221a882a105f"><enum>(i)</enum><text>an evaluation of
the efficacy of the Corporation in carrying out the purposes under section (b);
and</text>
</clause><clause id="IDd9e45026b7a344e7b760068f3ba43a30"><enum>(ii)</enum><text>an analysis of
the feasibility of the sustainability plan developed by the Corporation.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7B25DB71DAA3489B94A765DC89DAA19B"><enum>(C)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of the
<short-title>Small Business Reauthorization and
Improvements Act of 2006</short-title>, 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.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><enum>VI</enum><header>Energy loans for
small business concerns</header>
<section id="idFBC1E7807D424937B71F8E4348D9D985"><enum>601.</enum><header>Express loans
for renewable energy and energy efficiency</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id2B81F296BA954D708FB6771960754BFD" style="OLC">
<subparagraph id="idECADB3E4A2F848F1920A7B29F93318FD"><enum>(F)</enum><header>Express loans
for renewable energy and energy efficiency</header>
<clause id="id29D1E8BA9357496DB74D4FC4CCA43A79"><enum>(i)</enum><header>Definitions</header><text>In
this subparagraph—</text>
<subclause id="ID589ca7a4d1ff4ef085d4c47d8826d2a1"><enum>(I)</enum><text>the term
<term>biomass</term>—</text>
<item id="idA9FDCF235173487B8D7ED02554A9915E"><enum>(aa)</enum><text>means any
organic material that is available on a renewable or recurring basis,
including—</text>
<subitem id="ID440d8b4b06f342bb82f7638f2c0344c7"><enum>(AA)</enum><text>agricultural
crops;</text>
</subitem><subitem id="ID4dca82fdb79a4b95831437dcb0509da4"><enum>(BB)</enum><text>trees grown for
energy production;</text>
</subitem><subitem id="id1C896649954E4A649EE032BB2BBFC416"><enum>(CC)</enum><text>wood waste and
wood residues;</text>
</subitem><subitem id="ID1e069899774e433f862bb14d83b85cc7"><enum>(DD)</enum><text>plants
(including aquatic plants and grasses);</text>
</subitem><subitem id="ID730efb3d896f4ebc8ea91fd54daf9051"><enum>(EE)</enum><text>residues;</text>
</subitem><subitem id="ID439ed608ebbb4a65ac2e3499e41ac2a4"><enum>(FF)</enum><text>fibers;</text>
</subitem><subitem id="IDf216a96926b347029c339a1721ca5fe9"><enum>(GG)</enum><text>animal wastes
and other waste materials; and</text>
</subitem><subitem id="ID6b6474d84855400f9e1ad5c8ed9b8f06"><enum>(HH)</enum><text>fats, oils, and
greases (including recycled fats, oils, and greases); and</text>
</subitem></item><item id="IDffa77e964ef04195b09d24110323ea75"><enum>(bb)</enum><text>does not
include—</text>
<subitem id="ID98d51bebf5b649f58b86501a40eda17e"><enum>(AA)</enum><text>paper that is
commonly recycled; or</text>
</subitem><subitem id="ID81a115ba06394bd6ba54960b82611c8c"><enum>(BB)</enum><text>unsegregated
solid waste;</text>
</subitem></item></subclause><subclause id="id98C221C7913E4E57A2E5F792BB3DE700"><enum>(II)</enum><text>the term
<term>energy efficiency project</term> means the installation or upgrading of
equipment that results in a significant reduction in energy usage; and</text>
</subclause><subclause id="id9B76D95A50384FE99CBE4F4063B19C17"><enum>(III)</enum><text>the term
<term>renewable energy system</term> means a system of energy derived
from—</text>
<item id="id5FFC09768EF54BEEA5E2652D7DED71DC"><enum>(aa)</enum><text>a
wind, solar, biomass, or geothermal source; or</text>
</item><item id="id81B6C440D2BF42E195E582E87535D10E"><enum>(bb)</enum><text>hydrogen derived
from biomass or water using an energy source described in item (aa).</text>
</item></subclause></clause><clause id="idBFB35299AB9E4CB0AEC3280FE090BE57"><enum>(ii)</enum><header>Loans</header><text>Loans
may be made under the <quote>Express Loan Program</quote> for the purpose
of—</text>
<subclause id="ID82cd2b9e02e243bba323d6edf8e91bed"><enum>(I)</enum><text>purchasing a
renewable energy system; or</text>
</subclause><subclause id="idECA7BB72598D4ADC83CBBC913641E1B2"><enum>(II)</enum><text>an energy
efficiency project for an existing
business.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>VII</enum><header>Health
insurance</header>
<section commented="no" display-inline="no-display-inline" id="idC77A6B5AD1074FC49C4175077B950933" section-type="subsequent-section"><enum>701.</enum><header>Purpose</header><text display-inline="no-display-inline">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.</text>
</section><section commented="no" display-inline="no-display-inline" id="id23E3DC172C4E4A45944CC07A6F810611"><enum>702.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id53F737FDE07D4F7E822FC1256003B365"><enum>(1)</enum><header>Association</header><text display-inline="yes-display-inline">The term <term>association</term> means an
association established under section 21(a)(3)(A) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C.
648(a)(3)(A)) representing a majority of small business development
centers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4A97D16B6FFB4FBE8BC2D99ACFAA4AB8"><enum>(2)</enum><header>Participating
small business development center</header><text display-inline="yes-display-inline">The term <term>participating small business
development center</term> means a small business development center described
in section 21 of the <act-name parsable-cite="SBA">Small Business
Act</act-name> (15 U.S.C. 648) that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFEFE049292F5453CA4BA5A99F9900090"><enum>(A)</enum><text display-inline="yes-display-inline">is certified under section 21(k)(2) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C.
648(k)(2)); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8391DA60D13B4096A4AE053CBC6175C9"><enum>(B)</enum><text display-inline="yes-display-inline">receives a grant under the pilot
program.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAB37561480A94B5D8CF7047EB40EFF0E"><enum>(3)</enum><header>Pilot
program</header><text display-inline="yes-display-inline">The term <term>pilot
program</term> means the small business health insurance information pilot
program established under this title.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9F237014D4204C61A820DD75FC8C8D57"><enum>(4)</enum><header>State</header><text display-inline="yes-display-inline">The term <term>State</term> 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.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="idB29CEAD04A064683A0E5B844A702ACEA" section-type="subsequent-section"><enum>703.</enum><header>Small Business
Health Insurance Information Pilot Program</header>
<subsection commented="no" display-inline="no-display-inline" id="id7F4AB98A3DBC45B69DF7F3BA768930B5"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id7A68F9C7A3CB46B1A4071BB908669386"><enum>(b)</enum><header>Applications</header>
<paragraph commented="no" display-inline="no-display-inline" id="idBAAF14029C2F4E5898AA0193697674AE"><enum>(1)</enum><header>Posting of
information</header><text>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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id132ACDD66F1C42CAA10F41A44F0C2427"><enum>(A)</enum><text>the requirements
of an application for a grant under the pilot program; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id42C45A8F3EC04826AFF6A2EB0374D1F0"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAFB80517DF164324B40569F5E01D0001"><enum>(2)</enum><header>Submission</header><text>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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF2E7C6C42DF54A13BF5724493FE388B9"><enum>(c)</enum><header>Selection of
participating small business development centers</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6F353BAF3F1C4648AFF13E6F30267709"><enum>(1)</enum><header>In
general</header><text>The Administrator shall select not more than 20 small
business development centers to receive a grant under the pilot program.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1D7BBB880C0243DBA49FD50DB4F3A02D"><enum>(2)</enum><header>Selection of
programs</header><text>In selecting small business development centers under
paragraph (1), the Administrator may not select—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFB7EFA07A93D4B66BDA3B3554AFC87EB"><enum>(A)</enum><text>more than 2
programs from each of the groups of States described in paragraph (3);
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCEBB9D9EBC874B38989BDAE641D12325"><enum>(B)</enum><text>more than 1
program in any State.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id382A9123D54641088FBBDD46E617598A"><enum>(3)</enum><header>Groupings</header><text display-inline="yes-display-inline">The groups of States described in this
paragraph are the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idE0F06EAA4FAB4B79A4E28C83A5DF522E"><enum>(A)</enum><header>Group
1</header><text display-inline="yes-display-inline">Group 1 shall consist of
Maine, Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode
Island.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1D4F87D3F42A4F0399AD8A4FA600C838"><enum>(B)</enum><header>Group
2</header><text display-inline="yes-display-inline">Group 2 shall consist of
New York, New Jersey, Puerto Rico, and the Virgin Islands.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7C75720420CB432F862A5F6D13BBF580"><enum>(C)</enum><header>Group
3</header><text display-inline="yes-display-inline">Group 3 shall consist of
Pennsylvania, Maryland, West Virginia, Virginia, the District of Columbia, and
Delaware.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF1FCE38D2326448891BCF49711D6C7B6"><enum>(D)</enum><header>Group
4</header><text display-inline="yes-display-inline">Group 4 shall consist of
Georgia, Alabama, North Carolina, South Carolina, Mississippi, Florida,
Kentucky, and Tennessee.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id45AB21FB85A44C4EA4F0FBA73F5953A9"><enum>(E)</enum><header>Group
5</header><text display-inline="yes-display-inline">Group 5 shall consist of
Illinois, Ohio, Michigan, Indiana, Wisconsin, and Minnesota.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDA9F6257CD694265B85B7E5172E41412"><enum>(F)</enum><header>Group
6</header><text display-inline="yes-display-inline">Group 6 shall consist of
Texas, New Mexico, Arkansas, Oklahoma, and Louisiana.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0608CBDC3C5B4CCBB68217706812B3A4"><enum>(G)</enum><header>Group
7</header><text display-inline="yes-display-inline">Group 7 shall consist of
Missouri, Iowa, Nebraska, and Kansas.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2ECF7FD321B44A90B75CE4CDD769589B"><enum>(H)</enum><header>Group
8</header><text display-inline="yes-display-inline">Group 8 shall consist of
Colorado, Wyoming, North Dakota, South Dakota, Montana, and Utah.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idED50D73DF53B4089A71189CDAD8D852E"><enum>(I)</enum><header>Group
9</header><text display-inline="yes-display-inline">Group 9 shall consist of
California, Guam, American Samoa, Hawaii, Nevada, and Arizona.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idBF4FF59A09E0487F9C1902A72DA7060F"><enum>(J)</enum><header>Group
10</header><text display-inline="yes-display-inline">Group 10 shall consist of
Washington, Alaska, Idaho, and Oregon.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id43BF113236FE47298AEED3EAB92A4110"><enum>(4)</enum><header>Deadline for
selection</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idDEA5BD5CCB434315B90A2BE4BA28C4D3"><enum>(d)</enum><header>Use of
funds</header>
<paragraph commented="no" display-inline="no-display-inline" id="id9D4E9240DAA84D27937AD4A6E1DA1EC1"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A participating small
business development center shall use funds provided under the pilot program
to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD07DD3F5B86447068EA8680499609DA4"><enum>(A)</enum><text>create and
distribute informational materials; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDD5547B5958D4590BAFAAC9164660F3C"><enum>(B)</enum><text display-inline="yes-display-inline">conduct training and educational
activities.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0B03E594A58D4FC7B96E63B7FC440460"><enum>(2)</enum><header>Content of
materials</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id7FADE553C8DB495E8ED0509871AD9994"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3552C3E45DF9468DBD50AFA25F1FEE9E"><enum>(B)</enum><header>Health
insurance options</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id3CB00D7408894C04AD3B031266D61BE9"><enum>(e)</enum><header>Grant
amounts</header><text display-inline="yes-display-inline">Each participating
small business development center program shall receive a grant in an amount
equal to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id76EBD3B5C3634358A45402892A74F448"><enum>(1)</enum><text display-inline="yes-display-inline">not less than $150,000 per fiscal year;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC566236E606A4F288FAFF975E825F551"><enum>(2)</enum><text display-inline="yes-display-inline">not more than $300,000 per fiscal
year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id1DC3658A4DA54647B24188209C33ECC1"><enum>(f)</enum><header>Matching
requirement</header><text display-inline="yes-display-inline">Subparagraphs (A)
and (B) of section 21(a)(4) of the <act-name parsable-cite="SBA">Small Business
Act</act-name> (15 U.S.C. 648(a)(4)) shall apply to assistance made available
under the pilot program.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id4F0C4DC6A0CF435DAD3DD5538C9911B9"><enum>704.</enum><header>Reports</header><text display-inline="no-display-inline">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—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idADA86CB231B547E38D4E57A7F1C4B020"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9EA75B571758496AB55A6108EE66CD65"><enum>(2)</enum><text display-inline="yes-display-inline">the number of small business concerns
assisted under the pilot program.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="idFD27258066B348769C2890586DE1E0E6"><enum>705.</enum><header>Authorization
of appropriations</header>
<subsection commented="no" display-inline="no-display-inline" id="id024E5C3FC4FA47D0862965918F4DB835"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">There are authorized
to be appropriated to carry out this title—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id7139373532C646EF8B0BDA46A1BF30A1"><enum>(1)</enum><text display-inline="yes-display-inline">$5,000,000 for the first fiscal year
beginning after the date of enactment of this Act; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC4854A44CB704A3BA3EBDCFD11890958"><enum>(2)</enum><text display-inline="yes-display-inline">$5,000,000 for each of the 3 fiscal years
following the fiscal year described in paragraph (1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9E6E3F2FBE55443B9891571E0CE250E3"><enum>(b)</enum><header>Limitation on
use of other funds</header><text display-inline="yes-display-inline">The
Administrator may carry out the pilot program only with amounts appropriated in
advance specifically to carry out this title.</text>
</subsection></section><enum>VIII</enum><header>Women’s small
business ownership programs</header>
<section id="ID227E1C386D4D4A408B0650293AD46087"><enum>801.</enum><header>Office of
Women’s Business Ownership</header><text display-inline="no-display-inline">Section 29(g) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 656(g))
is amended—</text>
<paragraph id="ID1B36C8B252E84D5B84F6610F5389360E"><enum>(1)</enum><text>in paragraph
(2)—</text>
<subparagraph id="ID846D174A80CB457395735F5290750C97"><enum>(A)</enum><text>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—</text>
<quoted-block id="ID5BCBD7886F394A0A888F48DBEC5F4106" style="OLC">
<subparagraph id="IDA03AB9E8F374491C9EBD9E6527C0D74F" indent="down2"><enum>(I)</enum><text>starting, operating, and growing a
small business concern;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDB2421682A6334A05B2E1683593EE1557"><enum>(B)</enum><text>in subparagraph
(C), by inserting before the period at the end the following: <quote>, the
National Women’s Business Council, and any association of women’s business
centers</quote>; and</text>
</subparagraph></paragraph><paragraph id="IDA673DE6C02C141268882E064FF2366AF"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID139257E7366C4BA6A7A1B6161639B655" style="OLC">
<paragraph id="ID560DABBC2C5C42579432F61C163C04EF"><enum>(3)</enum><header>Programs and
services for women-owned small businesses</header><text>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—</text>
<subparagraph id="ID31E52FC594E243DF8F362288434562C5"><enum>(A)</enum><text>manufacturing;</text>
</subparagraph><subparagraph id="ID736EBCE8ABDB4622A3B294A802683419"><enum>(B)</enum><text>technology;</text>
</subparagraph><subparagraph id="IDDEA4A18570684B4EBA58384BCC71E1B1"><enum>(C)</enum><text>professional
services;</text>
</subparagraph><subparagraph id="ID3FCF67C0DE4C43FBBA0CCE6E77B3BAB1"><enum>(D)</enum><text>retail and
product sales;</text>
</subparagraph><subparagraph id="IDB200AC8ABB0B43FFB64F0F45F5D09971"><enum>(E)</enum><text>travel and
tourism;</text>
</subparagraph><subparagraph id="IDB66AB683D0EA42C287C8E0D9EDFD4F6F"><enum>(F)</enum><text>international
trade; and</text>
</subparagraph><subparagraph id="IDD7999D90BFBC4B4A8ECA5281DFAB92DC"><enum>(G)</enum><text>Federal
Government contract business development.</text>
</subparagraph></paragraph><paragraph id="ID4EEE2E25CE754643BF0158ED1A85314A"><enum>(4)</enum><header>Training</header><text>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.</text>
</paragraph><paragraph id="IDA7191F7C4B484E1D90188FE05AB36A2B"><enum>(5)</enum><header>Grant program
improvement</header><text>The Administrator shall improve the women’s business
center grant proposal process and the programmatic and financial oversight
process by—</text>
<subparagraph id="IDC8C53D8ADA3A466D8FDF98B1B63D76C2"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="ID9E88C7E51E934179B266DE369032EE1C"><enum>(B)</enum><text>providing notice
to grant applicants and recipients of program evaluation criteria, not later
than 12 months before any such evaluation;</text>
</subparagraph><subparagraph id="ID1D7903FFBB28495DBE35297876BD9E4E"><enum>(C)</enum><text>reducing
paperwork and reporting requirements for grant applicants and
recipients;</text>
</subparagraph><subparagraph id="ID976F791C43C54CED98639078EC524A13"><enum>(D)</enum><text>standardizing the
oversight and review process of the Administration; and</text>
</subparagraph><subparagraph id="ID38FDEDFFF19D409DBAC1ED1554A0D68C"><enum>(E)</enum><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID6156C83DADD7451EAD9C15D5CA23A6C3"><enum>802.</enum><header>Women’s
Business Center Program</header>
<subsection id="ID722EDEB54C13419D8F3AC7892AABC71E"><enum>(a)</enum><header>Women’s
Business Center Grants Program</header><text>Section 29 of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 656) is
amended—</text>
<paragraph id="IDC6B2DEADDE554588B689B55668C446A5"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="IDDE99EFC8D7E84FC89ED2630F44C9AEA5"><enum>(A)</enum><text>by redesignating
paragraphs (2), (3), and (4), as paragraphs (3), (4), and (5), respectively;
and</text>
</subparagraph><subparagraph id="ID036315ED84E042129D4E9C372BF6683B"><enum>(B)</enum><text>by inserting
after paragraph (1) the following:</text>
<quoted-block id="IDF677304FB5DA413F9C560197B33154C3" style="OLC">
<paragraph id="IDF030239486F44E8F8D78994DD16595D5"><enum>(2)</enum><text>the term
<term>association of women’s business centers</term> 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;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDFD701223910E4C1E836CBC8A67775C3A"><enum>(2)</enum><text>by striking
subsections (b) through (f) and inserting the following:</text>
<quoted-block id="ID8D6EC3D6DB9D4C7AAC8DDF802BB15AAE" style="OLC">
<subsection id="ID2E39AE3AA56A44FA9D22EE8953F58D7C"><enum>(b)</enum><header>Grants
Authorized</header>
<paragraph id="IDF15A2BAFFFE44D2DBBB70CF4808B78C4"><enum>(1)</enum><header>In
general</header>
<subparagraph id="id07A167FADC494F019FE244AED86C1E28"><enum>(A)</enum><header>Issuance</header><text>The
Administrator may award initial and renewal grants of not more than $150,000
per year, which shall be known as <quote>women’s business center
grants</quote>, to private nonprofit organizations to conduct projects for the
benefit of small business concerns owned and controlled by women.</text>
</subparagraph><subparagraph id="idA53C8A4A111D44EFA8CAA6929A721D33"><enum>(B)</enum><header>Renewals</header><text>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).</text>
</subparagraph><subparagraph id="idB66D99E9823B43E8AB3FC3CD729FA19C"><enum>(C)</enum><header>Equal
allocations</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID0DA3F81AD6FB4A0A80C01A4EE64777DB"><enum>(2)</enum><header>Cooperative
agreement authority</header>
<subparagraph id="IDDC900A2D1D584EF5823CE9EFABB7C4F0"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID2DB59C564B5E4955A905EC56FCC4A03F"><enum>(B)</enum><header>Termination</header>
<clause id="ID4DA3174F30CC43ECA0F42618C16097E9"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="IDE96B39EC2A6A4AC9B01880EF2D17D926"><enum>(ii)</enum><header>Exception</header><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="IDE0801475139B4B3AA7C8EF1308D73F27"><enum>(3)</enum><header>Use of
funds</header><text>Grants awarded under this subsection may be used to provide
training and counseling in the areas of—</text>
<subparagraph id="ID8753F7BF655F4C2D9C585621D8C82028"><enum>(A)</enum><text>pre-business,
business start-up, and business operations;</text>
</subparagraph><subparagraph id="IDDCFEC064678C487A868507171808ACEF"><enum>(B)</enum><text>financial
planning assistance;</text>
</subparagraph><subparagraph id="ID99EF865160344783A81D4DA62502C536"><enum>(C)</enum><text>procurement
assistance;</text>
</subparagraph><subparagraph id="ID34B13D335B5E4C43B81D70A9FD98339D"><enum>(D)</enum><text>management
assistance;</text>
</subparagraph><subparagraph id="IDCF26D1D5B709424798320DEAA2EDA7B8"><enum>(E)</enum><text>marketing
assistance; and</text>
</subparagraph><subparagraph id="id37744A4C6E0B4D278CD51BC8550FE63B"><enum>(F)</enum><text>international
trade.</text>
</subparagraph></paragraph><paragraph id="ID176837C54AF34641B7F1DF371FD50CD9"><enum>(4)</enum><header>Matching
requirement</header>
<subparagraph id="IDA384DDC79D3443BFB6F09CB37B59A7B3"><enum>(A)</enum><header>Women’s
business center grants</header><text>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:</text>
<clause id="IDA1D5B84CEA214E1EBE9A3EBC531D2DAE"><enum>(i)</enum><text>In the first and
second years, 1 non-Federal dollar for each 2 Federal dollars provided under
the 4-year grant.</text>
</clause><clause id="IDFF3D7479F948410E85DC5E6E9DF6B0A6"><enum>(ii)</enum><text>In the third and
fourth years, 1 non-Federal dollar for each Federal dollar provided under the
4-year grant.</text>
</clause><clause id="ID4782181729CF45C383C94D32466D0094"><enum>(iii)</enum><text>In each renewal
period, 1 non-Federal dollar for each Federal dollar provided under the 3-year
grant.</text>
</clause></subparagraph><subparagraph id="ID6B948F784DB947CAA178C2F9BAA80253"><enum>(B)</enum><header>Form of
non-federal contributions</header><text>Not more than <fraction>1/2</fraction>
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.</text>
</subparagraph><subparagraph id="ID32DDBFFCEEE64858838CC14422A24774"><enum>(C)</enum><header>Failure to
obtain non-federal funding</header>
<clause id="ID0A69A90D26B0448DA854E224E6C8A5F9"><enum>(i)</enum><header>Advance
disbursements</header><text>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.</text>
</clause><clause id="ID03AF831AB54F402883785D4188108EB2"><enum>(ii)</enum><header>Ability to
obtain non-federal funding</header><text>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.</text>
</clause></subparagraph><subparagraph id="IDA600D6E11B7F46E898534A7242A430E0"><enum>(D)</enum><header>Form of federal
contributions</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID1CACBCBD18D3452BA2F426379AAECED3"><enum>(5)</enum><header>Application for
an initial grant</header><text>Each organization desiring an initial grant
under this subsection, shall submit to the Administrator an application that
contains—</text>
<subparagraph id="ID5E71A2D94CDF4D98A3D70331A908B761"><enum>(A)</enum><text>a certification
that the applicant—</text>
<clause id="IDD9182E6AF66C46538BD31AD58B85455C"><enum>(i)</enum><text>is a private
nonprofit organization;</text>
</clause><clause id="IDB09F34D3153C48DA9629B021B3E14C55"><enum>(ii)</enum><text>has designated
an executive director or program manager, who may be compensated from grant
funds or other sources, to manage the center; and</text>
</clause><clause id="ID7AF00FA2B02741D69821FE180E394807"><enum>(iii)</enum><text>as a condition
of receiving a grant under this subsection, agrees—</text>
<subclause id="ID20E0D2487FD54FDF9CC3969217F5C55D"><enum>(I)</enum><text>to receive a site
visit as part of the final selection process;</text>
</subclause><subclause id="ID0A14279B4037412D8641E2289C35A8DD"><enum>(II)</enum><text>to undergo an
annual programmatic and financial examination; and</text>
</subclause><subclause id="ID7A53805855714FE7A92C250C83E63305"><enum>(III)</enum><text>to the maximum
extent practicable, to remedy any problems identified pursuant to the site
visit or examination under subclauses (I) and (II);</text>
</subclause></clause></subparagraph><subparagraph id="ID75FF5B6815D24379A1A3E02A0DA3F704"><enum>(B)</enum><text>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);</text>
</subparagraph><subparagraph id="ID86845F7B77F143168B9F6FF7597D8731"><enum>(C)</enum><text>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;</text>
</subparagraph><subparagraph id="ID4E059EEBA59941C5AFF61C1C02AAE558"><enum>(D)</enum><text>information
demonstrating the effective experience of the applicant in—</text>
<clause id="IDD8B0F1E1E1694197A1A8D8D8FF103ABB"><enum>(i)</enum><text>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;</text>
</clause><clause id="IDAB819A1AB47C417AA03D0B4B50F59EC4"><enum>(ii)</enum><text>providing
training and services to a representative number of women who are both socially
and economically disadvantaged; and</text>
</clause><clause id="ID88C4853BD82241ADBD8BF40B73B5DEF5"><enum>(iii)</enum><text>using resource
partners of the Administration and other entities, such as universities;</text>
</clause></subparagraph><subparagraph id="IDABB8FD7A1DD04D7CBD3FF0D3902D4799"><enum>(E)</enum><text>a 4-year plan
that projects the ability of the women’s business center site for which an
initial grant is sought—</text>
<clause id="IDD6316B179E824218B04E7D8A34D45940"><enum>(i)</enum><text>to serve women
who are business owners or potential owners in the future by improving training
and counseling activities; and</text>
</clause><clause id="IDAA1A08F930E34DA5AC06CF3DB82631A8"><enum>(ii)</enum><text>to provide
training and services to a representative number of women who are both socially
and economically disadvantaged; and</text>
</clause></subparagraph><subparagraph id="ID69915F18F8304245B65A3F640EF47D47"><enum>(F)</enum><text>any additional
information that the Administrator may reasonably require.</text>
</subparagraph></paragraph><paragraph id="ID05A5531FEC1847079E830C35BB5204E8"><enum>(6)</enum><header>Review and
approval of applications for an initial grant</header>
<subparagraph id="IDC10970BC8C064C79A7579F08E2040F40"><enum>(A)</enum><header>In
general</header><text>The Administrator shall—</text>
<clause id="IDE180DC61475141729AD22B3FB2FE044C"><enum>(i)</enum><text>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</text>
</clause><clause id="IDD25281AFAA1A4835A2AEFEE5D21D66AF"><enum>(ii)</enum><text>as part of the
final selection process, conduct a site visit at each women’s business center
for which an initial grant is sought.</text>
</clause></subparagraph><subparagraph id="ID8CAFC41ACCF44B0180F4F5DC5DB04AF0"><enum>(B)</enum><header>Selection
criteria</header>
<clause id="ID95921EB111A64DDDAFFFCB9CF2E70655"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="ID6FC520BB051644FD9F36272D20FAA7F4"><enum>(ii)</enum><header>Required
criteria</header><text>The selection criteria for an initial grant under clause
(i) shall include—</text>
<subclause id="ID0546E1D005CB4C07AAD37327BB4FF4D6"><enum>(I)</enum><text>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;</text>
</subclause><subclause id="ID82734EB958674B6B8B75320DE0DD75C3"><enum>(II)</enum><text>the ability of
the applicant to commence a project within a minimum amount of time;</text>
</subclause><subclause id="IDBB93A8B89D234A618C8BB84BB0941F1C"><enum>(III)</enum><text>the ability of
the applicant to provide training and services to a representative number of
women who are both socially and economically disadvantaged; and</text>
</subclause><subclause id="ID5C1C230FCA0044AB943B49234A6BFE06"><enum>(IV)</enum><text>the location for
the women’s business center site proposed by the applicant.</text>
</subclause></clause></subparagraph><subparagraph id="IDB0B96B157D3B4B3A8542DEFA45835696"><enum>(C)</enum><header>Record
retention</header><text>The Administrator shall maintain a copy of each
application submitted under this paragraph for not less than 7 years.</text>
</subparagraph></paragraph><paragraph id="ID836A1C1A11D54EC3A680C5C72B8268C8"><enum>(7)</enum><header>Application for
a renewal grant</header><text>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—</text>
<subparagraph id="ID53681650A0CD4AE1A73D82D2823BA541"><enum>(A)</enum><text>a certification
that the applicant—</text>
<clause id="IDEDBC4D3F11A44C62BE20B17EFDC1BED6"><enum>(i)</enum><text>is a private
nonprofit organization;</text>
</clause><clause id="ID27B0C81C976C4704A47ABD8F68BBC533"><enum>(ii)</enum><text>has designated
an executive director or program manager to manage the center; and</text>
</clause><clause id="IDC086D2AD946C412EB4FF64D6BBB286A9"><enum>(iii)</enum><text>as a condition
of receiving a grant under this subsection, agrees—</text>
<subclause id="ID6BC36D2AB684489298C2C79C61F8DC95"><enum>(I)</enum><text>to receive a site
visit as part of the final selection process;</text>
</subclause><subclause id="ID2055EBDACD0646F28908B4CC36E77F66"><enum>(II)</enum><text>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</text>
</subclause><subclause id="IDAE1DB1E3C0924D959DF0A9A0A776D579"><enum>(III)</enum><text>to the maximum
extent practicable, to remedy any problems identified pursuant to the site
visit or examination under subclauses (I) and (II);</text>
</subclause></clause></subparagraph><subparagraph id="ID7EC9D92349EB44279D49AC2978781988"><enum>(B)</enum><text>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);</text>
</subparagraph><subparagraph id="ID3C1D158DF3C44772A73EC4D14585C4F3"><enum>(C)</enum><text>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;</text>
</subparagraph><subparagraph id="ID3A2D964429BF41E1875131C89313198E"><enum>(D)</enum><text>information
demonstrating the utilization of resource partners of the Administration and
other entities;</text>
</subparagraph><subparagraph id="IDE5B7F735E9844E1BBDD5E11055A12891"><enum>(E)</enum><text>a 3-year plan
that projects the ability of the women’s business center site for which a
renewal grant is sought—</text>
<clause id="ID6D0A511FDA22476F93469B5B65DEEBB0"><enum>(i)</enum><text>to serve women
who are business owners or potential owners in the future by improving training
and counseling activities; and</text>
</clause><clause id="ID14B33C8723AB48099B04A51E69173473"><enum>(ii)</enum><text>to provide
training and services to a representative number of women who are both socially
and economically disadvantaged; and</text>
</clause></subparagraph><subparagraph id="IDF11B6F2370B54B41AA0DA64EC1D1B040"><enum>(F)</enum><text>any additional
information that the Administrator may reasonably require.</text>
</subparagraph></paragraph><paragraph id="ID2BD2E473B4294718B7D1F9DF09E862E7"><enum>(8)</enum><header>Review and
approval of applications for a renewal grant</header>
<subparagraph id="IDAF86985367494F26937A7070505FFF1E"><enum>(A)</enum><header>In
general</header><text>The Administrator shall—</text>
<clause id="IDBAC131C9D35D4C72A0A2E9A332E26F27"><enum>(i)</enum><text>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</text>
</clause><clause id="ID57D19E6A57F049578076F5F6886A1D07"><enum>(ii)</enum><text>as part of the
final selection process, conduct a site visit at each women’s business center
for which a renewal grant is sought.</text>
</clause></subparagraph><subparagraph id="IDCC8343A2D4634F9297E621AE3A36A0F9"><enum>(B)</enum><header>Selection
criteria</header><text>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.</text>
</subparagraph><subparagraph id="ID4C76712AF9C64AC2B321B1F5C4578826"><enum>(C)</enum><header>Conditions for
continued funding</header><text>In determining whether to renew a grant or
cooperative agreement with a women’s business center, the Administrator—</text>
<clause id="ID744AA5776C184CC4A9E2EB2FA8B2659A"><enum>(i)</enum><text>shall consider
the results of the most recent evaluation of the center, and, to a lesser
extent, previous evaluations; and</text>
</clause><clause id="IDA0E04129823C489C88A09BF814A55555"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="ID914CA650629B4373AB409C5A97CB55D1"><enum>(D)</enum><header>Continuing
grant and cooperative agreement authority</header>
<clause id="IDFCAABDDFE3564BB6BE80915CFDB52ECC"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="ID9E598C37BE8B408CBB49E00061535AB4"><enum>(ii)</enum><header>Renewal</header><text>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.</text>
</clause></subparagraph><subparagraph id="ID85F6C671372943A6907B8EE6060BFCF2"><enum>(E)</enum><header>Record
retention</header><text>The Administrator shall maintain a copy of each
application submitted under this paragraph for not less than 7 years.</text>
</subparagraph></paragraph><paragraph id="ID1E1037D0315A42A2AF21A2F18914FD77"><enum>(9)</enum><header>Data
collection</header><text>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—</text>
<subparagraph id="ID824F8C7E7A8F48E29ECDDDE6217D7D17"><enum>(A)</enum><text>the number of
individuals counseled or trained;</text>
</subparagraph><subparagraph id="IDDF980635CBA24238AB826490F4363B21"><enum>(B)</enum><text>the number of
hours of counseling provided;</text>
</subparagraph><subparagraph id="ID1E7C9232C45142778CF2CC3CCA05773E"><enum>(C)</enum><text>the number of
workshops conducted;</text>
</subparagraph><subparagraph id="ID304B45133B1F4F618CD2EA402AE3154C"><enum>(D)</enum><text>the number of
start-up small business concerns formed; and</text>
</subparagraph><subparagraph id="IDBCACC343B8754E08B5BCFD7D5534F766"><enum>(E)</enum><text>the number of
jobs created or maintained at assisted small business concerns.</text>
</subparagraph></paragraph><paragraph id="ID1B5F1D9E1CBC42F4B7E8503BB7596338"><enum>(10)</enum><header>Privacy
requirements</header>
<subparagraph id="ID34A5B2D8665745F0919AD0A874D5C049"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="ID7A70A284F2214F21B01406677251A6FC"><enum>(i)</enum><text>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</text>
</clause><clause id="ID96F079FC002B4E92B69634C2C36D896F"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="IDA8094531E679432EA38E832AE6A06265"><enum>(B)</enum><header>Administration
use of information</header><text>This subsection shall not—</text>
<clause id="ID18D81A2830C949B996F017C005983DA5"><enum>(i)</enum><text>restrict
Administration access to program activity data; or</text>
</clause><clause id="ID4482EBF8FB0E45A49BD2997A0F19C922"><enum>(ii)</enum><text>prevent the
Administration from using client information (other than the information
described in subparagraph (A)) to conduct client surveys.</text>
</clause></subparagraph><subparagraph id="ID8A01CB1E97914F8EA887234D14647B28"><enum>(C)</enum><header>Regulations</header><text>The
Administrator shall issue regulations to establish standards for requiring
disclosures during a financial audit under subparagraph (A)(ii).</text>
</subparagraph></paragraph><paragraph id="ID5949B51D83DD47AAB9567A9487FA8725"><enum>(11)</enum><header>Transition
rules</header>
<subparagraph id="ID70AFA647265E48468DB6F6B9F675C1FB"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="ID264E0524E1234CA6A9785CCDB2775DB7"><enum>(B)</enum><header>Extension</header><text>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).</text>
</subparagraph><subparagraph id="IDA9D277A91DD6422890DD839048A3AA74"><enum>(C)</enum><header>Effect on
certain existing projects and renewal authority</header><text>A project being
conducted by a women’s business center under this subsection on the day before
the date of enactment of the <short-title>Small Business
Reauthorization and Improvements Act of 2006</short-title>—</text>
<clause id="IDA816DBDFD5A54C318AB4E881999422C6"><enum>(i)</enum><text>as a 5-year
project, shall remain in full force and effect under the terms and for the
duration of that agreement; and</text>
</clause><clause id="IDA0876EB9DA7B4ECC9B7BBFA89439DAE7"><enum>(ii)</enum><text>shall be
eligible to apply for a 3-year renewal grant funded at a level equal to not
more than $150,000 per year.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDD16561B85A8D45E5862FC8C5BE9DEF18"><enum>(c)</enum><header>Associations of
Women’s Business Centers</header>
<paragraph id="IDC28761F73268410E9FF1D02832C068FF"><enum>(1)</enum><header>Recognition</header><text>The
Administrator shall recognize the existence and activities of any association
of women’s business centers established to address matters of common
concern.</text>
</paragraph><paragraph id="IDFE366C78FD0F492994A036B0F516E9B4"><enum>(2)</enum><header>Consultation</header><text>The
Administrator shall consult with each association of women’s business centers
to develop—</text>
<subparagraph id="ID7678A1D5A7A54401BAA40207EBE334B1"><enum>(A)</enum><text>a training
program for the staff of the women’s business centers and the Administration;
and</text>
</subparagraph><subparagraph id="IDFD0B22418CF24F36B5D5154E705F4631"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDF22CF61A5E9B4DEA8858F2E753A29521"><enum>(b)</enum><header>Conforming
Amendments</header><text>Section 29 of the <act-name parsable-cite="SBA">Small
Business Act</act-name> (15 U.S.C. 656) is amended—</text>
<paragraph id="ID8856CFB7FBD54580B9F17E894DF845C7"><enum>(1)</enum><text>by redesignating
subsections (g), (h), (i), (j), and (k) as subsections (d), (e), (f), (g), and
(h), respectively;</text>
</paragraph><paragraph id="ID6148E914B2624113AB4EDC433F21CCCF"><enum>(2)</enum><text>in subsection
(e)(2), as redesignated by paragraph (1) of this subsection, by striking
<quote>to award a contract (as a sustainability grant) under subsection (l)
or</quote>;</text>
</paragraph><paragraph id="ID94C8CD2E24A542A1B8F91636070C24DD"><enum>(3)</enum><text>in subsection
(g)(1), as redesignated by paragraph (1) of this subsection, by striking
<quote>The Administration</quote> and inserting <quote>Not later than November
1st of each year, the Administrator</quote>;</text>
</paragraph><paragraph id="IDFA1C9A88D3D34DB5A9FA0EAEBAD35E51"><enum>(4)</enum><text>in subsection
(h), as redesignated by paragraph (1) of this subsection—</text>
<subparagraph id="IDCE663A4DBB584022AD367849C4F16A1F"><enum>(A)</enum><text>by striking
paragraphs (1) and (2) and inserting the following:</text>
<quoted-block id="ID624414D38C5440B89E622C1FB15C39BA" style="OLC">
<paragraph id="ID3DAFF170756F42B6BF66445F2EAE51E6"><enum>(1)</enum><header>In
general</header><text>There are authorized to be appropriated to the
Administration to carry out this section, to remain available until
expended—</text>
<subparagraph id="ID6AA8B51D914946E6BFF2668A6161ACF2"><enum>(A)</enum><text>$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;</text>
</subparagraph><subparagraph id="ID9D02DD5E7CA54EC4BFDE56E79552FA46"><enum>(B)</enum><text>$16,000,000 for
fiscal year 2008; and</text>
</subparagraph><subparagraph id="ID2C65FE772B75403C9A83A98DC10524C3"><enum>(C)</enum><text>$17,500,000 for
fiscal year 2009.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC55F4E5819974E7182F68729FF8FD923"><enum>(2)</enum><header>Use of
amounts</header><text display-inline="yes-display-inline">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.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDE3F449343D2C48BCBC41DEA0CC1B707D"><enum>(B)</enum><text>by striking
paragraph (4); and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7E3C6517F5F94F53BEB3A7F648050C8C"><enum>(5)</enum><text>by striking
subsection (l).</text>
</paragraph></subsection></section><section id="ID75E8DF2FC3D6464AB4F1CDFC74F1411D"><enum>803.</enum><header>National
Women’s Business Council</header>
<subsection id="ID42EDDEE6F1A54B309F4DD33379D00574"><enum>(a)</enum><header>Cosponsorship
Authority</header><text>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:</text>
<quoted-block id="IDEBB7199190C84821B9F7BCAC6AEDC06C" style="OLC">
<subsection id="ID7A2D4025872B4EDEAD0376F066ACE874"><enum>(f)</enum><header>Cosponsorship
Authority</header><text>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 <act-name parsable-cite="SBA">Small Business
Act</act-name> (15 U.S.C. 637(b)(1)(A)), to carry out its duties under this
section.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID88CD706FA228402E9F3856574FCB9676"><enum>(b)</enum><header>Membership</header><text>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:</text>
<quoted-block id="IDBCF25F2A2AF14E368DE0AA4240EC7822" style="OLC">
<paragraph id="ID71401774FF7A48E68B050F2252C80F86"><enum>(3)</enum><header>Representation
of member organizations</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID9F2FD3F4FC8744B5B38820628C684AA1"><enum>(c)</enum><header>Establishment
of working groups</header><text>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:</text>
<quoted-block id="ID425146623F5149CB8572CF09FE0D5267" style="OLC">
<section id="IDD446CE3C61204901B59D38851E407EE6"><enum>411.</enum><header>Working
groups</header>
<subsection id="ID1c615cba8cad4a7c9e728e88e7245d1c"><enum>(a)</enum><header>Establishment</header><text>There
are established within the Council, working groups, as directed by the
chairperson.</text>
</subsection><subsection id="ID1716575A71E745E081562E5AC0FA353B"><enum>(b)</enum><header>Duties</header><text>The
working groups established under subsection (a) shall perform such duties as
the chairperson shall
direct.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDCFA994D72E4348C3AF4F00522E2D3504"><enum>(d)</enum><header>Clearinghouse
for Historical Documents</header><text>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:</text>
<quoted-block id="IDBF24E1B4117243C0AF1B82DC78006081" style="OLC">
<subsection id="IDF1A8678E633A40C1AC0B141D0CE2BAED"><enum>(c)</enum><header>Clearinghouse
for Historical Documents</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID6A51CF50AEF2479890C0EB5A68C0DE48"><enum>(e)</enum><header>Authorization
of Appropriations</header><text>Section 410(a) of the Women’s Business
Ownership Act of 1988 (15 U.S.C. 7110(a)) is amended by striking <quote>2001
through 2003, of which $550,000</quote> and inserting <quote>2007 through 2009,
of which not less than 30 percent</quote>.</text>
</subsection></section><section id="ID1AC88FAECF0B42BBADEC815B1F1354D8"><enum>804.</enum><header>Interagency
Committee on Women’s Business Enterprise</header>
<subsection id="ID614937C9389E43E98A7BADA9487D8F31"><enum>(a)</enum><header>Chairperson</header><text>Section
403(b) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7103(b)) is
amended—</text>
<paragraph id="ID28FB62EA6E3346AB85BFF3D3EABC1989"><enum>(1)</enum><text>by striking
<quote>Not later</quote> and inserting the following:</text>
<quoted-block id="IDA041608916794F719770BA18D15326E4" style="OLC">
<paragraph id="ID1CAA4AF69D6F4005B70E0B3C52CA0242"><enum>(1)</enum><header>In
general</header><text>Not later</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID73F1AF47DB9A4B12A61E16AE07639A60"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID6087880C16CB4F3BBEBDA6AA31F02B7D" style="OLC">
<paragraph id="IDB1B1EDA7E2DC4103AC8AB1230D0F5E44"><enum>(2)</enum><header>Vacancy</header><text>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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDD403343833B1497AAC6D4C41D2E5C27D"><enum>(b)</enum><header>Policy Advisory
Group</header><text>Section 401 of the Women’s Business Ownership Act of 1988
(15 U.S.C. 7101) is amended—</text>
<paragraph id="ID1C959F9E7AD642CC890E8B36D4C28BD2"><enum>(1)</enum><text>by striking
<quote>There</quote> and inserting the following:</text>
<quoted-block id="IDDAD05F475D974557B00EE4064CF567E8" style="OLC">
<subsection id="IDE11606C44B0F4D5AA05FE021732607A2"><enum>(a)</enum><header>In
General</header><text>There</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDA9545DAD1F2C4C9684711365CC01A816"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID128339EAB399492EB3533323EE80A1AF" style="OLC">
<subsection id="IDD8C7ED4D1DAB468BBE310B63C0D312DC"><enum>(b)</enum><header>Policy Advisory
Group</header>
<paragraph id="ID9FE66D4B4C2140D183E041376EE9A883"><enum>(1)</enum><header>Establishment</header><text>There
is established a Policy Advisory Group to assist the chairperson in developing
policies and programs under this Act.</text>
</paragraph><paragraph id="IDF2F4597C5B9C47C5A90F10DACA02EF1D"><enum>(2)</enum><header>Membership</header><text>The
Policy Advisory Group shall be composed of 7 policy making officials, of
whom—</text>
<subparagraph id="ID9C55020E50944C98AF4C2BCA5D86DECD"><enum>(A)</enum><text>1 shall be a
representative of the Small Business Administration;</text>
</subparagraph><subparagraph id="ID4239AADD07D34060BD6AB62046024A4B"><enum>(B)</enum><text>1 shall be a
representative of the Department of Commerce;</text>
</subparagraph><subparagraph id="ID9993F8E52AB04BEB90A5A017F264215E"><enum>(C)</enum><text>1 shall be a
representative of the Department of Labor;</text>
</subparagraph><subparagraph id="IDF0E4FAFC8CC74C12BADDF7D29BA3F419"><enum>(D)</enum><text>1 shall be a
representative of the Department of Defense;</text>
</subparagraph><subparagraph id="ID363E00B9A1AB4B82B314E4DAB729CE71"><enum>(E)</enum><text>1 shall be a
representative of the Department of the Treasury; and</text>
</subparagraph><subparagraph id="ID173FB8F39ECB4D72B193BE6B308D41CE"><enum>(F)</enum><text>2 shall be
representatives of the
Council.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="ID403E8EDF3FBB4344AEF6781F7AD6CC61"><enum>805.</enum><header>Preserving the
independence of the National Women’s Business Council</header>
<subsection id="ID3B025B1878104804952A9BF2766EE0F5"><enum>(a)</enum><header>Findings</header><text>Congress
finds the following:</text>
<paragraph id="ID03F5AB73562A434E9980CC33F7039656"><enum>(1)</enum><text>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—</text>
<subparagraph id="ID9CCF8D7CDB0A426AA9D0C6E161022563"><enum>(A)</enum><text>the
President;</text>
</subparagraph><subparagraph id="ID4E7382991CFA41BCB55B065B4A2A29D4"><enum>(B)</enum><text>Congress;</text>
</subparagraph><subparagraph id="ID4503341311734014B1DA51A83C0B696C"><enum>(C)</enum><text>the Interagency
Committee on Women’s Business Enterprise; and</text>
</subparagraph><subparagraph id="ID809F581108DA47B28BE4E721F3077C82"><enum>(D)</enum><text>the
Administrator.</text>
</subparagraph></paragraph><paragraph id="ID4906E77A96A04C308D591D4DA5668A9F"><enum>(2)</enum><text>The members of
the National Women’s Business Council are small business owners,
representatives of business organizations, and representatives of women’s
business centers.</text>
</paragraph><paragraph id="IDF414CBF196BB426DA14A067F097A2F8D"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="IDD14267918DC2460DB83479E8D6432366"><enum>(4)</enum><text>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).</text>
</paragraph></subsection><subsection id="IDA4CF2725F0124961A2305A5F46764BDE"><enum>(b)</enum><header>Maintenance of
Partisan Balance</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="idFF9B0A31166F4001AA1E54D843206368" style="OLC">
<paragraph id="ID45E0E6BEB5BD4FDF8C95933515DACE31"><enum>(4)</enum><header>Partisan
balance</header><text>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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID90CA310DB1424E7FAFD39AB7EB6AE7D5"><enum>(5)</enum><header>Accountability</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>IX</enum><header>International
trade</header>
<section id="IDf425bfb234764304ac0d6296c9f1a6c3"><enum>901.</enum><header>Small Business
Administration Associate Administrator for International Trade</header>
<subsection id="ID75ab5272b2864772975568ddd3b73eb7"><enum>(a)</enum><header>Establishment</header><text>Section
22(a) of the Small Business Act (15 U.S.C. 649(a)) is amended by adding at the
end the following: <quote>The head of the Office shall be the Associate
Administrator for International Trade, who shall be responsible to the
Administrator.</quote>.</text>
</subsection><subsection id="IDcb2c2a78164842f49466916e7cfa2106"><enum>(b)</enum><header>Authority for
Additional Associate Administrator</header><text>Section 4(b)(1) of the Small
Business Act (15 U.S.C. 633(b)(1)) is amended—</text>
<paragraph id="ID81c276fe27314517ae25818c7148dffb"><enum>(1)</enum><text>in the fifth
sentence, by striking <quote>five Associate Administrators</quote> and
inserting <quote>Associate Administrators</quote>; and</text>
</paragraph><paragraph id="ID1382c03cf7654383a2a980f63e38186e"><enum>(2)</enum><text>by adding at the
end the following: <quote>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.</quote>.</text>
</paragraph></subsection><subsection id="IDfc7e7893e2624bb0908180457f22c3b0"><enum>(c)</enum><header>Discharge of
Administration International Trade Responsibilities</header><text>Section 22 of
the Small Business Act (15 U.S.C. 649) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idD879524745A7490BA664B97901C0AAFC" style="OLC">
<subsection id="IDcac3138e6c4849dc849f4eb93932fc75"><enum>(h)</enum><header>Discharge of
Administration International Trade Responsibilities</header><text display-inline="yes-display-inline">The Administrator shall ensure that—</text>
<paragraph id="ID1057c4f9b8674cf1898a64d992af95bc"><enum>(1)</enum><text>the
responsibilities of the Administration regarding international trade are
carried out through the Associate Administrator for International Trade;</text>
</paragraph><paragraph id="IDcc9b114e37764f0c9c9976db71f48a48"><enum>(2)</enum><text>the Associate
Administrator for International Trade has sufficient resources to carry out
such responsibilities; and</text>
</paragraph><paragraph id="ID0619e2bb7316469e8856f03cac4c1f31"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDab5ce1ead7074fedb62cc2bd7ce2b1ca"><enum>(d)</enum><header>Role of
Associate Administrator in carrying out international trade
policy</header><text>Section 2(b)(1) of the Small Business Act (15 U.S.C.
631(b)(1)) is amended in the matter preceding subparagraph (A)—</text>
<paragraph id="ID03f2c910f0d9428498b6b25ebd90c4cc"><enum>(1)</enum><text>by inserting
<quote>the Administrator of</quote> before <quote>the Small Business
Administration</quote>; and</text>
</paragraph><paragraph id="ID21abd79cd62b4194b203b972fa44ede1"><enum>(2)</enum><text>by inserting
<quote>through the Associate Administrator for International Trade, and</quote>
before <quote>in cooperation with</quote>.</text>
</paragraph></subsection><subsection id="IDae0a0ee644d34ad49df261005f08b609"><enum>(e)</enum><header>Technical
amendment</header><text>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.</text>
</subsection><subsection id="ID922cb62006fd49208a0abb2bf4e2bf1e"><enum>(f)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section id="IDc56c99be3ea04563ba814f5cac112802"><enum>902.</enum><header>Office of
International Trade</header><text display-inline="no-display-inline">Section 22
of the Small Business Act (15 U.S.C. 649) is amended—</text>
<paragraph id="ID22af7c4e644d454b80df28035c5ae662"><enum>(1)</enum><text>by striking
<quote><header-in-text level="section" style="OLC">SEC. 22.</header-in-text>
(a) There</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idB7496D1543A04D349E7C2D1B6C3E82FB" style="OLC">
<section id="IDda057987d26641529918e81a0b36f5ea"><enum>22.</enum><header>Office of
International Trade</header>
<subsection id="id7A0D319C4DA240548502759D13FD1023"><enum>(a)</enum><header>Establishment</header><text>There</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDc6dc4a5b50c44b68ab633a89741a7ecb"><enum>(2)</enum><text>in subsection
(a), by inserting <quote>(referred to in this section as the
<quote>Office</quote>),</quote> after <quote>Trade</quote>;</text>
</paragraph><paragraph id="ID32e016cfcdc2471980828936aff0c5a0"><enum>(3)</enum><text>in subsection
(b)—</text>
<subparagraph id="ID2cd8ff5a9b354b208fcf57b3e2dabcb2"><enum>(A)</enum><text>by striking
<quote>The Office</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id32240058E4DA4E6994A7E92D4D0BCB31" style="OLC">
<subsection id="ID7915ac308f084772b797b86c19d723f3"><enum>(b)</enum><header>Trade
distribution network</header><text>The Office, including United States Export
Assistance Centers (referred to as <quote>one-stop shops</quote> in section
2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C.
4721(b)(8)) and as <quote>export centers</quote> in this
section)</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID4c5d84983a454e8aba5a9100261bc452"><enum>(B)</enum><text>by amending
paragraph (1) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id19A84D82CFA5411CB4765BE468062ACB" style="OLC">
<paragraph id="ID2bfbc8f3384e46349862c840e57d9830"><enum>(1)</enum><text>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—</text>
<subparagraph id="ID3a942e73d52f4d7ea5770bacc1414060"><enum>(A)</enum><text>trade
promotion;</text>
</subparagraph><subparagraph id="ID2011228ac39143c0bf454cb2da1e29d7"><enum>(B)</enum><text>trade
finance;</text>
</subparagraph><subparagraph id="ID0faf353822ed40cbbe1734dee18b5de2"><enum>(C)</enum><text>trade
adjustment;</text>
</subparagraph><subparagraph id="ID83e1de5ee64a4ef4926613b9e2e2bf98"><enum>(D)</enum><text>trade remedy
assistance; and</text>
</subparagraph><subparagraph id="ID3681f106a5404a3c972e934117a819fd"><enum>(E)</enum><text>trade data
collection.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID54d372ba63d4448a939a1f619e7fe4b1"><enum>(4)</enum><text>in subsection
(c)—</text>
<subparagraph id="ID9b1cf04e5b5a45af8ba3ae01174f9565"><enum>(A)</enum><text>by redesignating
paragraphs (1) through (8) as paragraphs (2) through (9), respectively;</text>
</subparagraph><subparagraph id="ID1321e32ec9ab45be84d20383647df98c"><enum>(B)</enum><text>by inserting
before paragraph (2), as so redesignated, the following:</text>
<quoted-block display-inline="no-display-inline" id="id9219DD5D86B349DB972334E342519258" style="OLC">
<paragraph id="ID7902fbf8c8d4410ebc07ed7340270abe"><enum>(1)</enum><text>establish annual
goals for the Office relating to—</text>
<subparagraph id="ID8a2cc358674b4a91840be72e7db1a170"><enum>(A)</enum><text>enhancing the
exporting capability of small business concerns and small manufacturers;</text>
</subparagraph><subparagraph id="ID6fb1cdebb96740e1834b5c93ecb91767"><enum>(B)</enum><text>facilitating
technology transfers;</text>
</subparagraph><subparagraph id="ID801b4baddf4644f5b34bd0aef902da9f"><enum>(C)</enum><text>enhancing
programs and services to assist small business concerns and small manufacturers
to compete effectively and efficiently against foreign entities;</text>
</subparagraph><subparagraph id="ID7bb14f64b5ed4dc4b8062ff787e6a0b7"><enum>(D)</enum><text>increasing the
access to capital by small business concerns;</text>
</subparagraph><subparagraph id="ID014b770751c7451eb1a71bcf17788ea1"><enum>(E)</enum><text>disseminating
information concerning Federal, State, and private programs and initiatives;
and</text>
</subparagraph><subparagraph id="ID8e3c209d8f464c058d80e73fa959ea51"><enum>(F)</enum><text>ensuring that the
interests of small business concerns are adequately represented in trade
negotiations;</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID0613389f2e834f918cf07875c4877bd7"><enum>(C)</enum><text>in paragraph (2),
as so redesignated, by striking <quote>mechanism for</quote> and all that
follows through <quote>(D)</quote> and inserting the
following:</text>
<quoted-block display-inline="yes-display-inline" id="id6C5BC2B7E9F849E39A936CC1E947E64C" style="OLC">
<text>mechanism
for—</text><subparagraph id="ID4d572bf91609423491d3d6a0682f8cf0"><enum>(A)</enum><text>identifying
subsectors of the small business community with strong export potential;</text>
</subparagraph><subparagraph id="ID518e17e9254c4d4789e291a8ac50090f"><enum>(B)</enum><text>identifying areas
of demand in foreign markets;</text>
</subparagraph><subparagraph id="ID6653280a846943118e156fa4dfbd1052"><enum>(C)</enum><text>prescreening
foreign buyers for commercial and credit purposes; and</text>
</subparagraph><subparagraph id="ID2a93ecd958ec4e9db989f97bbd364520"><enum>(D)</enum>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDa78aa80954504cecb654cf5687f8660c"><enum>(D)</enum><text>in paragraph (9),
as so redesignated—</text>
<clause id="id03D77C449E644BE49643B7DBC3DE8936"><enum>(i)</enum><text>in
the matter preceding subparagraph (A)—</text>
<subclause id="ID07827cd5bc09485a98ab46e267f9cbac"><enum>(I)</enum><text>by striking
<quote>full-time export development specialists to each Administration regional
office and assigning</quote>; and</text>
</subclause><subclause id="ID332c03b0a32044259dabf8e74b770cf3"><enum>(II)</enum><text>by striking
<quote>office. Such specialists</quote> and inserting <quote>office and
providing each Administration regional office with a full-time export
development specialist, who</quote>;</text>
</subclause></clause><clause id="IDbb412155b65342cca2382bbd387ad637"><enum>(ii)</enum><text>in
subparagraph (D), by striking <quote>and</quote> at the end;</text>
</clause><clause id="IDda5c1e5bfe1346e0804cdfaf9f858c40"><enum>(iii)</enum><text>in subparagraph
(E), by striking the period at the end and inserting a semicolon; and</text>
</clause><clause id="ID106da6cf85f04acfbddfa64a495bbf71"><enum>(iv)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idB616F30261E745ACA58B9C85C47F058E" style="OLC">
<subparagraph id="ID7a4c5bbd188343939860ea607b4a3621"><enum>(F)</enum><text>participate
jointly with employees of the Office in an annual training program that focuses
on current small business needs for exporting; and</text>
</subparagraph><subparagraph id="ID93f466d0219e4a18b76d0fa8a83a0c12"><enum>(G)</enum><text>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.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph id="ID8015ca327c244461ac9873e86b47fea5"><enum>(5)</enum><text>in subsection
(d)—</text>
<subparagraph id="IDa20cb07c6a014c03ac19556592766c3a"><enum>(A)</enum><text>by inserting
<quote><header-in-text level="subsection" style="OLC">Export financing
programs</header-in-text>.—</quote> after <quote>(d)</quote>;</text>
</subparagraph><subparagraph id="IDa0bbd8e7f62645ce83fb6e46b83870ee"><enum>(B)</enum><text>by redesignating
paragraphs (1) through (5) as clauses (i) through (v), respectively, and
adjusting the margins accordingly;</text>
</subparagraph><subparagraph id="id5FCE1830C7504B2A8DD0C00882ADFA91"><enum>(C)</enum><text>by striking
<quote>The Office shall work in cooperation</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id9E264862D807493893450C7F89DCF000" style="OLC">
<paragraph id="id2D927B14617E4419AD7643AE46F3AD47"><enum>(1)</enum><header>In
general</header><text>The Office shall work in
cooperation</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID54b3444178a3484fb56b42a5d14bcf41"><enum>(D)</enum><text>by striking
<quote>To accomplish this goal, the Office shall work</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id5C81D58FFCE04FF287A6E3220DC77C61" style="OLC">
<paragraph id="id45ECFE8807754C35980407C34A4A2A11"><enum>(2)</enum><header>Trade financial
specialist</header><text>To accomplish the goal established under paragraph
(1), the Office shall—</text>
<subparagraph id="IDe197db93531a4e35963be8a676234033"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="IDf6d122a41185446c87d3228730989126"><enum>(B)</enum><text>work</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDdb6b9e256ef7410db9b2ff3add2721ec"><enum>(6)</enum><text>in subsection
(e), by inserting <quote><header-in-text level="subsection" style="OLC">Trade
remedies</header-in-text>.—</quote> after <quote>(e)</quote>;</text>
</paragraph><paragraph id="IDb6568742f0154baf8758ea3e1de74d9a"><enum>(7)</enum><text>by amending
subsection (f) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idBCA150A041BB4F60B50B0C1B8500D709" style="OLC">
<subsection id="ID7c23a8d914cb4da8970cf41467e3b377"><enum>(f)</enum><header>Reporting
requirement</header><text>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—</text>
<paragraph id="IDd4be41934f1f4901b808015d0718d96d"><enum>(1)</enum><text>a description of
the progress of the Office in implementing the requirements of this
section;</text>
</paragraph><paragraph id="IDc947da1f98f44618b4f50c7299978d76"><enum>(2)</enum><text>the destinations
of travel by Office staff and benefits to the Administration and to small
business concerns therefrom; and</text>
</paragraph><paragraph id="ID6cdcdcf21b7a44a0a730f797a89651b5"><enum>(3)</enum><text>a description of
the participation by the Office in trade
negotiations.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDbf05a110e6424c7fadda14b82eba1952"><enum>(8)</enum><text>in subsection
(g), by inserting <quote><header-in-text level="subsection" style="OLC">Studies</header-in-text>.—</quote> after <quote>(g)</quote>;
and</text>
</paragraph><paragraph id="ID52bf5ab84d7e4015854011a83e25a8eb"><enum>(9)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id6437ED87F63B475CA92191A040C91FE6" style="OLC">
<subsection id="ID87e29070bec94558b6a77c6bc0262ed2"><enum>(i)</enum><header>Export
assistance centers</header>
<paragraph id="idB79F37C22C2C45488CE59292B6E31B47"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID32db7392e64743db8cd58bbf83a81f09"><enum>(2)</enum><header>Priority of
placement</header><text>Priority shall be given, to the maximum extent
practicable, to placing employees of the Administration at any Export
Assistance Center that—</text>
<subparagraph id="idB10F2B1B5CEB4304BD9D9D5AC7BC3BAF"><enum>(A)</enum><text>had an
Administration employee assigned to such Center before January 2003; and</text>
</subparagraph><subparagraph id="id86D5E2D5B80A4895963301B872B32167"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="IDe76a588c832c4fed89790c37b9919cb4"><enum>(3)</enum><header>Needs of
exporters</header><text>The Administrator shall, to the maximum extent
practicable, strategically assign Administration employees to Export Assistance
Centers, based on the needs of exporters.</text>
</paragraph><paragraph id="id50C5182D3D9F40B9A3C6496A4B2F1EB5"><enum>(4)</enum><header>Goals</header><text>The
Office shall work with the Department of Commerce and the Export-Import Bank to
establish shared annual goals for the Export Centers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1164c58fb16a483fb23a9c37fde9d244"><enum>(5)</enum><header>Oversight</header><text>The
Office shall designate an individual within the Administration to oversee all
activities conducted by Administration employees assigned to Export
Centers.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idA926520DE5C0473D99C7B17EFAA7C313"><enum>903.</enum><header>International
trade loans</header>
<subsection id="idF513196112E846AF8F9C1CCDB39EDF65"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 7(a)(3)(B) of
the Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by striking
<quote>$1,750,000, of which not more than $1,250,000</quote> and inserting
<quote>$2,750,000 (or if the gross loan amount would exceed $3,670,000), of
which not more than $2,000,000</quote>.</text>
</subsection><subsection id="idC4B56307603B4B559B848626B64CF925"><enum>(b)</enum><header>Working
capital</header><text>Section 7(a)(16)(A) of the Small Business Act (15 U.S.C.
636(a)(16)(A)) is amended—</text>
<paragraph id="idDC578D8648054C5993F83D7E99C2A3EF"><enum>(1)</enum><text>in the matter
preceding clause (i), by striking <quote>in—</quote> and inserting
<quote>—</quote>;</text>
</paragraph><paragraph id="idF7AACA6F1BCB498A988A14434B6C92FF"><enum>(2)</enum><text>in clause
(i)—</text>
<subparagraph id="id3BE4037E44724B578AA2D114DBB37739"><enum>(A)</enum><text>by inserting
<quote>in</quote> after <quote>(i)</quote>; and</text>
</subparagraph><subparagraph id="idBD22C340B9104CCAB45832FE33938721"><enum>(B)</enum><text>by striking
<quote>or</quote> at the end;</text>
</subparagraph></paragraph><paragraph id="id1A9279E9C7D34166AE936577A62CAA48"><enum>(3)</enum><text>in clause
(ii)—</text>
<subparagraph id="idA9C46D003E8F4EF29A8455DD021EB032"><enum>(A)</enum><text>by inserting
<quote>in</quote> after <quote>(ii)</quote>; and</text>
</subparagraph><subparagraph id="idC9AAB5DAB6484A82A1BF9ECCAB2A9ECF"><enum>(B)</enum><text>by striking the
period and inserting <quote>; or</quote>; and</text>
</subparagraph></paragraph><paragraph id="id6FA7A0E23A584EDBA8EC6496855DE07C"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id764CD7BD72A14E4FAF90AF536F041862" style="OLC">
<clause id="idAAF93464F86641DEB33AEB1AB9DD351D"><enum>(iii)</enum><text>by providing
working
capital.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id35FA86C248614714A1DC0F5104803A5E"><enum>(c)</enum><header>Collateral</header><text>Section
7(a)(16)(B) of the Small Business Act (15 U.S.C. 636(a)(16)(B)) is
amended—</text>
<paragraph id="id6C5AD33281894CFF9B3DD3F30172E37C"><enum>(1)</enum><text>by striking
<quote>Each loan</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id6E50BA8EBD164841A784320114D46682" style="OLC">
<clause id="idF22C9631D1F8412A987B3841A6CAA4D2"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), each
loan</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id6F67B6223DD6499C97757045A8DB5D65"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id0EC03FDAF36A427F8463472206893E2A" style="OLC">
<clause id="idE5759B0BB6B64D8986CE3600BE348341"><enum>(ii)</enum><header>Exception</header><text>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.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id7E186F51F04D43C1BECE0303CA14FDC5"><enum>(d)</enum><header>Refinancing</header><text>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 <quote>, including any debt
that qualifies for refinancing under any other provision of this
subsection</quote> before the semicolon.</text>
</subsection></section><enum>X</enum><header>Contract
bundling</header>
<section id="H6393BEE3AF5543D398F832BC32A7D5FA"><enum>1001.</enum><header>Presidential
policy</header><text display-inline="no-display-inline">Section 3(o) of the
Small Business Act (15 U.S.C. 632(o)) is amended—</text>
<paragraph id="H5513BB367C3A4F6C8B4296A3B1E6BB4"><enum>(1)</enum><text>by
striking paragraphs (2) and (3); and</text>
</paragraph><paragraph id="H99DA8E06155741FF9727F416BF202281"><enum>(2)</enum><text>by inserting after
paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H49FCCDAC676C425E8D44DB92120803C1" style="OLC">
<paragraph id="H4C96AB82E16B476BB9BE4D1591C01148" indent="up1"><enum>(2)</enum><header>Policy</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HE11629F4E2AA4B95A275E5C27CB20077" indent="up1"><enum>(3)</enum><header>Bundling of contract
requirements</header><text display-inline="yes-display-inline">In this Act, the
term <quote>bundling of contract requirements</quote> 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—</text>
<subparagraph id="H4557606B76934124B6D0DBA001360E4"><enum>(A)</enum><text>the diversity, size, or specialized
nature of the elements of the performance specified;</text>
</subparagraph><subparagraph id="HDE975B0764594358B05F3DA595DA6787"><enum>(B)</enum><text>the aggregate dollar value of the
anticipated award;</text>
</subparagraph><subparagraph id="H499472720F2B415CB1CBF89D1C59416"><enum>(C)</enum><text>the geographical dispersion of the
contract performance sites;</text>
</subparagraph><subparagraph id="HBBB4F459697E4D03B5BEA37DD27C4EF9"><enum>(D)</enum><text>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</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD4656F53CBA541A4B15E577B373404FE"><enum>(E)</enum><text>any combination of the factors
described in (A) through
(D).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
<quoted-block display-inline="no-display-inline" id="HFF882289EE0348DA89D5F41048DC6D37" style="OLC">
<paragraph id="H64A7A02688E547B1838BBC18AD32B012"><enum>(4)</enum><header>Presumed
bundlings</header><text display-inline="yes-display-inline">The Administrator
and each Federal agency shall, for all purposes under this Act, presumptively
treat as bundled any contract that—</text>
<subparagraph id="id61E93A98387C446BBC611DD74F18510A"><enum>(A)</enum><text display-inline="yes-display-inline">is valued at more than 3 times the
substantial bundling threshold for such agency; and</text>
</subparagraph><subparagraph id="id581BEA79947A4188BED9D3A78A8556E7"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H9998CE1560344AE7BFDA329F2BE7ACC2"><enum>1002.</enum><header>Leadership and
oversight</header>
<subsection id="id191F5B4C5EC840D1BDF71A17DB9C1D3E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 15 of the
Small Business Act (15 U.S.C. 644) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id4227256A153A4AC28F47AB240B25BADB" style="OLC">
<subsection id="H0FCE8C38FC1249E58799A18B409140A6"><enum>(q)</enum><header>Bundling
Accountability Measures</header>
<paragraph id="HB677927781F442508C768E4E373DF4A"><enum>(1)</enum><header>Governmentwide
Accountability on Bundling</header>
<subparagraph id="H11C5ED426C0F4983ACDEEFFF0002FED2"><enum>(A)</enum><header>Reinstatement of
reporting requirements</header><text>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.</text>
</subparagraph><subparagraph id="H08FE40E7A41545C791D643000028E8F0"><enum>(B)</enum><header>Report to
Congress</header><text>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).</text>
</subparagraph></paragraph><paragraph id="H7CBCC2B984C24E41B2F7001197E982F6"><enum>(2)</enum><header>Teaming
requirements</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" id="H7B5C1265920442D18F9FBC03B9F39050"><enum>(3)</enum><header>Implementation
of Comptroller General’s recommendations</header><text display-inline="yes-display-inline">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 <quote>Contract Management: Impact of Strategy
to Mitigate Effects of Contract Bundling Is Uncertain</quote>—</text>
<subparagraph commented="no" id="H0EA853B314E946808B35D4445DD1800"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" id="HA64607E40AB7494489797CD5F8230455"><enum>(B)</enum><text display-inline="yes-display-inline">the Administrator receives from each
Federal agency an annual report containing information concerning—</text>
<clause commented="no" id="H140983ACCCB04A468788AD26A3F20649"><enum>(i)</enum><text>the number and
dollar value of bundled contract actions and contracts;</text>
</clause><clause commented="no" id="HC1F86E1356494D339C0494DB0EB6250"><enum>(ii)</enum><text>benefit analyses
(including the total dollars saved) to justify why contracts are
bundled;</text>
</clause><clause commented="no" id="H0A0CC25D556F479E9FEF9D25006590B4"><enum>(iii)</enum><text>the number of
small business concerns losing Federal contracts because of bundling;</text>
</clause><clause commented="no" id="H2A8A426243E64C4898A639C00FED17"><enum>(iv)</enum><text>how contractors
awarded bundled contracts complied with the agencies subcontracting plans;
and</text>
</clause><clause commented="no" id="H70F1A076363D408DB1A0C9183BFF899"><enum>(v)</enum><text>how mitigating
actions, such as teaming arrangements, provided increased contracting
opportunities to small business concerns.</text>
</clause></subparagraph></paragraph><paragraph id="H718457130095495988BB37DDB767174D"><enum>(4)</enum><header>Governmentwide
Review of Bundling Interpretations</header>
<subparagraph id="id76594170AAB44B7E851DB0C5D251628F"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="idDCE41869D1C140C193C069CB80492121"><enum>(B)</enum><header>Report</header><text display-inline="yes-display-inline">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).</text>
</subparagraph></paragraph><paragraph id="H8710F4C6E4A945C696DC42E6B5A22689"><enum>(5)</enum><header>Agency Policies
on Reduction of Contract Bundling</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HECBB3A2601D340A0A2AD69D35095EACC"><enum>(6)</enum><header>Best Practices
on Contract Bundling Reduction and Mitigation</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HFF3A066FE8C043DE82A32625F80047AD"><enum>(7)</enum><header>Small Business
Performance of Agency Leadership</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H70C917BFC06E40DBB9A5C87875CBC2D9"><enum>(8)</enum><header>Contract
bundling oversight</header>
<subparagraph id="HD0C1F5C031924FE2B076D1C7FC867FEE"><enum>(A)</enum><header>Policy</header><text display-inline="yes-display-inline">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 <quote>Audit of the Contract Bundling
Program</quote>.</text>
</subparagraph><subparagraph id="H3ACE6AA6B0444BE4A5D9351FB1FEC79B"><enum>(B)</enum><header>Corrective
action</header>
<clause id="H3D45A8367FEE49849E533204566DDF5E"><enum>(i)</enum><header>Assignment of
Procurement Center Representatives</header>
<subclause id="idE098E7A18A774CE09B7DB8B1BAC88A28"><enum>(I)</enum><header>In
general</header><text>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.</text>
</subclause><subclause id="id127BF1F15B084675B78B589032755AB1"><enum>(II)</enum><header>Reporting</header><text>The
Administrator shall annually submit to Congress a report—</text>
<item id="id8873E334BA6949838C23256A61510AB7"><enum>(aa)</enum><text>containing a
list of designations of major procurement centers in effect during the relevant
fiscal year;</text>
</item><item id="idE68DC58250D74137913A18C324249625"><enum>(bb)</enum><text>detailing the
criteria for designations;</text>
</item><item id="id0A010240D33B4AE4B46E98D6B44B6787"><enum>(cc)</enum><text>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</text>
</item><item id="id51FAF3C5FA9F42ED928264B85AA03255"><enum>(dd)</enum><text>including a
trend analysis concerning the impact of reviews and placements of procurement
center representatives and breakout procurement center representatives.</text>
</item></subclause></clause><clause id="H2F371DF2860043809188A44F2FA7BC1F"><enum>(ii)</enum><header>Timely Review
of Bundled Contracts</header><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph></paragraph><paragraph id="H6EA99CD8313D4B0BA79B8C3D9FBD6835"><enum>(9)</enum><header>Contract
Bundling mitigation through subcontracting</header><text display-inline="yes-display-inline">A commercial market representative may not
be assigned by the Administrator to provide services for more than 2
States.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id11B34F0F76D0479CB1D00792CC67F4BE"><enum>(b)</enum><header>Technical
correction</header><text>Section 15(g) of the Small Business Act (15 U.S.C.
644(g)) is amended by striking <quote>Administrator of the Office of Federal
Procurement Policy</quote> each place such term appears and inserting
<quote>Administrator for Federal Procurement Policy</quote>.</text>
</subsection><subsection id="id681A9610BB914157896EB69BB61FF331"><enum>(c)</enum><header>Procurement
center representatives</header><text display-inline="yes-display-inline">Section 15(l) of the Small Business Act (15
U.S.C. 644(l)) is amended—</text>
<paragraph id="id854CFAB171334D8FA2BD05366E788183"><enum>(1)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id042F7DCED46F4D5C8C8A3E438686607F" style="OLC">
<paragraph id="ID860b627279c94429b69577e07c259b3d" indent="up1"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idA76235C202164E489AC335F9B7531961"><enum>(A)</enum><text>A procurement center
representative shall carry out the activities described in paragraph (2), and
shall be an advocate for—</text>
<clause id="id42A8ECD88D0B4C80B61FD51079B76578" indent="up1"><enum>(i)</enum><text>the maximum practicable utilization of
small business concerns, whenever appropriate; and</text>
</clause><clause id="id8CF7C98A5C594CDB98774B53462D5AAC" indent="up1"><enum>(ii)</enum><text>the use of full and open competition,
whenever appropriate, for the procurement of supplies and services by the
procurement center.</text>
</clause></subparagraph><subparagraph id="id8D009BE8D317447F9351D47AD3D54E7A" indent="up1"><enum>(B)</enum><text>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.</text>
</subparagraph><subparagraph id="idB2F030B4507C45CFBB321A6D07918683" indent="up1"><enum>(C)</enum><text>Any procurement center representative
assigned under this paragraph shall be in addition to the representative
referred to in subsection
(k).</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idE2F122EFFAF24FE0ABEB5BD8F71B6145" indent="up1"><enum>(2)</enum><text>in paragraph (2)—</text>
<subparagraph id="id788942A802A14A1BB805F95E09BA5F6A"><enum>(A)</enum><text>by striking <quote>breakout</quote>
each place that term appears;</text>
</subparagraph><subparagraph id="idEBCDD39C2070493787E4CAD11DAD848A"><enum>(B)</enum><text>in subparagraph (F), by striking
<quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="id55DB2DC0A5264678B53113DE5220AFF7"><enum>(C)</enum><text>in subparagraph (G), by striking the
period at the end and inserting a semicolon; and</text>
</subparagraph><subparagraph id="id798BA21DA48E4EAC94096B05B5E3821A"><enum>(D)</enum><text>by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idBDC8FD8E8AB54F39A9BB0519DBD1C76C" style="OLC">
<subparagraph id="ID03fed4575f8d4cea9a3ae863f62b48fb" indent="up1"><enum>(H)</enum><clause commented="no" display-inline="yes-display-inline" id="id2E5CDDF451D14EDF93B16400B8D7E458"><enum>(i)</enum><text>identify and review
solicitations that involve contract consolidations for potential bundling of
contract requirements; and</text>
</clause><clause id="idBC85D7905BBB468D9F38134764513970" indent="up1"><enum>(ii)</enum><text>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);</text>
</clause></subparagraph><subparagraph id="id6D47676D09524353BC33B2C00B214BCD" indent="up1"><enum>(I)</enum><text>manage the activities of the breakout
procurement center representative, commercial marketing representative, and
technical assistant; and</text>
</subparagraph><subparagraph id="idF884436722AD4DC5A5C7FD12CDA3319D" indent="up1"><enum>(J)</enum><text>submit an annual report to the
Administrator containing—</text>
<clause id="idDEF52420431740EAB7FC208DB8D96C28"><enum>(i)</enum><text>the number of proposed
solicitations reviewed;</text>
</clause><clause id="idDB2CC44F83FF4D3BB156AC2D8BB4B0D4"><enum>(ii)</enum><text>the contract recommendations made
on behalf of small business concerns;</text>
</clause><clause id="idFC0CC6E31B6C4F5A86CE628A73822289"><enum>(iii)</enum><text>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</text>
</clause><clause id="id9CE97DEF125641A6BD17D1B8761B9FC9"><enum>(iv)</enum><text>the number and total amount of
contract dollars awarded to small business concerns as a result of actions
taken by the procurement center
office.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id179A0F12D7944FA3AFE6984F5DFB04D0"><enum>(3)</enum><text>by redesignating
paragraphs (4) through (7) as paragraphs (5) through (8), respectively;</text>
</paragraph><paragraph id="idF4A8792ED7124A10B2653C0D0081629E"><enum>(4)</enum><text>by striking
paragraph (3) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idB949393AB5234C62BC865BFF2188601A" style="OLC">
<paragraph id="id5D5C06FDBE6B46FE931AE8B52CF21D2A" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id11B78EDC3FD748D8B634A05F1CEA43D4"><enum>(A)</enum><text>The Administrator may
assign a breakout procurement center representative, which shall be in addition
to any representative assigned under paragraph (1).</text>
</subparagraph><subparagraph id="idA9C66D311AAA40079A6C3F0246FE9734" indent="up1"><enum>(B)</enum><text>A breakout procurement center
representative—</text>
<clause id="id26C35ED513DE458294B79C399FA88126"><enum>(i)</enum><text>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</text>
</clause><clause id="idC577BC3D23FC4D3985A8E486CC79B7E6"><enum>(ii)</enum><text>is authorized—</text>
<subclause id="idBD6F6C2241434E0EAA3E8CBC3E40EEF8"><enum>(I)</enum><text>to recommend small business concern
participation in existing contracts that were previously not reviewed for small
business concern participation;</text>
</subclause><subclause id="idBCF022E89AF5469AA9C22F68F422E074"><enum>(II)</enum><text>to perform the duties described in
paragraph (2), as necessary to perform the due diligence required for a
breakout recommendation; and</text>
</subclause><subclause id="id3367FCF416014DD19D7A8791FAC5BF5B"><enum>(III)</enum><text>to appeal the failure to act
favorably on any recommendation made under subclause (I).</text>
</subclause></clause></subparagraph><subparagraph id="id1D44403830E44FF68999FB90643DDCF6"><enum>(C)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="IDe0364aaaa4314da2b6824a4d5de040b4" indent="up1"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id0B028DBDA5F74DEEB21920ED0721032C"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="idAF6FF811AFA048609C9CF7A97CA17DCB" indent="up1"><enum>(B)</enum><text>A commercial marketing representative
assigned under this paragraph shall—</text>
<clause id="idF70AEB373A644EF69897486470C334D2"><enum>(i)</enum><text>conduct compliance reviews of prime
contractors;</text>
</clause><clause id="idAA89C26DD1E540F8AAF50E3A2A677CD0"><enum>(ii)</enum><text>counsel small business concerns on
how to obtain subcontracts;</text>
</clause><clause id="idCE7286D99DC54E1DA864447700058118"><enum>(iii)</enum><text>conduct matchmaking activities to
facilitate subcontracting to small business concerns;</text>
</clause><clause id="idBDFBA95039BB4FD0BE80CD871B9574E1"><enum>(iv)</enum><text>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</text>
</clause><clause id="id4DD0C733F5264193B0D0B240567C3980"><enum>(v)</enum><text>provide orientation and training on
the subcontracting assistance program under section 8(d)(4)(E) for both large
and small business concerns.</text>
</clause></subparagraph><subparagraph id="idFFAE2654893041EDB8A170ABD8F63F4F" indent="up1"><enum>(C)</enum><text>Any commercial marketing
representative assigned under this paragraph shall be in addition to any
procurement center representative assigned under paragraph (1) or
(3).</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idAD306EF0BB3C453EAA85E9A55F7E8766"><enum>(5)</enum><text>in paragraph (5),
as so designated by this section—</text>
<subparagraph id="idE822E5C4891343D1A5FC0544C1A97C2E"><enum>(A)</enum><text>in the second
sentence, by inserting <quote>the procurement center representative and</quote>
before <quote>the breakout procurement</quote>; and</text>
</subparagraph><subparagraph id="idE57E0E751A5B43EF93A4A313605973B8"><enum>(B)</enum><text>in the third
sentence, by striking <quote>(6)</quote>;</text>
</subparagraph></paragraph><paragraph id="idA033631002424AFBB8FABA3A7D1964FC"><enum>(6)</enum><text>in paragraph (6),
as so designated by this section—</text>
<subparagraph id="id2AE923252E7442A58C64B0139EB31D0C"><enum>(A)</enum><text>in subparagraph
(A), by striking <quote>The breakout procurement center representative</quote>
and inserting the following: <quote>The procurement center representative,
breakout procurement center representative, commercial marketing
representative,</quote>;</text>
</subparagraph><subparagraph id="id943A248316424B129C1DDB667EAA563E"><enum>(B)</enum><text>by striking
subparagraph (B); and</text>
</subparagraph><subparagraph id="id72E1FEAC7BFF445286698DB422105E5A"><enum>(C)</enum><text>by redesignating
subparagraph (C) as subparagraph (B);</text>
</subparagraph></paragraph><paragraph id="idA673D16D3C0D4D48A73DD42F99BFFD16"><enum>(7)</enum><text>in paragraph (7),
as so designated by this section, by striking <quote>other than commercial
items</quote> and all that follows through the end of the paragraph and
inserting the following: <quote>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.</quote>; and</text>
</paragraph><paragraph id="IDd66ae1891beb485786ba2b46d5e36b0d"><enum>(8)</enum><text>in paragraph (8),
as so designated by this section—</text>
<subparagraph id="id72E43828CDAC4ADF858FAC682AECA365"><enum>(A)</enum><text>by striking
<quote>breakout</quote> each place the term appears; and</text>
</subparagraph><subparagraph id="id5AF5AF98A2AB4ACB9254CB72E231197C"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id54B8FF905496465A961BB3EB3D96270B" style="OLC">
<subparagraph id="IDc8fd83b5d9b846d79656d8895f3c65c8" indent="up2"><enum>(C)</enum><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section id="H39DD949D813A4B798ED1ED79F00DECA"><enum>1003.</enum><header>Removal of
impediments to contract bundling database implementation</header><text display-inline="no-display-inline">Section 15(p)(5)(B) of the Small Business
Act (15 U.S.C. 644(p)(5)(B) is amended by striking <quote>procurement
information</quote> and all that follows through the end of the subparagraph
and inserting the following: <quote>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.</quote>.</text>
</section><enum>XI</enum><header>Subcontracting
integrity</header>
<section id="H3A42D42FC95D4A3CBAEFDEB08B08412E"><enum>1101.</enum><header>GAO
recommendations on subcontracting misrepresentations</header><text display-inline="no-display-inline">Section 8 of the Small Business Act (15
U.S.C. 637) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7C00DECFB3F347448F741CC9BEC199D4" style="OLC">
<subsection id="HBCE050F7EB25412D8297024FCF7F84F1"><enum>(o)</enum><header>Prevention of
misrepresentations in subcontracting; implementation of Comptroller General’s
recommendations</header>
<paragraph id="H6F80122F99774B529153235DB8CB3351"><enum>(1)</enum><header>Statement of
policy</header><text>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.</text>
</paragraph><paragraph id="HC108432647BF430C8D9277E629E9E56"><enum>(2)</enum><header>Contractor
compliance</header><text>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.</text>
</paragraph><paragraph id="HD5E481AC98F84B2086873F5D5600E500"><enum>(3)</enum><header>Issuance of
agency policies</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H90E9D304230243AF861171896BF2A93F"><enum>1102.</enum><header>Small business
subcontracting bait-and-switch fraud</header>
<subsection id="H11680988197A42F3BE83126EA6C6408"><enum>(a)</enum><header>Certifications
required</header><text>Section 8(d)(6) of the Small Business Act (15 U.S.C.
637(d)(6)) is amended—</text>
<paragraph id="HEC67F8F227A94AE1A574BAEEA0E007B6"><enum>(1)</enum><text>in subparagraph
(E), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HF13E779D00E24CFFA400E7C27FAC59BA"><enum>(2)</enum><text>in subparagraph
(F), by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph commented="no" id="HB5034909F74743118E103CC0E5D2B03C"><enum>(3)</enum><text>by adding at the
end, the following:</text>
<quoted-block id="H3729B7FFE4A6426AAEDC4D28AE94B46" style="OLC">
<subparagraph commented="no" id="H55117FEC92454B43A9288E00F200E844"><enum>(G)</enum><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF6982100D0F5425A91B8BF69F32E467C"><enum>(b)</enum><header>Penalties for
false certifications</header><text>Section 16(f) of the Small Business Act (15
U.S.C. 645(f)) is amended by striking <quote>of this Act</quote> and inserting
<quote>or the reporting requirements of section 8(d)(11)</quote>.</text>
</subsection></section><section id="H4A8247643FC34114ADA1179419F66217"><enum>1103.</enum><header>Evaluating
subcontracting participation</header>
<subsection id="H66A41BA3D14E4101B6F48ECAEDBEB312"><enum>(a)</enum><header>Significant
factors</header><text>Section 8(d)(4)(G) of the Small Business Act (15 U.S.C.
637(d)(4)(G)) is amended by striking <quote>a bundled</quote> and inserting
<quote>any</quote>.</text>
</subsection><subsection id="H6784CA4B8E0C45E200FF5EE5E9AFCF7"><enum>(b)</enum><header>Evaluation
reports</header><text>Section 8(d)(10) of the Small Business Act (15 U.S.C.
637(d)(10)) is amended—</text>
<paragraph id="H1F3F5B8663D1413C8D98D286F2837758"><enum>(1)</enum><text>by striking
<quote>is authorized to</quote> and inserting <quote>shall</quote>;</text>
</paragraph><paragraph id="H8E2EFCB580E0476D83CA299C04F10779"><enum>(2)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H5A58DF4D84014188B06B7DB33C6D2DB3"><enum>(3)</enum><text>in subparagraph
(C), by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H9B08413082DC4C358411E0787C9C1BDD"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H5F883A3BA3364D85893958DDBD00FB60" style="OLC">
<subparagraph id="HB56B194693464A6F97B944C7B98FC4BA"><enum>(D)</enum><text>report the results
of each evaluation under subparagraph (C) to the appropriate contracting
officers.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4973517694CF46CA9C00F3AA28163417"><enum>(c)</enum><header>Centralized
database; payments pending reports</header><text>Section 8(d) of the Small
Business Act (15 U.S.C. 637(d)) is amended—</text>
<paragraph id="H127EFE8C8B0542FEA6BDEC46BF6877B0"><enum>(1)</enum><text>by redesignating
paragraph (11) as paragraph (14); and</text>
</paragraph><paragraph id="HC782F097233140A18C59F9C125397E6E"><enum>(2)</enum><text>by inserting after
paragraph (10) the following:</text>
<quoted-block id="H4106452C80464790B11FC882E03F524C" style="OLC">
<paragraph id="HA03E6EDA73A845409E10E33431C3374"><enum>(11)</enum><header>Certification</header><text>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.</text>
</paragraph><paragraph id="HD4F9F069EDCD4E91803E926F6BB8FD91"><enum>(12)</enum><header>Centralized
database</header><text>The results of an evaluation under paragraph (10)(C)
shall be included in a national centralized governmentwide database.</text>
</paragraph><paragraph id="HE4C95847A75F4456B380372D89626B80"><enum>(13)</enum><header>Payments
pending reports</header><text>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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H32EBC0F0A3FC4208967E3C901450A1E9"><enum>1104.</enum><header>Pilot program
on direct payments to subcontractors</header>
<subsection id="H75392B01E4A04B31A07996D44BD53CB9"><enum>(a)</enum><header>In
general</header><text>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:</text>
<quoted-block id="H0CBEA2E93A004E7689D8FC1AC889F2E" style="OLC">
<paragraph id="H852A7A6FF9C64DD2A433C3D6BCAE875"><enum>(15)</enum><header>Timely payment
to small business subcontractors</header>
<subparagraph id="H465507DEB9E94FFD84733BA5A5B7577"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="HA5F668188EF5463BAB3B39CDD46B5533"><enum>(B)</enum><header>Consideration of
performance</header><text>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).</text>
</subparagraph><subparagraph id="H01F60E496F6D4DBFB241E9192D96F667"><enum>(C)</enum><header>Withholding of
payments</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2F2B47D73902447DA995EE827BC3D71"><enum>(b)</enum><header>Sunset</header><text>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.</text>
</subsection></section><section id="H7B039B78119940C69B7B1EC6B9DA8E5D"><enum>1105.</enum><header>Pilot
program</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H05AB5BCA6FB24442BBD0AD99CF81E2D0" style="OLC">
<subsection id="H1DAE9DC9C70549E7B6A6ACF8DE3F4CF7"><enum>(p)</enum><header>Subcontracting
incentives and remedial assistance</header>
<paragraph id="H9D563897DC9B47DF94EAC4499291D116"><enum>(1)</enum><header>Pilot program on
incentives and mentor-protégé remedial assistance</header>
<subparagraph id="id9D49992BA43C4973B89315E13183477F"><enum>(A)</enum><header>In
general</header><text>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-protégé
assistance for small business concerns (in this subsection referred to as the
<quote>program</quote>).</text>
</subparagraph><subparagraph id="id5E1C385009E8445AAF88A1915F3C155D"><enum>(B)</enum><header>Termination</header><text>The
authority under this paragraph shall terminate on September 30, 2009.</text>
</subparagraph></paragraph><paragraph id="HF16358D0ED6C488E8F2D779802EC9CFE"><enum>(2)</enum><header>Assessment of
mentor-protégé assistance funding</header><text>The mentor-protégé 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.</text>
</paragraph><paragraph id="H8E811F99E1AE4FE9BAA346877D23B400"><enum>(3)</enum><header>Expenditure of
mentor-protégé assistance funding</header><text>The prime contractor shall
expend the mentor-protégé assistance funding assessed by the agency under the
terms of the program on mentor-protégé assistance to small business concerns,
as provided by a mentor-protégé agreement approved by the relevant Federal
agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA10637E009E1436A97B6A68660F7DAC"><enum>(4)</enum><header>Annual report
required</header><text>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-protégé assistance provided to small business
concerns.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>XII</enum><header>Small business
procurement programs improvement</header>
<section id="id9A47FDAAF9624206AD280900290DDCB1"><enum>1201.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title—</text>
<paragraph id="idEB6A36B448194695AD0FB29E8BD781F0"><enum>(1)</enum><text>the term
<term>small business concern owned and controlled by service-disabled
veterans</term> has the same meaning as in section 3 of the Small Business Act
(15 U.S.C. 632); and</text>
</paragraph><paragraph id="id724B882532D94783BF7C4D3177D84A5D"><enum>(2)</enum><text>the terms
<term>small business concern owned and controlled by socially and economically
disadvantaged individuals</term> and <term>small business concern owned and
controlled by women</term> have the same meanings as in section 8(d) of the
Small Business Act (15 U.S.C. 637(d)).</text>
</paragraph></section><subtitle id="id965254F9C64C4E01AA5F409BDDA713D3"><enum>A</enum><header>HUBZone
program</header>
<section id="IDd197c38658904f98b6c391b87c77b6cb"><enum>1211.</enum><header>HUBZone
reauthorization</header><text display-inline="no-display-inline">Section 31(d)
of the Small Business Act (15 U.S.C. 657a(d)) is amended by striking
<quote>each of fiscal years 2004 through 2006</quote> and inserting <quote>each
of fiscal years 2006 through 2012</quote>.</text>
</section><section id="IDd20db5609d5844938fb11f217d2b729d"><enum>1212.</enum><header>Equity for
suburban HUBZones</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idFF259CF645B14F4FAEB9164D0FA3DB35" style="OLC">
<subparagraph id="IDcf6a73361fd1496a9a94e16d14e293c9"><enum>(E)</enum><header>Qualified
suburban area</header><text>The term <quote>qualified suburban area</quote>
means any village, city, town, economic development area governed by a public
authority, district, or other unit of general local government—</text>
<clause id="ID2ac4314c6576479fb6a34edf632485cc"><enum>(i)</enum><text>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</text>
</clause><clause id="IDf606a61110b1417694bfe5ff2a6155d5"><enum>(ii)</enum><text>that meets the
income or unemployment qualifications under subparagraph
(B)(ii).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="id7ED97635634A49E48FE8722365AC6B05"><enum>B</enum><header>Service-disabled
veteran-owned small business program</header>
<section id="id56557423EE15419681E075FD9F901107"><enum>1221.</enum><header>Certification</header>
<subsection id="idA4742005893445A2BC0998B6DC8760B4"><enum>(a)</enum><header>Congressional
intent</header><text>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.</text>
</subsection><subsection id="id79ABABA5E01D4F67A0068FD17C4CD63A"><enum>(b)</enum><header>Regulations</header><text display-inline="yes-display-inline">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).</text>
</subsection></section><section id="ID66a646bbc1904346ab2cc76d0792cf89"><enum>1222.</enum><header>Temporary
waiver</header>
<subsection id="idA7F7F25838E145E2AD2D60EE1D962196"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="ID61f9f85574844f1daf41196ff04e888d"><enum>(b)</enum><header>Report to
Congress</header><text>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.</text>
</subsection></section><section id="IDe90ae2d4dc1c4bcb921e9fce461dec03"><enum>1223.</enum><header>Transition
period for surviving spouses or permanent care givers</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id8D6DDD94655B452A9B786FA98FABC470" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="ID737FEB53276E43A9BD800FEEA349A1C1"><enum>(B)</enum><text display-inline="yes-display-inline">the management and daily business
operations of which are controlled—</text>
<clause commented="no" display-inline="no-display-inline" id="idD66F85E9C7D74F6ABEB4A1EE4E14ACE5"><enum>(i)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idA52666764DC7416E8742B285F858F76A"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID54d80c29afa64450860d73a5e6a4945e"><enum>1224.</enum><header>Contracting
authority</header><text display-inline="no-display-inline">Section 36(a) of the
Small Business Act (15 U.S.C. 657f(a)) is amended in the matter preceding
paragraph (1), by striking <quote>may</quote> and inserting
<quote>shall</quote>.</text>
</section></subtitle><subtitle id="id79440CD66D4840CE9C4534E2C07819ED"><enum>C</enum><header>Women-owned small
business program</header>
<section id="idA539F13C353A4B14A77D2A1D72900D4C"><enum>1231.</enum><header>Implementation
deadline</header><text display-inline="no-display-inline">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)).</text>
</section><section id="ID08ff34719f1d4e589aadb83a6b651b70"><enum>1232.</enum><header>Certification</header>
<subsection id="id9FA47EE770344E808E0D2569EAF472B8"><enum>(a)</enum><header>Congressional
intent</header><text display-inline="yes-display-inline">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)).</text>
</subsection><subsection id="ID97271775261f4dff907c11eb3adcc3f8"><enum>(b)</enum><header>Regulations</header><text display-inline="yes-display-inline">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).</text>
</subsection></section></subtitle><subtitle id="idDB5D89DDA768417AB57C27E0F1CE3D06"><enum>D</enum><header>Small
disadvantaged business program</header>
<section id="id50EA60FB3CD74407A3ED27A7F6ACC648"><enum>1241.</enum><header>Certification</header>
<subsection id="id3A62AD6F00D943BC9769CD438FA32581"><enum>(a)</enum><header>Congressional
intent</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idE2C054744CFE493AB18B560827489C97"><enum>(b)</enum><header>Regulations</header><text display-inline="yes-display-inline">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).</text>
</subsection></section><section id="idE7575A98AEB7494FA29A764823EF11F8"><enum>1242.</enum><header>Net worth
threshold</header><text display-inline="no-display-inline">Section 8(a)(6)(A)
of the Small Business Act (15 U.S.C. 637(a)(6)(A)) is amended—</text>
<paragraph id="idC90186B307F94790B6C1ECE2ACEA222E"><enum>(1)</enum><text>by inserting
<quote>(i)</quote> after <quote>(6)(A)</quote>;</text>
</paragraph><paragraph id="id6F9F01B892624026BCF66CF8EEA46AE1"><enum>(2)</enum><text>by striking
<quote>In determining the degree of diminished credit</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="idA82A14220AAF48E18A386D5958E8E9C7" style="OLC">
<clause id="idB6B2456C0E7C44219B769EEE3C1BC0DC" indent="up3"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idD273951B9C9C4FB0BD6F16AAC663FC7D"><enum>(I)</enum><text>In determining the
degree of diminished
credit</text>
</subclause></clause><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id38B72E80D1A643FA83C3643F80D07898"><enum>(3)</enum><text>by striking
<quote>In determining the economic disadvantage</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id5DF7CD7337B641EBA09BBE89214FCE96" style="OLC">
<clause id="id901AA52CD2A54BB1A32154401AE6565C" indent="up3"><enum>(iii)</enum><text>In determining the economic
disadvantage</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id1E667C277F6F4E30863E19CD6D2D3434"><enum>(4)</enum><text>by inserting
after clause (ii)(I), as so designated by this section, the following:</text>
<quoted-block display-inline="no-display-inline" id="id4C59B4E9C7934355BE5E12E54E6FF530" style="OLC">
<subclause id="ID40cef88b52b742b1a4fbfdbe1358cd95" indent="up4"><enum>(II)</enum><text>The Administrator shall establish
procedures that—</text>
<item id="idAEC1B356EBE54F50859DF638AF1871A2"><enum>(aa)</enum><text>account for inflationary adjustments
to, and include a reasonable assumption of, the average income and net worth of
market dominant competitors; and</text>
</item><item commented="no" display-inline="no-display-inline" id="ID039415daad0643678bf86a1ce6aa54b0"><enum>(bb)</enum><text>require an annual inflationary
adjustment to the average income and net worth requirements under this
subsection.</text>
</item></subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="idFD58A00868284A359F1181F78D439C0F"><enum>E</enum><header>BusinessLINC
Program</header>
<section id="idBF3EE20C89E9474DB1EF7B20FC8ABFE4"><enum>1251.</enum><header>BusinessLINC
Program</header><text display-inline="no-display-inline">Section 8(n) of the
Small Business Act (15 U.S.C. 637(n)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id244532BCAB66406993927E4383CDD2C3" style="OLC">
<subsection id="ID5818e095baaa4b7eb3312fe1b7baceac"><enum>(n)</enum><header>Business grants
and cooperative agreements</header>
<paragraph id="id7B5E576E495346E4B4172659B7814EE3"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="ID3a3ddcbd466e4477ab5b815368908b86"><enum>(A)</enum><text>to expand
business-to-business relationships between large and small business concerns;
and</text>
</subparagraph><subparagraph id="IDda7660d9cfca445184a1f9159e3d12ef"><enum>(B)</enum><text>to provide,
directly or indirectly, with online information and a database of companies
that are interested in mentor-protégé programs or community-based, statewide,
or local business development programs.</text>
</subparagraph></paragraph><paragraph id="IDee9388a4fe764b06a1be33620b2e43da"><enum>(2)</enum><header>Matching
requirement</header><text>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.</text>
</paragraph><paragraph id="id3BB270364F2D4C21AF9F0AD9C331894B"><enum>(3)</enum><header>Authorization
of appropriations</header><text>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.</text>
</paragraph><paragraph id="ID7d07ca8755f9470581e829845bb03934"><enum>(4)</enum><header>Reports to
Congress</header>
<subparagraph id="id036DD6C807364864B1B4FE622DC86A77"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID91ab1e61c74240a1a59900470f0c1394"><enum>(B)</enum><header>Contents</header><text>Each
report submitted under subparagraph (A) shall include, for the year covered by
the report—</text>
<clause id="ID9bbd5e54fddf4829b04ecedb0c405bf9"><enum>(i)</enum><text>the number of
programs administered in each State under the BusinessLINC Program;</text>
</clause><clause id="IDc29d31ad453f437b9ffe2664fccfc38f"><enum>(ii)</enum><text>the number of
grant awards under each program described in clause (i) and the date of each
such award;</text>
</clause><clause id="ID980a7a15032b4b0eba6d53f667dd5673"><enum>(iii)</enum><text>the number of
participating large businesses and participating small business
concerns;</text>
</clause><clause id="ID94dde6018d7f4dbf8c3a09cd43d6319a"><enum>(iv)</enum><text>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</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID79154a599ffb4ae09a5d43ec2b5803aa"><enum>(v)</enum><text>the number of
mentor-protégé, teaming relationships, or partnerships created as a result of
the BusinessLINC Program.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8647A3ECA97046C7992819AEE9CFE986"><enum>(5)</enum><header>Definition</header><text>In
this subsection, the term <term>BusinessLINC Program</term> means the grant
program authorized under paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><enum>XIII</enum><header>Acquisition
process</header>
<section id="id8020CEA69A30459C80F52C42468C7551"><enum>1301.</enum><header>Procurement
improvements</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idADCA8A3CA14048C1BFEF5F404646BCC5" style="OLC">
<subsection id="idFD8AE9BAA949499F818354ACADDC49EB"><enum>(r)</enum><header>Bundling data
fields</header><text>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)—</text>
<paragraph id="IDe7a4aa4c09454fefad07fd51eeef17dd"><enum>(1)</enum><text>the number of
contracts involving small business concerns that were displaced by the bundled
or consolidated action;</text>
</paragraph><paragraph id="ID7e06fcda7bd7488bb85f3e072789288c"><enum>(2)</enum><text>the number of
small business concerns that the contracting officer identified as able to bid
on all or part of requirements; and</text>
</paragraph><paragraph id="ID6f2e0064a18e4ec5be4793248b6ff7be"><enum>(3)</enum><text>the projected
cost savings anticipated as a result of bundling or consolidating the
requirements.</text>
</paragraph></subsection><subsection id="idA2EAB0F7CF454A6FBB691DEF8C1FF8A9"><enum>(s)</enum><header>Governmentwide
small business training</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idD69F39ABBE3C4BB18805C28AACAFF9A8"><enum>1302.</enum><header>Reservation
of prime contract awards for small businesses</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id93DA21CED24344D8B6C7BD71D429C092" style="OLC">
<subsection id="idD6EE4FDF6D4B4687B52E7BD33A55E043"><enum>(t)</enum><header>Multiple award
contracts</header><text>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—</text>
<paragraph id="id59CB22C046E843499DE797F7AFDD825A"><enum>(1)</enum><text>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);</text>
</paragraph><paragraph id="id27C414F4242D40239B627321F41F5A77"><enum>(2)</enum><text>setting aside
multiple award contracts for small business concerns, including the
subcategories of small business concerns identified in subsection (g)(2);
and</text>
</paragraph><paragraph id="id59C6C22CE1C343FB9DBF80F1EB33F7ED"><enum>(3)</enum><text>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).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idEF7923E2700347CBAD542657AAB8FE9C"><enum>1303.</enum><header>GAO study of
reporting systems</header>
<subsection id="id361563D198E04DDFB8DA999622266891"><enum>(a)</enum><header>Study
required</header><text>The Comptroller General of the United States shall
conduct a study of—</text>
<paragraph id="id918CFEFC915E4B7C85BC07C0273BE0FF"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="idDFF7456598F04C69A0ED5FF405F57404"><enum>(2)</enum><text>the availability
of small business information in these computer-based systems to Congress,
Federal agencies, and the public.</text>
</paragraph></subsection><subsection id="idC932BB6021514E1694659141C11D2051"><enum>(b)</enum><header>Matters
covered</header><text>The study conducted under subsection (a) shall
include—</text>
<paragraph id="id3E4A8285130A463F9239FB033E0EB80A"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="idEA563C226D444FA3AE437854D242694B"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="ID92be94c0efe344f9a0af7ea9aea1eda7"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="IDd14c1eb44c0240ab962e096fff0c4569"><enum>(4)</enum><text>the adequacy of
the training given to individuals responsible for reporting into such systems
and recommendations for any necessary improvements;</text>
</paragraph><paragraph id="ID119488f4a876415aab5267a208ea48fd"><enum>(5)</enum><text>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</text>
</paragraph><paragraph id="id214852D4CC0842A19147FF53E1684A3A"><enum>(6)</enum><text>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.</text>
</paragraph></subsection><subsection id="IDb8af912d91ba46a5b99ccd85cfb811f1"><enum>(c)</enum><header>Report</header><text>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.</text>
</subsection></section><section id="id4EB4AFB5AE6E44158AC84D757D66B963"><enum>1304.</enum><header>Meeting small
business goals</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idD9826D3601DF4B358F869A9E042344AA" style="OLC">
<subsection id="id685924D71633491586DA4392E05449F7"><enum>(u)</enum><header>Meeting small
business goals</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id0A3C0E6D6AF74585A01C0F21838DF166"><enum>1305.</enum><header>Micropurchase
guidelines</header><text display-inline="no-display-inline">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.</text>
</section><section changed="not-changed" id="id9C5659BB58204B3CB145268AF323B529"><enum>1306.</enum><header>Reporting on
overseas contracts</header><text display-inline="no-display-inline">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.</text>
</section><section id="ID8A648E96582E47DE9F7195FA6EEAA817"><enum>1307.</enum><header>Agency
accountability</header>
<subsection id="id293413810CB24C71ABF4233C0D6B7BDA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 15(g)(2) of
the <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C.
644(g)(2)) is amended—</text>
<paragraph id="ID0C0912118EE44CCF9BCA1CD76582ACEE"><enum>(1)</enum><text>by inserting
<quote>(A)</quote> after <quote>(2)</quote>;</text>
</paragraph><paragraph id="ID2A63DA2561A841DD98D0B98D67DB89D5"><enum>(2)</enum><text>in the first
sentence, by striking “shall, after consultation” and inserting the following:
“shall—</text>
<quoted-block id="ID2D1EED8C748D4B4284B84348D473D7D3" style="OLC">
<clause id="ID36E7B7ABA8DE48C2AB1BA9A8DCCE412C" indent="up2"><enum>(i)</enum><text>after
consultation</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID06C1BFFA8A844788A8CE3999B1555312"><enum>(3)</enum><text>by striking
“agency. Goals established” and inserting the following: “agency;</text>
<quoted-block id="ID040675C6A5C64D1397D0CBC6C09B29D1" style="OLC">
<clause id="ID92CE411665B0410FABE80CB9FC92BC64" indent="up2"><enum>(ii)</enum><text>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</text>
</clause><clause id="IDCB44CBBB9BEE45E0A54F21F82275F149" indent="up2"><enum>(iii)</enum><text>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.</text>
</clause><subparagraph id="IDB79030F5BE73498B966AFC1884F6B19C" indent="up2"><enum>(B)</enum><text>Goals
established</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDD739858B57024205AE134A763837757D"><enum>(4)</enum><text>by striking
<quote>Whenever</quote> and inserting the following:</text>
<quoted-block id="ID82FE9C38173147B1AF7EEDF88DAD063C" style="OLC">
<subclause id="ID7D225352EE1D491E846593E3BEBD1388" indent="up4"><enum>(C)</enum><text>Whenever</text>
</subclause><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDFB1BD6C236874829AD57AB1CD3F5D6E1"><enum>(5)</enum><text>by striking
<quote>For the purpose of</quote> and inserting the following:</text>
<quoted-block id="IDEFA20ACEF05C4865A1355591E72FCEB7" style="OLC">
<subparagraph id="IDB1D2173F825D4A7680C1036C0CA48094" indent="up2"><enum>(D)</enum><text>For the purpose
of</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDE2246DCDC18848BF8638A5ECD51C59B4"><enum>(6)</enum><text>in the last
sentence—</text>
<subparagraph id="ID2841967F00214DB7B8A197CE78088B5F"><enum>(A)</enum><text>by striking
<quote>(A) contracts</quote> and inserting <quote>(i) contracts</quote>;
and</text>
</subparagraph><subparagraph id="IDDCDE090BCBD6431AB6AB293E4403B456"><enum>(B)</enum><text>by striking
<quote>(B) contracts</quote> and inserting <quote>(ii) contracts</quote>;
and</text>
</subparagraph></paragraph><paragraph id="ID51AC0C6F06E2449FB84FD54AE2473A24"><enum>(7)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID27CDA1CBDC574685888BA961BF30CBCA" style="OLC">
<subparagraph id="ID03ACE6A61E604DE097314EE226D75AFF" indent="up2"><enum>(E)</enum><clause commented="no" display-inline="yes-display-inline" id="ID3B95D814A19E4CA59F41BC35CA4A73B0"><enum>(i)</enum><text>Each procurement
employee described in clause (ii)—</text>
<subclause id="IDB5583C9CCE7642A59B31385425378943" indent="up1"><enum>(I)</enum><text>shall communicate to their
subordinates the importance of achieving small business goals; and</text>
</subclause><subclause id="ID73B9CF7A4C4F45F0866E7A60A267C734" indent="up1"><enum>(II)</enum><text>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.</text>
</subclause></clause><clause id="IDC4B551D1CBE94B8CBF27E4EFBE1208EF" indent="up1"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID4F01489CCDAF48988496F0F3E7FCE361"><enum>(b)</enum><header>Annual
reports</header><text>Section 10(d) of the <act-name parsable-cite="SBA">Small
Business Act</act-name> (15 U.S.C. 639(d)) is amended—</text>
<paragraph id="IDBD055A927E6D4989ABFFD77452148B80"><enum>(1)</enum><text>by inserting
<quote>and each agency that is a member of the President’s Management Council
(or any successor thereto)</quote> after <quote>Department of Defense</quote>
the first place that term appears; and</text>
</paragraph><paragraph id="ID32403FC5188548D1AD243C180B7C9D7D"><enum>(2)</enum><text>by inserting
<quote>or that agency</quote> after <quote>Department of Defense</quote> the
second place that term appears.</text>
</paragraph></subsection></section><enum>XIV</enum><header>Small business
size and status integrity</header>
<section id="id64ED1DCF9CE246F2992DEC054DCD4705" section-type="subsequent-section"><enum>1401.</enum><header>Policy and
presumptions</header><text display-inline="no-display-inline">Section 3 of the
Small Business Act (15 U.S.C. 632) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idF118493D07264DAEAEAEBF2CF30DA7CF" style="OLC">
<subsection id="id0BE36131C6BB44F197236C1346990786"><enum>(s)</enum><header>Presumption</header>
<paragraph id="idF023531C736F4CC8AD0F7EF08402B966"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID2fc1a3901ece41239b63b16147cead47"><enum>(2)</enum><header>Deemed
certifications</header><text>The following actions shall be deemed affirmative,
willful, and intentional certifications of small business size and
status:</text>
<subparagraph id="ID182bf27565684ddbab423902fb88c827"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="IDaa596e887b764e6c82f20e5ad9f421f1"><enum>(B)</enum><text>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.</text>
</subparagraph><subparagraph id="IDedc2c80663364e17839d5c57cf08ca81"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="ID8ddce999edf84a199df654bb405b3d0b"><enum>(3)</enum><header>Paper-based
certification by signature of responsible official</header>
<subparagraph id="ID5c5bda3add564b8da993b8fd224ec20b"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="IDc1ec607303a84eefb5646f0cbfbca06a"><enum>(B)</enum><header>Content of
certifications</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID04ad88ac0d7a470b939aec687e23d842"><enum>(4)</enum><header>Regulations</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idB32756F0C11147719B8C6CE52512A527" section-type="subsequent-section"><enum>1402.</enum><header>Annual
certification</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idF034D0F260E845CC85DF4B73483A7046" style="OLC">
<subsection id="ID455ef438b3984799911e0c45fbba7baf"><enum>(t)</enum><header>Annual
certification</header>
<paragraph id="idDE4D269A113A4446B8C92108AF65C80A"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="IDf27e99c187814feb8e35b55c6824ebe0"><enum>(2)</enum><header>Regulations</header><text>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—</text>
<subparagraph id="ID994d88627c0244f689779473139fbb24"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="ID034d2253c26f443f8b4995c410b68915"><enum>(B)</enum><text>the requirements
of this subsection are implemented in a manner presenting the least possible
regulatory burden on small business concerns.</text>
</subparagraph></paragraph><paragraph id="id61AFBE1E5BAA45DE869D1B7634DD0AAE"><enum>(3)</enum><header>Determination
of size status</header><text>Small business size or status for purposes of this
Act shall be determined at the time of the award of a Federal—</text>
<subparagraph id="id389C7FEA742D4B4D935A9BA2E5EE82B4"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="idD9CEBC9EA9CF47F7A73B341FDB0481BF"><enum>(B)</enum><text>subcontract;</text>
</subparagraph><subparagraph id="idABDBC83613A8423AB2E89B1ECCD7C9CF"><enum>(C)</enum><text>grant;</text>
</subparagraph><subparagraph id="id03434C0BBB644CBD93E481CA26AD35ED"><enum>(D)</enum><text>cooperative
agreement; or</text>
</subparagraph><subparagraph id="id4A5310DEAADF476BA9EE38DD9C3C9F1C"><enum>(E)</enum><text>cooperative
research and development
agreement.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idC1BF7FD7F793477B8A0ED28270F7ED8E" section-type="subsequent-section"><enum>1403.</enum><header>SBA suspensions and
debarments authority</header><text display-inline="no-display-inline">Section
16(d)(2)(C) of the Small Business Act (15 U.S.C. 645(d)(2)(C)) is amended by
inserting after <quote>(or any successor regulation)</quote> the following:
<quote>or as specified in part 145 of title 13, Code of Federal Regulations (or
any corresponding similar regulation or ruling)</quote>.</text>
</section><section id="id63EE5CB3421F49D191F72881BA613917" section-type="subsequent-section"><enum>1404.</enum><header>Meaningful protests
of small business size and status</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idA6B2C6C2D33443138E83851AAD8C2BD1" style="OLC">
<section id="id56893B8CC01043DCABCF9677C75FC86C"><enum>38.</enum><header>Small business
size and status protest system</header>
<subsection id="ID2CA91364AAC640A0A0F3DAA9297078BE"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="IDFB8B00BB6B64420398201AECC76CE2A3"><enum>(1)</enum><header>Protest</header><text>The
term <term>protest</term> 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—</text>
<subparagraph id="IDE727D3C0AA5741C5A432A1E8927349F0"><enum>(A)</enum><text>a solicitation or
other request by a Federal agency for offers for a contract for the procurement
of property or services;</text>
</subparagraph><subparagraph id="ID8B65507D91664EB4B7043A34B192D11C"><enum>(B)</enum><text>the cancellation
of such a solicitation or other request;</text>
</subparagraph><subparagraph id="ID51B90AD7F1924DB8A0A9EF04EFDE0954"><enum>(C)</enum><text>an award or
proposed award of such a contract; or</text>
</subparagraph><subparagraph id="IDB2D8308FCE2247A4BBB3FDDE8434FBB3"><enum>(D)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="IDB633B9B07BAB483A97B62479A6E153AE"><enum>(2)</enum><header>Interested
party</header>
<subparagraph id="id1C72F1B6B2644E09AC44A99B18FFF510"><enum>(A)</enum><header>In
general</header><text>The term <term>interested party</term>, 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.</text>
</subparagraph><subparagraph id="IDFB09178001314FC280F85CF59101908D"><enum>(B)</enum><header>Inclusions</header><text>The
term <term>interested party</term> 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.</text>
</subparagraph></paragraph><paragraph id="ID8F8D1C1DE9F446719B8E714CEEC7238E"><enum>(3)</enum><header>Federal
agency</header><text>The term <term>Federal agency</term> has the same meaning
as in section 102 of title 40, United States Code.</text>
</paragraph></subsection><subsection id="IDB25C460326A94AECB6B70EFC70F1827F"><enum>(b)</enum><header>Review of
protests; effect on contracts pending decision</header>
<paragraph id="ID83B96DC71F3C478EA27F3F473ABAB5D5"><enum>(1)</enum><header>In
general</header><text>Under procedures established under subsection (d), the
Administrator shall decide a protest submitted to the Administrator by an
interested party.</text>
</paragraph><paragraph id="ID801062F6D03D4017B7172C741374F00A"><enum>(2)</enum><header>Receipts of
protests</header>
<subparagraph id="idBECC222BABB34A4EB277DB86FAA9FB4D"><enum>(A)</enum><header>In
general</header><text>Not later than 1 day after the receipt of a protest, the
Administrator shall notify the Federal agency involved of the protest.</text>
</subparagraph><subparagraph id="ID884640268D2D401CB29806A1902C3875"><enum>(B)</enum><header>Agencies</header><text>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—</text>
<clause id="ID4E3D3BBFB84941BD84A1757FCD6B3FEE"><enum>(i)</enum><text>not later than 30
days after the date of the receipt of that notice by the agency;</text>
</clause><clause id="ID8A3E3F4035DE4907B35FAA64BF41C842"><enum>(ii)</enum><text>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</text>
</clause><clause id="IDFFB350D44A2544E482B52AD9D4C889FD"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="ID500F9896EC574087A66B85A6450AD807"><enum>(C)</enum><header>Exceptions</header><text>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).</text>
</subparagraph></paragraph><paragraph id="IDA4F3B463EE354F12AC5C4C6E8644982B"><enum>(3)</enum><header>Award of
contracts</header>
<subparagraph id="idD9531F7991BA4188B9B0DBA47C58B122"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID57DDFD10404940C1A4252821D1508452"><enum>(B)</enum><header>Exceptions</header><text>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)—</text>
<clause id="ID81E00700A9E94472B76313E4474A275D"><enum>(i)</enum><text>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</text>
</clause><clause id="IDF793EAADF6774E52906B6A07E4460ADC"><enum>(ii)</enum><text>after the
Administrator is advised of that finding.</text>
</clause></subparagraph><subparagraph id="ID6F5C3749D94B4CCD96C18B92404AFC80"><enum>(C)</enum><header>Urgent and
compelling circumstances</header><text>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.</text>
</subparagraph></paragraph><paragraph id="IDACFBBD5C537F4B32ACABADFB8A1BE795"><enum>(4)</enum><header>Performance</header>
<subparagraph id="idDC49791F4A354336A5B4B420701F3428"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="IDE0706002BD1E428D82E5C1757CC764D2"><enum>(B)</enum><header>Authorization
withheld</header><text>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—</text>
<clause id="ID12F3C3E890824D639F655284FC6BE33F"><enum>(i)</enum><text>a
protest is likely to be filed with the Administrator alleging a violation of a
small business size or status requirement; and</text>
</clause><clause id="ID6F56BE29769E4A89B9256D5534B8F21A"><enum>(ii)</enum><text>the immediate
performance of the contract is not in the best interests of the United
States.</text>
</clause></subparagraph><subparagraph id="ID4882E51F0F654CE2BF66772B2BDA415B"><enum>(C)</enum><header>Notice of
protest</header>
<clause id="id2687F803CF9141A482E48A1C38D4D857"><enum>(i)</enum><header>In
general</header><text>If the Federal agency awarding the contract receives
notice of a protest in accordance with this subsection during the period
described in subparagraph (D)—</text>
<subclause id="IDE4B81EF785F14C7998A689BA0AD8CE5F"><enum>(I)</enum><text>the contracting
officer may not authorize performance of the contract to begin while the
protest is pending; or</text>
</subclause><subclause id="ID83A4CF00EBD2445D9288899FB27DEFF5"><enum>(II)</enum><text>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.</text>
</subclause></clause><clause id="IDBD58C1D8AD084B0C866B061D4D033235"><enum>(ii)</enum><header>Performance</header><text>Performance
and related activities suspended under clause (i)(II) by reason of a protest
may not be resumed while the protest is pending.</text>
</clause><clause id="ID7AA8C9D32FBA484AA2C1416B44214ECF"><enum>(iii)</enum><header>Exceptions</header><text>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)—</text>
<subclause id="IDB3B6BF1BB66B4DF094DDFA473A064F1B"><enum>(I)</enum><text>upon a written
finding that—</text>
<item id="ID7FE84367B9BC4763A7F95F443030B489"><enum>(aa)</enum><text>performance of
the contract is in the best interests of the United States; or</text>
</item><item id="IDFD12D47B3D7C440B982DE0BBF194D9FF"><enum>(bb)</enum><text>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</text>
</item></subclause><subclause id="IDFCC2A0C8BEF9421D9D579901C5DCADF5"><enum>(II)</enum><text>after the
Administrator is notified of that finding.</text>
</subclause></clause></subparagraph><subparagraph id="ID7B768875FCC842A68391F4D5ADA2F810"><enum>(D)</enum><header>Time
period</header><text>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—</text>
<clause id="IDA23A80B12961498C8A2A86FC68AA801A"><enum>(i)</enum><text>the date that is
10 days after the date of the contract award; or</text>
</clause><clause id="ID025BD64F0C764EC9B348ECFF4C168357"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="IDECD6E82838EF4569B1E3999DA3D3F16D"><enum>(5)</enum><header>Nondelegation</header><text>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.</text>
</paragraph><paragraph id="IDBD40CC8B82F94BC5B02672889267AE8F"><enum>(6)</enum><header>Provision of
documents</header>
<subparagraph id="id4A0EE95350404D78A44C6F4604EE19A1"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="IDBCD3280BE1134068BE94335AD1D9CC8C"><enum>(B)</enum><header>Protective
orders</header>
<clause id="id96E2AA0F2CF04D94915B9FB9CA7F924D"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="IDB1DBE112EC304E8882DBBE1F52A3091A"><enum>(ii)</enum><header>Types of
information</header><text>Information referred to in clause (i) is procurement
sensitive information, trade secrets, or other proprietary or confidential
research, development, or commercial information.</text>
</clause><clause id="IDD805640DFB6A47FEBDC54112F88A6826"><enum>(iii)</enum><header>Information
to the Federal Government</header><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="ID96352E9D08004878808E6A010AFBA779"><enum>(7)</enum><header>Interested
parties</header><text>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.</text>
</paragraph></subsection><subsection id="ID44FDC2E6FDE541608356F56E9585AFF5"><enum>(c)</enum><header>Decisions on
protests</header>
<paragraph id="id925916445B19492B9834AA9937E1F2E3"><enum>(1)</enum><header>In
general</header>
<subparagraph id="id5E73B120503348EAA9393382DA21C346"><enum>(A)</enum><header>Inexpensive and
expeditious resolution</header><text>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.</text>
</subparagraph><subparagraph id="ID37CAB7202D1D43A1816249AE5E1FFB0A"><enum>(B)</enum><header>Express
option</header><text>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.</text>
</subparagraph><subparagraph id="ID37CC8361CF3B44F0A1C70FF92E8E7064"><enum>(C)</enum><header>Amendments</header><text>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).</text>
</subparagraph><subparagraph id="ID5A26C4C6CFAE405C85C0F58D1F7EAA23"><enum>(D)</enum><header>Frivolous
protests</header><text>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.</text>
</subparagraph></paragraph><paragraph id="id3E866D33ED174B469A39BEE28AAB7280"><enum>(2)</enum><header>Compliance with
law</header>
<subparagraph id="idC91381BA41624FD6AA7FFD564DE39D10"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="ID4580CDE9906E4874AB8A9DF17A2E917A"><enum>(i)</enum><text>refrain from
exercising any of its options under the contract;</text>
</clause><clause id="ID42F6F22D7CD14D2FBEF15CBB04F80531"><enum>(ii)</enum><text>recompete the
contract immediately;</text>
</clause><clause id="ID4C58730C7B004F268AE1DEFA7960CDBA"><enum>(iii)</enum><text>issue a new
solicitation;</text>
</clause><clause id="IDE84A16F85F55452C925A16AF29461F90"><enum>(iv)</enum><text>terminate the
contract;</text>
</clause><clause id="ID78BA94D4208F4ED98A6E57E9044CBE7D"><enum>(v)</enum><text>award a contract
consistent with the requirements of such statutes and regulations; or</text>
</clause><clause id="ID9010316DA24642BEB1AEC7798CDEB6F8"><enum>(vi)</enum><text>implement such
other recommendations as the Administrator determines to be necessary in order
to promote compliance with procurement statutes and regulations.</text>
</clause></subparagraph><subparagraph id="ID3F8BD18DFB7F4A4E878D054AE0D5D1D7"><enum>(B)</enum><header>Best interests
of United States</header><text>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.</text>
</subparagraph><subparagraph id="ID0AA4F3DC2AB54BFEB7F17B115CA091B6"><enum>(C)</enum><header>Implementation</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID5717F30714A1461E80AAE84A8A4127EB"><enum>(3)</enum><header>Payment of
costs</header>
<subparagraph id="idCAEDE1FF129D41C5B9A055FE123876DF"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="IDE7DAF9473F594A95ADF7198B0FD98BDF"><enum>(i)</enum><text>filing and
pursuing the protest, including reasonable attorney's fees and consultant and
expert witness fees; and</text>
</clause><clause id="ID278ACEA9F45B4897856C6D5ACCCA1E7A"><enum>(ii)</enum><text>bid and proposal
preparation.</text>
</clause></subparagraph><subparagraph id="ID5AB8C0ADA7A84DF1907A6569147E084B"><enum>(B)</enum><header>Costs not
included</header><text>No party (other than a small business concern) may be
paid, under a recommendation made under the authority of subparagraph
(A)—</text>
<clause id="IDDE58DFF6A6714373BE905515B4218C18"><enum>(i)</enum><text>costs for
consultant and expert witness fees that exceed the highest rate of compensation
for expert witnesses paid by the Federal Government; or</text>
</clause><clause id="IDBB1C2CB36F504A1A842FDDAB2EDB6581"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="IDCC8F0F8DDDF44F29AB11532358922ABC"><enum>(C)</enum><header>Recommendation
to pay costs</header><text>If the Administrator recommends under subparagraph
(A) that a Federal agency pay costs to an interested party, the Federal agency
shall—</text>
<clause id="ID25497C9383304C108FCB765E7147F61D"><enum>(i)</enum><text>pay the costs
promptly; or</text>
</clause><clause id="ID0A761FAFD919422C950E93037DE9D26A"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="IDB4AFB850DCE74108A8C656DD4077B20B"><enum>(D)</enum><header>Agreement on
amount</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID7DEC8444C121498999B5684A90FEE808"><enum>(4)</enum><header>Decisions</header><text>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.</text>
</paragraph><paragraph id="IDA3BADB56CC984747BFC3A9942F85ED04"><enum>(5)</enum><header>Reports</header>
<subparagraph id="id740B719A4D864A018AE03D0492A2409F"><enum>(A)</enum><header>Failure to
implement recommendations</header>
<clause id="id5ED52D7601114C16B24A32D63117C482"><enum>(i)</enum><header>In
general</header><text>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).</text>
</clause><clause id="id10BF597493374499BBDA6EAE04B73F0E"><enum>(ii)</enum><header>Contents</header><text>Each
report under clause (i) shall include—</text>
<subclause id="IDAA03CD5DCB524E3BAAF84EBC3E131450"><enum>(I)</enum><text>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</text>
</subclause><subclause id="IDDAACC05E2675490FB682CF8A5DAAAD2F"><enum>(II)</enum><text>a recommendation
regarding whether, in order to correct an inequity or to preserve the integrity
of the procurement process, Congress should consider—</text>
<item id="ID1D870B6117484093A1453E5C3DF27DFA"><enum>(aa)</enum><text>private relief
legislation;</text>
</item><item id="ID1B7E25152BE04F59AF1F2D048F094EE8"><enum>(bb)</enum><text>legislative
rescission or cancellation of funds;</text>
</item><item id="ID09A2DD9E00F548FAAF4F7BEA2ED7CD10"><enum>(cc)</enum><text>further
investigation by Congress; or</text>
</item><item id="IDA66A962CB18B4342BF3049731A942319"><enum>(dd)</enum><text>other
action.</text>
</item></subclause></clause></subparagraph><subparagraph id="ID6E1DC96CF509489DB393B03CF2535D62"><enum>(B)</enum><header>Annual
reports</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="IDA1D937E2BE2A4616B35DC22D01908122"><enum>(d)</enum><header>Regulations;
authority of Administrator to verify assertions</header>
<paragraph id="ID27E89948FF244FDFB2D4D247344E1EE1"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID0F2A4FBC097444F882D0BE310789F235"><enum>(2)</enum><header>Computation of
time</header><text>The procedures established under paragraph (1) shall provide
that, in the computation of any period described in this section—</text>
<subparagraph id="IDAF6496E3D84B4BA7806FA46E6E86E2BC"><enum>(A)</enum><text>the day of the
act, event, or default from which the designated period of time begins to run
not be included; and</text>
</subparagraph><subparagraph id="IDE1D745FE7B55408790D08BF763EC959B"><enum>(B)</enum><text>the last day
after such act, event, or default be included, unless—</text>
<clause id="ID70167F30E0BD40B0BE28DBFCD33DA899"><enum>(i)</enum><text>such last day is
a Saturday, a Sunday, or a legal holiday; or</text>
</clause><clause id="ID099671463A1B48AEBB95A43B376455AE"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="ID0A70E98EAE124463A6E4AE968A4D4F55"><enum>(3)</enum><header>Electronic
filing</header><text>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.</text>
</paragraph></subsection><subsection id="ID477652B092054047BD0B0A493A21AB9E"><enum>(e)</enum><header>Enforcement</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="idE33593EB16464EB3AACC07CDDC4649F6"><enum>(f)</enum><header>Regulations</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id7EA35B7A48FA460CB93B05976ACFC6D0" section-type="subsequent-section"><enum>1405.</enum><header>Training for
contracting and enforcement personnel</header>
<subsection id="ID1f7b2c580f9f458090308a1f7a64d5e2"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="ID4f5c4517a31144a09da6a9b70c756c8e"><enum>(b)</enum><header>Policy on
prosecutions of small business size and status fraud</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="idD520CA60B9C14FD78BD17A4FB1727FB9" style="OLC">
<subsection id="idFAC13F746381441FB8208F700E8625A8"><enum>(u)</enum><header>Policy on
prosecutions of small business size and status fraud</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idB0B7E711365B4CE4A527C6F4A85A36ED" section-type="subsequent-section"><enum>1406.</enum><header>Protests of sole
source awards</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idD5ECC8A99B9148E4A6628B4E6C3E22BC" style="OLC">
<subsection id="ID5e08e5198a6244cc89e5c6267d176cc9"><enum>(v)</enum><header>Protests of
sole source awards</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idFF99D120A0B74AF3BE116E7AC263D636" section-type="subsequent-section"><enum>1407.</enum><header>Small business size
and status for purpose of multiple award contracts</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id5C72FE2BF03F4DCA9B43AA95012B155D" style="OLC">
<subsection id="ID5278e393fced4fd0a61204e3b343ebbd"><enum>(w)</enum><header>Small Business
Size and Status for Purpose of Multiple Award Contracts</header>
<paragraph id="IDebe5248a34a54d81a8f1587a5a65af72"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID10a924e1f2294da9aa39332e6a87f754"><enum>(2)</enum><header>Relation to
other laws</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id86F4BFFF3A3B4A7CA43946DDA6C35BAD" section-type="subsequent-section"><enum>1408.</enum><header>Size standards
development</header>
<subsection id="id12983F20E117442CB1677B8B48356AB2"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id29B53FE1553E4F2A9866176F3878D22B" style="OLC">
<subparagraph id="ID1cd2aedfcc0d469daa6ed414eed833e3"><enum>(D)</enum><header>Tiered size
standards</header><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID5631bcd6d59e4dc8898775e14e17c6ff"><enum>(b)</enum><header>Reservation of
contracts</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="idA2C182295C544F6191E4DE4CCC3D96A3" style="OLC">
<subsection id="idBA5F9A1CB4D34F3E92A387FF467B2AF9"><enum>(v)</enum><header>Tiered size
standards</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idC8B0FC203D7542F5BFB6719DD3BC6BD0" section-type="subsequent-section"><enum>1409.</enum><header>Full-time employee
equivalents</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idCF089AFBF1BE4E998A5FCF837ED4D654" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="ID276de2c05c4f4f7e8e2bde32d079e3b1"><enum>(E)</enum><header>Full-time
employee equivalents</header><text display-inline="yes-display-inline">In
computing the number of employees for purposes of size determinations under
this Act, the Administrator shall utilize the full-time equivalents
method.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>XV</enum><header>Small Business
Innovation Research and Small Business Technology Transfer Programs</header>
<section id="ID53362f20bf734f648f071d241458f106"><enum>1501.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the terms <term>extramural
budget</term>, <term>Small Business Innovation Research Program</term>,
<term>SBIR</term>, <term>Small Business Technology Transfer Program</term>, and
<term>STTR</term> have the same meanings as in section 9 of the Small Business
Act (15 U.S.C. 638).</text>
</section><section id="id452D51C66CAE44A59FE605F145D89C9C"><enum>1502.</enum><header>Congressional
findings and policy</header>
<subsection id="idB9FAF149B001459689B42417637CF15D"><enum>(a)</enum><header>Findings</header><text>Congress
finds that—</text>
<paragraph id="id5ED3ABF0C9E94D3EA4AEF1295F4A3048"><enum>(1)</enum><text>Federal agency
practices excluding small business concerns from Federal research and
development efforts have wasted taxpayer funds and stifled national
competitiveness;</text>
</paragraph><paragraph id="IDbfd5a6f8f528420c8bc3ed762f7ed3ca"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="ID35dc8ec156c24957928cebad0789b1bc"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="IDdbeb4f4fb0374302875051316fce26e9"><enum>(b)</enum><header>Policy</header><text>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.</text>
</subsection></section><subtitle id="id88C37A8958424D4D93E6A37983317B2E"><enum>A</enum><header>Small business
innovation leadership</header>
<section id="IDf081a403b1ec440287cee20881a59772"><enum>1511.</enum><header>Status of the
SBA Office of Technology; National Advisory Board; transfer plan</header><text display-inline="no-display-inline">Section 9(b) of the Small Business Act (15
U.S.C. 638(b)) is amended—</text>
<paragraph id="idF9948C2F70DC4891B97ADD9920591211"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (7), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph id="id0B65A26BB60546EE8AA0C436CF299729"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (8), by striking the period at
the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="idC53CCA7904EE450689320C4FEC28C1E6"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA70C957FB7A04E07B77B6B49BB92ED90" style="OLC">
<paragraph id="IDed2a6fe5662c4dae967d13fb4878f34b"><enum>(9)</enum><text>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;</text>
</paragraph><paragraph id="idC798FFBD7C384C6FA78BC911A612F012"><enum>(10)</enum><text>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;</text>
</paragraph><paragraph id="ID92ad4ef89995487597a1b3a2e083e754"><enum>(11)</enum><text>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;</text>
</paragraph><paragraph id="id4EC001D4789F46F4932E70E96202C206"><enum>(12)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="id250F7936B6184D0590B8802139C9AC03"><enum>(13)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="id2B282A40C2A64342846E68D94E393143"><enum>B</enum><header>Fair access to
Federal innovations investments</header>
<section id="IDf87a94d3db9e451fb836564e7b1e29f1"><enum>1521.</enum><header>Accuracy in
funding base calculations; Comptroller General's audits</header><text display-inline="no-display-inline">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—</text>
<paragraph id="idF81CD18A5A394D2AB3CC685694695555"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="id9B932627B1914838BAB5FE58A7B5679D"><enum>(2)</enum><text>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).</text>
</paragraph></section><section id="ID75f7a982f1b1456da344b6519ff5eb10"><enum>1522.</enum><header>SBIR cap
increase</header><text display-inline="no-display-inline">Section 9(f)(1) of
the Small Business Act (15 U.S.C. 638(f)(1)) is amended—</text>
<paragraph id="id4B9CF2E105F145DDBFC2E948932F4EEC"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>and</quote> at the end; and</text>
</paragraph><paragraph id="idD9E7C1FB14C148DB8D01E4D3077E49C9"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subparagraph (C) and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="idFDEA7C1BC99E4949881A023BA43F4713" style="OLC">
<subparagraph id="id550C10F546A84511BB749BB38031E4FE"><enum>(C)</enum><text display-inline="yes-display-inline">not less than—</text>
<clause id="idD94028EFB5954C88839B2B62C6C9330F"><enum>(i)</enum><text display-inline="yes-display-inline">3 percent in fiscal year 2007;</text>
</clause><clause id="idD27BCB7A52FD4E90882F82808D78D67C"><enum>(ii)</enum><text display-inline="yes-display-inline">3.5 percent in fiscal year 2008;</text>
</clause><clause id="idA6B5F848F0314F74935EBA510E1C290B"><enum>(iii)</enum><text display-inline="yes-display-inline">4 percent in fiscal year 2009; and</text>
</clause><clause id="idBA8875A97BFD4424A345FE4304A2BDB5"><enum>(iv)</enum><text display-inline="yes-display-inline">4.5 percent in fiscal year 2010; and</text>
</clause></subparagraph><subparagraph id="id7CBF775548FB48C2BBBCE031C378E6E3"><enum>(D)</enum><text display-inline="yes-display-inline">not less than 5 percent in fiscal year 2011
and each fiscal year
thereafter,</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id1AC98B3A0B684BD9998518829583D4DC"><enum>1523.</enum><header>STTR cap
increase</header><text display-inline="no-display-inline">Section 9(n)(1)(B) of
the Small Business Act (15 U.S.C. 638(n)(1)(B)) is amended—</text>
<paragraph id="idE48829B75710454082C9AC90DA305E36"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (i), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph id="idE0D25B14CA364E63B7CF2E508376D7D8"><enum>(2)</enum><text>in clause (ii),
by striking <quote>thereafter.</quote> and inserting <quote>through fiscal year
2006; and</quote>; and</text>
</paragraph><paragraph id="id22764A99769E465A9B3D2869E36BD03E"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idDEE603DE6D9C4BA1AB7A8BD878A6868B" style="OLC">
<clause id="idCB6B4A5DAAB64F3FA36C23D5CB74DEA7"><enum>(iii)</enum><text display-inline="yes-display-inline">0.6 percent for fiscal year 2007 and each
fiscal year
thereafter.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID7b34ef6217bb4ccab62e8b393d26cae3"><enum>1524.</enum><header>Adjustments
in SBIR and STTR award levels</header>
<subsection id="IDf1ec1706c03f4b47b78834fa65101dd0"><enum>(a)</enum><header>SBIR
adjustments</header><text>Section 9(j)(2)(D) of the Small Business Act (15
U.S.C. 638(j)(2)(D)) is amended—</text>
<paragraph id="idA62FF8F49033485683065826F07885A5"><enum>(1)</enum><text>by striking
<quote>$100,000</quote> and inserting <quote>$150,000</quote>; and</text>
</paragraph><paragraph id="id6DA663873277468DB6F4D94423EAD596"><enum>(2)</enum><text>by striking
<quote>$750,000</quote> and inserting <quote>$1,250,000</quote>.</text>
</paragraph></subsection><subsection id="ID40f72c5a334740d79feaea5aacf6b3ad"><enum>(b)</enum><header>STTR
adjustments</header><text>Section 9(p)(2)(B)(ix) of the Small Business Act (15
U.S.C. 638(p)(2)(B)(ix)) is amended—</text>
<paragraph id="id20444828511E431A99860BD257327A79"><enum>(1)</enum><text>by striking
<quote>$100,000</quote> and inserting <quote>$150,000</quote>; and</text>
</paragraph><paragraph id="idF050D29D55CA4C3583446B6C532A2E06"><enum>(2)</enum><text>by striking
<quote>$750,000</quote> and inserting <quote>$1,250,000</quote>.</text>
</paragraph></subsection><subsection id="ID7f97a688600b4a0c8d8032f5f0be7986"><enum>(c)</enum><header>Annual
adjustments</header><text>Section 9 of the Small Business Act (15 U.S.C. 638)
is amended—</text>
<paragraph id="id9479CA4FDB6A4DB5A028087E2FA6AF61"><enum>(1)</enum><text>in subsection
(j)(2)(D), by striking <quote>and an adjustment of such amounts once every 5
years to reflect economic adjustments and programmatic considerations</quote>
and inserting <quote>and a mandatory annual adjustment of such amounts to
reflect economic adjustments and programmatic considerations</quote>;</text>
</paragraph><paragraph id="idF7E56AA1FD3C475BA0A510DE3B9712DE"><enum>(2)</enum><text>in subsection
(p)(2)(B)(ix), by striking <quote>greater or lesser amounts</quote> and
inserting <quote>with a mandatory annual adjustment of such amounts to reflect
economic adjustments and programmatic considerations, and greater or lesser
amounts</quote>.</text>
</paragraph></subsection><subsection id="ID74dbf416d1514929beaf3f7e8b45203c"><enum>(d)</enum><header>Limitation on
certain awards</header><text>Section 9 of the Small Business Act (15 U.S.C.
638) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idFDF1449CA69740C5A5C0A59A3711455B" style="OLC">
<subsection id="ID0dff38030e5140f987e9d3d58f31f522"><enum>(z)</enum><header>Limitation on
certain awards</header><text>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.</text>
</subsection><subsection id="ID252b8732eddf4820bba5383ba1a60058"><enum>(aa)</enum><header>Subsequent
phases</header>
<paragraph id="idC2BCC57F5E9E44A382EC6376258BB056"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID802eb803a2af40419119920e7674c291"><enum>(2)</enum><header>SBIR and STTR
programs</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID1fc55b14982b4705af62388fcc1f2ad2"><enum>1525.</enum><header>Majority-venture
investments in SBIR firms</header>
<subsection id="idDAF5257734E1426FA5F0D5BE396F4A40"><enum>(a)</enum><header>Authority and
determination</header><text>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.</text>
</subsection><subsection id="IDe81b867fbb0a4f27977ee7b2f3362ba0"><enum>(b)</enum><header>Qualification
requirements</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="IDb27df307743542f49212f6836984ab0d"><enum>(c)</enum><header>Registration</header><text>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.</text>
</subsection><subsection id="IDa78c1146a18c4847b34e7eb4046d128e"><enum>(d)</enum><header>Definition of
venture capital company</header><text>In this section, the term <term>venture
capital company</term> 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).</text>
</subsection></section></subtitle><subtitle id="id48323AA226074D65B83CB7E619E59DDC"><enum>C</enum><header>Acquisition of
small business innovations</header>
<section id="IDc6cb10af45e44e1994d7cae7854dd3d6"><enum>1531.</enum><header>National SBIR
and STTR technology insertion goal; reporting requirements</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="idB09C0B1570FD4B53B4EC53AA1FAC51A4" style="OLC">
<subsection id="IDf6051aa5fbcb4b65a010debf013c5988"><enum>(bb)</enum><header>National Small
Business Technology Insertion goal; reporting requirements</header>
<paragraph id="ID8e33ef4a17fa49fb87b76a27296add3b"><enum>(1)</enum><header>In
general</header><text>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 <quote>National Small Business Technology
Insertion goal</quote>).</text>
</paragraph><paragraph id="ID9fab887a49e0423689ef38166ed5f578"><enum>(2)</enum><header>National Small
Business Technology Insertion goal</header><text>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.</text>
</paragraph><paragraph id="IDe907a209ddc14d389a482327d11d8641"><enum>(3)</enum><header>Reports</header><text>Each
report submitted under paragraph (2) shall include—</text>
<subparagraph id="idB22CABE7A55E43869502F0E8C8BA1B82"><enum>(A)</enum><text>the name of the
contracting agency;</text>
</subparagraph><subparagraph id="id6847E97296644E5B98D0A95AA80D6E9D"><enum>(B)</enum><text>the identity of
the agency or company making the Phase III award;</text>
</subparagraph><subparagraph id="idA19C59E58D1F412D9C07A1D75195BA22"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph id="id04AA442895EC491E81C3A1304710B6FB"><enum>(D)</enum><text>the dollar amount
of the Phase III
award.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDce52507b0a574d948774fdd53dde138c"><enum>1532.</enum><header>Intellectual
property protections for small business innovations</header>
<subsection id="ID84e4d716a90045199d899e89013a4544"><enum>(a)</enum><header>SBIR and STTR
data rights</header><text>Section 9(e) of the Small Business Act (15 U.S.C.
638(e)) is amended—</text>
<paragraph id="idA36BAA5947BE4181A65D6388DD2BC2EA"><enum>(1)</enum><text>in paragraph (7),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="id838D7DBF9D3745FE8A75EA4B0B76D641"><enum>(2)</enum><text>in paragraph (8),
by striking the period and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="id14BDDDD91D494F928EFD17168E90D484"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id14A2FF34C5DA447AA410DE2EAC9C2910" style="OLC">
<paragraph id="IDf9ded3944f2e4a8c881daa72d5429cdd"><enum>(9)</enum><text><term>data</term>,
in connection with rights in or rights to data—</text>
<subparagraph id="id629197B04131430481D9A5D1135AB887"><enum>(A)</enum><text>includes rights
in and rights to prototypes, as consistent with paragraph (5)(C);</text>
</subparagraph><subparagraph id="ID32b9775b65114aa3a8d28edb04f18a90"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="ID1f982a6a33e7483984f803379f63559a"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph id="ID2dc0bce6c3904f38b16d6f8cd36d7939"><enum>(D)</enum><text>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-protégé
agreements.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="ID6bbad286623b44a99e2555f51258474b"><enum>1533.</enum><header>SBIR and STTR
special acquisition preference</header>
<subsection id="IDe1884c1efab14b058d7024e5cd3c0234"><enum>(a)</enum><header>Codification of
regulatory preference</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id836949C6E88B4727B1522FA120B7CF91" style="OLC">
<subsection id="id6A471CF1BD334054A135D37479EC7543"><enum>(cc)</enum><header>Phase III
awards</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID8670cb61d2974aceb8704ea52e781927"><enum>(b)</enum><header>Policies</header><text>Section
9 of the Small Business Act (15 U.S.C. 638) is amended—</text>
<paragraph id="idEDD8A246B7234B89BC4CFECF8F738A54"><enum>(1)</enum><text>in subsection
(j)(2)(C)—</text>
<subparagraph id="idF273E75674FB41E1AF76662453F2DA39"><enum>(A)</enum><text>by striking
<quote>, to the extent practicable,</quote>; and</text>
</subparagraph><subparagraph id="idEE4EE0CDE0FE43089FD2F8BC8C1FFD4B"><enum>(B)</enum><text>by inserting
before the semicolon at the end <quote>, unless the agency establishes on the
record that such an award is not practicable</quote>; and</text>
</subparagraph></paragraph><paragraph id="id104E0F3EBEFA46FFB83870DA627D748E"><enum>(2)</enum><text>in subsection
(p)(2)(F)—</text>
<subparagraph id="id78827B8639934C64BA328C5F94AE971F"><enum>(A)</enum><text>by striking
<quote>, to the extent practicable,</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDF8D34EA463F445AB737763ACCA95B86"><enum>(B)</enum><text>by inserting
before the period at the end <quote>, unless the agency establishes on the
record that such an award is not practicable</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDa026209c746148d598e9e76592798eb2"><enum>(c)</enum><header>Reduction of
waste and duplication in Federal technology contracting</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="idAA43C5A2A49745DFAD6E2ADA3019DD83" style="OLC">
<subsection id="id6E00AC62C05A4FE3A2F86917BFC026AB"><enum>(dd)</enum><header>Duplication of
prior awards</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDf69ddd55244843bfaf69be42d8dca018"><enum>1534.</enum><header>SBIR and STTR
mentor-protégé programs</header>
<subsection id="ID8e0c9e380d0d4f24b9087e9b5678df1d"><enum>(a)</enum><header>Authorization</header><text>The
head of each Federal agency may establish a mentor-protégé program to provide
development and commercialization assistance to small business concerns
participating in the SBIR program and the STTR program.</text>
</subsection><subsection id="ID8353b537f9254e8eb9b77eabe0d947c1"><enum>(b)</enum><header>Types of
assistance authorized</header><text>The following types of assistance are
authorized for mentor-protégé programs:</text>
<paragraph id="ID8bd442dc9f4a452b9dc1467d6895c530"><enum>(1)</enum><text>Assistance with
general business development, business management, commercialization marketing,
or corporate infrastructure.</text>
</paragraph><paragraph id="ID79e949a7200a418d9a71ecab78fa29df"><enum>(2)</enum><text>Testing and
evaluation assistance for insertion of SBIR and STTR technologies into
technical or weapons systems.</text>
</paragraph><paragraph id="ID9586db1b7ba449dd9172f568e7bdde7e"><enum>(3)</enum><text>Commercialization
through Federal subcontracts awarded in accordance with the terms of the
special acquisition preference.</text>
</paragraph><paragraph id="ID2ceda444cc8c4b77a69630a1478abe30"><enum>(4)</enum><text>Payment of
progress payments and advance payment for the performance of subcontracts
commercializing SBIR and STTR technologies developed by the protégé
firm.</text>
</paragraph><paragraph id="ID120db2737a8f4625ae20b07e392e7fa8"><enum>(5)</enum><text>Loans to a
protégé firm towards development and commercialization of SBIR or STTR
technologies.</text>
</paragraph></subsection><subsection id="ID958e0a1676bf4787b01acf7ae82eb398"><enum>(c)</enum><header>Program
terms</header><text>The head of a Federal agency is authorized to approve
mentor-protégé agreements providing to the mentor firm incentives,
including—</text>
<paragraph id="id8681EFD88AA646D18868001ACD90E00F"><enum>(1)</enum><text>credit towards
meeting the mentor's small business subcontracting goals; and</text>
</paragraph><paragraph id="id0C4E8BE528B6445E9004F1C548BE3795"><enum>(2)</enum><text>contractual term
extension incentives.</text>
</paragraph></subsection><subsection id="ID9f43d9ae82af4ea4b1116605d05f17a6"><enum>(d)</enum><header>Approval</header>
<paragraph id="ID69263a2241e446f9ba5254e3a018d122"><enum>(1)</enum><header>In
general</header><text>The Administrator shall approve a SBIR and STTR
mentor-protégé program in each Federal agency that establishes such a
program.</text>
</paragraph><paragraph id="ID990cdf6fabc7436a812ab471f7fc8056"><enum>(2)</enum><header>Clarification
of applicability</header><text>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-protégé agreements established for the purpose of assisting SBIR and
STTR small business concerns.</text>
</paragraph><paragraph id="IDcdc8580e72284ae496cc07dba849d71e"><enum>(3)</enum><header>Data rights
protections</header><text>Notwithstanding any other provision of law, no
mentor-protégé 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).</text>
</paragraph><paragraph id="idC4413543713048808E0C6BE1FC421F5C"><enum>(4)</enum><header>Approval of
agreements</header><text>The SBIR program manager and the STTR program manager
at a Federal agency shall each ensure that Federal reimbursement funding for
mentor-protégé assistance to SBIR and STTR small business concerns is directed
towards development, testing, evaluation, and commercialization of SBIR and
STTR technologies, respectively.</text>
</paragraph><paragraph id="ID79a7a31d8eaf4966b0d0a914215fe2c6"><enum>(5)</enum><header>Reporting
requirement</header><text>Any mentor-protégé 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-protégé assistance.</text>
</paragraph></subsection></section><section id="ID1406cefe36d54989a0252a43812dafb7"><enum>1535.</enum><header>Subcontracting
with Federal laboratories and research and development centers</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id70A8FA4B0827424F9E3CDEECB361CEA9" style="OLC">
<subsection id="ID6dd0206ec0e04ccabdfcbc326a8226b6"><enum>(ee)</enum><header>Subcontracting</header>
<paragraph id="id948266DF8DD04AFB967CE548BA6FF6A1"><enum>(1)</enum><header>Authorization</header><text>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.</text>
</paragraph><paragraph id="IDd93fb6d181744ad59bc56019e94c9bd1"><enum>(2)</enum><header>Prohibition</header><text>No
Federal agency shall—</text>
<subparagraph id="ID4e9391e29007474c89b6ad392166763a"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="IDdb5cfd3c55d24a418b461034909298c1"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="ID4fc6745e4351418fbb242a7c2461881a"><enum>(C)</enum><text>approve a
subcontracting arrangement which violates any provisions, including data rights
protections provisions, of this section or the SBIR and the STTR Policy
Directives.</text>
</subparagraph></paragraph><paragraph id="ID79348342a83147f89ff772df8e33de57"><enum>(3)</enum><header>Implementation</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID97fa6368aa1c4de5b102daa749a83b8c"><enum>1536.</enum><header>Innovation
commercialization pilot programs</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id3AA47406437442B1836FFF56644D1237" style="OLC">
<subsection id="ID4713ce94848b4de7886c7036c82e64f7"><enum>(ff)</enum><header>Innovation
commercialization pilot programs</header>
<paragraph id="idD33B79EAB87B4273B2ABD29304D8857E"><enum>(1)</enum><header>In
general</header><text>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 <quote>pilot program</quote>) to
accelerate the transition of technologies, products, and services developed
under the SBIR program to Phase III, including the acquisition process.</text>
</paragraph><paragraph id="IDe7886a2beac84173b37c30d3bf4f3c7f"><enum>(2)</enum><header>Identification
of research programs for accelerated transition to acquisition
process</header><text>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.</text>
</paragraph><paragraph id="ID7d6148f7a8c94db9878f5be547cc8f12"><enum>(3)</enum><header>Limitation</header><text>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.</text>
</paragraph><paragraph id="ID118f49d922f841208a1d1644878163fe"><enum>(4)</enum><header>Funding</header>
<subparagraph id="id339C5B22668D4E0E9DD106487E4EBD0C"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="idFD27097966A34A279BC25EEA3029C808"><enum>(B)</enum><header>Limitations</header><text>Any
funds used under subparagraph (A)—</text>
<clause id="ID6093644ec32442078f7eb63b5a6c67ca"><enum>(i)</enum><text>shall not be
subject to the limitations on the use of funds in subsection (f)(2); or</text>
</clause><clause id="ID3bee6059e0914cea9bc0f0f3011404b4"><enum>(ii)</enum><text>may not be used
to make Phase III awards.</text>
</clause></subparagraph></paragraph><paragraph id="ID5fbe453e33a14a9589ad61c0c9c61fe2"><enum>(5)</enum><header>Evaluative
report</header>
<subparagraph id="id824B4E2EB5AA4A2B9B603AA2B2950C9A"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="idFCAEF6CAA9E54019833D3519EE947369"><enum>(B)</enum><header>Contents</header><text>Each
report under subparagraph (A) shall include—</text>
<clause id="IDc1a02977f19b42dea8f01ba2b41bd6ad"><enum>(i)</enum><text>an accounting of
the funds used in a pilot program;</text>
</clause><clause id="ID577eb89b74cb47aea68f4fa67172892c"><enum>(ii)</enum><text>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</text>
</clause><clause id="ID02e76a565ce94d86bcc4afc9ebf552df"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="ID86555baf20624567adf7a488cb03ad82"><enum>(6)</enum><header>Authorized
incentives and activities</header><text>In carrying out a pilot program, the
head of the Federal agency concerned is authorized to—</text>
<subparagraph id="ID66f2c8187fde42e9b295b1e1770f745d"><enum>(A)</enum><text>offer contractual
term and payment incentives to prime contractors for successful
commercialization of SBIR technologies; and</text>
</subparagraph><subparagraph id="IDf1c710e5d02a498b8f61ebd1f5b08dfb"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="IDdfd8d8d0d6a44030861893d13b665cfe"><enum>(7)</enum><header>Interagency
commercialization</header><text>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.</text>
</paragraph><paragraph id="ID8bba9abcb8bd403e946213194fea077d"><enum>(8)</enum><header>Sunset</header><text>The
authority to establish a pilot program, and any pilot program established,
under this subsection shall terminate at the end of fiscal year
2010.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDef655cf633e74d67b15bc1182c57f55a"><enum>1537.</enum><header>Enforcement</header>
<subsection id="ID50507fdfc2654ef886228a84f98efc13"><enum>(a)</enum><header>Notification</header><text>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.</text>
</subsection><subsection id="IDb73d95ce4dd84aa7853ca1dd2312eb39"><enum>(b)</enum><header>Reporting</header><text>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: <quote>, 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</quote>.</text>
</subsection></section></subtitle><subtitle id="id88BBD76D86994872AFD54BF4718C767E"><enum>D</enum><header>Technical and
financial assistance for small business innovation</header>
<section id="ID7f41eb39a519490a927b65834ceada41"><enum>1541.</enum><header>Reauthorization
and enhancement of State, local, and rural innovation assistance
programs</header>
<subsection id="IDb401ff60a56c421cb836ef182622b2d5"><enum>(a)</enum><header>Federal and
State program extension</header><text>Section 9(s) of the Small Business Act
(15 U.S.C. 638(s)) is amended—</text>
<paragraph commented="no" id="IDab8043046f8b4379b238a2b72b99e190"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>1995</quote> and inserting <quote>2012</quote>; and</text>
</paragraph><paragraph id="IDbad7f94b5a704e3b85a7ddcac1f25544"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>$2,000,000</quote> and inserting
<quote>$5,000,000</quote>.</text>
</paragraph></subsection><subsection id="ID0b1445bcd1da449283d7617422ab1a97"><enum>(b)</enum><header>Rural outreach
program extension</header><text>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 <quote>2005</quote> and inserting <quote>2012</quote>.</text>
</subsection></section><section id="ID5e3da4537c0c41a0a5848d6067ee1c36"><enum>1542.</enum><header>Continued
evaluation by the National Academy of Sciences</header><text display-inline="no-display-inline">Section 108 of the Small Business
Reauthorization Act of 2000 (114 Stat. 2763A–671) is amended by adding at the
end:</text>
<quoted-block display-inline="no-display-inline" id="id5CB18CA971FD47019AE1387C52D574FA" style="OLC">
<subsection id="ID95bbe8ea106842318afc66b62afc264c"><enum>(e)</enum><header>Extensions and
enhancements of authority</header>
<paragraph id="ID3686827741024d34b06569890bf64628"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID8a82f9f9b0f74dc8b109cf3584e69353"><enum>(2)</enum><header>Report</header>
<subparagraph id="idA49FF880003B462484923C71031DEE71"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="IDdc7576d696984551a5f0769e9e03b879"><enum>(i)</enum><text>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</text>
</clause><clause id="IDe66fed7af8194f508786db3e7d5a1682"><enum>(ii)</enum><text>addressing
barriers to greater commercialization of small business innovations.</text>
</clause></subparagraph><subparagraph id="id943EB7331B644DFF84EFCEC26274BCDF"><enum>(B)</enum><header>Submission</header><text>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).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID1b8ff7283ba94d3ba02f2ff002e56b8b"><enum>1543.</enum><header>Phase II
innovation development challenge pilot program</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id4C10A3E20AC340B8B389C46398F80878" style="OLC">
<subsection id="ID648b514c12bb41edab314812264fedcf"><enum>(gg)</enum><header>Pilot
program</header>
<paragraph id="idDB0ABA906D0747869EF2D10A18B44C27"><enum>(1)</enum><header>Authorization</header><text>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 <quote>pilot program</quote>). 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.</text>
</paragraph><paragraph id="IDb025ffb005d240cc8e49e58bbd3344c1"><enum>(2)</enum><header>Requirements</header>
<subparagraph id="ID1b36f8e3610147c2b6e1f623404dd5f8"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="idE470EDFC2C074184A64F5D3EFDFD66BF"><enum>(B)</enum><header>Determination</header><text>The
Administrator shall—</text>
<clause id="id11291DEB73454944A9D4953C7B5C43F1"><enum>(i)</enum><text>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;</text>
</clause><clause id="id7D792F42C97A4BEF8E92765A41CE548B"><enum>(ii)</enum><text>publish such
decision in the Federal Register; and</text>
</clause><clause id="idE944DF82D0F147028AEF5E1A80557A36"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="ID939d87323a174127b605d0b6276435df"><enum>(C)</enum><header>Maximum
amount</header><text>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.</text>
</subparagraph><subparagraph id="IDf6430637a77b41f7a43bda42188f3e9a"><enum>(D)</enum><header>Matching</header><text>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.</text>
</subparagraph><subparagraph id="IDcb25fae883d249f78d2022707e43aa24"><enum>(E)</enum><header>Eligibility</header><text>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.</text>
</subparagraph><subparagraph id="ID657d2966df0246cd8547a0e73b5673a7"><enum>(F)</enum><header>Registration</header><text>Applicants
receiving awards under a pilot program shall register with the Administrator in
a publicly available registry.</text>
</subparagraph><subparagraph id="IDac696f018845435e9ea4e0f00a01a185"><enum>(G)</enum><header>Termination</header><text>The
authority to establish a pilot program under this section expires at the end of
fiscal year
2012.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id8E9457471FB149859AFCB4F47A067A4D"><enum>1544.</enum><header>Encouraging
innovation in energy efficiency</header>
<subsection id="id2D79B19BA267493290D781D13348B344"><enum>(a)</enum><header>Federal agency
energy-related priority</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="idBCB21B7673544B74BAAD87DFA83B4174"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="id5C2A2F4CC49E4DD3AB4B1DCB4117F4FB"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="id08A23060CD0D4A19AD069B6A8337459A"><enum>(b)</enum><header>Consultation
required</header><text>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.</text>
</subsection><subsection id="idEDBE91508CAF40D682B679FDF2B3037C"><enum>(c)</enum><header>Guidelines</header><text>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.</text>
</subsection><subsection id="id6F760F3D49AA45D3A8D88C515DF56BC4"><enum>(d)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="id0F9416067DAE49299BF0CCF6700129AA"><enum>(1)</enum><text>the term
<term>biomass</term>—</text>
<subparagraph id="idACC628DD71CE4BBA9897BBD76B3BC92D"><enum>(A)</enum><text>means any organic
material that is available on a renewable or recurring basis, including—</text>
<clause id="idF361498B2A6E4992A5FB6C64D35351BF"><enum>(i)</enum><text>agricultural
crops;</text>
</clause><clause id="idF117F3F7EE62439286419EDC06901578"><enum>(ii)</enum><text>trees grown for
energy production;</text>
</clause><clause id="idACDDF43606F847D5A2010FBDC6E6BCEF"><enum>(iii)</enum><text>wood waste and
wood residues;</text>
</clause><clause id="idDA26CCC3C11B46FC994D1C89A887CB20"><enum>(iv)</enum><text>plants
(including aquatic plants and grasses);</text>
</clause><clause id="id62D239B993284E239A19B4C94C1B88E0"><enum>(v)</enum><text>residues;</text>
</clause><clause id="id1880D7010C4F4ECE9700FF3F612594F1"><enum>(vi)</enum><text>fibers;</text>
</clause><clause id="idD9FF1E983CA0419F92B4FA21C721C110"><enum>(vii)</enum><text>animal wastes
and other waste materials; and</text>
</clause><clause id="idC71DBF34869148B7AA7CFE4E01EE2EE0"><enum>(viii)</enum><text>fats, oils,
and greases (including recycled fats, oils, and greases); and</text>
</clause></subparagraph><subparagraph id="id9B071AEBC5B44DA39730AEC0D1CF6766"><enum>(B)</enum><text>does not
include—</text>
<clause id="id4F65A29DFE764555A63AA3D5EB73F72D"><enum>(i)</enum><text>paper that is
commonly recycled; or</text>
</clause><clause id="idDD16D24E41E6426AA271E8FAFF4F94D5"><enum>(ii)</enum><text>unsegregated
solid waste;</text>
</clause></subparagraph></paragraph><paragraph id="id3431D86683464A578B943F2931A0A73F"><enum>(2)</enum><text>the term
<term>energy efficiency project</term> means the installation or upgrading of
equipment that results in a significant reduction in energy usage; and</text>
</paragraph><paragraph id="id853F0B75E42741B8A242DBC82447CDD6"><enum>(3)</enum><text>the term
<term>renewable energy system</term> means a system of energy derived
from—</text>
<subparagraph id="id1C404D4F6B3949CB8FC38355D3CF2629"><enum>(A)</enum><text>a wind, solar,
biomass, or geothermal source; or</text>
</subparagraph><subparagraph id="id4A62F1C8107E4D8BB4B6EADEC88447D2"><enum>(B)</enum><text>hydrogen derived
from biomass or water using an energy source described in subparagraph
(A).</text>
</subparagraph></paragraph></subsection></section><section id="ID213f6785ebfa4a7fa63f62d8e0e56206"><enum>1545.</enum><header>SBIR–STEM
Workforce Development Grant Pilot Program</header>
<subsection id="ID46b4b5f48576440695b73cfab248e9f0"><enum>(a)</enum><header>Pilot program
established</header><text>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 <quote>STEM college students</quote>), by
providing an SBIR bonus grant.</text>
</subsection><subsection id="IDccc37d3060974865948dd34bbb232592"><enum>(b)</enum><header>Eligible
entities defined</header><text>In this section the term <term>eligible
entity</term> 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.</text>
</subsection><subsection id="IDd9040d3a9b4242949a951d27acecdf04"><enum>(c)</enum><header>Awards</header><text>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.</text>
</subsection><subsection id="IDbeb7fb3f153a4866a656ed40667486c6"><enum>(d)</enum><header>
Evaluation</header><text>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.</text>
</subsection><subsection id="IDc1af16ddea004418a0c0dc01cd19153e"><enum>(e)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section—</text>
<paragraph id="ID2466ef0aa6dd440a8cdf2ea5591f721f"><enum>(1)</enum><text>$1,000,000 for
fiscal year 2007;</text>
</paragraph><paragraph id="ID60c44f304fc04e1998665ddedfc1088d"><enum>(2)</enum><text>$1,000,000 for
fiscal year 2008;</text>
</paragraph><paragraph id="ID1e1dc8d655424e6987b95fbe9201f8c5"><enum>(3)</enum><text>$1,000,000 for
fiscal year 2009;</text>
</paragraph><paragraph id="ID6469ff59353d4ea3ac172790f6470d6c"><enum>(4)</enum><text>$1,000,000 for
fiscal year 2010; and</text>
</paragraph><paragraph id="IDb82c10a14eb04994a8e8d6da75086f18"><enum>(5)</enum><text>$1,000,000 for
fiscal year 2011.</text>
</paragraph></subsection></section></subtitle><subtitle id="id8BAEB3676EE94F3185B32175D7D6966F"><enum>E</enum><header>Implementation</header>
<section commented="no" display-inline="no-display-inline" id="ID2bcf32069970474b8e095e1b7f4958b4" section-type="subsequent-section"><enum>1551.</enum><header>Conforming
amendments to the SBIR and the STTR policy directives</header><text display-inline="no-display-inline">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.</text>
</section></subtitle><enum>XVI</enum><header>Native American
Small Business Development Program</header>
<section id="IDF29076329DA54C998BF600D318BB2F4F"><enum>1601.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Native American Small Business Development Act of
2006</quote>.</text>
</section><section id="ID7EB95A03D19D4709A27060F4CFAD6C9D"><enum>1602.</enum><header>Native
American Small Business Development Program</header><text display-inline="no-display-inline">The <act-name parsable-cite="SBA">Small
Business Act</act-name> (15 U.S.C. 631 et seq.) is amended by inserting after
section 38, as added by this Act, the following:</text>
<quoted-block id="ID8B27D2C956094ED08B6F68F586751E85" style="OLC">
<section id="ID0BCEDC1737504F60BC10001C0D10A70E"><enum>39.</enum><header>Native American
Small Business Development Program</header>
<subsection id="IDDCF0155BD1A64A918507D1CE090DE5D7"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="IDC60C7F337BD747BD82677ADF22AE17D3"><enum>(1)</enum><text>the term
<term>Alaska Native</term> has the same meaning as the term <term>Native</term>
in section 3(b) of the Alaska Native Claims Settlement Act (43 U.S.C.
1602(b));</text>
</paragraph><paragraph id="IDA1AD02D354F048039DD4BFA672704B43"><enum>(2)</enum><text>the term
<term>Alaska Native corporation</term> has the same meaning as the term
<term>Native Corporation</term> in section 3(m) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(m));</text>
</paragraph><paragraph id="IDDBA856EB0FFD4A478C26704E45580DD3"><enum>(3)</enum><text>the term
<term>Assistant Administrator</term> means the Assistant Administrator of the
Office of Native American Affairs established under subsection (b);</text>
</paragraph><paragraph id="ID688FE6B58D1644E9905D613695106F4C"><enum>(4)</enum><text>the terms
<term>center</term> and <term>Native American business center</term> mean a
center established under subsection (c);</text>
</paragraph><paragraph id="ID2B68D5B1F19C4CD0918BB752C37FA4DF"><enum>(5)</enum><text>the term
<term>Native American business development center</term> 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;</text>
</paragraph><paragraph id="ID8B63E5DED7EE4AFDA41864C91EB29E00"><enum>(6)</enum><text>the term
<term>Native American small business concern</term> means a small business
concern that is owned and controlled by—</text>
<subparagraph id="IDD7CBC41A28BB41A8A396BD763AD7CF96"><enum>(A)</enum><text>a member of an
Indian tribe or tribal government;</text>
</subparagraph><subparagraph id="IDBB8D9B41DC914873BD374C4906DD91BF"><enum>(B)</enum><text>an Alaska Native
or Alaska Native corporation; or</text>
</subparagraph><subparagraph id="IDE25BDEF68B664E608528FB7FA4BF3AFA"><enum>(C)</enum><text>a Native Hawaiian
or Native Hawaiian Organization;</text>
</subparagraph></paragraph><paragraph id="ID9C7C706A7DC44B5CB31EA6CF2B5A0819"><enum>(7)</enum><text>the term
<term>Native Hawaiian</term> has the same meaning as in section 625 of the
<act-name parsable-cite="OAA65">Older Americans Act of 1965</act-name> (42
U.S.C. 3057k);</text>
</paragraph><paragraph id="ID8015BD594BAA45999F2784BD9238BBA8"><enum>(8)</enum><text>the term
<term>Native Hawaiian Organization</term> has the same meaning as in section
8(a)(15);</text>
</paragraph><paragraph id="IDD28EB63DE26B4185B9288C650881D151"><enum>(9)</enum><text>the term
<term>tribal college</term> has the same meaning as the term <term>tribally
controlled college or university</term> has in section 2(a)(4) of the Tribally
Controlled Community College Assistance Act of 1978 (25 U.S.C.
1801(a)(4));</text>
</paragraph><paragraph id="IDBF87FCE7F5A24640BC6A9666C7C3DD7A"><enum>(10)</enum><text>the term
<term>tribal government</term> has the same meaning as the term <term>Indian
tribe</term> has in section 7501(a)(9) of title 31, United States Code;
and</text>
</paragraph><paragraph id="IDCD6D04CF14C84DC7A56E366D7DFFCCEF"><enum>(11)</enum><text>the term
<term>tribal lands</term> means all lands within the exterior boundaries of any
Indian reservation.</text>
</paragraph></subsection><subsection id="ID7468725198814283A7D8996235316D62"><enum>(b)</enum><header>Office of
Native American Affairs</header>
<paragraph id="ID899E27962C29400CB83F3BF999B4D6B2"><enum>(1)</enum><header>Establishment</header><text>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.</text>
</paragraph><paragraph id="ID92948503AF8D4824B7C18265834F00AE"><enum>(2)</enum><header>Purpose</header><text>The
purpose of the Office of Native American Affairs is to assist Native American
entrepreneurs to—</text>
<subparagraph id="IDE5B8702E9B4C40BFB2C083BD7E07E258"><enum>(A)</enum><text>start, operate,
and grow small business concerns;</text>
</subparagraph><subparagraph id="ID4F2E25D637A34B4DB2905C274FE2246C"><enum>(B)</enum><text>develop
management and technical skills;</text>
</subparagraph><subparagraph id="ID4693274D215F40E294F5888504DDE55B"><enum>(C)</enum><text>seek Federal
procurement opportunities;</text>
</subparagraph><subparagraph id="ID5417B681B1344C50A92FA82F782A59F1"><enum>(D)</enum><text>increase
employment opportunities for Native Americans through the start and expansion
of small business concerns; and</text>
</subparagraph><subparagraph id="ID2B18398E4A014CC398B270FAC36A5459"><enum>(E)</enum><text>increase the
access of Native Americans to capital markets.</text>
</subparagraph></paragraph><paragraph id="ID8221D71E2BB949BC937A55212B219FCC"><enum>(3)</enum><header>Assistant
administrator</header>
<subparagraph id="ID95BA736C460A45278A08B7AEFADB9B90"><enum>(A)</enum><header>Appointment</header><text>The
Administrator shall appoint a qualified individual to serve as Assistant
Administrator of the Office of Native American Affairs in accordance with this
paragraph.</text>
</subparagraph><subparagraph id="ID85BD9ECDCBCE4CCB98DBB46EDDEF6899"><enum>(B)</enum><header>Qualifications</header><text>The
Assistant Administrator appointed under subparagraph (A) shall have—</text>
<clause id="ID0C8A050460E24D9C8CBCAD8A6304A5DA"><enum>(i)</enum><text>knowledge of the
Native American culture; and</text>
</clause><clause id="ID06DCAA03A46F42BCA685736D7E17635B"><enum>(ii)</enum><text>experience
providing culturally tailored small business development assistance to Native
Americans.</text>
</clause></subparagraph><subparagraph id="IDC2A4DDA2969E4F94A168855E854B17AC"><enum>(C)</enum><header>Employment
status</header><text>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.</text>
</subparagraph><subparagraph id="ID8489E9D3224243B0A1F9186B33244495"><enum>(D)</enum><header>Responsibilities
and duties</header><text>The Assistant Administrator shall—</text>
<clause id="ID2C7B85D6917F44B1A1E4DB93EEF701C0"><enum>(i)</enum><text>administer and
manage the Native American Small Business Development program established under
this section;</text>
</clause><clause id="ID923C9C5F45D9481A8D400CD145D9E74C"><enum>(ii)</enum><text>recommend the
annual administrative and program budgets for the Office of Native American
Affairs;</text>
</clause><clause id="ID2C80CDADF7E04FF6B90C95C35B660B6F"><enum>(iii)</enum><text>consult with
Native American business centers in carrying out the program established under
this section;</text>
</clause><clause id="ID2CE57E05CEA44851A4CF4F2532394AD0"><enum>(iv)</enum><text>recommend
appropriate funding levels;</text>
</clause><clause id="ID98167C3F9DC84818AB6E1EF47C91F98D"><enum>(v)</enum><text>review the annual
budgets submitted by each applicant for the Native American Small Business
Development program;</text>
</clause><clause id="ID9AA54D37EF164950BE4508D70EAB8C4F"><enum>(vi)</enum><text>select
applicants to participate in the program under this section;</text>
</clause><clause id="ID5944B6D245FA4B8E83D771BF1B430CA3"><enum>(vii)</enum><text>implement this
section; and</text>
</clause><clause id="ID30724B44DF8E46F095373B6511FDF102"><enum>(viii)</enum><text>maintain a
clearinghouse to provide for the dissemination and exchange of information
between Native American business centers.</text>
</clause></subparagraph><subparagraph id="ID011E56E03D0C41F29B4B940FBF37CC3E"><enum>(E)</enum><header>Consultation
requirements</header><text>In carrying out the responsibilities and duties
described in this paragraph, the Assistant Administrator shall confer with and
seek the advice of—</text>
<clause id="ID0D02E2C5B696461784B9EFE6D032AEF6"><enum>(i)</enum><text>Administration
officials working in areas served by Native American business centers and
Native American business development centers;</text>
</clause><clause id="ID7E12105DF3214A15844C5193CBAE8B9A"><enum>(ii)</enum><text>representatives
of tribal governments;</text>
</clause><clause id="ID81A76A80C23945F9B2D90DB8781D7817"><enum>(iii)</enum><text>tribal
colleges;</text>
</clause><clause id="ID22C8C5E067CD465B932039B0FC9FE577"><enum>(iv)</enum><text>Alaska Native
corporations; and</text>
</clause><clause id="ID5751BF9302B94B3C972A7652CDF55A60"><enum>(v)</enum><text>Native Hawaiian
Organizations.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDB00DD78BD7114F73A71E4B15505CC117"><enum>(c)</enum><header>Native American
Small Business Development Program</header>
<paragraph id="ID88F18B3D661340E199172F9B210EE393"><enum>(1)</enum><header>Authorization</header>
<subparagraph id="IDA78BD2489C704E9B9F7F3DA237BAE962"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID2EE091A6FF9B428291585374B9EC86E9"><enum>(B)</enum><header>Use of
funds</header><text>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—</text>
<clause id="ID1FAFB101A56F4B04BE572901C0241DF5"><enum>(i)</enum><text>reservation-based
American Indians;</text>
</clause><clause id="ID94B5AF07FDEE49CEB7D434AD31C3ED73"><enum>(ii)</enum><text>Alaska Natives;
and</text>
</clause><clause id="ID1FF988CA4A5945758A73673D98244EC4"><enum>(iii)</enum><text>Native
Hawaiians.</text>
</clause></subparagraph></paragraph><paragraph id="ID6AD1C7C6B8E24134AB32E5AF89AA1706"><enum>(2)</enum><header>5-year
projects</header>
<subparagraph id="ID02585EDC55DF4EC8868F9935CABC02A7"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="ID13AA2659850D48AB8E4BDCE22FA74558"><enum>(i)</enum><text>financial
education, including training and counseling in—</text>
<subclause id="ID29C25F50230345868F34E884FAF59159"><enum>(I)</enum><text>applying for and
securing business credit and investment capital;</text>
</subclause><subclause id="ID8C753DD7B1304B1EA8C97DA1ECE13900"><enum>(II)</enum><text>preparing and
presenting financial statements; and</text>
</subclause><subclause id="IDA0CACE24A47946EA8E9B116094121ADC"><enum>(III)</enum><text>managing cash
flow and other financial operations of a business concern;</text>
</subclause></clause><clause id="ID5B526BDF32184249B2BBAE6E4ADAB234"><enum>(ii)</enum><text>management
education, including training and counseling in planning, organizing, staffing,
directing, and controlling each major activity and function of a small business
concern; and</text>
</clause><clause id="ID8EDEE9E0DE874C39A0F4316F3C6AEB13"><enum>(iii)</enum><text>marketing
education, including training and counseling in—</text>
<subclause id="ID0D805758686E4D6AB07B0B4EB9C1CFDF"><enum>(I)</enum><text>identifying and
segmenting domestic and international market opportunities;</text>
</subclause><subclause id="ID7E9518AAD3D748A2BF5EC45434D2744B"><enum>(II)</enum><text>preparing and
executing marketing plans;</text>
</subclause><subclause id="IDE5D4F07ABCA4409EBA80B0B3433C6D95"><enum>(III)</enum><text>developing
pricing strategies;</text>
</subclause><subclause id="ID342175E7630B4553BDCDA83A81F4D57B"><enum>(IV)</enum><text>locating
contract opportunities;</text>
</subclause><subclause id="ID7BFB3E8404F14AF3B1948E70361CDAED"><enum>(V)</enum><text>negotiating
contracts; and</text>
</subclause><subclause id="ID00373056E16E4D1989B22BF6B71913BB"><enum>(VI)</enum><text>utilizing
varying public relations and advertising techniques.</text>
</subclause></clause></subparagraph><subparagraph id="ID9B94237B61904D9FAA080BD03FB52A7D"><enum>(B)</enum><header>Business
development assistance recipients</header><text>The business development
assistance under subparagraph (A) shall be offered to prospective and current
owners of small business concerns that are owned by—</text>
<clause id="ID20D443324E864830A6A7614E406E1835"><enum>(i)</enum><text>American Indians
or tribal governments, and located on or near tribal lands;</text>
</clause><clause id="ID8D82A7409FAC427ABF420FB38B1A49A1"><enum>(ii)</enum><text>Alaska Natives
or Alaska Native corporations; or</text>
</clause><clause id="ID61624B9040894C1B8509E5DB0832C047"><enum>(iii)</enum><text>Native
Hawaiians or Native Hawaiian Organizations.</text>
</clause></subparagraph></paragraph><paragraph id="IDAE34EE64A86C426EB6034E5DCE732312"><enum>(3)</enum><header>Form of federal
financial assistance</header>
<subparagraph id="ID3257FA3A90BA4A23B2DAF878C97EB9C2"><enum>(A)</enum><header>Documentation</header>
<clause id="ID3655753C47F64E24A0616E27191A7C04"><enum>(i)</enum><header>In
general</header><text>The financial assistance to Native American business
centers authorized under this subsection may be made by grant, contract, or
cooperative agreement.</text>
</clause><clause id="IDF19DBB75035F4E7B881318B30AD0BFE6"><enum>(ii)</enum><header>Exception</header><text>Financial
assistance under this subsection to Alaska Native corporations or Native
Hawaiian Organizations may only be made by grant.</text>
</clause></subparagraph><subparagraph id="ID9621514F80394D1EB5D293E0387B4EAB"><enum>(B)</enum><header>Payments</header>
<clause id="ID087672EDE3C14E99A63EC4E40417103C"><enum>(i)</enum><header>Timing</header><text>Payments
made under this subsection may be disbursed in an annual lump sum or in
periodic installments, at the request of the recipient.</text>
</clause><clause id="IDEAD9FB7AC6EE47C4A259EAA685BD6B37"><enum>(ii)</enum><header>Advance</header><text>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.</text>
</clause><clause id="ID92B0D1F0DFEB41D3B81E2D4146D3DCB4"><enum>(iii)</enum><header>No matching
requirement</header><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="IDADDEA6ABD4AD4F97B1AF546715FC1E2E"><enum>(4)</enum><header>Contract and
cooperative agreement authority</header><text>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.</text>
</paragraph><paragraph id="IDECDD3E69001F48448BC3A4752337E9E7"><enum>(5)</enum><header>Application
process</header>
<subparagraph id="ID98D7310F3AF34D74910836C9ED1FAD68"><enum>(A)</enum><header>Submission of a
5-year plan</header><text>Each applicant for assistance under paragraph (1)
shall submit a 5-year plan to the Administration on proposed assistance and
training activities.</text>
</subparagraph><subparagraph id="ID59552A710DE3482B8780D4367837438D"><enum>(B)</enum><header>Criteria</header>
<clause id="IDDDD061F4FAB84BB2B4407AE6B0B146F5"><enum>(i)</enum><header>In
general</header><text>The Administration shall evaluate and rank applicants in
accordance with predetermined selection criteria that shall be stated in terms
of relative importance.</text>
</clause><clause id="ID03A54D055F58442F94F3FEDB4832ACAA"><enum>(ii)</enum><header>Public
notice</header><text>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.</text>
</clause><clause id="ID4CCBB9A147254DE3A91A59A713F0AD58"><enum>(iii)</enum><header>Considerations</header><text>The
criteria required by this paragraph shall include—</text>
<subclause id="IDBC5CE2908316402C890A2948B0337F71"><enum>(I)</enum><text>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;</text>
</subclause><subclause id="ID6365C821A9014973AA115E32E01772D3"><enum>(II)</enum><text>the ability of
the applicant to commence a project within a minimum amount of time;</text>
</subclause><subclause id="ID705139F420514B24800AAEEAA3C60352"><enum>(III)</enum><text>the ability of
the applicant to provide quality training and services to a significant number
of Native Americans;</text>
</subclause><subclause id="ID0D14ACDD02A54A59A28EA796D22F3A86"><enum>(IV)</enum><text>previous
assistance from the Administration to provide services in Native American
communities; and</text>
</subclause><subclause id="ID790F7ABEE6F04CD091027CC70C268493"><enum>(V)</enum><text>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.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDCDD6399503EC4BB9B52ED3ABE447BE6E"><enum>(6)</enum><header>Program
examination</header>
<subparagraph id="IDA331AD370385431E8C26EDDEEAC26A13"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID9F4068F57D604D6A8C2E25AB863BA76D"><enum>(B)</enum><header>Administration
action</header><text>Based on information received under subparagraph (A), the
Administration shall—</text>
<clause id="ID4993BFED3EB1406EB7C54C1BE00B341A"><enum>(i)</enum><text>develop and
implement an annual programmatic and financial examination of each Native
American business center assisted pursuant to this subsection; and</text>
</clause><clause id="ID48EEF96993784DB98DBF71D31E253180"><enum>(ii)</enum><text>analyze the
results of each examination conducted under clause (i) to determine the
programmatic and financial viability of each Native American business
center.</text>
</clause></subparagraph><subparagraph id="IDFD16E0B9EBA146BEBC34211B6C9DB2DF"><enum>(C)</enum><header>Conditions for
continued funding</header><text>In determining whether to renew a grant,
contract, or cooperative agreement with a Native American business center, the
Administration—</text>
<clause id="IDA95A0D4B840C4EC48FCB713FDAC3B2E0"><enum>(i)</enum><text>shall consider
the results of the most recent examination of the center under subparagraph
(B), and, to a lesser extent, previous examinations; and</text>
</clause><clause id="IDC48AAB29233B4D47A422A28B892822ED"><enum>(ii)</enum><text>may withhold
such renewal, if the Administration determines that—</text>
<subclause id="ID0B42A3F9A8DE447E9357F1F1161611CA"><enum>(I)</enum><text>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</text>
</subclause><subclause id="IDBD3363F686D74BF985C96F75D385B2D3"><enum>(II)</enum><text>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).</text>
</subclause></clause></subparagraph><subparagraph id="IDE892CB62BE1E445CB5C2E4D587BED083"><enum>(D)</enum><header>Continuing
contract and cooperative agreement authority</header>
<clause id="ID892D5B505432449889CB3B827B6E0E1C"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="IDDB5BB7EB013C44AF9126D0E61AFB2023"><enum>(ii)</enum><header>Renewal</header><text>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.</text>
</clause></subparagraph><subparagraph id="ID8AA44084BC6E48B6AD0CF70612100433"><enum>(E)</enum><header>Management
report</header>
<clause id="ID494E6613FFDF4B0791789C2E3323E282"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="ID6BF0270C24B24A0FAB41064B3EBAFCBF"><enum>(ii)</enum><header>Contents</header><text>Each
report submitted under clause (i) shall include, with respect to each Native
American business center receiving financial assistance under this
subsection—</text>
<subclause id="ID9907C39539714908B79FDDCFE87FD1F4"><enum>(I)</enum><text>the number of
individuals receiving assistance from the Native American business
center;</text>
</subclause><subclause id="ID10EF0967D5C342DBB5614AF8EA07E722"><enum>(II)</enum><text>the number of
startup business concerns created;</text>
</subclause><subclause id="ID0874C0F5F2654B3BAD35F55CEF382FAA"><enum>(III)</enum><text>the number of
existing businesses seeking to expand employment;</text>
</subclause><subclause id="ID4335BC89D6714F5EA678DD4C78AE1C35"><enum>(IV)</enum><text>jobs created or
maintained, on an annual basis, by Native American small business concerns
assisted by the center since receiving funding under this Act;</text>
</subclause><subclause id="IDD51B26B602D54339AA9A338D45E4E3E1"><enum>(V)</enum><text>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</text>
</subclause><subclause id="ID5E614D781FCB43CF913F6FC03C26C7C9"><enum>(VI)</enum><text>the most recent
examination, as required under subparagraph (B), and the subsequent
determination made by the Administration under that subparagraph.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID22E6A53A613448458F5E90705998B9DB"><enum>(7)</enum><header>Annual
report</header><text>Each entity receiving financial assistance under this
subsection shall annually report to the Administration on the services provided
with such financial assistance, including—</text>
<subparagraph id="ID79C5874BAF6641EA907CE7A0CBA9AE97"><enum>(A)</enum><text>the number of
individuals assisted, categorized by ethnicity;</text>
</subparagraph><subparagraph id="ID9F9FE508D359401F831DDF4850BF3C56"><enum>(B)</enum><text>the number of
hours spent providing counseling and training for those individuals;</text>
</subparagraph><subparagraph id="ID66CED56658AE4EE38F40B0A05060B6FE"><enum>(C)</enum><text>the number of
startup small business concerns created or maintained;</text>
</subparagraph><subparagraph id="IDE041775E583C4E238D46EB7C3F24873A"><enum>(D)</enum><text>the gross
receipts of assisted small business concerns;</text>
</subparagraph><subparagraph id="ID95C1E0570A2B4A21873A4B7E290D217F"><enum>(E)</enum><text>the number of
jobs created or maintained at assisted small business concerns; and</text>
</subparagraph><subparagraph id="ID0807C54D53CA48D586675E09A3D39711"><enum>(F)</enum><text>the number of
Native American jobs created or maintained at assisted small business
concerns.</text>
</subparagraph></paragraph><paragraph id="ID43C72A7BE9404DE598EB8ADC3D1D0CA9"><enum>(8)</enum><header>Record
retention</header>
<subparagraph id="ID216C76E220A84A6395754E54B13D3AF6"><enum>(A)</enum><header>Applications</header><text>The
Administration shall maintain a copy of each application submitted under this
subsection for not less than 7 years.</text>
</subparagraph><subparagraph id="IDE289FF1F21B5491AA8C8FC729C82BDAD"><enum>(B)</enum><header>Annual
reports</header><text>The Administration shall maintain copies of the
information collected under paragraph (6)(A) indefinitely.</text>
</subparagraph></paragraph></subsection><subsection id="ID94EC8896641949B493FA33D9324CDF81"><enum>(d)</enum><header>Authorization
of Appropriations</header><text>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).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDF19C4ED1D2934C5F8BE1DE3E7681497D"><enum>1603.</enum><header>Pilot
programs</header>
<subsection id="ID9CC0FDB5715C46AE96269B99D751B0B0"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="IDB43D60D998C6485084AB83C14BE1DA35"><enum>(1)</enum><header>Incorporation
by reference</header><text>The terms defined in section 39(a) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (as added by this
title) have the same meanings as in that section 39(a) when used in this
section.</text>
</paragraph><paragraph id="ID0550615440934C58A8D30F650B491E99"><enum>(2)</enum><header>Joint
project</header><text>The term <term>joint project</term> means the combined
resources and expertise of 2 or more distinct entities at a physical location
dedicated to assisting the Native American community.</text>
</paragraph></subsection><subsection id="ID2DB1087E1DB44B24B7836DD7689AB09E"><enum>(b)</enum><header>Native American
Development Grant Pilot Program</header>
<paragraph id="IDCBF6C7D56A7043A190201D6C8A0EDAD6"><enum>(1)</enum><header>Authorization</header>
<subparagraph id="ID0B10ADD369C84AD6868FA16184904ECE"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID9E0840DA4F6142FFAD176A000E4CCA33"><enum>(B)</enum><header>Eligible
organizations</header><text>The grants authorized under subparagraph (A) may be
awarded to—</text>
<clause id="IDD1AA2A3D3D3843B09757C5850BB9882F"><enum>(i)</enum><text>any
small business development center; or</text>
</clause><clause id="ID5088B79652854339BA3615B762A63E85"><enum>(ii)</enum><text>any private,
nonprofit organization that—</text>
<subclause id="IDBB3CDA0D733E4172902829B7448805BF"><enum>(I)</enum><text>has members of an
Indian tribe comprising a majority of its board of directors;</text>
</subclause><subclause id="ID749BEC2D8C7642E68FEF64558972A7E4"><enum>(II)</enum><text>is a Native
Hawaiian Organization; or</text>
</subclause><subclause id="ID32ED3ACAB0DC4E03A0CA154C2174314E"><enum>(III)</enum><text>is an Alaska
Native corporation.</text>
</subclause></clause></subparagraph><subparagraph id="ID41C194A0302D4ECF9CAF17F65293DAD1"><enum>(C)</enum><header>Amounts</header><text>The
Administration shall not award a grant under this subsection in an amount which
exceeds $100,000 for each year of the project.</text>
</subparagraph><subparagraph id="IDF305AB2745FF48CFA925CE9F3720719F"><enum>(D)</enum><header>Grant
duration</header><text>Each grant under this subsection shall be awarded for
not less than a 2-year period and not more than a 4-year period.</text>
</subparagraph></paragraph><paragraph id="IDD88DDF0298804B2F9D5C664F1E8D3268"><enum>(2)</enum><header>Conditions for
participation</header><text>Each entity desiring a grant under this subsection
shall submit an application to the Administration that contains—</text>
<subparagraph id="ID52FCCAFD9F474B2B8E1FECB5009BC535"><enum>(A)</enum><text>a certification
that the applicant—</text>
<clause id="IDF3CF9E7707F94A76B5764D947EE459C6"><enum>(i)</enum><text>is
a small business development center or a private, nonprofit organization under
paragraph (1)(B);</text>
</clause><clause id="ID9D531C277DBD4A10AE091BFDDEC13C36"><enum>(ii)</enum><text>employs an
executive director or program manager to manage the facility; and</text>
</clause><clause id="ID1F51C3EB65A944E48E2FE71A53AFF1C6"><enum>(iii)</enum><text>agrees—</text>
<subclause id="IDDB95951D37DA43B6882C7A347814101A"><enum>(I)</enum><text>to a site visit
as part of the final selection process;</text>
</subclause><subclause id="IDD7EEA78F12284438B1F24BA205463EDF"><enum>(II)</enum><text>to an annual
programmatic and financial examination; and</text>
</subclause><subclause id="ID1ED6D34322D74B98801D8C0EB6CED4EC"><enum>(III)</enum><text>to the maximum
extent practicable, to remedy any problems identified pursuant to that site
visit or examination;</text>
</subclause></clause></subparagraph><subparagraph id="ID70FA025EAE5A416D8D0C5C6EAF9D0EDA"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="ID8AF204AED2F9492890414C6CFE2A8655"><enum>(C)</enum><text>information
relating to proposed assistance that the grant will provide, including—</text>
<clause id="IDD0DEA3F52B8A4C3F96DD27F2458E52CE"><enum>(i)</enum><text>the
number of individuals to be assisted; and</text>
</clause><clause id="ID44E883129F934B19AEF5FB5F966205CB"><enum>(ii)</enum><text>the number of
hours of counseling, training, and workshops to be provided;</text>
</clause></subparagraph><subparagraph id="ID3ECDFF4CAFAE485893A34FCB02002BF9"><enum>(D)</enum><text>information
demonstrating the effective experience of the applicant in—</text>
<clause id="ID3AFE12B8CA3D47C58E3435BA60398EA1"><enum>(i)</enum><text>conducting
financial, management, and marketing assistance programs designed to impart or
upgrade the business skills of current or prospective Native American business
owners;</text>
</clause><clause id="ID2FC4B9D985BF4ED88268E01336D27B38"><enum>(ii)</enum><text>providing
training and services to a representative number of Native Americans;</text>
</clause><clause id="IDF91F73BBA9164BB5AB7222FB4CA36A43"><enum>(iii)</enum><text>using resource
partners of the Administration and other entities, including universities,
tribal governments, or tribal colleges; and</text>
</clause><clause id="ID6613D09A280642518FBAA875FA5CB377"><enum>(iv)</enum><text>the prudent
management of finances and staffing;</text>
</clause></subparagraph><subparagraph id="ID6C708A07A6C74A66846D2E495DB652FF"><enum>(E)</enum><text>the location
where the applicant will provide training and services to Native Americans;
and</text>
</subparagraph><subparagraph id="ID69048FFB102042A8B180FF1B02E2FB3B"><enum>(F)</enum><text>a multiyear plan,
corresponding to the length of the grant, that describes—</text>
<clause id="ID1802D5B4323B48448800BEDFD894FEAA"><enum>(i)</enum><text>the
number of Native Americans and Native American small business concerns to be
served by the grant;</text>
</clause><clause id="IDC507C19E34214E1D934212BD509BAFA5"><enum>(ii)</enum><text>in
the continental United States, the number of Native Americans to be served by
the grant; and</text>
</clause><clause id="ID6C7A1827C7A647A88B7A39A984FFDB9F"><enum>(iii)</enum><text>the training
and services to be provided to a representative number of Native
Americans.</text>
</clause></subparagraph></paragraph><paragraph id="IDF66F0DC1303347348B37F149C0CDF1B0"><enum>(3)</enum><header>Review of
applications</header><text>The Administration shall—</text>
<subparagraph id="ID46BBFD7D8FC14DC58971A212CDBAAC95"><enum>(A)</enum><text>evaluate and rank
applicants under paragraph (2) in accordance with predetermined selection
criteria that is stated in terms of relative importance;</text>
</subparagraph><subparagraph id="ID889BC188C7AB4BDBBC4D115F8E9C3A5D"><enum>(B)</enum><text>include such
criteria in each solicitation under this subsection and make such information
available to the public; and</text>
</subparagraph><subparagraph id="ID0D57D0DECEC04962B56C0572A615D2D5"><enum>(C)</enum><text>approve or
disapprove each completed application submitted under this subsection not later
than 60 days after the date of submission.</text>
</subparagraph></paragraph><paragraph id="ID0749482D490B41AB9F792BEBC6797EFC"><enum>(4)</enum><header>Annual
report</header><text>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—</text>
<subparagraph id="IDF56C8FAA7CED437C8471035D304CEF37"><enum>(A)</enum><text>the number of
individuals assisted, categorized by ethnicity;</text>
</subparagraph><subparagraph id="ID73938F620CDC4BF78730A6978E1D80BC"><enum>(B)</enum><text>the number of
hours spent providing counseling and training for those individuals;</text>
</subparagraph><subparagraph id="IDD9AEA80276944B24B4F8EFA2ED849EB4"><enum>(C)</enum><text>the number of
startup small business concerns created or maintained with assistance from a
Native American business center;</text>
</subparagraph><subparagraph id="ID7D83693F80284F699158A02CD7A59806"><enum>(D)</enum><text>the gross
receipts of assisted small business concerns;</text>
</subparagraph><subparagraph id="IDC6303EF065BB4883A7FA3FC993E69A40"><enum>(E)</enum><text>the number of
jobs created or maintained at assisted small business concerns; and</text>
</subparagraph><subparagraph id="ID40C1FE21C2DE42D6820B610E94E32A3A"><enum>(F)</enum><text>the number of
Native American jobs created or maintained at assisted small business
concerns.</text>
</subparagraph></paragraph><paragraph id="ID54B5951FA8C1489EA1779CA000A210CC"><enum>(5)</enum><header>Record
retention</header>
<subparagraph id="ID6266CFE2D03B4EC7B2C8C83A68CF4587"><enum>(A)</enum><header>Applications</header><text>The
Administration shall maintain a copy of each application submitted under this
subsection for not less than 7 years.</text>
</subparagraph><subparagraph id="IDE0384B1CC7AD46CFB169CF7BA8E5990B"><enum>(B)</enum><header>Annual
reports</header><text>The Administration shall maintain copies of the
information collected under paragraph (4) indefinitely.</text>
</subparagraph></paragraph></subsection><subsection id="ID40068021DB644509B6E1860DB1AF99D4"><enum>(c)</enum><header>American Indian
Tribal Assistance Center Grant Pilot Program</header>
<paragraph id="ID4A778C2C75F342FBBBB0F9B47C3304A3"><enum>(1)</enum><header>Authorization</header>
<subparagraph id="IDEE605DFA87FF4A5F8D70DA2B0785D535"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID1BCAB18E5FAD40CF8F79796AADD7AE50"><enum>(B)</enum><header>Eligible
organizations</header>
<clause id="IDEB5EFCE1E62248D6922EA98FFCD4482B"><enum>(i)</enum><header>Class
1</header><text>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.</text>
</clause><clause id="IDF593CCA3060C43AF8437357D83EC9476"><enum>(ii)</enum><header>Class
2</header><text>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.</text>
</clause></subparagraph><subparagraph id="IDAE1D29F582EE4206ABAC53324488F5A8"><enum>(C)</enum><header>Amounts</header><text>The
Administration shall not award a grant under this subsection in an amount which
exceeds $200,000 for each year of the project.</text>
</subparagraph><subparagraph id="ID2A7841B2B19B4E04807070A9862324B7"><enum>(D)</enum><header>Grant
duration</header><text>Each grant under this subsection shall be awarded for a
3-year period.</text>
</subparagraph></paragraph><paragraph id="ID9A8B2257A2EC48ED99FE1F7AAEB00976"><enum>(2)</enum><header>Conditions for
participation</header><text>Each entity desiring a grant under this subsection
shall submit to the Administration a joint application that contains—</text>
<subparagraph id="IDADFDA7A06B9446B092A4A2858E268C46"><enum>(A)</enum><text>a certification
that each participant of the joint application—</text>
<clause id="ID2FB5BA73174D4B709462E93AC2A39DF5"><enum>(i)</enum><text>is
either a Native American business center, a Native American business
development center, or a small business development center;</text>
</clause><clause id="ID7EC401578C3B4713819EE6F5E078F15D"><enum>(ii)</enum><text>employs an
executive director or program manager to manage the center; and</text>
</clause><clause id="IDB80E168B09D942549037A373D00AF8D3"><enum>(iii)</enum><text>as a condition
of receiving an American Indian Tribal Assistance Center grant, agrees—</text>
<subclause id="IDEFFB781EBAF24701A1B3F7943B30B84B"><enum>(I)</enum><text>to an annual
programmatic and financial examination; and</text>
</subclause><subclause id="IDFB48934E607B4DE4B5F93E03AC1B1FB9"><enum>(II)</enum><text>to the maximum
extent practicable, to remedy any problems identified pursuant to that
examination;</text>
</subclause></clause></subparagraph><subparagraph id="ID98859837FEA04770A4A3F25EC0FD97B0"><enum>(B)</enum><text>information
demonstrating an historic commitment to providing assistance to Native
Americans—</text>
<clause id="IDB4A2808F517C4CAFAE5D7B6813D20834"><enum>(i)</enum><text>residing on or
near tribal lands; or</text>
</clause><clause id="IDD6EF75CFE47F49F0855788B2FBF563C3"><enum>(ii)</enum><text>operating a
small business concern on or near tribal lands;</text>
</clause></subparagraph><subparagraph id="IDB855481B480A409E91C34A255247C169"><enum>(C)</enum><text>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;</text>
</subparagraph><subparagraph id="ID03D8E12E6867416798EEA8F81FEC36D9"><enum>(D)</enum><text>information
relating to proposed assistance that the grant will provide, including—</text>
<clause id="ID9A86D9C7039443B38CE890767A748A8A"><enum>(i)</enum><text>the
number of individuals to be assisted; and</text>
</clause><clause id="IDA658A085398B4EB486CDBA6357787496"><enum>(ii)</enum><text>the number of
hours of counseling, training, and workshops to be provided;</text>
</clause></subparagraph><subparagraph id="IDB1DE32E3F9114E15997B4023AC44929F"><enum>(E)</enum><text>information
demonstrating the effective experience of each participant of the joint
application in—</text>
<clause id="ID7A1968FE49E0421EB4E06F1FE3BEAE6A"><enum>(i)</enum><text>conducting
financial, management, and marketing assistance programs, designed to impart or
upgrade the business skills of current or prospective Native American business
owners; and</text>
</clause><clause id="ID5368B9F7F8DF4EA58512706297D4DCF1"><enum>(ii)</enum><text>the prudent
management of finances and staffing; and</text>
</clause></subparagraph><subparagraph id="IDB8598510A00C476397A8CAA2DB778B9A"><enum>(F)</enum><text>a plan for the
length of the grant, that describes—</text>
<clause id="IDAA00F47D0EF449C5ACA4DC9B547F7CD3"><enum>(i)</enum><text>the
number of Native Americans and Native American small business concerns to be
served by the grant; and</text>
</clause><clause id="IDE424F9BD02014501BE153B979A69FF89"><enum>(ii)</enum><text>the training and
services to be provided.</text>
</clause></subparagraph></paragraph><paragraph id="ID30BA0A0C305F4215B3FD94516CED0A08"><enum>(3)</enum><header>Review of
applications</header><text>The Administration shall—</text>
<subparagraph id="ID473D6320942F4E51BDD031A0054DC906"><enum>(A)</enum><text>evaluate and rank
applicants under paragraph (2) in accordance with predetermined selection
criteria that is stated in terms of relative importance;</text>
</subparagraph><subparagraph id="ID1E30B80CB3154D0B9FAA0DDC9111A981"><enum>(B)</enum><text>include such
criteria in each solicitation under this subsection and make such information
available to the public; and</text>
</subparagraph><subparagraph id="ID53E001795F0B4BAAB80B0E10CBBB98E1"><enum>(C)</enum><text>approve or
disapprove each application submitted under this subsection not later than 60
days after the date of submission.</text>
</subparagraph></paragraph><paragraph id="ID5A8C9E4EEEED48DFB5D0E1331C553C8F"><enum>(4)</enum><header>Annual
report</header><text>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—</text>
<subparagraph id="ID8CDAE7E96730466E86DAE5DD6C824237"><enum>(A)</enum><text>the number of
individuals assisted, categorized by ethnicity;</text>
</subparagraph><subparagraph id="ID132F9B65464F4DDE8D589A3FECAC77B5"><enum>(B)</enum><text>the number of
hours of counseling and training provided and workshops conducted;</text>
</subparagraph><subparagraph id="ID5E9B5707A0914590B8A4F595851A4039"><enum>(C)</enum><text>the number of
startup business concerns created or maintained with assistance from a Native
American business center;</text>
</subparagraph><subparagraph id="IDC55E2CC128C14542A81F9068867EB102"><enum>(D)</enum><text>the gross
receipts of assisted small business concerns;</text>
</subparagraph><subparagraph id="ID2A0F9BEE4B6545FF9B700B1625DF7B62"><enum>(E)</enum><text>the number of
jobs created or maintained at assisted small business concerns; and</text>
</subparagraph><subparagraph id="ID04A8F52892DC4DF5817F6E701BC5AEB3"><enum>(F)</enum><text>the number of
Native American jobs created or maintained at assisted small business
concerns.</text>
</subparagraph></paragraph><paragraph id="IDB666637B45894AA7A4D3F3A40653BDB2"><enum>(5)</enum><header>Record
retention</header>
<subparagraph id="IDCD11CDD704F94DAE8E7A66ED54907B25"><enum>(A)</enum><header>Applications</header><text>The
Administration shall maintain a copy of each application submitted under this
subsection for not less than 7 years.</text>
</subparagraph><subparagraph id="IDAF8EF8BE9BFC4DC4B0AC32A774B75B90"><enum>(B)</enum><header>Annual
reports</header><text>The Administration shall maintain copies of the
information collected under paragraph (4) indefinitely.</text>
</subparagraph></paragraph></subsection><subsection id="ID06C88452C36B408DADD20D097F6ECB8C"><enum>(d)</enum><header>Authorization
of Appropriations</header><text>There are authorized to be appropriated—</text>
<paragraph id="ID0D40F083F590460CABA371B6829B51FA"><enum>(1)</enum><text>$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</text>
</paragraph><paragraph id="IDB03A0596002C453EB03B80C569323A70"><enum>(2)</enum><text>$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).</text>
</paragraph></subsection></section><enum>XVII</enum><header>National Small
Business Regulatory Assistance</header>
<section commented="no" display-inline="no-display-inline" id="ID20884633C5B3474C98A400EDDECB00D1"><enum>1701.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>National Small Business
Regulatory Assistance Act of 2006</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="IDCFF2DFE9B1E14D3F87C12E6D919B2BE1" section-type="subsequent-section"><enum>1702.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this title is to establish a
4-year pilot program to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID277F1E95AD6045A5B2BDCEB8ABC775B0"><enum>(1)</enum><text display-inline="yes-display-inline">provide confidential assistance to small
business concerns;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID39AD005898F44BFAA1B390135450A692"><enum>(2)</enum><text display-inline="yes-display-inline">provide small business concerns with the
information necessary to improve their rate of compliance with Federal and
State regulations derived from Federal law;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID739B0DAFA1CB4396B269915596269BBD"><enum>(3)</enum><text display-inline="yes-display-inline">create a partnership among Federal agencies
to increase outreach efforts to small business concerns with respect to
regulatory compliance;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDFD4180F2A5E54698976198F05535E186"><enum>(4)</enum><text display-inline="yes-display-inline">provide a mechanism for unbiased feedback
to Federal agencies on the regulatory environment for small business concerns;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDC01379857CD34F7CB6E1B5CB62DE83CB"><enum>(5)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="ID6A35BC75C4E244A7AA96F79CB03B009F" section-type="subsequent-section"><enum>1703.</enum><header>Small Business
Regulatory Assistance Pilot Program</header>
<subsection commented="no" display-inline="no-display-inline" id="IDAE2E1A9943E34AA98B591CDFC1221F00"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDD23A1A0ACBD74DD79985E76FC9400028"><enum>(1)</enum><header>Association</header><text display-inline="yes-display-inline">The term <term>association</term> means the
association established pursuant to section 21(a)(3)(A) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C.
648(a)(3)(A)) representing a majority of small business development
centers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID85BD9FC239844E0EA292A09CE7BB75CC"><enum>(2)</enum><header>Participating
small business development center</header><text display-inline="yes-display-inline">The term <term>participating small business
development center</term> means a small business development center
participating in the pilot program established under this title.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4C0732284700491A9BCA62B206005166"><enum>(3)</enum><header>Regulatory
compliance assistance</header><text display-inline="yes-display-inline">The
term <term>regulatory compliance assistance</term> 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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA31AB267DE0B4DF8A6B41DEF048F78F3"><enum>(4)</enum><header>Small business
development center</header><text display-inline="yes-display-inline">The term
<term>small business development center</term> means a small business
development center described in section 21 of the <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 648).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDCAEABB661D7F496C95766D00882E1BB9"><enum>(5)</enum><header>State</header><text display-inline="yes-display-inline">The term <term>State</term> means each of
the several States, the District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, American Samoa, and Guam.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID60E651D570984B7BA5F7C41FAD30BEF6"><enum>(b)</enum><header>Authority</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID1EC61D40A24C42F397608E08CC7DFB64"><enum>(c)</enum><header>Small business
development centers</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID984E9074471A4D3FA8D42433E3FBB665"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID71A346061FCA4502B4001E96BEC7DBF6"><enum>(A)</enum><text display-inline="yes-display-inline">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 <act-name parsable-cite="CAA">Clean Air Act</act-name> Amendments of 1990
(42 U.S.C. 7661f);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID46DC4DAF76B34D09A5E09FA87BC196B6"><enum>(B)</enum><text display-inline="yes-display-inline">conduct training and educational
activities;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDF1129E0CEABD40939257D5DB5881F0C1"><enum>(C)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDAFD39B1841BB41ED9C2C780900DEA712"><enum>(D)</enum><text display-inline="yes-display-inline">provide technical assistance;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID31A3C5BDA32946148D9DCF1239B6F93B"><enum>(E)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID58EA0146A4A64A2DB7CBD108B217B41F"><enum>(F)</enum><text display-inline="yes-display-inline">form partnerships with Federal compliance
programs.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1972E14DB7534852A2948E64148E84FF"><enum>(2)</enum><header>Reports</header><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDC20DBC3D33DC4155BE55547CB928C1EF"><enum>(A)</enum><text display-inline="yes-display-inline">a summary of the regulatory compliance
assistance provided by the Center under the pilot program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID61DE51C499424C5F80EBDCD3C53CA1BE"><enum>(B)</enum><text display-inline="yes-display-inline">the number of small business concerns
assisted under the pilot program; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID104F78A39D0444E0A0BDB04096CF9568"><enum>(C)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID5ADC1DB21CCA483990121F3EDEE3FCE8"><enum>(d)</enum><header>Eligibility</header><text display-inline="yes-display-inline">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
<act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C.
648(k)(2)).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDA4C28A067D2C4FACB2F945E1C17D8D82"><enum>(e)</enum><header>Selection of
participating small business development centers</header>
<paragraph commented="no" display-inline="no-display-inline" id="id8B62FEF2212A44208D640BDCBA2DDE35"><enum>(1)</enum><header>Groupings</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID743BD74D6B9F406EA42DDA223EB71050"><enum>(A)</enum><header>Consultation</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8902DC5E4635486F81473F29FDE45542"><enum>(B)</enum><header>Groups</header><text>The
groups described in this subparagraph as follows:</text>
<clause commented="no" display-inline="no-display-inline" id="IDC5853DB61CB24C2DBC655D8630FD9998"><enum>(i)</enum><header>Group
1</header><text display-inline="yes-display-inline">Group 1 shall consist of
Maine, Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode
Island.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDEB8B06BAB4F64EC1B6DB6B04ADCC067F"><enum>(ii)</enum><header>Group
2</header><text display-inline="yes-display-inline">Group 2 shall consist of
New York, New Jersey, Puerto Rico, and the Virgin Islands.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID51CCDA30209444ECA5CEFE9CA505C718"><enum>(iii)</enum><header>Group
3</header><text display-inline="yes-display-inline">Group 3 shall consist of
Pennsylvania, Maryland, West Virginia, Virginia, the District of Columbia, and
Delaware.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID832DDB5EE31D4C51ADE5CAE243D83DE7"><enum>(iv)</enum><header>Group
4</header><text display-inline="yes-display-inline">Group 4 shall consist of
Georgia, Alabama, North Carolina, South Carolina, Mississippi, Florida,
Kentucky, and Tennessee.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDC0DCDBDF0D844FC1AA06596FA5838F53"><enum>(v)</enum><header>Group
5</header><text display-inline="yes-display-inline">Group 5 shall consist of
Illinois, Ohio, Michigan, Indiana, Wisconsin, and Minnesota.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDFC83C40659D244B4A49161E5C37976CD"><enum>(vi)</enum><header>Group
6</header><text display-inline="yes-display-inline">Group 6 shall consist of
Texas, New Mexico, Arkansas, Oklahoma, and Louisiana.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID28047DD863114C8F892019FFB6C257E7"><enum>(vii)</enum><header>Group
7</header><text display-inline="yes-display-inline">Group 7 shall consist of
Missouri, Iowa, Nebraska, and Kansas.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID96DA39F88A8D442584CBD64B000000B6"><enum>(viii)</enum><header>Group
8</header><text display-inline="yes-display-inline">Group 8 shall consist of
Colorado, Wyoming, North Dakota, South Dakota, Montana, and Utah.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDB3612616C84545B100E2321E06B492E9"><enum>(ix)</enum><header>Group
9</header><text display-inline="yes-display-inline">Group 9 shall consist of
California, Guam, American Samoa, Hawaii, Nevada, and Arizona.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID95363BD12BDE4D6780749E5968852D16"><enum>(x)</enum><header>Group
10</header><text display-inline="yes-display-inline">Group 10 shall consist of
Washington, Alaska, Idaho, and Oregon.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2BE3C05315864173B837A6AE57EA43B3"><enum>(2)</enum><header>Deadline for
selection</header><text display-inline="yes-display-inline">The Administrator
shall make selections under this subsection not later than 6 months after the
date of publication of final regulations under section 1704.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID73C480E5CC1943AF905B8EF051F86EC2"><enum>(f)</enum><header>Matching
requirement</header><text display-inline="yes-display-inline">Subparagraphs (A)
and (B) of section 21(a)(4) of the <act-name parsable-cite="SBA">Small Business
Act</act-name> (15 U.S.C. 648(a)(4)) shall apply to assistance made available
under the pilot program established under this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID340DAACC03114E3FBB756D83BA0600DB"><enum>(g)</enum><header>Grant
amounts</header><text display-inline="yes-display-inline">Each State program
selected to receive a grant under subsection (e) shall be eligible to receive a
grant in an amount equal to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID00BCAB01CE3B4271BFE6BEF186BA41C6"><enum>(1)</enum><text display-inline="yes-display-inline">not less than $150,000 per fiscal year;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7D2EED63A55C4628AA8E5C00C373147F"><enum>(2)</enum><text display-inline="yes-display-inline">not more than $300,000 per fiscal
year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDF9992D14AABE418CA61B588C77164823"><enum>(h)</enum><header>Evaluation and
report</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID0B758EFA1E2E418585309EDD9196DF82"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID66961B3DF7D147C7974F2F4825F4895F"><enum>(2)</enum><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID55642EA4ECFF4B1CB25FFE4F3BE685D2"><enum>(A)</enum><text display-inline="yes-display-inline">the results of the evaluation; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDE2742E683A364FFB90ACB8FD5BA85FBD"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA86CC4D92A9745B49B3DBD2C5BCD4E6F"><enum>(i)</enum><header>Posting of
information</header><text>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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID4C65D1B87D364D9BA991C689E26436EF"><enum>(j)</enum><header>Authorization
of appropriations</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID43FC3407F89E4BE2B579C4AF004343BC"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">There are authorized
to be appropriated to carry out this section—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID90595B0C6C4844DF889989FA9900DBD3"><enum>(A)</enum><text display-inline="yes-display-inline">$5,000,000 for the first fiscal year
beginning after the date of enactment of this Act; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6B48B31CC437413AA1AEFB1097001F75"><enum>(B)</enum><text display-inline="yes-display-inline">$5,000,000 for each of the 3 fiscal years
following the fiscal year described in subparagraph (A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE9133F800C684AB9A93FE15E0064A300"><enum>(2)</enum><header>Limitation on
use of other funds</header><text display-inline="yes-display-inline">The
Administrator may carry out the pilot program established under this section
only with amounts appropriated in advance specifically to carry out this
section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDC40239AF86AF4FB996003515FA007092"><enum>(k)</enum><header>Termination</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID9A990D247DA342E9A623F758ABFAE3C3" section-type="subsequent-section"><enum>1704.</enum><header>Rulemaking</header><text display-inline="no-display-inline">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—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID2975795F6FA6412B8647B23FB74EDE03"><enum>(1)</enum><text display-inline="yes-display-inline">priorities for the types of assistance to
be provided under the pilot program established under this title;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0F295D792714486000DB539653F83F5B"><enum>(2)</enum><text display-inline="yes-display-inline">standards relating to educational,
technical, and support services to be provided by participating small business
development centers;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE0013DC70B8248529C2D1CE5A743F2B1"><enum>(3)</enum><text display-inline="yes-display-inline">standards relating to any national service
delivery and support function to be provided by the association under the pilot
program;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID330A5F1A44D2406384F62E30C2EA1552"><enum>(4)</enum><text display-inline="yes-display-inline">standards relating to any work plan that
the Administrator may require a participating small business development center
to develop; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID897E5EF195494016B1F0F5D233713BEB"><enum>(5)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></section><enum>XVIII</enum><header>Intermediary
lending pilot program</header>
<section id="ID5F1AA9DD70074FE29E50A78DE3BA57CA"><enum>1801.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Small Business Intermediary
Lending Pilot Program Act of 2006</short-title></quote>.</text>
</section><section id="ID804535615912483B9EF2C872E13E59E0"><enum>1802.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="ID80C4472C4E3B4DE7A053695629C5D469"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="ID8ECFAA4D120848CC8B7EBD1E5C46D3FA"><enum>(2)</enum><text>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—</text>
<subparagraph id="ID2647000A5DE649729E77914B17F96C90"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="IDD99E2DFAA4D844D0B8A97EB3EA554925"><enum>(B)</enum><text>less flexible
terms and conditions, which are often necessary for small and emerging
businesses.</text>
</subparagraph></paragraph><paragraph id="ID43AEA44F0F8B45E9B61AA50FD32942CB"><enum>(3)</enum><text>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—</text>
<subparagraph id="ID04B8096BB9BF4506964E4DF1D1BAA51E"><enum>(A)</enum><text>providing
riskier, up front, or subordinated capital;</text>
</subparagraph><subparagraph id="IDB13998031F404921A0EF034C609E851E"><enum>(B)</enum><text>offering flexible
terms and underwriting procedures; and</text>
</subparagraph><subparagraph id="IDC7A6AB90A00B402C995BCDF1406B2E65"><enum>(C)</enum><text>providing
technical assistance to businesses in order to reduce the transaction costs and
risk exposure of banks.</text>
</subparagraph></paragraph><paragraph id="ID93C5586729524D8E83A1FCE1CDBB85EA"><enum>(4)</enum><text>Several Federal
programs, including the Microloan Program under section 7(m) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (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.</text>
</paragraph><paragraph id="IDF910A44E866B40F8A70E6352F267DD58"><enum>(5)</enum><text>More than 1,000
nonprofit intermediary lenders in the United States are—</text>
<subparagraph id="IDF9B9DE0F47444B8AB7AAA672C3E51475"><enum>(A)</enum><text>successfully
providing financial and technical assistance to small and emerging
businesses;</text>
</subparagraph><subparagraph id="ID4F7AE66EB952455A83C7333F43E81631"><enum>(B)</enum><text>working with
banks and other lenders to leverage additional capital for their business
borrowers; and</text>
</subparagraph><subparagraph id="ID3F7FF97037C54876A774CA0005133D2C"><enum>(C)</enum><text>creating
employment opportunities for low-income individuals through their lending and
business development activities.</text>
</subparagraph></paragraph></section><section id="ID8052DC6F34DA4243A4E7E9E952C54B30"><enum>1803.</enum><header>Small
business intermediary lending pilot program</header>
<subsection id="IDB06E55D9B4E848A3AB559433A45E5636"><enum>(a)</enum><header>In
general</header><text>Section 7 of the <act-name parsable-cite="SBA">Small
Business Act</act-name> (15 U.S.C. 636) is amended by inserting after
subsection (k) the following:</text>
<quoted-block act-name="Small Business Act" id="ID224EF8EF827B4361B98B5BB4EE52F49E">
<subsection id="IDA7BEED44986E48108C74F0E46D1170DD"><enum>(l)</enum><header>Small business
intermediary lending program</header>
<paragraph id="ID66BE6BFEA8DD48DFA5EEE3F7CAC083A9"><enum>(1)</enum><header>Definitions</header><text>In
this subsection—</text>
<subparagraph id="ID9F285A83153D47F09CFC894F64B4BAC1"><enum>(A)</enum><text>the term
<term>intermediary</term> 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—</text>
<clause id="IDA02EF5BB061148BBB3072848BEB22713"><enum>(i)</enum><text>a
private, nonprofit community development corporation;</text>
</clause><clause id="IDCF94C0E3D8794F6F9653402914E2E4BC"><enum>(ii)</enum><text>a consortium of
private, nonprofit organizations or nonprofit community development
corporations;</text>
</clause><clause id="IDFD28B63BA33F4B3FA6525D28DFEE5F08"><enum>(iii)</enum><text>a
quasi-governmental economic development entity (such as a planning and
development district), other than a State, county, or municipal government;
and</text>
</clause><clause id="IDF9C7FD8765A34F7BA2F03C1AE4E07F36"><enum>(iv)</enum><text>an agency of or
nonprofit entity established by a Native American Tribal Government; and</text>
</clause></subparagraph><subparagraph id="ID5080698C9C984D558EC61ABC77F9B32C"><enum>(B)</enum><text>the term
<term>midsize loan</term> 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.</text>
</subparagraph></paragraph><paragraph id="IDED0775FDE715472197588FD21C1EBFF4"><enum>(2)</enum><header>Establishment</header><text>There
is established a 3-year small business intermediary lending pilot program
(referred to in this subsection as the <quote>Program</quote>), 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.</text>
</paragraph><paragraph id="IDA22ED14C833A4E6B863E36AF589E2B60"><enum>(3)</enum><header>Purposes</header><text>The
purposes of the Program are—</text>
<subparagraph id="ID81D6F8670C73464FAA66D0425A3E5297"><enum>(A)</enum><text>to assist small
business concerns in those areas suffering from a lack of credit due to poor
economic conditions;</text>
</subparagraph><subparagraph id="ID44CAC48FC7D34CC5A6599AA78C55BD42"><enum>(B)</enum><text>to create
employment opportunities for low-income individuals;</text>
</subparagraph><subparagraph id="ID2BC4C05284164250B27EB5E6530E70A2"><enum>(C)</enum><text>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;</text>
</subparagraph><subparagraph id="IDDD14D730E1874C908404D0DF33F4E904"><enum>(D)</enum><text>to test the
effectiveness of nonprofit intermediaries—</text>
<clause id="ID8343D72842BF4BA0BC27FEEE22489DD5"><enum>(i)</enum><text>as a delivery
system for a midsize loan program; and</text>
</clause><clause id="IDF2F89FF96FC84C978B42C4B4E8E98323"><enum>(ii)</enum><text>in addressing
the credit needs of small business concerns and leveraging other sources of
credit; and</text>
</clause></subparagraph><subparagraph id="IDD92FF2379F7F40C5AC5D6AC0704FD120"><enum>(E)</enum><text>to determine the
advisability and feasibility of implementing a midsize loan program
nationwide.</text>
</subparagraph></paragraph><paragraph id="ID00597CBD14A4421E9C84B544CED26526"><enum>(4)</enum><header>Eligibility for
participation</header><text>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.</text>
</paragraph><paragraph id="ID1251CEC047904D18842ADCD0CDC37EBE"><enum>(5)</enum><header>Loans to
intermediaries</header>
<subparagraph id="ID94E5B363192B42269EB80BCC077AA6A1"><enum>(A)</enum><header>Application</header><text>Each
intermediary desiring a loan under this subsection shall submit an application
to the Administration that describes—</text>
<clause id="IDC4BE1269AE444597824CE995F64E01DF"><enum>(i)</enum><text>the type of small
business concerns to be assisted;</text>
</clause><clause id="ID4FF425E16ECB4E96BA9059D7CCB06C03"><enum>(ii)</enum><text>the size and
range of loans to be made;</text>
</clause><clause id="IDBF2D8F679261428EBD7F8EA98145ACD0"><enum>(iii)</enum><text>the geographic
area to be served and its economic, poverty, and unemployment
characteristics;</text>
</clause><clause id="IDAF98174E1C2A4D4F935D18F22A3E0D63"><enum>(iv)</enum><text>the status of
small business concerns in the area to be served and an analysis of the
availability of credit; and</text>
</clause><clause id="ID5DDE1B29D6E5469580F6FA54382C7EB3"><enum>(v)</enum><text>the
qualifications of the applicant to carry out this subsection.</text>
</clause></subparagraph><subparagraph id="ID6D0D84F08D804CF99141D2978788752C"><enum>(B)</enum><header>Loan
limits</header><text>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.</text>
</subparagraph><subparagraph id="ID173A849E7538469B8165D8170EAD17ED"><enum>(C)</enum><header>Loan
duration</header><text>Loans made by the Administration under this subsection
shall be for a maximum term of 20 years.</text>
</subparagraph><subparagraph id="ID9C2B9C662B9F401A9C30ECE985E1A74E"><enum>(D)</enum><header>Applicable
interest rates</header><text>Loans made by the Administration to an
intermediary under the Program shall bear an annual interest rate equal to 1.00
percent.</text>
</subparagraph><subparagraph id="IDF1BCAEC9B2584A1EAC21B7FF47CA583B"><enum>(E)</enum><header>Fees;
collateral</header><text>The Administration may not charge any fees or require
collateral with respect to any loan made to an intermediary under this
subsection.</text>
</subparagraph><subparagraph id="ID6E1A223CAC7748F388803F5909220E60"><enum>(F)</enum><header>Leverage</header><text>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—</text>
<clause id="IDC6DFBF6CFA6E4F7F9F246ED9C6D8BA3E"><enum>(i)</enum><text>banks or credit
unions;</text>
</clause><clause id="ID31ED0638401C43409080E7297AF73BF0"><enum>(ii)</enum><text>community
development financial institutions; and</text>
</clause><clause id="ID65C414BF713A4E95A98D3EB69ADB9504"><enum>(iii)</enum><text>other sources
with funds available to the intermediary lender.</text>
</clause></subparagraph><subparagraph id="ID04BCFD08668C4B9CABB3E849F89A36C1"><enum>(G)</enum><header>Delayed
payments</header><text>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.</text>
</subparagraph></paragraph><paragraph id="IDEB30415BDAE24A14A83637702A209D21"><enum>(6)</enum><header>Program funding
for midsize loans</header>
<subparagraph id="IDBAB4B90C250449648D898BC1B4741AED"><enum>(A)</enum><header>Number of
participants</header><text>Under the Program, the Administration may provide
loans, on a competitive basis, to not more than 20 intermediaries.</text>
</subparagraph><subparagraph id="IDC12BC961B2364191BFD6CB5D400204C2"><enum>(B)</enum><header>Equitable
distribution of intermediaries</header><text>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.</text>
</subparagraph></paragraph><paragraph id="ID61D94928D3FA4D029972AD16B4E102F3"><enum>(7)</enum><header>Report to
congress</header>
<subparagraph id="ID4FEA5D1CF4494BD7A2BDA87D059548F0"><enum>(A)</enum><header>Initial
report</header><text>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—</text>
<clause id="IDE704D08310E346DBA2A6DBFB7D55A63C"><enum>(i)</enum><text>the Committee on
Small Business and Entrepreneurship of the Senate; and</text>
</clause><clause id="ID83E56F80184E45E2A4A2248AD99851E1"><enum>(ii)</enum><text>the Committee on
Small Business of the House of Representatives.</text>
</clause></subparagraph><subparagraph id="IDA528353CC6664E898BEE9DBC1E721403"><enum>(B)</enum><header>Annual
report</header><text>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).</text>
</subparagraph><subparagraph id="ID40A9F3744220415E821352FF20A8C82B"><enum>(C)</enum><header>Contents</header><text>The
reports submitted under subparagraphs (A) and (B) shall include—</text>
<clause id="IDA1F431BC58C143B0AA32CA3017F6C5BC"><enum>(i)</enum><text>the numbers and
locations of the intermediaries receiving funds to provide midsize
loans;</text>
</clause><clause id="ID1973B4E03F0A476C98B6AB96407F717D"><enum>(ii)</enum><text>the amounts of
each loan to an intermediary;</text>
</clause><clause id="IDDBDF74CC62734262AAD0934E7E6FA7FA"><enum>(iii)</enum><text>the numbers and
amounts of midsize loans made by intermediaries to small business
concerns;</text>
</clause><clause id="ID587EDEF70F394812B9861ACB9DF53512"><enum>(iv)</enum><text>the repayment
history of each intermediary;</text>
</clause><clause id="IDB742364D549B4F6080CC94E324567EF6"><enum>(v)</enum><text>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;</text>
</clause><clause id="ID9E1040CFEAA14A9993B48097D9A72F4F"><enum>(vi)</enum><text>an estimate of
the number of low-income individuals who have been employed as a direct result
of the Program; and</text>
</clause><clause id="ID5719FCF57E9B4CE7A56A5012C03B7168"><enum>(vii)</enum><text>any
recommendations for legislative changes that would improve the operation of the
Program.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID797DD4D88E6942D2887E2DD52D6B6A10"><enum>(b)</enum><header>Rulemaking
authority</header><text>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).</text>
</subsection><subsection id="ID8350AA8A49E1433C96D4C96F3F09F60B"><enum>(c)</enum><header>Authorization
of appropriations</header>
<paragraph id="IDC8E81FF05EEA4C52B0EEB2C42B0F2877"><enum>(1)</enum><header>In
general</header><text>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
<act-name parsable-cite="SBA">Small Business Act</act-name>, as added by
subsection (a).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDBCC78F1E122146958017C2A6B86954A6"><enum>(2)</enum><header>Availability</header><text>Any
amounts appropriated pursuant to paragraph (1) shall remain available until
expended.</text>
</paragraph></subsection></section><enum>XIX</enum><header>Other
provisions</header>
<section id="ID888FE0576EED4D6D891781C982704DCB"><enum>1901.</enum><header>Compliance
assistance</header>
<subsection id="IDE019261613414D38910A9FD63019EBAB"><enum>(a)</enum><header>In
general</header><text>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:</text>
<quoted-block id="IDDDDB00D5295940D29A3B5E3B38BEAE05">
<subsection id="IDE8DA86DF0B1644C28EC4DB7D0F3DFD22"><enum>(a)</enum><header>Compliance
guide</header>
<paragraph id="ID1B03947B4417466A9051F8320E941C35"><enum>(1)</enum><header>In
general</header><text>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 <quote>small entity compliance guides</quote>.</text>
</paragraph><paragraph id="ID7E258206335B493CBA61ED1ADE57A871"><enum>(2)</enum><header>Publication of
guides</header><text>The publication of each guide under this subsection shall
include—</text>
<subparagraph id="IDEA49BDAF66F3472F8982DB7ADD13C990"><enum>(A)</enum><text>the posting of
the guide in an easily identified location on the website of the agency;
and</text>
</subparagraph><subparagraph id="ID3153A5A2226B466B9BEDE927CD3ACB30"><enum>(B)</enum><text>distribution of
the guide to known industry contacts, such as small entities, associations, or
industry leaders affected by the rule.</text>
</subparagraph></paragraph><paragraph id="ID668FE2F06D9B4E8DBE7DAD9186B91E29"><enum>(3)</enum><header>Publication
date</header><text>An agency shall publish each guide (including the posting
and distribution of the guide as described under paragraph (2))—</text>
<subparagraph id="IDFF046A0DEB6748B08690EACCE012389A"><enum>(A)</enum><text>on the same date
as the date of publication of the final rule (or as soon as possible after that
date); and</text>
</subparagraph><subparagraph id="ID08707AE6C3024DE29C844F741266D7E1"><enum>(B)</enum><text>not later than
the date on which the requirements of that rule become effective.</text>
</subparagraph></paragraph><paragraph id="ID2F7418FF200547008CF16FA8752B0E6A"><enum>(4)</enum><header>Compliance
actions</header>
<subparagraph id="ID8C898E76BA0E4E42AB95DE60BCE50673"><enum>(A)</enum><header>In
general</header><text>Each guide shall explain the actions which a small entity
is required to take to comply with a rule.</text>
</subparagraph><subparagraph id="ID5C4BE7B2999B4E8BBF92B3D37D472B28"><enum>(B)</enum><header>Explanation</header><text>The
explanation under subparagraph (A)—</text>
<clause id="IDF565B859741E4A889D79A0E3A777F4E4"><enum>(i)</enum><text>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</text>
</clause><clause id="IDE30B0B6F1BFA4C74BBDA6D64A1E0C427"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="ID5F31C5955F2D4953BE08BEF0D037E83C"><enum>(C)</enum><header>Procedures</header><text>Procedures
described under subparagraph (B)(ii)—</text>
<clause id="ID5D872BBAEA93455683B5B061A8EAFD8D"><enum>(i)</enum><text>shall be
suggestions to assist small entities; and</text>
</clause><clause id="ID1C2FECF692AF47F38C1DB459D08CD535"><enum>(ii)</enum><text>shall not be
additional requirements relating to the rule.</text>
</clause></subparagraph></paragraph><paragraph id="IDFEF1EFAC92D44943A55661B4FEAA4152"><enum>(5)</enum><header>Agency
preparation of guides</header><text>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.</text>
</paragraph><paragraph id="id0AE1219DC0AA437A9ADA8BE4100D2FFD"><enum>(6)</enum><header>Reporting</header><text>Not
later than 1 year after the date of enactment of the
<short-title>Small Business Reauthorization and
Improvements Act of 2006</short-title>, 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).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID10E3DA6A02FB4D6B8236D8B39EDEE7F3"><enum>(b)</enum><header>Technical and
conforming amendment</header><text>Section 211(3) of the Small Business
Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 note) is amended by
inserting <quote>and entitled</quote> after <quote>designated</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id8EC0E52F1D3F49D785690354DCCD2611"><enum>1902.</enum><header>Appointment
of officials</header>
<subsection id="id9D65352461684D22A80B5BA5A689FA1C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 4(b)(1) of
the Small Business Act (15 U.S.C. 633(b)(1)) is amended—</text>
<paragraph id="id94200F821A004539B511502E956856F9"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>(A)</quote> after
<quote>(b)(1)</quote>; and</text>
</paragraph><paragraph id="id8E081F70ED6844FABC17B9EC6D8E61E7"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id1FC4287BF0954D5B91CAE20930AF3564" style="OLC">
<subparagraph id="idE4BF1C4E87614C29A21F53311B882406" indent="up2"><enum>(B)</enum><text>The following officials of the
Administration shall be appointed by and with the advice and consent of the
Senate:</text>
<clause id="id309206B31E29425EA8262D6E4687FC04"><enum>(i)</enum><text>The General Counsel.</text>
</clause><clause id="idDCCF828A8D4C434188BB9B25C5AAE6D8"><enum>(ii)</enum><text>The Associate Deputy Administrator
for Capital Access.</text>
</clause><clause id="idAB25E0739B294430B25E8F646CF2012F"><enum>(iii)</enum><text>The Associate Deputy Administrator
for Management and Administration.</text>
</clause><clause id="idC1D218749A794BA6A9A50D0A5313EE7D"><enum>(iv)</enum><text>The Associate Deputy Administrator
for Entrepreneurial Development.</text>
</clause><clause id="id9C4E0723A5114695A0BE97CD0E630F57"><enum>(v)</enum><text>The Associate Deputy Administrator for
Government Contracting and Business Development.</text>
</clause><clause id="id9C77F5B7E7594E89B7BE439395153101"><enum>(vi)</enum><text>The Associate Administrator for
Disaster
Assistance.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF068F8B84F8848B0B7CED990EC4D10C8"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall take effect with
respect to any appointment made after the date of enactment of this Act.</text>
</subsection></section><section id="idC8459F573C1641BBA5931F6E54F222DC"><enum>1903.</enum><header>Second-stage
Pilot Program</header>
<subsection id="HABB9067BF3364AC9B1D921A3FF7C1FFC"><enum>(a)</enum><header>Purpose</header><text display-inline="yes-display-inline">The purpose of this section is to establish
a 3-year pilot program to—</text>
<paragraph id="H6451C7CF8EAD419BAE00BDE961072633"><enum>(1)</enum><text>identify
second-stage small business concerns that have the capacity for significant
business growth and job creation;</text>
</paragraph><paragraph id="H51E382BC6880464FBC4DA90757DA321E"><enum>(2)</enum><text>facilitate
business growth and job creation by second-stage small business concerns
through the development of peer learning opportunities;</text>
</paragraph><paragraph id="H9EC8D0B9128D43AFB1EA317BD16DB8E4"><enum>(3)</enum><text>utilize the
network of small business development centers to expand access to peer learning
opportunities for second-stage small business concerns; and</text>
</paragraph><paragraph id="HDE8FA5ED2D1A402589B259AB22A8C871"><enum>(4)</enum><text display-inline="yes-display-inline">assist businesses owned by minority
individuals, service-disabled veterans, and women.</text>
</paragraph></subsection><subsection id="H16EBA0FA7FC04867B132D20708B10C1"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="H4E2A74C33AAC44A7ACD41E52188B5C71"><enum>(1)</enum><header>Community
college</header><text>The term <quote>community college</quote> has the meaning
given that term in section 3301(3) of the Higher Education Act of 1965 (20
U.S.C. 7011(3)).</text>
</paragraph><paragraph display-inline="no-display-inline" id="H19DB250615774AFD96920510C68D8C"><enum>(2)</enum><header>Eligible
entities</header><text>The term <quote>eligible entity</quote> means an entity
that—</text>
<subparagraph id="H1A201B29B1164EE2B6FB01183FF033F"><enum>(A)</enum><text>is eligible to
receive funding under section 21 of the Small Business Act (15 U.S.C. 648);
and</text>
</subparagraph><subparagraph id="HEC110E8A1BD14EA0B877FA8795B64CD6"><enum>(B)</enum><text>submits to the
Administrator an application that includes—</text>
<clause id="H1628EAEF00444E968B9F038300A200A0"><enum>(i)</enum><text>a
plan to—</text>
<subclause id="HDF0F6C3C2CBD48A0AD602D9C1E01047F"><enum>(I)</enum><text>offer peer
learning opportunities to second-stage small business concerns; and</text>
</subclause><subclause id="H6AA22472D88C4301A71030E02C7DFCA8"><enum>(II)</enum><text>transition to
providing such opportunities using nongovernmental funding; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H3934706535244C50B760F271344BD7E0"><enum>(ii)</enum><text>any other
information and assurances that the Administrator may require.</text>
</clause></subparagraph></paragraph><paragraph id="HFE60221B7C8D418E895F8C4082E6E3A1"><enum>(3)</enum><header>Historically
black college</header><text>The term <quote>historically Black college</quote>
means a part B institution, as defined in section 322(2) of the Higher
Education Act of 1965 (20 U.S.C. 1061(2)).</text>
</paragraph><paragraph id="H0C3E0367CCD94D3A92CC277904A2D280"><enum>(4)</enum><header>Hispanic-serving
institution</header><text>The term <quote>Hispanic-serving institution</quote>
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)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H182FB14F1AEB47529F44399CF88EFFCD"><enum>(5)</enum><header>Minority
institution</header><text>The term <quote>minority institution</quote> has the
meaning given that term in section 365(3) of the Higher Education Act of 1965
(20 U.S.C. 1067k(3)).</text>
</paragraph><paragraph id="H58656D2545414AA49EC23255065D1C9D"><enum>(6)</enum><header>Peer learning
opportunities</header><text>The term <quote>peer learning opportunities</quote>
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.</text>
</paragraph><paragraph id="idC12908D292574CA2950ED24941487323"><enum>(7)</enum><header>Pilot
program</header><text>The term <term>pilot program</term> means the program
established under subsection (c)(1).</text>
</paragraph><paragraph id="H9590ED2CFF0042C9B6D643EDFB3F90ED"><enum>(8)</enum><header>Second-stage
small business concern</header>
<subparagraph id="idC589E3BD57AF4451973F91E890829FBE"><enum>(A)</enum><header>In
general</header><text>The term <quote>second-stage small business
concern</quote> means a small business concern that—</text>
<clause id="H34E64423A8DA4524874FDEBD19311531"><enum>(i)</enum><text>has
experienced high growth demonstrated by—</text>
<subclause id="H321E321FA7AD4C12904075CBD863F387"><enum>(I)</enum><text>an average annual
revenue or employee growth rate of at least 15 percent during the preceding 3
years; or</text>
</subclause><subclause id="H002305411AAF44CA9F6F236ED47F5EA0"><enum>(II)</enum><text>a combination of
any 3 of the attributes described in subparagraph (B); and</text>
</subclause></clause><clause id="H6AE89BB09CF44932A63E1C7371007D78"><enum>(ii)</enum><text>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)).</text>
</clause></subparagraph><subparagraph id="idBB55BFD7FACE421182BC30F9D2F13A83"><enum>(B)</enum><header>Attributes</header><text>The
attributes described in this subparagraph are—</text>
<clause id="H64650273CD60481394C4A553CDC8AB1B"><enum>(i)</enum><text>owning proprietary
intellectual property;</text>
</clause><clause id="H398D61217C4747A5B96F03F145006E8D"><enum>(ii)</enum><text>addressing an
underserved or growing market;</text>
</clause><clause id="H8467C8129CFC4EE800AC360095ABDD00"><enum>(iii)</enum><text>having a
sustainable competitive advantage;</text>
</clause><clause id="H02F7243BD12A4675B1A2A000046436F"><enum>(iv)</enum><text>exporting goods or
services outside of its community;</text>
</clause><clause id="H671C0AE9D23A41FEB2145E8CAD5BD2E1"><enum>(v)</enum><text>having a product
or service that is scalable to a large market; and</text>
</clause><clause id="HC1659D08D5C544CA988B12106CCE0050"><enum>(vi)</enum><text>ownership by
minority individuals, service-disabled veterans, or women.</text>
</clause></subparagraph></paragraph><paragraph id="H27B3B14A9FCF4EFB9266E750A435793"><enum>(9)</enum><header>State</header><text>The
term <quote>State</quote> means each of the several States, the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and
American Samoa.</text>
</paragraph></subsection><subsection id="HF4DE87D8CFBE4A8792F44145D015AEA9"><enum>(c)</enum><header>Pilot
program</header>
<paragraph id="H984577CEC2EE48DAA0EC57E6BADB7C7"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H34222C37D4B54A08A269F48E364D66EC"><enum>(2)</enum><header>Selection of
grant recipients</header>
<subparagraph id="H23F5D4E89431427FAA2FB16E00D18F7F"><enum>(A)</enum><header>In
general</header><text>The Administrator shall select 2 eligible entities from
each of the 10 regions described in subparagraph (C) to receive grants.</text>
</subparagraph><subparagraph id="HC7E23F60839544818CBF72FBF48413C0"><enum>(B)</enum><header>Criteria for
selection</header><text>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.</text>
</subparagraph><subparagraph id="H9F56C0709E924E469964B7077B6E9E16"><enum>(C)</enum><header>Regions
described</header><text>The regions described in this subparagraph are as
follows:</text>
<clause id="HDED6A47696BA45A18E5C23D4DC3E7955"><enum>(i)</enum><header>Region
1</header><text>Maine, Massachusetts, New Hampshire, Connecticut, Vermont, and
Rhode Island.</text>
</clause><clause id="H68BB5652EBAB4C619B579B774DBCA329"><enum>(ii)</enum><header>Region
2</header><text>New York, New Jersey, Puerto Rico, and the Virgin
Islands.</text>
</clause><clause id="H7AE8DA94A7F14E728FF420059D003252"><enum>(iii)</enum><header>Region
3</header><text>Pennsylvania, Maryland, West Virginia, Virginia, the District
of Columbia, and Delaware.</text>
</clause><clause id="H33E67876D3664DC897D882C91117EFD4"><enum>(iv)</enum><header>Region
4</header><text>Georgia, Alabama, North Carolina, South Carolina, Mississippi,
Florida, Kentucky, and Tennessee.</text>
</clause><clause id="H6E8DC6B70D6549F0AE258DDE51A55892"><enum>(v)</enum><header>Region
5</header><text>Illinois, Ohio, Michigan, Indiana, Wisconsin, and
Minnesota.</text>
</clause><clause id="HFD77CBC86C16471BAB13ECDCFF05449"><enum>(vi)</enum><header>Region
6</header><text>Texas, New Mexico, Arkansas, Oklahoma, and Louisiana.</text>
</clause><clause id="H330F004227C3414791C14BACC7E2DC00"><enum>(vii)</enum><header>Region
7</header><text>Missouri, Iowa, Nebraska, and Kansas.</text>
</clause><clause id="HBB7CD108867542BDA453E6AA7B27BF17"><enum>(viii)</enum><header>Region
8</header><text>Colorado, Wyoming, North Dakota, South Dakota, Montana, and
Utah.</text>
</clause><clause id="HCBC8B432BC10477C8531BC70012CBE94"><enum>(ix)</enum><header>Region
9</header><text>California, Guam, Hawaii, Nevada, Arizona, and American
Samoa.</text>
</clause><clause id="HE312665AD36C44CE8277050220407E17"><enum>(x)</enum><header>Region
10</header><text>Washington, Alaska, Idaho, and Oregon.</text>
</clause></subparagraph><subparagraph id="H5D8D608F582A4FEAABF2189B8E62801"><enum>(D)</enum><header>Consultation</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H478EF4E7B14745F1ADF4D4E100922159"><enum>(E)</enum><header>Deadline for
initial selections</header><text>The Administrator shall make selections under
subparagraph (A) not later than 60 days after the promulgation of regulations
under subsection (d).</text>
</subparagraph></paragraph><paragraph id="H91D88CD45B6A4DBFAC01C8FABB2F75D"><enum>(3)</enum><header>Use of
funds</header><text>An eligible entity that receives a grant under the pilot
program shall use the grant to—</text>
<subparagraph id="HC782023E10FC4FC8AFD7F9002C71A301"><enum>(A)</enum><text>identify
second-stage small business concerns in the service delivery areas of the
eligible entity; and</text>
</subparagraph><subparagraph id="HF33BC5EC408C4C75AFD8C8A2000260D3"><enum>(B)</enum><text>establish and
conduct peer learning opportunities for such second-stage small business
concerns.</text>
</subparagraph></paragraph><paragraph id="H1290C4D4A947489F89A90411B639171D"><enum>(4)</enum><header>Amount of
grant</header>
<subparagraph id="H7AF412BC8D93401E98075111F1A8CB67"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="H25AA7639A78240E68D20EFD45E68255E"><enum>(i)</enum><text>the
amount made available for grants under the pilot program for the fiscal year
for which the grant is made; and</text>
</clause><clause id="HD37128BC95B1478BB976F1182B495C6D"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H497E577FCEC248F2883D9D097BA910B2"><enum>(B)</enum><header>Minimum amount
of grant</header><text>A grant under the pilot program shall be in an amount
not less than $50,000.</text>
</subparagraph></paragraph><paragraph id="H4FCD85F49D07499FBD18A16912328FCA"><enum>(5)</enum><header>Matching
requirement</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H6DE2673235044D38BC07ED41A300A84"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph id="H28574BE3C2E543C99F39F94CF6E54291"><enum>(B)</enum><text>is not less than
50 percent cash;</text>
</subparagraph><subparagraph id="HA25BBC7547C449B8817F700017C5607E"><enum>(C)</enum><text>is not more than
50 percent comprised of indirect costs and in-kind contributions; and</text>
</subparagraph><subparagraph id="HCC9FE483C2824E059D843E2DC9024FB"><enum>(D)</enum><text>does not include
any indirect cost or in-kind contribution derived from any Federal
program.</text>
</subparagraph></paragraph><paragraph id="H1C9D40BE5F76441BB01C7D7ED33F078D"><enum>(6)</enum><header>Quarterly report
to Administrator</header>
<subparagraph id="H28435C67B89745D2B9750498BB4F471E"><enum>(A)</enum><header>In
general</header><text>Each eligible entity that receives a grant under the
pilot program shall submit to the Administrator a quarterly report that
includes—</text>
<clause id="HC69A65601EF44BE08B97D59C9027D4FF"><enum>(i)</enum><text>a
summary of the peer learning opportunities established by the eligible entity
using grant funds;</text>
</clause><clause id="H151C5768A73A487FBED1FA9EECC851E"><enum>(ii)</enum><text>the
number of second-stage small business concerns assisted using grant funds;
and</text>
</clause><clause id="H032E1A2CBEA1491E85757B7D5442CCDC"><enum>(iii)</enum><text>in
the case of an eligible entity that receives a grant for a second fiscal year
or any subsequent fiscal year—</text>
<subclause id="HBB8E0467E35242CF96009997D123E711"><enum>(I)</enum><text>any measurable
economic impact data resulting from the peer learning opportunities established
using grant funds; and</text>
</subclause><subclause id="HD969AB2E9D5E4945BED7E83325602140"><enum>(II)</enum><text>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.</text>
</subclause></clause></subparagraph><subparagraph id="HE5EEA48C341548E48C12C1AA8E00056B"><enum>(B)</enum><header>Form of
report</header><text>Each report required under subparagraph (A) shall be
transmitted in electronic form.</text>
</subparagraph></paragraph><paragraph id="HD33C7E121CE147A690A142F482A684A9"><enum>(7)</enum><header>Data Repository
and Clearinghouse</header><text>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.</text>
</paragraph><paragraph id="H5F96423636094298874BBAC28C57643C"><enum>(8)</enum><header>Annual report on
pilot program</header><text>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:</text>
<subparagraph id="HE388AE105DB642A89F721C061D9CE375"><enum>(A)</enum><text>A description of
the types of peer learning opportunities provided with grant funds.</text>
</subparagraph><subparagraph id="HAFAE2B6CBAEB43699CB91B1E00EE16B6"><enum>(B)</enum><text>The number of
second-stage small business concerns assisted with grant funds.</text>
</subparagraph><subparagraph id="H5A6791E44F3345ADAA1C664182B274A4"><enum>(C)</enum><text>For fiscal year
2007 and each subsequent fiscal year of the pilot program—</text>
<clause id="HD202DF84C2D34CD4A5E2CE8348325E6"><enum>(i)</enum><text>data
regarding the economic impact of the peer learning opportunities provided with
grant funds; and</text>
</clause><clause id="H3114DBA170924470938C12E18F69866"><enum>(ii)</enum><text>the
number of peer learning opportunities established by grant recipients that have
transitioned from operating using Government funds to operating without using
Government funds.</text>
</clause></subparagraph></paragraph><paragraph id="HAFD5FCA9E010469D87A084C1E7F28EED"><enum>(9)</enum><header>Privacy
Requirement</header>
<subparagraph id="H7B573224674D449FAFD53C392286966"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="HE71391264EE64564A91B2DF9DD98EAC4"><enum>(i)</enum><text>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</text>
</clause><clause id="HD255245AF924417E846B47A157E6FA00"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="HF96EF7B0B1EE43F5B13B1B2BDDBE496B"><enum>(B)</enum><header>Administrator
use of information</header><text>The privacy requirement under this paragraph
shall not—</text>
<clause id="HE616922724B24B26B355949554DEFB1"><enum>(i)</enum><text>restrict
Administrator access to program activity data; or</text>
</clause><clause id="HBE3C4F52CEFB4F2B83AB30858D094C82"><enum>(ii)</enum><text>prevent the
Administrator from using client information to conduct client surveys.</text>
</clause></subparagraph></paragraph><paragraph id="H8B947B7E99044C669407556590730002"><enum>(10)</enum><header>Evaluation and
Report</header><text>Not later than 2 years after the establishment of the
pilot program, the Comptroller General of the United States shall—</text>
<subparagraph id="HA377BB5135CC45B19642C3DA1A0675C"><enum>(A)</enum><text>conduct an
evaluation of the pilot program; and</text>
</subparagraph><subparagraph id="H8F1FC070D6CD4F48AB52F882A2285D17"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HC20A01D3A80842D284C44D97B18514D2"><enum>(11)</enum><header>Termination</header><text>The
pilot program shall terminate on September 30, 2009.</text>
</paragraph></subsection><subsection id="H85232F85AA0E4BB9AD36D15900257F9C"><enum>(d)</enum><header>Regulations</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="HE3C1CCBC0C7F47D1AFD66DDE2CF57F55"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H1D98F73263A44F92A2A8CBB26BACA300"><enum>(2)</enum><text>standards relating
to the educational, technical, and professional competency of any facilitator
who delivers peer learning opportunities under the pilot program; and</text>
</paragraph><paragraph id="HD3603F64ACE440B0827C64BA104BCE6E"><enum>(3)</enum><text>requirements for
transitioning peer learning opportunities funded under the pilot program to
nongovernmental funding.</text>
</paragraph></subsection><subsection id="H0133DFAD9413436EBC062B749D38BF66"><enum>(e)</enum><header>Authorization of
Appropriations</header>
<paragraph id="H1B019B24403844E1B376ABE51DE97BCB"><enum>(1)</enum><header>In
general</header><text>There are authorized to be appropriated to carry out this
section, $1,500,000 for each of fiscal years 2007 through 2009.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H25CEA728B12248729E8967BB3869665C"><enum>(2)</enum><header>Limitation on
use of other funds</header><text>The Administrator shall carry out this section
using only amounts appropriated in advance specifically for the purpose of
carrying out this section.</text>
</paragraph></subsection></section><section id="IDD367705DD88D4B58AD00627FCE428699"><enum>1904.</enum><header>PRIME
reauthorization and transfer to the <act-name parsable-cite="SBA">Small
Business Act</act-name></header>
<subsection id="ID73483075E90B416DA18C06917614C391"><enum>(a)</enum><header>Program
reauthorization</header><text>The <act-name parsable-cite="SBA">Small Business
Act</act-name> (15 U.S.C. 631 et seq.) is amended by inserting after section
39, as added by this Act, the following:</text>
<quoted-block id="ID3A98023F14AD4D67B533313C4BEEDDFE">
<section id="ID27D62F2F2A7643058CFBBAB6AA78A445"><enum>40.</enum><header>Program for
Investment in microentrepreneurs</header>
<subsection id="ID6378088B010E4F88B9FC7CBBF2FDC559"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="IDF38B91DDD27A452094BBBE53CF1B4872"><enum>(1)</enum><header>Capacity
building services</header><text>The term <term>capacity building
services</term> 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.</text>
</paragraph><paragraph id="ID04DBE1D76B3B4DE7009F25D3995C59A7"><enum>(2)</enum><header>Collaborative</header><text>The
term <term>collaborative</term> means 2 or more nonprofit entities that agree
to act jointly as a qualified organization under this section.</text>
</paragraph><paragraph id="ID24C6F18577794F8D00F2D25F9DA091FC"><enum>(3)</enum><header>Disadvantaged
entrepreneur</header><text>The term <term>disadvantaged entrepreneur</term>
means a microentrepreneur that—</text>
<subparagraph id="ID9951FF69E25640F089ED4CA790E4E493"><enum>(A)</enum><text>is a low-income
person;</text>
</subparagraph><subparagraph id="IDAB5C40D65CDE4171B6C73CB5BBE304AE"><enum>(B)</enum><text>is a very
low-income person; or</text>
</subparagraph><subparagraph id="ID0667900102DD47E285E23F32654400F9"><enum>(C)</enum><text>lacks adequate
access to capital or other resources essential for business success, or is
economically disadvantaged, as determined by the Administrator.</text>
</subparagraph></paragraph><paragraph id="IDE3EBDC7365E04B3AADDF369360C4167B"><enum>(4)</enum><header>Disadvantaged
Native American entrepreneur</header><text>The term <term>disadvantaged Native
American entrepreneur</term> means a disadvantaged entrepreneur who is also a
member of an Indian Tribe.</text>
</paragraph><paragraph id="ID2AA8698D76E841F995E000D630ECF2D7"><enum>(5)</enum><header>Indian
Tribe</header><text>The term <term>Indian tribe</term> has the same meaning as
in section 4(a) of the <act-name parsable-cite="ISDA">Indian Self-Determination
and Education Assistance Act</act-name>.</text>
</paragraph><paragraph id="ID4593FB5A600D45F3A90071EDA45C16D3"><enum>(6)</enum><header>Intermediary</header><text>The
term <term>intermediary</term> means a private, nonprofit entity that seeks to
serve microenterprise development organizations and programs, as authorized
under subsection (d).</text>
</paragraph><paragraph id="ID4B46B66D792045E0A2C979C297E19DDF"><enum>(7)</enum><header>Low-income
person</header><text>The term <term>low-income person</term> means having an
income, adjusted for family size, of not more than—</text>
<subparagraph id="ID1D4BFF51A8084ADFA3DCBADF95A31FD5"><enum>(A)</enum><text>for metropolitan
areas, 80 percent of the area median income; and</text>
</subparagraph><subparagraph id="ID8235EB99FFC84E21988CD9D0C338B6F0"><enum>(B)</enum><text>for
nonmetropolitan areas, the greater of—</text>
<clause id="ID1D13B1FECBDB42A98922042ECCBA2F8E"><enum>(i)</enum><text>80 percent of the
area median income; or</text>
</clause><clause id="IDBBD8D9B124D84B47B1E2E0184FABB7F2"><enum>(ii)</enum><text>80 percent of
the statewide nonmetropolitan area median income.</text>
</clause></subparagraph></paragraph><paragraph id="IDED189C09CC44474C8CE3796DF934C362"><enum>(8)</enum><header>Microentrepreneur</header><text>The
term <term>microentrepreneur</term> means the owner or developer of a
microenterprise.</text>
</paragraph><paragraph id="IDE670A500B7D24194BEAD883FCAF3DF8B"><enum>(9)</enum><header>Microenterprise</header><text>The
term <term>microenterprise</term> means a sole proprietorship, partnership, or
corporation that—</text>
<subparagraph id="ID42AF317FD4C34FE38DA617975934673F"><enum>(A)</enum><text>has fewer than 5
employees; and</text>
</subparagraph><subparagraph id="ID86B62309D999408CBD32D9007706F3A4"><enum>(B)</enum><text>generally lacks
access to conventional loans, equity, or other banking services.</text>
</subparagraph></paragraph><paragraph id="IDBBC885038D0C41EC9D54A2360016248E"><enum>(10)</enum><header>Microenterprise
development organization or Program</header><text>The term
<term>microenterprise development organization or program</term> 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.</text>
</paragraph><paragraph id="IDF4E251594E6E4D388D2CCE50C3569F92"><enum>(11)</enum><header>Training and
technical assistance</header><text>The term <term>training and technical
assistance</term> 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.</text>
</paragraph><paragraph id="ID6489E7991AB647DE8F0296E2D0951545"><enum>(12)</enum><header>Very
low-income person</header><text>The term <term>very low-income person</term>
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).</text>
</paragraph></subsection><subsection id="ID0EA1075B437D4854A7D67F423E004773"><enum>(b)</enum><header>Establishment
of Program</header><text>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.</text>
</subsection><subsection id="IDD72083FBF23A4459BD1CD4E5D7781500"><enum>(c)</enum><header>Uses of
assistance</header><text>A qualified organization shall use grants made under
this section—</text>
<paragraph id="ID3B06476987B643A58DC6B4C5891B0033"><enum>(1)</enum><text>to provide
training and technical assistance to disadvantaged entrepreneurs;</text>
</paragraph><paragraph id="IDD21B34FB55C5485D9688E54F697DD61C"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="IDBE4E551B2A234425BB4B40A00075FA54"><enum>(3)</enum><text>to aid in
researching and developing the best practices in the field of microenterprise
and technical assistance programs for disadvantaged entrepreneurs;</text>
</paragraph><paragraph id="ID823F5F673EA24931B4FEAFB0CEC3CF15"><enum>(4)</enum><text>to provide
training and technical assistance to disadvantaged Native American
entrepreneurs and prospective entrepreneurs; and</text>
</paragraph><paragraph id="IDCF51C31F31A343F5A21EA4DBF2005E46"><enum>(5)</enum><text>for such other
activities as the Administrator determines are consistent with the purposes of
this section.</text>
</paragraph></subsection><subsection id="IDAC432992EA054F3F82CFE4A7EE881825"><enum>(d)</enum><header>Qualified
organizations</header><text>For purposes of eligibility for assistance under
this section, a qualified organization shall be—</text>
<paragraph id="ID7FDFDB7185584FA700EE5B131E71B1FD"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="ID666DBB3F11474F8AA215156CF9E6DD49"><enum>(2)</enum><text>an
intermediary;</text>
</paragraph><paragraph id="ID715C403E99B848D400DFD573886369EF"><enum>(3)</enum><text>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</text>
</paragraph><paragraph id="ID1E00EF77BE814CDCA5BF8B9F399DD03C"><enum>(4)</enum><text>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.</text>
</paragraph></subsection><subsection id="IDCA49C196DDEF4044855CEB7F9977B3BE"><enum>(e)</enum><header>Allocation of
assistance; subgrants</header>
<paragraph id="ID5FCA388602F54EFAAAB2481D81DB4E01"><enum>(1)</enum><header>Allocation of
assistance</header>
<subparagraph id="IDC83AB59131EA4F5593E12609BC50729B"><enum>(A)</enum><header>In
general</header><text>The Administrator shall allocate assistance from the
Administration under this section to ensure that—</text>
<clause id="ID4A791C181E534D6487A068FEF3326300"><enum>(i)</enum><text>activities
described in subsection (c)(1) are funded using not less than 75 percent of
amounts made available for such assistance; and</text>
</clause><clause id="IDE8EF06D625694FB3A5293CA2D2E65E9F"><enum>(ii)</enum><text>activities
described in subsection (c)(2) are funded using not less than 15 percent of
amounts made available for such assistance.</text>
</clause></subparagraph><subparagraph id="ID90A53FA0447D4D4098C90050C59E0051"><enum>(B)</enum><header>Limit on
individual assistance</header><text>No single person may receive more than 10
percent of the total funds appropriated under this section in a single fiscal
year.</text>
</subparagraph></paragraph><paragraph id="ID87288990613E4A71B5E3CB00DE56087E"><enum>(2)</enum><header>Targeted
assistance</header><text>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.</text>
</paragraph><paragraph id="ID57BE87F1E2B74F3F9E28C0A76EFC5B41"><enum>(3)</enum><header>Subgrants
authorized</header>
<subparagraph id="ID1EC792C627DF467EB9FF3D61C400997D"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="ID5511A5AC0644450180EC74CBB9B77289"><enum>(B)</enum><header>Limit on
administrative expenses</header><text>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).</text>
</subparagraph></paragraph><paragraph id="IDBCBBE2634A3C41D7A44F61883012BCEB"><enum>(4)</enum><header>Diversity</header><text>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.</text>
</paragraph><paragraph id="IDBC1A24C808394EA28630E50063258F8C"><enum>(5)</enum><header>Prohibition on
preferential consideration of certain Administration Program
participants</header><text>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.</text>
</paragraph></subsection><subsection id="ID820C50F5ABDC45BF007D3B09CF17D15F"><enum>(f)</enum><header>Matching
requirements</header>
<paragraph id="ID1B11CA92F2F94478A30420FBE772598D"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID8285953D2F8F4F3191B34B97C8873F9E"><enum>(2)</enum><header>Sources of
matching funds</header><text>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).</text>
</paragraph><paragraph id="ID467AC1173FAA44CFA795A548C434F91D"><enum>(3)</enum><header>Exception</header>
<subparagraph id="ID7B012074499F4CD9A6FB05692853A0DF"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="ID589A3D46EAC94520B93B0072EE54CAD4"><enum>(B)</enum><header>Limitation</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="ID58C78C10B0FB47809F9DFB1D032FB11D"><enum>(g)</enum><header>Applications
for assistance</header><text>An application for assistance under this section
shall be submitted in such form and in accordance with such procedures as the
Administrator shall establish.</text>
</subsection><subsection id="IDB17596ED1D724DDD8F6E5800BBF876E0"><enum>(h)</enum><header>Recordkeeping
and reporting</header>
<paragraph id="ID8D0B334CDF4040068EB757E9FF6125D3"><enum>(1)</enum><header>In
general</header><text>Each organization that receives assistance from the
Administration under this section shall—</text>
<subparagraph id="ID82987F82C6C14AA4B663323EACF85400"><enum>(A)</enum><text>submit to the
Administration not less than once in every 18-month period, financial
statements audited by an independent certified public accountant;</text>
</subparagraph><subparagraph id="ID05829283760E47E0BB7132AB37CF2BD0"><enum>(B)</enum><text>submit an annual
report to the Administration on its activities; and</text>
</subparagraph><subparagraph id="ID400727A83A3D442F8E194F4C32521C31"><enum>(C)</enum><text>keep such records
as may be necessary to disclose the manner in which any assistance under this
section is used.</text>
</subparagraph></paragraph><paragraph id="ID740A97FC9B8D4C79886D2DC27F203788"><enum>(2)</enum><header>Access</header><text>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.</text>
</paragraph><paragraph id="IDB77520892C684879AC46357EABE49C74"><enum>(3)</enum><header>Data
collection</header><text>Each organization that receives assistance from the
Administration under this section shall collect information relating to, as
applicable—</text>
<subparagraph id="IDCEA80D33D4444DC2BBCF2FBEF649ECD6"><enum>(A)</enum><text>the number of
individuals counseled or trained;</text>
</subparagraph><subparagraph id="ID0BE4D9B68FAC4A97973E5EA6CDF0BDDE"><enum>(B)</enum><text>the number of
hours of counseling provided;</text>
</subparagraph><subparagraph id="ID47F8FB69D21A49BEABF2DDEDAAB46084"><enum>(C)</enum><text>the number of
startup small business concerns formed;</text>
</subparagraph><subparagraph id="ID607704D77A3343CDB4DCA2C656647EC4"><enum>(D)</enum><text>the number of
small business concerns expanded;</text>
</subparagraph><subparagraph id="ID96A13C4BF21347A2A8E33BE14C15595B"><enum>(E)</enum><text>the number of
low-income individuals counseled or trained; and</text>
</subparagraph><subparagraph id="ID28FFDB72431B4032B196645DAD6E673B"><enum>(F)</enum><text>the number of
very low-income individuals counseled or trained.</text>
</subparagraph></paragraph></subsection><subsection id="ID33BC480C4BFA46D5B924F286CE75C100"><enum>(i)</enum><header>Authorization
of appropriations</header>
<paragraph id="ID4255E0CF8D76476799FB034BF36B2D58"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="IDD83CCEDB962F4B6EA72FD5A4096D223E"><enum>(2)</enum><header>Training for
Native American entrepreneurs</header><text>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.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID433E80CD5ABF40DDAE735982FE3FF87D"><enum>(b)</enum><header>Conforming
repeal</header><text>Subtitle C of title I of the Riegle Community Development
and Regulatory Improvement Act of 1994 (15 U.S.C. 6901 note) is
repealed.</text>
</subsection><subsection id="ID97941A900A884F9B0095742F97C312FB"><enum>(c)</enum><header>References</header><text>All
references in Federal law, other than subsection (d) of this section, to the
<quote>Program for Investment in Microentrepreneurs Act of 1999</quote> or the
<quote>PRIME Act</quote> shall be deemed to be references to section 40 of the
<act-name parsable-cite="SBA">Small Business Act</act-name>, as added by this
section.</text>
</subsection><subsection id="IDED1EF380B5FD47CEA370C4424F9E6C43"><enum>(d)</enum><header>Rule of
construction</header><text>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.</text>
</subsection></section><section id="idCC5CBE022A5E4EF5B5951AE4F17BD9D4"><enum>1905.</enum><header>Child Care
Lending Pilot Program</header>
<subsection commented="no" display-inline="no-display-inline" id="id600373E3E69046D1AEEEBDA09AE50816"><enum>(a)</enum><header>Child care
lending pilot program</header><text display-inline="yes-display-inline">Section
502 of the Small Business Investment Act of 1958 (15 U.S.C. 696), as amended by
this Act, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID83760486c7b34102b3e21e0694a149c3"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding paragraph
(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID8a8bdaa8e0e647bf922723331b7597cb"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>The
Administration</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id60F37C7C08634089972F04255211C8ED" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="ID2d9e506ee1534587b3c34dd0209a62bf"><enum>(a)</enum><header>Authorization</header><text display-inline="yes-display-inline">The
Administration</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDe463ed59adbd4ff4848837ca9b785a8f"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>and such loans</quote>
and inserting <quote>. Such loans</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID384aa87bffa44c28a02ee4d33f3a3229"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>: <italic>Provided,
however</italic>, That the foregoing powers shall be subject to the following
restrictions and limitations:</quote> and inserting a period; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7473fc49b96e496598b7a99dd8f6664e"><enum>(D)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id5D68249388964745B5CFE16D476B3BB0" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="ID603b697353ae433294f2a18e7e7a8ea6"><enum>(b)</enum><header>Restrictions
and limitations</header><text display-inline="yes-display-inline">The authority
under subsection (a) shall be subject to the following restrictions and
limitations:</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1d590b21bced4fdbb7731a75a28ad78d"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)(1), as so
redesignated—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID3894084e627f4e7784812c9bb676f83b"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting after <quote><header-in-text level="paragraph" style="OLC">Use of proceeds</header-in-text>.—</quote> the
following:</text>
<quoted-block display-inline="no-display-inline" id="idF94A265FD5704262A798E3CC21A6F14D" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="IDbbda995b470c45f6b6b29e917933c9fa"><enum>(A)</enum><header>In
general</header>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb6eadde771b4473db08c0b8884e7b0c6"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id07B8112D041D4B3FA3E77C4E5FB2E904" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="ID0757cf9cfe8544e0af06e0d572734ea6"><enum>(B)</enum><header>Loans to small,
nonprofit child care businesses</header>
<clause commented="no" display-inline="no-display-inline" id="ID4cbf850790574f7cbbe5ab987b3ae5d0"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subclause commented="no" display-inline="no-display-inline" id="IDa10052a57625419a8d854652ae00d9c5"><enum>(I)</enum><text display-inline="yes-display-inline">the loan is used for a sound business
purpose that has been approved by the Administration;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID95f34f0257064c7da939d4cf1618c446"><enum>(II)</enum><text display-inline="yes-display-inline">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;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID9ab1c61d617b4137b9d07ae03e085d8b"><enum>(III)</enum><text display-inline="yes-display-inline">1 or more individuals has personally
guaranteed the loan;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID905dc35c2ed94f5a95c43a65abbc8e08"><enum>(IV)</enum><text display-inline="yes-display-inline">each such business has clear and singular
title to the collateral for the loan; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDaca1809e9a27441c890ffa905e7f7cbc"><enum>(V)</enum><text display-inline="yes-display-inline">each such business has sufficient cash flow
from its operations to meet its obligations on the loan and its normal and
reasonable operating expenses.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDe84415bc1fb04966822840e319dcd37e"><enum>(ii)</enum><header>Limitation on
volume</header><text display-inline="yes-display-inline">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.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDe561aa45cd9645ad90df77c1fd3078e0"><enum>(iii)</enum><header>Defined
term</header><text display-inline="yes-display-inline">For purposes of this
subparagraph, the term <term>small, nonprofit child care business</term> means
an establishment that—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID832801212ff249ae8665c9715e8642f8"><enum>(I)</enum><text display-inline="yes-display-inline">is organized in accordance with section
501(c)(3) of the Internal Revenue Code of 1986;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID692df133e96a481a9f29e867d534a50a"><enum>(II)</enum><text display-inline="yes-display-inline">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;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID85ed4e5475fc49a686f09971741355d6"><enum>(III)</enum><text display-inline="yes-display-inline">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</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID9f4acdb933e4442eb7bbe82183bdd506"><enum>(IV)</enum><text display-inline="yes-display-inline">is licensed as a child care provider by the
State, insular area, or the District of Columbia, in which it is
located.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID63cf29145030427d80941074b63bb5ea"><enum>(iv)</enum><header>Sunset
provision</header><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDafd65794cc2746d09c2a461757318ef8"><enum>(b)</enum><header>Reports</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID2d1c6ea6e8ea433491555c1a5d801637"><enum>(1)</enum><header>Small business
administration</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID9d60577f850747b7af417f71712f601f"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<clause commented="no" display-inline="no-display-inline" id="IDcc23bef4e4a64db09a3f45d27b10a199"><enum>(i)</enum><text display-inline="yes-display-inline">the Committee on Small Business and
Entrepreneurship of the Senate; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID22220fa6e35a46c193273a08b94052b7"><enum>(ii)</enum><text display-inline="yes-display-inline">the Committee on Small Business of the
House of Representatives.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID41f69947f48b4be3ad82d43dfce6ea4d"><enum>(B)</enum><header>Contents</header><text display-inline="yes-display-inline">Each report under subparagraph (A) shall
contain—</text>
<clause commented="no" display-inline="no-display-inline" id="IDc8e459b66ce54f56a343c727c46040f0"><enum>(i)</enum><text display-inline="yes-display-inline">the date on which the program is
implemented;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDb57b7b1c0cfe4e5082427dfc1ff6eba1"><enum>(ii)</enum><text display-inline="yes-display-inline">the date on which the rules are issued
under subsection (c); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID0c8b7960936547918ee1a12de95457a9"><enum>(iii)</enum><text display-inline="yes-display-inline">the number and dollar amount of loans under
the program applied for, approved, and disbursed during the previous 6
months—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID08350ef2a7cc4134ae646ea7eba3e208"><enum>(I)</enum><text display-inline="yes-display-inline">with respect to nonprofit child care
businesses; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID735d3635f98b4d07adb6c454b66dd36b"><enum>(II)</enum><text display-inline="yes-display-inline">with respect to for-profit child care
businesses.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe0c4640e3fef4244b84e83812b178d7b"><enum>(2)</enum><header>Government
accountability office</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID4e05b98d102a4ee39ca056c3bcfc8604"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<clause commented="no" display-inline="no-display-inline" id="IDe386765cda26420784ad19a8c4f53048"><enum>(i)</enum><text display-inline="yes-display-inline">the Committee on Small Business and
Entrepreneurship of the Senate; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDd83146fe4b22468da517307e04720e32"><enum>(ii)</enum><text display-inline="yes-display-inline">the Committee on Small Business of the
House of Representatives.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDdabff29dda734551a6b86cb64e0278bd"><enum>(B)</enum><header>Contents</header><text display-inline="yes-display-inline">The report under subparagraph (A) shall
contain information gathered during the first 2 years of the loan program,
including—</text>
<clause commented="no" display-inline="no-display-inline" id="ID4d707059bcc3417fb0c230887b4288e0"><enum>(i)</enum><text display-inline="yes-display-inline">an evaluation of the timeliness of the
implementation of the loan program;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID8640ad0a987d4281b6466c01a729b6a3"><enum>(ii)</enum><text display-inline="yes-display-inline">a description of the effectiveness and ease
with which certified development companies, lenders, and small business
concerns have participated in the loan program;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID29618a19d0974adaa2c98e124b7d7991"><enum>(iii)</enum><text display-inline="yes-display-inline">a description and assessment of how the
loan program was marketed;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID3c6c3963c96244fea2d92b695c243612"><enum>(iv)</enum><text display-inline="yes-display-inline">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—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID427cfe4de8024d5db5f489b685248f13"><enum>(I)</enum><text display-inline="yes-display-inline">applied for a loan under the program (and
whether it was a new or expanding child care provider);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID7b9d28654e124360b9814b287425a931"><enum>(II)</enum><text display-inline="yes-display-inline">were approved for a loan under the program;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID73297f1c5a9a43649e2c5d9ce3b48e61"><enum>(III)</enum><text display-inline="yes-display-inline">received a loan disbursement under the
program (and whether they are a new or expanding child care provider);
and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDbd77542d8aa741f593788d62e22acbad"><enum>(v)</enum><text display-inline="yes-display-inline">with respect to businesses described under
clause (iv)(III)—</text>
<subclause commented="no" display-inline="no-display-inline" id="IDd60b36b0647941df8fbba50d2dfee19d"><enum>(I)</enum><text display-inline="yes-display-inline">the number of such businesses in each
State, insular area, and the District of Columbia, as of the year of enactment
of this Act;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID5e6446f9bf3b4fcb89367c186a5ac943"><enum>(II)</enum><text display-inline="yes-display-inline">the total amount loaned to such businesses
under the program;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID5624892836eb4b3f8b465c3a5cfca239"><enum>(III)</enum><text display-inline="yes-display-inline">the total number of loans to such
businesses under the program;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDc31ea3bcc0fd454e860cbcf7f8c7663a"><enum>(IV)</enum><text display-inline="yes-display-inline">the average loan amount and term;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID8c3211388dab40819f0853ac28d25b8c"><enum>(V)</enum><text display-inline="yes-display-inline">the currency rate, delinquencies, defaults,
and losses of the loans;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID28f3daa2c3ef46fcb2c97ed757d37854"><enum>(VI)</enum><text display-inline="yes-display-inline">the number and percent of children served
who receive subsidized assistance; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDfd7b5a29ef99467e9ab00bb9471c4ee1"><enum>(VII)</enum><text display-inline="yes-display-inline">the number and percent of children served
who are low income.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8c09a6f74c534876b0490bba29d60f8e"><enum>(C)</enum><header>Access to
information</header>
<clause commented="no" display-inline="no-display-inline" id="IDc3c258ffadad490f8e93d437b54ba5e5"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID5de4bc0f2ae34c7d9b9a9c2862c33fc5"><enum>(ii)</enum><header>Provision of
information to Government Accountability Office</header><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3b2d64014d8c4a5a9da55fa2d5c82a92"><enum>(c)</enum><header>Rulemaking
authority</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="id0ED687FB3E12468A81C7BA91ED6C446D"><enum>1906.</enum><header>Study on the
impact of the low documentation loan program</header>
<subsection id="id8F568C65D68F4715AA6DD5574D77EF03"><enum>(a)</enum><header>Definition</header><text>In
this section, the term <term>rural area</term> has the same meaning as in
section 7(m) of the Small Business Act (15 U.S.C. 636(m)).</text>
</subsection><subsection id="idF57E123A46BD4FAE9853A197EEBE5A58"><enum>(b)</enum><header>Study</header><text>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—</text>
<paragraph id="IDc4234b9f44b548519a1c41d14089e194"><enum>(1)</enum><text>the effectiveness
of the low documentation loan program in rural areas;</text>
</paragraph><paragraph id="ID8a944c8ee1b3494b9eda9e602677d26c"><enum>(2)</enum><text>the effect that
the elimination of the low documentation loan program would have on lending in
rural areas; and</text>
</paragraph><paragraph id="IDede9ffa888ca42f3929181d744e4ec29"><enum>(3)</enum><text>the overall
accessibility and effectiveness of lending in rural areas.</text>
</paragraph></subsection><subsection id="IDc089536b1c5a45d29a169eb3cf54b413"><enum>(c)</enum><header>Report to
Congress</header><text>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—</text>
<paragraph id="ID5e28bca985664adb9d585b34e4df196c"><enum>(1)</enum><text>the results of
the study conducted under subsection (b); and</text>
</paragraph><paragraph id="IDcf18eb9b85fa44cd8e5f38bc9eb696d1"><enum>(2)</enum><text>recommendations,
if any, to improve the accessibility and effectiveness of lending in rural
areas.</text>
</paragraph></subsection></section><section id="idF5D943CAB7154C53A80B882C982CB39E"><enum>1907.</enum><header>Enforcement
Ombudsman</header><text display-inline="no-display-inline">Section 30(b)(2) of
the Small Business Act (15 U.S.C. 657(b)(2)) is amended—</text>
<paragraph id="id3054BA0232184FCD8740FF8BA83D1B81"><enum>(1)</enum><text>by redesignating
subparagraphs (C) through (E) as subparagraphs (D) through (F),
respectively;</text>
</paragraph><paragraph id="idACCA9B84A76E493292101F1C47256C85"><enum>(2)</enum><text>by inserting
after subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="id15C026B4182F4971BB7C040C7C86056E" style="OLC">
<subparagraph id="IDdd1ac893e63f488a83cd7bf731b96a35"><enum>(C)</enum><text>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;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idF7F68031FBFE44B0A179DEE9EE7EA98A"><enum>(3)</enum><text>in subparagraph
(F), as redesignated by this section, by striking <quote>subparagraph
(C)</quote> and inserting <quote>subparagraph (D)</quote>.</text>
</paragraph></section><section id="id0EC1A3CFE00D43DA9F05DD861D7718DE"><enum>1908.</enum><header>Minority
entrepreneurship and innovation pilot program</header>
<subsection commented="no" display-inline="no-display-inline" id="idFB18F66AF7AC40FF88551D5A9B00C5BA"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idADB758EF902E4B778DB7818A270F16E1"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>Hispanic serving
institution</term> has the meaning given the term in section 502 of the Higher
Education Act of 1965 (20 U.S.C. 1101a);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id96984503D99A4CD1A4338F3CECA74DEC"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>historically Black college
and university</term> has the meaning given the term <quote>part B
institution</quote> in section 322 of the Higher Education Act of 1965 (20
U.S.C. 1061);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA9415609D1E74AF4AC4D0DB4E877EAD9"><enum>(3)</enum><text display-inline="yes-display-inline">the term <term>small business development
center</term> has the same meaning as in section 21 of the Small Business Act
(15 U.S.C. 648); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id710E9CEA8639418893E77846EBC8B77D"><enum>(4)</enum><text display-inline="yes-display-inline">the term <term>Tribal College</term> has
the meaning given the term <quote>tribally controlled college or
university</quote> in section 2 of the Tribally Controlled College or
University Assistance Act of 1978 (25 U.S.C. 1801).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF98FBF77543441429417ABCC57039E96"><enum>(b)</enum><header>Minority
entrepreneurship and innovation grants</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDd8507a108b23486ca2bcffc2177fa1ca"><enum>(1)</enum><header>In
General</header><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDd550947c82044641acd1d4ca94b5cc3f"><enum>(A)</enum><text display-inline="yes-display-inline">to assist in establishing an
entrepreneurship curriculum for undergraduate or graduate studies; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf317194c681f488dbb2026cfbc448f2e"><enum>(B)</enum><text display-inline="yes-display-inline">for placement of small business development
centers on the physical campus of the institution.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID57de906c12f447729ae415feae65b584"><enum>(2)</enum><header>Curriculum
Requirement</header><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID2796577f9ebc42c4b084f53089ef54af"><enum>(A)</enum><text display-inline="yes-display-inline">business management and marketing,
financial management and accounting, market analysis and competitive analysis,
innovation and strategic planning; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3316c231aea84f41a8e4c1e1990311a5"><enum>(B)</enum><text display-inline="yes-display-inline">additional entrepreneurial skill sets
specific to the needs of the student population and the surrounding community,
as determined by the institution.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd1ff7cb013a74ad3bcba054f95df554c"><enum>(3)</enum><header>Small business
development center requirement</header><text display-inline="yes-display-inline">Each institution receiving a grant under
this subsection shall open a small business development center that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID93707d6a6d1d473cb1fbe07349fd3e96"><enum>(A)</enum><text display-inline="yes-display-inline">performs studies, research, and counseling
concerning the management, financing, and operation of small business
concerns;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDcbc960ec5ad243a08f3b33d1db9e228d"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2df713a63a4b4b8f8bed5d635981c59c"><enum>(C)</enum><text display-inline="yes-display-inline">offers referral services for entrepreneurs
and small business concerns to business development, financing, and legal
experts; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID696408c0e75d4c8fa5e8832c498d3ed9"><enum>(D)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID33d8c3ffe4e04b96a257b60a1f8f1f2b"><enum>(4)</enum><header>Grant
limitations</header><text display-inline="yes-display-inline">A grant under
this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID25dfd0f0fb6b496685ee9aa3944b8a40"><enum>(A)</enum><text display-inline="yes-display-inline">may not exceed $500,000 for any fiscal year
for any 1 institution of higher education;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID43092d72063f464fb91458a024481c8e"><enum>(B)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDa86b4c05aea84cda8c47f63241159f93"><enum>(C)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID918743e2996247e6a4f79339b491e119"><enum>(5)</enum><header>Exception from
Small Business Act requirement</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1898494eb5594dcf8280f3ca69bf2a2a"><enum>(6)</enum><header>Report</header><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDc1111d6d6ded4bdb8691a64582cac7d0"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2bc6f7ea5e0c463ea403e686d50db7ba"><enum>(B)</enum><text display-inline="yes-display-inline">the number of small business concerns
assisted by each small business development center established with a grant
under this subsection; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf562aa4fd0824d8db0e4c77527db0731"><enum>(C)</enum><text display-inline="yes-display-inline">data regarding the economic impact of the
small business development center counseling provided under a grant under this
subsection.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID805151531ae44b0aa22ce6836ac59a64"><enum>(c)</enum><header>Authorization
of Appropriations</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID37167f8453704e9d8b35c656b73210e4"><enum>(d)</enum><header>Limitation on
use of Other Funds</header><text display-inline="yes-display-inline">The
Administrator shall carry out this section only with amounts appropriated in
advance specifically to carry out this section.</text>
</subsection></section><section id="idB16B69A86A114CD49FB96BE503A4E279"><enum>1909.</enum><header>Office of
Native American Affairs pilot program</header>
<subsection id="idDDE19D755B4A4FCF9A8987E6712B2E82"><enum>(a)</enum><header>Definition</header><text>In
this section, the term <term>Indian tribe</term> 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.</text>
</subsection><subsection id="idD6FA5249A1F54303A6BDE69697DD0F53"><enum>(b)</enum><header>Authorization</header><text>The
Office of Native American Affairs of the Administration may conduct a pilot
program—</text>
<paragraph id="id3558A32B2E954389B448F14D771CB691"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="idB8C6BB35D8994B0BB40EBCED10794DE3"><enum>(2)</enum><text>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—</text>
<subparagraph id="idE6C35733B50A42E59DA8E34CDC9EF757"><enum>(A)</enum><text>the
Administration;</text>
</subparagraph><subparagraph id="id103148C6D052497E86E4453175C8F56B"><enum>(B)</enum><text>the Department of
Energy;</text>
</subparagraph><subparagraph id="idECDB43B396E44D40BE957B0F5FBDFE88"><enum>(C)</enum><text>the Environmental
Protection Agency;</text>
</subparagraph><subparagraph id="id901F7C36EC3A428EA5548B2C3D78DCAB"><enum>(D)</enum><text>the Department of
Commerce;</text>
</subparagraph><subparagraph id="idB0D65FA122084609982EB7E03E0192CC"><enum>(E)</enum><text>the Federal
Communications Commission;</text>
</subparagraph><subparagraph id="id0A34A438FD2F4E7BB40719D763652C57"><enum>(F)</enum><text>the Department of
Justice;</text>
</subparagraph><subparagraph id="idC0A0206ABA4449FD842CD17612268A90"><enum>(G)</enum><text>the Department of
Labor;</text>
</subparagraph><subparagraph id="idE78E4ED76AB045F08518E2FF057320A4"><enum>(H)</enum><text>the Office of
National Drug Control Policy; and</text>
</subparagraph><subparagraph id="idE4BB73AE4C334077BEF9CE9C47F45830"><enum>(I)</enum><text>the Department of
Agriculture.</text>
</subparagraph></paragraph></subsection><subsection id="ID18718918e4c34e8e94abfe146c447a59"><enum>(c)</enum><header>Termination of
program</header><text>The authority to conduct a pilot program under this
section shall terminate on September 30, 2008.</text>
</subsection><subsection id="id890D7790697C4569B0747A804D2A11BF"><enum>(d)</enum><header>Report</header><text>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).</text>
</subsection></section><section id="id6330DC4ABB894B3880453C966EF38E02"><enum>1910.</enum><header>Institutions
of higher education</header>
<subsection id="id4551F5CA96A7445F9AE76753E5F30736"><enum>(a)</enum><header>In
general</header><text>Section 21(a)(1) of the Small Business Act (15 U.S.C.
648(a)(1)) is amended by striking <quote>: <italic>Provided,
</italic>That</quote> and all that follows through <quote>on such date.</quote>
and inserting the following: <quote>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.</quote>.</text>
</subsection><subsection id="idED0D7360C25E4109B90E8AA4591FF3F2"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall become effective
on December 31, 2006.</text>
</subsection></section>
August 2, 2006
Read twice and placed on the calendar